Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 1 of 206 **ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 87 and 1068**  **[EPA -**  **HQ -**  **OAR -**  **2010 -**  **0687; FRL -**  **XXXX -**  **X] RIN 2060**  **- AO70**  **Control of Air Pollution From Aircraft and Aircraft Engines; Emission Standards and Test**  **Procedures AGENCY**  : Environmental Protection Agency (EPA). **ACTION** : Final rule. **SUMMARY** : EPA is adopting several new aircraft engine emission standards for oxides of nitrogen (NOx) , compliance flex ibilities, and other regulatory requirements for aircraft turbofan or turbojet engines with rated thrusts greater than 26.7 kilonewtons (kN). We also are adopting certain other requirements for gas turbine engines that are subject to exhaust emission stan dards as follows . First, we are clarify ing when the emission characteristics of a new turbofan or turbojet engine model have become different enough from its existing parent engine design that it must conform to the most current emission standards. Secon d, we are establishing a new reporting requirement for manufacturers of gas turbine engines that are subject to an y exhaust emission standard to provide us with timely and consistent emission - related information. Third,Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 2 of 206 and finally , we are establishing am endments to aircraft engine test and emissions measurement procedures. EPA actively participated in the United Nation’s International Civil Aviation Organization (I CAO) proceedings in which most of these requirements were first developed. These regulator y requirements have largely been adopted or are actively under consideration by its member states. By

adopting such similar standards, therefore, the United States maintains consistency

with these international efforts. EXECUTIVE SUMMARY: A. Purpose of the Regulatory Action The primary

purpose of this rule is to adopt new oxides of nitrogen (NOx) emission standards for aircraft engines with rated thrusts greater than 26.7 kN thrust. These are mostly commercial passenger and freighter aircraft in common use at airports across the U.S. It does not include engines used on military aircraft. NOx is strongl y correlated with NO 2 , for which EPA has established National Ambient Air Quality Standards (NAAQS) , i.e., a criteria pollutant, and it is an important p recursor gas in the formation of tropospheric ozone and secondary particulate matter which are common air pollutants in urban areas where airports are located. Currently , approximately 1 5 4 million people live in areas designated nonattainment for one or more of the current NAAQS. This rule will allow us to enforce in the U.S. the emission standards adopted b y IC AO, and will be useful to states in attaining or maintaining the ozone, PM 2.5 , and NO 2 NAAQS standards. This rule also contains several provisio ns to facilitate theDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 3 of 206 implementation of EPA’s aircraft engine emission regulations and related requirements. I t is also important to note that adoption of the provisions in this rule meets U.S. treat y obligations under the Chicago Convention of 1944 by ali gning our regulations with those in the International Civil Aviation Organization Annex 16 , Volume II (adopted in 2010) that the U.S. helped to develop and support as part of the international process. This rule is being implemented under the authority

pr ovided in section 231 of the Clean Air Act (42 USC 7571) , which directs the Administrator of EPA to, from time to time, propose aircraft engine emission standards applicable to the emission of an y air pollutant from classes of aircraft engines which in her judgment causes or contributes to air pollution that may reasonabl y be anticipated to endanger public health or welfare . B. Summary

of Major Provisions of the Regulatory Action The rule contains six major provisions. The first two provisions are new NOx emissio n standards for newl y certified - engine models. The first standards, Tier 6, take effect when this rule becomes effective. These represent approximately a 12 percent reduction from current Tier 4 levels. They

were actually

adopted b y ICAO in 20 0 5 with an implementation date in 2008 . The second standards , Tier 8, were adopted by I CAO in 2008 and take effect in 2014. These represent approximately

a 15 percent reduction from Tier 6 levels. As noted above, b oth tiers of emission standards are n eeded to address local air quality concerns (NAAQS) and to meet U.S. treat y obligations under the Chicago Convention. The third major provision is a production cut -Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 4 of 206 off for newl y - manufactured engines (as opposed to newly - certified engines ) which basically requires that after December 31, 20 12 all newl y - manufactured engines must meet at least Tier 6 NOx emission standards. This is also needed to meet our obligations under the Chicago Convention. The production cut - off is ne eded to ensure that the emission reductions envisioned by the emission standards are achieved on new production engines. The fourth major provision is related to potential exemptions or exceptions to the production cut - off requirement. These include revis ed provisions allowing manufacturers to request that FAA in consultation with EPA grant exemptions from the production cut - off for a designated number of engines within a prescribed time frame. These also include a low - volume, time - limited exception provi sion that will exclude several engines from the production cutoff. Both of these provisions help to assure an orderl y transition to the new standards for engines needing more time to comply or for a few engines at the end of their production life. Final ly , the rule includes a set of provisions which may be considered as minor if viewed separatel y, but collectively are important in upgrading EPA’s regulations b y incorporating some related agreements from our ICAO process and clarify ing and improving exist ing provisions. Examples of this include special provisions for spare engines, provisions related to derivative engine models, test procedure specifications and reporting requirements. These changes are important for an effective implementation of the ne w requirements , and in many cases are also needed to meet our obligations under the Chicago Convention . C. Costs and BenefitsDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 5 of 206 This is not an economically significant regulatory

action. Aircraft engines are international commodities used on aircraft manufa ctured and sold around the world. When developing new engine models manufacturers not only consider current emission requirements but also try

to anticipate the stringency of future standards and respond appropriatel y. Engine manufacturers participated in the deliberations leading up to ICAO decisions on the aircraft engine NOx emission standards and after the IC AO decisions they incorporated engine technology

changes as needed to meet the new ICAO requirements. This helps to ensure the world wide accepta

bilit y of their products. Essentially all of these changes are now complete. Thus, while there is some cost to a manufacturer for responding to the new ICAO provisions, there is no significant further direct cost to the manufacturers created b y EPA’s adop ting the requirements into U.S regulations. In fact, it is likely that our adopting these requirements facilitates the acceptance of U.S. ty pe certificates by

aircraft manufacturers and airlines around the world**DATES:** These final rules are effective on [insert date 3 0 day s after publication in the Federal Register.] The incorporation b y reference of certain publications listed in this regulation is approved b y the Director of the Federal Register as of [insert date 3 0 day s after publicatio n in the Federal Register.] **ADDRESSES:** EPA has established a docket for this action under Docket ID No. EPA HQ - OAR - 2010 - 0687 **.** All documents in the docket are listed on the http://www.regulations.gov Web site. Although listed in the index, some information is not publicly available, e.g., confidential business information or other information whose disclosure is restricted by statute.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 6 of 206 Certain other material, such as cop yri ghted material, is not plac ed on the Internet and will be publicly available only

in hard copy

form. Publicly

available docket materials are available electronically

through http://www.regulations.gov or in hard cop y at the EPA Docket Center , 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 holiday s. The telephone number for the Public Reading Room is (202) 566 - 1744, and the telephone number for the Air Docket is 202 - 566 - 1742 . **FOR FURTHER INFORMATION CONTACT** : Richard Wilcox , Office of Transportation and Air Quality , Office of Air and Radiation, Environmental Protection Agency , 2000 Traverwood Drive, Ann Arbor, MI 481 05 ; telephone number: (734) 214 - 4 390 ; fax number: (734) 214 - 4816; email address: wilcox.rich@epa.gov. SUPPL EMENTARY INFORMATION: Does This Action Apply

to Me? Entities potentially

regulated by

this action are those that manufacture and sell aircraft engines and aircraft in the United States. Regulated categories include: Category NAI CS a Codes SI C b Codes Examples of potentially affected entities Industry .......... 336412 3724 Manufacturers of new aircraft engines Industry .......... 336411 3721 Manufacturers of new aircraft

a North American Industry Classification System (NAICS) b Standard Industrial Classification (SIC) system codeDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 7 of 206 This table lists the ty

pes of entities that EPA is now aware could potentially be regulated by this action. Other ty

pes of entities not listed in the table could also be regulated. To determine whether your activities are regulated by this action, you should carefully examine the applicability

criteria in 40 CFR 87. 1 (part 87). If y ou have any questions regarding the applicability

of this action to a particular entity , consult the person listed in the preceding **FO R**  **FURTHER INFORMATION CONTACT** section. Table of Contents I. Overview and Background A. Contents of the Final Rule B . EPA’s Responsibilities U nder the Clean Air Act C . Interaction with the International Community D. Brief History

of EPA’s Regulation of Aircraft Engine Emissions E . Brief History

of ICAO Regulation of Aircraft Engine Emissions II. Why is EPA Taking this Action? A. I nventory

Contribution B. Health, Environmental and Air Quality I mpactsDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 8 of 206 1. Background on Ozone, PM and NOx a. What is Ozone? b. What is Particulate Matter? c. What is NOx? 2. Health Effects Associated with Exposure to Ozone, PM and NOx a. What are the Health Effects of Ozone? b. What are the Health Effects of PM? c. What are the Health Effects of NOx? 3. Environmental Effects Associated with Exposure to Ozon e, PM and NOx a. Deposition of Nitrogen b. Visibility

Effects c. Plant and Ecos ys tem Effects of Ozone 4 . Impacts on Ambient Air QualityDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 9 of 206 III. Details of the Final Rule A. NOx Standards for Newly - Certified Engines 1. Tier 6 NOx Standards for Newl y - Certified Engines a. Numerical Emission Limits for Higher Thrust Engines b. Numerical Emission Limits for Lower Thrust Engines 2 . Tier 8 NOx Standards for Newl y - Certified Engines

a. Numerical Emission Limits for Higher Thrus t Engines b. Numerical Emission Limits for Lower Thrust Engines B . Application of NOx Standards for Newl y - Manufactured Engines 1. Phase - In of the Tier 6 NOx Standards for Newly Manufactured Engines 2. Carry over of Previously Generated E mission Data 3. Exemptions and Exceptions from the Tier 6 Production Cutoff

a . New Provisions for Spare Engines b . New Provisions for Engines Installed in New AircraftDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 10 of 206 i. Time - Frame and Scope ii. Production L imit iii. Exemption Requests iv. Coordination of Exemption Requests

v. Lo w - V olume , T ime - L imited T ransitional E x c eption program c. Voluntary

Emission Offsets 4 . Potential Phase - Inof New Tier 8 NOx Standards for Newl y Manufactured Engines C. Application of Standards for Derivative Engines for Emission Certification Purposes D. Annual Reporting Requirement E. Standards for Supersonic Aircraft Turbine Engines F . Amendments to Test and Measurement Procedures G. Possible Future Revisi ons to Emission Standards for New Technology Turbine Engines and Supersonic Aircraft Turbine EnginesDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 11 of 206 IV . Description of Other Revisions to the Regulatory Text A. Applicability

I ssues 1. Military

Engines 2. Noncommercial Engines B. Non - S ubstantive Revisions C. Clarify ing Language for Regulatory Text V. Technical Feasibility , Costs , and Emission Benefits V I. Consultation with FAA V I I. Public Participation VIII. Statutory

Provisions and Legal Authorit y IX . Statutory and Executive Orders Review A. Executive Order 12866: Regulatory Planning and Review, and Executive Order 13563: Improving Regulation and Regulatory Review B. Paperwork Reduction Act C. Regulatory

Flexibility

Analy sisDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 12 of 206 D. Unfunded Mandates Re form Act E. Executive Order 13132: Federalism F. Executive Order 13175: Consultation and Coordination with Indian Tribal Governments G. Executive Order 13045: Protection of Children from Environmental Health & Safet y Risks H. Executive Order 13211: Actions that Significantly Affect Energy Supply , Distribution, or Use I. National Technology

Transfer Advancement Act J. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Population s and L ow Income Populations K. Congressional Review Act I. Overview and Background This section summarizes the major provisions of the final rule for aircraft gas turbine engines . It also contains background on the EPA’s standard setting authority and responsibilitiesDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 13 of 206 under the Clean Air Act, the connection between our emission standards and those of the international community , and a brief regulatory history for this source of emissions. A. Contents of the Final Rule We are adopting several new emission standards and other regulatory requirements for aircraft turbofan and turbojet engines 1 with rated thrusts greater than 26.7 kilonewtons (kN). First, we are establishing two new tiers of more stringent emission standards for oxides of nitrogen (NO x ) . 2 T he standards appl y differentl y to two classes of these engines, i.e., “newl y certified engines” and “newly - manufactured engines.” The newl y - certified engine standards apply to aircraft engines that have received a new ty pe certificate and have never been manufactured prior to the effective date o f the new emission standards. Requirements for n ewly manufactured engines apply to aircraft engines that were previously certified and manufactured in compliance with preexisting standards, and they require manufa cturers to either compl y with the newer standards b y a specified future date or cease production of the affected engine models .

1 Turbofan and turbojet engines will be collectively referred to as turbofan engines hereafter for convenience.

2 As previously mentioned, these new NOx standards are identical to requirements established by ICAO. The str ingency of

any ne w emission standard is selected based on an assessment of the technical feasibility, cost, and environmental benefit of potential requirements. The NOx standards w e are promulgating today will not affect fuel economy or have any practical effect on CO 2 emissions. (See International Civil Aviation Organization (ICAO), “Committee on Aviation Environmental Protection (CAEP), Eighth Meeting, Montreal, 1 to 12 February 2010, CAEP/8 NOx Stringency Cost

– Benefit Analysis Demonstration Using APMT - I MPACTS,” CAEP/8 - IP/30, December 1, 2010. A c op y of this document is in docket number EPA - HQ - OAR - 2010 - 0687.)Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 14 of 206 Newl y - manufactured engine standards are also sometimes referred to as “production cutoff ” standards. Second, we are adopting c ertain time - limited flexibilities, i.e., the potential for exemptions or exceptions as defined in the regulations for newl y - manufactured engines that may not be able to compl y with the first tier of the NOx standards because of specific technical or econom ic reasons. 3 We are also making a number of additional changes that would apply to a wider range of aircraft gas turbine engines 4 than those that would be subject to the new emission standards. 5 First, we are defining the meaning of a derivative engine for emissions certification purposes. The intent of this definition is to distinguish when the emission characteristics of a new turbofan engine model vary

sufficiently

from its existing parent engine design, and must show compliance with the emission standard for a newly - certificated engine. Second, we are establishing new reporting requirements for manufacturers that produce gas turbine engines subject to any exhaust emission standard. This will provide us with timely and consistent emission data and o ther information that is necessary to conduct emission inventory and air quality anal ys es and develop appropriate public policy for the aviation sector. Specificall y, reports are required for turbofan

3 These exemption or exception provisions are conceptually the same as the ICAO exemption provisions and provide the same regulatory flexibilities to all engine manufacturers.

4 The term gas turbine engine includes turbofan, turbojet, and turboprop engines designs. The rated output for turbofan and turbojet engines is normally expressed as kilonewtons (kN) thrust. The rated output for turboprop engines is normally expressed as shaft horsepow er (hp) or shaft kilowatt (kW).

5 This includes turbofan and turbojet engines less than 26.7 kN thrust and all turboprop engines that are subject to any emission standard, e.g., smoke.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 15 of 206 engines with rated thrusts greater than 26.7 kN, which are subject to gaseous emission and smoke standards, in addition to turbofans less than or equal to 26.7 kN, and all turboprop engines, that are only

subject to smoke standards. 6 Third, we are adopting minor amendments to the test and measurement procedures for aircraft engines . Finally , as described in section IV, we are making minor amendments to regulator provisions addressing definitions, acron ym s and abbreviations, general applicability and requirements, exemptions, and incorporation b y reference. Most of these new regulatory requirements have already been adopted by the United Nation ’ s International Civil Aviation Organization (I CAO) . The requirements contained in this final rule bring the United States into al ignment with the international stand ards and recommended practices . B. EPA’s Authority and Responsibilities under the Clean Air Act Section 231 (a)(2)(A) of the Clean Air Act (CAA) directs the Administrator of EPA to , from time to time, propose aircraft engine emission standards applicable to t he emission of any air pollutant from classes of aircraft engines which in her judgment causes or contributes to air pollution that may

reasonably

be anticipated to endanger public health or welfare. (See 42 U.S.C . § 7571(a)(2)(A).) Section 231(a)(2)(B) directs EPA to consult with the Administrator of

6 As discussed further in section III.D., the voluntary emission data report to ICAO does not include t urbofans at or below

26.7 kN or turboprops subject to any emission standard.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 16 of 206 the Federal Aviation Administration (FAA) on such standards, and prohibits EPA from changing aircraft emission standards if such a change would significantl y increase noise and adversel y affect safety . 42 U.S.C. § 7571(a)( 2)(B ) (i) - (ii) . Section 231(a)(3) provides that after we propose standards, the Administrator shall issue such standards “with such modifications as he deems appropriat e.” 42 U.S.C. § 7571(a)(3). The U.S. Court of App eals for the D.C. Circuit has held that this provision confers an unusually broad degree of discretion on EPA to adopt aircraft engine emission standards as the Agency determines are reasonable. NACAA v. EPA , 489 F.3d 1221 (D.C. Cir. 2007). In addition, under CAA section 231(b) EPA is required to ensure, in consultation with the U.S. Department of Transportation (DOT), that the effective date of an y standard provide s the necessary time to permit the development and application of the requisite technology , gi ving appropriate consideration to the cost of compl iance. 42 U.S.C . § 7571(b). Section 232 then directs the FAA to prescribe regulations to ensure compliance with EPA’s standards. 42 U.S.C. § 7572. Finally , section 233 of the CAA vests the authorit y to promulgate e mission standards for aircraft or aircraft engines only in EPA. States are preempted from adopting or enforcing an y standard respecting aircraft engine emissions unless such standard is identical to EPA’s standards. 42 U.S.C. § 7573. Sec tion VI of today 's final rule further discusses our coordinationDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 17 of 206 with DOT through the FA A . 7 It also describes DOT’s responsibility under the CAA to enforce the aircraft emission standards established b y EP A. C. Interaction w ith the International Community We began regulating the air pollution emissions from aircraft engines in 1973 . Since that time, we have worked with the FAA and later with the In ternational Civil Aviation Organization (I CAO) to develop international standards and other recommended practi ces pertaining to aircr aft engine emissions. IC AO was established in 1944 by the United Nations (by

the Convention on International Civil Aviation, the “Chicago Convention”) “... in order that international civil aviation may be developed in a safe and or derl y manner and that international air transport services may be established on the basis of equality of opportunity

and operated soundly and economically .” 8 IC AO’s responsibilities include developing aircraft technical and operating standards, recommend ing practices, and generall y fostering the growth of international civil aviation. The United States is currentl y one of 19 1 participating member States of ICAO. 9 , 10

7 The functions of the Secretary of Transportation under part B of title II of the Clean Air Act (§§ 231 - 234, 42 U.S.C. 7571 - 7574) have been delegated to the Administrator of the FAA. 49 CFR 1.47(g).

8 ICAO, “Convention on International Civil Aviation,” Ninth Edition, Document 7300/9, 2006. Copies of this document can be obtained from the ICAO website located at www.icao.int .

9 Mem bers of ICAO’s Assembly are generally termed member States or contracting States. These terms are used interchangeably throughout this preamble.

10 There are currently 191 Contracting States according to ICAO w ebsite located at www.icao.int .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 18 of 206 In the interests of global harmonization and international air commerce, the Chicago Convention urges a high degree of uniformit y by its member States. Nonetheless , the Convention also recognizes that member States may adopt their own unique airworthiness standards and that some may adopt standards that are more stringent than those agree d upon by ICAO. The Convention has a number of other features that govern international commerce. First, States that wish to use aircraft in international transportation must adopt emission standards and other recommended practices that are at least as stringent as ICAO ’s standards . States may ban the use of an y aircraft within their airspace that does not meet I CAO standards. 11 Second, States are required to recognize the airworthiness certificates of an y State whose standards are at least as stringen t as ICAO ’s standards , thereby assuring that aircraft of an y member State will be pe rmitted to operate in any other member State. 12 Third, and finall y, t o ensure that international commerce is not unreasonably constraine d , a participating nation which elec ts to adopt more stringent standards is obligated to notify I CAO of the differences between its standards and

11 ICAO, “Convention on Intern ational Civil Aviation,” Article 87, Ninth Edition, Document 7300/9, 2006. Copies of this document can be obtained from the ICAO website located at www.icao.int/icaonet/arch/doc/7300/7300_9ed.pdf . 12 ICAO, “Convention on International Civil Aviation,” Art icle 33, Ninth Edition, Document 7300/9, 2006. Copies of this document can be obtained from the ICAO website located at www.icao.int/icaonet/arch/doc/7300/7300_9ed.pdf .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 19 of 206 ICAO standards. 13 However, if a nation sets tighter standards than IC AO, air carriers not based in that nation would only be required to comply with I CAO standards or more stringent standards imposed b y their own nations, if applicable . ICAO ’s Committee on Aviation Environmental Protection (CAEP) undertakes I CAO’s technical work in the environmental field. The C ommittee is responsible for evaluating, researching, and recommending measures to the ICAO Council that address the environmental impact of international civil aviation. CAEP is composed of various task groups, work groups, and other committees whose contributing members include atmospheric, economic, aviation, environmental, and other professionals interested in aviation and environmental protection . At CAEP meetings, the United States is represented by the FAA, which play s an active role at these meetings. 14 EP A has historically been a principal participant in the development of U.S. policy in various IC AO/CAEP working groups and other international venues, assisting and adv ising FAA on aviation emissions, technology , and policy matters. If ICAO adopts a CAEP p roposal

13 ICAO, “Convention on International Civil Aviation,” Articles 38, Ninth Edition, Document 7300/9, 2006. Copies of this document can be obtained from the ICAO website located at www.icao.int/icaonet/arch/doc/7300/7300_9ed.pdf . 14 Pursuant to the President’s memorandum of August 11, 1960 (and related Executive Order No. 10883 from 1960), the Interagency Group on International Aviation (IGIA) w as established to facilitate coordinated recommendations to the Secretary of State on issues pertaining to international aviation. The DOT/FAA is the chair of IGIA, and as such, th e FAA represents the U.S. on environmental matters at CAEP.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 20 of 206 for a new environmental standard, it then becomes part of ICAO standards and recommended practices (Annex 16 to the Chicago Convention). 15 , 16 D. Brief History of EPA’s Regulation of Aircraft Engine Emissions As mentioned above, we initially regulated gaseous exhaust emissions, smoke, and fuel venting from aircraft engines in 1973. 17 Since that time, we have occasionally revised those regulations. Two of these revisions are most pertinent to today ’s final rule . First, in a 1997 rulemaking, we made our emission standards and test procedures more consistent with those of ICAO for turbofan engines used in commercial aviation with rated thrusts greater than 26.7kN. 18 These ICAO requirements are generall y referred to as CAEP/2 standards. (The numbering n omenclature for CAEP requirements is discussed in the next section.) That action included new NO x emission standards for newl y - manufactured commercial turbofan engines (those engines

15 ICAO, “Aircraft Engine Emissions,” International Standards and Recommended Practices, Environmental Protection, Annex 16, Volume II, Second Edition, July 2008 . A c op y of this document is in docket number EPA - HQ - OAR - 2010 - 0687.

16 CAEP develops new

emission standards based on an assessment of the technical feasibility, cost, and environmental benefit of potential requirements.

17 U.S. EPA, **“** Emission Standards and Test Procedures for Aircraft; ” Final Rule, 38 FR 19088 , July 17, 1973 . 18 U.S. EPA, “Control of Air Pollution from Aircraft and Aircraft Engines; Emission Standards and Test Procedures;” Final Rule, 62 FR 25356, May 8, 1997 . While ICAO’s standards w ere not limited to “commercial” airc raft engines, our 1997 standards w ere explicitly limited to commercial engines, as our finding that NOx and CO em issions from aircraft engines cause or contribute to air pollution which may reasonably be anticipated to endanger public health or w elfare was so lim ited, See 62 FR 25358. As explained later in section IV.A.2. of today’s notice, we are expand ing the scope of that finding and of our standards pursuant to section 231(a)(2)(A) of the Clean Air Act to include such emissions from both commercial an d non - commercial aircraft engines based on **the physical and operational similarities between commercial and noncommercial civilian aircraft**  **and** to bring our standards into full alignment with ICAO’s.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 21 of 206 built after the effective date of the regulations that were alread y cert ified to pre - existing standards) 19 and for newl y - certified commercial turbofan engines (those engine models that received their initial ty

pe certificate after the effective date of the regulations). It also included a CO emission standard for newl y - manufactured commercial turbofan engines. Second, in our most recent rulem aking in 2005, we promulgated more stringent NO x emission stand ards for newly - certi fied commercial turbofan engines . 20 That final rule brought the U.S. standards closer to alignment with ICAO CAEP/4 requirements that were effective in 2004 . In ruling on a petition for judicial review of the 2005 rule filed by the National Association of Clean Air Agencies (NACAA), the U.S. Court of Appeals held that EPA’s approach of tracking the ICAO standards was reasonable and permissible under the CAA. NACAA v. EPA , 4 89 F.3d 1221, 1230 - 32 (D.C. Cir. 2007). E. Brief History of ICAO Regulation of Aircraft Engine Emissions The first international standards and recommended practices for aircraft engine emissions was recommended b y C AEP’s predecessor, the Committee on Airc raft Engine Emissions (CAEE), and adopted b y ICAO in 1981 . 21 These standards limited aircraft engine emissions of

19 This does not mean that in 2005 w e promulgat ed requirements for the re - certification or retrofit of existing in - use engines.

20 U.S. EPA, “Control of Air Pollution from Aircraft and Aircraft Engines; Emission Standards and Test Procedures;” Final Rule, 70 FR 2521, November 17, 2005.

21 ICAO, Forew ord of “Aircraft Engine Emissions,” International Standards and Recommended Practices, Environmental Protection, Annex 16, Volume II, Third Edition, July 2008. Copies of this document can be obtained from the ICAO website at www.icao.int .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 22 of 206 HC, CO, and NO x . In 1994, I CAO adopted a CAEP /2 proposal to tighten the original NO x standard b y 20 percent and amend the test procedures. 22 At the next CAEP meeting (CAEP/3) in 1995, the Committee recommended a further tightening of 16 percent and additional test procedure amendments, but in 1997 the I CAO Council rejected this stringency proposal and approved onl y the test procedure amendments . At the CAEP/4 meeting in 1998, the Committee adopted a similar 16 percent NO x reduction proposal, which ICAO approved on 1998. The CAEP/4 standard s applied only to new engine designs certified after December 31, 2003 (i.e., the requirements did not als o apply to previously certified, newl y - manufactured engines unlike the CAEP/2 standards). In 2004, CAEP/6 recommend ed a 12 percent NOx reduction , which I CAO approved in 200 5 . 23 , 24 The CAEP/6 standard s applied to new engine designs ( newly - certified models ) certified after December 31, 2007. At the most recent meeting, CAEP/8 recommended a further tightening of the NOx standards b y 15 percent for newl y - certified engines. 25 , 26 The

22 CAEP conducts its w ork over a period of years. Each w ork cy cle is numbered sequentially and that identifier is used to differentiate the results from one CAEP to another by convention. The first technical meeting on aircraft emission standards was CAEP’ s successor, i.e., CAEE. The first meeting of CAEP, therefore, is referred to as CAEP/2.

23 CAEP/5 did not address new aircraft engine emission standards. 24 ICAO, “Aircraft Engine Emissions,” Annex 16, Volume II, Third Edition, July 2008, Amendment 4 effec tive on July 20, 2008. Copies of this document can be obtained from the ICAO website at www.icao.int .

25 CAEP/7 did not address new aircraft engine emission standards. 26 ICAO, “Committee on Aviation Environmental Protectio n (CAEP), Report of the Eighth Meeting, Montreal, February 1 - 12 , 2010,” CAEP/8 - WP/80. A copy of this document is in docket number EPA - HQ - OAR 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 23 of 206 Committee also recommended that the CAEP/6 standards be applied to newly - manufa ctured engines. ICAO approved these recommendations in 2011. 27 II. Why I s EPA Taking This Action? As mentioned above, section 231(a)(2)(A) of the CAA authorizes the EPA Administrator to “from time to time, issue proposed emission standards applicable to th e emission of any air pollution from any

class or classes of aircraft or aircraft engines which in his judgment causes, or contributes to air pollution which may reasonabl y be anticipated to endanger public health or welfare.” 42 U.S.C. § 7571(a)(2)(A). One of the principal components of aircraft exhaust emissions is NO x , a precursor to the formation of tropospheric ozone and secondary PM . 28 M ost commercial airports are located in urban ized areas 29 and many urbanized areas have ambient pollutant levels above the National Ambient Air Quality

Standards (NAAQS) for ozone and fine particulate matter (PM 2.5 ) (i.e.,

27 27 ICAO, “Aircraft Engine Emissions,” Annex 16, Volume II, Third Edition, July 2008, Amendment 7 effec tive on July 18, 2011. Copies of this document can be obtained from the ICAO website at www.icao.int .

28 Ground - level ozone, the main ingredient in smog, is formed by complex chemical reactions of volatile organic compounds (VOC) and NO x in the presence of heat and sunlight. Standards that reduce NO x em issions will help address ambient ozone levels. They can also help reduce particulate matter (PM) levels as NO x emissions can also be part of the secondary formation of PM. See Section II.B below .

29 According to Airport Council International

– North America and similar FAA databases, most commercial operations occur at airports that are in or near large cities or urbanized areas. There are about 130 commercial airports in 78 ozone and fine particulat e nonattainment areas (based on the nonattainment areas status of 2008). There are about 325 commercial airports in the U.S.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 24 of 206 they are in nonattainment for ozone and PM 2.5 ) . 30 This section discusses the contribution of aircraft engines used in commercial service with rated thrusts greater than 26.7kN to the national NO x emissions inventory and to NO x emission inventories in selected ozone and PM 2.5 nonattainment areas, the potential effect of NO x emissions in the upper atmosphere on ground level PM 2.5 in additio n to the health and welfare impacts of NO x and PM emissions . A. Inventory

Contribution In contrast to all other mobile sources, whose emissions occur completel y at ground level, the emissions from aircraft and aircraft engines can be divided into two flight regimes. The first regime includes the emissions that are released in the lower lay er of the atmosphere and directly affect local and regional ambient air quality . These emiss ions generall y occur at or below 3,000 feet above ground level , i.e., during the landing and takeoff (LTO) cy cle. The aircraft operations that comprise an LTO cy cle are: engine idle at the terminal gate (and sometimes during ground delay s while holding fo r the active runway); taxiing between the terminal and the runway ; take - off; climb - out; and approach to the airport. The second regime includes emissions that occur above 3,000 feet above ground level, known as non - LTO emissions . Collectively , the emissi ons associated with all ground and flight operations are generall y referred to as full flight emissions.

