42638 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Parts 90 and 91

[FRL–5871–1]

Control of Air Pollution; Amendments

to Emission Requirements Applicable

to New Nonroad Spark Ignition

Engines At or Below 19 Kilowatts and

New Marine Spark Ignition Engines:

Provisions for Replacement Engines

and the Use of Two Stroke Engines on

Certain Nonhandheld Equipment

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Direct final rule.

SUMMARY: This final rule amends the

regulations applicable to spark-ignition

nonroad engines at or below 19

kilowatts (kW) and spark-ignition

marine engines to address situations

that have arisen regarding the

implementation of regulations

applicable to these nonroad engines. No

significant air quality impact is

expected from these amendments.

These amendments will allow engine

manufacturers to provide uncertified

engines to replace older engines when

major engine failures occur and no

suitable certified engine is available that

will fit in the nonroad equipment or

marine outboard or personal watercraft.

These amendments will also broaden a

provision in the existing regulations

which permits the use of two stroke

engines to power lawnmowers, subject

to a phase-out schedule described in the

regulations. The amendments will

extend this provision to other types of

nonhandheld equipment subject to

appropriate constraints.

DATES: This final rule is effective

October 6, 1997 unless adverse or

critical comments are received by

September 8, 1997. If the effective date

is delayed, timely notice will be

published in the Federal Register.

ADDRESSES: Written comments should

be addressed to: EPA Air Docket (LE–

131), Attention: Docket Number A–97–

25, room M–1500, 401 M Street, SW.,

Washington, DC 20460 (telephone 202–

260–7548, fax 202–260–4400). Please

contact the individual listed below

before submitting comments. Materials

relevant to this rulemaking are

contained in the docket listed above and

may be reviewed at that location from

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

through Friday. As provided in 40 CFR

part 2, a reasonable fee may be charged

by EPA for photocopying.

FOR FURTHER INFORMATION CONTACT: John

Guy, Office of Mobile Sources, Engine

Programs and Compliance Division

(6403J), 401 M Street SW., Washington,

DC 20460, 202–233–9276.

SUPPLEMENTARY INFORMATION:

I. Regulated Entities

Entities potentially regulated by this

action are those which manufacture and

use spark-ignition marine outboard or

personal watercraft (including jetboat)

engines and spark-ignition small

nonroad engines of 19 kW or less.

Regulated categories and entities

include:

Category Examples of regulated entities

Industry ............................................ Manufacturers and users of spark ignition engines of 19 kW or less.

Manufacturers and users of marine spark ignition outboard or personal watercraft engines.

This table is not intended to be

exhaustive, but rather provides a guide

for readers regarding entities likely to be

regulated by this action. This table lists

the types of entities that EPA is now

aware could potentially be regulated by

this action. Other types of entities not

listed in the table could also be

regulated. To determine whether your

product is regulated by this action, you

should carefully examine the

applicability criteria in §§ 90.1 and 91.1

of title 40 of the Code of Federal

Regulations. If you have questions

regarding the applicability of this action

to a particular product, consult the

person listed in the preceding FOR

FURTHER INFORMATION CONTACT section.

II. Obtaining Copies of the Regulatory

Language

Electronic Copies of Rulemaking

Documents

Electronic copies of the preamble and

the regulatory text of this rulemaking

are available via the Internet on the

Office of Mobile Sources (OMS) Home

Page (http://www.epa.gov/OMSWWW/).

Users can find Nonroad Engines and

Vehicles information and documents

through the following path once they

have accessed the OMS Home Page:

‘‘Nonroad Engines and Vehicles,’’

‘‘Equipment’’ or ‘‘Marine’’. Electronic

copies of the preamble and the

regulatory text of this rulemaking are

also available on the Office of Air

Quality Planning and Standards

(OAQPS) Technology Transfer Network

Bulletin Board System (TTN BBS).

Users are able to access and download

TTN BBS files on their first call. After

logging onto TTN BBS, to navigate

through the BBS to the files of interest,

the user must enter the appropriate

command at each of a series of menus.

The steps required to access information

on this rulemaking are listed below. The

service is free, except for the cost of the

phone call. TTN BBS: 919–541–5742

(1,200–14,400 bps, no parity, eight data

bits, one stop bit). Voice help: 919–541–

5384; Internet address: TELNET

ttnbbs.rtpnc.epa.gov; Off-line: Mondays

from 8:00–12:00 Noon ET.

1. Technology Transfer Network Top

Menu: Gateway to TTN Technical Areas

(Bulletin Boards)

2. TTN Technical Information Areas:

OMS—Mobile Sources Information

3. OMS BBS===Main Menu File

Transfers: Rulemaking & Reporting

4. Rulemaking Packages: Nonroad

5. Nonroad Rulemaking Area: File

Area #2 . . . Nonroad Engines

6. Nonroad engines

At this stage, the system will list all

available nonroad engine files. To

download a file, select a transfer

protocol which will match the terminal

software on your computer, then set

your own software to receive the file

using that same protocol. If unfamiliar

with handling compressed (i.e., ZIP’d)

files, go to the TTN topmenu, System

Utilities (Command: 1) for information

and the necessary program to download

in order to unZIP the files of interest

after downloading to your computer.

