```

[Federal Register Volume 76, Number 68 (Friday, April 8, 2011)]
[Rules and Regulations]
[Pages 19830-19874]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7910]

[[Page 19829]]

Vol. 76

Friday,

No. 68

April 8, 2011

Part II

Environmental Protection Agency

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40 CFR Parts 85 and 86

Clean Alternative Fuel Vehicle and Engine Conversions; Final Rule

Federal Register / Vol. 76 , No. 68 / Friday, April 8, 2011 / Rules 
and Regulations

[[Page 19830]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 85 and 86

[EPA-HQ-OAR-2009-0299; FRL-9289-7]
RIN 2060-AP64

Clean Alternative Fuel Vehicle and Engine Conversions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is streamlining the process by which manufacturers of 
clean alternative fuel conversion systems may demonstrate compliance 
with vehicle and engine emissions requirements. Specifically, EPA is 
revising the regulatory criteria for gaining an exemption from the 
Clean Air Act prohibition against tampering for the conversion of 
vehicles and engines to operate on a clean alternative fuel. This final 
rule creates additional compliance options beyond certification that 
protect manufacturers of clean alternative fuel conversion systems 
against a tampering violation, depending on the age of the vehicle or 
engine to be converted. The new options alleviate some economic and 
procedural impediments to clean alternative fuel conversions while 
maintaining environmental safeguards to ensure that acceptable emission 
levels from converted vehicles are sustained.

DATES: The rule is effective April 8, 2011.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-HQ-OAR-2009-0299. All documents in the docket are listed in the 
http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in http://www.regulations.gov or in hard copy at the following 
location: 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 
holidays. The telephone number for the Public Reading Room is (202) 
566-1744.

FOR FURTHER INFORMATION CONTACT: Amy Bunker, Compliance and Innovative 
Strategies Division, U.S. Environmental Protection Agency, 2000 
Traverwood Drive, Ann Arbor, Michigan 48105. Telephone: (734) 214-4160. 
E-mail Address: bunker.amy@epa.gov.

SUPPLEMENTARY INFORMATION:

Affected Entities

    This action will affect companies and persons that manufacture, 
assemble, sell, import, or install alternative fuel conversions for 
light-duty vehicles, light-duty trucks, medium-duty passenger vehicles, 
and heavy-duty vehicles and engines. Such entities are categorized as 
follows:

 
----------------------------------------------------------------------------------------------------------------
                                                                                        Examples of potentially
                                   NAICS codes \1\                                         regulated entities
----------------------------------------------------------------------------------------------------------------
335312...............................................................................  Motor and Generator
                                                                                        Manufacturing.
336312...............................................................................  Gasoline Engine and
                                                                                        Engine Parts
                                                                                        Manufacturing.
336322...............................................................................  Other Motor Vehicle
                                                                                        Electrical and
                                                                                        Electronic Equipment
                                                                                        Manufacturing.
336399...............................................................................  All Other Motor Vehicle
                                                                                        Parts Manufacturing.
811198...............................................................................  All Other Automotive
                                                                                        Repair and Maintenance.
----------------------------------------------------------------------------------------------------------------

    This list is not intended to be exhaustive, but rather to provide a 
guide regarding entities likely to be affected by this action. To 
determine whether particular activities may be affected by this action, 
you should carefully examine the regulations. You may direct questions 
regarding the applicability of this action to the contact as noted 
above in FOR FURTHER INFORMATION CONTACT.
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    \1\ North American Industry Classification System (NAICS).
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Table of Contents

I. Introduction
II. Authority
    A. Vehicle and Engine Standards and Certification
    B. Useful Life
    C. ``Tampering'' Prohibition
    D. Exemption for Conversions
    E. Authority for Clean Alternative Fuel Conversions Program
III. Program Design Elements Applicable to All Clean Alternative 
Fuel Conversions
    A. Clean Alternative Fuel Conversions
    B. Good Engineering Judgment
    C. Vehicle/Engine Groupings and Emission Data Vehicle/Engine 
Selection
    D. Mixed-Fuel and Dual-Fuel Conversions
    E. Vehicle/Engine Labels, Packaging Labels, and Marketing
    F. Compliance
    1. Emission Standards
    a. Light-Duty and Heavy-Duty Chassis Certified Vehicle Gross 
Vehicle Weight Classes and Alternative Fuel Exceptions
    b. Heavy-Duty Engine Types and Gross Vehicle Weight Classes
    c. Dual-Fuel and Mixed-Fuel Standards
    2. Useful Life
    3. On Board Diagnostics (OBD)
    4. Durability Testing
    5. Warranty
    6. Other Provisions Applicable to Conversion Manufacturers
    7. Misapplication
    G. Regulatory Procedures for Small Volume Manufacturers, Small 
Volume Test Groups, and Small Volume Engine Families
    1. Definition of Small Volume Manufacturers, Small Volume Test 
Groups, and Small Volume Engine Families
    a. Light-Duty and Heavy-Duty Chassis Certified Vehicles
    b. Heavy-Duty Engines
    2. Assigned Deterioration Factors
    3. Changes in Small Volume Status
IV. Clean Alternative Fuel Conversion Program Details
    A. New Vehicle/Engine Clean Alternative Fuel Conversion 
Certification Program
    1. Applicability
    a. New Vehicles and Engines
    b. Older Vehicles and Engines
    2. Test Groups, Engine Families, and Evaporative/Refueling 
Families
    a. Test Groups for Light-Duty and Heavy-Duty Chassis Certified 
Vehicles
    i. Small Volume Manufacturers and Small Volume Test Groups
    ii. Large Volume Manufacturers
    b. Engine Families for Heavy-Duty Engines
    i. Small Volume Manufacturers and Small Volume Engine Families
    ii. Large Volume Manufacturers
    c. Evaporative/Refueling Families
    3. Certification Demonstration Requirements
    a. Exhaust Emissions
    i. Light-Duty and Heavy-Duty Chassis Certified Vehicles
    ii. Heavy-Duty Engines
    b. Evaporative/Refueling Emissions
    c. Durability Demonstration and Assigned Deterioration Factors
    i. Small Volume Manufacturers and Small Volume Test Groups/
Engine Families
    ii. Large Volume Manufacturers
    d. On-Board Diagnostics
    4. Certification Notification Process

[[Page 19831]]

    a. Certificate Expiration and Re-Certification
    5. In-Use Compliance
    B. Intermediate Age Vehicle and Engine Clean Alternative Fuel 
Conversion Program
    1. Applicability
    2. Test Groups, Engine Families, and Evaporative/Refueling 
Families
    a. Test Groups for Light-Duty and Heavy-Duty Chassis Certified 
Vehicles
    i. Small Volume Manufacturers and Small Volume Test Groups
    ii. Large Volume Manufacturers
    iii. Dual-Fuel and Mixed-Fuel Vehicle Carry Across
    b. Engine Families for Heavy-Duty Engines
    i. Small Volume Manufacturers and Small Volume Engine Families
    ii. Large Volume Manufacturers
    iii Dual-Fuel and Mixed-Fuel Engine Carry Across
    c. Evaporative/Refueling Families
    3. Demonstration Requirements
    a. Exhaust Emissions
    b. Evaporative/Refueling Emissions
    c. Durability Demonstration and Assigned Deterioration Factors
    i. Small Volume Manufacturers and Small Volume Test Groups/
Engine Families
    ii. Large Volume Manufacturers
    d. On-Board Diagnostics
    4. Notification Process
    a. Previously Certified Clean Alternative Fuel Conversion 
Systems
    5. In-Use Compliance
    C. Outside Useful Life Vehicle and Engine Clean Alternative Fuel 
Conversion Compliance Program
    1. Applicability
    2. Test Groups, Engine Families, and Evaporative/Refueling 
Families
    3. Demonstration Requirements
    4. Notification Process
    5. In-Use Compliance
V. Technical Amendments
    A. Exhaust Emission Technical Amendments
    1. NMHC Multiplicative Adjustment Factor
    2. HCHO Compliance Statement
    B. Evaporative Emission Technical Amendments
    C. Additional Technical Amendments
    D. Light-Duty Vehicle Greenhouse Gas Compliance for Clean 
Alternative Fuel Conversion
VI. Environmental Benefits
VII. Associated Costs for Light-Duty and Heavy-Duty Chassis 
Certified Vehicles
VIII. Associated Costs for Heavy-Duty Engines
IX. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act (RFA), as Amended by The Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 
U.S.C. 601 et seq.
    D. Unfunded Mandates Reform 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 and Safety 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 Populations and Low-Income 
Populations
    K. Congressional Review Act
    L. Administrative Procedure Act
X. Statutory Provisions and Legal Authority

I. Introduction

    With the vast majority of motor vehicles in the United States 
designed to operate on gasoline or diesel fuel, there has been a 
longstanding and growing interest by the public in clean alternative 
fuel conversion systems. These systems allow gasoline or diesel 
vehicles to operate on alternative fuels such as natural gas, propane, 
alcohol, or electricity. Use of alternative fuels opens new fuel supply 
choices and can help consumers address concerns about fuel costs, 
energy security, and emissions. The U.S. Environmental Protection 
Agency (EPA) is responsible for ensuring that all vehicles and engines 
sold in the United States, including aftermarket conversions, meet 
emission standards. EPA is streamlining the process by which 
manufacturers of clean alternative fuel conversion systems may 
demonstrate compliance with these vehicle and engine emissions 
requirements. The new options reduce some economic and procedural 
impediments to clean alternative fuel conversions while maintaining 
environmental safeguards to ensure that acceptable emission levels from 
converted vehicles and engines \2\ are sustained.
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    \2\ EPA's emission standards generally are associated with 
either vehicle (chassis) or engine test procedures, depending on the 
vehicle's gross vehicle weight rating and other factors. In this 
rulemaking, we may use the terms ``vehicle/engine,'' ``vehicle and 
engine,'' or ``vehicle or engine,'' when referring to concepts that 
are applicable to either the vehicle or engine depending on the 
applicable standard.
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    The conversion of vehicles or engines to operate on fuels other 
than those for which they were originally designed may yield certain 
benefits, but it also presents several legal and environmental 
concerns. The concerns stem from Clean Air Act (CAA, the Act) 
provisions intended to ensure that vehicles and engines remain clean 
throughout their useful life. To this end, the Act requires EPA to 
establish motor vehicle emission standards that apply throughout useful 
life, and to verify through issuance of a certificate of conformity 
that any vehicle or engine entered into commerce complies with the 
established emission standards.\3\ Once certified, the vehicle or 
engine generally may not be altered from its certified 
configuration.\4\ The CAA prohibition against alteration or 
``tampering'' is important because emission standards apply well beyond 
a vehicle's or engine's initial entry into commerce. It is extremely 
difficult to reconfigure integrated and sophisticated modern automotive 
systems, precisely designed to achieve low pollution levels over time, 
without negatively affecting their durability or emissions performance.
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    \3\ See CAA sections 202, 203, and 206.
    \4\ CAA section 203.
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    EPA has long recognized vehicle and engine alteration for the 
purpose of clean alternative fuel conversion as a special case because 
while improperly designed or installed conversions can increase 
emissions, properly engineered conversions can reduce, or at least not 
increase, emissions. Furthermore, use of alternative fuels can help 
achieve other goals such as diversifying the fuel supply through use of 
domestic energy sources. Therefore, EPA has established policies 
through which conversion manufacturers can demonstrate that the 
conversion does not compromise emissions compliance. The previous 
compliance requirements provided adequate environmental oversight but 
were not optimal for the conversions industry, and especially not for 
conversion of older vehicles and engines. To address these concerns, 
EPA is updating the regulations with practical, streamlined testing and 
administrative requirements that ensure long-term compliance without 
imposing unnecessary burden on converters. This action is also 
consistent with the President's January 18, 2011 Executive Order (EO) 
13563, ``Improving Regulation and Regulatory Review.'' Specifically, 
this EO directs, under Section 4, Flexible Approaches, that ``where 
relevant, feasible, and consistent with regulatory objectives, and to 
the extent permitted by law, each agency identify and consider 
regulatory approaches that reduce burdens and maintain flexibility and 
freedom of choice for the public.''
    On May 26, 2010, (75 FR 29606) EPA proposed rule changes to 
simplify and streamline the process \5\ by which manufacturers of clean 
alternative fuel conversion systems may demonstrate compliance with 
emissions requirements. EPA held a public hearing on the proposal on 
June 23, 2010 and

[[Page 19832]]

accepted public comment through July 23, 2010. Comments generally 
supported the proposed rule changes. These comments are available for 
public viewing in Docket EPA-HQ-OAR-2009-02999. Docket content can be 
viewed and/or downloaded at http://www.regulations.gov. Our responses 
to these comments are detailed in the Response to Comments document, 
which is available in the public docket and on our Web site.\6\ In this 
final rule we present background information and provide a description 
of the content, timing, and rationale for the final program. For 
background and details regarding the proposal, readers should consult 
the Notice of Proposed Rulemaking and related documents. EPA is 
finalizing the rule revisions largely as proposed. The revised program 
expands compliance options for conversion manufacturers and establishes 
less burdensome demonstration requirements that will nonetheless 
sustain EPA's oversight and longstanding commitment to the 
environmental integrity of clean alternative fuel conversions.
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    \5\ These regulations were originally promulgated on September 
21, 1994 (59 FR 48472) and located in 40 CFR part 85, subpart F.
    \6\ See Response to Comments document at http://www.regulations.gov under docket id EPA-HQ-OAR-2009-0299 or at 
http://www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm.
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    This new approach streamlines the regulatory process and introduces 
new flexibilities for conversion manufacturers, while ensuring that 
converted vehicles and engines retain acceptable levels of emission 
control. The revised program also addresses the uncertainty some 
converters may previously have experienced in determining whether a 
conversion constitutes tampering that could result in liability. EPA is 
revising the regulatory procedures in 40 CFR part 85, subpart F and 
part 86 to remain consistent with the CAA yet reflect the concept that 
it is appropriate to treat conversion requirements \7\ differently 
based on vehicle or engine age. The new program facilitates age-
appropriate testing and compliance procedures by placing alternative 
fuel conversions into one of three categories: (1) Conversions of 
vehicles or engines that are ``new and relatively-new'' (hereafter 
referred to as ``new'' solely for the purpose of this preamble),\8\ (2) 
conversions of vehicles or engines that are no longer new (i.e., no 
longer ``new and relatively-new'') but that still fall within EPA's 
definition of full useful life (``intermediate age'' vehicles and 
engines), and (3) conversions of vehicles or engines that are outside 
EPA's definition of useful life (``outside useful life'' vehicles and 
engines).
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    \7\ The term ``requirements'' is often used in the preamble and 
regulatory text for this rulemaking to refer to the notification, 
demonstration, and other regulatory provisions that a conversion 
manufacturer must satisfy to qualify under this rule for an 
exemption from the CAA tampering prohibition. These requirements 
only apply to conversion manufacturers seeking an exemption under 
this rule. Any person who does not obtain an exemption and whose 
conduct constitutes tampering is liable under the CAA.
    \8\ See Section IV.A and Sections 85.505 and 85.510. Sections 
85.505(b)(1) and 85.510 apply to ``new and relatively-new'' vehicles 
or engines, i.e., where the date of conversion is in a calendar year 
that is not more than one year after the original model year of the 
vehicle/engine. In this preamble, we refer to these ``new and 
relatively-new'' vehicles/engines as ``new'' only as a shorthand 
reference to the category of ``new and relatively-new'' engines/
vehicles. This shorthand use of ``new'' is not intended to mean that 
these vehicles/engines are ``new'' under the Act or any EPA 
regulations.
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    For the first category, conversions of new vehicles and engines, 
EPA believes that a requirement for a certificate of conformity remains 
appropriate because those vehicles and engines were entered into 
commerce as the subject of a recently issued Original Equipment 
Manufacturer (OEM) certificate of conformity. Such vehicles/engines 
typically have the majority of their useful life remaining. In 
addition, the condition of a relatively new vehicle or engine is still 
likely to be representative of the OEM vehicle or engine used in 
certification testing. A certification requirement for new vehicle and 
engine conversion also eliminates any perceived incentive that might 
otherwise exist for OEMs to convert a certified traditional 
configuration rather than to certify an alternative fuel configuration 
in the first place. Thus, EPA is finalizing procedures that largely 
retain the current certification protocols for manufacturers of 
conversion systems for new vehicles and engines, while providing some 
new flexibility in grouping such vehicles or engines for certification 
purposes. For the second category, intermediate age vehicles and 
engines, EPA is finalizing demonstration protocols whereby fuel 
conversion manufacturers demonstrate through testing that the converted 
vehicle or engine still meets applicable CAA section 202 emission 
standards. For the third category, vehicles and engines outside their 
full useful life, there is no longer an applicable standard to serve as 
a benchmark, because the CAA section 202 emission standards apply only 
within the useful life. Therefore, EPA sought comment on three options 
through which manufacturers of conversion systems for older vehicles 
and engines could demonstrate that the conversion is technically viable 
and will not increase emissions. EPA also offered an alternate approach 
for comment that would have created two subcategories of outside useful 
life vehicles/engines. EPA is finalizing the demonstration protocol 
described in the proposal as Option 3 and is adopting a single outside 
useful life category based on the current regulatory definition. 
Manufacturers of conversion systems designed for outside useful life 
vehicles and engines must submit detailed technical information 
describing the conversion system and a scan tool report showing that 
both vehicle/engine emission controls and the On-Board Diagnostic (OBD) 
system continue to work properly.
    The purpose of the revised program is to expand compliance options 
for conversion manufacturers while sustaining EPA's oversight and 
longstanding commitment to the environmental integrity of clean 
alternative fuel conversions. Consistent with this intent and with the 
CAA, EPA requires any conversion to be technically sound, regardless of 
the vehicle or engine age category, and will continue to hold the 
conversion manufacturer accountable for acceptable emissions 
performance once the converted vehicle or engine is in customer 
service. EPA will employ compliance tools as appropriate, such as 
confirmatory testing and in-use vehicle/engine emissions monitoring to 
check fleet performance, as it does with OEM vehicles/engines.

II. Authority

A. Vehicle and Engine Standards and Certification

    The CAA grants EPA authority to establish, administer, and enforce 
emission standards for motor vehicles and engines. The CAA states that 
a new vehicle or engine may not be introduced into commerce unless it 
has been issued a certificate of conformity (``certificate'') by 
EPA.\9\ A certificate is issued when a manufacturer has demonstrated to 
EPA through a regulatory testing and data submission process that the 
vehicle or engine will conform for its useful life to the standards 
promulgated by EPA.\10\ Each certificate is valid for up to one model 
year.\11\
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    \9\ CAA section 203(a)(1).
    \10\ CAA sections 202 and 206.
    \11\ 40 CFR 86.1848-01.
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B. Useful Life

    The CAA directs EPA to promulgate emission standards that are 
applicable for a vehicle or engine's ``useful life'' and to establish 
the useful life period through regulation.\12\ The full useful life

[[Page 19833]]

varies among pollutant standards and among vehicle or engine 
categories.\13\ For example, recent model year light-duty vehicles 
(cars and small trucks) generally have a useful life of 10 years or 
120,000 miles, whichever comes first; \14\ recent model year heavy-duty 
chassis certified \15\ vehicles and medium-duty passenger vehicles 
generally have a useful life of 11 years or 120,000 miles, whichever 
comes first; \16\ and current Otto-cycle heavy-duty engines have a 
useful life of 110,000 miles or 10 years, whichever first occurs.\17\ 
For current diesel heavy-duty engines (also referred to as 
``compression-ignition'' or ``diesel cycle''), there are different 
useful life definitions based on gross vehicle weight, pollutant being 
controlled, and test procedure, ranging from 10 years or 110,000 miles, 
whichever first occurs, to 10 years or 435,000 miles or 22,000 hours of 
engine operation, whichever first occurs.\18\
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    \12\ CAA section 202.
    \13\ Regulations may also include optional standards such as in 
40 CFR 86.1805-04(b) and (e).
    \14\ 40 CFR 86.1805-04.
    \15\ In this preamble we call heavy-duty vehicles that are 
currently regulated under 40 CFR subpart S ``heavy-duty chassis 
certified vehicles''. In the proposal we called this group of 
vehicles ``heavy-duty complete vehicles''.
    \16\ 40 CFR 86.1805-04. An optional useful life of 15 years or 
150,000 miles, whichever comes first, may apply. 40 CFR 86.1860-04 
(g).
    \17\ 40 CFR 86.004-2.
    \18\ 40 CFR 86.004-2.
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C. ``Tampering'' Prohibition

    Under CAA section 203(a)(3), it is prohibited:
    (A) For any person to remove or render inoperative any device or 
element of design installed on or in a motor vehicle or motor vehicle 
engine in compliance with regulations under this subchapter prior to 
its sale and delivery to the ultimate purchaser, or for any person 
knowingly to remove or render inoperative any such device or element of 
design after such sale and delivery to the ultimate purchaser; or
    (B) For any person to manufacture or sell, or offer to sell, or 
install, any part or component intended for use with, or as part of, 
any motor vehicle or motor vehicle engine, where a principal effect of 
the part or component is to bypass, defeat, or render inoperative any 
device or element of design installed on or in a motor vehicle or motor 
vehicle engine in compliance with regulations under this subchapter, 
and where the person knows or should know that such part or component 
is being offered for sale or installed for such use or put to such use.
    The CAA prohibition against tampering applies to vehicles and 
engines regardless of age or mileage accumulation.\19\
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    \19\ Any alteration of a motor vehicle or engine, its fueling 
system, or the integration of these systems, which may be classified 
as ``tampering'' under section 203(a) and which does not satisfy an 
available exemption would be a violation of the CAA for which 
section 205 authorizes EPA to assess penalties. See 40 CFR part 19.
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D. Exemption for Conversions

    The CAA provides for several statutory exemptions to the 
prohibition on tampering. One of these exemptions is for actions which 
are ``for the purpose of a conversion of a motor vehicle for use of a 
clean alternative fuel (as defined in this subchapter) and if such 
vehicle complies with the applicable standard under section 202 when 
operating on such fuel.'' \20\
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    \20\ CAA section 203(a).
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E. Authority for Clean Alternative Fuel Conversions Program

    The regulatory issue posed by vehicle and engine clean alternative 
fuel conversions is how to design a program that allows manufacturers 
to demonstrate that their conversion system warrants an exemption from 
the prohibition against tampering. The 1994 rulemaking that created the 
40 CFR part 85, subpart F regulations (``the subpart F regulations'') 
stated, ``It has always been the Agency's policy that an aftermarket 
conversion not degrade the emissions performance of the original 
vehicle as a condition of being exempt from prosecution for tampering 
violations.'' \21\
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    \21\ 59 FR 48477 (Sep. 21, 1994).
---------------------------------------------------------------------------

    Today's final rule is based on EPA's interpretation that section 
203(a) provides a tampering exemption for clean alternative fuel 
conversions. The section 203(a) exemption from tampering applies when 
the otherwise prohibited act is for ``the purpose of a conversion of a 
motor vehicle for use of a clean alternative fuel (as defined in this 
subchapter) and if such vehicle complies with the applicable standard 
under section 202 when operating on such fuel.'' Thus, the threshold 
qualification for the exemption is the proper purpose (i.e., 
``conversion * * * for use of a clean alternative fuel''). The second 
criterion for the exemption is compliance with the applicable standard.
    EPA is finalizing a program that requires a demonstration to 
satisfy both of these criteria for vehicles/engines that are still 
within their useful life. For vehicles/engines that are outside their 
useful life, even though a standard under CAA Section 202 is no longer 
applicable, EPA believes it is important to provide a legal path under 
which outside useful life vehicles/engines can be converted to use 
alternative fuels. Only clean alternative fuel conversion systems that 
comply with the regulations will qualify for the CAA section 203(a) 
exemption from the tampering prohibition for application to outside 
useful life vehicles and engines. Thus, EPA is finalizing a program 
that requires the conversion manufacturer to demonstrate that the 
threshold criterion is met (i.e., ``conversion * * * for use of a clean 
alternative fuel''). To meet the threshold criterion, the conversion 
manufacturer is required to demonstrate that emissions have not 
degraded as a result of the clean alternative fuel conversion. Such a 
demonstration serves to maintain air quality, consistent with the 
congressional intent in creating the exemption.