30 For a current list of nonattainment areas see: http://www.epa.gov/oar/oaqps/greenbk/index.htmlDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 25 of 206 In this section, we will discuss NO X emission inventories for commercial turbine - engine aircraft, both nationally

and for selected ozone and PM 2.5 nonattainment areas (NAAs). These inventories reflect emissions during the land ing and t akeoff cy cle onl y. The most recent comprehensive anal ys is of historical and current LTO emissions from aircraft engines comes from a stud y undertaken for us b y Easter n Research Group (ERG). 31 The study anal yz ed the national emissions of commercial aircraft operations in the United States, and showed that in the most recent ye ar studied (2008), such aircraft LTO operations contributed about 97 thousand tons to the nati onal NO X inventory . 32 A summary of the national inventory of L TO NO X emissions is shown in Table 1 . When these nationwide LTO emissions are compared to the total U.S. mobile source inventory for 2009, they

account for less than one percent of the total. However, such a comparison may

be a bit misleading, as it onl y includes those aircraft emissions that occur below 3,000 feet altitude, while comparing them to the entirety of other mobile source emissions. In the U.S., L TO emissions account for only about ten percent of full flight NO X emissions. When considering full flight aircraft emissions (i.e., including both LTO and non - LT O emissions), the

31 “Historical Assessment of Aircraft Landing and Take - of f Emissions (1986 - 2008),” Eastern Research Group, May 2011. A copy of this document can be found in public docket EPA - HQ - OAR - 2010 - 0687.

32 The cumulative LTO NOx reduction associated w ith the new NOx standards is projected to be about 100,000 tons from 2014 to 2030 (2014 is the implementation date of the CAEP/8 NOx standards). See “Historical Assessment of Aircraft Landing and Take - off Emissions (1986 - 2008),” Eastern Research Group, May 2011. A copy of this document can be foun d in public docket EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 26 of 206 contribution of aircraft to the total mobile source NO X inventory is approximately

7.7 percent. 33 It is also worth noting that these LTO emissions are more localized in that they occur near airports, which are mostly within urban areas. Table 1 : Current National NO X Emissions from Commercial Aircraft Aircraft Category 2008 Total NO X (thousand tons) Air Carrier 8 6 Commuter/Air Taxi 11 **Total Commercial**  **97** In addition, it is important to assess the contribution of commercial aircraft LTO NO X emissions on a local level, especiall y in areas containing or adjacent to airports. Th e historical anal ys is conducted b y ERG also included an assessment of selected ozone nonattainment areas (NAAs). The NAAs selected for study were chosen as follows. First, the 25 NAAs with airports which had high commercial traffic volumes were identified. Second, the 25 NAAs with the largest population were identified. These lists were combined. However, there was some overlap, and this led to a total of 4 0 NAAs being identified for the stud y. 34 These NAAs

33 U.S. EPA, “Comparison of Aircraft LTO and Full Flight NO X Em issions to Total Mobile Source NO X Em issions,” memorandum from John Mueller, Assessment and Standards Division, Office of Transportation and Air Qualit y, to docket EPA - HQ - OAR - 2010 - 0687, May 10, 2011.

34 Although 41 NAAs were studied, the non - aircraft emissions data source that the aircraft emissions were compared to for this analysis did not distinguish between the Boston NAA in Massachusetts and the greater Boston NAA in New Hampshire. Thus, aircraft emissions from those tw o NAAs were combined into a single NAA for the purpose of this analysis, yielding 40 NAAs for study.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 27 of 206 collectively

include 200 airports, accounting for about 70 percent of commercial air traffic operations . Of the 40 NAAs originally studied by ERG as previously

described, we identified the 30 areas that we re in nonattainment for ozone or PM 2.5 as of March 30, 2012. 35 Current (2008) and projected (2020) NO X emissions for these 3 0 ozone and PM 2.5 NAAs , as well as the percent contribution of aircraft to total mobile source inventories (as compared to 2005 and 2020 mobile source inventories), are shown in Table 2 . 36 , 37 , 38 The relative contribution of aircraft in an y given NAA var ies based on activity in other transportation and industrial sectors. As can be seen from this table, expected growth in aircraft operations in many of these areas combined with anticipated reductions in NO X emissions from other mobile source categories results in the growth of the relative contribution of aircraft LTO emissions to mobile source NO X emissions in NAAs.

35 For a current list of nonattainment areas see: http://www.epa.gov/oar/oaqps/greenbk/index.html

36 U.S. EPA, “Relative Contribution of Aircraft to Total Mobile Source NO X Emissions in Selected Ozone Nonattainment Areas,” memorandum from John Mueller, Assessment and Standards Division, Office of Transportation and Air Quality, to docket EPA - HQ - OAR - 2010 - 0687, May 10, 2011.

37 U.S. EPA, “Addendum to “Relative Contribution of Aircraft to Total Mobile Source NO X Em issions in Selected Ozone Nonattainment Areas,”” memorandum from John Mueller, Assessment and St andards Division, Office of Transportation and Air Quality, to docket EPA - HQ - OAR - 2010 - 0687, May 17, 2011.

38 U.S. EPA, “ Update to “Relative Contribution of Aircraft to Total Mobile Source NO X Emissions in Selected Ozone Nonattainment Areas,”” memorandum fr om John Mueller, Assessment and Standards Division, Office of Transportation and Air Quality, to docket EPA - HQ - OAR - 2010 - 0687, April 30, 2012.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 28 of 206 Table 2 : NO X Emissions in Selected Ozone and PM 2.5 Nonattainment Areas

Nonattainment Area 2008 Total NO X (tons) 2008 Aircraft Percent of Mobile Source NO X 2020 Aircraft Percent of Mobile Source NO X Atlanta, GA 5,808 2.6 8.2 Baltimore, MD 1,148 1.3 4. 4 Boston - including MA and NH 2, 0 3 2 1.0 2. 7Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 29 of 206 NAAs Charlotte - Gastonia - Rock Hill, NC - SC 1,917 2.6 10.0 Chicago - Gary - La ke County, IL - IN 6,007 1.8 5.0 Cleveland - Akron - Lorain, OH 680 0. 5 1. 3 Dallas - Fort Worth, TX 3,880 1.7 6.9 Denver - Boulder - Greeley - Fort Collins - Loveland, CO 2,649 2.5 7.1 Detroit - Ann Arbor, MI 2,312 1.1 3.0 Gr eater Connecticut, CT 405 0.8 2.4 Houston - Galveston - Brazoria, TX 3,045 1.3 3. 4 Indianapolis, I

N 1,089 1.4 3.0 La s Vegas, NV 2,308 6.0 15.8 Los Angeles South Coast Air Basin, CA 6,479 1. 5 4. 5 Louisville, KY - IN 1,211 1.9 6.2 Milwaukee - Racine, WI 557 0.9 3.2 New York - N. New Jersey Long Island, NY - NJ - CT 10,093 2.3 6. 3 Philadelphia - Wilmington Atlantic City, PA - NY - MD - DE 2,308 1.0 2.8 Phoenix - Mesa, AZ 2,298 1.4 3.3 Pittsburgh - Beaver Valley, PA 480 0.5 1.1 Providence (entire State), RI 232 1.0 2. 3 Riverside County (Coachella Valley), CA 70 0.2 0.5 Sacramento Metro, CA 603 1.0 2.0 Salt Lake City, UT 1,235 4.4 14.1 San Diego, CA 1,035 1.4 3. 4 San Francisco Bay Area, CA 4,405 2. 7 6.7 San Joaquin Valley, CA 74 0.0 0.1 Seattle - Tacoma, WA 1,958 1. 4 3.9 St. L ouis, MO - IL 810 0.6 1.6 Washington, DC - MD - VA 2,983 2.0 6. 2 Table 3 shows how commercial aircraft operations are projected to rise in the future on a nationwide basis . As operations increase, the inventory impact of these aircraft on national and local NO X inventories will also increase. Table 3 : Current and Projected Commercial Aircraft OperationsDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 30 of 206 Year Air Carrier

Operations (millions) Commuter/

Air Taxi Operations (millions) Total

Commercial Operations (millions) Total increase in

commercial operations over 2008 (percent) 2008 14.1 13.8 27.9 -- 2020 16.5 14.1 30.5 9 2030 20.6 16.0 36.6 31

Source: December 2010 FAA TAF, which is located at http://aspm.faa.gov/main/taf.asp . B. Heal th, Environmental and Air Quality I mpacts NO x emissions from aircraft and other mobile and stationary sources contribute to the formation of ozone. In addition, NO x emissions at low altitude also react in the atmosphere to form secondary

fine particulate matter (PM 2.5 ), particularly ammonium nitrate. In the following sections we discuss the adverse health and welfare effects associated with NO x emissions, in additio n to the current and projected levels of ozone and PM across the country . The ICAO NO x standards with which we are align ing will help reduce ambient ozone and secondary PM levels and thus will help areas with airports achieve or maintain attainment with the National Ambient Air Quality

Standards (NAAQS). 39 1. Background on Ozone, PM and NO X

39 The discussion of PM health and w elfare effects throughout this notice relates exclusively to the effects of th e NOx emission standards on the formation of secondary PM from nitrate formation in the atmosphere. Presently, there are no emission standards for PM emitted directly from aircraft turbine engines. The current and planned future w ork programs for CAEP/IC AO are developing PM test procedures and information to characterize the amount and type of these emissions from aircraft engines that are in production. Ultimately, this information will be used to assess the need for an aircraft turbine engine PM standa rd (i.e., whether PM emissions from aircraft cause or contribute to air pollution which may reasonably be anticipated to endanger public health or welfare), w ith standard setting as appropriate.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 31 of 206 a. What is Ozone? Ground - level ozone pollution is ty pically formed through reaction s involving VOC and NO X in the lower atmosphere in the presence of sunlight. These pollutants, often referred to as ozone precursors, are emitted by man y t ypes of pollution sources, such as highway and nonroad motor vehicles and engines, power plants, chemical plants, refinerie s, makers of consumer and commercial products, industrial facilities, and smaller area sources. The science of ozone formation, transport, and accumulation is complex. 40 Ground - level ozone is produced and destroy ed in a cy clical set of chemical reactions, many of which are sensitive to temperature and sunlight. When ambient temperatures and sunlight levels remain high for several day s and the air is relativel y stagnant, ozone and its precursors can build up and result in more ozone than ty picall y occurs on a single high - temperature day. Ozone and its precursors can be transported hundreds of miles downwind from precursor emissions , resulting in elevated ozone levels even in areas with low local VOC or NO X emissions. b . W hat is Particulate Matter? The disc ussion includes PM 2.5 because the NO X emitted by aircraft engines can react in the atmosphere to form nitrate, a component of PM 2.5 . Particulate matter is a generic term for a

**40** U.S. EPA Air Quality Criteria for Ozone and Related Phot ochemical Oxidants (Final). U.S. Environmental Protection Agency, Washington, D.C., EPA 600/R - 05/004aF - cF, 2006. This document is available in Docket EPA - HQ - OAR - 2010 - 0687. This document may be accessed electronically at: http://www.epa.gov/ttn/naaqs/stan dards/ozone/s_o3_cr_cd.html.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 32 of 206 broad class of chemically and phy sically diverse substances. It can be principa lly characterized as discrete particles that exist in the condensed (liquid or solid) phase spanning several orders of magnitude in size. Since 1987, EPA has delineated that subset of inhalable particles small enough to penetrate to the thoracic region (i ncluding the tracheobronchial and alveolar regions) of the respiratory

tract (referred to as thoracic particles). The c urrent PM NAAQS use s PM 2.5 as the indicator for fine particles (with PM 2.5 generally referring to particles with a nominal mean aerod ynamic diameter less than or equal to 2.5 micrometers (μm)), and use PM 10 as the indicator for purposes of regulating the coarse fraction of PM 10 (referred to as thoracic coarse particles or coarse - fraction particles; generall y including particles with a nomi nal mean aerod ynamic diameter greater than 2.5 μm and less than or equal to 10 μm, or PM 10 - 2.5 ). Ultrafine particles are a subset of fine particles, generall y less than 100 nanometers (0.1 μm) in diameter. Fine particles are produced primaril y b y combus tion processes and b y transformations of gaseous emissions (e.g., SO X , NO X and VOC) in the atmosphere. The chemical and phy sical properties of PM 2.5 may

vary greatly with time, region, meteorology , and source category . Thus, PM 2.5 may

include a complex m ixture of different components including sulfates, nitrates, organic compounds, elemental carbon and metal compounds. These particles can remain in the atmosphere for day s to weeks and travel hundreds to thousands of kilometers.

c . What is NO

X?Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 33 of 206 Nitrogen dioxide (NO 2 ) is a member of the NO X family of gases. Most NO 2 is formed in the air from the oxidation of nitric oxide (NO) emitted when fuel is burned at a high temperature. NO 2 and its gas phase oxidation products can dissolve in water dropl ets and further oxidize to form nitric acid which reacts with ammonia to form nitrates, an important component of ambient PM. NO X and VOC are the two major precursors of ozone. The health effects of ozone, ambient PM and NO X are covered in section II.B.2 . 2. Health Effects Associated with Exposure to Ozone, PM and NO X a. W hat are the Health Effects of Ozone? The health and welfare effects of ozone are well documented and are assessed in EPA’s 2006 Air Quality

Criteria Document and 2007 Staff Paper. 41 , 42 People who are more susceptible to effects associated with exposure to ozone can include children, the elderl y, and individuals with respiratory

disease such as asthma. Those with greater exposures to ozone, for instance due to time spent outdoors (e.g., children and outdoor workers), are of particular concern. Ozone can irritate the respiratory

s ystem, causing coughing, throat irritation, and breathing discomfort.

**41** U.S. EPA Air Quality Criteria for Ozone and Related Photochemical Oxidants (Final). U.S. Environmental Protection Agency, Washington, D.C., EPA 600/R - 05/004aF - cF, 2006. This document is available in Docket EPA - HQ - OAR - 2010 - 0687. This document may be accessed electronically at: http://www.epa.gov/ttn/naaqs/standards/ozone/s_o3_cr_cd.html .

42 U.S. EPA (2007) Review of the National Ambient Air Quality Standards for Ozone, Policy Assessment of Scientific and Technical Information. OAQPS Staff Paper.EPA - 452/R - 07 - 003. This document is available in Docket EPA - HQ - OAR - 2010 - 0687. This document is available electronically at: http:www.epa.gov/ttn/naaqs/standards/ozone/s_o3_cr_sp.html.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 34 of 206 Ozone can reduce lung function and cause pulmonary inflammation in healthy

individuals. O zone can also aggravate asthma, leading to more asthma attacks that require medical attention and/or the use of additional medication. Thus, ambient ozone may cause both healthy

and asthmatic individuals to limit their outdoor activities. In addition, th ere is suggestive evidence of a contribution of ozone to cardiovascular - related morbidity and highly

suggestive evidence that short - term ozone exposure directl y or indirectly contributes to non - accidental and cardiopulmonary - related mortality , but addition al research is needed to clarify the underl yi ng mechanisms causing these effects. In a report on the estimation of ozone - related premature mortality published by

the National Research Council (NRC), a panel of experts and reviewers concluded that short - te rm exposure to ambient ozone is likely to contribute to premature deaths and that ozone - related mortality should be included in estimates of the health benefits of reducing ozone exposure. 43 Animal toxicological evidence indicates that with repeated expos ure, 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. The respiratory effects observed in controlled human exposure studies and animal studies are cohere nt with the evidence from epidemiologic studies supporting 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 eviden ce of a contribution of ozone to cardiovascular - related morbidity and non - accidental and cardiopulmonary mortality . 43 National Research Council (NRC), 2008. Estimating Mortality Risk Reduction and Economic Benefits from Controlling Ozone Air Pollution . The National Academies Pres s: Washington, D.C. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 35 of 206 b. W hat are the Health Effects of PM? Scientific studies show ambient PM is associated with a series of adverse health effects. These hea lth effects are discussed in detail in EPA’s Integrated Science Assessment for Particulate Matter (I SA) . 44 The I SA summarizes health effects evidence associated with both short - term and long - term exposures to PM 2.5 , PM 10 - 2.5 , and ultrafine particles. The I SA concludes that health effects associated with short - term exposures (hours to day s) to ambient PM 2.5 include mortality, cardiovascular effects, such as altered vasomotor function and my ocardial ischemia, and hospital admissions and emergency department v isits for ischemic heart disease and congestive heart failure, and respiratory effects, such as exacerbation of asthma s ymptoms in children and hospital admissions and emergency department visits for chronic obstructive pulmonary disease and respiratory

in fections . 45 The ISA notes that l ong term exposure (months to y ears) to PM 2.5 is associated with the development/progression of cardiovascular disease, premature mortality , and respiratory effects, including reduced lung function growth in children, increas ed respiratory sy mptoms, and asthma development. 46 The ISA concludes that the currentl y available scientific evidence from epidemiologic, controlled human exposure, and toxicological studies supports a causal association between short - and

**44** U.S. EPA (2009) Integrated Science Assessment for Particulate Matter, EPA 600/R - 08/139F. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687. 45 U.S. EPA (2009). Integrated Science Assessment for Particulate Matter (Final Report). U.S. Environmental Protection Agency, Washington, DC, EPA/600/R - 08/139F, 2009. Section 2.3.1.1. 46 U.S. EPA (2009). Integrated Science Assessment for Particulate Matter (Final Rep ort). U.S. Environmental Protection Agency, Washington, DC, EPA/600/R - 08/139F, 2009. page 2 - 12, Sections 7.3.1.1 and 7.3.2.1.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 36 of 206 long - term exposures to PM 2.5 and cardiovascular effects and premature mortality . Furthermore, the I SA concludes that the collective evidence supports likely causal associations between short and long - term PM 2.5 exposures and respiratory effects. The ISA also concludes that the scientific evidence is suggestive of a causal association for reproductive and developmental effects including respiratory - related infant mortality and cancer, mutagenicit y, and genotoxicity and long - term exposure to PM 2. 5 . 47 For PM 10 - 2.5 , the I SA concludes that the current evidence is suggestive of a causal relationship between short - term exposures and premature mortalit y, cardiovascular effects, and respiratory

effects. Data are inadequate to draw conclusions regarding the health effects associated with long - term exposure to PM 10 - 2.5 . For ultrafine particles, the I SA concludes that there is suggestive evidence of a causal relationship between short - term exposures and cardiovascular effects, such as changes in heart rhy thm and blood vessel functi on. It also concludes that there is suggestive evidence of association between short - term exposure to ultrafine particles and respiratory effects. Data are inadequate to draw conclusions regarding the health effects associated with long - term exposure to u ltrafine particles.

47 U.S. EPA (2009). Integrated Science Assessment for Particulate Matter (Final Report). U.S. Environmental Protection Agency, Wash ington, DC, EPA/600/R - 08/139F, 2009. Section 2.3.2.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 37 of 206 c. What are the Health Effects of NO X? In formation on the health effects of NO 2 can be found in the EPA In tegrated Science Assessment (I SA) for Nitrogen Oxides. 48 The EPA has concluded that the findings of epidemiologic, controlled human exposure, and animal toxicological studies provide evidence that is sufficient to infer a likely causal relationship between respiratory effects and short - term NO 2 exposure. The I SA concludes that the strongest evidence for such a relationship comes from epidemiologic studies of respiratory effects including s ymptoms, emergency department visits, and hospital admissions. The I SA also draws two broad conclusions regarding airway re sponsiveness following NO 2 exposure. First, the I SA concludes that NO 2 exposure may enhance the sensitivity

to allergen - induced decrements in lung function and increase the allergen - induced airway

inflammatory

response following 30 - minute exposures of asthmatics to NO 2 concentrations as low as 0.26 ppm . Second, exposure to NO 2 has been found to enhance the inherent responsiveness of the airway to subsequent nonspecific challenges in controlled human exposure studies of asthmatic subjects. S mall but sign ificant increases in non - specific airway hy perresponsiveness were reported following 1 - hour exposures of asthmatics to 0.1 ppm NO 2 . Enhanced airway

responsiveness could have important clinical implications for asthmatics since transient increases in airwa y responsiveness following NO 2 exposure have the potential to increase sy

mptoms and worsen asthma control. Together, the epidemiologic and experimental

48 U.S. EPA (2008). Integrated Science Assessment for Oxides of Nitrogen

– Health Criteria (Final Report). EPA/600/R - 08/071. Washington, DC: U.S.EPA. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 38 of 206 data sets form a plausible, consistent, and coherent description of a relationship between NO 2 exposure s and an array

of adverse health effects that range from the onset of respiratory sy mptoms to hospital admission. Although the weight of evidence supporting a causal relationship is somewhat less certain than that associated with respiratory morbidit y, N O 2 has also been linked to other health endpoints. These include all - cause (non - accidental) mortality , hospital admissions or emergency department visits for cardiovascular disease, and decrements in lung function growth associated with chronic exposure. 3. Environmental Effects Associated with Exposure to Ozone, PM and NO X

a. Deposition of Nitrogen Emissions of NO X from aircraft engines contribute to atmospheric deposition of nitrogen in the U.S. Atmospheric deposition of nitrogen contributes to acidific ation, altering biogeochemistry

and affecting animal and plant life in terrestrial and aquatic ecos ys tems across the U nited S tates . The sensitivity of terrestrial and aquatic ecosy stems to acidification from nitrogen deposition is predominantly governed b y geology . Prolonged exposure to excess nitrogen deposition in sensitive areas acidifies lakes, rivers and soils. Increased acidit y in surface waters creates inhospitable conditions for biota and affects the abundance and nutritional value of preferred p rey

species, threatening biodiversity and ecos ys tem function. Over time, acidifying deposition also removes essential nutrients from forest soils, depleting the capacit y ofDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 39 of 206 soils to neutralize future acid loadings and negatively affecting forest sustainab ility . Major effects include a decline in sensitive forest tree species, such as red spruce (Picea rubens ) and sugar maple (

Acer saccharum ); and a loss of biodiversity of fishes, zooplankton, and macro invertebrates . In addition to the role nitrogen d eposition play s in acidification, nitrogen deposition also leads to nutrient enrichment and altered biogeochemical cy cling. In aquatic sy stems increased nitrogen can alter species assemblages and cause eutrophication. In terrestrial sy stems nitrogen load ing can lead to loss of nitrogen sensitive lichen species, decreased biodiversity of grasslands, meadows and other sensitive habitats, and increased potential for invasive species. Adverse impacts on soil chemistry and plant life have been observed for areas heavil y influenced b y atmospheric deposition of nutrients, metals and acid species, resulting in species shifts, loss of biodiversity, forest decline damage to forest productivity and reductions in ecos ys tem services. 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 y ield, and limited use of land due to contamination. Atmospheric deposition of pollutant s can reduce the a esthetic appeal of buildings and culturally important articles through soiling, and can contribute directly (or in conjunction withDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 40 of 206 other pollutants) to structural damage b y m eans of corrosion or erosion. 49 Atmospheric deposition may affect materials prin cipall y b y promoting and accelerating the corrosion of metals, by

degrading paints, and by deteriorating building materials such as concrete and limestone. Particles contribute to these effects because of their electrol yt ic, hy groscopic, and acidic properties, and their ability to adsorb corrosive gases (principally sulfur dioxide). b. Visibility Effects NOx emissions contribute to visibility impairment in the U.S. through the formation of secondary PM 2.5 . 50 Visibility

impairment is caused by

light scattering and absorption by suspended particles and gases. Visibility is important because it has direct significance to people’s enjo ym ent 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 highl y valued in significant natural

49 U.S. EPA. (2005). Review of the National Ambient Air Quality Standards for Particulate Matter: Policy Assessment of Scientific and Technical Information, OAQPS Staff Paper. Retrieved on April 9, 2009 from http://www.epa.gov/ttn/naaqs/standard s/pm/data/pmstaffpaper_20051221.pdf.

50 U.S. EPA. (2004). Air Quality Criteria for Particulate Matter (AQCD). Volume I Document No. EPA600/P - 99/002aF and Volume II Document No. EPA600/P - 99/002bF. Washington, DC: U.S. Environmental Protection Agency. Retriev ed on March 18, 2009 from http://cfpub.epa.gov/ncea/cfm/recordisplay.cfm?deid=87903.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 41 of 206 areas , such as national parks and wilderness areas , and special emphasis is given to protecting vi sibility in these areas. For more information on visibility see the final 200 9 PM I SA. 51 c. Plant and Ecosystem Effects of Ozone Elevated ozone levels contribute to environmental effects, with impacts to plants and ecos ys tems 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 low 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 impaired photosy nthesis, both of which can lead to reduced plant growth and reproduction, resulting in reduced cr op y ields, forestry production, and use of sensitive ornamentals in landscaping. In addition, the impairment of photosy

nthesis, the process by

which the plant makes carbohy drates (its source of energy and food), can lead to a subsequent reduction in root growth and carboh ydrate storage below ground, resulting in other, more subtle plant and ecos ys tems impacts. These latter impacts include increased susceptibility

of plants to insect attack, disease, harsh weather, interspecies competition and overall decr eased plant vigor. The adverse effects of ozone on forest and other natural vegetation can potentially lead to species shifts and loss from the affected ecos ys tems, resulting in a loss or reduction in associated ecosystem goods and services. L astl y, visi ble ozone

51 U.S. EPA (2009). Integrated Science Assessment for Particulate Matter (Final Report). U.S. Environmental Protection Agency, Washington, DC, EPA/600/R - 08/139F, 2009. A c opy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 42 of 206 injury to leaves can result in a loss of aesthetic value in areas of special scenic significance like national parks and wilderness areas. The final 2006 Ozone Air Quality Criteria Document presents more detailed information on ozone effects on vegetation and ecosystems. 4. Impacts on Ambient Air Quality Th e aircraft NOx emission standards we are promulgating would a ffect ambient concentrations of air pollutants. Nationally , levels of PM 2.5 , ozone, and NO X are declining. 52 However as of March 30, 2012, over 1 5 million people live in areas designated nonattainment for one or more of the current NAAQS. 53 These numbers do not include the people living in areas where there is a future risk of failing to maintain or attain the NAAQS. States with ozone nonattainment areas are required to take action to bring those areas into attainment . The attainment date assigned to an ozone nonattainment area is based on the area’s classification. Most ozone nonattainment areas are required to atta in the 1997 8 - hour ozone NAAQS in the 2007 to 2013 time frame and then to maintain it thereafter. 55 We anticipate

52 U. S. EPA (2010) Our Nation’s Air: Status and Trends through 2008. Office of Air Quality Planning and Standards, Research Triangle Park, NC. Publication No. EPA 454/R - 09 - 002. This document c an be accessed electronically at: http://www.epa.gov/airtrends/2010/. 53 US EPA, 2012. http://www.epa.gov/oar/oaqps/greenbk/index.html

55 The Los Angeles South Coast Ai r Basin 8 - hour ozone nonattainment area and the San Joaquin Valley Air Basin 8 - hour ozone nonattainment area are designated as extreme and w ill have to attain before June 15, 2024. The Sacramento, Coachella Valley and Houston 8 - hour ozone nonattainment ar eas are designated as severe and will have to attain by June 15, 2019. In addition, the Western Mojave 8 - hour ozone nonattainment area has requested to be reclassified as severe. This request has not yet been acted on.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 43 of 206 designating areas for the 2008 ozone standards in late spring 2012; thus, the attainment dates for areas designated nonattainment for the 2008 8 - hour ozone NAAQS would likely be in the 2015 to 203 2 timeframe, depending on the severit y of the problem in each area. 56 Areas designated as not attaining the 1 997 PM 2.5 NAAQS will need to attain the 1997 standards in the 2010 to 2015 time frame, and then maintain compliance with them thereafter. The 2006 24 - hour PM 2.5 nonattainment areas will be required to attain the 2006 24 - hour PM 2.5 NAAQS in the 2014 to 201 9 time frame and then be required to maintain the 2006 24 - hour PM 2.5 NAAQS thereafter. EPA has alread y adopted many emission control programs that are expected to reduce ambient ozone and PM 2.5 levels and which will assist in reducing the number of area s that fail to achieve the NAAQS . Even so, our air quality modeling projects that in 2030 as many as 1 0 counties with a population of over 3 0 million may not attain the 2008 ozone standard of 0.075 ppm (75 ppb) without additional controls. 58 In addition, our air quality modeling projects that in 2030 at least four counties with a population of nearly 7 million may not attain the 1997 annual PM 2.5 standard of 15 μg/m 3 and 2 2 counties with a population of over 33 million may not attain

56 US EPA, 2012. Proposed Rule - Im p lementation of the 2008 National Ambient Air Quality Standards for Ozone: Nonattainment Area Classifications Approach, Attainment Deadlines and Revocation of the 1997 Ozone Standards for Transportation Conformity Purposes. (77 FR 8107, February 14, 2012).

58 U.S. EPA (2010). Regulatory Impact Analysis: Final Rulemaking to Establish Greenhouse Gas Emission Standards and Fuel Efficiency Standards for Medium - and Heavy - Duty Engines and Vehicles. Chapter 8: Health and Environmental Impacts. EPA 420 - R - 11 - 901.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 44 of 206 the 2006 2 4 - hour PM 2.5 standard of 35 μg/m 3 without additional controls . 59 , 60 Th ese numbers do not account for those areas that are close to (e.g., within 10 percent of) the standards. These areas, although not violating the standards, would also benefit from an y re ductions in NO X ensuring long - term maintenance of the NAAQS. In summary , the aircraft NOx reductions resulting from the se new aircraft engine emission standards will be useful to states in attaining or maintaining the ozone, PM 2.5 , and NO 2 NAAQS standards. I II. Details of the Fina l Rule The following is a description of the regulations being adopted in this final rule , with an y changes from the proposal also noted. The descriptions also include our response to the most significant comments received on the proposal. A full summary of the comments and our responses are contained in the r esponse to c omments document for the rule that is available in the public docket for this action . 62

59 U.S. EPA (2010). Regulatory Impact Analysis: Final Rulemaking to Establish Greenhouse Gas Emission Standards and Fuel Efficiency Standards for Medium - and Heavy - Duty Engines and Vehicles. Chapter 8: Health and Environmental Impacts. EPA 420 - R - 11 - 901.