After getting the files you want onto

your computer, you can quit TTN BBS

with the <G>oodbye command.

III. Table of Contents

IV. Statutory Authority and Background

A. Statutory Authority

B. Background

V. Use of Uncertified Engines for

Replacement of Failed Engines in Older

Equipment and Marine Outboard Engines

and Personal Watercraft (Including Jetboats)

A. Discussion

B. Regulatory Approach

VI. Use of Two Stroke Engines in

Nonhandheld Equipment

A. Discussion

B. Regulatory Approach
Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations 42639

1The preamble to the final Marine SI rule (61 FR

52090) explains that for purposes of the Marine SI

rule, jetboats are considered as personal watercraft,

except where their engines are derived from

sterndrive or inboard type marinized automotive

blocks.

2The regulations also prohibit, in the case of any

person, the importation of Small SI engines and

Marine SI engines manufactured after the

applicable implementation date for the engine. The

regulations also prohibit the importation of

equipment containing Small SI engines unless the

engine is covered by a certificate of conformity. (40

CFR 90.1003(a)(1)(ii) and 40 CFR 91.1103(a)(1)(ii)).

3The Marine SI standards take effect with the

1998 or 1999 model year, depending upon

application, and then become progressively tighter

each year through 2006. Some engines certified

early in the program will be discontinued as the

standards tighten down. Consequently, Marine SI

engine manufacturers may need to provide

uncertified replacement engines for pre-regulatory

engines as well as for engines built to meet an

earlier standard. The Phase 1 Small SI standards

take effect with the 1997 or 1998 model year,

depending upon application, and remain the same

throughout Phase 1. At least during Phase 1, the

Small SI manufacturers will only need to provide

uncertified engines for pre-regulatory equipment.

4A two stroke or two cycle engine produces

power strokes twice as often as a four stroke or four

cycle engine, and therefore produces greater power

for a given weight. Also, two stroke engines are

lubricated by oil which is added to the fuel, while

four stroke engines require a crankcase full of oil

that must remain at the bottom of the engine.

Consequently, two stroke engines can be operated

multipositionally, but burn oil with their gasoline.

Four stroke engines can not typically be operated

multipositionally, but do not burn oil with their

fuel. The two additional strokes used by a four

stroke engine serve to push the exhaust gases out

of the cylinder before any fresh fuel and air is

admitted. In a two stroke engine, these extra strokes

do not occur and there is considerable mixing of

fresh fuel and air with the exhaust stream. The

presence of this unburned fuel along with the

byproducts of oil combustion cause two stroke

engines to exhibit high HC emissions.

VII. Final Action

VIII. Cost Effectiveness

IX. Administrative Requirements

A. Administrative Designation

B. Reporting and Recordkeeping

Requirements

C. Regulatory Flexibility

D. Submission to Congress and the General

Accounting Office

E. Unfunded Mandates Act

IV. Statutory Authority and

Background

A. Statutory Authority

Authority for the actions in this notice

is granted to EPA by sections 202, 203,

204, 205, 206, 207, 208, 209, 213, 215,

216, and 301(a) of the Clean Air Act as

amended (42 U.S.C. 7521, 7522, 7523,

7524, 7525, 7541, 7542, 7543, 7547,

7549, 7550, and 7601(a)).

B. Background

(1) Replacement Engines

EPA promulgated final regulations

applicable to spark-ignition nonroad

engines at or below 19kW (Small SI

engines) on July 3, 1995 (60 FR 34582,

codified at 40 CFR part 90) and final

regulations applicable to spark-ignition

marine outboard and personal

watercraft (including jetboat) engines

(Marine SI engines) on October 4, 1996

(61 FR 52088, codified at 40 CFR part

91) 1. The Small SI regulations take

effect with model year 1997 for the

majority of covered engines but not

until the 1998 model year for certain

higher displacement handheld engines.

The Marine SI rule takes effect with

1998 or 1999 engines, depending upon

their usage, and involves a corporate

average standard which tightens each

year through 2006. Both rules prohibit

engine manufacturers from introducing

into commerce any engine not covered

by a certificate of conformity issued by

EPA under the regulations (40 CFR

90.1003(a)(1)(i); 40 CFR

91.1103(a)(1)(i)). The rules also prohibit

equipment and vessel manufacturers

from introducing new nonroad

equipment and vessels into commerce

unless the engine in the equipment or

vessel is certified to comply with the

applicable nonroad emission

requirements (40 CFR 90.1003(a)(5); 40

CFR 91.1103(a)(5)) 2.

These prohibitions have caused or

will cause engine manufacturers to be

unable, in the event of a major engine

failure, to provide uncertified

replacement engines to repower preregulation nonroad equipment and

outboards and personal watercraft

(including jetboats), as well as

outboards and personal watercraft

(including jetboats) certified to an

earlier standard 3. Equipment and

engine manufacturers have indicated

that for many items of older equipment,

older outboards and older personal

watercraft (PWCs), no certified engine

is, or will be, available that will fit.

Amendments in this package will

alleviate this unintended side effect of

the current regulations for users of

Marine SI and Small SI engines.