III. Program Design Elements Applicable to All Clean Alternative Fuel 
Conversions

    The revised clean alternative fuel conversion program is designed 
to increase flexibility for conversion manufacturers while ensuring 
that converted vehicles/engines retain acceptable emission levels. 
Certain aspects of the program design depend on the age of the vehicle 
or engine being converted, while other program elements are common to 
all conversions. This section describes those program elements which 
are applicable to all clean alternative fuel conversions, regardless of 
vehicle or engine age.
    In general there are three types of typical alternative fuel 
conversions: (1) Those that result in dedicated alternative fuel 
vehicles or engines, (2) those that result in dual-fuel vehicles or 
engines, and (3) those that result in mixed-fuel \22\ (also known as 
bi-fuel and flexible-fuel) vehicles or engines.\23\ The first type, 
dedicated alternative fuel vehicles or engines, are only capable of 
operating on one type of fuel. Dual-fuel vehicles or engines, the 
second type, can operate on two or more types of fuel, either the 
fuel(s) they were originally designed for or the new alternative 
fuel(s). Dual-fuel vehicles and engines can run on more than a single 
type of fuel but not on a mixture of the fuels. The third type, mixed-
fuel vehicles or engines, are able to operate

[[Page 19834]]

on either the original fuel(s) or the alternative fuel(s), or on a mix 
of the fuels. Mixed-fuel vehicles/engines are capable of combusting the 
different fuel types together in the engine. For example, an ethanol 
flexible-fuel vehicle is a mixed-fuel vehicle that can operate on 100% 
gasoline, or on any combination of gasoline and ethanol up to a mixture 
of 85% ethanol and 15% gasoline (known as ``E85''). Conversions that 
enable an OEM diesel configuration to operate on either diesel fuel or 
a diesel-gaseous fuel mixture represent another example of a mixed-fuel 
vehicle/engine conversion system.
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    \22\ The term ``flex-fuel'' was used in the proposal. Because 
there are multiple uses and definitions of flexible-fuel in 40 CFR 
part 86, in this rule we call this category of fuel conversion 
``mixed-fuel.'' This definition only applies to clean alternative 
fuel vehicle and engine conversions.
    \23\ Note that other Federal agencies may define terms such as 
dual-fuel and bi-fuel differently than EPA definitions.
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    EPA regulates all types of alternative fuel conversions pursuant to 
the regulations specified in 40 CFR part 85, subpart F and 
certification provisions in 40 CFR part 86 and part 1065. EPA will 
continue to regulate typical types of conversions, along with newer or 
innovative types of fuel conversions that do not fit neatly into one of 
the general categories listed above. These include conversions of 
conventional gasoline or diesel vehicles to hybrid-electric vehicles, 
and conversions from hybrid-electric vehicles to plug-in hybrid 
electric vehicles. Since alternative fuel conversion activity often 
acts as a laboratory for new fuels and new technology, it is not 
possible to present an exhaustive list of covered categories or special 
cases. Each special case may require unique test procedures that are 
appropriate to new and developing technologies.\24\
---------------------------------------------------------------------------

    \24\ See 40 CFR 86.1840-01.
---------------------------------------------------------------------------

A. Clean Alternative Fuel Conversions

    Clean alternative fuel conversions for which the conversion 
manufacturer has complied with the revised subpart F regulations 
qualify for the CAA section 203(a) exemption from the tampering 
prohibition. EPA received comments suggesting that the definition of 
clean alternative fuel conversion should be limited to a group of fuels 
with proven emission benefits. EPA believes however that the public 
interest is better served by a broader definition that allows for 
future introduction of innovative and as-yet unknown fuel conversion 
systems. EPA is therefore finalizing the proposed definition of clean 
alternative fuel conversion (also referred to as ``fuel conversion'' or 
``conversion system'') to be any alteration of a motor vehicle or 
engine, its fueling system, or the integration of these systems, that 
allows the vehicle or engine to operate on a fuel or power source 
different from the fuel or power source for which the vehicle or engine 
was originally certified; and that is designed, constructed, and 
applied consistent with good engineering judgment and in accordance 
with all applicable regulations. A clean alternative fuel conversion 
also includes the components, design, and instructions to perform this 
alteration. A clean alternative fuel conversion manufacturer (also 
referred to as ``conversion manufacturer'' or ``converter'') is a 
company or individual that manufactures, assembles, sells, imports, or 
installs a motor vehicle or engine fuel conversion for the purpose of 
use of a clean alternative fuel. EPA received comments expressing 
concern that a definition of conversion manufacturer that includes 
multiple parties potentially involved in a conversion process is too 
broad. EPA is finalizing the conversion manufacturer definition as 
proposed. The broad definition is intentional because any of the listed 
entities could potentially conduct the required compliance 
demonstration and thereby achieve eligibility for the tampering 
exemption. However, for any given test group or engine family, EPA 
expects that only one entity will function as the ``clean alternative 
fuel conversion manufacturer.'' Should none of the listed entities 
satisfy the subpart F regulations for a covered fuel conversion, then 
all could potentially be liable for a tampering violation.
    To demonstrate clean alternative fuel conversion compliance and 
gain exemption from the CAA tampering prohibition, conversion 
manufacturers are required to submit data and/or other information to 
EPA. For purposes of this preamble we will refer to the appropriate 
submission as a ``demonstration'' and to the process of submitting the 
demonstration as ``notification.'' The specifics of the demonstration 
depend on the age of vehicles or engines being converted, but the 
general demonstration and notification requirements apply to all 
conversion systems. Section IV contains a detailed description of the 
age-specific demonstration and notification requirements. EPA will 
maintain lists of conversion systems that have satisfied the age-
appropriate demonstration requirements through the EPA notification 
process and will make this information publicly available.
    Any previous requirement that is not specifically addressed in this 
final rule will remain in place.

B. Good Engineering Judgment

    A clean alternative fuel conversion manufacturer is eligible for 
the exemption from the CAA tampering prohibition only if the conversion 
system is designed, constructed, and applied using good engineering 
judgment. EPA understands that in the context of exempting clean 
alternative fuel conversions from the CAA tampering prohibition, 
certain aspects of good engineering judgment may vary as a function of 
clean alternative fuel type, OEM technology, and other factors. In 
general, good engineering judgment means that the conversion 
manufacturer has provided sufficient technical documentation for EPA to 
ascertain that the converted vehicle or engine will continue to satisfy 
emissions requirements, such as meeting standards within useful life or 
maintaining emissions performance after conversion outside useful life. 
Such documentation must be submitted to EPA in writing before any 
conversion kit is distributed or installed. EPA will evaluate several 
factors in assessing whether a conversion system represents good 
engineering judgment. These factors may include the following: Whether 
the system employs technology that is at least equivalent and equally 
effective in design, materials and overall sophistication to that of 
the OEM system, uses components that are sized to match the engine 
power requirements, uses instantaneous feedback control, and maintains 
proper OBD system function.
    Documentation provided to support a claim of good engineering 
judgment may include emissions test data or other engineering analysis 
to demonstrate that the conversion technology will sustain acceptable 
emissions performance in the intended vehicles or engines.\25\ Good 
engineering judgment also dictates that any testing or data used to 
satisfy demonstration requirements must be generated at a quality 
laboratory that

[[Page 19835]]

exercises good laboratory practices and is capable of performing 
emission tests that comply with EPA regulations.
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    \25\ For example, EPA received a comment suggesting that vehicle 
fuel converters might take advantage of the OBD system diagnostic 
capabilities by interrogating the system before and after conversion 
using an OBD scan tool. Monitors supported by the OBD system may 
include misfire, oxygen sensors, catalyst monitor, exhaust gas 
recirculation (EGR), and evaporative emission controls. The 
converter could examine exhaust emission controls by collecting and 
interrogating Mode $6 data. Fueling system control could be examined 
through interrogation of Mode $1 data using the same scan tool. By 
comparing the numerical values read from a scan tool against the OBD 
failure thresholds, the vehicle fuel converter would be able to 
understand the robustness of the OBD system when operating on the 
alternative fuel and make any necessary calibration changes to the 
vehicle. This type of OBD information would provide greater 
assurance that the conversion does not render the OBD system 
susceptible to producing false negative or false positive results. 
This type of procedure is not a substitute for any other OBD 
demonstration requirements, but would add value in demonstrating 
good engineering judgment. For further examples of good engineering 
judgment, see Section IV.C.3.
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C. Vehicle/Engine Groupings and Emission Data Vehicle/Engine Selection

    The unit of vehicle certification and compliance under the CAA and 
under EPA's implementing regulations is a group of vehicles that share 
similar technologies, design features, and emission control 
characteristics. Thus each OEM certificate of conformity can and 
usually does cover several vehicle models that have in common a unique 
combination of exhaust emission controls, evaporative emission 
controls, and OBD system features. The common exhaust emission system 
characteristics are represented by a grouping called a ``test group.'' 
The common evaporative emission system characteristics are represented 
by an ``evaporative/refueling family.'' The OBD system features are 
represented by an ``OBD group.'' Light-duty vehicles and chassis 
certified heavy-duty vehicles receive a single certificate covering a 
unique combination of test group, evaporative/refueling family, and OBD 
group.
    The unit of certification is slightly different for heavy-duty 
engines. Instead of receiving a single certificate that covers both 
exhaust and evaporative emission control characteristics, heavy-duty 
engines are issued separate certificates by ``engine family'' for 
engines having common exhaust characteristics and by evaporative/
refueling families, if applicable.\26\ Even though heavy-duty engine 
certificates are based on a different compliance unit, the concept 
behind allowable groupings remains consistent between light-duty 
vehicle and heavy-duty engine certification and compliance. Groupings 
share similar technologies, design features, and emission control 
characteristics. EPA proposed to slightly broaden grouping criteria for 
clean alternative fuel conversions and generally received favorable 
comment about the proposed flexibilities. EPA is adopting broader 
grouping criteria for both light-duty vehicles and heavy-duty engines.
---------------------------------------------------------------------------

    \26\ Certain fuels such as diesel fuel do not have evaporative 
emissions standards.
---------------------------------------------------------------------------

    The general concept behind groupings for the conversion program 
applies to all vehicle and engine age categories, although the specific 
criteria for designating conversion groups vary somewhat among the new, 
intermediate age, and outside useful life programs (see Section IV). 
Conversion manufacturers must use the applicable criteria to designate 
a conversion group, and must select a ``worst case'' emission data 
vehicle (EDV) or emission data engine (EDE) to represent the group for 
demonstration and notification purposes. The conversion EDV or EDE 
should represent the most challenging emissions compliance technology 
of all the models it represents. Use of a worst-case EDV/EDE gives EPA 
confidence that all models covered by a certificate in the case of OEM 
certification, or by EPA's acceptance of the conversion group 
demonstration in the case of conversion, comply with all applicable 
emission requirements, including exhaust emission standards, 
evaporative emission standards, OBD compliance requirements, and other 
criteria. Therefore conversion manufacturers may need to submit data 
from more than one EDV or EDE to represent the worst case condition for 
each of the applicable requirements.
    OEMs have considerable ability to carryover test data between test 
groups/engine families and evaporative/refueling families of different 
model years. A manufacturer may use one set of data to support the 
certification application of a subsequent year's test group/engine 
family as long as the groups meet the regulatory grouping criteria and 
meet the same emission standards.\27\ EPA is finalizing provisions that 
allow converters the same flexibility, that is, a converter is allowed 
to carryover data if the OEM did.
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    \27\ See 40 CFR 86.1827-01 and 40 CFR 86.001-24 for test group 
and engine family criteria. See 40 CFR 86.1839-01 for OEM carry-over 
provisions for light-duty and heavy duty chassis certified vehicles.
---------------------------------------------------------------------------

    In addition to these data carryover provisions, EPA proposed to 
broaden the grouping criteria for clean alternative fuel conversions, 
but received comments requesting that the proposed criteria for 
designating test groups/engine families be broadened even further.\28\
---------------------------------------------------------------------------

    \28\ EPA requested and received comment on the proposed test 
group/engine family grouping criteria, including the carryover of 
test data from one group to another, and on the related issue of EDV 
or EDE selection. The issues are interconnected because the narrower 
the grouping and carryover criteria, the less technical variability 
among vehicle or engine models within the group and the more likely 
that a single EDV or EDE will be representative.
---------------------------------------------------------------------------

    Commenters especially sought the ability to combine vehicles/
engines from multiple model years and/or multiple OEMs within a single 
conversion test group/engine family. EPA does not agree that the 
grouping flexibilities should be further expanded to allow conversion 
test groups/engine families to span multiple OEM model years or 
manufacturers. Emission control strategies may and often do differ in 
critical ways among manufacturers, or even among product lines of a 
single manufacturer. EPA did not receive any data or other evidence to 
alleviate concerns that these differences could result in variable 
emissions performance among vehicles/engines in a broader grouping, 
even if some features such as engine displacement are identical. For 
example, even in vehicles with the same engine displacement and 
cylinder configuration, other technical features are likely to be 
different enough to warrant concern that the emissions will be very 
different after the vehicles are converted. Different manufacturers 
rarely use identical emissions-related hardware and software. 
Furthermore, manufacturers often change components and strategies 
between model years as technology improves. The engine controller 
software will likely reflect these different strategies, so there is no 
assurance that a given conversion system will operate similarly or 
remain durable on one manufacturer's vehicle compared to another, or on 
different model year vehicles of an individual manufacturer. EPA does 
not have confidence that significant broadening of conversion test 
group/engine family criteria, or expansion of carryover/carry-backward/
carry-across provisions can be allowed without compromising our 
assurance that the conversion system will achieve equivalent emission 
control across the full test group/engine family. EPA believes the 
criteria for conversion test group/engine family combinations, which 
were first presented in guidance on June 20, 2009 and which EPA is 
codifying in this final rule, represent an appropriate balance between 
reducing compliance burden for converters and fulfilling EPA's 
responsibilities to ensure that all vehicles/engines remain clean.
    Because of the integral link between grouping criteria and 
selection of a worst case EDV/EDE to represent that group, EPA also 
requested comment on whether a worst case EDV/EDE would adequately 
represent test groups/engine families created under the proposed 
criteria. Most commenters stated that a worst case EDV/EDE is a 
reasonable approach. One commenter expressed concern about whether a 
worst case EDV/EDE would be sufficient to represent broader test 
groups. EPA will address this concern by retaining the ability to 
examine the conversion manufacturer's basis for EDV/EDE selection. 
Should EPA have concerns about whether the EDV/EDE adequately 
represents the grouping, EPA may request additional data from other

[[Page 19836]]

vehicles or engines in the group. Please see the Response to Comments 
document for further discussion of this issue.

D. Mixed-Fuel and Dual-Fuel Conversions

    EPA regulations require mixed-fuel and dual-fuel vehicles and 
engines to comply with all requirements established for each fuel or 
blend of fuels on which the system is capable of operating.\29\ These 
requirements continue to apply to mixed- and dual-fuel conversions. 
Certain demonstration requirements could potentially be waived for 
clean alternative fuel conversions if the conversion manufacturer has 
not altered the OEM configuration of the vehicle or engine when 
operating on its original fuel. However, if the conversion of the 
vehicle or engine to dual-fuel or mixed-fuel operation alters the OEM 
certified configuration in any way while operating on the original 
fuel, then EPA requires the conversion manufacturer to demonstrate 
compliance for each fuel with all applicable exhaust emission 
standards, evaporative/refueling emission standards and OBD 
demonstration and notification requirements, appropriate for the age of 
the vehicle/engine as described in Section IV.
---------------------------------------------------------------------------

    \29\ See, e.g., 40 CFR 86.1810-01, 40 CFR 86.1811-04, 40 CFR 
86.1812-01, 40 CFR 86.1813-01, 40 CFR 86.1814-02, 40 CFR 86.1815-02, 
40 CFR 86.1816-08.
---------------------------------------------------------------------------

    EPA will continue to allow a statement of compliance in lieu of 
test data for operation on the original fuel if the conversion 
manufacturer can attest that the conversion retains all the OEM fuel 
system, engine calibration, and emission control system functionality 
when operating on the fuel with which the vehicle/engine was originally 
certified. The conversion must also retain all the functionality of the 
OEM OBD system (if so equipped) when operating on the fuel with which 
the vehicle/engine was originally certified. The conversion 
manufacturer is required to submit data demonstrating compliance with 
the applicable requirements when the vehicle/engine is operating on the 
new alternative fuel.\30\
---------------------------------------------------------------------------

    \30\ Compliance testing and data submission requirements vary by 
vehicle age and mileage. See Section IV.
---------------------------------------------------------------------------

    Because a mixed-fuel vehicle or engine operates on a fuel mixture, 
with the fuels combusted together at a variety of fuel blend ratios, 
mixed-fuel vehicles/engines are expected to demonstrate compliance when 
tested on any fuel blend ratio that is expected to occur during normal 
operation. EPA may require a mixed-fuel vehicle or engine conversion 
manufacturer to demonstrate compliance with applicable requirements on 
more than one fuel blend ratio.\31\ For example, E-85 flexible-fuel 
vehicles would generally be tested on two fuel blend ratios--100% 
gasoline/0% ethanol and 85% ethanol/15% gasoline. Other types of mixed-
fuel vehicles/engines would generally be tested on a fuel blend ratio 
that represents the worst case emission scenario. Conversion systems 
designed for a fluctuating fuel mix, such as a CNG/diesel fuel mixture, 
would generally be tested as they would normally operate rather than on 
a discrete mixed fuel blend ratio. Conversion manufacturers should work 
with EPA to make good engineering judgment decisions about the worst 
case EDV or EDE for mixed-fuel vehicles and engines.
---------------------------------------------------------------------------

    \31\ Id.
---------------------------------------------------------------------------

    EPA has specific concerns about canister purge in dual-fuel and 
mixed-fuel \32\ conversions because of potential for uncontrolled 
evaporative emissions when the converted vehicle or engine is operating 
on the new alternative fuel. Although much of the OEM functionality is 
likely to remain fully operational on the original fuel after 
conversion to dual-fuel or mixed-fuel, OEM canister purge may have been 
designed to depend on the frequency and duration of engine operation on 
the original fuel. Therefore, for dual-fuel and mixed-fuel conversions, 
EPA is requiring the conversion manufacturer to test canister purge and 
submit data or to provide a separate attestation for evaporative 
emission canister purge. For vehicles and engines converted to dual-
fuel or mixed-fuel operation, the attestation must include statements 
that the evaporative emissions canister purge continues to operate as 
originally designed while operating on each fuel. EPA expects the clean 
alternative fuel conversion manufacturer to supply a description of the 
canister purge operation while the vehicle or engine is operating on 
the alternative fuel. Conversion manufacturers may submit a statement 
of attestation rather than test data only if the canister purge 
operation properly purges hydrocarbon vapor from the evaporative 
emission canister when the vehicle/engine is operating on the 
alternative fuel.
---------------------------------------------------------------------------

    \32\ The proposal discussed dual-fuel vehicles/engine 
evaporative emissions concerns; however, these flexibilities and 
restrictions are also applicable to mixed-fuel vehicles/engines, 
since mixed-fuel vehicles/engines function similarly to dual-fuel 
vehicles/engines. Vehicles and engines converted to mixed-fuel 
operation can generally operate on the new alternative fuel(s), on 
the original fuel(s), or on a mixture of the fuels.
---------------------------------------------------------------------------

E. Vehicle/Engine Labels, Packaging Labels, and Marketing

    EPA proposed to maintain existing labeling requirements and also 
proposed to require some additional content on the conversion label. 
Comments on the labeling proposal were mixed. Some commenters suggested 
additional labeling requirements beyond those that were proposed. Other 
commenters opposed any new labeling requirements beyond those required 
in the original subpart F regulations. One commenter suggested allowing 
conversion manufacturers to supply the new information in marketing 
material rather than on the underhood or engine label. Several 
commenters supported the new labeling mandates, expressing that the new 
information would help with proper identification and application. EPA 
is finalizing the labeling requirements as proposed. We acknowledge 
that it may be challenging to fit all the information on an underhood 
or engine label; however, EPA believes that the new label content is 
important, as is clear labeling in general, to reduce the potential for 
misapplication (e.g., installing a conversion system on a vehicle/
engine that is not covered by the manufacturer's demonstration and 
notification to EPA). To address concerns about space limitations, EPA 
will allow the label information to be logically split between two 
labels that are both placed as close as possible to the original 
Vehicle Emission Control Information (VECI) or engine label. The newly 
required content includes: (1) The conversion test group/engine family 
and evaporative/refueling family; (2) the OEM test group/engine family 
and evaporative/refueling family, plus the OEM vehicle/engine model 
year to which the conversion system is applicable; and (3) a 
description of the age-based demonstration through which the conversion 
system obtained its tampering exemption.
    Conversion manufacturers are required to submit the vehicle/engine 
label information to EPA as part of the notification process. Failure 
to supply or install compliant labels leaves conversion manufacturers 
and installers subject to prosecution for tampering.
    EPA sought comment about whether conversion manufacturers should be 
required to submit to EPA the Vehicle Identification Number (VIN) of 
any converted vehicle, in addition to vehicle label information. EPA 
received some comments stating that VIN tracking is not necessary and 
other comments

[[Page 19837]]

stating that VIN tracking could be useful. EPA has evaluated comments 
and is not adopting a VIN tracking requirement. It is neither practical 
for EPA to develop and maintain a VIN tracking system nor is it 
feasible for EPA to enforce against installers who may fail to report 
VINs. EPA believes that the required label is sufficient to inform 
concerned parties that a vehicle or engine has been converted.
    EPA expects any marketing material associated with any aftermarket 
fuel conversion product to be consistent with and not contravene the 
information required on the vehicle/engine or packaging labels. In 
addition, the marketing material and label information for a given 
conversion system must always be consistent with the conversion 
manufacturer's demonstration and notification to EPA for that 
system.\33\ Conversion manufacturers who market conversion systems for 
use on vehicles/engines other than the test group/engine families and 
evaporative/refueling families covered by the demonstration and 
notification may be liable for a tampering violation for each vehicle/
engine to which conversion system is misapplied.
---------------------------------------------------------------------------

    \33\ If any marketing material implies or states that the 
installation of the conversion system is legal or appropriate for 
vehicles/engines not listed in the documentation provided to EPA, 
EPA would deem the marketing material to be evidence that the 
marketer caused a customer to install an inappropriate conversion 
system and thus tampered with the vehicle/engine.
---------------------------------------------------------------------------

F. Compliance

    Clean alternative fuel conversion manufacturers will continue to be 
subject to all certification requirements and warranty, defect, and 
recall requirements applicable to new vehicle/engine manufacturers in 
40 CFR parts 85 and 86.\34\
---------------------------------------------------------------------------

    \34\ The OEM certification requirements and warranty, defect, 
and recall requirements apply even if they are moved to other 
locations in the CFR.
---------------------------------------------------------------------------

    EPA plans to audit conversion manufacturers and enforce against 
violations.
1. Emission Standards
    EPA has previously determined that it is appropriate to require 
vehicle and engine fuel conversions to meet the same emission standard 
as required for the originally certified OEM vehicle or engine. OEM 
standards continue to apply for the required test cycles, including 
intermediate useful life standards and full useful life standards where 
applicable.\35\ If a converter designates a conversion group that 
combines multiple OEM test groups/engine families, the most stringent 
OEM standards represented within that group become the applicable 
standards for the conversion group. For example, if a converter 
establishes a conversion test group that includes OEM test groups 
originally certified to Tier 2, Bin 4 and Bin 5 standards, all the 
vehicles in the combined conversion test group are subject to the more 
stringent Tier 2, Bin 4 standard.
---------------------------------------------------------------------------

    \35\ In almost all cases the standards in place for an OEM 
vehicle or engine continue to apply to the converted vehicle or 
engine. The only exceptions involve fuel specific standards (or 
exemptions from standards) that were not applicable to the OEM 
configuration but are applicable to the converted configuration, or 
vice versa. In those cases the converted vehicle/engine will be held 
to the fuel-specific standard that would have been in place for an 
OEM vehicle/engine certified to operate on that fuel. For example, 
diesel-fueled vehicles are currently exempt from evaporative 
emission standards but vehicles fueled with most other fuels are 
not. If a diesel fuel vehicle is converted to run on an alternative 
fuel, the converted vehicle will be held to the evaporative emission 
standards that would have applied to an OEM vehicle certified 
operating on that fuel.