60 These figure s ar e based on the results of EPA com puter mo deling , which is not affect ed by the upcoming 2008 ozone NAAQS nonattainment designations.

62 U.S. Environmental Protection Agency, “Summary and Analysis of Comments: Control of Air Pollution from Aircraft and Aircraft Engines,” Office of Transportation and Air Quality, EPA - 420 - R - 12 - 011, **[insert date**  **here]** . A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 45 of 206 We are establishing two different levels or “ tiers ” of increasingl y more stringent NOx emission standards for gas turbofan engines with maximum rated thrusts greater than 26.7 kilonewtons (kN). 63 Each of the tiers appl y to newly - certified engines. Newly - certified aircraft engines are those that would rec eive a new t yp e certificate after the effective date of the applicable standards. Such engine t ypes or models would not have begun production prior to the effective date of the new requirement. 64 We are also requiring newly - manufactured engines to comply with the first tier of the two tiers of standards. Newly - manufactured aircraft engines are those that have been previously certified and manufactured in compliance with preexisting standards, and will continue to be produced after the effective date of a new applicable standard. Normally , these newl y manufactured engines must comply with the same NOx limits as newly - certified engines, but at a later date or cease production. 65 The end of this “phase - in” period for the newly - manufactured

63 The standards w ill apply to engines used in commercial and noncommercial aviation for which the FAA issues airworthiness certificates, e.g., non - revenue, ge neral aviation service. The vast majority of these engines are used in commercial applications.

64 ICAO standards describe newly - certified engines as “...engines of a type or model for which the date of manufacture of the first individual production model was after....” the effective date of the emission standards. See ICAO, “Aircraft Engine Emissions,” Annex 16, Volume II, Third Edition, July 2008, Amendment 4 effective on July 20, 2008. Copies of this document can be obtained from the ICAO website at www.icao.int . The term “first individual production model” means the first engine ever produced of a unique model or type.

65 The standards for newly - manufactured engines are described in general regulatory terms as the date that the type or model was first certified and produced in conformance with specific emission standards, and the date beyond which an individual engine meeting those same requirements cannot be made. So ICAO standards describe newly - manufactured engines a s “...engines of a type or model for which the date of manufacture of the first individual production model wa s after....” the effective date of the applicable standards, and “...for which the date of manufacture of the individual engine wa s on or before....” a sp ecific date that is later than the first effective date of the standards. See ICAO, “Aircraft Engine Emissions,” Annex 16, Volume II, Third Edition, July 2008,Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 46 of 206 engine standards is sometimes referred to as a “production cutoff . ”. Again, we are adopting only the first of the two new tiers of NOx standards for newl y - manufactured engines. These provisions are described in detail below. Five other regulatory

features are being esta

blished in this final rule . First, we are revis ing provisions for certain time - limited flexibilities, i.e., potential exemptions, for newl y manufactured engines that may not be able to comply

with the first tier of the new NOx standards because of specifi c technical or economic reasons . 66 Second, we are defining “derivative engine” for emissions certification purposes. The intent of this definition is to distinguish when the emission characteristics of a new turbofan engine model vary substantially from i ts existing parent engine design, and must show compliance with the emission standards for a newly - certificated engine. Third, we are establishing new CO and NOx standards for turbofan engines that are used to propel supersonic aircraft. These standards were adopted b y ICAO in the 1980s, but were not previously added to our HC emission standard for these engines . Promulgating t he se standards meet s our treat y obligation under the Convention on International Civil Aviation as previousl y described in sectio n I . C . Fourth, we are making several changes to the emission testing and measurement procedures in our regulations that are intended to implement ICAO’s Annex 16 and to incorporate the entire annex in our regulations Amendment 4 effective on July 20, 2008. Copies of this document can be obtained from the ICAO website at www.icao.int .

66 These apply only to the first tier of NOx standards. We are not adopting a production cutoff for the second tier of standards.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 47 of 206 by reference. Finally , as described in s ection IV , we are amend ing the current regulatory provisions that address definitions, acron ym s and abbreviations, general applicability and requirements, exemptions, and incorporation by reference. These amendments are intended to clarify requirement s, make them more consistent with other parts of the program, update the text to be consistent with current standard language conventions, or remove obsolete provisions. As discussed further below, with the exception of the annual reporting requirement describ ed in section III.D, the amendments reflect those changes that were previously adopted by ICAO . This final rule also is consistent with our authority and obligations under the CAA as described in s ection I. B . More specificall y, the technical feas ibility and cost of the emission standards were well documented by our own analyses and CAEP as described later in this section and in s ection V, Technical Feasibility , Costs, and Emission Benefits . We think that the final rule provides adequate lead tim e for the development and application of the requisite technology

with appropriate consideration to the cost of compliance. W e have consulted with the Department of Transportation through the FAA regarding lead time, noise, safet y, and the technical feasi bility of the new standards. Today ’s final rule is also consistent with U.S. treaty obligations under the Chicago Convention as described in section I. C ., because the requirements are consistent with current I CAO standards.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 48 of 206 Except to the extent needed to make our standards conform to ICAO’s standards by making them applicable to both commercial and non - commercial engines, we are not revis ing exhaust emission standards for HC, CO, or smoke . All engines subject to the new NOx standards would also continue to be subject to the existing HC, CO, and smoke standards. It is worth emphasizing that although we are includ ing these existing HC, CO, and smoke standards in a new section 87.23, which would also contain the new Tier 6 and Tier 8 NOx standards, we are not actually adopting new standards for these three pollutants , since under the current form of part 87 these HC, CO and smoke standards would alread y continue to apply to new engine t ypes subjec t to future revised NOx standards. As discussed above, w e are adopt ing a new naming convention in this preamble and the regulatory

text to more easily

distinguish between the tiers of increasingly more stringent NOx emission standards. This convention is also consistent with the numeric identifier that CAEP uses to differen tiate the CAEP work cy cle that produces new NOx standards. (The CAEP naming convention is described in section I.E.) As a result, the first tier of NOx standards, which correspond to CAEP/6, are referred to as Tier 6 in the remainder of today ’s notice. The second tier of standards is referred to as Tier 8, which correspond to CAEP/8. We are also incorporating the new naming convention in the regulations for the existing NOx emission standards, i.e., Tier 0, Tier 2, and Tier 4. There is no material chan ge to the existing NOx standards themselves, except to the extent that when today ’s final rule becomes effective, the existing NOx standards would be superseded b y Tier 6 standards.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 49 of 206 We acknowledge that this new naming convention is a change from the past practice of not describing aircraft engine emission standards as tiers. However, we believe the new naming scheme is a valuable tool that makes referring to individual NOx standards much easier. Itis also similar to the terminology we use for other mob ile source sectors that are subject to environmental regulation and for which standards have become more stringent or have otherwise been amended over time . A. NOx Standards for Newly - Certified Engines W e are adopting two different tiers of increasingl y stringent NOx standards. These standards would appl y for all for newl y - certified turb ofan aircraft engines with maximum rated thrusts greater than 26.7 kN . 67 (See section III.B for a discussion of how these standards appl y for newl y - manufactured engines that are not con sidered to be newl y certified.) The numerical value of the applicable standard for an individual engine model is defined by the engine’s thrust level and pressure ratio. Simply stated, the pressure ratio is the numerical ratio of the air pressure entering the engine to the air pressure at the entrance to the combustor, i.e., after the air has passed through the compressor section of the engine. 68 The new tiers are described separately below.

67 There are no gaseous emission standards, e.g., NOx, for gas tur bine engines with maximum rated thrusts equal to or less than 26.7kN. These engines are, however, subject to smoke and fuel venting standards.

68 The combustor is a chamber where a mixture of fuel and air is burned to form very hot, expanding gases. As these gases move through the combustion chamber, the walls of the combustor are cooled with dilution air toDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 50 of 206 1. Tier 6 NOx Standards for Newl y - Certified Engines This first tier of new standards is equivalent to the CAEP/6 NOx limits that were adopted by I CAO and became internationall y applicable after December 31, 2007. Given that aircraft turb ofan engines are international commodities, engine manufacture rs introduced engine models after that date that demonstrate compliance with these international standards , or are alread y planning to do so for upcoming engine designs. Based on this, our evaluation of the necessary lead time, and the lack of any comment s on this aspect of the proposal, this tier of standards take s effect immediatel y upon the effective date of this final rule . The basic form of the NOx standards for turbofan engines is different for higher - and lower - rated thrust engines. Higher output engines are defined as having rated thrusts equal to or greater than 89 kN , while lower output engines are defined as having rated thrusts less than 89 kN but greater than 26. 7 kN . The new Tier 6 NOx standards for each of these power grouping are described separatel y below. a. Numerical Emission Limits for Higher Thrust Engines The Tier 6 NOx standards for newl y - certified gas turbine engines with rated thrusts more than 89 kN are differentiated by pressure ratio as shown below.

prevent thermal damage. Dilution air is also used to tailor the gas’ temperature profile as it exits the combustor so that the final temperatures wi ll not exceed the allowable limit at the turbine inlet.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 51 of 206 • For engines with a pressure ratio of 30 or less: g/kN rated output = 16.72 + (1.4080 * engine pressure ratio) • For engines with a pressure ratio of more than 30 but less than 82.6: g/kN rated output = - 1.04 + (2.0 * engine pressure ratio) • For engines with a pressure ratio of 82.6 or more: g/kN rated output = 32 + (1.6 * engine pressure ratio) The new Tier 6 NOx standards for these higher thrust engines are presented in Figure 1 along with the previous EPA NOx standards, which were based on CAEP/4, for comparison.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 52 of 206 As a matter of convention, the relative stringency from one CAEP standard to another is expressed relative to a pressure ratio of 30, because the percentage reduction is usu ally inconsistent across all of the possible pressure ratios, which otherwise makes a simple comparison difficult. Using that convention, the Tier 6 standards (CAEP/6) are referred to as being 12 percent more stringent than the existing EPA NOx Tier 4 standards (CAEP/4). The relative stringency

can also be illustrated at other pressure ratios. At pressure ratios less than 30 the reductions are also 12 percent. At pressure ratios above 30, however, the percent reduction decreases as the pressure ratio is increased. Based on the figure, the percent reduction for current technology

engines ranges from about 8 to 12 percent. 0 20 40 60 80 100 120 140 160 180

10 30 50 70 90**g /** **k N** **T h** **r u** **s t** 

**Pressure Ratio (PR)**  **Figure 1: Tier 6 NOx Standards for Higher** 

**Thrust Engines** Existing Tier 4 Standard Tier 6

8% Reduction Current Engine PRs

12% ReductionDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 53 of 206 b. Numerical Emission Limits for Lower Thrust Engines The new Tier 6 NOx standards for newl y - certified gas turbine engines with rate d thrusts between 26.7 and equal to or less than 89.0 kN are differentiated b y both pressure ratio and rated thrust as shown below. • For engines with a pressure ratio of 30 or less: g/kN rated output = 38.5486 + (1.6823 * engine pressure ratio) - (0 .2453 * kN rated thrust) - (0.00308 * eng ine pressure ratio * kN rated thrust) • For engines with a pressure ratio of more than 30 but less than 82.6: g/kN rated output = 46.1 600 + (1.428 6 * engine pressure ratio) - (0.5 303 * kN rated thrust) + (0. 00642 * engine pressure ratio * kN rated thrust) In developing the corresponding NOx standards for low er thrust engines, CAEP recognized the technical challenges that ph ys ically smaller - sized engines sometimes present relative to incorporating some of the lowest NOx technology approaches , which are otherwise available to their larger counterparts. These technical difficulties are well documented and increase progressively

as size is reduced (from around 89 kN ). 69 For example, the relativel y small combustor space and section height of these engines creates constraints on the use of low

69 ICAO/CAEP, “Report of Third Meeting, Montreal, Quebec, December 5 - 15, 1995,” Document 9675, CAEP/3. A copy of this paper can be found in Docket EPA - HQ - OAR - 2010 - 0687 .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 54 of 206 NO x fuel - staged combustor concepts which inherently require the availability

of greater flow path cross - sectional area than conven tional combustors. Also, fuel - staged combustors need more fuel injectors, and this need is not compatible with the relativel y smaller total fuel flows of lower thrust engines. (Reductions in fuel flow per nozzle are difficult to attain without having clo gging problems due to the small sizes of the fuel metering ports.) In addition, lower thrust engine combustors have an inherently greater liner surface - to - combustion volume ratio, and this requires increased wall cooling air flow. Thus, less air will be available to obtain acceptable turbine inlet temperature distribution and for emissions control. 70 With these technological constraints in mind, CAEP fashioned the CAEP/6 NOx standards across the range of thrusts represented b y low - thrust engines to become comparativel y less stringent, i.e., CAEP/6 relative to CAEP/4, as the rated output and phy sical size of the engines decrease. We agree with this approach. As mentioned, the new Tier 6 standards depend on an individual engine’s rated thrust and pressure r atio. With two variables in the calculation, the standards cannot be represented in a simple figure, i.e., no single line graph showing the standards for all engines within the thrust range is possible as it was for higher thrust engines. Regardless of this complexity , however, some general observations are useful to characterize the Tier 6 NOx standards for lower thrust

70 ICAO, “Combined Report of the Certification and Technology Subgroups,” section 2.3.6.1, CAEP Working Group 3 (Emissions). Presented by the Chairman of the Technology Subgroup, Third Meeting, Bonn, Germ any, June 1995. A copy of this paper can be found in Docket EPA - HQ - OAR - 2010 - 0687 .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 55 of 206 engines based on the engine size versus technological challenge described in the previous paragraph. C ompar ing the new lower and higher thrust standards at 89 kN , which is the demarcation point between the two sets of standards, shows that the standards for lower thrust engines are numericall y equivalent to the limit for higher thrust engines at each pressure ratio. This is as expected because the engine sizes and ability to incorporate low - NOx technologies are the same at 89.0 kN delineation point. Again focusing onl y on 89 kN engines, the new Tier 6 standards represent a 12 percent reduction from the existing EPA Tier 4 ( CAEP/4 based standards ) for pressure ratios of 30 or less as shown below in Figure 2. This includes the region represented b y almost all current engine designs. At higher pressure ratios, the relative numerical reduction is progressivel y less because the slope of the two standards is essentially the same.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 56 of 206 At other thrust ratings the percent reduction between the new Tier 6 and existing EPA NOx standards at an y pressure ratio becomes progressively smaller as thrust decreases. This is illustrated in Figure 3 for a pressure ratio of 30. This pressure ratio was chosen for the example because , as before, the relative stringency of CAEP NOx standards is generally compared at this point as a matter of convention. As shown in the figure for current e ngines, the reduction ranges from 12 percent at the upper end of the thrust range to 0 percent at the lower end of the range. The pattern is similar for the other pressure ratios. Only the actual numerical value for percentage reduction at 89 kN , as show n on the far right of the figure, may vary by pressure ratio, as described at the beginning of this paragraph. However, in the region of pressure ratios

0 20 40 60 80 100 120 140 160 180

10 20 30 40 50 60**g /** **k N** **T h** **r u** **s t** 

**Pressure Ratio (PR)**  **Figure 2: Tier 6 NOx Standards for Low**  **er Thrust Engines Rated at 89.0 kN** 

Existing Standard Proposed Tier 6

12% Reduction Current Engine PRsDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 57 of 206 represented b y today’s engines, the results are identical to those shown in the figure, i.e., a 12 pe rcent reduction at 89 kN decreasing to 0 percent at 26.7 kN .

2. Tier 8 NOx Standards for Newl y - Certified Engines The second tier of new standards, i.e., Tier 8, are equivalent to the NOx limits that were most recentl y recommended at CAEP/ 8 in February 2 010 for adoption b y ICAO. 71 The CAEP/8 recommended standards have a recommended applicable date after December 31, 2013. As discussed further in section V of today ’s notice, we agree with CAEP that this provides engine

71 CAEP/7 did not adopt new aircraft engine NOx standards. 40 50 60 70 80 90 100

20 40 60 80 100**g /** **k N** **T h** **r u** **s t** 

**Thrust (kN)**  **Figure 3: Tier 6 NOx Standards for Low**  **er Thrust** 

**Engines A**

**t Pressure Ratio 30** 

Existing Tier 4 Standard Tier 6

0% Reduction at 26.7kN 12% Reduction at 89kN Current Engine ThrustsDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 58 of 206 manufacturers with adequate lead time to respond to these more stringent NOx standards considering the technical feasibility and cost associated with the requirements. 72 Therefore, this tier of standards take s effect on January 1, 2014 . As with the new Tier 6 NOx standards, the basic fo rm of the new Tier 8 standards for turb ofan engines is different for higher - and lower rated thrust engines. Higher output engines are defined as having rated thrusts equal to or greater than 89 kN , while lower output engines are defined as having rated thrusts less than 89 kN but greater than 26.7 kN . The longer - term standards for each of these power grouping are described separately below. a. Numerical Emission Limits for Higher Thrust Engines The new Tier 8 NOx standards for newl y - certified turb ofan e ngines with rated thrusts of 89 N or more are differentiated by pressure ratio as shown below.

72 Leadtime in this context refers to the time between CAEP adoption of a new emission standard and the effective date of the requirement. ICAO emission standards are g lobal in nature and designed to provide engine manufacturers with adequate time to develop and deploy the requisite technology. Manufacturers produce engines that comply with new ICAO standards to ensure their products can be sold and used worldwide even in the absence of specific U.S. regulations. Based on this response to the ICAO standard, w e find that there is also adequate leadtime between EPA’s promulgation of the new requirement and the associated effective date. No public comments pertaining to l eadtime were received.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 59 of 206 • For engines with a pressure ratio of 30 or less: g/kN rated output = 7.88 + (1.4080 * engine pressure ratio ) • For engines with a pressure ratio of mo re than 30 but less than 104.7: g/kN rated output = - 9.88+ (2.0 * engine pressure ratio) • For engines with a pressure ratio of 104.7 or more: g/kN rated output = 32 + (1.6 * engine pressure ratio) The new Tier 8 NOx standards for these higher thrust engines are presented in Figure 4 along with the new Tier 6 standards for comparison.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 6 0 of 206 As noted previousl y, as a matter of convention the relative stringency from one CAEP standard to another is generall y expressed relative to a pressure ratio of 30. Us ing that convention, the new Tier 8 standards (CAEP/8) are referred to as being 15 percent more stringent than the new Tier 6 NOx standards (CAEP/6). The relative stringency can also be illustrated at other pressure ratios. At pressure ratios less than 30 the reductions increase. At pressure ratios above 30, however, the percent reduction decreases. Based on the figure , the percent reduction for current engine design s range from about 11 to 19 percent. b. Numerical Emission Limits for Lower Thrust Engines

0 20 40 60 80 100 120 140 160 180

10 30 50 70 90**g /** **k N** **T h** **r u** **s t** 

**Pressure Ratio (PR)**  **Figure 4: Tier 8 NOx Standards for Higher** 

**Thrust Engines**

Tier 6 Tier 8 Current Engine PRs

19% Reduction

15% Reduction 11% ReductionDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 61 of 206 The new Tier 8 NOx standards for newl y - certified gas turbine engines with rated thrusts between 26.7 but less than or equal to 89.0 kN are differentiated by both pressure ratio and rated thrust as shown below. • For engines with a pressure ratio of 30 or less: g/kN rated output = 40.052 + (1.5681 * engine pressure ratio) - (0.3615 * kN rated thrust) - (0.0018 * eng ine pressure ratio * kN rated thrust) • For engines with a pressure ratio of more than 30 but less than 104.7: g/kN rated output = 41.9435 + (1.505 * engine pressure ratio) - (0.55823 * kN rated thrust) + (0.005562 * engine pressure ratio * kN rated thrust) In developing the corresponding CAEP/8 NOx standards for low thrust engines, CAEP recognized the technical challenges that ph ys ically smaller - sized engines represent relative to incorporating some of the lowest NOx technology, which is other wise available to their larger counterparts. These technical difficulties were described in the previous section for the Tier 6 low - thrust engine standards. Also as previously

described, no single line graph showing the standards for all engines within th e thrust range is possible as it was for higher thrust engines, because the equations have two variables. However, some general observations are useful to characterize the new Tier 8 NOx standards for lower thrust engines based on the engine size versus t echnological challengeDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 62 of 206 described in the previous paragraph. First, the new Tier 8 NOx standards for lower thrust engines are numerically

equivalent to the limit for higher thrust engines across all pressure ratios at the highest rating of 89 kN , where the engine sizes and ability to incorporated low - NOx technologies are comparable. This same characteristic was observed for the Tier 6 standards. Second, as shown below in Figure 5 for 89 kN engines, at this thrust rating the new Tier 8 standards represents a 15 percent reduction from the Tier 6 standards for a pressure ratio of 30. However, within the region of pressure ratios for all current engine designs, the reductions range from 19 to 23 percent.

0 20 40 60 80 100 120 140 160 180

10 20 30 40 50 60**g /** **k N** **T h** **r u** **s t** 

**Pressure Ratio**  **Figure 5: Tier 8 NOx Standards for Low**  **er Thrust Engines Rated at 89.0 kN** 

Tier 6 Tier 8 Current Engine PRs 15% Reduction 23% Reduction 19% ReductionDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 63 of 206 Third, at other thrust ratings the percent reduct ion between the new Tier 6 and Tier 8 standards at an y pressure ratio becomes progressively smaller as thrust decreases. This is illustrated in Figure 6 for a pressure ratio of 30, following the convention described above. A lso a s shown in the figure fo r current engines, the reduction ranges from 15 percent at the upper end of the thrust range to 5 percent at the lower end of the range. While not depicted in a figure, the pattern is similar for the other pressure ratios . H owever, the actual numerical v alues for percentage reductions at both ends of the thrust range, i.e., 26.7 to 89 kN , may vary by pressure ratio . I n the region of pressure ratios represented by today ’s engines, the results are identical to those shown in F igure 6 at 26.7 kN , i.e., a 5 percent reduction at all pressure ratios for that thrust rating . However , percent reductions increase linearly up to a maximum 23 percent reduction for 89 kN engines with pressure ratios of about 15.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 64 of 206 B. Application of the Tier 6 NOx Standards to Newly - Manufactured Engines This section describes the application of the new Tier 6 NOx standards to newly manufactured engines, and our amended temporary flexibilities for newly - manufactured engines that show significant problems comply ing with these requirements. Also , consistent with CAEP/8, we are not apply ing the new Tier 8 NOx standards to newl y - manufactured engines at this time . T his section concludes with a description of future efforts to examine such a possibili ty . 1. Phase - In of the Tier 6 NOx Standards for Newly - Manufactured Engines 40 50 60 70 80 90

20 40 60 80 100**g /** **k N** **T h** **r u** **s t** 

**Thrust (kN)**  **Figure 6: Tier 8 NOx Standards for Low**  **er Thrust** 

**Engines at Pressure Ratio 30**

Tier 6 Tier 8

Current Engine Thrusts 15% Reduction at 89 kN 5% Reduction at 26.7 kNDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 65 of 206 As described above, the new Tier 6 NOx standards apply to all engine t yp es or models that receive a new ty

pe certificate after the effective date of the final rule. We are also phas ing in these same NOx limits for newl y - manufactured engines for engine models (and their derivatives for emissions certification purposes ) that were originall y certified to less stringent requirements (i.e., Tier 2 or Tier 4) and were already being pr oduced for installation on new aircraft prior to the effective date of the final rule . 73 As a result, manufacturers need to bring newly manufactured engines of these previousl y certified models into compliance with the applicable Tier 6 standards b y a future date or cease production of those engine models. 74 As we discussed and described in our analysis of the need for a CAEP/ 6 production cutoff during the CAEP process, establishing a date certain for compliance with any emission standard is necessary to ensure that the full benefits of newer, more stringent requirements will be achieved in a reasonable time. 75 We are, however, adopting certain limited flexibilities for engines that cannot be made compliant because of specific technical or economic reasons , as discussed later in this section.

73 The requirement that newly - manufactured engines must meet the CAEP 6 NOx standard by a date certain applies only to engines that are intended to be installed on all new airframes. It w ould not apply to engines produced as “spare s,” which are intended to be installed on existing airframes as replacements for maintenance or other reasons. See section III.B.2 for more information about ne w and spare engines.

74 After this date the production of any noncompliant engines would cease because the FAA w ould discontinue issuing an airw orthiness approval tag (FAA Form 8130 - 3) to these engines.

75 ICAO, Committee on Aviation Environmental Protection (CAEP), Eight Meeting, Montreal, 1 to 12 February 2010, Agenda 2: Review of Technical Pro posals Relating to Aircraft Engine Emissions, Adoption of Production Cutoff for Emission Standards, WP/56, Presented by the United States, December 12, 2009. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 66 of 206 As described in the propos al, the effective date of January 1, 2013 76 for the newly manufactured engine s tandards is consistent with the expected market demand for these previously

certified engine ty

pes. Historicall y, engine manufacturers have often responded to the adoption of more stringent NOx standards by bringing older engine t ypes into compliance with the newer requirements well before the required date in anticipation of the likely market demand, or planning f

or the orderly

withdrawal of these engines from the marketplace. I nformation developed during the IC AO process in 2008 and 2009 77 , 78 , 79 and our more recent discussions with manufacturers indicate that : 1) all but a few models are alread y compliant with CAEP /6 standards, 2) nearl y without exception, all current production models will meet the CAEP / 6 requirements b y the 201 2 time frame, and 3) any noncompliant models will be phased out of production because of low market demand.

76 The regulatory text specifies that engine models certified at or below the Tier 4 NOx standards may be produced through December 31, 2012 w ithout meeting the Tier 6 NOx standards. Therefore, the effective date of the standards for new ly - ma nufactured engines is effectively January 1, 2013.

77 ICAO, Committee on Aviation Environmental Protection (CAEP), Steering Group Meeting, Salvador, Brazil, 22 to 26 June 2009, Agenda 6: Emissions Technical - WG3, Production Cutoffs and Associated Flexibilities for ICAO Engine Emission Standards, WP/39 , Presented by U.S. Representative, August 6, 2009. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.

78 ICAO, Committee on Aviation Environmental Protection (CAEP), Steering Group Meeting, Salvador, Brazil, 22 to 26 June 2009, Agenda It em 3: Forecasting and Economic Analysis Support Group (FESG), CAEP/6 NOx Production Cutoff Cost Analysis, WP/39, Presented by the FESG NOx Stringency Task Group, February 6, 2009. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.