While this rulemaking addresses the

needs of both the Marine SI and Small

SI engine manufacturers for a

replacement engine provision together,

there are differences in the products and

structure of the industries that should

be noted here. The majority of the

engines subject to the Marine SI rule are

outboard engines where the engine

manufacturer produces the complete

outboard engine containing both the

powerhead (engine) and the drive unit

(the lower part of an outboard engine

which contains the drive shaft and

exhaust system and holds the propeller).

Outboard engines are sold to consumers

and vessel manufacturers who affix

them to the outside rear of boats. With

respect to replacement engine

provisions for Marine SI engines in this

rulemaking, the term ‘‘engine’’ refers to

the powerhead of an outboard engine or

the analogous power unit of a personal

watercraft or jet boat.

Small SI engines can be split into two

factions. Nonhandheld engines are

produced by engine manufacturers and

sold to equipment manufacturers that

produce lawnmowers, tillers, garden

tractors, commercial mowing, farm and

construction equipment, small

generators and other such equipment.

Some of this equipment can be

extremely expensive relative to the cost

of a new engine. When engine failures

occur, equipment operators may desire

to replace the engine. Handheld engines

are generally produced by companies

that make chainsaws, string trimmers,

hedge trimmers, backpack blowers and

cut off saws. The handheld industries

are generally integrated, producing the

entire consumer product, while the

nonhandheld industries are not. For

handheld products, the engine

comprises a substantial portion of the

value of the equipment, and most

equipment is of low value relative to

engine repair or replacement costs.

Consequently, handheld engine

replacement is expected to be extremely

rare even in high end, professional

usage products.

(2) Use of Two Stroke Engines in

Nonhandheld Equipment

The Small SI final rule provides for

separate categories for handheld and

nonhandheld engines. Within each

category are different displacement

classes with different emission

standards. Handheld engines use

predominantly two stroke combustion

technology because of the need for lightweight engines that can be used

multipositionally, including upside

down and sideways, in handheld

equipment. Nonhandheld engines,

which are not so constrained by weight

and generally operate in limited

positions, are nearly all four stroke

combustion technology. Because of their

operating characteristics and design,

two stroke engines have much greater

hydrocarbon (HC) emissions than four

stroke engines.4 The standards for two

stroke and four stroke engines reflect

these differences—the nonhandheld

hydrocarbon plus oxides of nitrogen

standards are designed around four

stroke engines and are significantly

more stringent than the corresponding

handheld engine standards.
42640 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations

5For simplicity, from this point on in this

preamble discussion, unless otherwise specified,

the term ‘‘equipment’’ refers to both nonroad

equipment using handheld or nonhandheld engines

and to marine propulsion units including outboard

and jet engines and their drive units. Therefore, the

term ‘‘engine’’ as it pertains to marine engines will

mean the powerhead of an outboard engine or the

analogous power unit of a jet engine used in a

personal watercraft or jet boat.

6Copies of these letters are available in the docket

for today’s rulemaking.

7 No correponding provision is found in the

Marine SI rule, however this regulation is

essentially a codification of longstanding EPA

policies implementing the prohibitions of section

203(a) of the Act. These policies are similarly

applicable to marine engines. See, for example,

EPA’s letter of November 22, 1989 to the Public

Transportation Division of the City of High Point,

North Carolina. Copy in docket.

8Letters of December 11, 1989 and April 6, 1990

from Charles N. Freed, EPA to Mitsubishi Motors

America, Inc. Copies located in docket.

While nearly all nonhandheld

equipment is powered by four stroke

engines, some lawnmowers have

historically used two stroke engines. A

special provision was incorporated into

the final rule to ease the transition to

four stroke engines for the affected

manufacturers. See, 40 CFR 90.103(a)(3).

This provision allows certain

manufacturers of lawnmowers to

continue to use two stroke engines,

subject to a declining production cap,

up through model year 2002, provided

the engines are certified to meet the

handheld standards. This provision is

discussed in greater detail in the

preamble to the final rule (60 FR 34582,

34593–34594 (July 3, 1995)).

Recently, EPA has learned that some

very low volume, specialized

nonhandheld equipment has also

historically been produced with two

stroke engines. This equipment would

require substantial modification and

redesign to utilize four stroke engines.

An amendment in this package will

extend the flexibility provided for

manufacturers of two stroke

lawnmowers to manufacturers of other

nonhandheld equipment, provided the

equipment manufacturer can

demonstrate to EPA its inability to

readily convert to four stroke engines. If

EPA approval is granted, this provision

would then allow those equipment

manufacturers to have the same

opportunities to modify their equipment

to use four stroke engines that the two

stroke lawnmower manufacturers have.

This provision is expected to affect a

very small number of low volume,

specialty equipment manufacturers.

V. Use of Uncertified Engines for

Replacement of Failed Engines in Older

Equipment and Marine Outboard

Engines and Personal Watercraft

(Including Jetboats)

A. Discussion

As indicated above, the Marine SI and

the Small SI rules prohibit the

introduction into commerce of any new

nonroad engines subject to those

regulations unless the engines are

covered by a certificate of conformity

issued by EPA. According to letters

received from Small SI and Marine SI

engine manufacturers, the Engine

Manufacturers Association and a

number of nonroad equipment

manufacturers, these prohibitions pose a

hardship to engine manufacturers and

their customers when equipment

produced before the applicable effective

date of the rules, and therefore equipped

with uncertified engines, or marine

equipment with engines certified to an

earlier standard, experiences

catastrophic engine failures. 5, 6 In such

cases, particularly for newer equipment

still under warranty, engine

manufacturers desire to be able to

provide an entire new engine. However,

certified engines that will fit in preregulatory equipment or equipment

subject to an earlier standard will not

always be available for reasons

discussed below.