---------------------------------------------------------------------------

    All applicable OEM certification standards are also applicable to 
fuel conversions unless specifically exempted, including heavy-duty 
Family Emission Limits (FELs), light-duty 15 year/150,000 mile Tier 2 
standards, and greenhouse gas standards. In addition, any newly-
required test procedures or standards that apply to the certification 
of OEM alternative fuel vehicles/engines would also apply to fuel 
conversions.
    EPA sought comment about whether to require a statement of 
compliance or exhaust demonstration requirement for light-duty vehicle 
US06 standards. Most commenters stated that EPA should not add the US06 
drive cycle and standard to the demonstration requirements for 
alternative fuel vehicles. At this time, EPA is not adding a US06 
standard for clean alternative fuel vehicle conversions, since US06 
testing is not required for certification of OEM alternative fuel 
vehicles.
    EPA received comment requesting clarification about whether a 
manufacturer may certify a clean alternative fuel conversion to a more 
stringent standard than the OEM did. EPA does allow fuel conversion 
manufacturers to certify to more stringent standards than the standards 
to which the OEM vehicle/engine was certified as long as the vehicles/
engines in the test group/engine family demonstrate compliance with the 
standard in all modes of operation (see III.F.1.c).
a. Light-Duty and Heavy-Duty Chassis Certified Vehicle Gross Vehicle 
Weight Classes and Alternative Fuel Exceptions
    Emission standards for light-duty passenger cars, light-duty 
trucks, medium-duty passenger vehicles, and Otto-cycle heavy-duty 
chassis certified vehicles less than 14,000 pound gross vehicle weight 
are codified in 40 CFR part 86, subpart S.\36\ Standards are specific 
to vehicle type and gross vehicle weight ratings.
---------------------------------------------------------------------------

    \36\ For purposes of this preamble, this group of vehicles will 
be described as light-duty and heavy-duty chassis certified vehicles 
from this point forward.
---------------------------------------------------------------------------

    Light-duty vehicles, both OEM vehicles and conversions, are 
currently exempt from Supplemental Federal Test Procedure (SFTP) 
standards and cold carbon monoxide (CO) standards when certified on 
alternative fuels.\37\ However, for dual-fuel and mixed-fuel light-duty 
vehicles, SFTP and cold CO standards do apply while the vehicle is 
operating on gasoline or diesel fuel.\38\ At this time, EPA is not 
adopting SFTP standards and testing for alternative fueled light-duty 
vehicles for either OEM vehicles or clean alternative fuel conversions 
(see Section IV.A.3.a).\39\ However, as stated in the proposed 
rule,\40\ if future SFTP standards are amended to apply to vehicles 
operated on alternative fuels, those standards and test procedures 
would also be applicable to fuel conversions.
---------------------------------------------------------------------------

    \37\ All medium-duty passenger vehicles are also currently 
exempt from SFTP standards, regardless of fuel type. 40 CFR 86.1811-
04(f)(1). Medium duty passenger vehicles, operating on gasoline, do 
have a cold CO standard (40 CFR 86.1811-04(g)).
    \38\ 40 CFR 86.1810-01(i)(4) and 40 CFR 86.1811-04(g).
    \39\ 40 CFR 86.1811-04(f).
    \40\ 75 FR 29613 (May 26, 2010).
---------------------------------------------------------------------------

    A commenter questioned whether light-duty vehicle conversions are 
subject to greenhouse gas standards. Conversions are subject to the 
same standards that applied to the OEM vehicle. Thus vehicle 
conversions are subject to greenhouse gas standards if the OEM vehicle 
was subject to greenhouse gas standards, unless the conversion 
manufacturer qualifies for exemption as a small business.\41\ There are 
also conditional exemptions for light-duty greenhouse gas requirements 
available to low volume manufacturers. See 40 CFR 86.1801-12(k) for 
more information. See Section V for technical amendments relating to 
light-duty greenhouse gas compliance.
---------------------------------------------------------------------------

    \41\ See 40 CFR 86.1801-12(j).
---------------------------------------------------------------------------

b. Heavy-Duty Engine Types and Gross Vehicle Weight Classes
    Heavy-duty engine standards are categorized in several ways. There 
are

[[Page 19838]]

divisions by engine type, either compression ignition or spark 
ignition, and there are divisions by application gross vehicle weight. 
Standards for heavy-duty engines are set forth in 40 CFR part 86, 
subpart A. Generally, heavy-duty engine standards apply to engines 
installed in vehicles with a gross vehicle weight rating (GVWR) greater 
than 8,500 pounds. OEM manufacturers of compression ignition engines in 
complete heavy-duty vehicles between 8,500 and 14,000 pounds may 
optionally chassis certify using the provisions in 40 CFR part 86, 
subpart S. EPA proposed to require conversion manufacturers to meet the 
same standards that applied to the OEM. Thus converters of engine 
certified heavy-duty vehicles between 8,500 and 14,000 pounds would 
have been required to meet engine standards, even if chassis 
certification test procedures were available to the OEM. EPA received 
numerous comments requesting relief from this proposed requirement. EPA 
evaluated these comments and has determined that it is appropriate to 
allow conversion manufacturers to use chassis test procedures that were 
available to the OEM, even if the OEM chose to engine certify. Thus EPA 
is adopting provisions whereby manufacturers of conversion systems for 
engines that would have qualified for chassis certification at the time 
of OEM certification may use those procedures, even if the OEM did 
not.\42\ Conversion manufacturers choosing this option must designate 
test groups using the appropriate criteria as prescribed in this rule 
and meet all vehicle chassis certification requirements set forth in 40 
CFR part 86, subpart S.
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    \42\ These provisions (and available options) apply to 8,500 to 
14,000 GVWR Otto-cycle complete and incomplete heavy-duty vehicles 
for model year 2001 and forward, and for 8,500 to 14,000 GVWR 
compression ignition engines in complete and incomplete heavy-duty 
vehicles for model year 2007 and forward. See 40 CFR 86.1801-01, 
86.1816-05, and 86.1863-07.
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c. Dual-Fuel and Mixed-Fuel Standards
    EPA as a matter of policy requires dual-fuel and mixed-fuel \43\ 
vehicles and engines to certify operation on all fuel types to the same 
emission standards. A dual-fuel natural gas-gasoline vehicle, for 
example, must certify to the same Tier 2 bin level for both natural gas 
and gasoline. The same policy applies to evaporative/refueling 
standards and family emission levels (FELs) for engines. Therefore, 
conversion manufacturers of systems that convert single-fuel OEM 
systems to dual-fuel or mixed-fuel systems must certify to the OEM 
standard, even if test data demonstrate that the converted vehicle or 
engine is able to meet a more stringent standard while operating on the 
alternative fuel. If a conversion manufacturer wishes to certify to a 
lower standard on all fuels, a demonstration showing compliance with 
the lower standard is required on all fuels.\44\ This policy will 
continue to apply to all vehicle/engine fuel conversions, regardless of 
age or compliance program. The notification process for a dual-fuel or 
mixed-fuel vehicle/engine will require separate submissions for groups 
of vehicles/engines with different standards, unless testing is 
conducted which demonstrates compliance on all fuels with the most 
stringent standards in the group. However, test data from an EDV or EDE 
demonstrating compliance with a lower standard may be able to be 
carried across to other vehicles or engines that meet the criteria 
available for the combination test groups and engine families, 
described in Sections IV.A.2 and IV.B.2.
---------------------------------------------------------------------------

    \43\ The proposed rule referred to dual-fuel vehicles/engine 
standards; however, the flexibilities and restrictions applicable to 
dual-fuel vehicles/engines are also applicable to mixed-fuel 
vehicles/engines, since mixed-fuel vehicles/engines function 
similarly to dual-fuel vehicles/engines. Vehicles and engines 
converted to mixed-fuel operation can generally operate on the new 
alternative fuel(s), on the original fuel(s), or on a mixture of the 
fuels.
    \44\ For mixed-fuel vehicles, a demonstration may be required on 
the new fuel(s), on the original fuel(s), and on a worst-case 
mixture of the fuels.
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2. Useful Life
    In the rulemaking that established the original aftermarket 
conversions certification program, EPA determined it was not 
appropriate to extend the useful life of a conversion beyond that of 
the original vehicle given that conversions generally rely on many 
original vehicle components for proper operation.\45\ EPA's revised 
program leaves this determination unchanged such that the applicable 
useful life of a converted vehicle or engine does not extend beyond the 
useful life of the original vehicle or engine. Thus, the useful life of 
the conversion will continue to end at the same time as the useful life 
of the original vehicle/engine, including any optional useful life 
standards to which the OEM certified the original vehicle/engine.\46\
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    \45\ 59 FR 48488 (Sep. 21, 1994).
    \46\ Examples of optional useful life include those described in 
40 CFR 86.1805-04(b) and (e).
---------------------------------------------------------------------------

3. On Board Diagnostics (OBD)
    As part of the good engineering judgment requirement described in 
Section III.B, OEM vehicles or engines subject to OBD requirements are 
required to have properly functioning OBD systems once converted.\47\ 
OBD systems are designed to monitor critical vehicle or engine emission 
control components and to alert the vehicle operator or State emissions 
inspection official to malfunction, deterioration, or other problems 
that might cause excessive emissions. States rely on OBD systems to 
flag vehicles that exceed Inspection and Maintenance thresholds and 
that may require repair. OBD systems are also designed to store 
diagnostic information in the vehicle's/engine's computer to assist 
technicians in diagnosing and repairing the problem. The conversion OBD 
system is part of the emission control system and must include any new 
monitoring capability necessary to identify potential emission problems 
associated with the new fuel. In addition, consistent with other EPA 
regulations, this regulation requires that any dual-fuel or mixed-fuel 
clean alternative fuel conversion OBD system remain fully functional on 
the original fuel and function properly on the conversion fuel.\48\
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    \47\ OBD systems were phased in for light-duty and heavy-duty 
complete vehicles beginning in model year 1994. See 40 CFR 86.1806-
01, 86.1806-04, and 86.1806-05. OBD systems were phased in for 
heavy-duty vehicles weighing less than 14,000 pounds GVWR beginning 
in model year 2004. See 40 CFR 86.005-17. OBD requirements for 
heavy-duty engines for vehicles over 14,000 pounds began phase-in in 
model year 2010. See 40 CFR 86.010-18. According to 40 CFR 86.010-
18(o)(1)(v), engines in vehicles over 14,000 pounds GVWR certified 
on alternative fuels are exempt from OBD requirements for model 
years 2010-2012.
    \48\ Multi-fueled vehicles, such as dual-fuel and mixed-fuel 
vehicles must be compliant on both fuels. See, for example, 40 CFR 
86.1811-01.
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4. Durability Testing
    Conversion manufacturers must conduct durability testing for both 
exhaust and evaporative emissions to determine expected useful life 
deterioration. Durability procedures for light-duty vehicles and heavy-
duty chassis certified vehicles are codified in 40 CFR 86.1823-01, 
86.1824-01, 1824-07, 1824-08, and 86.1825-01, 85.1825-08. Durability 
procedures for heavy-duty engines are currently set forth in 40 CFR 
86.096-24, 86.098-24, 86.001-24, 86.094-26, 86.001-26, 86.0004-26, 
86.094-28, et al. In lieu of durability testing, these regulations 
provide that small volume manufacturers and qualified small volume test 
groups/engine families may be eligible to use EPA assigned 
deterioration factors to predict the emission rates at the end of a 
vehicle's or engine's useful life. See Section IV.B.3.c for more 
information.
    EPA requested comment as to whether the proposed durability 
procedures were appropriate for small

[[Page 19839]]

and large volume conversion manufacturers. EPA also requested comment 
on whether the proposed procedures provided adequate assurance that the 
emission control systems in converted vehicles and engines would 
continue to function properly over time. Comments ranged from requests 
for small volume conversion manufacturer relief from the stringency of 
the EPA assigned deterioration factors to comments that the regulations 
should require more durability assurance from conversion manufacturers. 
EPA is adopting the durability procedures largely as proposed. See the 
assigned deterioration factors discussion in Section III.G.2 and the 
Response to Comments document for a more detailed discussion.
5. Warranty
    The CAA requires manufacturers to warrant that a vehicle or engine 
is (1) designed, built, and equipped to conform to applicable 
regulations and (2) free from defects in material and workmanship which 
cause the vehicle or engine to fail to conform to applicable 
regulations for its useful life.\49\ For light-duty vehicles, this 
defect warranty is applicable through two years or 24,000 miles of use 
(whichever first occurs).\50\ Specified major emission control 
components, including catalysts, engine control units (ECUs), and OBD 
are warranted for eight years or 80,000 miles of use (whichever first 
occurs).\51\ For Otto-cycle heavy-duty engines and vehicles (complete 
and incomplete) and light heavy-duty diesel engines, the warranty 
period is at least 5 years or 50,000 miles, whichever first occurs. For 
all other heavy-duty diesel engines, the warranty period is at least 5 
years or 100,000 miles, whichever first occurs. For all heavy-duty 
engines the warranty period may not be shorter than the basic 
mechanical warranty period that the OEM provides.\52\ Under EPA's 
previous aftermarket conversions program, conversion manufacturers had 
to accept in-use liability for warranty and recall as a condition for 
gaining exemption from tampering.
---------------------------------------------------------------------------

    \49\ 42 U.S.C. 7541.
    \50\ CAA section 207(i)(1).
    \51\ CAA section 207(i)(2).
    \52\ 40 CFR 86.004-2.
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    EPA will continue to apply this approach to in-use liability for 
warranty for all clean alternative fuel conversions. Under this policy, 
the clean alternative fuel conversion manufacturer would normally be 
held accountable for fixing problems that occur as the result of 
conversion, while the OEM would generally retain responsibility for the 
performance of any parts or systems that retain their original function 
following conversion and are unaffected by the conversion. It is 
important that both clean alternative fuel conversion manufacturers and 
consumers understand these provisions because they could result in a 
transfer of warranty liability for certain failed components from the 
OEM to the converter. A reasonable indicator of cause and 
accountability might be whether the failure of the part or system is 
also occurring in non-converted configurations of the same vehicle/
engine. If so, the problem is most likely not related to conversion, 
and the OEM would typically remain liable for performing repairs. If 
only converted vehicles/engines are experiencing the problem, it would 
be appropriate to trace the problem to the conversion and to hold the 
converter responsible for warranty repairs.
    EPA sought comment on the best way to inform consumers about the 
possibility that converting their vehicle or engine, even with an EPA 
compliant system, may transfer portions of their OEM warranty liability 
to the converter. EPA received mixed comment on this issue. OEMs stated 
that EPA should require information on the underhood and other vehicle 
labels to indicate that conversion might void the OEM warranty. 
Alternative fuels advocates stated that EPA should mandate label 
statements that conversion does not void the OEM warranty. For 
practical reasons involving space restrictions on the underhood/engine 
label, EPA is not finalizing any additional labeling requirements with 
regard to warranty. However, EPA recognizes that consumers need to 
understand the warranty implications of conversions and plans to convey 
this information to the public through outreach materials, Web site 
postings, and other communication channels.
6. Other Provisions Applicable to Conversion Manufacturers
    As stated above, all clean alternative fuel conversion 
manufacturers continue to be subject to labeling, warranty, and 
certification requirements applicable to new vehicle and engine 
manufacturers in 40 CFR parts 85 and 86.53 54 Conversion 
manufacturers will also continue to be exempt from fleet averaging and 
the averaging, banking, and trading credit programs available to OEMs 
as well as from the fuel economy labeling program in 40 CFR part 600.
---------------------------------------------------------------------------

    \53\ The labeling, warranty and certification requirements apply 
even if they are moved to other locations in the CFR.
    \54\ The 1994 rulemaking did not require fuel economy labeling 
to qualify for an exemption from the tampering prohibition. 
Similarly, this rule does not add a fuel economy labeling 
requirement or ABT provisions.
---------------------------------------------------------------------------

    Conversion manufacturers are subject to the recall regulations in 
40 CFR part 85, subpart S and the emission defect reporting 
requirements in 40 CFR part 85, subpart T. If EPA determines that a 
substantial number of vehicles or engines in a class or category do not 
meet applicable emission standards in actual use even though they are 
properly maintained and used, EPA can require the conversion 
manufacturer to recall and fix affected vehicles/engines.\55\ All 
conversion manufacturers are also required to report to EPA certain 
defects affecting emission-related parts.
---------------------------------------------------------------------------

    \55\ CAA section 207(c).
---------------------------------------------------------------------------

    Sections 206, 207 and 208 of the Act authorize EPA to establish 
procedures to ensure that production vehicles and engines comply with 
emission standards when they are new and continue to comply with 
emission requirements after they are in customer service. These 
provisions provide EPA broad authority to conduct testing as the 
Administrator deems necessary to monitor in-use vehicle and engine 
compliance. These emission testing programs cover clean alternative 
fuel conversions as well as OEM vehicles/engines.
7. Misapplication
    EPA may revisit the age-based approach should there at any time be 
evidence of widespread conversion system misapplication that can be 
traced to differences among the age-based demonstration or notification 
requirements. For example, if exempted outside useful life conversion 
systems are commonly marketed to vehicles/engines that are still within 
their useful life, EPA would not only consider the misapplication to be 
tampering, but would also consider revising this rule to eliminate or 
constrain the age-based demonstration approach.

G. Regulatory Procedures for Small Volume Manufacturers and Small 
Volume Test Groups, and Small Volume Engine Families

    EPA regulations afford certain flexibilities to small volume 
manufacturers in recognition of special compliance challenges they may 
face. The clean alternative fuels conversion industry has historically 
been comprised of companies that qualify for small volume manufacturer 
status. Eligibility criteria and special procedures available to small 
volume

[[Page 19840]]

conversion manufacturers and small volume test groups and engine 
families are discussed below.
1. Definition of Small Volume Manufacturers, Small Volume Test Groups, 
and Small Volume Engine Families
a. Light-Duty and Heavy-Duty Chassis Certified Vehicles
    EPA regulatory procedures specific to light-duty and heavy-duty 
chassis certified vehicle small volume manufacturers and small volume 
test groups are set forth in 40 CFR 86.1838-01. A conversion 
manufacturer is eligible for small volume manufacturer status for most 
light-duty and heavy-duty chassis certified vehicle procedures if the 
conversion manufacturer's annual model year motor vehicle and engine 
total sales volume in all States and territories of the United States 
(or aggregate sales volume for manufacturers in an aggregate 
relationship) is less than 15,000 units.\56\ (For sales aggregation 
rules for related manufacturers, refer to 40 CFR 86.1838-01(b)(3)). A 
large volume manufacturer may also use small volume manufacturer 
certification procedures for test groups of vehicles which total less 
than 15,000 units under certain circumstances. For small volume test 
group eligibility criteria for large volume manufacturers who 
participate in aggregate relationships, refer to 40 CFR 86.1838-
01(b)(2) for more details.
---------------------------------------------------------------------------

    \56\ 40 CFR 86.1838-01. Because conversion manufacturers, unlike 
OEMs, can sell their products for multiple model years, to determine 
small volume status, the number of conversions is the sum of the 
calendar year intermediate age conversions, outside useful life 
conversions, and the same conversion model year certified clean 
alternative fuel conversions. The number of conversions will be 
added to any other vehicle and engine sales accounted for using 40 
CFR 86.1838-01 or 40 CFR 86.098-14 as appropriate to determine small 
volume status.
---------------------------------------------------------------------------

b. Heavy-Duty Engines
    The EPA regulatory provisions for small volume heavy-duty engines 
and qualified small volume engine families are promulgated in 40 CFR 
86.094-14, 86.095-14, 86.098-14, and 86-096-24(e)(2). Heavy-duty engine 
small volume manufacturer status is tiered. Certain procedures apply to 
manufacturers with aggregate sales of less than 301 units, and other 
procedures may apply to manufacturers with aggregate sales volumes less 
than 10,000 units. For sales aggregation rules, refer to 40 CFR 86.094-
14(b)(2) and 86.094-14(b)(5). For small volume engine family 
eligibility criteria for large volume manufacturers, refer to 40 CFR 
86-096-24(e)(2) for more details.
2. Assigned Deterioration Factors
    All light-duty and heavy-duty chassis certified vehicle small 
volume manufacturers or qualified small volume test groups are eligible 
to use assigned deterioration factors in lieu of durability testing to 
predict emission rates at the end of a vehicle's useful life.\57\ EPA 
assigned deterioration factors for light-duty and heavy-duty chassis 
certified vehicles are authorized in 40 CFR 86.1826-01 and are 
periodically updated by EPA via manufacturer guidance letters.\58\
---------------------------------------------------------------------------

    \57\ See 40 CFR 86.1838-01(c)(1). Manufacturers not eligible for 
small volume manufacturer or small volume test group status are 
required to follow durability procedures in 40 CFR 86.1823-01, 
86.1923-08, 86.1824-01, 86.1824-07, 86.1824-08, 86.1825-01, and 
86.1825-08.
    \58\ The current light-duty and heavy-duty complete vehicles 
assigned deterioration factor guidance document issued pursuant to 
40 CFR 86.1826(b)(1)(ii) and (b)(2)(i)(c), is available 
electronically at http://iaspub.epa.gov/otaqpub/display_file.jsp?docid=14285&flag=1. The current heavy-duty engine assigned 
deterioration guidance letter is available electronically at http://iaspub.epa.gov/otaqpub/display_file.jsp?docid=14183&flag=1.
---------------------------------------------------------------------------

    Heavy-duty engine small volume manufacturers and qualified small 
volume engine families may also be eligible for assigned deterioration 
factors instead of conducting durability demonstrations.\59\ Under the 
current regulations, heavy-duty manufacturers with sales volumes of 
less than 10,000 units may be eligible to use assigned deterioration 
factors determined by EPA.
---------------------------------------------------------------------------

    \59\ See 40 CFR 86.094-14, 40 CFR 86.095-14, 40 CFR 86.096-14, 
49 CFR 86.098-14, 40 CFR 86-096-24(e)(2).
---------------------------------------------------------------------------

    Because assigned deterioration factors are determined assuming the 
vehicle or engine is new, EPA is adopting an allowance for small volume 
conversion manufacturers and qualified small volume conversion test 
groups/engine families to use deterioration factors, proportionate to 
the vehicle or engine age under certain conditions. This will help 
create a level playing field for older vehicles and engines that have 
already experienced some of their expected emissions degradation. 
Conversion manufacturers are eligible to use scaled deterioration 
factors for vehicles or engines that have accumulated more than 10,000 
miles. Scaled deterioration factors allow a proportionate scaling of 
the EPA assigned deterioration factor, if applicable, to demonstrate 
compliance with the intermediate and/or full useful-life standards. See 
Section IV.B.3.c.i for more detail.
    EPA received several comments about the use of assigned 
deterioration factors for conversion manufacturers. One commenter 
suggested that EPA should require converters who use assigned 
deterioration factors to submit a statement confirming conversion 
system durability and explaining why the system will not harm the 
emission control system or degrade the emissions. EPA agrees with this 
comment. Assigned deterioration factors, whether scaled or not, are 
intended to provide small volume manufacturers with a streamlined 
pathway for demonstrating that the vehicle or engine will meet full 
useful life standards. However, fuel conversion presents new challenges 
to assessing whether the engine and emission components will remain 
durable for the full useful life of the vehicle/engine. Therefore, EPA 
is adopting a requirement that conversion manufacturers using assigned 
deterioration factors must present detailed information to confirm the 
durability of all relevant new and existing components and to explain 
why the conversion system will not harm the emission control system or 
degrade the emissions.
3. Changes in Small Volume Status
    If a conversion manufacturer's annual sales volume may surpass the 
threshold for small volume manufacturer or qualified test group/engine 
family status for a given model year,\60\ the conversion manufacturer 
must satisfy the regulatory requirements required for large volume 
manufacturers, even if the conversion manufacturer initially complied 
properly (in a previous model year) with the small volume requirements. 