79 ICAO, Committee on Aviation Environmental Protection (CAEP), Steering Group Meeting, Seattle, 22 to 26 September 2008, Agenda Item 3: Forecasting and Economic Analysis Support Group (FESG), Production Cutoff for NOx Standards, WP/6, Presented by the FESG Rapporteurs, April 9, 2008. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 67 of 206 W e think that the five - ye ar p hase - in p eriod from ICAO’s effective date of the CAEP/6 standards (corresponding to our new Tier 6 NOx standards ) for newl y - manufactured engines is adequate for manufacturers and their customers to respond to the new requirements without d isrupting their f

uture planning and purchasing decisions. 80 , 81 T his phase - in period for appl yi ng the Tier 6 NOx standards to newly - manufactured engines is also identical to the date for this same requirement that was adopted b y ICAO. N o comments were received expressing concern with this phase - in period for newl y - manufactured engines. We did, however, receive two comments expressing the view that the time between the date of our final rule and the January 1, 2013 effective date of the production cutoff would be to o short if it is less than one y ear. G eneral E lectric Aviation (GE) was the most detailed and began by noting that most of the engine models currently in production were certified to the Tier 4 standards and had demonstrated N Ox emissions below the Tier 6 at that time. They continued that if the original certification reports are sufficient for the FAA to formally certify these engines to the Tier 6 standards, th e n none of these engines would be adversely affected by

the produ ction cutoff. However, GE expressed the concern that if additional interactions or formal action by the FAA were needed, or revisions to the FAA’s FAR Part 34 were required, then

80 The ICAO CAEP/6 NOx standards became effective after December 31, 2007. 81 This period of time is also consistent with the phase - in period associated w ith previous ICAO standards. CAEP’s predecessor, the Committee on Aircraft Engines Emissions, established the first international emission standards with an effective date four y ears after adoption, i.e., effectively a four year phase - in. CAEP2 included a phase - in period of 4 years for newly - manufactured engines.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 68 of 206 having less than one ye ar between EPA’s final rule and the production cutoff could disrupt current engine production. As a result, GE asked that the date of the production cutoff be delay ed to take effect 12 months after the final rule , i.e., 2013 . The other joint comment from the Aerospace Industries Association (AIA) and the G eneral Aviation Manufacturers Association (GAMA) was similar in nature , but without supporting detail s . The commenters’ concerns do not relate to the technical or economic feasibility of newly - manufactured engines achieving emission levels in compliance wi th the new Tier 6 standards b y the date of the production cutoff as proposed. The concerns expressed do not argue that additional time is necess ar y “to permit the development and application of the requisite technology ” to compl y with the standards under CAA section 231(b). Therefore, the date of the Tier 6 production cutoff is appropriate and consistent with the Clean Air Act. Section 232(b) of the Act directly addresses our obligation relative to the effective date of the regulation. Specifically , it say s: “Any regulation prescribed under this section (and an y revision thereof) shall take effect after such period as the Administrator finds necessary (after consultation with the Secretary of Transportation) to permit the development and application of the requisite technology , giving appropriate consideration to the cost of compliance within such period.” Based on the information provided above , the aircraft engine models described b y GE are alread y capable of complying with the EPA Tier 6 NOx standard s using alread y applied requisite technology , i.e., the cost of appl yi ng with has alread y been borne, as the effective dateDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 69 of 206 of the corresponding ICAO CAEP/6 NOx standard has already passed. We do not believe there are an y t echnical feasibility or economic implications arising from the continued application of the requisite technology

for those engines to meet the Ti er 6 NOx standards. Also, c onsistent with our most recent previous amendment to the NOx standards, which similarly promulgated the standard at a level that was alread y being met by aircraft engine manufacturers who were alread y apply ing the requisite technology , the effective date does not need to in clude additional lead time for the development and application of additional technology that would be needed to comply with the standards. See, e.g., 70 FR 69604, 69674 - 76 (Nov. 17, 2005). As a result, the implementation dates provide more than adequate lead time under the statute. Therefore, because aircraft engine manufacturers are already able to comply with the Tier 6 NOx standard through the continued use of alread y applied requisite technology, and because the effective date of the corresponding ICAO CAEP/6 N Ox standard has alread y passed ( and also based on the assessment described in section V. Technical Feasibility , Cost, and Emission Benefits ) , w e find that the dates provide more than adequate lead time under the statute for application of requisite technol o gy . We also want to stress that the production cutoff i s actually an ICAO standard and we think it is important to stay aligned with th e CAEP production cutoff date. We note that this is also being adopted b y the European Aviation Safety Agency (EASA) and perha

ps other aviation certification authorities. Our adoption of the proposed d ate ins ures international consistencyDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 70 of 206 regarding the production cutoff date and avoids contradicting our international bilateral agreements with other governments, e.g., the European Union . Regarding the need for engine models to be formally recognized by

the FA A as comply ing with the new Tier 6 standard, this is completely within the purview of the FAA. In our previous most recent amendment to the NOx standard, we provided just a one - month lead time period before the revised standard became effective, and FAA di d not adopt corresponding implementing regulations until one y ear later, with no apparent disruption to the industry . ( See 70 FR 69664 , Nov. 17, 2005. ) The new Tier 6 standards are the same as the CAEP/6 standards that were approved b y IC AO in 2005 with an effective date of beginning after December 31, 2007. Therefore, just as for the 2005 revised NOx standard that we similarly promulgated significantl y later than the effective date of the corresponding IC AO CAEP standard, we do not believe that it is ne cessary to delay the effective date based on a need for the FAA to revise its own implementation and enforcement regulations. Finally , section 23 2(a) of the Act directs the FAA to e nsure compliance with our standards. In this regard , the FAA has developed a streamlined process to recognize compliance with Tier 6 and or Tier 8 as appropriate for currently t ype certified engine models which meet the emission standards and they have assured the regulated industry that they will dedicate the necessary resources to formally recognize conformance with the standards before the production cutoff date .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 71 of 206 For the reasons stated above, EPA is promulgating the Tier 6 production cutoff with the originall y proposed effective date of January 1, 2013 . 2. 2. Carry over of Previously Generated Emission Test Data Aircraft engine models normally receive ty pe certificates, which include a determination that the model meets the emission standards in force at the time the t ype certificate is granted. EPA has not updated its aircraft emission standards or test procedure regulations since 2005. In this action we are adopting Tier 6 and Tier 8 NOx emission standards and are adopting either in 40 CFR part 87 d irectl y or through incorporation by reference of Annex 16, Volume II a number of minor changes to test procedures and related requirements. These changes will become effective on the date when the rule becomes effective. This leaves open a question regard ing the future validity and acceptability

for amended ty pe certificates of emission tests and emission test data generated under previously specified test procedures and related requirements. For example, there may be an engine model tested in 2004 that d emonstrated HC, CO, and NOx emission levels below the exhaust emission standards in effect at that time and also below the Tier 6 or perhaps even the Tier 8 standards that are being promulgated in this final rule . We want to be clear that we do not intend minor changes to test procedures or related provisions and requirements to trigger the need for additional testing. Thus, in cases where a manufacturer has a valid current t ype certificate based on emissions information generated under the test procedure s in force at the time the ty pe certificate wasDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 72 of 206 granted, we consider that data to be valid for an y formal FAA recognition of compliance, e.g., an amended t ype certificate , with the Tier 6 or Tier 8 NOx emission requirements if the original test data demonstrate such compliance. The same is true for the HC and CO emission standards. This clarification should greatl y facilitate compliance determinations by the FAA and eliminate any uncertainty

regarding the potential for otherwise minor test procedure changes to trigger new emissions testing for previously certificated engines with emission levels below the new NOx standards. 3 . Exemption s and Exceptions from the Tier 6 Production Cutoff In conjunction with the implementation of the new Tier 6 NOx standards, we are establishing provisions which allow engine manufacturers to request an exemption or exception from meeting the Tier 6 NOx standards for newl y - manufactured engines . These provisions replace existing provisions addressing exemptions that were promulgated in section 87.7 of our aircraft engine regulations. (Any exemptions previously

issued under section 87.7 would not be affected b y the revisions.) This section of the preamble describes these exemption and exception provisions , i.e., exemptions for engines installed in new aircraft and exceptions for spare engines used in existing aircraft for maintenance purposes. It also in cludes a description of a short - term ex c eption program (termed the low - volume , time - limited transitional exemption program). These provisions have largely been crafted to be consistent with exemption provisionsDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 73 of 206 in the I CAO Environmental Technical Manual (ETM). 84 , 85 The provisions of the ETM guidance were developed in the context of the CAEP/6 NOx production cutoff deliberations leading up to the CAEP /8 meeting in February 2010. While we are revis ing our regulations, the process for evaluating any request for an exemption, i.e., petition, and an y final decision on its disposition would be unchanged. In this regard, the FAA is the process owner under its enforcement authority contained in section 232 of the Clean Air Act . 86 T he FAA must consult with EPA in evaluating the merits of the request, and the EPA must formally concur with an y decision regarding the gr anting or denial of the request. We are deleting from our regulations the requirement in §87.7(e) that the FAA publish a notice of the exemption in the Federal Register. The FAA has an established process in place for publishing requests for exemption that are filed in accordance with 14 CFR part 11. Under §87.7(b) of the exis ting regulations, the FAA , with EPA concurrence, may also exempt low -

84 ICAO, “Committee on Aviation Environmental Protection (CAEP), Report of the Eighth Meeting, Montreal, February 1 - 12, 2010,” CAEP/8 - WP/80. A copy of this document is in docket number EPA - HQ - OAR 2010 - 0687.

85 N ote that EPA has submitted a paper to amend th e exem ption provisions included in this ETM to be consistent with this rule. See ICAO, “Newly Produced Engine Exemptions for CAEP/6 NOx Production Cutoff,” CAEP9_WG3 - CTG - 2_IP01, September 23, 2010. A copy of this document is in docket number EPA - HQ - OAR 2 010 - 0687.

86 EPA formally transferred the responsibility and authority for the evaluation of requests for exemptions from the emission standards to the Secretary of Transportation (DOT). See “Control of Air Pollution from Aircraft and Aircraft Engines; Em ission Standards and Test Procedures;” Final Rule, 47 FR 58462 , December 30, 1982.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 74 of 206 production volume engines from being full y compliant with the emission st andards. Several such short - term exemptions were granted in the 1980s when emission standards were first applied. These exemptions have since expired, and requests for new exemptions under those provisions have not been submitted . We have determined that these provisions, which were adopted in conjunction with revised emission standards in 1982, are no longer of an y utility . 87 Therefore , we are delet ing these provisions to avoid confusion . W e are also delet ing the time - limited exemption provision for in - use engines that is contained in section 87.7(d) of the existing regulations . This provision applies to fuel venting and smoke emission standards, which were new when the exemption was adopted in 1973. The exemption allowance was limited to in - use engines that were unable to comply with the requirements when the regulation became e ffective in 1974. The in - use fleet of engines was fully retrofitted to comply

with the standards later in the 1970s. Therefore, this provision is now obsolete and we are deleting it to avoid confusion. We propos ed to delete the existing provisions for temporary

exemptions based on flights for short durations and infrequent intervals. Th is proposal was based on the E PA’s and FAA’s belief that the provisions were unnecessary because our standards appl y to aircraft certificated b y the FAA, and the FAA does not address in the certification process whether an aircraft will be used for short durations or infrequent interva ls. Hence, the provisions appeared to have no utility .

87 U.S.EPA, “Control of Air Pollution from Aircraft and Aircraft Engines; Emission Standards and Test Procedures,” Final Rule, 47 FR 58462, December 30, 1982.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 75 of 206 We received two comments from the Aerospace Industries Association (AIA) and the General Aviation Manufacturers Association (GAMA) requesting that the provision be retained. First, they

argued that as in the past, a new aircraft may be produced at a commercial facility that is destined for immediate conversion to a military only application at a separate facility . These aircraft may

require a small number of airworthiness flight tests before being d elivered to the conversion facility and conceivabl y would be subject to EPA standards during flight testing . While these aircraft would generall y utilize compliant engines, it may be possible that non compliant engines could be used (our standards do not apply to engines used on military aircraft as discussed later) and temporary exemptions would be necessary . Second, AIA and GAMA commented that it would be helpful if the provision also allowed for granting a discrete number of exemptions over a specified time period, rather than having to request the exemption prior to each flight as currently

required. In considering the commenters’ suggestion to retain the exemption provision , we note that a llowing such operations will not have any significant adverse affect on the environment because of the infrequent nature and short duration of such flights . Retaining the exemption is also consistent with exempt ing military aircraft from emission control requirements as discussed later. Therefore , we have retain ed the provision with one change , made in response to the comments, as described below .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 76 of 206 The current provision calls for the Secretary of Transportation to consult with the EPA Administrator when considering an y exemption request for infrequent interval and short duration flights not explicitly

allowed by

the regulations . Given the inconsequential nature of such flights on the environment, we believe that the Secretary should be able to consider and act on these petitions unilater ally

to streamline the process. Therefore, we are delet ing that portion of the previous exemption provision . Of course, we will consult with the Secretary if asked to do so. As for requesting a discrete number of temporary exemptions, we believe this is an issue that the Secretary of Transportation may address under its enforcement role as described in s ection 232 of the CAA. The current regulations also provide for permanent exemptions for newly - manufactured engines based on consideration of the certa in factors specified in section 87.7(c). We are replac ing these provisions with new regulatory text generall y consistent with the ETM that would provide for permanent exemptions or exceptions 88 for newl y manufactured engines used on new aircraft and spare engines used for maintenance or replacement purposes. These are summarized below. ( See §87.50 of the regulations for additional details on these exemptions /exceptions . ) a. New Provisions for Spare Engines

88 As used in 4 0 CFR part 87, as a practical matter the meanings of “exception” and “exemption” are essentially equivalent. How ever, under FAA regulations, the meanings of these terms are distinct, especially with respect to the manner in which they are administered.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 77 of 206 We are revising the regulations to allow the sale of a newl y - manufactured engine for installation on an in - service aircraft , i.e., a spare engine that does not conform to the applicable emissions standards at the time it was produced. It does not allow for installing such an engine on a new airc raft. Spare engines are produced from time to time in order to keep an aircraft in revenue service when the existing in - service engine must be removed for maintenance or replacement purposes as needed. Otherwise removing these aircraft from active servic e would be very expensive and logisticall y difficult. As we explained in the proposal, explicitly allowing for the production of spare engines is not addressed in the existing regulations because there is no production cutoff for the current Tier 4 NOx s tandards. Thus manufacturers have been allowed to continue production of older engine designs under t yp e certificates first issued before the Tier 4 standards took effect (e.g., Tier 2). However, final regulations now appl y a Tier 6 NOx production cutoff to all newl y manufactured engines . This means that if we did not also adopt a provision for the continued production of spare engines, manufacturers would be prohibited from producing Tier 4 engines under the existing ty

pe certificates for this purpose . We see no reason to change our policy of allowing manufacturers to produce new engines for use as spares. Therefore, the final regulatory provisions allow this practice to continue. To ensure there would be no adverse environmental effect from allowing the use of a spare engine as a direct replacement for an existing engine, we proposed that the spare could beDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 78 of 206 used only whe n the emissions for all pollutants of th at engine were equal to or lower than those of the engine it replac ed . This proposed require ment was consistent with the ETM, which also contains this allowance. We received a joint comment from AIA and GAMA stating that this is impractical because, while unlikely , a spare engine might have a different emissions profile for some pollutants than the engine it would replace. As an example, they stated that the two engines could have somewhat different combustion sy stems that might make one engine lower in NOx but higher in CO. They also suggested that EPA should consider the totality of the emiss ions in the decision, or delete the requirement in the final rule. These comments are surprising because this ETM provision, as well as the ex c eption provisions, was subject to significant discussions within CAEP that included the engine manufacturers as well as a representative from AIA. Nonetheless, i n this instance we believe the proposed provision should be modified to accommodate the potential for unusual circumstances as explained by

the commenter . As noted above, AI A and GAMA suggested that EPA consider of the totality of emissions relative to their environmental effects as the basis for evaluating spare engine exemptions . This would entail understanding and comparing the environmental consequences of the d ifferent pollutants. We find that could be very complicated because different pollutants have different health and welfare end points and consequences. For example , in the illustration offered b y the commenter s , the effects of LTO NOx and CO are largely u nrelated to one another.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 79 of 206 We think a preferred option to evaluating total environmental effects, or even dropping the provision entirely , is to incorporate an anti - backsliding requirement which ensure s that at a minimum the excepted spare engine at least m eets the same emission standards that are applicable to the engine it is replacing . For this reason, in response to the AIA and GAMA comment, we are modify ing this provision in the final rule to allow an excepted spare engine to have different emission lev els compared to the engine it replaces as long as it remains compliant with each of the applicable emission standards and any other requirements of its ty pe certificate. Given the limited number of spare engines in the fleet, we expect allowing these engi nes to have somewhat different emissions profile from engines they are replacing will have no significant adv erse environmental effect. This is especially true given that we expect the emissions of an excepted spare engine will be equal or better than the engine it is replacing in most cases in accordance with the basic tenant of the ETM. We are not requiring engine m anufacturers to obtain FAA or EPA approval before producing spare engines . However, they must submit information about the production of spare engines in an annual report to EPA (see s ection III. D for more on the annual report) . We proposed that because manufacturers are not required to seek or obtain formal approval to produce spare engines, this allow ance was referred to as an “exception” rather than an “exemption”. This terminology would be consistent with current FAA regulations. Furthermore, we proposed that the permanent record for each engine ex cep ted under this provision would need to indicate that the engine is an excepted spare engine and the engine itselfDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 80 of 206 would need to be labeled as “ EXCEPTED SPARE . ” in accordance with FAA marking requirements of 14 CFR . We received comments relating to allowing spare engines to be produced without requiring prior approval and the use of the terms “exceptions” or “excepted.” The Air Transport Association (ATA) 89 appreciated that there would be no case - by - case approval, noting that it simplifies administering the provision for FAA with out compromising the stru cture of the exemptions program set forth in the ETM. Regarding the terminology , AIA and GAMA noted that the terminology

was inconsistent with current engine name plate labeling practices. They stated that engines are currentl y either marked “COM PLY” or “EXEMPT” for emissions. Both organizations generall y felt the change in terminology for spare engines might be concerning to the operators holding an engine with a plate reading “EXCEPTED .” The y concluded that the name plate for spare engines should conti nue to use “exempt . ” The ATA appeared to give at least tacit approval to the new terminology by acknowledging without objection that spare engines would be labeled accordingl y. First, w e are puzzled that operators with a spare engine labeled as “excepted spare” rather than “exempt” may

have a concern, because AIA and GAMA did not elaborate on just what the concern might be. Without at least an example, we are unable to discern the nature of the concern and respond directly to it . We also find it puzzlin g that the two organization s that
89 The Air Transport Association has changed its name to Airlines for America (A4A).Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 81 of 206 represent aerospace manufacturers expressed a concern regarding operators of aircraft and aircraft engines when the actual organization representing those companies, ATA, did not express such a concern. Second, regarding the terminology , the Tier 6 production cutoff does not apply to the continued production of engines that are designated spares. Spare engines are produced to replace a similar engine alread y in service that was removed from service for maintenance purposes. Accordingly , the production of a spare engine is not restricted by the production cutoff, and the regulation does not apply to these engines. The non - applicability of the cutoff eliminates the need to process an exemption for continued production of thes e engines bey ond December 31, 2012. Conversel y, engines that are intended to be produced for new installations (i.e. not replacing an engine already in service) are subject to the production cutoff regulation and the continued production of such engines b ey ond the cutoff date would require a grant of exemption. Since the production of spare engines is not subject to the new cutoff regulations, the FAA proposed and the EPA accepted the idea that referring to these engines as exceptions to the regulation was more appropriate than requiring case - by - case consideration of exemptions when the regulation did not apply . Moreover, the word “exemption” is a meaningful regulatory term. Itis used by the FAA in 14 CFR Part 11 to mean that an applicant is subject to a particular regulation and is requestingDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 82 of 206 time - limited relief under a specific set of criteria. It is a specialized form of rulemaking. When an entity or its product is specificall y left out of a regulatory provision, it is considered

“ excepted ” . An y regulation adopted by the FAA would use these terms consistently . As alread y m entioned, assuming incorporation of these provisions by the FAA, engines meeting the requirements for spare engines could be produced and entered into commerce without pr ior approval from EPA or FAA . It is important to note that while spare engines would be excepted from the Tier 6 NOx standards being promulgated today , they still need to be produced under an FAA type certificate . ( This FAA oversight w ould serve the same role as the exemption approval step envisioned by IC AO in its ETM language for spare engines.) We also expect minimal additional burden for manufacturer s, since we are not establishing new restrictions, monitoring, recordkeeping, or reporting requirements other than the end of y ear report. b. New Provisions for Engines Installed in New Aircraft The primary

purpose of allowing limited continued production of Tier 4 engines is to provide for an orderly

implementation of the Tier 6 NOx product ion cutoff . It addresses engines reaching the end of their production cy cles in the time frame when new emission standards take effect. The t ypical production cycle would have annual production volumes ramp up quickly, remain at relatively

large volumes for several or many y ears, and then fall off over a few more ye ars. When new emission standards are adopted in the middle of a production cy cle to takeDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 83 of 206 effect a few ye ars later, manufacturers generall y devote technical resources to bring into compliance those engine models expected to be produced in large numbers in the time frame when the new standards are in effect. In contrast, they may plan not to invest in upgrading the emissions of engine models that would be very near the end of their normal produc tion cy cles when compliance with the new standards becomes required. The actual length and shape of this tail of production volumes can be affected b y factors not fully within the engine manufacturers’ control , e.g., unexpected market demand . Thus , exemp tions may be justified if a manufacturer does not complete the production cy cle before the production cutoff date and projected production volumes are not adequate to justify invest ing the necessary

resources to reduce emissions or there are other technolo gical issues . Furthermore, i n certain exceptional circumstances exemptions may also be appropriate. These are “hardship” situations that may arise as a result of unforeseen technical or economic circumstances or events bey ond control of the manufacturer . For example, this could vary from unexpected problems with technology upgrade programs to labor disruptions or natural events disrupting production or parts availability . Our regulations currentl y address these kinds of situations in section 87.7(c), entitled , “Exemptions for New Engines in Other Categories . ” We are replac ing this provision with a new set of provisions addressing exemptions for new engines. i. Time Frame and ScopeDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 84 of 206 The final regulations allow engine manufacturers to request an exemp tion for newl y manufacture d engines not meet ing the Tier 6 NOx standards so they may be installed in new aircraft. If granted, manufacturers may pr oduce a limited number of these newly - manufactured engines in a four ye ar time period beginning after Decemb er 31, 2012 and going through December 31, 2016. This four - ye ar time period is consistent with the ETM. The period for an y given approved exemption could be shorter depending on the specifics of the application , but it could not be longer. This exemptio n limit s NOx emissions from engines that are covered b y a valid ty pe certificate issued by

FAA. The engines must meet all other applicable requirements. More specificall y, an engine exempted from the Tier 6 NOx standards must be covered b y a previously

i ssued ty pe certificate showing compliance with the Tier 4 NOx standards, 90 as well as the current HC, CO, fuel venting, and smoke standards. As explained above, the scope of the exemption provisions are limited to newly manufactured engines that do not comp ly with the Tier 6 NOx standards. No need has been identified to apply such exemption language to the other regulated exhaust pollutants, i.e., smoke, hy drocarbons and carbon monoxide. The emission standards for those pollutant species have remained unchanged for nearly three decades and present no technical issues for modern

90 Engines certified only for compliance with earlier Tier 2 NOx standards w ould not be eligible for exemptions. This is also consistent with the exemption language in the I CAO ETM. Note that where such engines have emissions actually meeting the Tier 4 NOx standard, they may be recertified to the Tier 4 standards, but only before the effective date of the regulations.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 85 of 206 turbofan engines. 91 If new emission standards for these pollutants are conside red in the future, the potential need for exemption provisions will a lso be assessed at that time. We received comments requesting that exemptions be available for newl y - certified engines in addition to newly - manufactured engines. General Electric Aviati on (GE) stat ed that unforeseen circumstances may arise during the length y aircraft engine development process that necessitates a change in design , and that may affect the ability of that engine model to meet the prevailing Tier emission standard at certif ication. For that reason, GE concluded that exemptions for newly - certified engine would be beneficial. The AIA and GAMA jointly stated that the existing 40 CFR section 87.7(c) not onl y provides the flexibility to exempt newly manufactured engines from a production cutoff, but also for newl y - certificated engine models subject to any

emission standards, e.g., the Tier 8 NOx standards. They requested that this flexibility should be retained. Regarding the availability of exemptions for newly - certified eng ine models, the proposed regulatory

text made clear that the exemption provisions would only apply to newly manufactured engines. Specificall y, the intent was to establish provisions for newl y manufactured engines to address the potential technology and e conomic adversities that may arise as part of adopting the Tier 6 production cutoff. The ICAO ETM provisions are clearl y intended for that same purpose. Also, the original intent of EPA’s current exemption provisions

91 For example, the hydrocarbon exhaust emission standard s were adopted on December 30, 1982. See 47 FR 58462.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 86 of 206 in section 87.7(c), which we are modif yi ng in this rulemaking, is clear from the proposed rulemaking and final rulemaking that resulted in those provisions. The March 24, 1978 proposal described the concern as “...engines which are nearly [at] the end of their production life would be terminated prematurely because there would be insufficient future sales to justify incorporating emission controls.” (See 43 FR 12619, March 24, 1978.) The December 30, 1982 final rule referenced “...the removal of an engine model from the market because of its failu re to comply .” (See 47 FR 58468, December 30, 1982.) Obviously , the intent of the existing e xemption provision cited by AI A and GAMA was to make it apply onl y to newly - manufactured engines. As a general matter, we believe an exemption from the Tier 6 stan dard, or any other standard, for newl y - certified engine models is speculative at this time and would undermine the goal of regulatory

compliance by

new engine designs. In any event, neither the current ICAO Annex 16 , Volume II provisions nor the ETM provi de for newl y - certified engine exemptions. We believe that such would be a fundamental shift from Annex 16 and the ETM should be explored within the framework of IC AO/CAEP. Furthermore, engine manufacturers alread y have significant leadtime between the date CAEP adopts a new emission standard and the standard’s effective date, e.g., usually 3 - 5 y ears. Finally , engine manufacturers historicall y design new engine models to comply with the most stringent future standard that also provides for a longer develo pment time horizon. Therefore, we are promulgating the exemption provisions for newl y - manufactured engines as proposed.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 87 of 206 ii. Production Limit As proposed, section 8 7 . 5 of the final regulations reflect the essence of the general exemption language for exhaust emission standards regarding how to determine the number of allowable exemptions that is embodied in existing section 87.7(c) of the regulations. That provision generall y that the FAA, with EPA ’s concurrence , may grant exemptions to exhaust e mission standards based on factors such as adverse economic impact on the engine manufacturer, aircraft manufacturer, or airline industry ; in addition to the effects on public health and welfare. As a result, section 87. 5 does not specify a nominal number of exemptions. Rather, e ach request for exemption would be evaluated on a case - by - case basis, using the information provided b y the applicant and an y other relevant information that is available to FAA and EPA at the time. Any

approved exemption wo uld include a specific limit on the number of such engines based on that information and is not defined on a basis such as ty pe certificate. (See section III.B.b.iii for a description of what the request must contain.) The intent, of course, would be to exempt the minimum number of engines that can be clearly justified, including a consideration of the public health and welfare effect associated with the exemptions. In the proposal, w e acknowledged that our approach to determining limits on the number of exempt engines differs from the language contained in the current ICAO ETM guidance. The ETM states that “[t]he number of engines exempted would normally not exceed 75 per engineDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 88 of 206 ty pe....” 92 We chose not to propose adopting this language on the nominal number of engines based on a single t ype certificate. Our reasons for this deviation were detailed in the . The interested reader is referred to the proposed rule for more detail . (See 76 FR 45012. July 27. 2011.) We also want to emphasize that the exemption provisions as proposed and promulgated in this notice are not necessarily limited to the Tier 6 NOx production cut - off, but could in fact be applied to future aircraft engine emission standards if a similar product ion cut - off was adopted. Therefore, we believe our approach is preferable because it more clearl y leaves the number of exemptions that might be granted open and subject to the justification supplied by the engine manufacturer, both for the Tier 6 producti on cut - off and the future. We received several comments focusing primarily on the number of exemptions and the underly ing process that is embodied in the ETM and our propos al . General Electric Aviation (GE) maintained that harmonization with the international community is not only

required b y the Chicago Convention, but also provides streamlined processes and procedures within the regulated industry . They contended that an y purported benefits to EPA’s unique exemption scheme were outweighed by setting up a conflict with the remainder of the world. They also suggested that if EPA wants a different approach for evaluating exemptions, it would be more appropriate to work inside the ICAO/CAEP process toward that end.

92 CAEP/8

– WP/18, Environmental Technical Manual (ETM), Vol II on the Use of Procedures in the Em ission Certification of Aircraft Engines , Appendix ”ICAO Emissions Environmental Technical Manual”.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 89 of 206 The ATA commented that EPA ’s case - by - case approach to determining the number of engines is a rejection of the I CAO/ETM provisions that limit “...the number of exemptions ... to 75 engines per t ype certificate... . ” They argued that this would create a serious discontinuity between the U.S. and the rest of the world, undermining I CAO’s objective of international uniformity . The ATA also argued that the ICAO exemption limits are intended to be coordinated among international aviation authorities , and that d iffering ru les would make this impracticable. As evidence of this problem, ATA cited the European Aviation Safet y Agency’s (EASA) proposed rulemaking , which they noted was based on the assumption that the I CAO proposals will be adopted unaltered by other aviation authorities of the world. The ATA also stated that the I CAO ETM guidance document supplements the official standards of Annex 16, Vol. II and, therefore, the ETM provides technical elaboration on the implementation of Annex 16. From this ATA concluded that differing practices in this regard are counter to the Chicago Convention. Regarding consistency

with the Chicago Convention , our proposal thoroughly explained that the ETM is guidance material; not an ICAO standard or regulation of any t ype. While consistency

is desireable, it is not compelled when a deviation is justified . Therefore, we disagree with the commenter s on this point, and specificall y with ATA’s comment that the I CAO guidance is effectivel y the equivalent of an ICAO Annex 16 standard. Turning to ATA’s comment regarding the ETM cap of 75 engines per t ype certificate, we first want to point out that thi s is not a maximum limit on the number of potential exemptions perDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 90 of 206 ty pe certificate nor is it an implied entitlement . Rather the ETM provision is an expectation that “[T]he number of engines exempted would normally not exceed 75 per engine ty pe certificat e ....” as stated in the document. With this perspective both the ETM and our approach are similar in that the maximum number of exempted engines is based on a consideration of the petitioner’s justification for such exemptions. Finally , we disagree with the comment that the differences with the ETM make international coordination unworkable. In fact, one of the proposed justification elements, i.e., how many

affected aircraft will be registered in the U.S. and other countries (estimate allowed), was desc ribed in the preamble for the proposal as being aimed at helping to facilitate consultation and coordination. Also, as noted above, the ETM’s expectation and our approach are similar in that the maximum number of exempted engines under both approaches is based on a consideration of the petitioner’s justification for such exemptions. We do not think coordination with foreign aviation authorities , with these few differences , should pose any problems. After considering the above comments on the number of exemptions and the underly ing process embodied in the ETM and our approach, we are promulgating the provisions relating to the comments as originally proposed. iii. Exemption Requests We are establishin g a process for requesting exemptions (for engines used on new aircraft) that would be more formal and structured than the current process. We are requiringDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 91 of 206 manufacturers submit their request to the FAA , as currentl y required. The FAA will then share the submittal with EPA and execute the consultation process . To ensure that we have the information n ecessary to evaluate exemption requests in this specific manner, the requests need to include the following details to describe the specific engine model for which the manufacturer i s requesting the exemption. The final provisions contained in §87.50, whi ch are summarized below , are consistent with and in some areas expand on the provisions in the ETM: General Information

• Corporate name and an authorized repre sentative’s contact information (including a signed statement verify ing the information);

• Description of the engines for which you are requesting the exemption, including the e ngine model and sub - model names;

• The number of engines that y ou would produce under the exemption and the period duri ng which you would produce them;

• Id entify the authorizing t ype certificate (t y pe certificate number and date);

• In formation about the aircraft in which the engines will be installed, including the airframe models and expected first purchasers/users of the aircraft, and the countries inDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 92 of 206 which y o u ex pect the aircraft to be registered (including an estimate of how many will be registered in the U.S.); and

• Li st of other certificating authorities from which y ou have requested (or expect to request) exemptions, and a summary of each request. Ju stification and Impacts Assessment

• A detailed description and assessment of the environmental i mpact of granting the exemption;

• Technical issues, from an environmental and airworthiness perspective, which may have caused a delay

in compliance w ith a production cutoff, if an y;

• Any economic impacts on the manufacturer, operator(s), and aviation industry at large; and

• Projected future production volumes and plans for producing a compliant version of the engine model in question. Other Factors