Under current regulations, an

equipment owner who experiences a

major engine failure with an uncertified

engine or a marine engine certified to an

earlier standard is limited to the

following options. It can:

(1) Obtain a new, uncertified engine

or a marine engine certified to an earlier

standard from a manufacturer’s or

distributor’s inventory. Engine

manufacturers have informed us that

because of the many variations of

engines they produce, inventorying

quantities of older marine engines or

uncertified engines produced before the

effective date of the regulations for

anticipated replacement purposes

would be impractical and prohibitively

expensive. The Small SI regulations at

40 CFR 90.1003(b)(4) specifically

provide

* * * Nonroad vehicle manufacturers may

continue to use noncertified nonroad engines

built prior to the effective date until

noncertified engine inventories are depleted;

however, stockpiling (i.e. build up of an

inventory of engines outside of normal

business practices) of noncertified nonroad

engines will be considered a violation of this

section.7

EPA does not regard engines

inventoried beyond the end of a model

year for reasonable anticipated warranty

needs to be ‘‘stockpiled’’. However,

because of the manufacturers’

understandable desire to avoid

inventory costs, this option would not

likely be able to supply significant

numbers of replacement engines.

(2) Obtain a used or remanufactured

engine. EPA has no restrictions on the

installation of used or remanufactured

engines in equipment that predates the

relevant effective date of the Marine SI

or Small SI rule. Further, marine

engines certified to an earlier standard

may be remanufactured to be identical

to a certified configuration of the same

or later model year and used for

replacement applications. However,

engine and equipment manufacturers

have informed us that there is no

significant rebuilding industry for Small

SI engines as there is for categories of

larger engines. Rebuilding of marine

engines is more common, however

marine engine manufacturers have

informed us that rebuilt engines are not

commonly available to replace engines

that are less than approximately five

years old and even then may not be

widely available for some

configurations.

(3) Repair the individual engine using

a ‘‘short block’’. In this case, a new

cylinder block with pistons, connecting

rods, crankshaft and timing gear (a

‘‘short block’’) serves as a repair part.

EPA has a long standing policy that a

short block is not a new engine and will

not result in a new engine when

combined with the used components

from the original engine.8

(4) Replace the failed engine with a

new, certified engine. In this case, a new

certified engine is installed in place of

the uncertified engine or older marine

engine. This is the most desirable option

from the Agency’s point of view,

however in many cases certified engines

will not fit in equipment that may have

been designed around uncertified

engines or older marine engines.

Engines certified to the latest standards

may be equipped with additional or

different components which impact the

external dimensions of or connections

to the engines and therefore limit their

abilities to fit in engine compartments of

older equipment.

From the engine and equipment

manufacturers’ point of view, all of the

current options described above have

limitations. The manufacturers point to

long standing industry practices of

being able to provide complete, new

replacement engines expeditiously

when catastrophic engine failures occur,

particularly when those failures affect

equipment in the first few years of use,

and even more particularly when it may

still be under warranty. Many of the

Small SI engines are used in specialized

agricultural or construction equipment.

Timely repairs can be crucial when the

broken engine is in a piece of
Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations 42641

construction equipment and a

construction project sequence is being

held up. Many Marine SI engines are

used in commercial fishing or tourist

vessels where downtime means loss of

income to the operator. Also, many

users of Small SI powered equipment

and Marine SI engines are small

businesses who can not afford the

additional downtime and expense that

may be associated with waiting for an

engine overhaul. Further, because of the

diversity of nonroad products using

Small SI engines, suitable replacement

or rental nonroad equipment is not

always readily available. The equipment

and engine manufacturers have also

explained that the need to repair an

engine using a short block leads to

delays and extra costs that would not

occur if the old, broken engine could

simply be exchanged for a new

uncertified engine. They argue that the

short block option requires greater skills

and facilities and more time to complete

than an engine swap and produces an

engine that is not a factory-tested and

adjusted unit. From an air quality

standpoint, they argue that an entire

new uncertified engine might be better

than an old engine repaired with a new

short block or replaced with a

remanufactured engine.

The two major U.S. manufacturers of

outboard marine engines have indicated

to EPA that replacement powerheads

comprise less than one percent of

annual U.S. sales. Engine replacement is

rare in walk-behind lawnmowers which

is the most common application of

nonhandheld Small SI engines. Further,

the two major manufacturers of walkbehind mower engines have indicated

that their certified configurations will fit

older mower applications. One of these

companies has told EPA that

replacement engines are less than one

percent of its business. Another Small

SI engine manufacturer has indicated to

EPA that only about two percent of its

annual sales are for replacement

purposes, and that many of these will be

certified engines. This particular

manufacturer pointed out that its sales

of replacement engines are probably

higher than the industry average,

because it produces mostly larger, more

expensive nonhandheld engines used in

‘‘high end’’ equipment where the value

of the equipment drives the decision

toward replacing the engine rather than

the entire piece of equipment.