Conversion manufacturers should be aware that this status change could 
result in new demonstration and notification requirements involving new 
testing under both the new and intermediate age programs. EPA is 
requiring conversion manufacturers to report to EPA the number of 
conversion systems they have sold annually in an end-of year 
submission.
---------------------------------------------------------------------------

    \60\ To determine small volume manufacturer status the number of 
conversions is the sum of the calendar year intermediate age 
conversions, outside useful life conversions, and the same 
conversion model year certified clean alternative fuel conversions. 
The number of conversions will be added to any other vehicle and 
engine sales accounted for using 40 CFR 86.1838-01 or 40 CFR 86.098-
14 as appropriate to determine small volume manufacturer status.
---------------------------------------------------------------------------

    A change from small volume status to large volume status could 
occur in several different situations. First, if a conversion 
manufacturer has changed volume status and is therefore required to 
recertify a vehicle or engine as a large volume manufacturer, all large 
volume test procedures and requirements would need to be conducted 
prior to the issuance of the new certificate. Second,

[[Page 19841]]

if a small volume conversion manufacturer crosses the annual sales 
volume threshold and becomes a large volume conversion manufacturer, 
the conversion manufacturer must update the demonstration and complete 
all applicable large volume requirements for the intermediate age 
vehicle or engine conversions which are no longer eligible for small 
volume manufacturer or small volume test group/engine family.
    EPA received comment asking for compliance lead-time for conversion 
manufacturers that have outgrown small volume status and have become a 
large volume conversion manufacturer. EPA does not agree that a defined 
lead-time is necessary, since conversion manufacturers should be able 
to predict in advance and plan for changes in small volume status.

IV. Clean Alternative Fuel Conversion Program Details

    As summarized earlier in this preamble EPA is revising the 
demonstration and notification procedures for clean alternative fuel 
conversions based on the age of the vehicle or engine to be converted. 
All conversion manufacturers are required to demonstrate to EPA that 
the conversion satisfies technical criteria to qualify as a clean 
alternative fuel conversion, but demonstration and notification 
requirements are different depending on vehicle or engine age. The age-
specific requirements are summarized in Table IV-1 and are presented in 
detail below.
    The age-based demonstration and notification requirements stem from 
both legal and practical considerations. The distinctions between the 
demonstration required for new, intermediate age, and outside useful 
life vehicles/engines address the issues posed by the absence of 
applicable emission standards for converted vehicles/engines that have 
exceeded full useful life. This approach also recognizes that new 
vehicles/engines, at the time of conversion, should resemble the 
certified OEM configuration from the perspective of emissions 
degradation and should therefore be held to the same durability and 
deterioration factor demonstrations required for OEM certification. 
Intermediate age vehicles/engines fall between the new and outside 
useful life categories. While useful life standards still apply, 
certain certification requirements are no longer suitable for aging 
vehicles/engines.
    As with demonstration protocols, EPA believes different 
notification protocols are appropriate for the three age classes. The 
notification protocols reflect the level of detail EPA has determined 
to be necessary for conversion manufacturers to adequately document and 
for EPA to review the required emissions demonstration. The age-based 
notification system should streamline the notification process and 
create a simple system that both small and large conversion 
manufacturers can easily understand and follow.

                                                      Table IV-1--Overview of Program Elements \61\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                           Vehicle/engine age                               Conversion manufacturer requirement
-----------------------------------------------------------------------------------------------------------------   Certificate of     Compliance detail
                                                       Example for 2011                                               conformity       preamble section
            Category                 Applicability           \62\            Demonstration       Notification
--------------------------------------------------------------------------------------------------------------------------------------------------------
New.............................  MY > or = current   MY 2010, 2011,      Exhaust, evap, and  Certification       Yes...............  IV.A
                                   calendar year--1.   2012 and  full useful    justification       submission \64\.
                                                       life mileage.       \65\ and OBD scan
                                                                           tool test and
                                                                           attestation.
--------------------------------------------------------------------------------------------------------------------------------------------------------

A. New Vehicle and Engine Clean Alternative Fuel Conversion 
Certification Program
---------------------------------------------------------------------------

    \61\ See Section X of this preamble for more compliance details.
    \62\ This example is for Light-duty Tier 2 vehicles operating in 
the 2011 calendar year which have a useful life of 10 years or 
120,000 miles.
    \63\ Exhaust and evap refers to all exhaust emission testing and 
all evaporative emission and refueling emission testing required for 
OEM vehicle/engine certification, unless otherwise excepted. OBD 
testing refers to all OBD demonstration testing as required for OEM 
vehicle/engine certification. OBD scan tool test refers to the 
procedure described in section IV.B.3.d.
    \64\ The compliance notification process for intermediate age 
and outside useful life conversions will be electronic submission of 
data and supporting documents.
    \65\ The technical justification may include data from exhaust 
and evaporative emissions testing.
---------------------------------------------------------------------------

    EPA is requiring that conversions of new vehicles/engines (as 
defined for purposes of this preamble) \66\ be covered by a certificate 
of conformity in order to qualify for an exemption from the tampering 
prohibition. EPA will also allow, but not require, conversions of 
intermediate age vehicles and engines to qualify for an exemption from 
the tampering prohibition by obtaining a certificate of conformity (see 
Sections IV.A.1.b. and IV.B). Certification satisfies the statutory 
tampering exemption prerequisites that the conversion is ``for use of a 
clean alternative fuel'' and that the converted vehicle ``complies with 
the applicable standards under section 202.'' \67\
---------------------------------------------------------------------------

    \66\ See footnote 8.
    \67\ CAA 203(a)(3).
---------------------------------------------------------------------------

    EPA believes that certification of clean alternative fuel 
conversions remains an appropriate demonstration of compliance with 
useful life standards for new vehicles and engines. New vehicles and 
engines have not yet experienced deterioration and are still likely to 
be representative, for purposes of emissions, of the technical 
condition of the vehicle or engine that the OEM used for EPA 
certification. Thus the certification process is suitable for and may 
be directly applied to new vehicle and engine clean alternative fuel 
conversions.

[[Page 19842]]

    EPA also believes that a certification demonstration requirement 
for new vehicle and engine conversions is prudent to maintain a level 
playing field for OEMs and conversion manufacturers. The certification 
requirement for new vehicle and engine conversions reduces any 
incentive that might otherwise exist for OEMs to circumvent 
requirements by certifying a traditional configuration and then 
converting it, rather than certifying the alternative fuel 
configuration in the first place. New vehicles represent the vast 
majority of clean alternative fuel conversion activity. For model year 
2009, only two light duty vehicle fuel conversion certificates out of 
60 were issued based on data from a vehicle that was more than one year 
old. EPA believes that a new vehicle and engine certification 
requirement will continue to cover most newly developed clean 
alternative fuel conversion systems and therefore will preserve 
existing EPA control over their technical viability and environmental 
performance. While new vehicle and engine clean alternative fuel 
conversion manufacturers will continue to be subject to certification 
requirements, they will benefit from reduced burden because the 
tampering exemption conferred by certification is generally retained as 
the conversion test group/engine family covered by the exemption ages. 
This allows conversion manufacturers to continue to sell their products 
as vehicles and engines age without renewing certificates and paying 
further certification fees.\68\
---------------------------------------------------------------------------

    \68\ The exemption from tampering conferred by certification 
continues even after the certificate has expired. See Section 
IV.A.4.a.
---------------------------------------------------------------------------

    This final rule retains existing regulatory procedures for 
demonstration, notification, and compliance documents for clean 
alternative fuel conversion of new vehicles and engines. The 
demonstration of compliance with applicable standards will continue to 
use the same certification procedures previously applicable to 
conversion manufacturers with a few technical amendments and other 
allowances.\69\ The notification process will also remain unchanged for 
conversion of new vehicles and engines. Conversion manufacturers will 
continue to submit applications, including test data, certification 
fees, and other required information to EPA. The compliance document, a 
certificate of conformity, will also remain unchanged for conversion of 
new vehicles and engines.
---------------------------------------------------------------------------

    \69\ Technical amendments are described in Section V. See 
section IV.B.3.c.i for a description of the scaling of assigned 
deterioration factors for small volume manufacturers who conduct 
demonstration testing on a vehicle/engine with over 10,000 miles.
---------------------------------------------------------------------------

1. Applicability
a. New Vehicles and Engines
    EPA defines ``new and relatively-new'' (as discussed above in 
Section I in this preamble we refer to ``new and relatively-new'' 
vehicles and engines as ``new'') vehicle or engine clean alternative 
fuel conversions as those for which the date of conversion is in a 
calendar year that is not more than one year after the original model 
year (MY) of the vehicle or engine.\70\ For example, in calendar year 
2011, certified conversion systems are required for MY 2010, MY 2011, 
and MY 2012 vehicles or engines.
---------------------------------------------------------------------------

    \70\ OEM model years are often introduced ahead of the calendar 
year. Thus, to calculate which conversions must be certified, 
subtract the original vehicle/engine model year from the current 
calendar year. If the difference is one or less than one, then a 
certified conversion is required to qualify for the tampering 
exemption. If the difference is more than one, then the conversion 
may comply with the intermediate age or outside useful life 
provisions as applicable.
---------------------------------------------------------------------------

    As stated previously, EPA believes that certification is an 
appropriate requirement for new vehicles and engines because their 
emissions and mileage accumulation still largely reflect the vehicle's/
engine's condition at the time of OEM certification. For consumer and 
conversion manufacturer clarity, it makes sense to compare vehicle 
model year to the current calendar year. This can be accomplished by 
applying the formula presented in Table IV-1 above. In practice this 
means that certification is required for vehicles or engines that are 
less than about two years old.
    EPA received a few comments concerning the certification age 
threshold. Some comments suggested that the certification age threshold 
be shortened to one year, while other comments suggested that the 
certification provisions in the 1994 rulemaking be retained to keep the 
certification requirement for fuel conversion of all vehicles or 
engines within their useful life.
    When developing the proposed and final rules, EPA considered many 
options for the age threshold between the new and intermediate age 
programs. The decision to finalize a threshold of about two years 
reflects several factors. These include the interest described 
previously in maintaining consistency with OEM requirements; the need 
for an OEM-like demonstration when converting vehicles and engines that 
still resemble the technical condition of the original product; and the 
fact that most conversions under the previous subpart F regulations 
took place within the first two years of a vehicle's or engine's 
regulatory useful life. We chose two years as the cut-off point for the 
``new'' program to cover the vehicles and engines which are most likely 
to be converted, and which, because most of their useful life still 
remains, should be subject to the most rigorous demonstration 
requirement. No commenters provided data or technical justification to 
support a different age threshold than the one EPA proposed. Absent 
substantive evidence to support a different approach, EPA is finalizing 
the certification age threshold in the definition of ``new and 
relatively-new'' as proposed.
b. Older Vehicles and Engines
    Manufacturers of clean alternative fuel conversion systems for 
vehicles and engines that are older than the age range defined above 
for new vehicles and engines, but still fall within the original 
vehicle's or engine's useful life, may opt for certification as their 
demonstration of compliance with useful life standards. These systems 
are also eligible for the intermediate age program described in Section 
IV.B.
2. Test Groups, Engine Families, and Evaporative/Refueling Families
a. Test Groups for Light-Duty and Heavy-Duty Chassis Certified Vehicles
i. Small Volume Manufacturers and Small Volume Test Groups
    EPA will allow conversion manufacturers to combine several OEM test 
groups into larger conversion test groups, where the regulatory 
requirements of 40 CFR 86.1827-01 and 86.1820-01 are still satisfied. 
Test groups cannot span multiple durability groups.\71\ However, all 
clean alternative fuel conversion manufacturers who meet the small 
volume manufacturer or small volume test group criteria in 40 CFR 
86.1838-01 are eligible to use EPA assigned deterioration factors.\72\ 
By default the assigned deterioration factors define the durability 
group. Therefore, select criteria in the durability group 
determination, 40 CFR 86.1820-01, the test group determination, 40 CFR 
86.1827-01, and other additional criteria allow OEM test groups to be 
combined into a single clean alternative fuel conversion test group.
---------------------------------------------------------------------------

    \71\ 40 CFR 86.1827-01.
    \72\ 40 CFR 86.1826-01.
---------------------------------------------------------------------------

    Vehicles may be placed into the same clean alternative fuel 
conversion test

[[Page 19843]]

group using good engineering judgment if they satisfy the following: 
\73\
---------------------------------------------------------------------------

    \73\ Of the criteria listed, 4-6 are from 40 CFR 86.1827-01(a) 
and 7-11 are from 40 CFR 86.1820-01. To provide flexibility in 
combining OEM test groups, these criteria do not include the 
precious metal composition and catalyst grouping statistic criteria 
in 40 CFR 86.1820-01.

(1) Same OEM and OEM model year \74\
---------------------------------------------------------------------------

    \74\ Fuel conversion manufacturers will continue to be able to 
use carry-over of test results from one model year to the next if 
the OEM exercised such flexibility in accordance with EPA 
regulations.
---------------------------------------------------------------------------

(2) Same OBD group \75\
---------------------------------------------------------------------------

    \75\ On rare occasions, an OEM test group contains multiple OBD 
groups. When this occurs, EPA will allow the conversion test group 
to include the multiple OBD groups that are covered by the OEM test 
group.
---------------------------------------------------------------------------

(3) Same vehicle classification (e.g. light-duty vehicle, heavy-duty 
vehicle)
(4) Engine displacement is within 15% of largest displacement or 50 
CID, whichever is larger
(5) Same number of cylinders or combustion chambers
(6) Same arrangement of cylinders or combustion chambers (e.g. in-line, 
v-shaped)
(7) Same combustion cycle (e.g., two stroke, four stroke, Otto-cycle, 
diesel-cycle)
(8) Same engine type (e.g. piston, rotary, turbine, air cooled versus 
water cooled)
(9) Same OEM fuel type (except otherwise similar gasoline and E85 
flexible-fuel vehicles may be combined into dedicated alternative fuel 
vehicles)
(10) Same fuel metering system (e.g. throttle body injection vs. port 
injection)
(11) Same catalyst construction (e.g. beads or monolith, metal vs. 
ceramic substrate)
(12) All converted vehicles are subject to the most stringent emission 
standards used in certifying the OEM test groups within the conversion 
test group

    EPA received many comments requesting broader test group criteria 
and one comment suggesting that EPA retain the narrower OEM test group 
criteria. No data were provided to support either position, and EPA is 
finalizing the criteria as proposed. See the Response to Comments 
document for further discussion of this issue.
a. Dual-Fuel and Mixed-Fuel Vehicle Carry-Across Procedures for Small 
Volume Manufacturers and Small Volume Test Groups
    As described in Section III.F.1.c, dual-fuel and mixed-fuel 
vehicles cannot be certified to different standards for each fuel. 
Conversion test groups for dual-fuel and mixed-fuel vehicles cannot 
include vehicles subject to different OEM emission standards unless 
applicable exhaust and OBD demonstrations are also conducted for the 
original fuel(s) demonstrating compliance with the most stringent 
standard represented in the test group. However, if the vehicles 
otherwise meet the test group criteria described above, the exhaust 
emissions test data for the new alternative fuel from dual-fueled or 
mixed-fuel EDVs may be carried across to vehicles which otherwise meet 
the test group criteria above. Test data can only be carried across if 
the data demonstrate compliance with the most stringent standard among 
the vehicles to which they are being applied. This means that for dual-
fuel or mixed-fuel conversions a conversion manufacturer must apply for 
multiple certificates if the OEM vehicles in the proposed test group 
combination were originally certified to different standards; however, 
the data acquired on the alternative fuel may be applicable to multiple 
certificates when the test group criteria above are otherwise met and 
the data demonstrate that the most stringent standard within the group 
is met.
ii. Large Volume Manufacturers
    Large volume clean alternative fuel conversion manufacturers must 
create test groups according to the regulations in 40 CFR 86.1827-01. 
As required by these regulations, the conversion manufacturer must 
first create durability groups pursuant to 40 CFR 86.1820-01, and then 
divide those groups into test groups for the purposes of exhaust 
emissions testing.
b. Engine Families for Heavy-Duty Engines
i. Small Volume Manufacturers and Small Volume Engine Families
    This final rule allows combinations of several original OEM engine 
families into larger conversion engine families. Engines can be placed 
into the same clean alternative fuel conversion engine family using 
good engineering judgment if they satisfy the following: \76\

    \76\ These criteria are consistent with the 2009 guidance 
letter, CISD 09-14, which can be accessed electronically at http://iaspub.epa.gov/otaqpub/display_file.jsp?docid=20194&flag=1. This 
guidance letter was amended in October 2010 as CISD 10-24. CISD 10-
24 can be accessed electronically at http://iaspub.epa.gov/otaqpub/display_file.jsp?docid=23319&flag=1.
---------------------------------------------------------------------------

(1) Same OEM
(2) Same OBD group after 2013
(3) Same service class (e.g. light heavy-duty diesel engines, medium 
heavy-duty diesel engines, heavy heavy-duty diesel engines)
(4) Engine displacements is within 15% of largest displacement or 50 
CID, whichever is larger
(5) Same number of cylinders
(6) Same arrangement of cylinders
(7) Same combustion cycle
(8) Same method of air aspiration
(9) Same fuel type (e.g. diesel/gasoline)
(10) Same fuel metering system (e.g., mechanical direct or electronic 
direct injection)
(11) Same catalyst/filter construction (e.g., metal vs. ceramic 
substrate)
(12) All converted engines are subject to the most stringent emission 
standards. For example, 2005 and 2007 heavy-duty diesel engines may be 
in the same family if they meet the most stringent (2007) standards
(13) Same emission control technology (e.g., internal or external EGR)
a. Dual-Fuel and Mixed-Fuel Engine Carry-Across for Small Volume 
Manufacturers and Small Volume Engine Families
    Heavy-duty dual-fuel and mixed-fuel engines cannot be certified to 
different standards for each fuel.\77\ Conversion engine families for 
dual-fuel and mixed-fuel engines cannot include engines subject to 
different OEM emission standards unless applicable exhaust and OBD 
demonstrations are also conducted for the original fuel(s) 
demonstrating compliance with the most stringent standard represented 
in the engine family. However, if the engines would otherwise meet the 
engine family criteria described above, the exhaust emissions test data 
for the new alternative fuel from dual-fuel or mixed-fuel test engines 
may be carried across to engines which otherwise meet the engine family 
criteria above. Test data can only be carried across if the data 
demonstrate compliance with the most stringent standard among the 
engines to which they are being applied. This means that for dual-fuel 
and mixed-fuel conversions, a conversion manufacturer must apply for 
multiple engine family certificates if the OEM engines in the proposed 
engine family combination were originally certified to different 
standards; however, the data acquired on the alternative fuel may be 
applicable to multiple certificates when the engine family criteria 
above are otherwise met and the data demonstrate that the most 
stringent standard within the conversion engine family is met.
---------------------------------------------------------------------------

    \77\ See Section III.F.1.c.
---------------------------------------------------------------------------

ii. Large Volume Manufacturers
    All large volume heavy-duty engine conversion manufacturers must 
create

[[Page 19844]]

engine families as set forth in 40 CFR 86.001-24.
c. Evaporative/Refueling Families
    Conversion manufacturers are required to follow the regulatory 
provisions for designating evaporative and refueling families. These 
provisions are located in 40 CFR 86.1821-01 for light-duty vehicles and 
heavy-duty chassis certified vehicles and in 40 CFR 86.096-24(a)(12)-
(13) for heavy-duty engines. If the clean alternative fuel conversion 
system continues to use the OEM evaporative/refueling emissions system 
in its original configuration, the conversion evaporative/refueling 
family will remain identical to the OEM evaporative/refueling family. 
If, however, the conversion requires an alternative evaporative/
refueling system (as for pressurized fuels, such as CNG and LPG), then 
the conversion manufacturer may create a single evaporative/refueling 
family as long as the regulatory criteria for evaporative/refueling 
families are met. Small volume conversion manufacturers may use EPA 
assigned evaporative/refueling deterioration factors in lieu of 
evaporative/refueling durability demonstrations.
    Clean alternative fuel conversion evaporative families for dual-
fueled and mixed fuel vehicles and engines must not include vehicles 
and engines that were originally certified to different evaporative 
emission standards. Conversion evaporative/refueling families for dual-
fuel and mixed-fuel vehicles/engines cannot include vehicles/engines 
subject to different OEM evaporative/refueling standards unless 
evaporative/refueling demonstrations are also conducted for the 
original fuel(s) demonstrating compliance with the most stringent 
standard represented in the evaporative/refueling family.
3. Certification Demonstration Requirements
    Certification for clean alternative fuel conversions will follow 
the certification procedures, such as those specified in 40 CFR part 
86, subpart A, B and/or S and 40 CFR part 1065 as applicable, subject 
to the exceptions and special provisions described in Section III.F.1.a 
and Section V, if applicable.
a. Exhaust Emissions
i. Light-Duty and Heavy-Duty Chassis Certified Vehicles
    The exhaust emissions testing demonstration for light-duty and 
heavy-duty chassis certified vehicles must be conducted on a test group 
basis. The worst-case EDV from each test group must be used to 
demonstrate compliance with the most stringent standards represented 
among the OEM vehicles when they were originally certified. All 
applicable exhaust certification requirements and test procedures which 
are required in regulations for OEM certification are required for fuel 
conversion certification. Test procedures and certification 
requirements are currently located in 40 CFR part 86 and 40 CFR part 
1065.
ii. Heavy-Duty Engines
    The exhaust emissions testing demonstration for heavy-duty engines 
must be conducted on an engine family basis. The worst-case EDE from 
each engine family must be used to demonstrate compliance with the most 
stringent standards represented among the OEM engines when they were 
originally certified. All exhaust certification requirements and test 
procedures that are required in regulations for OEM certification are 
required for fuel conversion certification. Test procedures and 
certification requirements are currently located in 40 CFR part 86 and 
part 1065.
b. Evaporative/Refueling Emissions
    EPA will retain the evaporative and refueling emissions test 
procedures and requirements promulgated in 40 CFR part 86 and part 1065 
as the demonstration requirement for clean alternative fuel conversion 
certification. Please see the technical amendments discussed in Section 
V for fuel-specific amendments that apply to conversions to CNG (or 
LNG), LPG, or hydrogen fuels.
c. Durability Demonstration and Assigned Deterioration Factors
i. Small Volume Manufacturers and Small Volume Test Groups/Engine 
Families
a. Light-Duty and Heavy-Duty Chassis Certified Vehicles
    As noted in Section III.G.2 above, small volume light-duty and 
heavy-duty chassis certified vehicle conversion manufacturers and 
eligible small volume test groups are permitted to use EPA assigned 
deterioration factors in lieu of exhaust and evaporative/refueling 
durability demonstrations. If the EDV has accrued more than 10,000 
miles, the conversion manufacturer may use scaled assigned 
deterioration factors described in Section IV.B.3.c below.\78\
---------------------------------------------------------------------------

    \78\ This is due in part to the Fuel Economy testing 
requirements which effectively limit the testing of vehicles with 
more than 10,000 miles.
---------------------------------------------------------------------------

b. Heavy-Duty Engines
    For consistency with light-duty vehicles, EPA also will allow 
heavy-duty engine conversion manufacturers who are eligible to use EPA 
assigned deterioration factors to use scaled assigned deterioration 
factors when the EDE has accrued more than 10,000 miles.
ii. Large Volume Manufacturers
    Large volume conversion manufacturers are required to conduct all 
applicable durability testing demonstrations.
d. On-Board Diagnostics
    EPA believes that a fully functional OBD system is valuable in 
sustaining long-term emissions control and therefore the same OBD 
requirements that apply to OEMs continue to apply to clean alternative 
fuel conversion systems. The certification demonstration requires a 
submission of emissions data to prove that the OBD continues to 
function and the Malfunction Indicator Light (MIL) illuminates at the 
proper thresholds as set forth in 40 CFR 86.1806-01, 86.1806-04, and 
86.1806-05 for light-duty vehicles and heavy-duty chassis certified 
vehicles. If an OEM heavy-duty engine was certified with an OBD 
requirement, the conversion must also meet the applicable OBD 
requirements, unless an alternative fuel OBD requirement is otherwise 
excepted from the OBD regulations. Heavy-duty engine OBD requirements 
are promulgated in 40 CFR 86.007-17, 86.007-30, 86.010-18, and 86.010-
38. In addition to conducting OBD testing as required for 
certification, conversion manufacturers must submit the following 
statement of compliance, if the OEM vehicles/engines are OBD equipped. 