• Hardship: Impact of unforeseen technical circumstances , business events, or other natural or manmade calamities bey ond y our control, andDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 93 of 206 • Equity issues in administering the production cutoff among economically competing parties . It is important that an y action on a potential exemption request be in the public interest; the fairl y comprehensive list of application information in the regulations is intended to gather the information needed for this assessment. We would expect to take a broad perspective in evaluating what is or is not in the public interest. This is why a manufacturer ’s justification need s to include a quantified description of the environmental effects of granting the exemption, as well as discussion of economic and technical issues related to bringing the engine into compliance. The anal ys is of environmental impacts need s to specify by how much the exempted engines would exceed the standards, the in - use effects in terms of lifetime tons of NOx, and estimate the e missions rates of engines/aircraft that could potentially be used if the exemption was not granted. Since exemptions granted under the regulations appl y only to NOx emissions, the anal ys is could also include possible benefits regarding noise levels or red uced emissions of pollutants other than NOx. Relevant economic impacts could include effects on the engine manufacturer, airframe manufacturer, airline(s), and the general public. As we detailed in the proposal, some manufacturers have requested exemption s in the past based on the largest number of engines they hoped to continue manufactur ing without knowing how man y they

would actuall y be able to produce or who would purchase them. The new exemption language calls for manufacturers to target their reques ts more specificall y basedDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 94 of 206 on likely production needs and time periods. While we expect a manufacturer to have this specific information when they submit a request, the final regulations allow us to process exemption requests with somewhat less specific i nformation. However, we expect this to apply only for unusual circumstances. Manufacturers also are being required to notify the FAA if they determine after submitting a request that the information is not accurate, either from an error or from changing circumstances. The final regulations also allow manufacturers to revise their requests to justify cover ing additional engines at an y time before approval . We would then review the revised request. Similarly , for e xemptions that are alread y approved , manufacturers could request that additional engines be added after providing the justification for the increase . We received comments on the level of detail required in a request for exemption and the time needed to add more engines to such a request or an alread y approved exemption. First, ATA was concerned that r equesting an increased amount of engine exemptions can take a significant amount of time . They stated that there may

be ins ufficient time for a manufacturer to receive approval for additional en gine exemption s if necessary to meet previously

unknown market demands. In response, we find it unfortunate that the comment does not provide a specific example or other information that may illustrate this concern. As a general response, given the long leadtime between the initiation of discussions among aircraft purchasers and aircraftDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 95 of 206 manufacturers, and ac tual orders and final deliveries, we expect that manufacturers will have enough time to request additional engine exemptions, and if appropriate, for the FAA and EPA to approve such a request. We expect that amending an alread y approved exemption would take less time to act upon than the original petition. Also, engine manufacturers may request an expedited review from the FAA, and b y association the EPA, if circumstances warrant. Finally, to the extent that an engine manufacturer has specific concerns i n this area, they could be ameliorated b y improving the lines of communication with air frame manufacturers to increase the manufacturer’s awareness of market interest in potential new orders. Accordingl y, we are promulgating the exemption provision relat ing to this comment as proposed. Second, ATA commented negativel y that the exemption request for each individual engine be justified, “...including the exact number, initial purchasers/users, countries of registry and plans for bring ing the product into comp liance.” They claimed that this knowledge may not be known at the time of the exemption request because of market leadtime . As an example, ATA cited the 1998 Rolls Roy ce (RR) exemption request from the CAEP / 2 cutoff for 150 engines that was not based on that ty pe of certainty , but was a prospective exemption for two ye ars as protection against the uncertainties of technical development. They stated that RR did not know when the development process would be completed, and hence did not know the exact numb er of non - compliant engines that airlines would purchase. The ATA also added that the three affected airlines worked with RR to provide documentation of the financial and operational hardship that they

would suffer based on their aircraft delivery schedul es.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 96 of 206 In response to ATA’s second comment, we simply want to note that the information we would normally

expect to be contained in the exemption application is actually not much different than the justification envisioned by the ETM. That guidance document explains that the petitioner should, to the extent possible, provide quantitative support to justify the exemptions. Specifically, the ETM states that it “...provides guidelines on the process and criteria for issuing exemptions....” These include some of the same elements as contained in our proposal and referenced above, i.e., the exact number of exemptions being requested, to whom the engines will be originally delivered, and plans for producing a compliant product. Therefore, the ETM envisions a conside ration of specific information as part of the exemption request, in a similar fashion as EPA’s approach, in order to decide on the exact number of exemptions to grant. We are simpl y being more explicit in some areas concerning the t ype of information that should be included in any exemption request. We also note ATA’s comment that “[T]he airlines work ed with Rolls Roy ce to provide documentation of the financial and operational hardship that they would suffer if there were an interruption in the supply of IC AO - compliant engines during their aircraft delivery

schedules . ” G iven the long lead times generall y associated with new aircraft orders and deliveries, we expect aircraft operators will work closely with aircraft manufacturers as their new aircraft needs are identified. Engine manufacturers should in turn work with aircraft manufacturers to stay aware of market interest in potential new orders. This appears to be reflected in the commenter’s example regarding the cooperation between airlines and RR in fashioning the exemptionDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 97 of 206 justification. Also, as explained in the proposed regulatory text, the petitioner should include information on the “ expected” first purchasers/users of the aircraft. It also ask ed for information on the number of aircraft th at will be registered in the U.S. versus other countries and that this may be estimated if not known. Therefore, precise knowledge is not needed for certain elements of the justification. The preamble to the proposed requirements also stated that the regulations would allow us to process exemption requests with somewhat less specific information, although we expected that to appl y only for unusual circumstances. We have made this clearer in the final regulations. In order to allow us to oversee these exempted engines, manufacturers are being required to also pro vide an annual report to EPA on exempt engines similar to the information about spare ex cepted engines. The permanent record for each engine exempted under this provision must indicate that the engine is an exempted engine and the engine itself must be labeled as

“ EXEMPT NEW . ” iv. Coordination of Exemption Requests The limit on the number of potentially exempt engines as described in the ETM is intended to apply

to overall worldwide production. Toward that end, the ETM envisions that certificating authorities and member states should coordinate whenever an y authorit y receives an exemption request.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 98 of 206 Working with the FAA, we expect to consult with other aviation authorities whenever we receive an exemption request. This would include a consultation with other certificating authorities as well as coordination with the appropriate civil aviation authority of an y country where the aircraft with the exempted engines will be registered. To facilitate this coordination we are asking that manufacturers also include in their requests , a list of countries in which the aircraf t are expected to be registered. While not specificall y listed in the ETM, we believe that this information is consistent with the ETM as it would be necessary

to ensure proper coordination. The ETM appears to presume that each member country

will recogn ize exemptions granted by other countries. This presumption seems reasonable assuming that the exemption being granted is generall y consistent with the guidelines of the ETM and that the consultation and coordination called for in the ETM was conducted in good faith. However, there should be no presumption that EPA would agree to an exemption for an engine model if the aforementioned collaboration, consultation, and coordination were not conducted. The Clean Air Act (which provides EPA with its authori ty to establish emission standards) includes no provisions that would allow an y foreign country or other certificating authority to exempt subject aircraft engines, over the objection of FAA and EPA, from the applicable standards EPA promulgates. 104 Neverth eless, because our final exemptions provisions

104 It is possible that applications for exemptions by foreign entities may be filed w ith their national c ertificating authorities for engines manufactured after December 31, 2012 and could be operated in the United States. The FAA has several international bilateral agreements in place that include provisions and obligations for technical assistance on envir onm ental certification matters. The FAA plans to continue to coordinate with thoseDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 99 of 206 are generally consistent with the procedures called for in the ETM, assuming appropriate consultation and coordination in accordance with the ETM and absent unforeseen complications, it is reasonable to believ e that FAA and EPA would not object to exemptions for engines properl y exempted b y other countries under those procedures. The FAA would still need to take the certification action as called out in 14 CFR 91.203 and 14 CFR 21.183. This, however, raises the question as to how we would respond to an exemption request when another certificating authorit y did not consult or coordinate on a previous request for the same engine model. A related concern arises if an FAA ty pe certificate is sought under a recipr ocity

agreement for an engine which was previously certificated under an exemption by a foreign certificating authority , and the original exemption was not coordinated with the United States. Such requests would likely be viewed as new exemption requests if the anticipated collaboration, consultation, and coordination had not occurred. Thus to avoid these issues, in most cases, manufacturers may want to work with all relevant certificating authorities at the same time as well as the civil aviation authority of nation(s) where the aircraft will be initially registered or operated if that nation requires a t yp e certificate issued under its own regulations to operate in its air space consistent with international agreements. foreign certificating authorities in their considering and granting petitions for exemptions and, likewise, those that are filed w ith the FAA and in consultation with EPA.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 100 of 206 v . L ow - volume, time - limited transitional ex e m ption program We r eceived a comment from one manufacturer expressing concern that once the final rule becomes effective additional time may be required for EPA and FAA to establish and undertake procedures to review and act upon exemption requests. They stated that the time needed for this process could be very dis ruptive for engine manufacturers that have alread y contracted to deliver engines during th e period which FAA/EPA would need to consider exemption requests . They also claimed it would be harmful to airplane manufacturers and airlines. To avoid such an undesirable outcome, the commenter suggested that EPA should grant a one - time, interim block of perhaps 20 exemptions. Based on supplemental information we received from the commenter , 105 we find the concerns center on six engines for which they have contract commitments to build and deliver within several months of this final rule. T hese six engines belong to two engine models, with four engines in one model and two engines in the other . The first model co nsist ing of four engines is scheduled to begin shipp ing in January 2013, shortly

after the January

1, 2013 Tier 6 production cut off. These engines are currentl y certificated to the Tier 4 NOx standards . The commenter ha s stated, however, that the design of this engine model has been technically modif ied to achieve the Tier 6 standards. Unfortunately , compliance testing of th is model to

105 Mem oranda documenting this supplemental information are located in docket n umber EPA - HQ - OAR 2010 - 0687 .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 101 of 206 meet the Tier 6 standards cannot be performed until December of 2012 when the first production version is built . Assuming that this testing is successful, inadequate time remains for the FAA to formally recognize Tier 6 compliance based on those tests before the production cutoff becomes effective. 106 The two new aircraft using these engines are being built and will be delivered to a foreign airline. The second model is comprised of two engines with a contracted deliver date in May 2013. They are also certificated to the Tier 4 NOx standards. These engines are at the end of their production life, i.e., no additional future deliveries for civilian uses are antic ipated bey ond these two contracted engines . For this reason, the commenter has stated that it is not economicall y feasible to redesign this model to conform with the Tier 6 NOx standards, even if it were technicall y feasible. The single new aircraft usin g these engine s is also being built for delivery to a foreign airline. After assessing this concern, we are including an exception provision in the regulations that permits any

aircraft engine manufacturer to produce and enter into commerce up to six newly - manufactured engines with a date of manufacture , as defined in the regulations, prior to August 3 1, 2013 that are not certificated to meet Tier 6 emission requirements . W e find that a considerable amount of time will indeed be required between the time this final rule becomes

106 The FAA has stated to EPA that inadequate time exists for the required formal compliance determination before the production cutoff takes effect.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 102 of 206 effective and completing any formal FAA action using the normal exemption process as previously

described in this notice . Specificall y, t ime is needed for : 1) the FAA to amend 14 CFR part 34 through rulemaking to incorporate the production cutoff and procedures for granting exemption from the new standards ; 2) the manufacturer to develop the information needed s to s upport a request ; 3) submitting the request for review by FAA and EPA ; 4) c oordination with other certificating authorities ; and 5) EPA and FAA review and final action on the request, i.e., approval or disapproval. Regarding this review and final action, we note that FAA staff involved in reviewing the manufacturers request may also be engaged in conducting the processes to adopt this rule in 14 CFR part 34 and to review emission information on current ty pe certificates to confirm that they

meet either Tier 6 or Tier 8 requirements , as previousl y described . Therefore, we conclud e that inadequate time exists to act on an exemption request with certaint y for these six engines before their contract deliver dates. Consequently , we conclude that a limited modification to the otherwise universal effective date of the final Tier 6 comp liance deadline is appropriate to accommodate the commenter’s situation and that for these six specific engines additional lead time is needed due to cost and technical feasibility factors. We also believe that disrupting the scheduled delivery dates of these engines could risk subject ing the commenter to possible financial penalties for late delivery , with possible follow on effects for the aircraft manufacturer and airlines. We also find that there is no significant adverse effect on the environment in allowing these six engines to be produced and sold asDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 103 of 206 compliant with Tier 4 standards , especially if four of the engines ultimately comply with the Tier 6 standards. For the above reasons, and in response to the comments and under our authority under sections 231(a)(3 ) and (b) to issue final regulations with such modifications to the proposal as the Administrator deems appropriate and to make revised standards effective after such period as the Administrator finds necessary to permit th e development and application or requisite technology , giving appropriate consideration to the cost of compliance within such period , we are including an exception provision in the regulations that permits any aircraft engine manufacturer to produce and e nter into commerce up to six newly manufactured engines with a date of manufacture , as defined in the regulations, prior to August 3 1, 2013 that are not certificated to meet Tier 6 emission requirements . These engines must have a t ype certificate which in dicates that they

meet the 40 CFR 87 requirements last updated on October 30 , 2009 (i.e., Tier 4) . No formal exemption request or approval will be required for these six engines. T hese engines will be reported to EPA as part of the annual reporting requirement as described above for exempt engines. We know of no other engine manufacturer that is in this situation today , (i.e., contracted deliveries of engines not meeting the production cut - off within se veral months of the production cut - off date). However, as a matter of equity and to address situations which we may not be informed of at this time, we are extending this transitional flexibility to all manufacturers.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 104 of 206 c. Voluntary Emission Offsets W e requested comment on establishing a voluntary EPA program by which manufacturers could receive emission credits for producing cleaner engines, which they could use to offset higher emissions from exempted engines. An example of such a program was summar ized in a memorandum to the docket . 107 The ty pes of programs we were considering would be developed, promulgated, and administered by EPA. As described in the proposal and summarized here, w e expect ed manufacturers to be interested in generating offsets f or one of three purposes. First, manufacturers might choose to generate offsets as part of their justifications for exemptions. Second, manufacturers might choose to generate offsets as part of a justification for being allowed to exceed the numerical li mit that FAA and EPA are willing to approve in an exemption request . Third , provided a provision was promulgated to allow this, a manufacturer might also be interested in generating offsets to bank for use for exemptions of engines to be produced after the credit generating engines are produced, or possibly against a future production cutoff . Under th e proposed approach, generation of offsets would be voluntary and would be open to all certify ing engine manufacturers. One concept was to allow c redits to be generated only from engine models that are introduced after this rule and that had characteristic level s

107 U.S. EPA, “Draft Regulatory Text for Voluntary Offset Program,” Memorandum from Charles Moulis, Assessment and Standards Division, Office of Air Quality and Transportation, June 2011. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 105 of 206 significantl y below the otherwise applicable standard (e.g., at least 10 percent belo w) . There was a separate question, however, regarding how to calculate the credit. If we adopted, for example, a 10 percent threshold for eligibility , we would probably also allow credits only

to the degree which the NOx characteristic level was more tha n 10 percent below the standard. This would ensure a net improvement in emissions. Also , we could reserve the right to restrict the use of credits so that they

were used in a manner that ensured there was no net adverse impact on air quality . Such a pro gram would need to ensure that emission benefits from one aircraft model truly offset the higher emissions from another model. Equivalency factors could be developed to account for differences in the number of LTOs per y ear and the lifetime of the aircraf t . We received a number of comments on the possibility of implementing a voluntary credit offset program. The ATA expressed significant doubt that EPA had the legal authority to adopt a voluntary

emissions offset program. They argued that the standard setting authorit y under section 231 of the CAA does not appear to provide such authorit y. ATA f urther stated that where offsets or emissions trading scheme s exist for other source categories, the authorit y is express. E xamples cited were the CAA authorit y for the trading program under the acid rain program, and the Energy

I ndependence and Security Act authorization for the offset program used under the Corporate Average Fuel Efficiency Standards. Pratt & Whitney provided comments very similar to ATA relative to the lack of EPA’s legal authorit y to create such a program.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 106 of 206 The ATA also commented that the voluntary offset program embodied in the proposal would be unworkable in the context of aviation. They noted that unlike car s or trucks, aircraft engine manufacturers have relativel y low production volumes and few frequently updated models for generating credits. Also, some manufacturers have more models than others and this could possibly

lead to competitive distortions in the market. The AI A and GAMA also raised concerns regarding potential market disruptions. Further, ATA argued that opportunities for generating offsets would be limited by the proposal’s high thresholds for generating those credits. In the context of using emission credits for exemptions ATA added that each situation would be unique and it would not be possible to match exemptions to credits, or to assess the further complexities of the “equivalency factors” described in the proposal. Finally , they stated that an airline’s delivery

sched ule would be held hostage to the manufacturer’s ability to justify credits based on some other engine that the airline is not buying. For these reasons, ATA asked that no offset program be adopted. Pratt & Whitney

stated that the EPA proposal assumes th at an offset program would create an incentive for manufacturers to build lower - emissions engines. On the contrary they argued, manufacturers alread y have that incentive because using the lowest - emitting technology that is available maximizes the life of the engine. Such a program would simply create a windfall to manufacturers whose produc t lines are alread y capable of generating credits. The AI A , GAMA , and GE jointly commented that the proposed emission offset program goes bey ond the borders of CAEP, an d an y emissions offset program should be developed withinDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 107 of 206 ICAO. G eneral E lectric was interested in exploring a potential emission offset program , particularl y if the program would be applicable to new engine designs and derivatives that are subject to the proposed Tier 8 standards, and if it created the incentive to adopt new technologies earlier than would otherwise be the case in the absence of such incentives. We appreciate the concerns raised b y the commenters regarding the proposed voluntary offset em ission program. We are also encouraged by GE’s interest in further discussions about how this program may

be useful in the context of the Tier 8 standards and a possible future Tier 8 production cutoff. EPA agrees that the proposal needs to be further dev eloped to address certain aspects of the offset program. We have determined that the time it would take to sufficiently

develop the program is incompatible with the need to promptly promulgate the Tier 6 production cutoff standard with a near - term effecti ve date of January 1, 2013. Therefore we are not including the voluntary emission offset program in the final rule at this time. Nonetheless, we continue to see value in such a program for the aviation industry and recommend continuing to consider such a r egulatory flexibility

in the future. Although we are deferring action on the proposed voluntary emission offset program for the time being, we believe that such programs are envisioned within the ETM language related to exemptions. Furthermore, we do not agree with the commenters who questioned the EPA's l egal auth ority for adopting a voluntary

emissions offset program as part of the aircraft engine emission standards. W e are somewhat surprised by the industry commenters who questioned theDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 108 of 206 authority for averaging, banking, and trading ( ABT ) programs outside of the narrow examples cited in their com ments, and we are not yet persua ded by their claims. Note that the U.S. Court of Appeals for the D.C. Circuit has clearl y stated that EPA has substantial discre tion under the CAA section 231 to adopt final aircraft emission standards as the agency deems appropriate (National Ass’n of Clean Air Agencies v. EPA 489 F.3d 1221 (D.C. Cir. 2007)) . We also wonder to what extent their view represents the industry as a w hole, including an y aircraft engine manufacturers who also manufacture engines that are subject to other EPA regulations that provide for ABT without the “express” statutory authority the commenters claim is necessary . If in future actions we seek additio nal comments on the legality of ABT programs under our aircraft standards, we will be interested in receiving comments from other stakeholders in the mobile source arena who might have views regarding the arguments presented by the industry commenters abov e. In the meantime, we note that several of our mobile source regulations, in addition to the rule cited b y industry

commenters, have long provided regulated industry with the flexibilities inherent in an ABT program, under the authority of, for example CAA section 213, and none of those subject industrie s have opposed the creation of such programs or questioned their legal basis. ( See, e.g., 40 C.F.R. part 89, subpart C (averaging, banking and trading provisions for nonroad compression - ignition engines) ; 40 C.F.R. part 90, subpart C (certification averaging, banking and trading provisions for nonroad spark - ignition engines at or below 19 kilowatts); 40 C.F.R. part 91, subpart C (averaging, banking and trading provisions for marine spark - ig nitionDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 109 of 2 06 engines) ; 40 C.F.R. part 92, subpart D (certification averaging, banking and trading provisions for locomotives and locomotive engines); 40 C.F.R. part 94, subpart D (certification averaging, banking and trading provisions for marine compression - ignition engines). ) EPA continues to believe that the legal basis of these ABT programs is sound. 4 . Potential Phase - Inof New Tier 8 NOx Standards for Newl y - Manufactured Engines We did not propose a production cutoff for the Tier 8 NOx standards for newly manufactured en gines. This means that engine manufacturers may continue to produce Tier 6 compliant engines of previously certified models after the Tier 8 standards become effective for newly - certified engine models. As noted elsewhere, EPA is working within the I CAO/ CAEP framework to develop harmonized international standards for aircraft turbine engines. At the February 2010 meeting of CAEP, where the CAEP/8 NOx standards were approved for recommendation to ICAO , the committee decided that further consider ation coul d be given to a related newly - manufactured engine standard pending new information on technology and market responses , although no formal action was taken at the time to explicitly make this a future work item for CAEP . 108 Assuming a CAEP/8 production cuto ff is adopted at some time in the future, we will re examine the permanent exemption provisions to ensure a timel y and orderly phase - out of engine

108 I CAO, “Committee on Aviation Environmental Protection (CAEP), Report of the Eighth Meeting, Montreal, February 1 - 12, 2010,” CAEP/8 - WP - 80. A copy of this document is in docket n umber EPA - HQ - OAR 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 110 of 206 models that do not meet the CAEP/8 NOx standards. We would expect this to be done through a notice and comment rulemaking process to amend our own regulations . C. Application of Standards for Derivative Engines I t is very common for a manufacturer to make c hanges to an originall y t yp e certificated engine model that is in production while keeping the same basic engine core and combustor design. In some cases these modifications may affect emissions. As a resu lt, the certificating authority (in our case the FAA) must decide whether the emission characteristics of the modified design were significant enough from the parent engine’s certification basis that a demonstration of compliance with more recent emission standards is necessary , or if the changes were mi nor relative to the parent engine’s emission certification basis so that it is considered a derivative version of the original model with no emissions changes. This may be further complicated because of the common practice of making iterative changes over time raises the question as to when the cumulative changes reach a point where a new demonstration of compliance is warranted. In the past, these determinations were made for turbofan engines by an engineering evaluation that was performed by the engine manufacturer and then review ed by the FAA. As part of the ICAO/CAEP deliberations leading up to the February 2010 CAEP/8 meeting, a new standardized guidance was agreed upon as described in the ETM . The guidance, which the U.S. fully supported, includ e s specific criteria that can be used to determine when a designDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 111 of 206 modification require s a new demonstration of compliance with newer emission standards , or when a modification was simple enough to be considered a no emissions change . W e are including the ETM requirements in our regulations to address the longstanding need to provide consistent standards for the decision process regarding derivative engines and applicable emission standards. The definition of “derivative engines for emissions certification purposes,” along with the criteria for making this determination, will provide engine manufacturers and the regulators with more certainty regarding emission standard requirements for future modifications made to certificated models. To ensure that the numerical decision criteria can be administered to allow for the consideration of unusual circumstances or special information, we are also providing the FAA wi th some flexibility to make adjustments to the specific criteria based on good engineering judgme nt. In summary , if the FAA determine s that an engine model is sufficiently similar to its parent engine so as to m eet the criteria established in part 87.48 , the manufacturer may demonstrate certification compliance and continue production of the engine m odel to the same extent as allowed for the original engine model. However, if the FAA determines that an engine model is not a derivative for emission certification purposes, the manufacturer would be required to demonstrate compliance with the most recent emissions standards. This determination will be made using numerical criteria consistent with I CAO provisions, and a modified engine model can be considered a “derivative” only if it is: 1) derived from an original engine that had receive d a U.S. certification, 2) the original engine was certified under title 14 of the CFR , and 3) one of the following conditions is met:Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 112 of 206 (1) The FAA determined that a safet y issue exists that requires an engine modification; or (2) Emissions from the deriv ative engines are equivalent to or lower than the original engine. The proposed rule provided that the engine manufacturer could show emissions equivalency

by demonstrat ing that the difference between emission rates of a derivative engine and the original engine are within the following allowable ranges , unless otherwise adjusted using good engineering judgment as determined by the FAA : ± 3.0 g/kN for NOx. ± 1.0 g/kN for HC. ± 5.0 g/kN for CO. ± 2.0 SN for smoke. The proposed rule also provided that engine models represented b y characteristic levels at least five percent below all applicable standards would be allowed to demonstrate equivalency by engineering anal ys is. In all other cases, the manufacturer would be required to test the new engine mod el to show that its emissions met the equivalency criteria. We received three significant comments on the proposed derivative provisions. First, ATA, PW, and Dassault - Aviation (DA) pointed out that the proposed criteria contained aDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 113 of 206 substantial deviation from the expressed intent of the proposal and the ETM guidance. Specificall y, they noted that the ETM provides that “If a modified engine remains on the existing ty pe certificate, it may

retain the existing certification basis of the parent engine if the modification(s) ...results in a decrease of the absolute emissions levels....” They pointed out, however , that the proposed rule provide d that the certificate holder must demonstrate “...the proposed derivative engine model’s emissions meet the applicable stan dards and differ from the original model’s emission rates onl y within...” specified ranges for each pollutant. For example, the specified range is + or

– 3 g/kN for NOx . The commenters stated that this is more stringent than the ETM, and could discourage cleaner engines that are not clean enough to meet the next tier of standards. The y asked that the final rule be consistent with the ETM to prevent this untoward effect. W e agree that the regulations should allow for such engines t o be considered derivatives, even if the difference was outside the “no emission change ” range. This allowance is clearl y consistent with the ETM and was inadvertentl y left out of our proposed language. Therefore, the final regulations contain this allowan ce. Second, AIA and GAMA jointly commented that the term “new model” was inappropriate when used to determin e which engine models could demonstrate equivalency by engineering anal ys is , and when the manufacturer would be required to test the new engine mode l to demonstrate compliance with the equivalency criteria. They

argued that because thisDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 114 of 206 provision applies to changes made to an existing engine , it could cause an engine manufacturer to conduct an additional emissions test in cases where a very small change was made to the engine due to a performance or engine weight change. The commenters recommend ed that this be altered to allow a manufacturer to consider “...such emissions changes by anal ys is prior to this point, and only

if such anal ys is revealed a dete rioration that pushed the engine very close to the emission limits that the manufacturer be requested to complete an engine emissions test.” The AI A and GAMA also jointly commented on the proposed regulatory text that states if the characteristic level of the original certificated engine model before modification is at or above 95 percent of the applicable standard for any pollutant, you must measure the proposed derivative engine model’s emissions for all pollutants to demonstrate the derivative engine ’ s r esulting characteristic levels will not exceed the applicable emission standards. The y cl aimed that the use of the term “ yo u must measure” also implies further engine testing when additional anal ys is may

likel y prove sufficient. We agree that the term “n ew model” should be modified and have instead used the term “new engine configuration” in the final regulations. We want to clarify , however, that th e regulations do explicitly

require engine testing when an original engine’s emission s are with in 5 percen t of any

emission standard. This text does not allow engineering analy sis in such cases . We continue to believe this to be the appropriate policy . Given the greater uncertaint y of engineering anal ys is relative to actual testing, we cannot rel y on it for engines very close to theDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 115 of 206 standard. This provision is also consistent with the ETM. There fore, we are promulgating this requirement as proposed. Third, AIA, GAMA, and GE commented that as a general matter, EPA should not codify the ETM’s derivative engine decision criteria because the E TM guidance will evolve over time and the Agency ’s rigid r egulations will not, even allowing for the FAA flexibility to use good engineering judgment if necessary when deciding what is or is not a derivative engine. They concluded it was simply

better to let the FAA rel y on the ETM guidance in its decision makin g. As noted by

the commenters, the ICAO ETM itself is a guidance document for use by aviation authorities. It does not represent a standard or any other enforceable regulatory requirement. In the particular case cited by the commenters, they

appear to a sk that FAA be given unlimited discretion to determine which engines are subject to each new tier of standards. In response to the comment, we also note that the Clean Air Act directs EPA to establish air pollution emission standards for aircraft engines . (See 42 U.S.C. 7551 (a)(2)(A).) Implementation of this statutory directive mandates that we specify enforceable air pollution emission standards and control requirements for aircraft engines in regulatory form . We believe that it is reasonable for us t o also establish other associated requirements in regulatory form. Our final rule achieves an appropriate balance between providing FAA discretion to implement the standards, and the need to establish aircraft engine emission regulations that ensure consi stency in application.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 116 of 206 We also disagree with the suggestion that the ETM will evolve over time, but th at our regulations will not. As a working member of ICAO’s Committee on Aviation Environmental Protection, we will participate in developing an y relevant revisions to the ETM and will make appropriate adjustments to our regulations as needed. We continue to believe that the ETM specifications for “no emissions change” are appropriate objective criteria for derivative engines. Thus, because we are codif y ing regulatory provisions to objectively

specify when engines are considered to be “derivative engines”, we are promulgating regulatory

provisions consistent with the I CAO ETM guidance. D. Annual Reporting Requirements In May of 1980, ICAO’s Committee o n Aircraft Engine Emissions (CAEE) recognized that certain information relating to environmental aspects of aviation should be organized into one document. This document became IC AO’s “Annex 16 to the Convention on International Civil Aviation, Internatio nal Standards and Recommended Practices, Environmental Protection” and was split into two volumes

– Volume I addressing Aircraft Noise topics and Volume II addressing Aircraft Engine Emissions. Annex 16 has continued to grow and today Annex 16 , Volume II includes a list of mandatory requirements to be satisfied in order for an aircraft engine to meet the I CAO emission standards . 109 These requirements include information relating to

109 ICAO, “ Annex 16 to the Convention on International Civil Aviation, Environmental Protection, Volume II, Aircraft Engine Emissions , ” Part III, Chapter 2, Section 2.4 . A copy of this document is in docket number EPA HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 117 of 206 engine identification and characteristics, fuel usage, data from engine test ing, data anal ys is, and the results derived from the test data. Additionally, this list of aircraft engine requirements is supplemented with voluntarily reported information which has been assembled into an electronic spreadsheet entitled “Emissions Datab ank” (EDB) 110 for turbofan engines with maximum thrust ratings greater than 26.7 kN in order to aid with emission calculations and anal ys is as well as help inform the general public. In order to understand how current gaseous emission standards are affecting the current fleet, we need to have access to timely , representative emissions data of the engine fleet at the requisite model level. The EDB is a useful tool for providing a general overview of the aircraft fleet, as it contains information on e ngine exhaust emissions and performance tests . H owever, it is not updated on a consistent basis, it contains a varying amount of voluntarily reported data from each manufacturer, and it does not specifically list every engine sub - model . 111 Italso does not contain information on smaller thrust category turbofans or turboprops, and contains no information on past or recent engine production volumes. We need this data to conduct accurate emission inventories and develop appropriate policy. Accordingl y, we d o not consider the EDB to be a sufficient tool upon which to base policy decisions or adopt future standards.

110 United Kingdom, Civil Aviation Authority, “ICAO Emissions Databank.” Available at the Civil Aviation Authority website www.caa.co.uk/default.aspx?catid=702 .