Engine manufacturers are still

producing uncertified complete engines

for export, or are sometimes willing to

produce small quantities for domestic

replacement purposes, and desire to be

able to sell them (or provide them under

warranty) for replacement purposes.

EPA notes that the California Air

Resources Board, in its regulation of

both Small SI engines and large nonroad

compression ignition engines, permits

the introduction into commerce of

uncertified engines for replacement

purposes up through January 1, 1999

and January 1, 2000 respectively.

(California does not regulate Marine SI

engines.) In a direct final rulemaking

very similar to today’s rulemaking that

was published on November 12, 1996

(61 FR 58102), EPA established

provisions to permit the sale of

uncertified large compression ignition

(Large CI) nonroad engines for

replacement purposes in pre-regulation

equipment based on considerations

consistent with those described above.

The Agency is amending the Small SI

and Marine SI regulations to permit the

sale of uncertified replacement engines

in those cases where a new, certified

engine is not available with appropriate

physical or performance characteristics

to repower the equipment, as a

reasonable way to balance achieving the

air quality benefits of the Small SI and

Marine SI programs with the desire to

minimize disruption to equipment

owners accustomed to using

replacement engines. However, if a

certified engine is available with

sufficient torque and horsepower that

will fit in the equipment, then the

certified engine should be used so that

the goals of the Clean Air Act to convert

the fleet of Small SI and Marine SI

engines to certified status are promptly

fulfilled. The amended Small SI

regulations will permit a nonroad

engine in a piece of equipment that

predates the applicable implementation

date of the Small SI rule to be replaced

with a new, uncertified engine.

Similarly, the amended Marine SI

regulations will permit the powerhead

in an outboard or PWC (including a

jetboat) that predates the applicable

implementation date of the Marine SI

rule to be replaced with a new,

uncertified engine. The amended

Marine SI regulation will also permit

powerheads certified in an earlier year

of the phase in, but not certified in the

then current model year to be replaced

with a new, uncertified powerhead

provided the powerhead is of a

configuration identical in all material

respects to that of the failed powerhead

or a later model year powerhead.

Given the small percentage of engines

that will likely require replacement, the

fact that some of those will get replaced

with certified engines and the

likelihood that a new replacement

engine will be at least as clean as a

remanufactured engine or an engine

repaired with a short block, EPA

concludes that permitting the use of

uncertified replacement engines in these

situations will not pose an

environmental threat or reduce the

environmental benefit of the Small SI or

Marine SI rules. Further, EPA concludes

that it would be unreasonable to impose

upon equipment operators, the costs

associated with having to replace failed

engines with certified engines, where

appropriate certified engines are not

available for pre-regulatory equipment

or for marine engines built to less

stringent standards.

B. Regulatory Approach

EPA is implementing this provision

through amendments to the Prohibited

Acts sections at 40 CFR 90.1003 and

91.1103. To ensure that the replacement

engine provision is properly used, these

amendments will include controls

nearly identical to those adopted in the

direct final rule for Large CI engines

referenced above. EPA is requiring that

any uncertified Small SI engine

produced for replacement purposes be

clearly labeled as such and that such

label include a warning that any use of

the engine in post-regulation nonroad

equipment constitutes a violation of the

Act subject to civil penalty. EPA is

adopting these same provisions for

replacement marine engines except that

the labeling requirement will be

different to reflect the phase in of the

marine standards. In this case the label

must reflect that the engine may be used

to replace only pre-regulation engines or

engines certified for a model year that

is no later than the last year in which

the replacement engine was certified.

For both Marine SI and Small SI

engines, EPA is requiring that the

manufacturer ascertain that no certified

engine with appropriate characteristics

is available that will fit in the

equipment and that the manufacturer or

its agent takes possession of the old

engine. Requiring the equipment owner

to ‘‘turn in’’ an old engine provides the

manufacturer or its agent with a clear

opportunity to confirm the existence of

an old engine, evaluate its configuration

and make sure the appropriate

replacement engine is supplied. Unlike

in the Large CI replacement engine rule,

we are providing that EPA may approve

alternative control measures to the

requirement that the manufacturer or its

agent take possession of the old engine

when selling an uncertified replacement

engine. We believe this flexibility may

be necessary to accomodate some

distribution channels through which

small engines and marine engines may

be sold if these channels are shown to

be unable to accomodate old engines.

EPA would approve alternate
42642 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations

approaches if persuaded that the

approach provides equivalent control to

the requirement to turn in the old

engine to the manufacturer or its agent.

VI. Use of Two Stroke Engines in

Nonhandheld Equipment

A. Discussion

Presently, the Small SI rule contains

provisions at 40 CFR 90.103(a)(3) and

90.107(e)(1) through (5) to permit

manufacturers of two stroke lawnmower

engines to continue to sell those engines

through model year 2002 provided they

can certify them to the handheld

standards appropriate for their

displacement. These provisions require

the engine manufacturer to establish a

baseline annual sales number based on

their 1992 through 1994 sales of such

engines and then comply with a

declining production cap through the

2002 model year. In 2003, the engines

would have to meet the appropriate

nonhandheld standards, either those

contained in the current rule or in any

superseding rule.