``The test group/engine family converted to an alternative fuel has 
fully functional OBD systems and therefore meets the OBD requirements 
such as those specified in 40 CFR 86, subparts A and S when operating 
on the alternative fuel.'' \79\
---------------------------------------------------------------------------

    \79\ This statement was described in the proposal under 
statements of compliance that may be permitted; however, EPA 
believes that it is important to ask each conversion manufacturer to 
attest to this statement, even if OBD testing is conducted.
---------------------------------------------------------------------------

4. Certification Notification Process
    The conversion certification notification process is based on the 
OEM certification procedures, such as those specified in 40 CFR part 86 
and part 1065, as applicable. The notification requirement continues to 
incorporate the entire OEM certification process. If the OEM 
certification process

[[Page 19845]]

is amended in the future, the fuel conversion certification procedures 
will also change, unless otherwise specified at that time.
    In addition, an OBD attestation is required as described in section 
IV.A.3.d and small volume conversion manufacturers and qualified small 
volume test groups/engine families using EPA assigned deterioration 
factors must present detailed information to confirm the durability of 
all relevant new and existing components and to explain why the 
conversion system will not harm the emission control system or degrade 
the emissions.
    The certification process may permit several statements of 
compliance or attestations in lieu of test data in the application for 
certification. Some of these are found in the OEM certification 
regulations, such as 40 CFR part 86, subparts A, B, and S and 40 CFR 
part 1065. In addition, the following statements specific to dual-fuel 
and mixed-fuel clean alternative fuel conversion may be permitted in 
lieu of test data, if appropriate:
    1. ``The test group/engine family converted to dual-fuel or mixed-
fuel operation retains all the OEM fuel system, engine calibration, and 
emission control system functionality when operating on the fuel with 
which the vehicle/engine was originally certified.''
    2. ``The test group/engine family converted to dual-fuel or mixed-
fuel operation retains all the functionality of the OEM OBD system (if 
so equipped) when operating on the fuel with which the vehicle/engine 
was originally certified.''
    3. ``The test group/engine family converted to dual-fuel or mixed-
fuel operation properly purges hydrocarbon vapor from the evaporative 
emission canister when the vehicle/engine is operating on the 
alternative fuel.''
a. Certificate Expiration and Re-Certification
    Conversion certificates expire on December 31 of the conversion 
model year for which they are issued. Conversion manufacturers who wish 
to renew a certificate that has expired may re-certify the same 
conversion group in subsequent years using the same data. To re-
certify, the manufacturer would update the cover page of the 
application, re-enter the necessary data into EPA's on-line data 
submission Web site, and submit the certification fees.\80\
---------------------------------------------------------------------------

    \80\ If a conversion manufacturer projects sales in the 
following calendar year, EPA will issue the certificate of 
conformity for the later model year, so that fees are paid based on 
sales that include the first full year of sales.
---------------------------------------------------------------------------

    EPA received numerous comments about recertification. Many comments 
requested that EPA issue non-expiring certificates to spare 
manufacturers from the burden of re-certifying an already-certified 
test group or engine family. Manufacturers stated that they must re-
certify to retain eligibility for various tax credits and other 
incentives that require a valid certificate, as well as to retain 
protection from a tampering violation.
    EPA agrees with commenters who note that annual certificate renewal 
confers little benefit when there are no changes to the manufacturer, 
conversion technology, or vehicles/engines to which the technology will 
be applied. However, EPA believes these concerns can be better 
addressed by clarifying that a certified conversion system does not 
lose its tampering exemption when the certificate expires, rather than 
by creating a new type of non-expiring certificate. Thus, the program 
EPA is finalizing provides compliance options for conversion 
manufacturers who wish to retain protection against a tampering 
violation but who do not wish to recertify. First, EPA has determined 
that an exemption from the CAA tampering prohibition secured through 
certification does not expire with the certificate, as long as the 
conditions under which the certificate was issued remain unchanged. If 
conditions change, the exemption would not remain valid and the 
manufacturer would need to re-certify or apply for the intermediate age 
or outside useful life programs, if applicable, to retain protection 
against a tampering violation. A change from small to large volume 
manufacturer status, for example, would necessitate a new demonstration 
and notification since large volume conversion manufacturers have 
different requirements than small volume conversion manufacturers. 
Second, manufacturers who obtained a clean alternative fuel conversion 
certificate under the previous subpart F regulations retain the 
tampering exemption conferred by certification, as long as conditions 
have not changed.\81\ Third, EPA will consider the tampering exemption 
conferred by certification to remain with the test group/engine family 
as it gets older, extending protection through intermediate age and 
outside useful life status. This allows conversion manufacturers to 
continue to sell their products without renewing the certificate and 
paying further certification fees, again assuming no change to 
conditions under which the certificate was issued.\82\ This means that 
conversion manufacturers only need to interact with EPA once as long as 
the conditions under which the certificate was issued remain 
unchanged.\83\ Fourth, EPA will clarify with State, Federal, and other 
organizations offering alternative fuel incentives that EPA considers a 
certified conversion system to retain its tampering exemption, even 
after the certificate has expired.
---------------------------------------------------------------------------

    \81\ This exemption is only permitted if all program 
requirements continue to be met and no new testing is required, such 
as new testing required for conversion manufacturers who change from 
small to large volume manufacturer status. The exemption from 
tampering is valid only if the conversion is installed on the OEM 
test groups/engine families and/or evaporative emissions/refueling 
families listed on the notification.
    \82\ The exemption from tampering conferred by certification 
continues even after the date of expiration on the certificate has 
passed causing it to expire.
    \83\ Alternatively, conversion manufacturers may choose to re-
certify, as described above, or they may submit data and other 
notification requirements for inclusion in the intermediate age and 
outside useful life programs at any time concurrent with or 
subsequent to certification. This can occur even if the test group 
or engine family includes vehicles/engines that would otherwise not 
have reached the intermediate age threshold.
---------------------------------------------------------------------------

5. In-Use Compliance
    Clean alternative fuel conversion manufacturers are subject to in-
use requirements. Many of these are described in Section III above, 
including warranty, defect reporting and recall requirements, as well 
as EPA's authority to perform in-use testing.

B. Intermediate Age Vehicle and Engine Clean Alternative Fuel 
Conversion Program

    EPA is adopting an alternative to certification to satisfy the 
compliance demonstration and notification requirements for vehicles and 
engines that are no longer new but still fall within their useful life. 
The intermediate age vehicle and engine compliance program 
(intermediate age program) requires conversion manufacturers to 
demonstrate through testing that the converted vehicle or engine will 
continue to meet applicable standards through its useful life.
    Alternatively, to qualify for an exemption from the tampering 
prohibition, manufacturers may opt to certify conversion systems for 
intermediate age vehicles and engines as if they were new vehicles and 
engines. See Section IV.A.
    The establishment of an alternative to certification for 
intermediate age vehicle and engine conversion systems addresses EPA's 
interest in creating a streamlined compliance process that is 
appropriate for vehicles and engines that have been subject to real-
world aging. EPA does not believe certification

[[Page 19846]]

of intermediate age vehicles and engines is necessary because they are 
generally no longer representative of certification vehicles/engines. 
EPA originally developed the certification test procedures for new OEM 
vehicles and engines. Typical OEM vehicles delivered to EPA for 
confirmatory testing are recently manufactured pre-production models 
with about 4,000 miles of engine and emission control system 
stabilization mileage. No OEM vehicles with more than 10,000 miles are 
tested for certification.\84\
---------------------------------------------------------------------------

    \84\ This is due in part to fuel economy testing regulations 
which limit the accrued mileage for a fuel economy test vehicle to 
10,000 miles. 40 CFR 600.007-08(b)(1).
---------------------------------------------------------------------------

    The program for intermediate age vehicles and engines maintains 
many of the existing certification test procedures, but departs from 
new and relatively-new vehicle or engine certification requirements in 
several notable areas. The demonstration of compliance with applicable 
standards employs the same procedures required of certified conversion 
manufacturers for exhaust and evaporative emissions testing.\85\ 
However, the OBD demonstration requirement is different. Instead of 
conducting OBD demonstration testing as required for certification, 
conversion manufacturers may be able to meet the intermediate age OBD 
demonstration requirement by attesting that the OBD system is fully 
functional and by submitting an OBD scan tool report.\86\ The 
notification process is also different for intermediate age vehicles 
and engines. Conversion manufacturers submit test data, attestations, 
and other required information to EPA using an electronic submission 
process. The application process is streamlined and conversion 
manufacturers participating in the intermediate age program are not 
required to pay certification fees. Conversion manufacturers 
participating in the intermediate age program will not receive a 
certificate of conformity. Rather, EPA will maintain a publicly 
available list identifying conversion systems that have satisfied the 
intermediate age demonstration and notification requirements.
---------------------------------------------------------------------------

    \85\ The technical amendments described in Section V and the 
scaling of assigned deterioration factors described in section 
IV.B.3.c.i are available for the intermediate age program.
    \86\ See Section IV.B.4 for more information about the required 
OBD attestations. See section IV.B.3.d for a description of the OBD 
scan tool procedure.
---------------------------------------------------------------------------

1. Applicability
    Vehicles and engines become eligible for the intermediate age 
compliance program when the date of their conversion is in a calendar 
year that is at least two years after the original model year of the 
vehicle or engine, i.e. when they are about two years old. For example, 
in calendar year 2011, model year 2009 and earlier vehicles and engines 
are eligible for the intermediate age program.
    Manufacturers of conversion systems for vehicles and engines that 
are outside their full useful life may also use the intermediate age 
program as a demonstration sufficient to qualify for the clean 
alternative fuel conversion exemption from tampering. Conversion 
manufacturers that choose to participate in the intermediate age 
program must demonstrate compliance with the full useful life 
standards, even if the vehicle or engine has surpassed its useful life 
in age or mileage. Outside useful life converters who choose to seek 
exemption from tampering through the intermediate age program will not 
be required to generate or use deterioration factors.
2. Test Groups, Engine Families and Evaporative/Refueling Families
a. Test Groups for Light-Duty and Heavy-Duty Chassis Certified Vehicles
i. Small Volume Manufacturers and Small Volume Test Groups
    Small volume conversion manufacturers and qualified small volume 
test groups of conversion systems for intermediate age vehicles are 
permitted some additional flexibility in creating test groups to which 
the conversion is applicable. The primary difference between test group 
criteria for the new and intermediate age programs is the elimination 
of the OBD group criterion under the intermediate age program. Vehicles 
can be placed into the same clean alternative fuel conversion test 
group using good engineering judgment if they satisfy the following:

(1) Same OEM and OEM model year \87\
---------------------------------------------------------------------------

    \87\ Aftermarket fuel converters are currently permitted to use 
carry-over of test results from one model year to the next if the 
OEM exercised such flexibility in accordance with EPA regulations.
---------------------------------------------------------------------------

(2) OBD still functional \88\
---------------------------------------------------------------------------

    \88\ Note that a functional OBD system means that it must 
function properly, must not be disabled, there are no MILS, no false 
MILs or false Diagnostic Trouble Codes, and all readiness flags must 
be set.
---------------------------------------------------------------------------

(3) Same vehicle classification (e.g., light-duty vehicle, heavy-duty 
vehicle)
(4) Engine displacement (within 15% of largest displacement or 50 CID, 
whichever is larger)
(5) Same number of cylinders or combustion chambers
(6) Same arrangement of cylinders or combustion chambers (e.g., in-
line, v-shaped)
(7) Same combustion cycle (e.g., two stroke, four stroke, Otto-cycle, 
diesel-cycle)
(8) Same engine type (e.g., piston, rotary, turbine, air cooled versus 
water cooled)
(9) Same OEM fuel type (except otherwise similar gasoline and E85 
flexible-fuel vehicles may be combined into dedicated alternative fuel 
vehicles)
(10) Same fuel metering system (e.g., throttle body injection vs. port 
injection)
(11) Same catalyst construction (e.g., beads or monolith, metal vs. 
ceramic substrate)
(12) All converted vehicles are subject to the most stringent emission 
standards used in certifying the OEM test groups within the conversion 
test group
ii. Large Volume Manufacturers
    Large volume manufacturers may use the same test group combination 
flexibility as small volume manufacturers when designating intermediate 
age vehicle test groups. See Section IV.B.2.a.i for details. However, 
large volume manufacturers are required to conduct durability testing, 
as noted below.
iii. Dual-Fuel and Mixed-Fuel Vehicle Carry-Across
    Dual-fuel and mixed-fuel vehicles which have different standards 
must create a separate submission to EPA for each OEM test group with 
different standards. Conversion test groups for dual-fuel and mixed-
fuel vehicles cannot include vehicles subject to different OEM emission 
standards unless applicable exhaust and OBD demonstrations are also 
conducted for the original fuel(s) demonstrating compliance with the 
most stringent standard represented in the test group. However, as is 
described above in Section IV.A.2.a.i.a, test data from an EDV on the 
alternative fuel may be used to satisfy the demonstration requirement 
of multiple OEM test groups if the conversion test group criteria 
described above are otherwise met and the data demonstrate compliance 
with each standard.
b. Engine Families for Heavy-Duty Engines
i. Small Volume Manufacturers and Small Volume Engine Families
    The same engine family combination criteria that are described in 
Section IV.A.2.b.i are permitted for clean alternative fuel conversion 
of intermediate age engines, except that

[[Page 19847]]

the same OBD grouping is not a criterion.
ii. Large Volume Manufacturers
    Large volume manufacturers are permitted to use the same 
flexibility as small volume manufacturers when designating intermediate 
age heavy-duty engine families. See Section IV.B.2.b.i for details. 
However, large volume manufacturers are required to conduct durability 
testing.
iii. Dual-Fuel and Mixed-Fuel Engine Carry-Across
    Data carry-across procedures for dual-fuel and mixed-fuel new 
engines described in Section IV.A.2.b.i.a are also applicable for dual-
fuel and mixed-fuel intermediate age engines.
c. Evaporative/Refueling Families
    The evaporative family criteria under the intermediate age program 
remain as provided in 40 CFR part 86. If the OEM evaporative system is 
no longer functionally necessary (e.g., conversion to dedicated CNG or 
LPG), then conversion manufacturers may create new evaporative 
conversion groups following the criteria in 40 CFR 86.1821-01 for 
light-duty and heavy-duty chassis certified vehicles and 40 CFR 86.096-
24(a)(12)-(13) for heavy-duty engines. Clean alternative fuel 
conversion evaporative/refueling families for dual-fueled or mixed-fuel 
vehicles/engines cannot include vehicles/engines that were originally 
certified to different evaporative emission standards. Conversion 
evaporative/refueling families for dual-fuel and mixed-fuel vehicles/
engines cannot include vehicles/engines subject to different 
evaporative emission standards unless evaporative/refueling 
demonstrations are also conducted for the original fuel(s) 
demonstrating compliance with the most stringent standard represented 
in the evaporative/refueling family.
3. Demonstration Requirements
    The demonstration requirements for clean alternative fuel 
conversions are based on the certification procedures, such as those 
specified in 40 CFR part 86, subparts A, B and/or S and 40 CFR part 
1065 as applicable, subject to the exceptions and special provisions 
described in this section, Section III.F.1.a and Section V, if 
applicable.
a. Exhaust Emissions
    The exhaust emissions demonstration is conducted on a test group 
(light-duty) or engine family (heavy-duty) basis. The worst-case EDV or 
EDE from each test group or engine family must be used to demonstrate 
compliance with the most stringent standards represented among the OEM 
vehicles or engines when they were originally certified. All exhaust 
demonstration requirements and test procedures which are required in 
regulations for OEM certification are required for fuel conversion 
compliance. Test procedures and other requirements are currently 
located in 40 CFR part 86 and 40 CFR part 1065.
b. Evaporative/Refueling Emissions
    The test procedures to demonstrate that a vehicle or engine will 
meet evaporative standards during normal vehicle operation, including 
refueling, are currently specified in 40 CFR part 86 and part 1065. 
These test procedures and other requirements continue to apply for the 
intermediate age vehicle and engine fuel conversion program. Please see 
the technical amendments discussed in Section V for fuel-specific 
amendments which apply to conversions to CNG (or LNG) and LPG or 
hydrogen fuels.
c. Durability Demonstration and Assigned Deterioration Factors
i. Small Volume Manufacturers and Small Volume Test Groups/Engine 
Families
    As noted in Section III.G.2 above, small volume manufacturers and 
eligible small volume test groups/engine families are permitted to use 
EPA assigned deterioration factors in lieu of exhaust and evaporative/
refueling durability demonstrations. EPA is retaining this option for 
purposes of evaluating conversion systems that will be applied to 
intermediate age vehicles and engines. In addition, EPA is finalizing a 
new concept which is applicable to EDVs and EDEs with more than 10,000 
miles. EPA will allow small volume manufacturers to use ``scaled 
deterioration factors.'' Scaled deterioration factors are derived using 
current assigned deterioration factors to determine mileage applicable 
deterioration factors from 10,000 miles through intermediate useful 
life and from intermediate useful life through full useful life.\89\ 
Although the actual rates of emissions deterioration from 10,000 miles 
to intermediate useful life and from intermediate useful life to full 
useful life may vary, EPA assumed a linear increase of emissions with 
increasing mileage in order to facilitate a simple scaling of the EPA 
assigned deterioration factors. In the future, EPA may issue guidance 
to adjust these scaled assigned deterioration factors if we find the 
rate of deterioration non-constant or the rate differs by fuel type. 
Mathematically, a constant rate of deterioration can be expressed as:
---------------------------------------------------------------------------

    \89\ Intermediate standards only apply to those vehicles 
originally certified with intermediate standards.
[GRAPHIC] [TIFF OMITTED] TR08AP11.000

    Note: This does not mean that the deterioration factor increases 
linearly with mileage. The equation assumes that the grams of 
pollutant per mile increases at a constant rate as vehicle mileage 
---------------------------------------------------------------------------
increases.

    In addition to this primary assumption, EPA will use these two 
definitions:
[GRAPHIC] [TIFF OMITTED] TR08AP11.001

Where:
ADF(FUL) is the full useful life assigned multiplicative 
deterioration factor.
FULgpm is the grams per mile of pollutant projected at full useful 
life.

[[Page 19848]]

INITgpm is the grams per mile of pollutant measured at the beginning 
of the vehicle or engine's useful life.
SDF(FUL) is the scaled full useful life multiplicative deterioration 
factor.
MGgpm is the grams per mile of pollutant at the actual mileage of 
EDV or EDE.

    Based on the assumption in equation 1:
    [GRAPHIC] [TIFF OMITTED] TR08AP11.002
    
Where:
FULMG is the appropriate full useful life mileage.
MG is the actual mileage of the EDV/EVE.
INITMG is the mileage at the beginning of the useful life. Note that 
this value is zero for heavy-duty vehicles, since evaluation is done 
at the zero-hour level.

    From this expression, equations 2 and 3 can be used to ultimately 
arrive at:
[GRAPHIC] [TIFF OMITTED] TR08AP11.003

    This equation shows how the scaled full useful life multiplicative 
deterioration factor can be calculated using the emissions data vehicle 
or engine mileage and the assigned full useful life multiplicative 
deterioration factor.
    By carrying out the same processes, scaled intermediate useful life 
of deterioration factors, where applicable, can be determined by the 
expression:
[GRAPHIC] [TIFF OMITTED] TR08AP11.004

Where:
SDF(MID) is the scaled intermediate useful life multiplicative 
deterioration factor.
MIDMG is the intermediate useful life mileage.
ADF(MID) is the intermediate useful life assigned multiplicative 
deterioration factor, where applicable.

    In the same manner, additive scaled deterioration factors could 
also be derived. The resulting equation is:
[GRAPHIC] [TIFF OMITTED] TR08AP11.005

Where:
ODF is the OEM's original additive deterioration factor and ASDF is 
the additive scaled deterioration factor.

    Only the full useful life scaled additive deterioration factor 
equation is presented here. However, the intermediate useful life 
scaled additive deterioration factor equation follows the same syntax 
except that the intermediate useful life additive deterioration factor 
is substituted in Equation 6 for ODF, and the intermediate age useful 
life is substituted for FULMG.
    Equations 4, 5 and 6 are used to scale deterioration factors of 
vehicles with more than 10,000 miles used in the testing of clean 
alternative fuel conversions, for demonstration of compliance with 
exhaust and evaporative/refueling emissions standards. EPA may issue 
guidance to update or adjust these equations.
ii. Large Volume Manufacturers
a. Light-Duty and Heavy-Duty Chassis Certified Vehicles
    Durability testing is required for large volume manufacturers of 
clean alternative fuel conversions of intermediate age vehicles. 
Durability groups for intermediate age vehicles shall be designated 
using the provisions set forth in 40 CFR 86.1820-01, except the 
durability grouping criteria for intermediate age vehicles need not 
include the precious metal composition and catalyst grouping statistic 
criteria, since they are not included in the test group criteria for 
clean alternative fuel conversions.
b. Heavy-Duty Engines
    Durability testing is required for large volume manufacturers of 
clean alternative fuel conversions for intermediate age engines.
d. On-Board Diagnostics
    EPA believes a properly functioning OBD system is essential to 
maintaining emissions compliance in aging vehicles and engines. 
However, EPA believes that the OBD demonstration for intermediate age 
vehicles and engines can be streamlined relative to the current 
certification requirements. In lieu of submitting OBD test data as is 
required for certification, manufacturers of intermediate age clean 
alternative fuel conversion systems may be able to submit an OBD scan 
tool report showing results of an OBD scan tool test procedure and 
attest that the OBD

[[Page 19849]]

system remains fully functional in the converted vehicle/engine. The 
attestation must state that the test group/engine family converted to 
an alternative fuel has fully functional OBD systems and therefore 
meets the OBD requirements such as those specified in 40 CFR part 86, 
subparts A and S when operating on the alternative fuel. This includes 
any new monitoring capability necessary to identify potential emission 
problems associated with the new fuel. Typical OBD monitors include but 
are not limited to: Fuel trim lean and rich, catalyst deterioration, 
engine misfire, oxygen sensor deterioration, EGR system (if 
applicable), and vapor leak (if applicable). Conversion manufacturers 
are not allowed to alias, remove, bypass, or turn off any applicable 
original OBD system monitor. Furthermore the MIL is required to 
continue to function properly and not illuminate unless system 
indicators or emission thresholds are truly being exceeded. EPA also 
requires readiness flags to be properly set for all monitors that 
identify any malfunction for all monitored components.
    EPA requested comment as to whether the scan tool procedure 
proposed as ``Option 3'' for outside useful life vehicles/engines would 
also be appropriate for the intermediate age program. Comments stated 
that this demonstration would provide additional assurance that the OBD 
system remains fully functional. EPA agrees and is including use of 
this procedure in the OBD demonstration requirement for intermediate 
age vehicles. The procedure involves: using an OBD scan tool to clear 
all readiness codes (set codes to ``not ready''); driving the vehicle/
operating the engine until it triggers all codes to be set to ready; 
and then using an OBD scan tool to interrogate the OBD system.
    Intermediate age converters may satisfy the OBD demonstration 
requirement either by completing the OBD demonstration described in new 
vehicle certification (Section IV.A.4) or by following the procedures 
described in the preceding paragraph.
    EPA proposed using the procedures described in 40 CFR 85.2222 to 
satisfy the OBD demonstration requirements for the intermediate age 
conversions. These regulations establish a test procedure which checks 
the status of OBD readiness monitors, checks to determine if the OBD 
MIL is functional (bulb check), checks for commanded-on MIL 
illumination, and records all diagnostic trouble codes if the MIL is 
illuminated. However, these regulations reference Society of Automotive 
Engineers (SAE) OBD diagnostic mode assignments that are specific to 
light-duty vehicles and light-duty trucks. In order to be clear that 
the OBD scan tool procedure described above applies to all vehicles and 
engines that are required to comply with OBD regulations, we are adding 
the process described in 40 CFR 85.2222 to the new subpart F 
regulations, without the specific references to the light-duty vehicle 
OBD procedures. Any scan tool that displays the supported monitors, 
lists their corresponding readiness status, and reports all emission 
related pending and confirmed diagnostic trouble codes is considered 
acceptable.