111 Under today’s regulations, a grouping of engines with an essentially identical em ission - related design are defined to be an “e ngine sub - model ”. Engines with slightly different design s are defined to be an “engine mo del”.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 118 of 206 Furthermore, in the context of EPA ’s standards - setting role under the Clean Air Act with regard to aircraft engine emission s , it is consistent wi th our policy and practice to ask for timely and reasonable reporting of emission certification testing and other information that is relevant to our mission . Under the Clean Air Act, we are authorized to require manufacturers to establish and maintain nec essary

records, make reports, and provide such other information as we may reasonabl y require to discharge our functions under the Act. ( See 42 U.S.C. § 7414(a)(1). ) T herefore, we propos ed to require that each aircraft engine manufacturer submit a product ion report directly to EPA 112 with specific information for each individual engine sub model that: 1) is designed to propel subsonic aircraft, 2) is subject to our exhaust emission standards, and 3) has received a U.S. t ype certificate. More specifically, the scope of the proposed production report would include turbofan engines as described above with maximum rated thrusts greater than 26.7 kN, i.e., those subject to gaseous emission and smoke standards. In addition, it would include turbofans with maximum rated thrusts less than or equal to 26.7 kN and all turboprop engines, i.e., those only subject to smoke standards. We also propos ed that this specific exhaust emission related information be reported to us in a timely manner , which will allow us to con duct proper emissions inventory analy ses of the existing fleet and to ensure that any public policy

we create based on this information will be well informed. A ll of the specific reporting items we propos ed were the same as requested for the EDB, with the exception of total

112 The report w ould be submitted only to EPA. No separate submission or communication of any kind is required for the FAA.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 119 of 206 annual engine production volumes, information on ty pe certificates, and the emission standards to which the engine sub - model was certified . We anticipated that the new emissions database would be a significant improvement over the curr ent EDB because the data reporting is mandatory , it will be comprehensive in that it covers all engine models, and it must be updated annually . In addition to some minor comments which are addressed in the analy sis of c omments document, we received comment s from engine manufacturers addressing two specific areas of the proposed production reporting provision. First, the Aerospace Industries Association (AIA), General Aviation Manufacturers Association (GAMA) and Pratt & Whitney (PW) commented that annual production volume data is considered confidential business information (CBI) and as such, it should be exempt from Freedom of Information Act (FOIA) requests or other methods of public disclosure. Second, AI A, GAMA, PW and Williams In ternational pointed out that for those engines which are only subject to smoke standards (turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops), manufacturers are not required under current regulations to measure gaseous em issions (HC, CO, NOx, CO 2 ). As such, data on these gaseous emissions, as well as information used to measure gaseous emissions (reference pressure ratio and fuel flow data) are not readily available for these engines. Further, smoke data by mode of the L TO cy cle may

not be available for these older engines. These manufacturers pointed out that new testing of such engines would be required to generate these data, and that appropriate test procedures for these engines do not currently exist.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 120 of 206 We understand and respect the needs of manufacturers to maintain the confidentiality of their legitimatel y proprietary data. However, we do not include in our regulations an up - front blanket CBI determination for an y of the other mobile source sectors, and do not belie ve it is necessary here. As such, in response to the comments, we are including regulatory language patterned after existing regulations for several other mobile source categories which sets forth how we would treat

– on a case b y case basis

– submitted d ata which is covered b y a CBI claim from the manufacturer as provided b y 40 CFR part 2. The addition of this provision will ensure that no information that is legitimatel y protected CBI gets inadvertently released to the public. We do not believe it is ap propriate to require additional testing for turbofans with maximum thrust ratings less than or equal to 26.7 kN and turboprops specifically for production reporting purposes. Thus, for these engines, we will not be requiring the submission of HC, CO, NOx, CO 2 , reference pressure ratio or fuel rate data. Further, we will not require additional testing of older engine s for which smoke data b y s pecific LTO cy cle segment is not currently available. We also noted in the proposal that the reported information w ould be used in conjunction with the NOx and CO 2 emission data alread y required to be submitted to us under section 87.64 for purposes of greenhouse gas (GHG) reporting to establish . This would effectivel y provide us with a complete and comprehensive engin e exhaust emissions database. We noted our expect ation that most manufacturers would likel y add the proposed information items to theDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 121 of 206 annual GHG report. No comments were received on combining the two reports. After further deliberation, we have decided to require a single, integrated report in this final rule to eliminate any possible confusion regarding the two separate reports and make reporting more efficient. The incremental reporting elements for each affected gas turbine engine sub - model are lis ted below. Although not proposed, we have added engine t ype to the list for completeness. The reporting elements of the existing GHG report are also identified for completeness.

• Company corporate name as listed on the engine ty pe certificate (GHG);

• Engine T yp e (turbofan, mixed turbofan, or turboprop)

• Calendar y ear for which reporting (GHG);

• Complete sub - model name ( This will generally include the model name and the sub model identifier, but may also include an engine t ype certificate family identifier ) (GHG);

• The ty pe certificate number, as issued by the FAA ( Specify if the sub - model also has a ty pe certificate issued by

a certifi cating authorit y other than the FAA) (GHG);

• Date of issue of t yp e certificate and/or exemption, i.e. month and y ear (GHG);

• Emission standards to which the engine is certified, i.e. , the specific Annex 16, Volume II, edit ion number and publication date in which the numerical standards first appeared.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 122 of 206 • If this is a derivative engine for emissions certificati on purposes , identify the original certificated engine model.

• Engine sub - model that received the original t ype certificate for the engine type certificate famil y ;

• P roduction volume of the sub - model for the previous calendar ye ar (even if zero). If an engine sub - model is no longer being produced, state that the engine sub - model is not in production and list the date of manufacture (month and y ear) of the last engine produced;

• Regarding the above production volume report, specify ( if known) the numb er of engines that are intended for use on new aircraft and the number intended for use as certified (non - exempt) spare engines on in - use aircraft;

• Reference pressure r atio (GHG) (not applicable to turbofans with maximum thrust ratings less than or equa l to 26.7 kN, and turboprops);

• Combustor d escription (ty pe of combustor where more than one t yp e available on an engine) ;

• Engine maximum rated thrust output, in kilo n ewtons (kN) ) or kilowatts (kW) (depending on engine t yp e) (GHG);Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 123 of 206 • Unburned h ydrocarbon (HC) mass (g) total (weighted) and over each segment of the Landing and Take - off C ycle (LTO), i.e. Take - off, Climb, Approach, Taxi/Ground Idle (not applicable to turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops ); 113

• Unburned h ydrocarbon (HC) characteristic level (i.e. mass of h ydrocarbons over LTO cy cle/Rated Thrus t (Dp/Foo)) (not applicable to turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops); 114

• Carbon m onoxide (CO) mass ( g) total (weighted) and over each segment of the entire Landing and Take - off C ycle (LTO) (i.e. Take - off, Climb, Approach, Taxi/Ground Idle) (not applicable to turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops);

• Carbon m onoxide (CO) characteristic level (i.e. mass of CO over LTO cycle/Rated Thrust (Dp/Foo)) (not applicable to turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops);

• Nitrogen o xides (NOx) mass (g) total (weighted) and o ver ea ch segment of the entire Landing and T ake - off C ycle (LTO) (i.e. Take - off, Climb, Approach, Taxi/ Ground Idle) (GHG)

113 See Regulation Part 87 - Control of Air Pollution from Aircraft and Aircraft Engines , Subpart E , §87.42 Production report to EPA for definitions.

114 Dp/Foo : total gross emissions of each gaseous pollutant (mass) / rated thrust (g/kN).Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 124 of 206 (not applicable to turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops);

• Nitrogen o xides (NOx) characteris tic level (i.e. mass of NOx over LTO cy cle/Rated Thrust (Dp/Foo)) (GHG) (not applicable to turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops);

• Smoke number total and over each segment of the entire Landing and Take - off Cy cle (L TO) (i.e. Take - off, Climb, Approach, Taxi/Ground I dle) , if available ;

• Smoke number characteristic level;

• Carbon d ioxide (CO 2 ) mass (g) total (weighted) and over each segment of the entire L anding and Take - off C ycle (LTO), ( i.e. Take - off, Climb, Approach, Taxi/Ground Idle (GHG)) (not applicable to turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops);

• Number of tests run per sub - model (GHG);

• Number of engines tested per sub - model (GHG);

• Fuel flow (grams / second) total (weighted) and over each segment of the Landing and Take - off Cy cle (LTO) (i.e. Take - off, Climb, Approach, Taxi/Ground Idle) (GHG) (notDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 125 of 206 applicable to turbofans with maximum thrust ratings less than or equal to 26.7 kN, and turboprops); and

• Any a dditional r emarks to the EPA . The annual report is required to be submitted for each calendar ye ar in which a manufacturer produces any engine subject to emission standards as previously described. These reports will be due by

February 28 of each ye ar, starting with the 2014 calendar year, and cover the previous calendar ye ar. This report shall be sent to the Designated EPA Program Officer. Where information provided for an y previous y ear remains valid and complete, the engine manufacturer may

re port the production figures and state that there are no changes instead of resubmitting the original information . To facilitate and standardize reporting , we expect to specify a particular format for this reporting in the form of a spreadsheet or database template that we provide to each manufacturer. As noted previously , we inten d to use the report s to help inform an y policy approaches regarding aircraft engine emissions that we consider , including possible future emissions standards . The information will also enhance the general public’s understanding of the emission characteristics of aviation gas turbine engines and allow independent development of emission inventories and assessments of local environmental effects. Subject to the applicable requirements of 42 U.S.C. 7414(c), 18 U.S.C. 1905, and 40 CF R part 2, all data received by the Administrator that is not confidential business information may be posted on our websit e and will be updated annually . We have assessed the potentialDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 126 of 206 reporting burden associated with this annual reporting requirement. That assessment is presented in section s V . and IX.B of this notice. E. Standards for Supersonic Aircraft Turbine Engines We pro posed CO and NOx emission standards for turbine engines that are used to propel aircraft at sustained supersonic speeds, i.e., supersonic aircraft to complement our existing HC standard for these engines. These standards were originall y adopted b y I CAO in the 1980s , and our adoption of NOx and CO standards for commercial engines in 1997 omitted coverage of the se pollutants for supersonic commercial engines that were then in use. The lack of EPA CO and NOx standards for engines used b y supersonic air craft has had no practical effect, because no such engines have been certified b y the FAA. Also, none of the engines used on these aircraft are currentl y in production . The Aerospace Industries Association (AIA) and the General Aviation Manufacturers Association (GAMA) commented that within CAEP it was agreed that these standards are “not appropriate fo r future products” and should not be adopted by EPA. 115 However, to meet U.S. treat y obligations under the Convention on International Civil Aviation as previously described in section I . C, we believe it is necessary and appropriate to adopt these conformin g standards. 115 The CAEP position referred to by AIA and GAMA is based on the expectation that future designs for supersonic a ircraft will be significantly different from past designs. The agreement was reached at CAEP/8 to evaluate emission standards for these engines as a future work item.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 127 of 206 Therefore, we are promulgating the standards for supersonic aircraft as proposed. As previousl y noted, this action has no practical effect, and simply aligns EPA standards with the rest of the world. (See section III.G for a brief discussio n of potential revised emission standards for future engine designs that may

be used on supersonic aircraft.) F . Amendments to Test and Measurement Procedures We are incorporat ing by

reference into the 40 CFR § 87.6 0 regulatory text, amendments to I CAO’s International Standards and Recommended Practices for aircraft engine emissions testing and certification. 116 , 117 , 118 These amendments to Annex 16, Volume II are primarily intended to ensure that the provisions reflect current certification practices. The amendments make clarifications or add flexibilities for engine manufacturers. They are described below. • Standardizing the terminology relating to engine thrust/power

116 A strikeout and highlighted version of the amendments is contained in Attachment A to I CAO state letter AN 1/61.2, AN 1/62.2 - 07/32 entitled, “Proposed Amendment to International Standards and Recommended Practices, Environmental Protection, Annex 16 to the Convention on International Civil Aviation, Volume II Aircraft Engine Emissions, May 27, 2007. A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.

117 ICAO, “International Standards and Recommended Practices, Annex 16 to the Convention on International Civil Aviation, Environmental Protection, Volume II Aircraft Engine Emissi ons,” Third Edition, July 2008, International Civil Aviation Organization. This document contains the full text of ICAO standards and practices and is in docket number EPA - HQ - OAR - 2010 - 0687.

118 ICAO, “International Standards and Recommended Practices, Annex 16 to the Convention on International Civil Aviation, Environmental Protection, Volume II Aircraft Engine Emissions, Amendment 7, effective July 18, 2011” Third . A copy of this document is in docket number EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 128 of 206 • Clarify ing the need to correct measured results to standard reference day and ref erence engine conditions • Allowing a certificating authorit y to approve the use of test fuels other than those specified during certification testing • Allowing materials other than stainless steel in the sample collection equipment • Clarify ing the a

ppropriate value of fuel flow to be used at each LTO test point • Clarify ing exhaust nozzle terminology for exhaust emissions sampling • Allowing an equivalent procedure for gaseous emission and smoke measurement if approved by

the certificating authori ty Manufacturers are either alread y voluntarily comply ing with these changes or will be even in the absence of a final rule. Our adoption of these test procedure amendments is, therefore , un likel y to require new action by manufacturers bey ond what they h ave already done to meet I CAO’s adopted and recommended amendments. Our incorporation by

reference of the IC AO test procedure makes most of the existing subpart G and all of subpart H of part 87 obsolete. Therefore, we are removing these sections from the regulation, as proposed.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 129 of 206 G . Possible Future Revisions to Emission Standards for New Technology Turbine Engines and Supersonic Aircraft Turbine Engines As a general matter, emission standards not only apply to all conventional turbofan aircraft engines greater than 26.7 kN, but also to all aircraft engines designed for applications that otherwise would have been fulfilled by turbofan aircraft engines. The high price of jet fuel, current emphasis on fuel econom y, and need to reduce emissions have renewed interest in open rotor propulsion designs for future aircraft gas turbine engines. Essentiall y, the fan of an open rotor engine is not contained within an engine nacelle as it is with a conventional turbofan engine. This design has also been referred to as an unducted fan, propfan, or ultra - high by pass engine. At least two engine manufacturers are actively pursuing such designs for certification in the later part of this decade . It now appears that certain aspects of EPA’s gas turbine engine emission st andards may be incompatible with these new designs. For example, the current landing and takeoff cy cle for emissions certification is based on conventional engine designs where a significant amount of thrust is generated b y an idling engine. Specifically , idle emissions are measured and calculated at seven percent of the engine’s rated thrust. However, the fan/prop blades of an open rotor engine may

be variable in pitch and this may allow the blades to be “feathered” at idle. In that position, the blade s are rotated so very little thrust is generated as the engine idles and generates emissions. Also, future aircraft using these engine designs may fly at somewhat slower speeds.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 130 of 206 This might affect the time these aircraft spend during the climbout mode of the landing and takeoff cy cle. Therefore, the traditional landing and takeoff cy cle used in turb ofan engine emissions certification may need to be revised in the future to accommodate open rotor engines. We will be working within CAEP to evaluate the di fferences between conventional turbine engine and open rotor engine technologies, and to revise the emission standards and test procedures as appropriate for these latter engines. If an y changes are required, EPA will undertake rulemaking to revise our re gulations accordingl y. There may

also be changes in the emission standards and test procedures for engines used to power future supersonic transport aircraft designs. The emission standards for these engines were originally

developed in the earl y 1970s in response to the Aerospatiale - BAC Concorde. Since that time, there have been vary ing levels of interest in developing a new generation of supersonic transport. As a result, the current CAEP work program is evaluating the status of supersonic aircraft eng ine development and the potential need for new emission standards and test procedures. 119 Our recent discussions with engine manufacturers indicate that no substantive work is being undertaken at this time, however. We will continue to work within

119 The CAEP Working Group 3 has taken the position that engine development programs for future supersonic aircraft applications should be focused on achieving the emission standards that are applicable to subsonic aircraft engines. Past supersonic aircraft e ngines required the use of afterburner technology to achieve supersonic speeds. Future supersonic aircraft are expected to use engines without that technology, making them mo re similar to their subsonic counterparts.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 131 of 206 CAEP on this issue and undertake rulemaking to revise the regulations for supersonic aircraft engines as appropriate. IV . Description of Other Revisions to the Regulatory Text In addition to the changes discussed above, we are including a number of other changes to the regulatory

program. Most of these changes are designed to bring the program into conformity

with current technology

and current technical or policy practice. Each of these is discussed below. A. Applicability

I ssues This section discus ses how this final rule relates to engines used in military and noncommercial civilian aircraft . We do not believe these changes will have practical significance for current engine models because the changes align with manufacturers’ current practice in c ertify ing their engines. 1. Military

Engines We do not intend today ’s action to have an y impact on engines installed on military aircraft , or new aircraft that are destined to be converted for military use . Military

aircraft are not required to have F AA standard airworthiness certificates , and our 1997 endangerment finding for NOx and CO emissions and resulting standards did not cover military aircraft (see 62 FR at 25359). As such, engines used in military aircraft are not required to meet EPA emissi onDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 132 of 206 standards, since our current regulations define “aircraft” subject to our rules as an y airplane for which a U.S. standard airworthiness certificate (or foreign equivalent) is issued. (See 40 C.F.R. § 87.1(a) of the existing regulations.) Currentl y, manufacturers certificate some engine models used in military

aircraft with the FAA (with respect to emissions), because these engine models also have commercial applications and have to be certificated for such use. Our new standards and requirements w ill continue to apply onl y to engines used in aircraft for which standard airworthiness certificates are required , and thus are not applicable to engines used in military aircraft. I t is not our intent to interfere with current practice with regard to engine models with joint commercial/military applications to the extent such engines are used in military aircraft. Although civilian aircraft applications of all such engines would be subject to the new standards and production cutoff

, in the NPRM we propos ed t o include a statement in the regulations to clarify that the proposed production cutoff would not apply for previousl y certificated engines that are installed and used in military aircraft. One manufacturer commented that the definition of “military

aircr aft” we proposed should extend to sales of military aircraft outside of the U.S. While we believe the regulations as written do not apply to foreign sales of military aircraft, we are nonetheless revising our proposed definition of “military aircraft” to clarify

that foreign aircraft considered military under international laws and agreements are not covered by 40 CFR part 87. 2. Noncommercial EnginesDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 133 of 206 Prior to this action, section 87.21 (d) specifie d that gaseous emission standards appl ied to engines used in commercial applications with rated thrusts greater than 26.7 kN. These are engines intended for use by an air carrier or a commercial operator as defined in the Chapter I, Title 49 of the United States Code and Title 14 of the Code of Federal Regulatio ns . Therefore, e ngines of equivalent thrust ratings that are used in aircraft certifi cat ed by the FAA that are use d in non - revenue, general aviation service were not required to compl y with our current HC, CO, and NOx exhaust emission standards in §87.21(d). They were and are subject, however, to the current standards for smoke and fuel venting. In today ’s action we are apply ing the gaseous emission standards for commercial engines to their noncommercial civilian counterparts that are required to obtain standard airworthiness certificates. There are a couple of reasons for this action. First, the ICAO Annex 16 , Volume II standards and recommended pr actices appl y equally to commercial and noncommercial engines, and our rules’ previous failure to reflect this meant that our requirements did not fully conform to ICAO’s standards. Second, manufacturers already emissions certify engines that are used in non - revenue, general aviation service to these standards . Therefore, this provision simply incorporates the status quo. In order to make EPA standards conform to I CAO’s, we need ed to , in addition to promulgating the necessary regulatory

amendments, update the underl yi ng finding regarding the need to limit gaseous emissions from commercial and non - commercial civilian aircraft , pursuantDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 134 of 206 to CAA section 231(a)(2)(A) . In 1997, our analy sis and finding, and hence our regulations, were limited to commercial airc raft emissions. (See 62 FR at 25358.) In conjunction with the NPRM for this final rule, we propos ed to expand that analysis and finding to include gaseous emissions from both commercial and non - commercial civilian aircraft engines with rated thrusts greater than 26.7 kN. We received no comments on that proposed finding, and are therefore finalizing our emissions assessment supporting this finding, which is contained in the docket for this rulemaking. 120 B. Non - substantive Revisions We are also taking the opportunity to revisit the clarity

of other regulatory

provisions in part 87. Man y of these provisions were first written 30 or 40 ye ars ago with little or no change since then. We are revising the text related to some of these provisions to better organ ize, clarify , and update the regulations. Our goal is to revise the regulations in part 87 to properl y organize the content of the regulation, use clearer language to describe the applicable requirements, clarify

some definitions, and clear up a variet y o f terms and current practices that have not been adequatel y addressed.

120 U.S. EPA, “ Final Finding for Commer cial and Noncommercial Turbofan and Turbojet Aircraft Em issions,” memorandum from John Mueller , Assessment and Standards Division, Office of Transportation and Air Quality, March 2012. A copy of this document is in docket EPA - HQ - OAR - 2010 - 0687Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 135 of 206 Except as discussed in previous sections, the changes to part 87 are not intended to significantl y change the certification and compliance program. We did not reopen for comment the substance of an y part of the program that remains unchanged substantively. Th is rule includes the following definitions and other minor changes in addition to those changes described earlier in this section or in s ection III . The definition of the term “ aircraft” is being revised to be consistent with its meaning under FAA regulations in 14 CFR 1.1. The existing part 87 definition limits “aircraft” to be onl y those air craft issued an airworthiness certificate. This was done as a way to specify

the appli cability

of the standards. However, this can cause confusion in a variety of way s. For example, this departs from the plain meaning of “aircraft , ” as well as from the meaning given under the Clean Air Act and Title 49 of the United States Code . The revi sed definition aligns with these statutory

definitions. The changed wording is intended to clarify the existing policy without changing it . Text specify ing general applicability is being added to part 87.3 to be consistent with the new definition of “aircraft” and maintain the effective applicability of the existing regulations, which uses narrow definitions to limit applicability. For example, the existing regulation s limit the applicability

of the standards b y defining “aircraft” to onl y include fi xed - wing airplanes with airworthiness certificates. They exclude non - propulsion engines from the definition of “aircraft engine” and turboshaft engines from the definition of “aircraft gas turbine engine . ” We believe itDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 136 of 206 is more appropriate to explicitly exclude these engines in an applicability section than to rely

on readers finding these exclusions in the definitions section. We are also renaming part 87.3 as “General applicability

and requirements” and reorganizing the content for clarity . Finally , w e are replacing the existing regulatory text related to federal preemption for exempted engines in part 87.7(f) with a codification of the statutory preemption language in part 87.3 and an explanatory

note that the statutory

preemption applies to exempted engines because they are certified to prior - tier standards . ICAO Annex 16 , Volume II is being incorporated by reference for test procedures . This involves a broader reference to Annex 16, with less content repeated in part 87. However, this does not subs tantively

change the test procedures that apply since the existing procedures are based directly

on Annex 16 , Volume II . As part of this change, we are adding the ICAO definition of “characteristic level” to properly describe how manufacturers demonstrate that they meet applicable standards. Definitions are being added for “date of introduction , ” “date of manufacture , ” and “derivative engine for emissions certification purposes, ” and the definition of “engine model” is being revised, to more carefull y desc ribe when new emission standards apply to specific aircraft engines. These definitions are generall y consistent with the most common understandings of these terms b y industry and FAA, and with the CAEP / 8 recommendation for adoption by I CAO. Except for en gines subject to exemptions, there will be no more engines required to be certifiedDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 137 of 206 to the standards specified in part 87.21, so c hanging the definition of “engine model” will not change the requirements for engines certified to the Tier 4 or earlier stand ards. For the benefit of the reader, we are also reprinting the following definitions that remain unchanged :

• Aircraft engine • Aircraft gas turbine engine • Class TP • Class TF • Class T3 • Class T8 • Class TSS • Commercial aircraft gas turbine engine • Fuel venting emissions Specific provisions are being added to define and require the use of “good engineering judgment.” This applies for instances where the regulation cannot spell out every technical detail of how a manufacturer should compl y with the regulation. For example, the regulations rely on good engineering judgment being used on the engineering anal ys is of emissions equivalency

for derivative engines (part 87.48(b)(2)), and for appl yi ng the turbofan test procedures to turboprop engin es (part 87.60(a)). The general approach for implementing good engineering judgment is to allow manufacturers to exercise well substantiated and explained technical judgment subject to potential EPA and FAA review (as appropriate). TheDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 138 of 206 consequences of disagreements with a manufacturer’s decision would depend on whether we believe the manufacturer made the decision in good faith. Where the manufacturer makes its decision in good faith, EPA or FAA could require a different approach for fu ture work if we believe it would represent better engineering judgment. We believe these provisions reflect the spirit of the approach being used today to interpret the applicable regulations. Provisions are being added specify ing rounding practices for r ated output, rated pressure ratio, and calculated emission standards; generally specify ing that they

be expressed to at least three significant figures. The primary exception to this is the specification that smoke numbers be expressed to one decimal plac e. These specifications are consistent with how manufacturers are generally

certify ing engines today . Defining how to round these values would prevent manufacturers in the future from effecting small changes in the level of the emission standards to whic h they

certify their engines. This is because standards are calculated using the numerical values of the rated output and rated pressure ratio. Without these specifications, manufacturers could subject themselves to a slightly less stringent standard by selectivel y rounding or truncating an engine model’s rated output to be low and its rated pressure ratio to be high, or b y strategicall y rounding the calculated standard itself. While this has not been an issue in the past, it is important to maintain a l evel play ing field for all manufacturers as standards become more stringent. We do not expect any more engines t yp e - certificated to the standards specified in part 87.21, so the specified procedures for rounding these values will not change the requirements for engines certified to the Tier 4 or earlier standardsDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 139 of 206 Definitions are being added for “turbofan engine , ” “turbojet engine , ” “turboprop engine , ” “turboshaft engine , ” “supersonic , ” and “subsonic” to avoid any uncertainty

about how the standards appl y t o different ty pes of engines. The definitions are intended to reflect the plain meaning of these terms. The regulations include the following additional amendments: Regulation cite Description of

Am endment Notes

87.1 Add definition of

“characteristic level”. The characteristic level is established by ICAO Annex 16 as a means of calculating a statistical adjustment to measured emission results to take into account the level of uncertainty corresponding to the number of tests run for a given pollutant. 87.1 Remove definitions for

“emission measurement system”, “power setting”, “sample system”, “shaft power”, “taxi/idle (in)”, and “taxi/idle (out).” These terms will no longer be used in part 87. There will be no more engines certified to the standards specified in §87.21, so removing these definitions will not change the requirements for engines certified to the Tier 4 or earlier standards.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 140 of 206 87.1 Revise definition of

“exhaust emissions” and “smoke ”. The new language references the emission testing procedures, since that is the practical meaning of these terms in part 87. This clarifies, for example, that emissions from the nozzle of an aircraft or aircraft engine count as exhaust emissions only if they are measured using the specified test procedures. There will be no more engines certified to the standards specified in §87.21, so revising these definitions will not change the requirements for engines certified to the Tier 4 or earlier standards. 87.1 Define “new” instead of

defining “new aircraft turbine engine”. The regulations also refer to new turboprop engines and new engines used for supersonic aircraft, so it is appropriate to define the adjective as it relates to these different kinds of e ngines. This approach does not change the meaning of the applicable terms and therefore has no bearing on the requirements that applied under the standards specified in §87.21. 87.1 Revise the definition of

“standard day condition”: (1) remove the reference to the 1976 U.S. Standard Atmosphere, (2) correct a typographical error in the humidity specification, and (3) change the atmospheric pressure units from Pa to kPa. The editorial changes do not involve any substantive change in the specified cond itions.

87.2 Remove FAA from the

list of acronyms in §87.2 and add it to the set of defined terms in §87.1. This is intended to not involve a change in emission standards or implementation.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 141 of 206 87.3 Add provisions

describing the scope of applicability of part 87. The broad statement in §87.3 is not intended to conflict with the applicability statements in individual subparts, since those additional statements indicate that certain requirements in part 87 apply more narrowly. All applicability statements in the rule are intended to be consistent with current policy. 87.3 Remove the provision

related to preemption of state standards for exempted aircraft and replace it with the preemption provision i n the Clean Air Act. This change more carefully tracks the statutory provisions related to preemption.

87.5 Move the provisions

related to special test procedures to §87.60. This provision, and the similar provision from §87.3(a), should be described toge ther in the context of the testing requirements in subpart G. 87.21 Identify the specific

date when the smoke standard started to apply for turbofan engines with rated output less than 26.7 kilonewtons. This corrects a typographical error from the Federal Register .

87.21 Revise paragraph (f) to

correctly reference the regulatory sections that describe the applicable test procedures. This change is strictly editorial.

87.60 Revise the description

of test procedures to rely broadly on the procedures specif

ied in There will be no more engines certified to the standards specified in §87.21, so any changes to the test procedures will not change the requirements for engines ce rtified to the Tier 4Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 142 of 206 ICAO Annex 16. This includes a variety of recent changes to the Annex 16 procedures. or earlier standards. Moreover, engine manufacturers are expected to perform all their testing based on the current test procedures from ICAO Annex 16, regardless of the standards that apply.

C. Clarify ing Language for Regulatory Text The regulations incorporate the changes described in this preamble. The following table highlights and clarifies several provisions that may not be obvious to the reader.