As discussed in the preamble to the

final Phase 1 rule, these provisions were

established to minimize the economic

hardship of the small engine rule on two

stroke lawnmower engine and

equipment manufacturers and to

provide adequate lead time for

compliance with the nonhandheld

standards. See 60 FR 34593–34594. EPA

incorporates that discussion by

reference. Recently, EPA has become

aware of a very small manufacturer (less

than 100 units per year) of specialty

lawn care equipment who has

historically used two stroke engines on

its products, was unaware of the

promulgation of the Phase 1 rule until

recently, and would face severe lead

time problems and economic hardship if

it had to quickly switch over to four

stroke engines to power its equipment.

Its equipment will require substantial

redesign to use four stroke engines for

which additional lead time is necessary.

EPA believes there may be other small

entities with similar situations but does

not believe there are any that produce

substantial volumes of equipment. In

the case of small volume manufacturers,

the per unit cost of forcing equipment

redesign to accommodate four stroke

engines is especially high. EPA has

concluded that it is equitable and

appropriate to treat such companies in

the same manner as the two stroke

lawnmower engine manufacturers are

being treated and has determined it is

appropriate to expand the provisions

providing relief for lawnmowers to

encompass any nonhandheld equipment

that has historically been produced with

two stroke engines, provided that the

manufacturer can demonstrate to EPA

that no suitable four stroke engine is

available and that substantial redesign

of the equipment requiring additional

lead time to avoid economic hardship

would be necessary to accommodate a

four stroke engine. Without providing

relief to address these situations, the

cost of compliance with the

nonhandheld standards would be

unreasonably high. In order to avoid

this result, EPA has determined that it

is more reasonable to provide a

relaxation of standards in these

situations.

With regard to the declining annual

cap imposed in § 90.107(e) upon the

lawnmower engine manufacturers, EPA

believes that a declining cap may not be

appropriate or necessary for specialty

equipment whose production is already

very low, and could serve to eliminate

any benefit that the provision may offer

to a small equipment manufacturer,

because it might force them to produce

both two and four stroke versions at the

same time to maintain sales levels.

Therefore, EPA is adding a provision at

§ 90.107(g) that would allow the cap to

be waived by EPA upon a

demonstration by the engine or

specialty equipment manufacturer that

compliance with the cap would not be

economically feasible. This waiver

authority would not be extended to the

high volume lawnmower manufacturers

currently covered under § 90.107(e), nor

would it be extended to any other highvolume nonhandheld engine

manufacturer, in the unlikely event that

one might come forward and seek relief

to enable it to use a two stroke engine.

B. Regulatory Approach

The regulatory change will be

implemented by modifications to

sections on Exhaust Emission Standards

(§ 90.103) and the Application for

Certification (§ 90.107). The relevant

provision at § 90.103(a)(3) previously

applied only to manufacturers of two

stroke lawnmowers and will now be

expanded to include ‘‘lawnmowers or

other nonhandheld equipment’’. In

§ 90.107, a new paragraph will be added

to provide the criteria by which EPA

can approve the use of two stroke

engines in nonhandheld equipment

other than lawnmowers. Because the

provision for two stroke engines in

lawnmowers was based on substantial

information about the impact of the

Small SI nonhandheld standards on

certain manufacturers and because EPA

desires nonhandheld equipment

manufacturers to use engines certified to

nonhandheld standards whenever

possible, EPA is including a

requirement, applicable to

manufacturers of nonhandheld

equipment other than lawnmowers, that

the equipment manufacturer must

demonstrate that a suitable engine

meeting nonhandheld standards is not

available to fit the existing equipment

design and that the equipment can not

be converted to accept an engine

meeting the nonhandheld standards

without substantial and costly redesign

for which additional lead time is

necessary.

The original regulation included a

declining production cap at § 90.107 to

provide for the phase out of two stroke

equipped lawnmowers. The declining

cap approach was designed to address

relatively high-volume two stroke

lawnmower manufacturers who would

be able to gradually shift their

production to four stroke mowers.

Nonhandheld equipment other than

lawnmowers that may qualify to use two

stroke engines is expected to be

produced only in very small quantities

and EPA believes that a declining

production cap may be unnecessary for

such equipment. Consequently, a

provision has been added to permit EPA

to waive the declining cap for

equipment other than lawnmowers, if

the equipment manufacturer can make a

demonstration that complying with the

cap would be economically infeasible.

VII. Final Action

EPA is publishing this rule without

prior proposal because EPA views these

amendments as noncontroversial and

anticipates no adverse comments.

However, in the event that adverse or

critical comments are filed, EPA has

prepared a Notice of Proposed

Rulemaking (NPRM) proposing the same

amendments. This NPRM is contained

in a separate document in this Federal

Register publication. The direct final

action will be effective October 6, 1997,

unless adverse or critical comments are

received by September 8, 1997. If EPA

receives adverse or critical comments on

either the relevant revisions discussed

in Section V or those discussed in

Section VI, the revisions described in

that section will be withdrawn. If

adverse or critical comments are

received on the revisions described in

both sections, then both sections will be

withdrawn before the effective date. In

case of the withdrawal of all or part of

this action, the withdrawal will be

announced by a subsequent Federal

Register document. All public

comments will then be addressed in a

subsequent final rule based on this

action serving as a proposed rule. EPA

will not provide a second comment

period on this action. Any parties
Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations 42643

interested in commenting on this rule

should do so at this time. If no adverse

comments are received, the public is

advised that the rule will be effective

October 6, 1997.