    An acceptable OBD demonstration under the intermediate age vehicle 
and engine program must include a printout of scan tool results 
following the fuel conversion showing that all supported monitors have 
been set to ready and there are no pending or confirmed diagnostic 
trouble codes. The vehicle/engine information number (VIN/EIN) must be 
provided with the scan tool report. Given the changes to the vehicle/
engine resulting from the fuel conversion process, some monitors in the 
OEM OBD system may no longer be supported. For example, the evaporative 
emissions readiness monitor may need to remain unset for conversions in 
which the original evaporative emissions system is no longer 
functionally necessary.
    EPA received comments that expressed concerns about the adequacy of 
a scan tool test. Although EPA believes the scan tool test will be 
sufficient in most cases, EPA may require OBD testing as described for 
certification in Section IV.A.3.d if the OBD scan tool report is not 
sufficient to demonstrate proper OBD operation.
4. Notification Process
    Intermediate age clean alternative fuel conversion manufacturers 
must complete and submit EDV/EDE information, test data, compliance 
statements and all other appropriate information electronically. EPA 
intends to provide information about the notification process through 
its Web site and other information dissemination mechanisms.
    The conversion manufacturer must enter information about the EDV or 
EDE, emission results from the exhaust and evaporative emissions 
testing, including any permissible carry-over data, applicable exhaust 
and evaporative emission standards and deterioration factors, and the 
OEM test groups or engine families and evaporative/refueling families 
for which the conversion system is intended. In this submission, the 
conversion manufacturers may use the appropriate exhaust and 
evaporative emissions scaled deterioration factors for vehicles and 
engines with greater than 10,000 miles as described in Section 
IV.B.3.c.i to demonstrate that the converted vehicle/engine meets the 
same standards to which the OEM vehicle or engine was certified. In 
addition, small volume conversion manufacturers and qualified small 
volume test groups/engine families using EPA assigned deterioration 
factors must present detailed information to confirm the durability of 
all relevant new and existing components and to explain why the 
conversion system will not harm the emission control system or degrade 
the emissions.
    The conversion manufacturer must submit the scan tool demonstration 
data resulting from an interrogation of the OBD system as described in 
Section IV.B.3.d and submit the OBD statement of attestation as 
described in that section.
    The intermediate age program notification requirements also include 
submission of any required compliance statements and other supporting 
documents such as an example label and packaging information, warranty 
provisions, and maintenance requirements. The specific set of necessary 
compliance statements will depend on the vehicle or engine category, 
the applicable standards, the alternative fuel type, and other factors.
    The intermediate age vehicle and engine notification process will 
permit conversion manufacturers to submit statements of compliance or 
attestations instead of submitting test data for certain system 
features. Some of these compliance statements are found in the OEM 
certification regulations, such as in 40 CFR part 86, subparts A, B, 
and S and 40 CFR part 1065. In addition, the following statements 
specific to dual-fuel and mixed-fuel clean alternative fuel conversion 
may be permitted in lieu of test data, if appropriate:
    1. ``The test group/engine family converted to dual-fuel or mixed-
fuel operation retains all the OEM fuel system, engine calibration, and 
emission control system functionality when operating on the fuel with 
which the vehicle/engine was originally certified.''
    2. ``The test group/engine family converted to dual-fuel or mixed 
fuel operation retains all the functionality of the OEM OBD system (if 
so equipped) when operating on the fuel with which the vehicle/engine 
was originally certified.''
    3. ``The test group/engine family converted to dual-fuel or mixed-
fuel operation properly purges hydrocarbon

[[Page 19850]]

vapor from the evaporative emission canister when the vehicle/engine is 
operating on the alternative fuel.''
    EPA also proposed a statement of compliance that would have 
required the conversion manufacturer to attest that the test group/
engine family converted to an alternative fuel uses fueling systems, 
evaporative emission control systems, and engine powertrain components 
that are compatible with the alternative fuel and designed with the 
principles of good engineering judgment. This attestation is still 
relevant, and is explicitly required for an outside useful life 
notification. However, the statement has been adjusted for the new and 
intermediate age programs to tie this requirement to a description and 
statement of attestation for the durability program. See Section 
IV.C.4.
    This information must be submitted electronically in a format 
specified by the Administrator. If the test results meet both the 
intermediate and full useful life standards, after applying the 
deterioration factors (see Section IV.3.c.i), all supporting documents 
are included, and all compliance statements are attested, then the 
conversion manufacturer may submit the test data form to EPA.
    EPA will periodically update its list of conversion systems that 
are appropriate for installation on intermediate age vehicle/engine 
test groups/engine families and evaporative/refueling families. The 
exemption from the tampering prohibition may be void ab initio if the 
conversion manufacturer fails to meet all of the requirements for the 
program. This is the case even if a submission has been made and the 
conversion system has been publicly posted.
a. Previously Certified Clean Alternative Fuel Conversion Systems
    EPA will allow the tampering exemption conferred by certification 
to continue to apply to the test group/engine family as it reaches 
intermediate age and outside useful life status. The conversion 
manufacturer does not need to generate new data or reapply to the 
intermediate age or outside useful life programs to retain the 
exemption, as long as the conditions under which the certificate was 
issued remain unchanged. The exemption from tampering is valid only if 
the conversion is installed on the OEM test groups/engine families and/
or evaporative emissions/refueling families listed on the certificate. 
EPA will make publicly available the list of certified conversion 
systems which may be used on intermediate age and outside useful life 
vehicles and engines.
5. In-Use Compliance
    Clean alternative fuel conversion manufacturers are subject to in-
use requirements. Many of these are described in Section III above, 
including warranty, defect reporting and recall requirements, as well 
as EPA's authority to perform in-use testing.

C. Outside Useful Life Vehicle and Engine Clean Alternative Fuel 
Conversion Program

    As discussed in Section II, vehicle and engine emission standards 
established under the CAA apply not only at the time of production but 
also until the vehicle or engine reaches an age or usage threshold 
known as ``full useful life.'' EPA regulations defining useful life are 
described in section II.B. Once a vehicle or engine has exceeded the 
useful life threshold there is no longer a statutory or regulatory 
obligation to comply with the applicable standard. However, the 
prohibition against tampering in section 203(a)(3) still applies to 
vehicles and engines outside their useful life. Thus, EPA is finalizing 
a program that enables converters of outside useful life vehicles and 
engines to qualify for an exemption from the tampering prohibition.
    The absence of an applicable section 202 standard for vehicles and 
engines outside their useful life necessitates a different 
demonstration requirement than the demonstration of compliance with the 
applicable section 202 standard that we are finalizing for conversion 
of vehicles and engines still within their useful life. EPA considered 
and sought comment on several possible approaches to a demonstration 
that would help assure that outside useful life conversions are 
consistent with the CAA prohibition on tampering and do not cause 
environmental degradation. The approaches differed in the method by 
which manufacturers would demonstrate the emissions integrity of the 
conversion. EPA is adopting the approach described as ``Option 3'' in 
the proposal. This approach requires manufacturers to submit a 
technical description of the conversion that provides sufficient detail 
for EPA to evaluate emissions performance and durability. EPA may 
require that the technical description include emission test data if 
the description alone does not provide adequate assurance that the 
conversion system will not degrade emission control system performance 
or durability. Conversion manufacturers must also submit an OBD scan 
tool report. See Section IV.C.3 for a detailed explanation of the 
outside useful life demonstration requirement. A variation of this 
approach, described as ``Option 1'' in the proposal, would have 
required the technical description but not the OBD scan tool report. A 
different approach, Option 2 in the proposal, would have applied a 
testing requirement similar to the inside useful life demonstration 
requirement. Manufacturers would satisfy the Option 2 demonstration in 
one of two ways, either by submitting data to show that the converted 
configuration would meet inside useful life standards for the OEM 
vehicle/engine, or by submitting data to show that there was no 
deterioration in emissions before and after conversion.
    EPA received comments in support of all the outside useful life 
options presented in the proposal. However, the comments favoring 
Option 2 did not provide data or other substantive evidence sufficient 
for EPA to conclude that the additional cost and burden associated with 
testing outside useful life vehicles/engines would be justified 
relative to the environmental impact of these conversions. EPA believes 
that the good engineering judgment demonstration requirement, which 
could include testing, in combination with the OBD scan tool report, 
will provide a sufficient basis for assessing the technical viability 
and emission control system integrity of conversion systems intended 
for older vehicles/engines. This demonstration must include sufficient 
evidence to show that the conversion system will maintain or improve 
upon emissions of the unconverted vehicle/engine, and to explain why 
emissions will not increase as a result of the conversion. See the 
Response to Comments document for further discussion of this issue.
    The notification process for outside useful life vehicles/engines 
will be similar to the notification process for intermediate age 
conversion systems, as will the public listing of conversion systems 
that have satisfied EPA demonstration and notification requirements. 
Also, the exemption from the tampering prohibition may be void ab 
initio if the conversion manufacturer fails to meet all of the 
requirements for the program. This is the case even if a submission has 
been made and the conversion system has been publicly posted.
1. Applicability
    Vehicles and engines are eligible for the outside useful life 
program once they have exceeded their useful life. As vehicle and 
engine technologies have advanced and changed, so have the regulatory 
definitions for useful life.

[[Page 19851]]

Please refer to Section II.B for current useful life references.
    Manufacturers of conversion systems for outside useful life 
vehicles/engines may also qualify for exemption from the tampering 
prohibition through the intermediate age vehicle and engine compliance 
program. See Section IV.B.
    EPA sought comment on whether to establish a subcategory of outside 
useful life vehicles and engines that reach the applicable mileage 
threshold for outside useful life status before they reach the 
applicable age threshold in years (see Section II.B for discussion of 
useful life). EPA received several comments opposing this subcategory 
approach on technical grounds. EPA has no data or other information to 
suggest that a different outside useful life definition should be 
applied for clean alternative fuel conversions than for other vehicle/
engine emission standards. In addition, EPA believes that creating a 
separate subcategory of outside useful life vehicles may create 
unnecessary confusion and has therefore decided not to finalize a 
separate subcategory of outside useful life vehicles/engines.
2. Test Groups, Engine Families, and Evaporative/Refueling Families
    EPA is finalizing the same requirements and criteria for test 
groups/engine families and evaporative/refueling family designations as 
for intermediate age vehicles and engines. See Section IV.B.2.
3. Demonstration Requirements
    Manufacturers of conversion systems for outside useful life 
vehicles and engines may satisfy the demonstration requirement by 
submitting to EPA a detailed description of the conversion system. The 
submission must provide a level of technical detail sufficient for EPA 
to confirm the conversion system's ability to maintain or improve on 
emission levels in the intended vehicle or engine. The technical 
information should include, but is not limited to, a complete 
characterization of exhaust and evaporative emissions control 
strategies, and specifications related to OBD system functionality. EPA 
may audit the submission and may require the conversion manufacturer to 
supply additional information, including test data, to support the 
claim that the technology was developed using good engineering judgment 
and is being applied for purposes of conversion to a clean alternative 
fuel.
    EPA would expect an outside useful life demonstration to include 
information such as data from before and after conversion FTP testing, 
component or part specifications, technical descriptions or diagrams, 
and any other information necessary for EPA to evaluate the technical 
viability of the conversion system and the use of good engineering 
judgment in its design. Some examples of good engineering judgment are 
provided below. This list is not comprehensive. It is not intended to 
exclude other approaches to the demonstration or to imply that a 
demonstration involving these features will be satisfactory in all 
cases:
    Exhaust Control System: The original engine controller, sensors, 
actuators, catalysts and other emission control components are 
connected and functional, and actively monitored by the OBD system.
    Evaporative Control System: The alternative fuel system is leak 
free and uses materials compatible with the alternative fuel. Dual-fuel 
and mixed-fuel vehicles/engines retain the components and the 
functionality of the OEM evaporative emission control system. For dual-
fuel and mixed-fuel systems the evaporative emission control system 
purges the evaporative emission canister in a manner identical to the 
OEM designed purge system when the vehicle/engine is operating on the 
alternative fuel.
    Fuel Delivery System: The alternative fuel delivery system employs 
technology that is at least equivalent in sophistication to the OEM 
fuel delivery system. For example, conversions of vehicles/engines with 
multiple port injectors employ alternative fuel systems with multiple 
port injectors; engines with throttle injection use alternative fuel 
systems with throttle injection; OEM carbureted vehicles/engines are 
able to use alternative fuel systems with central air mixers. 
Conversions of OEM vehicles/engines with closed loop feedback fuel 
control systems are expected to have similar closed loop control 
systems to maintain stoichiometric air/fuel control. Acceptable fuel 
control may also be achieved by using a secondary electronic control 
unit which adjusts fuel injector pulse width based on existing sensor 
inputs and on the alternative fuel's properties. Good engineering 
design precludes the use of driver actuated controls for engine 
starting or fuel adjustment, other than for selecting the fuel type for 
a dual-fuel vehicle/engine. EPA received comment from some conversion 
manufacturers concerned that their approach, while not equivalent in 
sophistication to the OEM technology, would still be sufficiently 
robust to meet applicable standards and/or prevent emissions 
deterioration. Certain aspects of good engineering judgment described 
in the exhaust control system, evaporative control system, and fuel 
delivery control system sections may be approached differently than 
described above, but EPA expects that test data demonstrating 
compliance is required rather than optional in such cases.
    Durability: A discussion of the durability of the alternative fuel 
system is necessary to support a good engineering judgment 
determination. The conversion to a clean alternative fuel must not 
increase the deterioration rate of the exhaust or evaporative emission 
system components. Fueling system components whose material is known to 
prematurely deteriorate due to the alternative fuel's properties must 
be upgraded.
    OBD: Good engineering judgment dictates that vehicles/engines 
equipped with OBD systems produce no false MILs or diagnostic trouble 
codes during normal operation, nor may there be any modifications that 
prevent OBD readiness flags from being properly set while operating on 
the alternative fuel. The OBD system must properly detect and identify 
malfunctions in all monitored emission related powertrain systems or 
components, including any new monitoring capability necessary to 
identify potential emission problems associated with the alternative 
fuel.
    In addition to satisfying the good engineering judgment 
requirement, manufacturers of conversion systems for outside useful 
life vehicles/engines that were equipped with OBD systems in their OEM 
configuration must also submit a report containing OBD checks following 
conversion to the alternative fuel. This report must be based on the 
OBD information from the EDV/EDE that is selected to represent the 
outside useful life program test group or engine family. See Section 
IV.B.3.d for a further description of the OBD scan tool procedure and 
demonstration requirements.
    Additional OBD emission test data, such as from the OBD testing 
procedures described in Section IV.A.3.d, may be required if the OBD 
scan tool report is not sufficient to demonstrate proper OBD operation.
4. Notification Process
    Manufacturers of outside useful life conversion systems must use 
the same notification procedures to submit the required information as 
those for the intermediate age vehicle and engine compliance program 
(see Section IV.B). The notification submission must include 
documentation of the required demonstration as well as labeling

[[Page 19852]]

information and all appropriate attestation statements.\90\
---------------------------------------------------------------------------

    \90\ The attestation statements to be reviewed and signed for 
the outside useful life program are identical to the attestation 
statements required for the intermediate age vehicle and engine 
compliance program (See Section IV.B.4) with one addition. The 
outside useful life program requires that the conversion 
manufacturer attest to the following statement: ``The test group/
engine family converted to an alternative fuel uses fueling systems, 
evaporative emission control systems, and engine powertrain 
components that are compatible with the alternative fuel and 
designed with the principles of good engineering judgment.''
---------------------------------------------------------------------------

    EPA will periodically update its list of conversion systems that 
are appropriate for installation on outside useful life vehicle/engine 
test groups/engine families and evaporative/refueling families. The 
exemption from the tampering prohibition may be void ab initio if the 
conversion manufacturer fails to meet all of the requirements for the 
program. This is the case even if a submission has been made and the 
conversion system has been publicly posted.
5. In-Use Compliance
    EPA may test vehicles and engines that have been converted under 
the outside useful life program to assess their performance in actual 
customer use. EPA may test such vehicles in their original and 
converted configurations, and revoke the tampering exemption for 
conversion systems that fail to demonstrate acceptable emissions 
performance.

V. Technical Amendments

    EPA is finalizing several technical amendments to 40 CFR part 86, 
subpart S. Several of the amendments are applicable to the exhaust and 
evaporative emission testing requirements for vehicles using gaseous 
alternative fuels. The purpose of these amendments is to allow 
flexibility in determining compliance with EPA non-methane organic 
material (NMOG) standards for vehicles, and also to allow statements of 
compliance in lieu of test data for meeting exhaust emission standards 
for formaldehyde (HCHO), and evaporative emissions. For purposes of 
this regulation, compressed natural gas (CNG) or liquefied natural gas 
(LNG), liquefied petroleum gas (LPG), or hydrogen fuels are eligible 
for the technical amendments described below.
    Other technical amendments provide clarity and consistency to 
regulatory references for clean alternative fuel conversion and 
technical corrections and clarifications for the light-duty greenhouse 
gas clean alternative fuel conversion procedures.

A. Exhaust Emission Technical Amendments

1. NMHC Multiplicative Adjustment Factor
    Prior to this rulemaking, 40 CFR 86.1810-01(p) allowed 
manufacturers of gasoline- and diesel-fueled vehicles to use a 
multiplicative adjustment factor to convert non-methane hydrocarbon 
(NMHC) exhaust emissions to an equivalent NMOG result to demonstrate 
compliance with NMOG standards. EPA is expanding the provision in 40 
CFR 86.1810-01(p) to also allow manufacturers of CNG, LNG, LPG, and 
hydrogen-fueled vehicles to demonstrate compliance through use of a 
multiplicative adjustment factor. Manufacturers may optionally 
determine compliance with NMOG standards by measuring NMHC and then 
applying a manufacturer-provided multiplicative adjustment factor to 
convert the NMHC results to an equivalent NMOG value. The 
multiplicative adjustment factors must be based on fuel specific data 
and must be approved in advance by EPA.
2. HCHO Compliance Statement
    Prior to this rulemaking, 40 CFR 86.1829-01(b)(1)(iii)(E) and (F) 
allowed vehicle manufacturers to submit a statement of compliance in 
lieu of submitting HCHO test data to demonstrate compliance with HCHO 
exhaust standards for vehicles tested with gasoline or diesel. EPA is 
finalizing the same flexibility for vehicles operating on CNG, LNG, 
LPG, or hydrogen.

B. Evaporative Emissions Technical Amendments

1. Evaporative Emissions, Running Loss, Refueling Loss Compliance 
Statement
    EPA is finalizing a technical amendment to 40 CFR 86.1829-
01(b)(2)(i) to allow waiver of evaporative emissions reporting 
requirements, including running loss and refueling loss, and to allow 
compliance with the requirements in 40 CFR 86.1811-04(e) for CNG, LNG, 
LPG, or hydrogen fuels by making a compliance statement in the 
application for certification. 40 CFR 86.1829-01(b)(2)(i) previously 
allowed a compliance statement for CNG-, LNG,- or LPG-fueled vehicles 
in lieu of submitting data to demonstrate compliance with evaporative 
emission standards in 40 CFR 86.1811-04(e). This amendment simply 
clarifies that manufacturers using hydrogen fuels, for example blends 
of hydrogen and methane, may use an evaporative emissions statement of 
compliance. Compliance statements do not alleviate the OEM or 
aftermarket fuel converter from complying with evaporative emissions, 
running loss and refueling standards in 86.1811-04(e). Compliance 
statements are expected to be supported by development testing data or 
other engineering data.
    The rationale for allowing compliance statements in lieu of test 
data for evaporative emissions, running loss, and refueling emissions 
requirements is based on the expectation that fueling systems for 
gaseous-fueled vehicles will have a closed-system design with zero 
evaporative emissions. For LPG-fueled vehicles, a refueling statement 
of compliance is only allowed for systems in which the LPG fuel tank 
has no open vent (sometimes referred to as an ``outage'' valve) during 
the refueling operation.
    The flexibilities described above for evaporative emissions are 
consistent with the original subpart F rulemaking.\91\ Adding these 
technical amendments to section 86.1829-01(b)(2)(i) will provide 
clarity to EPA regulations for OEM manufacturers and clean alternative 
fuel conversion manufacturers desiring to certify vehicles on gaseous 
fuels.
---------------------------------------------------------------------------

    \91\ 59 FR 48472 (September 21, 1994).
---------------------------------------------------------------------------

C. Additional Technical Amendments

    There are several regulatory terms and references in 40 CFR part 86 
that link to the previous subpart F regulations. These are being 
updated to the appropriate terms and references for the new subpart F 
regulations. In addition, this rule is clarifying other 40 CFR part 86 
statements referencing clean alternative fuel conversion to ensure that 
the references are consistent with the clean alternative fuel 
conversion program.
    Specifically, EPA is removing and revising language found in 40 CFR 
86.1818-12, 40 CFR 86.1864-10 and 86.1865-12 that could be read to 
imply that clean alternative fuel conversions are subject to OEM fleet 
average standards. These provisions are being revised to eliminate 
potential confusion about applicability of fleet average standards to 
conversions. Fleet average standards are not generally appropriate for 
clean alternative fuel conversion manufacturers because the ``fleet'' 
of vehicles/engines to which a conversion system may be applied has 
already been accounted for under the OEM's fleet average standard. The 
OEM fleet average is derived from the production- or sales-weighted 
average of individual test group/engine family certification levels

[[Page 19853]]

in a given model year. Under the clean alternative fuel conversion 
program, conversion manufacturers will comply with the certification 
standard applicable to OEM vehicles or engines, if the vehicle/engine 
is within its useful life, or will demonstrate that emissions are not 
degraded after conversion, if the converted vehicle/engine is outside 
useful life. Accordingly, clean alternative fuel conversions will be 
consistent with the applicable OEM standard and will not affect the OEM 
fleet average standard. Therefore it is not necessary to require 
compliance with an additional clean alternative fuel conversion fleet 
average standard.

D. Light-Duty Vehicle Greenhouse Gas Compliance for Clean Alternative 
Fuel Conversion

    EPA's greenhouse gas regulations require that all alternative fuel 
conversion manufacturers comply with greenhouse gas standards for 
light-duty vehicles and light-duty trucks beginning in model year 2012 
(unless exempted under the provisions of 40 CFR 86.1801-12).\92\ EPA is 
clarifying how alternative fuel conversion manufacturers demonstrate 
compliance with the applicable greenhouse gas emission standards.
---------------------------------------------------------------------------

    \92\ See preamble discussion at 75 FR 25484 (May 7, 2010) and 
regulations at 40 CFR 86.1801-12(b).
---------------------------------------------------------------------------

    OEMs are subject to two types of light-duty greenhouse gas 
standards: a fleet-average standard and an in-use standard for the full 
useful life of the vehicle.\93\ The light-duty greenhouse gas 
regulations require that test groups remain the OEM basis for 
certification, however carbon-related exhaust emissions (CREE) are 
reported to EPA by OEMs at the model type and subconfiguration levels 
(smaller units than test groups), and production-weighting of those 
values determines compliance with the fleet average standard. 
Consistent with current EPA policy under the Tier 2 program, the 
conversion manufacturer is not subject to the fleet average standard, 
but each converted vehicle must meet the vehicle-specific standards 
that the original OEM vehicle was certified to meet. This ensures that 
the in-use fleet of vehicles will sustain the OEM fleet average levels, 
or even improve upon overall fleet emission levels.
---------------------------------------------------------------------------

    \93\ 75 FR 25472 (May 7, 2010).