Regulation cite Note 87.1, Definition of “aircraft” This definition would revert to the normal FAA definition of aircraft, rather than the much narrower current definition in part 87. To understand this change, the definition needs to be considered along with the changes to applicability in 87.3(a). 87.1, Definition of “date of manufacture” This is generally the same definition as given in ICAO Annex 16. However, our definition addresses certain specific circumstances that could possibly occur, but that are not addressed by the Annex. For example, our definition would provid e a date of manufacture for an engine not previously documented by a manufacturer. 87.1, Definition of “ d erivative engine for emissions certification purposes ” Itis important to consider this definition in combination with the definition of “engine type certificate family”.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 143 of 206 87.1 Definition of “ e ngine model” A manufacturer or FAA may further divide an engine model into sub - models. Engines from an engine model must be contained within a single engine type certificate family. Where FAA determines that eng ines are not sufficiently similar to be included under a single type certificate, they will not be considered to be the same engine model for purposes of part 87. 87.1, Definition of “ m ilitary aircraft” and 87.23(d). In §87.23(d) we clarify that the production cutoff does not apply for military aircraft engines (even if they have been certificated). In §87.1, we define military aircraft to primarily mean “aircraft owned by, operated by, or produced for sale to the arm ed forces or other agency of the federal government responsible for national security (including but not limited to the Department of Defense).” For example, a ircraft owned by the U.S. Coast Guard would be military aircraft. In response to comments, we a dded a clarification that military aircraft also include “ other aircraft considered to be military aircraft under international law and conventions .” 87.1, Definition of “ p roduction cutoff date” The production cutoff date for the Tier 6 NOx standards is D ecember 31, 2012. 87.1, Definition of “ s pare engine” Newly manufactured spare engines may be ex ce pt ed under §87.50. 87.1, Definitions of tiers As specified in the definitions of “Tier 0” through “Tier 8”, tiers apply only for NOx standards. Tiers do not apply for HC, CO, and smoke standards because these continue to apply, independent of the NOx standards. 87.23(d)(2) The allowance to continue production of Tier 6 engines after the Tier 8 standards start to apply is not necessary for engines with rated pressure ratio at or above 104.7 because the Tier 6 and Tier 8 standards are numerically identical at these thrust leve ls . 87.42(c)(1) §87.42 requires that a manufacturer report the engines it produces by sub - model. The manufacturer must specify theDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 144 of 206 manufacturer’s unique sub - model name, which will generally include a model name and a sub - model name. It may also include a family name. 87. 50 This provision specifies that EPA must provide written concurrence for exemptions. 87. 50 ( a ) (1 ) (iv)(F) This provision states that manufacturers requesting exemptions should describe equity issues. As an example of equity issues rel ated to an exemption request, a manufacturer might provide a rationale for granting the exemption when another manufacturer has a compliant engine and does not need an exemption, taking into account the implications for operator fleet composition, commonal ity, and related issues in the absence of the engine model in question. 87. 50 ( a ) (6 ) This provision requires manufacturers to promptly notify the FAA if new or changed information could have affected approval of an exemption. For corrections to an exempti on request that would not affect the approval of the exemption, manufacturers ma y include the updated information in the annual report described in §87.50(e).

V. Technical Feasibility , Cost Impacts, Emission Benefits During the CAEP process , the techni cal feasibility and cost of compliance of the CAEP/6 and CAEP/8 NOx standards were thoroughly assessed and documented. 121 , 122 EPA participated

121 CA EP/6 NOx standards: CAEP Forecasting and Economic Analysis Support Group , Economic Analysis of NOx Emissions Stringency Options , CAEP/6 - IP/13 (Information Paper 13), January 15, 2004. A copy of this document is in docket num ber EPA - HQ - OAR - 2010 - 0687. 122 CAE P/8 NOx standards: CAEP Working Group 3, NOx Stringency Technology Response Assessment , CAEP - SG/20082 - WP/18 (Working Paper 18), September 25, 2008. CAEP Forecasting and Economic AnalysisDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 145 of 206 in these anal ys es and supported the results. Generally , CAEP considered certain factors as pertinent to the cost e stimates of a technology level for engine changes, and these factors or technology

levels are described below. The first technology level was regarded as a minor change, and it could include modeling work, minor design changes, and additional testing and re certification of emissions. The second technology level was considered a scaled proven technology . At this level an engine manufacturer applies its best - proven, combustion technology that was alread y certified in at least one other engine ty pe to another engine ty

pe. This second technology

level would include substantial modeling, design, combustion rig testing, modification and testing of development engines, and flight testing. The third technology level was regarded as new technology or current i ndustry best practice, and it was considered where a manufacturer has no proven technology that can be scaled to provide a solution and some technology

acquisition activity

is required. (One or more manufacturers have demonstrated the necessary technology , while the remaining manufacturers would need to acquire the technology to catch up.) Since the effective date for the CAEP/6 NOx standard was January 1, 2008 and nearl y al l in - production engines currentl y meet this standard , we believe this clearl y demonstrates the technical feasibility of those standards. Therefore, we will limit our discussion

Support Group, Economic Assessment of the NOx Stringency Scenarios , CAEP/8 - IP/14, November 30, 2009. Modeling Task Force, MODTF NOx Stringency Assessment , CAEP/8 - IP/13 , December 11, 2009. United States, Aviation Environmental Portfolio Management Tool for Economics (APMT - Economics) and Its Application in the CAEP/8 NOx Stringency Analysis , CAEP/8 - IP/29 , January 6, 2010. A copy of these documents are in docket n umber EPA - HQ - OAR - 2010 - 0687.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 146 of 206 below to apply ing these technology levels to engines that need to compl y with the CAEP/8 NOx standard. At the time of the CAEP re ports, the CAEP/8 NOx standard f or higher thrust engines, i.e., 89.0 kN or more would apply to a total of 15 engine ty pes . For these ty

pes the following technology

level response was anticipated: six ty pes would require no change, one ty pe would need the first technology

level change, five would require the second technology level, and three would need the third technology level. For lower thrust engines, i.e., greater that 26.7 but less than 89.0 kN , CAEP listed a total of 13 engine ty pes in their anal ys is of the CAEP/8 NOx standard. The following technology level response was estimated for these ty pes : 11 ty pes would require no change, 1 ty pe would need the first technology level change, and 1 ty

pe would require a second technology . Based on th e s e anal ys e s, CAEP concluded that the CAEP/8 NOx standards were technically feasible within the lead time and time frame identified in the action . Regarding the costs of this final rule , a ircraft turbofan engines are designed and buil t for use on aircraft that are sold and operated throughout the world. As a result, engine manufacturers respond to this market realit y b y designing and building engines that conform to ICAO international standards and practices. This normal business prac tice means that engine manufacturers are compelled to make the necessary business decisions and investments to maximize their international markets even in the absence of U.S. regulations that would otherwise codify

I CAO standards and practices. Indeed, e ngine manufacturers have developedDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 147 of 206 or are alread y developing improved technology in response to ICAO standards that match the standards being promulgated in this final rule . Also, the recommended practices, e.g., test procedures, needed to demonstrate compliance are being adhered to b y manufacturers during current engine certification tests, or will be even in the absence this final rule. Therefore, EPA believes that today ’s standards and practices that conform with I CAO standards and practices will impos e no real additional burden on engine manufacturers. This finding regarding no incremental burden, is also consistent with past EPA rulemakings that adopted I CAO requirements. ((See 62 FR 25356 (May 8, 1997) and 70 FR 69664 (November 11, 2005)) . In fac t, engine manufacturers have suggested that certain benefits accrue for compliant products when the U.S. adopt s IC AO standards and practices , but have not provided detailed information regarding these benefits . Primarily , such action makes FAA certificati on more straightforward and transparent. That in turn is advantageous when marketing their products to potential customers , because compliance with ICAO standards is an important consideration in purchasing decisions. It simply removes an y question that their engines comply with international requirements . There will be some cost, however, associated with our annual reportin g requirement for emission re lated information. (See s ection III.D for a description of the reports.) There are a total of 10 engine manufacturers that would be affected. Eight of these produce turbofan engines with rated thrusts greater than 26.7 kN, which are alread y voluntarilyDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 148 of 206 reported to the ICAO - related Emissions Databank (EDB) . 123 We expect the incremental reporting burden for these manufacturers to be very small because we: 1) have significantl y reduced the number of reporting elements from those requested in the EDB, and 2) are adding only three basic reporting categories to those already requested by

the EDB. Also, four of the eight manufacturers make smaller turbofan and turboprop engines that will be reporting for the first time. This will ad d a small incremental burden for these four manufacturers that otherwise alread y voluntarily

report to the EDB. There are also two engine manufacturers that onl y produce turbofan engines with rated thrusts less than or equal to 26.7 kN and they will be re porting for the first time. For these two manufacturers we believe that the reporting burden will be small because all of the information we are requir ing should be readily available, and these manufacturers have a very limited number of engine models. We have estimated the annual burden and cost to be about six hours and $365 per manufacturer. With 10 manufacturers submitting reports, the total burden of this reporting requirement is estimated to be 60 hours, for a total cost of $3,646. V I . Coordination with FAA

123 As discussed in section III. D, w e are requiring a single report that integrates the new reporting requirement contained in this final rule with the existing mandatory greenhouse gas (GHG) reporting of NOx and CO 2 as already required under §87. 64. Combin ing the existing GHG report w ith the new reporting requirement will not increase an engine manufacturer’s reporting burden. A single, integrated report may actually reduce a manufacturers total reporting burden somewhat because of the efficiency inherent in reporting to EPA once instead of twice.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 149 of 206 The requirements contained in this action were developed in consultation with the Federal Aviation Administration (FAA). Section 231(a)(2)(B)(i) of the CAA requires EPA to “consult with the Administrator of the [FAA] on aircraft engine emission standards” 42 U.S.C. 7571(a)(2)(B)(i), and section 231(a)(2)(B)(ii) in dicates that EPA “shall not change the aircraft engine emission standards if such change would significantly increase noise....” 42 U.S.C. 7571(a)(2)(B)(ii). Section 231(b) of the CAA states that “[a]ny regulation prescribed under this section (and an y r evision thereof) shall take effect after such period as the Administrator finds necessary (after consultation with the Secretary of Transportation) to permit the development and application of the requisite technology , giving appropriate consideration to the cost of compliance within such period.” 42 U.S.C. 7571(b). Section 231(c) provides that an y regulation under section 231 “shall not apply if disapproved by

the President...on the basis of a finding by the Secretary

of Transportation that any such regulation would create a hazard to aircraft safet y.” 42 U.S.C. 7571(c). Under section 232 of the CAA, the Department of Transportation (DOT) has the responsibility

to enforce the aircraft emission standards established by EPA under section 231. 126 As in past r

ulemakings and pursuant to the above referenced sections of the CAA, EPA has coordinated with the FAA , i.e., DOT , with respect to today 's action. Moreover, FAA is the official U.S. delegate to IC AO. FAA agreed to the amendments at ICAO's Sixth and Eighth Meetings of the Committee on Aviation Environmental Protection

126 The functions of the Secretary of Transportation under part B of title II of the Clean Air Act (§§ 231 - 234, 42 U.S.C. 7571 - 7574) have been delegated to the Administrator of the FAA. 49 CFR 1.47(g).Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 150 of 206 (CAEP/6) after advisement from EPA. 127 FAA and EPA were both members of the CAEP’s Working Group 3 (among others), whose objective was to evaluate emissions technical issues and develop recommen dations on such issues for CAEP/6 and CAEP/8 . After assessing emissions test procedure amendments and new NO x standards, Working Group 3 made recommendations to CAEP on these elements. These recommendations were approved b y CAEP/6 meetings prior to their adoption by I CAO in 2004. Similarly , the more recent Working Group 3 recommendations were approved b y CAEP/8 and have been adopted IC AO. In addition, as discussed above, FAA will have the duty to enforce today 's requirements . As a part of these duties , the FAA witnesses the emission tests or delegates aspects of that responsibility

to the engine manufacturer, which is then monitored by the FAA. VII. Public Participation We proposed this regulation on July 27, 2011 (76 FR 45012). A public hearing was held on August 11, 2011 in Chicago, IL. The public was invited to submit written comments on the proposal during the formal comment period, which ended on September 26, 2011. We received eight public comments from aircraft and aircraft engine manufactur ers, airline operators and an individual.

127 The Sixth Meeting of CAEP (CAEP/6) occurred in Montreal, Quebec from February 2 through 12 in 2004.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 151 of 206 The vast majority

of commenters supported the central tenets of the proposed regulations. That is, there was broad support for the adoption of these standards and the alignment of U.S. and international emissions regulations. We received specific comments on several aspects of the proposal. Throughout this notice, we discuss ed the key issues arising from the public comment and our responses. In addition, we have addressed all of the public comments in the anal ys i s of c omments document associated with this final action and located in the docket (Docket ID EPA HQ - OAR - 2010 - 0687). VIII. Statutory

Provisions and Legal Authorit y The statutory

authorit y for today's proposal is provided by sections 114, 231 - 234 and 301(a) of the Clean Air Act, as amended, 42 U.S.C. §§ 7414, 7571 - 7574 and 7601(a). See section II of today 's rule for discussion of how EPA meets the CAA's statutory requirements. IX . Statutory

and Executive Order Reviews A. Executive Order 12866: Re gulatory Planning and Review , and Executive Order 13563: Improving Regulation and Regulatory Review Under Executive Order (EO) 12866 (58 FR 51735, October 4, 1993), this action is a "significant regulatory

action.” This action pro mulgates new aircraft engi ne emissions regulations and as such, require s consultation and coordination with the Federal AviationDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 152 of 206 Administration (FAA). OMB has determined that this action raises “... novel legal or policy issues arising out of legal mandates, the President’s priorit ies, or the principles set forth in the EO.” Accordingl y, EPA submitted this action to the Office of Management and Budget (OMB) for review under EO 12866 and 13563 (76 FR 3821, January 21, 2011) and any

changes made in response to OMB recommendations hav e been documented in the docket for this action. As discussed further in section V, we do not attribute an y costs to the compliance with today ’s regulations that conform to IC AO standards and recommended practices. A ircraft turbofan engines are internatio nal commodities . As a result, engine manufacturers respond to this market realit y b y designing and building engines that conform to ICAO international standards and practices. Therefore, e ngine manufacturers are compelled to make the necessary business d ecisions and investments to maximize their international markets even in the absence of U.S. action. Indeed, engine manufacturers have or are alread y responding, or will in the future, to ICAO requirements that match the standards and practices adopted he re. Therefore, EPA believes that today ’s requirements that conform with I CAO standards and practices will impose no real additional burden on engine manufacturers. This finding is also consistent with past EPA rulemakings that adopted ICAO requirements. T here is , nonetheless, a small burden associated with the reporting requirements, as discussed in section IX.B. B. Paperwork Reduction ActDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 153 of 206 The information collection requirements in this rule have been submitted for approval to the Office of Management an d Budget (OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The information collection requirements are not enforceable until OMB approves them. Manufacturers keep substantial records to document their compliance with emission standards. We need to be able to access this data to conduct accurate emission inventories , understand how emission standards affect the current fleet, and develop appropriate policy in the form of future emission standards. Most manufacturers are alread y accustomed to reporting much of this information to I CAO. However, these reports are voluntary and aperiodic. As part of this action, w e are requiring that engine manufacturers send this information to EPA on an annual basis. We are also requiring manufacturers to s end us their annual production volumes, which we would treat as confidential business information. Under the Clean Air Act, we are authorized to require manufacturers to establish and maintain necessary records, make reports, and provide such other inform ation as we may reasonably

require to execute our functions under the Act. See 42 U.S.C. 7414(a)(1). We will simply require manufacturers to add the required information items to the annual report they are alread y required to submit with information about NOx and CO 2 emission levels. See section III.D for a more complete description of the annual reporting requirement.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 154 of 206 We have estimated the total annual burden of th e reporting requirement to be 60 hours, and the total cost to be $3,646. The annual b urden and cost per respondent is estimated to be 6 hours and $365. Burden is defined at 5 CFR 1320.3(b). An agency

may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it display s a currently valid O MB control number. The OMB control numbers for EPA's regulations in 40 CFR are listed in 40 CFR part 9. When this I CR is approved b y OMB, the Agency will publish a technical amendment to 40 CFR part 9 in the Federal Register to display the OMB control number for the approved information collection requirements contained in this final rule. C. Regulatory

Flexibility

Analy sis The Regulatory

Flexibility

Act (RFA) generall y requires an agency to prepare a regulatory

flexibility

analy sis of any

rule subject t o notice and comment rulemaking requirements under the Administrative Procedure Act or an y 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 includ e small businesses, small organizations, and small governmental jurisdictions. For purposes of assessing the impacts of today 's rule on small entities, small entity is defined as: (1) a small business as defined b y SBA size standards; (2) a small governmental jurisdiction that is a government of a cit y, count y, town, school district or special district with aDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 155 of 206 population of less than 50,000; and (3) a small organization that is an y not - for - profit enterprise which is independentl y owned and operated and is not dominant in its field. The following Table 4 provides an overview of the primary SBA small business categories potentially affected by this regulation. Table 4: Primary Potentially Affected SBA Small Business Categories Industry NA IC S a Codes Defined b y SBA as a small

business if: b Manufacturers of new aircraft engines 336412 < 1,000 employ ees Manufacturers of new aircraft 336411 < 1,500 employ ees a North American Industry Classification System (NAICS) b According to SBA's regulations (13 CFR part 121), businesses with no more than the listed number of employees or dollars in annual receipts are considered “small entities” for purposes of a regulatory flexibility analysis . After considering the economic impacts of today ’s r ule on small entities, Icertify that this action will not have a significant economic impact on a substantial number of small entities. Small governmental jurisdictions and small organizations as described above will not be impacted. We have determined that the estimated effect of the rule ’s reporting requirement is to affect one small entity turbofan engine manufacturer with costs less than one percent of revenues. This one company represents all of the small businesses affected by the regulations. An anal ys is of the impacts of the proposed rule on small businesses has been prepared andDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 156 of 206 placed in the docket for this rulemaking. 128 Since this final rule is largel y unchanged from the proposal, that anal ys is remains valid for the final rule. D. Unfunded M andates Reform Act This rule does not contain a Federal mandate that may result in expenditures of $100 million or more for State, local, and tribal governments, in the aggregate, or the private sector in any one y ear. As discussed in s ection III , today ’s action will establish consistency between U.S. and existing international emission standards. The engine manufacturers are alread y developing the technology

to meet the existing I CAO standards, and we do not believe it is appropriate to attribute the cos ts of that technology to this action. Thus, this rule is not subject to the requirements of sections 202 or 205 of UMRA. This rule is also not subject to the requirements of section 203 of UMRA because it contains no regulatory

requirements that might sig nificantly or uniquel y affect small governments. The provisions of this rule apply to the manufacturers of aircraft and aircraft engines, and as such would not affect small governments. E. Executive Order 13132: Federalism

128 “ Small Business Impact Memo, Proposed Aircraft Engine Emission Standards

– Determination of No SISNOSE ,” EPA memo from Solveig Irvine to Alexander Cristofaro, November, 2010.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 157 of 206 This action does not have feder alism implications. It will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132. As discussed earlier, section 233 of the CAA preempts states from adopting or enforcing aircraft engine emission standards that are not identical to our standards. This rule revise s the Code of Federal Regulations to more accurate ly reflect the statutory preemption established by the Clean Air Act. This rule does not impose any new preemption of State and local law. Thus, Executive Order 13132 does not apply to this a c tion. F. Executive Order 13175: Consultation and Coordinatio n with Indian Tribal Governments These rules regulate aircraft manufacturers and aircraft engine manufacturers. We do not believe that Tribes own any of these businesses nor are there other implications for Tribes. Thus, Executive Order 13175 does not ap ply to this action. G. Executive Order 13045: Protection of Children from Environmental Health & Safet y Risks This rule is not subject to Executive Order 13045 (62 FR 19885, April 23, 1997) because it is not economically

significant as defined in EO 12866 and the Agency does not believe the environmental health risks or safet y risks addressed by this action present a disproportionate risk to children. See section II.B.2 for a discussion of the health impacts of NO X emissions.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 158 of 206 H. Executive Order 13211: Actions that Significantly Affect Energy

Supply , Distribution, or Use This action is not a “significant energy action” as defined in Executive Order 13211 (66 FR 28355 (May

22, 2001)), because it is not likely to have a significant adverse effect on the supply , distribution, or use of energy . The se aircraft engine emissions regulations are not expected to result in an y changes to aircraft fuel consumption. I. National Technology

Transfer Advancem ent Act Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (“NTTAA”), Public Law No. 104 - 113 (15 U.S.C. 272 note) directs EPA to use voluntary consensus standards in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, and business practices) that are developed or adopted b y 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 rulemaking involves technical standards for testing emissions for aircraft gas turbine engines. EPA is using te st procedures contained in IC AO’s International Standards and Recommended Practices Environmental Protection, Annex 16, Volume II along with theDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 159 of 206 modifications contained in this rulemaking. 129 These procedures are currentl y used by all manufacturers of aircraft gas turbine engines (with thrust greater than 26.7 kN) to demonstrate compliance with ICAO emissions standards. J. EO 12898: Federal Actions to Address Environmental Justice in Minority Populations and L ow - Income Population s 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 p art of their mission by identify ing 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 State s. EPA has determined that this rule will not have disproportionatel y 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 an y disproportionately

high and adverse human health or environmental effects on any population, including an y minorit y or l ow - income population.

129 ICAO International Standards and Recommended Practices Environmental Protection, Annex 16, Volume II, “Aircr aft Engine Emissions,” Second Edition, July 1993 -- Amendment 3, March 20, 1997. Copies of this document can be obtained from ICAO ( www.icao.int ).Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 160 of 206 K. Congressional Review Act The Congressional Review Act, 5 U.S.C. 801 et seq., as added b y the Small Business Regulatory

Enforcement Fairness Act of 1996, generall y provides that before a rule may take effect, the agency

promulgating the rule must submit a rule report, which includes a cop y of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in th e Federal Register. A m ajor rule cannot take effect until 60 day s after it is published in the Federal Register. This action is not a “major rule” as defined by 5 U.S.C. 804(2). This rule will be effective [insert date 30 day s after publ ication in the Fed eral Register ] . List of Subjects 40 CFR Part 87 Environmental protection, Air pollution control, Aircraft, Incorporation by reference. 40 CFR Part 1068 Environmental protection, Administrative practice and procedure, Confidential business information, Imports, Incorporation by reference, Motor vehicle pollution, Penalties, Reporting and recordkeeping requirements, Warranties.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 161 of 206 Dated:

_______________________________

_______________________________________ Lisa P. Jackson , Adminis tratorDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 162 of 206 PART 87 - CONTROLOF AIR POLLUTION FROM AI RCRAFT AND AIRCRAFT ENGINES

1. The authorit y citation for part 87 is revised to read as follows: Authority : 42 U.S.C. 7401 et seq .
**Subpart A -**  **[Amended]**

2. Revise §87.1 to read as follows: **§87. 1**  **Definitions.** The definitions in this section apply to this part. The definitions apply to all subparts. Any terms not defined in this section have the meaning given in the Clean Air Act . The definitions follow: Act means the Clean Air Act , as amended ( 42 U.S.C. 7401 et seq ) .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 163 of 206 Administrator means the Administrator of the Environmental Protection Agency and any other officer or employ ee of the Environmental Protection Agency to whom authority

involved may be delegated. Aircraft has the meaning given in 14 CFR 1.1, which defines aircraft to mean a device used or intended to be used for flight in the air. Note that under §87.3, the requirements of this part generall y appl y onl y to propulsion engines used on certain airplanes for which U.S. airworthiness certificates are required. Aircraft engine means a propulsion engine which is installed in or which is manufactured for installation in an aircraft. Aircraft gas turbine engine means a turboprop, turbofan, or turbojet aircraft engin e. Characteristic level has the meaning given in Appendix 6 of IC AO Annex 16 (as of July 2008) . The characteristic level is a calculated emission level for each pollutant based on a statistical assessment of measured emissions from multiple tests. Class TP means all aircraft turboprop engines. Class TF means all turbofan or turbojet aircraft engines or aircraft engines designed for applications that otherwise would have been fulfilled by turbojet and turbofan engines except engines of class T3, T8, and T SS.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 164 of 206 Class T3 means all aircraft gas turbine engines of the JT3D model family . Class T8 means all aircraft gas turbine engines of the JT8D model family . Class TSS means all aircraft gas turbine engines employed for propulsion of aircraft designed to operate at supersonic flight speeds. Commercial aircraft engine means an y aircraft engine used or intended for use by an “air carrier,” (including those engaged in “intrastate air transportation”) or a “commercial operator” (including those engaged in “intrastate air transportation”) as these terms are defined in subtitle 7 of title 49 of the United States Code and title 14 of the Code of Federal Regulations . Commercial aircraft gas turbine engine means a turboprop, turbofan, or turbojet commercial aircraft engine . Date of introduction or introduction date means the date of manufacture of the first individual production engine of a given engine model or engine ty pe certificate family to be certifi cat ed. This does not include test engines or other engines not place d into service. Date of manufacture means the date on which a manufacturer is issued documentation by FAA (or other competent authority for engines certifi cat ed outside the United States) attesting that the given engine conforms to all applicable requireme nts . This date may not be earlier that the date on which assembly of the engine is complete. Where the manufacturer does not obtainDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 165 of 206 such documentation from FAA (or other competent authority for engines certifi cat ed outside the United States), date of manufacture means the date of final assembly of the engine. Derivative engine for emissions certification purposes means an engine that has the same or similar emissions characteristics as an engine covered b y a U.S. t ype certificate issued under 14 CFR part 33. These characteristics are specified in §87.48. Designated EPA Program Officer means the Director of the Assessment and Standards Division, 2000 Traverwood Drive, Ann Arbor, Michigan 48105. DOT S ecretary means the Secretary of the Transportation and an y other officer or employee of the Department of Transportation to whom the authority involved may

be delegated. Engine means an individual engine. A group of identical engines together make up an engine model or sub - model. Engine model means an engine manufacturer’s designation for an engine grouping of engines and/or engine sub - models within a single engine ty pe certificate family , where such engines have similar design , including being similar with respect to the core engine and combustor designs . Engine sub - model means a designation for a grouping of engines with essentially identical design , especiall y with respect to the core engine and combustor designs and other emission related features . Engines from an engine sub - model must be contained with in a single engine model . For purposes of this part, an original engine model configuration is considered a sub -Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 166 of 206 model. For example, if a manufacturer initially produces an engine model designated ABC and later introduces a new sub - model ABC - 1, the engine model consists of two sub - models: ABC and ABC - 1. Engine ty pe certificate family means a group of engines ( comprising one or more engine models , including sub - models and derivative e ngines for emissions certification purpose s of those engine models ) determi ned b y FAA to have a sufficientl y common design to be grouped together under a t ype certificate . EPA means the U.S. E nvironmental Protection Agency . Ex cept means to routinely allow engines to be produced and sold that do not m eet (or do not fully meet) oth erwise applicable standards. (Note that this definition applies only with respect to spare engines and that the term “except” has its plain meaning in other contexts.) Ex cept ed engines must conform to regulatory conditions specified for an ex cep tion in this part and oth er applicable regulations. Excep ted engines are deemed to be “subject to” the standards of this part even though they

are not required to compl y with the otherwise appli cable requirements. Engines exce pted with respect to certain standards must comply with other standards from which they are not excepted . Exempt means to allow (through a formal case - by - case process) engines to be produced and sold that do not m eet (or do not fully meet) otherwise applicable standards. Exempted engines must conform to regulatory conditions specified for an exemption in this part and otherDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 167 of 206 applicable regulations. Exempted engines are deemed to be “subject to” the standards of this part even though they

are not required to compl y with the otherwise applicable r equirements. Engines exempted with respect to certain standards must comply with other standards as a condition of the exemption. E xhaust emissions means substances emitted to the atmosphere from exhaust discharge nozzles, as measured by

the test procedu res specified in subpart G of this part. FAA means the U.S. Department of Transportation, Federal Aviation Administration. Fuel venting emissions means raw fuel, exclusive of h ydrocarbons in the exhaust emissions, discharged from aircraft gas turbine engi nes during all normal ground and flight operations. Good engineering judgment involves making decisions consistent with generall y accepted scientific and engineering principles and all relevant information, subject to the provisions of 40 CFR 1068.5. ICAO Annex 16 means Volume II of Annex 16 to the Convention on International Civil Aviation (incorporated by reference in §87.8). In - use aircraft gas turbine engine means an aircraft gas turbine engine which is in service.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 168 of 206 Military aircraft means aircraft owned b y, operated by, or produced for sale to the armed forces or other agency

of the federal government responsible for national security ( including but not limited to the Department of Defense ) and other aircraft considered to be military aircraft under international law and conventions . New means relating to an aircraft or aircraft engine that has never been placed into service. Operator means any

person or company

that owns or operates an aircraft. Productio n cutoff date or date of the production cutoff means the date on which interim phase - out allowances end . Rated output (rO) means the maximum power/thrust available for takeoff at standard day conditions as approved for the engine b y FAA , including reheat contribution where appli cable, but excluding an y contribution due to water injection, expressed in kilowatts or kilonewtons (as applicable) and rounded to at least three significant figures. Rated pressure ratio (rPR) means the ratio between the combustor inlet pressure and the e ngine inlet pressure achieved b y an engine operating at rated output, rounded to at least three significant figures. Round means to round numbers according to NIST SP 811 (March 2008), unless otherwise specified.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 169 of 206 Smoke means the matter in exhaust emissions that obscures the transmission of light, as measured b y the test procedures specified in subpart G of this part. Smoke number means a dimensionless value quantify ing smoke emissions calculated in accordance with I CAO Annex 16. Spare engine means an engine installed (or intended to be installed) on an in - service aircraft to replace an existing engine and that is excepted as described in §87.50(c). . Standard day

conditions means the following ambient conditions: temperature =15 °C, spec ific humidity

= 0.00634 kg H 2 O/kg dry air, and pressure =101.325 kPa. Subsonic means relating to aircraft that are not supersonic aircraft. Supersonic m eans relating to aircraft that are certificated to fl y faster than the speed of sound. Tier 0 means relatin g to an engine that is subject to the Tier 0 NOx standards specified in §87.21. Tier 2 means relating to an engine that is subject to the Tier 2 NOx standards specified in §87.21. Tier 4 means relating to an engine that is subject to the Tier 4 NOx standar ds specified in §87.21.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 170 of 206 Tier 6 means relating to an engine that is subject to the Tier 6 NOx standards specified in §87.23. Tier 8 means relating to an engine that is subject to the Tier 8 NOx standards specified in §87.23. Turbofan engine means a gas turb ine engine designed to create its propulsion from exhaust gases and from air that by passes the combustion process and is accelerated in a ducted space between the inner (core) engine case and the outer engine fan casing. Turbojet engine means a gas turbin e engine that is designed to create all of its propulsion from exhaust gases. Turboprop engine means a gas turbine engine that is designed to create most of its propulsion from a propeller driven by a turbine, usuall y through a gearbox. Turboshaft engine means a gas turbine engine that is designed to drive a rotor transmission sy stem or a gas turbine engine not used for propulsion . U.S. - registered aircraft means an aircraft that is on the U.S. Registry . We (us, our) means the Administrator of the Environm ental Protection Agency and any authorized representatives.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 171 of 206 3. Revise §87.2 to read as follows: **§87. 2**  **Abbreviations.** The abbreviations used in this part have the following meanings: % p ercent ° d egree CO c arbon m onoxide CO 2 carbon dioxide g gram HC h ydrocarbon(s) kN kilonewton kW kilow att LTO l anding and takeoff NO x o xides of nitrogen rO r ated output rPR r ated pressure ratio SN s moke number

4. Revise §87.3 to read as follows: **§87. 3**  **General a pplicability and requirements.**  (a) The regulations of this part appl y to engines on all aircraft that are required to be certificated b y FAA under 14 CFR part 3 3 except as specified in this paragraph (a). These regulations do not apply

to the following aircraft engines: (1) Reciprocati ng engines (including engines used in ultralight aircraft).Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 172 of 206 ( 2 ) T urboshaft engines such as those used in helicopters . (3) Engines used onl y in aircraft that are not airplanes. For purposes of this paragraph (a)(3), “airplane” means a fixed - wing aircraft that is heavier than air. (4 ) Engines not used for propulsion. (b) Under section 232 of the Act, the Secretary of Transportation issues regulations to e nsure compliance with the standards and related requirements of this part (42 U.S.C. 7572) . (c) The Secretary

of Transportation shall apply these regulations to aircraft of foreign registry in a manner consistent with obligations assumed by the United States in any

treat y, convention or agreement between the United States and an y foreign country or forei gn countries. ( d ) No State or political subdivision of a State may adopt or attempt to enforce an y aircraft or aircraft engine standard respecting emissions unless the standard is identical to a standard applicable to such aircraft under this part (inclu ding prior - tier standards applicable to exempt engines) .
**§87.5 —**  **[Removed]** 5. Remove §87.5.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 173 of 2 06 6. Revise §87.6 to read as follows: **§87. 6**  **Aircraft safety.** The provisions of this part will be revised if at any time the DOT Secretary determines that an emission standard cannot be met within the specified time without creating a hazard to aircraft safety .
**§87.7 —**  **[Removed]** 7. Remove §87.7.

