### Results of **EPA’s Section 610 Review of**  **the Final Rule for Control of** 

**Emissions of Air Pollution from Nonroad Diesel Engines and Fuel**

**EPA Office of Transportation and Air Quality**

**September , 2014**  On June 29, 2004, (6 9 FR 38958 ), EPA published emission standards for nonroad diesel engines to reduce tailpipe emission s. EPA implemented this rule primarily to significantl y reduce emissions of diesel particulate matter (PM) emissions and of nitrogen oxides (NOx) , a contributor to ozone formation. The rulemaking also required refiners to very significantl y reduce the sulfur content of the nonroad diesel fuel they produce , to minimize the damaging effects of diesel sulfur content on the new catal yt ic sy stems manufacturers would be using to meet the stringent emission standards. Pursuant to Section 610 of the Regulatory Flexibility

Act (RFA) , EPA has completed a review of this rule to determine whether the provisions that could affect small entities should be continued without change, or should be rescinded or amended to minimize adverse economic impacts on small entities. As discussed below, we have concluded that no changes in the rule are warranted. Background As EPA began to develop the rule, we formall y evaluated the potential impacts of the program on small businesses according to the requirements of the Small Business Regulatory

Enforcement Fairness Act (SBREFA) , which is part of the Regulatory Flexibility

Act. During this process, we asses sed the potential impact of the rule on the ty pes of small companies that would be directl y affected b y the rule

– nonroad diesel engine manufacturers, nonroad diesel e qu ipment manufacturers, and the diesel fuel production and distribution industry (inclu ding diesel fuel refiners , importers , distributors , and marketers )

. EPA determined that several companies in these categories met the SBA criteria as small entities, and we took the additional steps specified b y SBREFA to identify

and address concerns of these small entities. A federal interagency Small Business Advocacy Review (SBAR) P anel convened and considered the available information from small entities and other sources

. The Panel made several recommendations for EPA to consider in the rule, and we proposed and took comment on these recommendations

. In the final rule , EPA adopted most of the recommendations of the P anel , finalizing special provisions for manufacturers of each horsepower category of nonroad engines and transition and hardship provisions for small manufacturers of nonroad equipment. In addition, EPA also finalized transition provisions for small diesel fuel refiners and importers, and hardship provisions for all diesel fuel refiners and importers

. Although we did not conclude th at special provisions were warranted for small diesel fuel distributors and marketers, we did finalize general provisions to relieve the compliance burden.Discussion of the Five Statutory Factors As discussed below, EPA has reviewed the 2004 Nonroad Diesel Engines and Fuel Rule with respect to the five factors set forth in Section 610 of the RFA.
1. Continued Need for the R ule One of the factors that must be considered in a Section 610 review is the continued need for the rule under review. Emissions from nonroad diesel vehicles and their fuel contribute to ambient levels of ozone and PM, pollutants for which EPA has established health

- based National Ambient Air Quality Standards (NAAQS). These pollutants are linked with respiratory and/ or cardiovascular problems and other adverse health impacts leading to increased medication use, hospital admissions, emergency department visits, and premature mortality. Over 1 49 million people currently live in areas designated nonattainment for one or more of the current NAAQS. 1 Pollutant reductions from this rule are very large and continue to protect public health, improve air quality , and help states meet national air quality standards. Specificall y, we projected that by 2030, when the fleet will have largel y turned over, the rule will reduce NOx annually by over 738,000 tons and PM by 129,000 tons. The provisions of the rule appl yi ng to all nonroad engine manufacturers and diesel fuel refiners and their related industries have proven to be feasible and effective. EPA concludes that the rule continues to be necessary , feasible, and effective

. 2. Nature of Complaints or C omments Received Concerning the R ule
EPA did not receive any comments durin g the public comment period for this Section 610 review

. 3. Complexity

of the R ule The Agency

must also consider the complexity of the rule under review. Although cost

- effectively achieving the air pollution improvements of the program required us to establish a number of regulatory provisions, we carefully

coordinated the various requirements and worked with industry participants, large and small, to facilitate implementation. T he rule also included a number of provisions aimed at easing the burden of compliance for all a ffected nonroad engine and equipment manufacturers and nonroad diesel fuel refiners, including small refiners.
4. Extent to which the rule overlaps, duplicates, or conflicts with other Federal, State, or local government rules The Agency

must also cons ider the extent to which the rule overlaps, duplicates, or conflicts with other Federal, State, or local government rules. As with previous diesel

1 Summary Nonattainment Area Population Exposure Report, current as of December 1 3 , 201 3 at: http://www.epa.gov/oar/oaqps/greenbk/popexp.html and contained in Docket EPA

- HQ

- OAR

- 2011

- 0135.engine and fuel regulations, w e specifically designed the requirements and phase

- in schedule for the nonroad diesel engine and fuel program to build on the existing Federal programs and to mesh with and complement diesel engine

- related programs in California and other states. Similarly, we designed the phase

- in for the diesel fuel sulfur requirements and the sm all refiner provisions to transition smoothly and to coexist with the earlier Tier 2 gasoline sulfur and highway diesel fuel sulfur requirements , so that refiners could integrate the implementation of both programs. We are not aware of any overlap, duplication, or conflict with other similar programs administered by EPA or other agencies.
5

. Relevant Changes to Technology , Economic Conditions, or Other F actors Finally , the Agency

must consider the degree to which t echnology , economic conditions, or other factors have changed in the area affected by the rule under review. R efinery diesel sulfur reduction technology has continued to evolve over the past decade. In addition, heav y- duty engine manufacturers have continuously improved their engine technologies, including emission

- related technologies, over the ye ars. EPA does not believe that these changes , or the general economic fluctuations that the refining and engine/vehicle manufacturing industries have faced, h ave introduced an y s ignificant additional burdens on sm all entit ies subject to this rule. Conclusion Based on EPA’s Section 610 review of the 200 4 Nonroad Diesel Engine and Diesel Fuel Sulfur final rule , as discussed in this document, EPA is not making an y amendments to the rule. As part of an y future rulemakings related to these industries, EPA will continue to work with small

- entity representatives to minimize any potential unfavorable impacts on these companies while meeting the need for emission re ductions.