---------------------------------------------------------------------------

    To demonstrate clean alternative fuel conversion compliance with 
light-duty greenhouse gas standards, EPA considered asking the 
conversion manufacturers to submit test data for every subconfiguration 
within a test group to demonstrate that the fuel converted vehicle 
meets the applicable greenhouse gas emission standards. However, 
testing at this granularity (as is currently done for fuel economy 
labeling and the CAFE program) would be especially burdensome for an 
industry that is not subject to fuel economy labeling and to which the 
CAFE program does not apply. Instead, EPA believes it is reasonable to 
require emissions data on the typical light-duty vehicle compliance 
basis, the test group. However, any subconfiguration within the test 
group--if selected for testing by EPA--must meet the applicable 
N2O, CH4, and CO2 subconfiguration 
standards that apply to the OEM vehicles as set forth in 40 CFR 
86.1818-12(d) and 40 CFR 86.1818-12(f).\94\ The CREE standard contains 
a 10% adjustment factor applied to the initial OEM test results to 
account for test-to-test variability and OEM production margin.\95\
---------------------------------------------------------------------------

    \94\ 75 FR 25474 (May 7, 2010). If the OEM complied using the 
light-duty greenhouse gas fleet averaging option for nitrous oxide 
(N2O) and methane (CH4), as allowed under 40 
CFR 86.1818-12(f)(2), the calculations of the carbon-related exhaust 
emissions require the input of grams/mile values for N2O 
and CH4.
    \95\ 75 FR 25473 (May 7, 2010).
---------------------------------------------------------------------------

    The clean alternative conversion manufacturer must submit CREE, 
N2O and CH4 data from the same EDV that is used 
to support criteria pollutant testing and standards, and the results 
must demonstrate that the converted vehicle meets the OEM 
N2O and CH4 standards set forth in 40 CFR 
86.1818-12(f) and the OEM subconfiguration CO2 standard set 
forth in 40 CFR 86.1818-12(d) \96\ for the OEM subconfiguration that 
matches the conversion EDV. In addition, EPA may test or request the 
conversion manufacturer to test other sub-configurations within the 
conversion test group, and those results must also demonstrate 
compliance with the appropriate sub-configuration standard in 40 CFR 
86.1818-12(d).
---------------------------------------------------------------------------

    \96\ See footnote 94.
---------------------------------------------------------------------------

    40 CFR 86.1818-12(f)(2) sets forth an alternative to meeting the 
N2O and CH4 exhaust emission standards in 40 CFR 
86.1818-12(f)(1). However, 40 CFR 86.1818-12(f)(2) is not available to 
fuel conversion manufacturers, since there is no greenhouse gas fleet 
average standard for fuel converted vehicles. Therefore, EPA is adding 
a third option, specific to fuel conversion manufacturers, that allows 
the same process set forth in 40 CFR 86.1818-12(f)(2) but is adapted 
for the unique situation of clean alternative fuel conversion 
manufacturers. This alternative requires that the fuel conversion 
manufacturer determine a CREE value (including N2O and 
CH4) specific to the fuel conversion EDV, even if the OEM 
did not use N2O and CH4 in the CREE calculation. 
This value must meet the sub-configuration-specific in-use 
CO2 exhaust emission standard, set forth in 40 CFR 86.1818-
12(d) and determined by the OEM.

VI. Environmental Effects

    As in the original subpart F rulemaking,\97\ the primary purpose of 
this revised rulemaking is to maintain emissions performance and air 
quality while removing a potential barrier to the commercial production 
of clean alternative fuel conversion systems. The Agency has not 
attempted to quantify the environmental effects of this regulation 
because the goal of this rulemaking is to preserve environmental 
benefits from existing EPA vehicle and engine standards by creating a 
clear, legal pathway for clean alternative fuel conversion while 
maintaining existing emissions control levels. Therefore the Agency's 
best assessment of environmental impacts due to this rulemaking is that 
the environmental effects are at worst, neutral.
---------------------------------------------------------------------------

    \97\ 59 FR 48472 (September 21, 1994).
---------------------------------------------------------------------------

VII. Associated Costs for Light-Duty and Heavy-Duty Chassis Certified 
Vehicles

    The cost associated with achieving a regulatory exemption from 
tampering for clean alternative fuel conversions under this amended 
regulation is expected to be less than the previous cost of compliance. 
The amount of cost reduction will vary based on conversion technology, 
fuel type, vehicle age, applicability, conversion manufacturer 
preference, and the conversion manufacturer's annual sales volume. The 
baseline cost estimates are summarized in Section VII.A below and are 
based on the regulatory program in place before this amended 
regulation. Additionally, there are two vehicle-age dependent cost 
estimates summarized in Section VII.B and VII.C for certified 
conversions (VII.B) and intermediate age vehicle conversions (VII.C).
    The baseline and projected costs will also depend on the original 
vehicle fuel and on the specific fuel to which the vehicle is being 
converted. This cost analysis is intended to apply to conversions to 
any fuel. Some test procedures are not required for either dedicated 
CNG or LPG or dual-fuel gasoline/CNG or dual-fuel gasoline/LPG. Since 
more than 98% of the alternative fuel conversion certificates issued by 
EPA in recent years were for these types of conversions, EPA conversion 
requirements or testing exemptions

[[Page 19854]]

which are specific to CNG and LPG are noted in a separate section. 
However, any description in this section which is not specified as 
applying to CNG or LPG specifically should be assumed to apply to all 
conversion fuels.
    The baseline and projected costs also depend upon the conversion 
manufacturer's annual sales volume. Since almost all current conversion 
manufacturers have sales volumes low enough to be eligible to use Small 
Volume Manufacturer certification procedures, this cost analysis only 
describes baseline and projected costs for small volume conversion 
manufacturers.\98\ If sales volumes were to increase such that 
manufacturer(s) surpassed small volume thresholds, EPA expects costs 
for large volume manufacturer fuel conversion compliance to remain 
unchanged or to decrease from the baseline costs for large volume 
manufacturer fuel conversion compliance.
---------------------------------------------------------------------------

    \98\ 40 CFR 86.1838-01.
---------------------------------------------------------------------------

    This cost estimate does not consider expenses converters may incur 
to develop and design their conversion system. Typical product 
development costs include research, expert consultation, preliminary or 
shakedown testing, and other expenses associated with perfecting system 
functionality. Rather, this analysis estimates the expected cost of 
satisfying the EPA testing and/or demonstration requirement. The 
estimate includes the cost of creating a certification application, 
submitting test data to EPA, confirmatory testing, and certification 
fees. Costs associated with confirmatory testing requirements include 
preparing a vehicle and shipping it to the EPA laboratory for testing. 
All hourly wage data for conversion manufacturer labor is based on the 
Bureau of Labor and Statistics.
    All conversion manufacturers reported that a senior manager is 
conducting testing oversight and application preparation, so this 
estimate applies the same labor rate for conversion manufacturer labor 
across tasks. Engineering managers are reported to earn an average of 
$57.97 per hour according to a May 2008 report by the Bureau of Labor 
and Statistics.\99\ EPA has applied a suggested 100% labor overhead 
cost to all conversion manufacturer labor costs. In addition, EPA 
typically applies a 6.5% general and administrative overhead cost to 
all costs. Technology research and development costs were not 
considered in this analysis because these costs are not expected to 
change as a result of this rulemaking.
---------------------------------------------------------------------------

    \99\ For electronic access to the Bureau of Labor and Statistics 
Data, see http://www.bls.gov/oes/2008/may/oes_nat.htm#b11-;0000.
---------------------------------------------------------------------------

    Conversion manufacturers generally try to apply one set of test 
data to as many vehicle makes and models as EPA will allow to minimize 
testing costs. Because costs can be scaled when certifying multiple 
test groups and/or multiple evaporative/refueling families, and 
conversion manufacturers each have different testing and compliance 
strategies and different target market plans, this analysis will derive 
the baseline costs for converting vehicles based on the assumption that 
costs can be scaled when certifying multiple test groups and/or 
multiple evaporative/refueling families. The scaling factors were 
determined by the following applicable ratios: (1) Number of OEM 
exhaust test groups to number of OEM certificates and (2) number of OEM 
evaporative/refueling families to number of OEM certificates. This 
allowed EPA to create a scaled unit cost for each certificate which 
adequately represents that manufacturers apply test data to multiple 
certificates. To create a real-world example, and allow a clear 
comparison of baseline versus projected costs of the revised programs, 
this cost analysis ultimately compares the cost of fuel conversion for 
four OEM certificates after applying all appropriately scaled unit 
costs. This same logic was then used to derive the approximate cost of 
compliance for the vehicle fuel conversion of four OEM certificates 
under the amended regulations, as described previously in this 
preamble.

A. Baseline Costs

    Baseline costs are derived by first determining the cost of one 
certificate without any scaled costs. These costs would be applicable 
if a conversion manufacturer chose to convert vehicles represented by 
only one OEM certificate. This is rarely done in practice because 
conversion manufacturers choose to take advantage of using one set of 
test data to apply to multiple certificates.
    Next the baseline cost of one certificate is calculated assuming 
the conversion manufacturer chooses to take advantage of the 
application of data to multiple certificates. Average scaled costs are 
calculated on a unit basis of one certificate with scaled costs.
    Lastly, EPA calculated the baseline cost of converting vehicles 
represented by four OEM certificates. This is done to create a real-
world example which allows a clear comparison for the cost reductions 
created under the revised regulatory program.
1. Costs of One Certificate Without Scaling Costs
    During development of this regulation, EPA contacted several 
aftermarket conversion manufacturers and an independent test laboratory 
to estimate the aftermarket fuel conversion certification costs under 
40 CFR part 85, subpart F. The basic certification testing requirements 
included: (a) Demonstration of compliance with exhaust emissions on a 
test group basis: One FTP75 test and CO, NOX, and NMHC 
analysis; HCHO and NMOG speciation; one HFET NOX test; (b) 
Demonstration of compliance with evaporative/refueling emissions on an 
evaporative/refueling family basis: Hot soak, canister purge and 2 or 3 
day evaporative emissions tests; and (c) Compliance with the Federal 
OBDII demonstration tests which is generally done at the Federal level 
on the same basis as the exhaust test group. Lodging, labor and general 
and administrative costs are appropriated to each requirement category 
in order to provide a clear examination of costs under the new 
programs.
a. Costs Associated With Exhaust Emission Testing (Test Group Basis)
    All estimated independent test laboratory costs associated with 
exhaust emissions testing are listed in Table VII.A-1 and Table VII.A-2 
below.

  Table VII.A-1--Exhaust Emissions Testing Costs Typically Incurred at
                       Independent Test Laboratory
------------------------------------------------------------------------
                                                         Average costs
------------------------------------------------------------------------
Coast Down Coefficient Determination.................            $360.00
One FTP75 Test and CO, NOX, NMHC Analysis............           1,116.67
(NMOG Speciation)--Aldehydes and Ketones.............           1,500.00
(NMOG Speciation)--Alcohols..........................             250.00

[[Page 19855]]

 
One HFET NOX Test....................................             430.00
Exhaust Independent Test Lab Billable Labor Costs....             702.50
                                                      ------------------
    Total Exhaust Independent Test Lab Costs.........           4,359.17
------------------------------------------------------------------------

 Table VII.A-2--Total Estimated Exhaust Emissions Testing Costs for Fuel
         Conversion of One OEM Certificate (No Scaling Applied)
------------------------------------------------------------------------
                                                       Testing costs for
                                                        one aftermarket
                                                        fuel conversion
                                                        certificate (no
                                                          scaling for
                                                            multiple
                                                          certificates
                                                            applied)
------------------------------------------------------------------------
Total exhaust independent test lab costs.............          $4,359.17
Total exhaust testing oversight labor costs                      1236.69
 (including 100% labor overhead).....................
Lodging..............................................             280.00
                                                      ------------------
    Subtotal.........................................           5,875.86
6.5% G & A...........................................             381.93
                                                      ------------------
    Total Cost for Exhaust Tests.....................           6,257.79
------------------------------------------------------------------------

b. Costs Associated With Evaporative/Refueling Emission Testing 
(Evaporative/Refueling Family Basis)

 Table VII.A-3--Total Estimated Evaporative Emissions Testing Costs for
       Fuel Conversion of One OEM Certificate (No Scaling Applied)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total evap independent test lab costs................          $5,980.00
Total evap testing oversight labor costs (including    .................
 100% labor overhead)................................
Lodging..............................................  .................
                                                      ------------------
    Subtotal.........................................           5,980.00
6.5% G & A...........................................             388.70
                                                      ------------------
    Total Cost for Evap Tests........................           6,368.70
------------------------------------------------------------------------

c. Costs Associated With OBDII Demonstration Testing (Test Group Basis)

 Table VII.A-4--Total Estimated OBD Demonstration Testing Costs for Fuel
         Conversion of One OEM Certificate (No Scaling Applied)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total OBD independent test lab costs.................         $16,325.00
Total OBD testing oversight labor costs (including              7,265.57
 100% labor overhead)................................
Lodging..............................................           1,120.00
                                                      ------------------
    Subtotal.........................................          24,710.57
6.5% G & A...........................................           1,606.19
                                                      ------------------
    Total Cost for OBD Demo Tests....................          26,316.76
------------------------------------------------------------------------

d. Other Certification Costs

 Table VII.A-5--Other Certification Estimated Costs for Fuel Conversion
               of One OEM Certificate (No Scaling Applied)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Travel to oversee testing at independent test lab....          $1,000.00
Shipment of vehicle to independent test lab..........           4,000.00

[[Page 19856]]

 
Prep and shipment of vehicle to EPA for confirmatory            6,200.00
 tests...............................................
Preparation of Application for certification labor              4,637.60
 costs (including 100% labor overhead)...............
                                                      ------------------
    Subtotal.........................................          15,837.60
6.5% G & A...........................................           1,029.44
                                                      ------------------
    Total Costs for Travel, Vehicle Shipments, and             16,867.04
     Application Preparation.........................
------------------------------------------------------------------------

    e. Certification Fees
    The certification fee for a light-duty vehicle certificate issued 
in 2010 was $34,849.\100\ However, there is a reduced fee program which 
allows most conversion manufacturers to pay far less. The reduced fee 
is calculated based on sales volume and value added.\101\ The formula 
can be described as 1% * number of units * retail value added. Because 
most conversion manufacturers sell less than 50 vehicle conversions per 
test group and conversion kits vary greatly in price, for purposes of 
this estimate, EPA is using 50 units and a retail value of $8,000. 
Therefore, for this cost estimate the baseline certification fees are 
estimated at $4,000.
---------------------------------------------------------------------------

    \100\ For an electronic version of the current fee filing form, 
see http://www.epa.gov/otaq/cert/documents/on-hwy2010feeform-01-07-10.pdf.
    \101\ 40 CFR 1027.120.
---------------------------------------------------------------------------

    The baseline cost of compliance for one certificate, including all 
testing, associated labor, overhead, and general and administrative 
costs if costs are not scaled due to test group, OBD, or evaporative/
refueling family combinations is about $59,810
2. Cost of One Certificate When Testing Costs Are Scaled for Multiple 
Certificate Groups
    OEM test groups, evaporative/refueling families, and Federal OBD 
approvals are combined to form a unique certificate. These same test 
groups and evaporative/refueling families, when taken separately, can 
often apply to multiple certificates. Here, EPA examined 418 model year 
2007 light-duty certificates to determine appropriate scaling factors 
for exhaust test groups, evaporative/refueling families, and OBD 
demonstrations tests. EPA reviewed model year 2007 data because these 
data were complete, readily available, and deemed to be representative. 
Of the 418 certificates, there were 335 unique test groups each with 
exhaust emission data, meaning the OEMs used 335 sets of exhaust test 
data to apply for 418 certificates. The ratio represented here (335/418 
= 0.8) provides an approximate scaling factor which can be applied to 
the cost of one set of exhaust emissions data to determine the average 
unit cost per certificate for exhaust emission testing. Of those same 
418 certificates, there were only 189 evaporative/refueling families, 
therefore the average scaling factor for evaporative/refueling family 
testing costs (189/418 = 0.45) times the cost for one set of 
evaporative emissions testing represents the average unit cost per 
certificate for evaporative/refueling emissions testing. For the 
purposes of this cost estimate we assumed that all Federal OBD 
approvals for conversion manufacturers were done in parallel with 
exhaust test group testing and therefore applied the same scaling 
factor to OBD testing costs as determined for exhaust emissions 
testing.

      Table VII.A-6--Cost of One Certificate When Testing Costs Are Scaled for Multiple Certificate Groups
----------------------------------------------------------------------------------------------------------------
                                             Testing costs for
                                              one aftermarket
                                              fuel conversion                                   Scaled testing
                                             certificate  (no                                      costs for
                                                scaling for            Scaling factor          conversion of one
                                                 multiple                                       OEM certificate
                                               certificates
                                                 applied)
----------------------------------------------------------------------------------------------------------------
Total Cost for Exhaust Tests..............           $6,257.79  0.80........................           $5,015.22
Total Cost for Evap Tests.................            6,368.70  0.45........................            2,879.63
Total Cost for OBD Demo Tests.............           26,316.76  0.80........................           21,091.18
Total Costs for Travel, Vehicle Shipments,           16,867.04  Weighted appropriately to              11,385.68
 and Application Preparation.                                    each task.
Certification Fees........................            4,000.00  1...........................            4,000.00
                                           ---------------------------------------------------------------------
    Total Cost for OEM Test Group of                 59,810.30  ............................           44,371.70
     Vehicles.
----------------------------------------------------------------------------------------------------------------

    Thus, the baseline cost of compliance for one certificate, 
including all testing, associated labor, and overhead and general and 
administrative costs if costs are scaled is about $44,372.
3. Baseline Cost Analysis Based on Four OEM Certificates
    EPA estimated the baseline cost of conversion of four certificate 
groups of vehicles after applying appropriately scaled testing costs, 
including all testing, confirmatory testing, associated labor, 
overhead, and general and administrative costs to be about $177,487.

B. Certified Conversion Costs Under the Revised Regulation

    Under this revised regulation the projected cost for a certified 
conversion will be similar to the previously applicable fuel conversion 
certification process, with three exceptions: (1) A statement of 
compliance using good engineering judgment will be accepted in lieu of 
HCHO testing analysis for

[[Page 19857]]

certain alternative fuels, and the use of conversion factors to 
calculate NMOG from NMHC will be accepted in lieu of speciation testing 
for some alternative fuels; (2) statements of compliance are accepted 
for sealed gaseous fuel systems in lieu of evaporative emissions test 
data; and (3) test group combinations will allow one set of test data 
to apply to a broader range of vehicles. These changes all reduce costs 
associated with compliance testing.
1. HCHO and NMOG Cost Reductions for CNG (or LNG), LPG, and Hydrogen
    In lieu of testing, EPA will accept a statement of compliance for 
HCHO emissions for conversions to CNG (or LNG), LPG, or hydrogen fuels. 
In addition, conversions to CNG (or LNG), LPG, or hydrogen need only 
submit engineering data and analysis supportive of the usage of a 
conversion factor from NMHC to NMOG, in lieu of speciation testing. 
Testing for HCHO is generally done in conjunction with NMOG speciation, 
and the average cost for both tests is $1,750 per test group, which 
would be scaled to an average of $1,400 per certificate. Under this 
revised regulation, testing cost for HCHO and NMOG analysis for 
conversions to CNG (or LNG), LPG, or hydrogen would be $0.
2. Evaporative Emissions Cost Reductions for Gaseous Fuels
    The average cost for evaporative emissions hot soak, and diurnal 
SHED testing, including labor costs is $6,369. After scaling the 
average is $2,879 per certificate. The revisions to 40 CFR 86.1811-04 
allow a manufacturer statement of compliance for evaporative testing 
for gaseous fuels. This eliminates all evaporative emissions testing 
costs for gaseous fuels such as CNG (or LNG), LPG, or hydrogen fuels.
3. Test Group Combination Cost Reductions for All Conversions to Clean 
Alternative Fuel
    This revised regulation defines criteria which may allow the 
combination of several OEM test groups into a single clean alternative 
fuel conversion test group. Cost savings associated with combining test 
groups will be significant, depending upon the exact number of OEM test 
groups combined. For example: If two OEM test groups are combined, the 
testing costs for exhaust emission testing are halved; if three test 
groups are combined, these testing costs are about one-third.
    The quantity of OEM test groups which can be combined into a single 
clean alternative fuel conversion test group will vary depending on the 
available OEM vehicle individual certification compliance strategies. 
EPA examined the 2007 light-duty OEM test group data and has 
conservatively estimated that on average conversion manufacturers will 
be permitted to combine about 25% of the OEM exhaust test groups. 
Therefore, the cost reduction estimate for our comparative grouping, 
four test groups, would conservatively result in a 25% cost reduction 
in exhaust emissions and OBD testing which can be applied to the 
scaling factors for comparison simplicity.
4. Total Cost Reductions for Certification Under the Amended Regulation

 Table VII.B-1--Estimated Cost for New Vehicle Conversion for One Certificate When Testing Costs Are Scaled for
                                           Multiple Certificate Groups
----------------------------------------------------------------------------------------------------------------
                                Testing costs for one
                                   aftermarket fuel                         Scaled testing      Scaled testing
                                conversion certificate                         costs for           costs for
                                   (no scaling for       Scaling factor    conversion of one  conversion of four
                                multiple certificates                       OEM certificate    OEM certificates
                                       applied)
----------------------------------------------------------------------------------------------------------------
Total Cost for Exhaust Tests.                $6,257.79  0.60............           $3,761.41          $15,045.65
Total Cost for Evap Tests....                 6,368.70  0.45............            2,879.63           11,518.51
Total Cost for OBD Demo Tests                26,316.76  0.60............           15,790.06           63,160.23
Total Costs for Travel,                      16,867.04  Weighted                   10,313.03           41,252.14
 Vehicle Shipments, and                                  appropriately
 Application Preparation.                                to each task.
Certification Fees...........                 4,000.00  1...............            4,000.00           16,000.00
                              ----------------------------------------------------------------------------------
    Total Cost for OEM Test                  59,810.30  ................           36,744.13          146,976.52
     Group(s) of Vehicles.
----------------------------------------------------------------------------------------------------------------

    The total cost for the certification of the conversion of four OEM 
certificates to any clean alternative fuel under the final rule is 
$146,977. This represents an estimated cost reduction of more than 
$30,000 compared to previous fuel conversion certification testing 
costs for conversion of four OEM certificates. If the conversion 
certification is for conversions to CNG (or LNG), LPG, or hydrogen 
fuels, the costs may be further reduced due to the technical amendments 
described above.

C. Intermediate Age Vehicle Compliance Costs

    The previous fuel conversion compliance process required 
certification. Therefore the baseline costs presented in Section VI.A 
also apply to intermediate age vehicles.
1. HCHO and NMOG Cost Reductions for CNG, LPG, and Hydrogen
    In lieu of testing, this revised regulation permits a statement of 
compliance for HCHO emissions for conversions to CNG (or LNG), LPG and 
hydrogen. In addition, conversions to CNG (or LNG), LPG, or hydrogen 
need only submit engineering data and analysis supportive of the usage 
of a conversion factor from NMHC to NMOG, in lieu of speciation 
testing. Testing for HCHO is generally done in conjunction with NMOG 
speciation, and the average cost for both tests is $1,750 per test 
group, which would be scaled to an average of $1,400 per certificate. 
Under this new rule, testing cost for HCHO and NMOG analysis for 
conversions to CNG (or LNG), and LPG is $0.
2. Evaporative Emissions Cost Reductions for Gaseous Fuels
    The average cost for evaporative emissions hot soak, and diurnal 
SHED testing, including labor costs is $6,369. After scaling the 
average is $2,879 per certificate. The amendment to 40 CFR 86.1811-04 
allows a manufacturer statement of compliance for evaporative testing 
for gaseous fuels. This will eliminate evaporative emissions compliance 
testing costs for gaseous fuels.

[[Page 19858]]

3. Conversion Test Groups Cost Reduction
    Under this revised regulation, intermediate age conversion test 
groups share the same grouping criteria as the conversion test groups 
for new vehicles, except the intermediate age conversion test groups do 
not require the same OEM OBD grouping. This provision is likely to 
result in a further reduction in testing costs due to further scaling. 
However, the scaling appropriate due to these combinations is variable 
from year to year and from OEM manufacturer to OEM manufacturer. 
Therefore, for the purposes of this cost estimate, we will assume that 
the exhaust conversion test group costs for intermediate age vehicles 
are the same as the test group costs for certification of new vehicles 
under this regulation.