VIII. Cost Effectiveness

This rulemaking alters an existing

provision by allowing nonroad

equipment manufacturers to have

greater flexibility in their choice of

engines under certain circumstances. It

also permits nonroad engine

manufacturers to sell engines that the

original rule would not permit.

Therefore, because this rulemaking

alters existing provisions, and that

alteration provides regulatory relief,

there are no additional costs to original

equipment manufacturers associated

with this specific final action.

The costs and emission reductions

associated with the Small SI rule were

developed for the July 3, 1995 final

rulemaking. The costs and emission

reductions associated with the Marine

SI rule were developed for the October

4, 1996 rulemaking. We do not believe

the changes being implemented today

affect the costs and emission reductions

published as part of those rulemakings.

IX. Administrative Requirements

A. Administrative Designation

Under Executive Order 12866 (58 FR

51735, October 4, 1993), the Agency

must determine whether the regulatory

action is ‘‘significant’’ and therefore

subject to OMB review and the

requirements of the Executive Order.

The Order defines ‘‘significant

regulatory action’’ as one that is likely

to result in a rule that may: (1) Have an

annual effect on the economy of $100

million or more or adversely affect in a

material way the economy, a sector of

the economy, productivity, competition,

jobs, the environment, public health or

safety, or State, local, or tribal

governments or communities; (2) Create

a serious inconsistency or otherwise

interfere with an action taken or

planned by another agency; (3)

Materially alter the budgetary impact of

entitlements, grants, user fees, or loan

programs or the rights and obligations of

recipients thereof; or, (4) Raise novel

legal or policy issues arising out of legal

mandates, the President’s priorities, or

the principles set forth in the Executive

Order. It has been determined that this

rule is not a ‘‘significant regulatory

action’’ under the terms of Executive

Order 12866 and is therefore not subject

to OMB review.

B. Reporting and Recordkeeping

Requirements

This final rulemaking does not change

the information collection requirements

submitted to and approved by OMB in

association with the Small SI final

rulemaking (60 FR 34582, July 3, 1995)

or submitted to OMB in association with

the Marine SI final rulemaking (61 FR

52088, October 4, 1996). An Agency

may not conduct or sponsor and a

person is not required to respond to a

collection of information unless it

displays a currently valid OMB control

number. The OMB control numbers for

EPA’s regulations are listed in 40 CFR

part 9 and 48 CFR Chapter 15.

C. Regulatory Flexibility

EPA has determined that it is not

necessary to prepare a regulatory

flexibility analysis in connection with

this final rule. EPA has also determined

that this rule will not have a significant

adverse economic impact on a

substantial number of small entities.

This is because today’s rulemaking will

provide regulatory relief to both large

and small volume engine and

equipment manufacturers by permitting

greater flexibility in engine choices in

equipment. Moreover, the provisions in

this rulemaking simply permit longstanding business practices to continue.

D. Submission to Congress and the

General Accounting Office

Under 5 U.S.C. 801(a)(1)(A) as added

by the Small Business Regulatory

Enforcement Fairness Act of 1996, EPA

submitted 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 General Accounting

Office prior to publication of the rule in

today’s Federal Register. This rule is

not a ‘‘major rule’’ as defined by 5

U.S.C. 804(2).

E. Unfunded Mandates Act

Under Section 202 of the Unfunded

Mandates Reform Act of 1995

(‘‘Unfunded Mandates Act’’), signed

into law on March 22, 1995, EPA must

prepare a budgetary impact statement to

accompany any proposed or final rule

that includes a Federal mandate that

may result in estimated costs to State,

local, or tribal governments in the

aggregate, or to the private sector, of

$100 million or more. Under Section

205, EPA must select the most cost

effective and least burdensome

alternative that achieves the objectives

of the rule and is consistent with

statutory requirements. Section 203

requires EPA to establish a plan for

informing and advising any small

governments that may be significantly

or uniquely impacted by the rule. EPA

has determined that the action proposed

today does not include a Federal

mandate that may result in estimated

costs of $100 million or more to either

State, local, or tribal governments in the

aggregate, or to the private sector.

Therefore, EPA has not prepared a

budgetary impact statement for this rule.

List of Subjects in 40 CFR Parts 90 and

91

Environmental protection, Air

pollution control, Confidential business

information, Imports, Labeling, Nonroad

source pollution, Reporting and

recordkeeping requirements, Research,

Warranties.

Dated: July 30, 1997.

Carol M. Browner,

Administrator.