8. Revise §87.8 to read as follows: **§87.8 Incorporation by reference.** (a) Certain material is incorporated by reference into this part with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce an y edition other than that specif ied in this section, the Environmental Protection Agency must publish notice of change in the Federal Register and the material must be available to the public.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 174 of 206 All approved material is available for inspection at U.S. EPA, Air and Radiation Docket and In formation Center, 1301 Constitution Ave., NW., Room B102, EPA West Building, Washington, DC 20460 , (202) 202 - 1744, and is available from the sources listed below. It is also available for inspecti on at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202 - 741 - 6030 or go tohttp://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html. ( b ) Internation al Civil Aviation Organization , Document Sales Unit, 999 University Street, Montreal, Quebec, Canada H3C 5H7 , (514) 954 - 8022, www.icao.int , or sales@icao.int .

(1) Annex 16 to the Convention on International Civil Aviation, Environmental Protection, Volume II

– Aircraft Engine Emissions, Third Edition, July 2008. [Update for CAEP8 changes]; IBR approved for §§87.2, 87.40, 87.42(d) and (f), and 87.60(a) and (b). (2) [Reserved] ( c ) National Institute of Standards and Technology , 100 Bureau Drive, Stop 1070, Gaithersburg, MD 20899 - 1070 , (301) 975 - 6478, www.nist.gov , or inquiries@nist.gov . An yone may also purchas e copies of these materials from the Government Printing Office, Washington, DC 20402 , (202) 512 - 0916, www.gpo.gov , or prntproc@gpo.gov .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 175 of 206 (1) NI ST Special Publication 811, 1995 Edition , Guide for the Use of the International S ys tem of Units (SI ), Barry N. Taylor, Phy sics Laboratory ; IBR approved for §87.2. (2) [Reserved]Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 176 of 206 **Subpart C —**  **[Amended]**

9. Amend §87.21 as follows: a. By revising the section heading. b. By adding introductory

text.

c. By revising paragraphs (d)(1)(iii), (d)(1)(iv), (d)(1)(vi) introductory text, (e)(1), and (f). **§87.21 Exhaust emission standards for Tier 4 and earlier engines.**  This section describes the emission standard s that apply for Tier 4 and earlier engines that apply for air craft engines manufactured before [I NSERT DATE 30 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER ] and certain engines exempted under §87.50. Note that the tier of standards identified for an engine relates to NOx emissions and that the sp ecified standards for HC, CO, and smoke emissions apply independent of the changes to the NOx emission standards. (d) * * * (1) * * *Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 177 of 206 (iii) The following Tier 0 emission standard applies for e ngines of a t ype or model of which the date of manufacture of the first individual production model was on or before December 31, 1995 and for which the date of manufacture of the individual engine was on or before December 31, 1999. Oxides of Nitrogen: (40 + 2(rPR)) grams/kilonewton rO. (iv) The following Tier 2 emis sion standard applies for e ngines of a t ype or model of which the date of manufacture of the first individual production model was after December 31, 1995 or for which the date of manufacture of the individual engine was after December 31, 1999: Oxides of Nitrogen: (32 + 1.6(rPR)) grams/kilonewton rO.

* * * * * (vi) The following Tier 4 emission standards apply for e ngines of a t ype or model of which the date of manufacture of the first individual production model was after December 31, 2003: (e) * * * (1) Class TF of rated output less than 26.7 kilonewtons manufactured on or aft er August 9, 1985:Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 178 of 206 SN=83.6(rO) - 0.274 (rO is in kilonewtons) not to exceed a maximum of SN=50.

* * * * * (f) The standards in this section refer to a composite emission sample measu red and calculated in accordance with the procedures described in subpart G of this part .

10. Add a new §87.23 to read as follows: **§87.23 Exhaust emission standards for Tier 6 and Tier 8 engines.**  This section describes the emission standards that apply for Tier 6 and Tier 8 engines. The standards of this section apply for aircraft engines manufactured on or after [INSERT DATE 30 DAYS AFTER PUBLICATION IN THE FEDERALREGISTER ], except where we spe cify that they apply differently

by y ear , or where the engine is exempt from one or more standards of this section . Except as specified in paragraph (d) of this section , these standards appl y based on the date the engine is manufactured. Where a gaseous emission standard is specified b y a formula, calculate and round the standard to three significant figures or to the nearest 0.1 g/kN (for standards at or above 100 g/kN). Where a smoke standard is specified by a formula, calculate and round the standard to the nearest 0.1 SN. Engines compl y with an applicable standard if the testing results show that the engine ty pe certificate family ’s characteristic level does not exceed the numerical level of that standard, as described in §87.60. The tier ofDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 179 of 206 standar ds identified for an engine relates to NOx emissions and that the specified standards for HC, CO, and smoke emissions apply independent of the changes to the NOx emission standards. (a) New turboprop aircraft engines with rated output at or above 1,000 k il owatts must comply with a smoke standard of 187• rO - 0.168

. (b) New supersonic engines must comply with the standards shown in the following table :

Table 1 to §87.23

– Smoke and Gaseous Emission Standards for New Supersonic Engines

Rated Output Sm oke

Number HC

(g/kN rated output) NOx

(g/kN rated output) CO

(g/kN rated output) rO < 26.7 kN

— 140•0.92 rPR 36+2.42•rPR 4550•rPR - 1.03
rO > 26.7 kN 83.6•rO - 0.274 or 50 .0 ,

whichever is smaller 140•0.92 rPR 36+2.42•rPR 4550•rPR - 1.03

(c) New turbofan or turbojet aircraft engines that are installed in subsonic aircraft must comply with the following standards:Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 180 of 206 (1) The applicable smoke, HC, and CO standards are shown in the following table:

Table 2 to §87.23

– Smoke, HC, and CO Standards for New Subsonic T urbofan or Turbojet Engines

Rated Output (kN) Sm oke

Standard Gaseous Emission Standards (g/kN rated output)

HC CO

rO < 26.7 kN 83.6•rO - 0.274 or 50 .0 ,

whichever is smaller — —

rO > 26.7 kN 83.6•rO - 0.274 or 50 .0 ,

whichever is smaller 19.6 118

(2) The Tier 6 NOx standards appl y as described in this paragraph (c)(2). See paragraph (d) of this section for provisions related to models introduced before these standards started to appl y and engines determined to be derivative engines for emi ssions certification purposes under the requirements of this part .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 181 of 206 Table 3 to §87.23

– Tier 6 NOx Standards for New Subsonic Turbofan or Turbojet Engines with Rated Output Above 26.7 kN

I f the rated pressure ratio is... and the rated output

(in k N ) is... T he NO x emission standard (in g/k N rated output) is....

rPR < 30 26.7 < rO < 89 38.5486 + 1.6823•rPR - 0.2453•rO - 0.00308•rPR•rO

rO > 89 16.72 + 1.4080•rPR

30 < rPR < 82.6 26.7 < rO < 89 46.1600 + 1.4286•rPR - 0.5303•rO + 0.00642•rPR•rO

rO > 89

– 1.04 + 2.0•rPR

rPR > 82.6 all 32 + 1.6•rPR (3) The Tier 8 NOx standards appl y as described in this paragraph (c)(3) beginning January 1, 2014. See paragraph (d) of this section for provisions related to modelsDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 182 of 206 introduced before January 1, 2014 appl y and engines determined to be derivative engines for emissions certification purposes under the requirements of this part .

Table 4 to §87.23

– Tier 8 NOx Standards for New Subsonic T urbofan or Turbojet Engines with Rated Output Above 26.7 kN

I f the rated pressure ratio is... and the rated output

(in k N ) is... T he NO x emission standard (in g/k N rated output) is....

rPR < 30 26.7 < rO < 89 40.052 + 1.5681•rPR - 0.3615•rO - 0.0018•rPR•rO

rO > 89 7.88 + 1.4080•rPR

30 < rPR < 104.7 26.7 < rO < 89 41.9435 + 1.505•rPR - 0.5823•rO + 0.005562•rPR•rO

rO > 89 – 9.88 + 2.0•rPR

rPR > 104.7 all 32 + 1.6•rPRDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 183 of 206 (d) This paragraph specifies phase - in provisions that allow continued production of certain engines after the Tier 6 and Tier 8 standards begin to appl y.

(1) Engine ty

pe certificate families certifi cat ed with characteristic levels at or below the Tier 4 NOx standards of §87.21 (as applicable based on rated o utput and rated pressure ratio) and introduced before [INSERT DATE 30 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER ] may be produced through December 31, 2012 without meeting the Tier 6 NOx standards of paragraph (c)(2) of this section . This also applies for engines that are covered by

the same ty

pe certificate and are determined to be derivative engines for emissions certification purposes under the requirements of this part . Note that a fter this production cutoff date for the Tier 6 NOx standards, such engines may be produced onl y if they are covered by

an exemption under §87.50. This production cutoff does not apply to engines installed (or delivered for installation) on military aircraft. (2 ) Engine ty

pe certificate families certifi cat ed with charact eristic levels at or below the Tier 6 NOx standards of paragraph (c)( 2 ) of this section with an introduction date before January 1, 2014 may

continue to be produced. This also applies for engines that are covered by the same ty

pe certificate and are deter mined to be derivative engines for emissions certification purposes under the requirements of this part.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 184 of 206 (3) An engine manufacturer may produce up to six newly

manufactured Tier 4 engines on or after [INSERT DATE 30 DAYS AFTER PUBLICATION IN THE FEDERAL REGI STER] , subject to the provisions of this paragraph (d)(3) . Tier 4 engines meeting the criteria of this paragraph (d)(3) are excepted without request from the otherwise applicable Tier 6 NOx emission standard. T o be eligible for this exception the eng ines must have a date of manufacture prior to August 3 1, 2013 and be fully compliant with all requirements applicable to Tier 4 engines . The manufacturer must include these engines in the report required b y §87.50. This ex cep tion is void for any manufacturer that produces more than six ex cep ted engines under this paragraph.

11. Add a new subpart E containing §§87.40, 87.42, 87.44, 87.46, and 87.48 to part 87 to read as follows:

**Subpart E —**  **Certification Provisions**

Sec. 87.40 General certification requirement.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 185 of 206 87.42 Certification report to EPA. 87.4 4 Reporting CO 2 emissions. 87.46 Recordkeeping. 87.4 8 Derivative engines for emissions certification purposes .
**§87.40 General certification requirement.**  Manufacturers of engines subject to this part must meet the requirements of title 14 of the Code of Federal Regulations as applicable.

**§87.42 Production**  **report to EPA.** Engine manufacturers must submit an annual production report as specified in this section. This r equirement applies for engines produced on or after January 1, 2013. (a) You must submit the report for each calendar year in which you produce an y engines subject to emission standards under this part. The report is due b y February 28 of the following calendar year. Note that §87.64 requires you to report CO 2 emission rates to EPA in addition to NOx . Include these data in the report required b y this section. I f you produce exempted orDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 186 of 206 excepted engines, y ou may submit a single report with information on exempted/excepted and normally certificated engines. (b) Send the report to the Designated EPA Program Officer. ( c ) In the report, specify

y our corporate name and the y ear for which you are reporting. In clude information as described in this section for each engine sub - model subject to emission standards under this part. L ist each engine sub - model produced or certific ated during the calendar year, including the following information for each sub - model:

(1) The t ype of engine (turbofan, turboprop, etc.) and complete sub - model name, including an y applicable model name , sub - model identifier, and engine t ype certificate family identifier. (2) The certificate under which it was produced. Identify all the following: (i) The t ype certificate number. Specify if the sub - model also has a t ype certificate issued b y a certificating authority other than FAA. (ii) Your corporate name as listed in the certificate. (i ii ) Emission s tandards to which the engine is certifi cat ed. (iv ) Date of issue of t ype certificate (month and ye ar) .Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 187 of 206 (v ) Whether or not this is a derivative engine for emissions certification purposes . If so, identify

th e original certifi cat ed engine model. ( v i ) The engine sub - model that received the original ty pe certificate for an engine ty pe certificate family . (3) Identify

the combustor of the sub - model, where more than one t yp e of combustor is available. ( 4 ) The c alendar - ye ar production volume of engines from the sub - model that are covered b y an FAA t ype certificate. Record zero for sub - models with no engines produced during the calendar ye ar, or state that the engine model is no longer in production and list the date of manufacture (month and y ear) of the last engine produced. Specify the number of these engines that are intended for use on new aircraft and the number that are intended for use as non - exempt engines on in - use aircraft. For engines delivered without a final sub model status and for which the manufacturer has not ascertained the engine’s sub - model when installed before submitting its production report, the manufacturer may do any of the following in its initial report, and amend it later:

(i) L ist th e sub - model that was shipped or the most probable sub - model. (ii) L ist all potential sub - models. (iii) State “Unknown Sub - Model”.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 188 of 206 (5) The number of engines tested and the number of test runs for the applicable ty pe certificate. (6) T he applicable test dat a and related information specified in Part III, Section 2.4 of I CAO Annex 16 (incorporated by reference in §87.8) , except as otherwise allowed b y this paragraph . For purposes of this paragraph (c)(6), applicable test data means data required to certify the engine sub - model, which would ty pically include NOx, HC, CO and smoke number. However, applicable test data would not include NOx, HC, or CO emissions for engines subject to only

smoke standards. Note that §87.64 also requires you to report CO 2 emissi ons. Specify

thrust in kW for turboprop engines. You may omit the following items specified in Part III, Section 2.4 of I CAO Annex 16 :

(i) Fuel specifications including fuel specification reference and h yd rogen/carbon ratio. (ii) Methods used for data ac quisition, correcting for ambient conditions, and data anal ys is. (iii) Intermediate emission indices and rates, however y ou may not omit the final characteristic level for each regulated pollutant in units of g/kN or g/kW. (d) Clearl y show what information you consider confidential by marking, circling, bracketing, stamping, or some other method. We will store y our confidential information asDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 189 of 206 described in 40 CFR part 2. Also, we will disclose it only as specified in 40 CFR part 2. If y ou send us informati on without claiming it is confidential, we may make it available to the public without further notice to y ou, as described in 40 CFR 2.204. ( e ) Include the following signed statement and endorsement by an authorized representative of your company : “We subm it this report under 40 CFR 87.42. All the information in this report is true and accurate to the best of m y knowledge. ” ( f ) Where information provided for the previous year remains valid and complete, y ou may report your production volumes and state that there are no changes , without resubmitting the other information specified in this section.

**§87.4 6**  **Recordkeeping .**  (a) You must keep a copy of any reports or other information y ou submit t o us for at least three ye ars. ( b ) Store these records in any format and on any

media, as long as y ou 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.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 190 of 206 **§ 87.48**  **Derivative engine s**  **for emissions certification purposes .**  (a) General . A ty

pe certificate holder may

request from the FAA a determination that an engine configuration is considered a derivative engine for emissions certification purposes . This would mean that the engine configuration is determined to be similar in design to a previously certifi cat ed engine (the “original” engine) for purposes of compliance with exhaust emission standards (gaseous and smoke) . In order for the engine configuration to be considered a derivative engine for emission purposes under this part, it must have been derived from an original engine that was certifi cat ed to the requirements of 14 CFR part 33 , and one of the following conditions must be met:

(1) The FAA determined that a safet y issue e xists that requires an engine modification. (2) Emissions from the derivative engines are determined to be similar. In general, this means the emissions must meet the criteria specified in paragraph (b) of this section. FAA may adjust these criteria in unusual circumstances, consistent with good engineering judgment. (3) All of the regulated emissions from the derivative engine are lower than the original engine.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 191 of 206 (b) Emissions similarity . (1) The ty pe certificate holder must demonstrate that the proposed derivative engine model ’s emission s meet the applicable standards and differ from the original model ’s emission rates onl y within the following ranges :

(i) ± 3.0 g/kN for NOx. (ii) ± 1.0 g/kN for HC. (iii) ± 5.0 g/kN for CO. (iv) ± 2.0 SN for smoke. (2) If the characteristic level of the original certificated engine model (or any other sub - models within the emission ty pe certificate family

tested for certification) before modification is at or above 95% of the applicable standard f or any pollutant, y ou must measure the proposed derivative engine model’s emissions for all pollutants to demonstrate that the derivative engine’s resulting characteristic levels will not exceed the applicable emission standards. If the characteristic lev el s of the originally certificated engine model (and all other sub - models within the emission ty pe certificate family

tested for certification) are below 95% of the applicable standard for each pollutant , then, y ou may use engineering anal ys is to demonstr ate that the derivative engine will not exceed the applicable emission standards, consistent with good engineering judgment. The engineering analy sis mustDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 192 of 206 address all modifications from the original engine, including those approved for previous derivative engines. (c) Continued production allowance . Where we allow continued production of an engine model after new standards begin to appl y, you may also produce engine derivatives if they conform to the specifications of this section. (d) Non - derivative engi nes . If the FAA d etermines that an engine model does not meet the requirements for a derivative engine for emissions certification purposes, the ty pe certificate holder is required to demonstrate that the engine complies with the emissions standards appli cable to a new engine ty pe.

12. Add a new subpart F containing §87.50 to part 87 to read as follows:

**Subpart F —** **Exemptions and exceptions** 

**§87.50 Exemptions and exceptions**  **.**Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 193 of 206 This section specifies provisions related to exempting/excepting engines from some or all of the standards and requirements of this part 87. Exempted /excepted engines must conform to regulatory

conditions specified for an exemption in this section and other applicable regulations. Exempted/excepted engines are deemed to be “subject to” the standards of this part even though they are not required to comply with the otherwise applicable requirements. Engines exempted/excepted with respect to certain standards must comply with other standards. Exemption requests under paragraph (a) of this section must be approved by the FAA, with the written concurrence of EPA, to be effective. Exemption requests under paragraph (b) of this section must be approved only by the FAA to be effective. Exceptions do not require a case - by case FAA approval. (a) Engines installed in new aircraft. Ty pe certificate holders may request an exemption to produce a limited number of newly manufactured engines through December 31, 2016 , to be installed in new aircraft as specified in this paragraph (a) . This exemption is limited to NOx emissions from engines that are covered b y a valid type certificate issued by FAA.

( 1 ) Submit y our request for an exemption before producing the engines to be exempted to the FAA who will provide a cop y to the Designated EPA Program Officer. Exemption by

an authority

outside the United States does not satisfy this requirement. Unless EPA and FAA allow otherwise, a ll requests must include the following:

(i) Your corporate name and an authorized representative’s contact information.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 194 of 206 (ii) A description of the engines for which you are requesting the exemption including the t ype certificate number and date it was issued b y the FAA . Include in y o ur description the engine model and sub - model names and the t ypes of aircraft in which the engines are expected to be installed. Specify the number of engines that yo u would produce under the exemption and the period during which you would produce them. (iii) Information about the aircraft in which the engines will be installed. Specify the airframe models and expected first purchasers/users of the aircraft. Identify all countries in which you expect the aircraft to be registered . Specify how many

air craft will be registered in the United States and how many will be registered in other countries ; yo u may estimate this if it is not known . (iv) A justification of why the exemption is appropriate. Justifications must include a description of the enviro nmental impact of granting the exemption. Include other relevant information such as the following.

(A) Technical issues, from an environmental and airworthiness perspective, which may

have caused a delay

in compliance with a production cutoff. (B) Econo mic impacts on the manufacturer, operator(s), and aviation industry at large.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 195 of 206 (C) Environmental effects. This should consider the amount of additional air pollutant emissions that will result from the exemption. This could include consideration of items su ch as:

( 1 ) The amount that the engine model exceeds the standard, taking into account an y other engine models in the engine t yp e certificate family covered by the same ty

pe certificate and their relation to the standard. ( 2 ) The amount of the applicable ai r pollutant that would be emitted by an alternative engine for the same application. ( 3 ) The impact of changes to reduce the applicable air pollutant on other environmental factors, including emission rates of other air pollutants, community

noise , and fue l consumption . ( 4 ) The degree to which the adverse impact would be offset by cleaner engines produced in the same time period (unless we decide to consider earlier engines). (D) Impact of unforeseen circumstances and hardship due to business circumstances bey ond y our control (such as an employ ee strike, supplier disruption, or calamitous events).Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 196 of 206 (E) Projected future production volumes and plans for producing a compliant version of the engine model in question. (F) Equit y issues in administering the production cutoff among economically competing parties. (G) List of other certificating authorities from which y ou have requested (or expect to request) exemptions, and a summary of the request. (H) An y other relevant factors. (v) A statement signed by yo ur authorized representative attesting that all information included in the request is accurate. ( 2 ) In consultation with the EPA, the FAA may specify additional conditions for the exemption. ( 3 ) You must submit the annual report specified in paragraph ( d ) of this section. ( 4 ) The permanent record for each engine exempted under this paragraph (a) must indicate that the e ngine is an exempted new engine. ( 5 ) Engines exempted under this paragraph (a) must be labeled with the following statement: “EXEMPT NEW”.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 197 of 206 ( 6 ) You must notify the FAA if you determine after submitting your request that the information is not accurate, eith er from an error or from changing circumstances. If you believe the new or changed information c ould have affected approval of y our exemption (including information that could have affected the number of engines we exempt) , y ou must notify the FAA promptl y. The FAA will consult with EPA as needed to address an y concerns related to this new or corrected information. (b) Temporary

exemptions based on flights for short durations at infrequent intervals. The emission standards of this part do not apply to en gines which power aircraft operated in the United States for short durations at infrequent intervals. Such operations are limited to:

(1) Flights of an aircraft for the purpose of export to a foreign country , including any flights essential to demonstrate the integrity of an aircraft prior to its flight to a point outside the United States. (2) Flights to a base where repairs, alterations or maintenance are to be performed, or to a point of storage, and flights for the purpose of returning an aircraft to se rvice. (3) Official visits by representatives of foreign governments. (4) Other flights the Secretary determines to be for short durations at infrequent intervals. A request for such a determination shall be made before the flight takes place.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 198 of 206 ( c ) S par e engines . Newly manufactured engines meeting the definition of “spare engine” are excepted as follows:

(1) This ex ce ption allow s production of a newly manufactured engine for installation on an in - service aircraft. It does not allow for install ation of a spare engine on a new aircraft. (2) Each spare engine must be identical to a sub - model previously certificated to meet all requirements applicable to Tier 4 engines or later requirements. (3) Spare engines ex ce pt ed under this paragraph ( c ) may be used only

where the emissions of the spare engines are certificated to equal to or lower emission standards than those of the engines they

are replacing, for all regulated pollutants. ( 4 ) No prior approval is required to produce spare engines. E ngine manufacturers must include information about their production of spare engines in the annual report specified in paragraph ( d ) of this section ( 5 ) The permanent record for each engine ex ce pted under this paragraph (c) must indicate that the engine was produced as an ex ce pted spare engine. ( 6 ) Engines ex ce pted under this paragraph (c) must be labeled with the following statement: “EX CE PT ED SPARE”.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 199 of 206 ( d ) Annual reports. If you produce engines with an exemption/exception under this section, y ou must submit an annual r eport with respect to such engines.

(1) You must send the Designated EPA Program Officer a report describing your p roduction of exempted

/excepted engines for each calendar y ear in which y ou produce such engines b y February 28 of the following calendar year . You may include this information in the certification report described in §87.42. Confirm that the information in your initial request is still accurate, or describe an y relevant changes. (2) Provide the information specified in this paragraph ( d )(2). For purposes of this paragraph ( d ), treat spare engine ex ce ptions separate from other new engine exemptions. In clude the following for each exemption/exception and each engine model and sub - model:

(i) Engine model and sub - model names. (ii) Serial number of each engine. (iii) Use of each engine (for example, spare or new installation). (iv) Ty pes of aircraft in which the engines were installed (or are intended to be installed for spare engines). (v) Serial number of the new aircraft in which engines are i nstalled (if known) , or the name of the air carriers (or other operators) using spare engines.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 200 of 206 (3) I nclude information in the report onl y for engines having a date of manufacture within the specific calendar year.

**Subpart G**

**— Test Procedures**  13. The heading f

or subpart G is revised as set forth above.

14. Revise §87.60 to read as follows: **§87.60 Testing engines.** (a) Use the equipment and procedures specified in Appendix 3, Appendix 5, and Appendix 6 of I CAO Annex 16 (incorporated b y reference in §87.8), as appl icable, to demonstrate whether engines meet the gaseous emission standards specified in subpart C of this part . Measure the emissions of all regulated gaseous pollutants. Similarly , use the equipment and procedures specified in Appendix 2 and Appendix 6 of I CAO Annex 16 to determine whether engines meet the smoke standard specified in subpart C of this part . The compliance demonstration consists of establishing a mean value from testing some number of engines, then calculating a “characteristic level” b y appl yi ng a set of statistical factors that take into account the number of engines tested. Round each characteristic level to the same number of decimalDeliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 201 of 206 places as the corresponding emission standard. For turboprop engines, use the procedures specified f

or turbofan engines, consistent with good engineering judgment. (b) Use a test fuel meeting the specifications described in Appendix 4 of I CAO Annex 16 (incorporated b y reference in §87.8). The test fuel must not have additives whose purpose is to suppres s smoke, such as organometallic compounds. (c) Prepare test engines by including accessories that are available with production engines if they

can reasonably

be expected to influence emissions. The test engine may not extract shaft power or bleed service air to provide power to auxiliary gearbox - mounted components required to drive aircraft s ys tems. (d) Test engines must reach a stead y operating temperature before the start of emission measurements. (e) In consultation with the EPA , the FAA may approve alternate procedures for measuring emissions as specified in this paragraph (e) . This might include testing and sampling methods, analy

tical techniques, and equipment specifications that differ from those specified in this part. Manufacturers and operato rs may request this approval by

sending a written request with supporting justification to the FAA and to the Designated EPA Program Officer . Such a request may

be approved only

if one of the following conditions is met: (1) The engine cannot be tested us ing the specified procedures.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 202 of 206 (2) The alternate procedure is shown to be equivalent to or better (e.g., more accurate or precise) than the specified procedure.Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 203 of 206 (f) The following landing and take - off (LTO) cy cles apply for emission testing and calculating weighted LTO values :

Table 1 to § 87.60

– LTO Test Cy cles

Mode Turboprop Subsonic Turbofan Supersonic Turbofan

Percent of Rated Output Tim e in

Mode (m inutes) Perc

ent of Rated Output Tim e in

Mode (m inutes) Percent of

Rated Output Tim e in

Mode (m inutes)

Take - o ff 100 0.5 100 0.7 100 1.2

Climb 90 2.5 85 2.2 65 2.0

Descent

— — — — 15 1.2 Approach 30 4.5 30 4.0 34 2.3 Taxi/ground idle 7 26.0 7 26.0 5.8 26.0Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 204 of 206 (g) Engines compl y with an applicable standard if the testing results show that the engine ty pe certificate family ’s characteristic level does not exceed the numerical level of that standard, as described in §87.60.

**§§87.61 -**  **87.63 —**  **[Removed]** 15. Remove §§87.61 - 87.6 3.

**§87.64 —**  **[Revised]** 16. Remove and reserve paragraph (a).

**§§87.65 -**  **87.71 —**  **[Removed]** 17. Remove §§87.65 - 87.71.

**Subpart H —**  **[Removed]**Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 205 of 206 18. Remove subpart H.

**PART 1068 --**  **GENERAL COMPLIANCE PROVISIONS FOR ENGINE PROGRAMS** 

19. The authorit y citation for part 1068 continues to read as follows: Authority : 42 U.S.C. 7 401 - 7671q .
**Subpart A —**  **[Amended]**

20. Amend §1068.1 by

revising paragraph (b) to read as follows: **§1068.1 Does this part apply to me?**

* * * * * (b) This part does not apply to an y of the following engine or vehicle categories: (1) L ig ht - duty

motor vehicles (see 40 CFR part 86).Deliberative and Confidential Do Not Cite or Quote EO12866_Aircraft_NOx_2060 - A070_FRN_20120501 .doc

Page 206 of 206 (2) Heav y - dut y motor vehicles and motor vehicle engines, except as specified in 40 CFR part 86. (3) Aircraft engines, except as specified in 40 CFR part 87. (4) Land - based nonroad comp ression - ig nition engines we regulate under 40 CFR part 89. (5) Small nonroad spark - ignition engines we regulate under 40 CFR part 90. (6) Marine spark - ig nition engines we regulate under 40 CFR part 91. (7) Locomotive engines we regulate under 40 CFR part 9 2. (8) Marine compression - ig nition engines we regulate under 40 CFR parts 89 or 94.

* * * * *