For the reasons set out in the

preamble, title 40, chapter I, of the Code

of Federal Regulations, is amended as

follows:

PART 90—CONTROL OF EMISSIONS

FROM NONROAD SPARK-IGNITION

ENGINES

1. The authority citation for part 90

continues to read as follows:

Authority: Sections 203, 204, 205, 206,

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

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

7522, 7523, 7524, 7525, 7541, 7542, 7543,

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

2. Section 90.103 is amended by

revising paragraph (a)(3) to read as

follows:

§ 90.103 Exhaust emission standards.

(a) * * *

(3) Notwithstanding paragraph (a)(2)

of this section, two stroke engines used

to power lawnmowers or other

nonhandheld equipment as allowed in

§ 90.107 (e), (f) and (h) may meet class

III, IV, or V standards until model year

2003.

* * * * *

3. Section 90.107 is amended by

adding a new paragraph (h) to read as

follows:

§ 90.107 Application for certification.

* * * * *

(h)(1) The Administrator may, upon

receipt of a written request from an

equipment manufacturer, accompanied

by sufficient documentation, permit two

stroke engines produced for

nonhandheld equipment other than

lawnmowers to meet the standards

specified in § 90.103(a)(3) under the

schedule outlined in paragraph (e) of

this section. The equipment

manufacturer must demonstrate to the

satisfaction of the Administrator that:
42644 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations

(i) Four stroke engines for such

equipment are not available with

suitable physical or performance

characteristics; and

(ii) The equipment can not be

converted to use four stroke engines

without substantial redesign for which

additional lead time is necessary to

avoid economic hardship.

(2) The Administrator may waive the

phase-in percentages of paragraphs

(e)(3) and (e)(4) of this section for

engines used in low volume

nonhandheld equipment other than

lawnmowers where the equipment

manufacturer demonstrates to the

satisfaction of the Administrator that

compliance with the production cap is

not economically feasible.

4. Section 90.1003 is amended by

adding paragraph (b)(5) to read as

follows:

§ 90.1003 Prohibited acts.

* * * * *

(b) * * *

(5) A new nonroad engine, intended

solely to replace an engine in a piece of

nonroad equipment that was originally

produced with an engine manufactured

prior to the applicable implementation

date as described in § 90.2, § 90.103 and

§ 90.106, shall not be subject to the

requirements of § 90.106 or prohibitions

of paragraphs (a)(1) and (b)(4) of this

section provided that:

(i) The engine manufacturer has

ascertained that no engine produced by

itself or the manufacturer of the engine

that is being replaced, if different, and

certified to the requirements of this

subpart, is available with the

appropriate physical or performance

characteristics to repower the

equipment; and

(ii) Unless an alternative control

mechanism is approved in advance by

the Administrator, the engine

manufacturer or its agent takes

ownership and possession of the engine

being replaced; and

(iii) The replacement engine is clearly

labeled with the following language, or

similar alternate language approved in

advance by the Administrator:

This engine does not comply with federal

nonroad or on-highway emission

requirements. Sale or installation of this

engine for any purpose other than as a

replacement engine in a nonroad vehicle or

piece of nonroad equipment whose original

engine was not certified is a violation of

Federal law subject to civil penalty.

PART 91—CONTROL OF EMISSIONS

FROM MARINE SPARK-IGNITION

ENGINES

5. The authority citation for part 91

continues to read as follows:

Authority: Sections 203, 204, 205, 206,

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

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

7522, 7523, 7524, 7525, 7541, 7542, 7543,

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

6. Section 91.1103 is amended by

adding paragraph (b)(4) to read as

follows:

§ 91.1103 Prohibited acts.

* * * * *

(b) * * *

(4) A new marine spark-ignition

engine intended solely to replace an

engine in an outboard engine, or other

engine to which this Part is applicable

as determined by §§ 91.1, 91.101, 91.106

that was originally produced with an

engine manufactured prior to the

applicable implementation date as

described in §§ 91.2, and 91.106 and

91.205(a)(1), or that was originally

produced in a model year in which less

stringent emission standards under this

part were in effect shall not be subject

to the requirements of § 91.106 or the

prohibitions of paragraph (a)(1) of this

section provided that:

(i) The engine manufacturer has

ascertained that no engine produced by

itself or the manufacturer of the engine

that is being replaced, if different, and

certified to the requirements of this

subpart, is available with the

appropriate physical or performance

characteristics to repower the outboard,

personal watercraft or jetboat; and

(ii) Unless an alternative control

mechanism is approved in advance by

the Administrator, the engine

manufacturer or its agent takes

ownership and possession of the engine

being replaced; and

(iii) The replacement engine is clearly

labeled with the following language, or

similar alternate language approved in

advance by the Administrator:

This engine does not comply with Federal

nonroad or on-highway emission

requirements. Sale or installation of this

engine for any purpose other than as a

replacement engine in a marine vessel whose

original engine was not certified, or was

certified to less stringent emission standards

than those that apply to the year of

manufacture of this engine, is a violation of

Federal law subject to civil penalty; and

(iv) Where the replacement engine is

intended to replace an engine built after

the applicable implementation date as

described in §§ 91.2, 91.106 and

91.205(a)(1), but built to less stringent

emission standards than are currently

applicable, the replacement engine shall

be identical in all material respects to a

certified configuration of the same or

later model year as the engine being

replaced.

[FR Doc. 97–20821 Filed 8–6–97; 8:45 am]

BILLING CODE 6560–50–P