4. OBD Demonstration Testing Cost Reduction
    The OBD demonstration requirement for intermediate age vehicles is 
different than the new vehicle OBD demonstration requirement. 
Intermediate age conversions do not necessarily require the OBD 
demonstration tests that are required for certification. Instead the 
intermediate age conversion manufacturer must attest that the OBD 
system works properly and submit an OBD scan tool report. The 
conversion manufacturer must still conduct any development and bear 
associated costs necessary to ensure that the post-conversion OBD 
system remains functional and meets the EPA standards, but the costs 
associated with conducting certification OBD demonstration testing for 
data submission to EPA may not be required for the intermediate age 
vehicle program. Since a scan tool is a one-time cost of around $300-
$400 and we estimate labor at less than two hours, EPA estimated the 
scan tool testing costs at about $287 per scan tool test.\102\ The 
intermediate age cost reduction from the OBD certification 
demonstration testing cost baseline could result in a cost savings up 
to $26,000 per conversion test group.
---------------------------------------------------------------------------

    \102\ Because this analysis assumes that capital and development 
costs are unchanged by this rulemaking, we have chosen to amortize 
the cost of a scan tool over 10 conversion test groups, attributing 
$40 per required data submission. In addition, two hours labor cost 
at $57.97 per hour + two hours overhead + 6.5%.general and 
administrative are also attributed to this test. This results in a 
total of about $287 per OBD scan tool test.
---------------------------------------------------------------------------

5. Total Cost Reductions for Intermediate Age Vehicles Under the 
Revised Regulation

Table VII.C-1--Revised Regulation Cost for Intermediate Age Vehicle Conversion When Testing Costs Are Scaled for
                                         Multiple Conversion Test Groups
----------------------------------------------------------------------------------------------------------------
                                Testing costs for one
                                   aftermarket fuel                         Scaled testing      Scaled testing
                                conversion compliance                          costs for           costs for
                                unit  (no scaling for    Scaling factor    conversion of one  conversion of four
                                     multiple OEM                           OEM certificate    OEM certificates
                                certificates  applied)
----------------------------------------------------------------------------------------------------------------
Total Cost for Exhaust Tests.                $6,257.79  0.60............           $3,761.41          $15,045.65
Total Cost for Evap Tests....                 6,368.70  0.45............            2,879.63           11,518.51
Total Cost for OBD Scan Tool                    286.95  0.60............              172.17              688.69
 Demo Tests.
Total Costs for Travel,                      12,915.81  Weighted                    6,361.80           25,447.20
 Vehicle Shipments, and Data                             appropriately
 Submission.                                             to each task.
                              ----------------------------------------------------------------------------------
    Total Cost for per                       25,829.25  ................           13,175.01           52,700.04
     Conversion of OEM Test
     Group(s) of Vehicles.
----------------------------------------------------------------------------------------------------------------

    The total cost for the intermediate age compliance program for the 
conversion of vehicles represented by four OEM certificates to any 
clean alternative fuel under the amended rule is estimated to be 
$52,700. This represents an estimated cost reduction of more than 
$100,000 from the baseline cost of compliance for conversion of 
vehicles represented by four OEM certificates. If the conversion 
certification is for conversions to CNG, LPG or hydrogen, the costs may 
be further reduced due to the NMHC/NMOG technical amendment described 
under Section V.1.B.

D. Outside Useful Life Vehicle Compliance Costs

    EPA examined the potential costs for the three outside useful life 
demonstration options \103\ presented in the proposal for comment. We 
estimated that the cost for the outside useful life program could vary 
significantly based on the finalized option and the technology employed 
by the converter. As described above for the new and intermediate age 
categories, the costs converters might incur for technology research 
and development are not considered in the cost analysis because they 
are not expected to change as a result of this rulemaking.
---------------------------------------------------------------------------

    \103\ 75 FR 29624 (May 26, 2010).
---------------------------------------------------------------------------

    The first outside useful life demonstration option in the proposal 
(``Option 1'') would have required converters to submit sufficient 
information about the conversion technology for EPA to determine that 
emissions would not increase. For purposes of this cost estimate, we 
assumed that testing, as is required for the intermediate age program, 
would sufficiently satisfy the Option 1 good engineering judgment 
demonstration requirement. See Section VII.C references to total costs 
for exhaust and evaporative emissions testing.
    The second outside useful life option, (``Option 2'') would have 
required outside useful life converters to submit test data showing 
compliance with the numerical inside useful life standard, or Federal 
test procedure data from before and after testing showing that 
emissions did not increase after conversion. The potential need for two 
sets of tests, before and after conversion, means that the testing 
costs for exhaust and evaporative emissions tests under Option 2 could 
range from the same as Option 1 to double what they would be under 
Option 1. See Section VII.C for references to total costs for exhaust 
and evaporative emissions testing.
    EPA is finalizing the third option (``Option 3''), which adds the 
intermediate age OBD scan tool test procedure to the Option 1 good 
engineering judgment demonstration requirement. Thus the estimated 
compliance cost for outside useful life conversions would be similar to 
the intermediate age compliance cost. Testing costs may be higher 
should a

[[Page 19859]]

conversion manufacturer perform pre-conversion and post-conversion 
testing to demonstrate that the conversion system maintains the 
performance of the emission control system.

VIII. Associated Costs for Heavy-Duty Engines

    The costs associated with achieving compliance under this final 
rule are expected to be the same or less, on an engine family basis, 
than the current cost of compliance for clean alternative fuel 
conversion of heavy-duty engines. The amount of cost reduction will 
vary based on specific circumstances such as conversion technology, 
fuel type, engine age and model year, conversion manufacturer sales 
volume, and the gross vehicle weight rating (GVWR) of the application 
on which the converted engine is intended to be used. The costs 
converters might incur for technology research and development are not 
considered in the cost analysis because they are not expected to change 
as a result of this rulemaking.
    EPA analyzed the cost of obtaining a certificate of conformity 
under previous fuel conversion regulations and used those estimates as 
a baseline cost. All cost analyses in this section are intended to 
apply to conversions to any fuel.
    The information available to EPA about heavy-duty conversion costs 
is limited. For example, EPA received seven MY 2008 certification 
applications from four conversion manufacturers and only three MY 2009 
applications from three different manufacturers. Based on the limited 
historical data on heavy-duty conversions, EPA has estimated the cost a 
converter would incur to satisfy the demonstration requirements under 
these revised regulations compared to the baseline certification costs.

A. Baseline Costs

    Baseline costs were derived by determining the cost of obtaining 
exhaust and evaporative emission certificates for a new engine family 
under previous regulations and procedures. A new engine family is a 
family that has not been previously certified as an alternative fuel 
conversion. After the first certification, the manufacturer may use the 
same test data to obtain certificates of conformity in subsequent 
years, if desired. Engine families certified this way are referred to 
as ``carry-overs.'' The cost of a carry-over family is mostly limited 
to the certification fee and minor labor costs.
    Some converters who have obtained certificates in recent years may 
notice that the estimated baseline cost is higher than the costs they 
actually incurred. This is because EPA's baseline cost analysis 
includes expenses for evaporative emissions and OBD testing. Many 
heavy-duty engine converters to date have been exempt from these 
testing requirements.\104\ However, it is important to include these 
testing costs in the baseline estimate because engine converters will 
be subject to OBD testing in the future, and evaporative emissions 
testing is required for all fuel types to which an evaporative 
emissions standard applies.
---------------------------------------------------------------------------

    \104\ See for example, 40 CFR 86.010-18(o)(1)(v).
---------------------------------------------------------------------------

    This cost estimate does not consider expenses converters may incur 
to develop and design their conversion system. Typical product 
development costs include research, expert consultation, preliminary or 
shakedown testing, and other expenses associated with perfecting system 
functionality. Rather, this analysis estimates the expected cost of 
satisfying the EPA testing and/or demonstration requirement.
    Estimated labor costs include the time, engineering, managerial, 
legal and support staff spends performing the various activities 
associated with completing an application for certification and any 
necessary updates (running changes). These activities include data 
gathering and analysis, reviewing regulations, and recordkeeping. To 
estimate labor costs, EPA used the Bureau of Labor Statistics' (BLS) 
National Industry-specific Occupational Wage Estimates (May 2008) for 
the Motor Manufacturing Industry under the North American Industry 
Classification System (NAICS) Code 336100. Mean hourly rates were used 
and then increased by a factor of 2.1 to account for benefits and 
overhead. Table VIII.A-1 summarizes this information and presents the 
Standard Occupational Classification (SOC) code for each occupation 
used to estimate labor costs.

           Table VIII.A-1--Labor Categories and Costs Used To Calculate Heavy-Duty Engine Costs Basis
----------------------------------------------------------------------------------------------------------------
                                                                                    Mean hourly
                           Occupation                              SOC code No.     rate  (BLS)        210%
----------------------------------------------------------------------------------------------------------------
Mechanical Engineers............................................         17-2141          $37.59          $78.94
Engineering Managers............................................         11-9041           54.56          114.58
Lawyers.........................................................         23-1011           67.14          140.99
Secretaries, Except Legal, Medical and Executive................         43-6014           19.76           41.50
Mechanical Engineering Technicians..............................         17-3029           31.53           66.21
Engine and Other Machine Assemblers.............................         51-2031           24.56           51.58
Truck Drivers, Heavy and Tractor-Trailer........................         53-3032           26.69           56.05
----------------------------------------------------------------------------------------------------------------

    Conversion manufacturers are also required to pay a certification 
fee under the authority of Section 217 of the CAA and the Independent 
Offices Appropriation Act (31 U.S.C. 9701). This fee is updated every 
calendar year to reflect changes in EPA labor costs and the number of 
certificates issued each year. The costs basis analysis includes the 
appropriate 2010 fee for exhaust ($35,967) and evaporative ($511) 
certification. The fees rule allows for a reduction in fee based on the 
``projected aggregate retail price of all vehicles or engines covered 
by that certificate'' (69 FR 26226, Section F). Converters have 
historically been able to take advantage of the reduced fee provision; 
however, EPA has used the full fee for the cost basis in this analysis.
1. Baseline Costs of Certification for One Heavy-Duty Exhaust Engine
    Historically, all conversion manufacturers who have certified 
converted heavy-duty engines are small manufacturers that do not own 
testing facilities. They hire independent laboratories to test their 
engines. EPA does not expect that to change in the foreseeable future. 
EPA estimates that the cost of testing a heavy-duty engine

[[Page 19860]]

for exhaust emissions in an independent laboratory is approximately 
$30,000. Other operation and maintenance costs include shipping engines 
to test sites, lodging for manufacturer employees to oversee testing, 
recordkeeping costs, and the cost of preparing and submitting the 
application for certification.
    Since EPA does not expect manufacturers to build testing 
laboratories or facilities in response to this rule, no capital costs 
have been added to the cost basis.
a. Baseline Costs Associated With Obtaining One Heavy-Duty Exhaust 
Certificate of Conformity

 Table VIII.A-2--Baseline Costs Associated With Obtaining One Heavy-Duty
                           Exhaust Certificate
------------------------------------------------------------------------
                        Item                            Estimated cost
------------------------------------------------------------------------
Exhaust Testing.....................................             $30,000
Labor...............................................               9,653
Shipping Engines to Test Site.......................               2,500
Lodging.............................................                 250
Other Operating and Maintenance Costs...............                  19
                                                     -------------------
    Exhaust Certification Subtotal..................              42,422
Certification Fee for 2010..........................              35,967
                                                     -------------------
    Total...........................................              78,389
------------------------------------------------------------------------

b. Baseline Costs Associated With Obtaining One Heavy-Duty Evaporative 
Certificate of Conformity
    Manufacturers and converters of Otto-cycle engines are required to 
demonstrate compliance with evaporative emissions requirements and 
obtain an evaporative emissions as well as an exhaust emissions 
certificate of conformity. EPA is including the costs for both 
evaporative and exhaust certificates in the baseline estimate. As with 
exhaust certificates, the unit of certification for evaporative 
emissions is a group of engines with similar evaporative emission 
characteristics known as an evaporative engine family. Exhaust and 
evaporative families are not necessarily identical. Engines grouped 
into several exhaust engine families may belong to only one evaporative 
family, and vice versa.

 Table VIII.A-3--Baseline Costs Associated With Obtaining One Heavy-Duty
                         Evaporative Certificate
------------------------------------------------------------------------
                        Item                            Estimated cost
------------------------------------------------------------------------
Evaporative Testing.................................              $7,030
Labor...............................................               2,431
Other Operating and Maintenance Costs...............                  13
                                                     -------------------
    Evaporative Certification Subtotal..............               9,474
Certification Fee for 2010..........................                 511
                                                     -------------------
    Total...........................................               9,985
------------------------------------------------------------------------

c. Costs Associated With OBDII Demonstration Testing (Engine Family 
Basis)
    To date, heavy-duty engine converters have either been exempt from 
OBD testing requirements, or have been able to satisfy requirements by 
providing EPA with light-duty carry-across data, or with a record of 
California Air Resources Board approval of the OBD system.\105\ 
Therefore EPA does not have any information about the cost of 
conducting heavy-duty engine OBD demonstration testing.
---------------------------------------------------------------------------

    \105\ See 40 CFR 86.005-17 and 40 CFR 86.007-17.
---------------------------------------------------------------------------

    Therefore, EPA is adopting the $26,317 estimate developed for 
light-duty OBD to also estimate heavy-duty OBD certification costs. See 
Section VII.A(1)(a)(c), Table VII.A-4.
    In summary, the baseline cost of fully certifying a HD engine 
family, including evaporative and OBD certification is $114,692, as 
indicated in Table VIII.A-4.

     Table VIII.A-4--Baseline Cost of Certification for Engine Fuel
                               Conversion
------------------------------------------------------------------------
                        Item                            Estimated cost
------------------------------------------------------------------------
Exhaust Certification...............................             $42,422
Exhaust Certification Fee...........................              35,967
Evaporative Certification...........................               9,474
Evaporative Certification Fee.......................                 511
OBD Compliance Demonstration........................              26,317
                                                     -------------------
    Total...........................................             114,692
------------------------------------------------------------------------

[[Page 19861]]

3 Baseline Cost Analysis Based on Four Exhaust Engine Families and Four 
Evaporative Families
    Based on the cost of fully certifying one engine family for both 
exhaust and evaporative emissions, EPA has estimated the current 
baseline cost of certifying four heavy-duty conversion families, 
including all testing, associated labor, overhead, and general and 
administrative costs. For the purpose of this estimate, EPA assumed 
that these four exhaust engine families will belong to two evaporative 
families. This assumption reflects the fact that manufacturers tend to 
use the same evaporative system for multiple exhaust families. The 
estimated cost of four exhaust engine families and two evaporative 
families would be about $438,796 (Table VIII.A-5). Please see the next 
section for an explanation of why EPA has chosen to estimate the cost 
on four families.

      Table VIII.A-5--Baseline Cost of Certifying Four Exhaust Engine Families and Two Evaporative Families
----------------------------------------------------------------------------------------------------------------
                                                               Estimated cost     Number of
                            Item                                 (one engine        engine        Total cost
                                                                   family)         families
----------------------------------------------------------------------------------------------------------------
Exhaust Certification......................................             $42,422            4            $169,689
Exhaust Certification Fee..................................              35,967            4             143,868
Evaporative Certification..................................               9,474            2              18,949
Evaporative Certification Fee..............................                 511            2               1,022
OBD Compliance Demonstration...............................              26,317            4             105,268
                                                            ----------------------------------------------------
    Total..................................................             114,692  ...........             438,796
----------------------------------------------------------------------------------------------------------------

B. Certified Conversion Costs Under the Revised Rule

    The number of engines in a typical heavy-duty engine family has 
historically been lower than the number of vehicles in a light-duty 
test group. Since the cost of certification is spread over a smaller 
pool of engines, it is more expensive to certify a heavy-duty family on 
a per engine basis.
    EPA determined that the current data are not sufficient to develop 
a scaling factor that could be applied to calculate the cost of 
certification under the new rule. Instead, EPA believes it is more 
appropriate to illustrate how the regulations would affect a converter 
seeking certification. This hypothetical scenario is partly based on 
the actual case of a converter who certified four families in 2008. The 
scenario is also used for intermediate age and outside useful life 
estimates. As mentioned previously, the costs converters might incur 
for technology research and development are not considered in the cost 
analysis because they are not expected to change as a result of this 
rulemaking.
1. Baseline Scenario
    In MY 2008, Converter X obtained certificates of conformity with 
heavy-duty exhaust emission regulations for four OEM engine families. 
Converter X used regulations found at 40 CFR 86.000-24 to determine how 
many exhaust engine families, and therefore, how many conversion 
certificates it needed. For the purpose of this demonstration, EPA will 
assume that Converter X submitted one set of test data set and paid one 
full fee for each exhaust certificate. If Converter X also pursued 
evaporative certification for two families separately, it would have to 
pay for two evaporative tests and two evaporative fees. In addition, 
OBD approval was obtained. As shown in Table VIII.A-5 in the previous 
section, the estimated cost for this scenario is $438,796.
2. Scenario under Revised Regulations
    After reviewing the characteristics of each engine family as 
reported in the applications for certification, EPA applied the 
criteria for combining multiple engine families contained in the final 
rule. For a list of criteria, see Section IV.A.2.b. Had the engine 
family combinations been available to Converter X, Converter X would 
have been able to combine two of its engine families into a single 
engine family A, and the remaining two engine families into engine 
family B. Figure VIII.B-1 illustrates this combination.

[[Page 19862]]

[GRAPHIC] [TIFF OMITTED] TR08AP11.006

    By submitting only two exhaust certificate applications, Converter 
X would only need to perform two tests and pay two fees (down from four 
each), thus cutting its costs of certifying its exhaust engine families 
in half (Table VIII.B-2).

 Table VIII.B-2--Cost of Certifying Two Exhaust Engine Families and Two Evaporative Families Under Revised Rule
----------------------------------------------------------------------------------------------------------------
                                                                  Estimated cost     Number of
                              Item                                  (one engine       engine        Total cost
                                                                      family)        families
----------------------------------------------------------------------------------------------------------------
Exhaust Certification...........................................         $42,422               2         $84,845
Exhaust Certification Fee.......................................          35,967               2          71,934
Evaporative Certification.......................................           9,474               2          18,949
Evaporative Certification Fee...................................             511               2           1,022
OBD Compliance Demonstration....................................          26,317               2          52,634
 
                                                                 -----------------------------------------------
    Total.......................................................         114,692               2         229,383
----------------------------------------------------------------------------------------------------------------

    The total cost of certifying the same engines under the revised 
rule is $229,383, representing a 48% savings for Converter X. The cost 
of certification is also spread over a larger pool of engines, lowering 
the cost per unit, as Figure VIII.B-1 shows. The ability to cut costs 
in this way translates into a more cost effective scenario for heavy-
duty converters able to use the new engine family combination criteria.

C. Intermediate Age Engine Compliance Costs

    The previous fuel conversion process required certification 
regardless of the age of the engine being converted. Therefore the 
baseline costs presented in Section VIII.A also apply to intermediate 
age heavy-duty engines. Under the revised rule, converters of 
intermediate age engines must still submit test data to demonstrate 
compliance with applicable standards, but the test data may cover a 
broader group of engines, as described in Section VIII.B. In addition, 
converters of intermediate age engines are no longer required to pay 
fees.
    The revised rule further reduces cost because converters of 
intermediate age engines will no longer need to submit OBD 
certification data. Instead the revised rule requires converters to 
ensure that the OBD system remains fully functional in the converted 
engine. To demonstrate that the OBD system is functional, the converter 
must interrogate the OBD system with a scan tool device, submit a copy 
of the OBD results to EPA and attest that the OBD system works 
properly. Costs associated with this form of OBD demonstration are 
limited to the cost of a heavy-duty OBD scan tool, periodic software 
updates \106\ and labor costs associated with obtaining and submitting 
the print-out.
---------------------------------------------------------------------------

    \106\ Software updates are mainly used to add vehicle models to 
the list of vehicles the OBD scan tool is capable of scanning. Since 
EPA is including the cost of a new scan tool in its OBD 
demonstration estimate for intermediate age and outside useful life 
engine conversions, adding the cost of software updates does not 
appear necessary here.
---------------------------------------------------------------------------

    EPA has found that the costs of OBD scan tools for heavy-duty 
trucks vary widely, depending on the size of the vehicle. For trucks 
weighing less than 14,000 pounds, OBD scan tools range

[[Page 19863]]

between $90 and $1,000. The less expensive ones are usually specific to 
a particular vehicle make and model. For trucks weighing between 14,001 
and 33,000 pounds, OBD scan tools range between $1,300 and $2,500, but 
most cost around $1,500. For the largest trucks, over 33,000 pounds, 
scan tools cost as much as $8,000. Since the majority of applications 
for certification of converted engines are expected to be for engines 
used in applications weighing less than 33,000 pounds, EPA has chosen 
$1,500 as a cost representative of what the average converter is likely 
to pay for an OBD scan tool.
    In addition to the cost of an OBD scan tool, converters of 
intermediate age engines will incur costs for labor associated with 
conducting the scanning procedure, gathering data and submitting it to 
EPA. EPA estimates these cost to amount to approximately $157 per 
engine family. Table VIII.C-1 summarizes the estimated cost of 
obtaining a heavy-duty OBD scan tool and generating a scan report for 
one engine family.

 Table VIII.C-1--Costs Associated With Obtaining a HD OBD Scan Tool and
                Generating Reports for One Engine Family
------------------------------------------------------------------------
                                                              Estimated
                            Item                                 cost
------------------------------------------------------------------------
OBD Scan Tool..............................................       $1,500
Labor......................................................          158
                                                            ------------
    Total..................................................        1,658
------------------------------------------------------------------------

    If the engine families Converter X certified in our previous 
scenario were intermediate age engines, Converter X would realize 
savings due to (1) engine family groupings, (2) the lack of a 
certification fee, and (3) lower OBD demonstration costs. As shown in 
Table VIII.C-2, the cost to Converter X would be approximately 
$107,109. This represents savings of about $331,687or 76% when compared 
to the baseline.

            Table VIII.C-2--Cost of Two Intermediate Age Conversions Certification Under Revised Rule
    [Compared to baseline cost estimates and new and nearly new engine certification under the revised rule]
----------------------------------------------------------------------------------------------------------------
                                                                               Cost for two
                                                         Baseline cost for   exhaust and two      Cost for two
                                                          four exhaust and    evap families     exhaust and two
                          Item                                two evap      (certification of    evap families
                                                              families        new and nearly     (intermediate
                                                          (certification)      new--revised       age--revised
                                                                                  rule)              rule)
----------------------------------------------------------------------------------------------------------------
Exhaust Certification..................................           $169,689            $84,845            $84,845
Exhaust Certification Fee..............................            143,868             71,934  .................
Evaporative Certification..............................             18,949             18,949             18,949
Evaporative Certification Fee..........................              1,022              1,022  .................
OBD Compliance Demonstration...........................            105,268             52,634                N/A
OBD scan tool report and statement of compliance.......                N/A                N/A              3,316
                                                        --------------------------------------------------------
    Total..............................................            438,796            229,383            107,109
----------------------------------------------------------------------------------------------------------------

D. Outside Useful Life Engine Compliance Costs

    As explained in Section VII-D, EPA presented three options for 
outside useful life engine conversions in the proposed rule. Today, EPA 
is finalizing ``Option 3'', which adds the intermediate age OBD scan 
tool test procedure to the Option 1 good engineering judgment 
demonstration requirement.
    EPA used the approach described in previous sections to estimate 
the cost of converting outside useful life heavy-duty engines and 
concluded that costs would be the same or less than those incurred by 
converters of intermediate age heavy-duty engines. Please see Table 
VIII.C.2 for further detail on intermediate age conversion costs.

IX. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    This action is not a ``significant regulatory action'' under the 
terms of Executive Order (EO) 12866 (58 FR 51735, October 4, 1993) and 
is therefore not subject to review under the EO. OMB confirmed this 
rulemaking was non-significant on December 7, 2010 and waived review.
    EPA prepared an analysis of the potential costs and benefits 
associated with this action. Cost analyses are summarized in Sections 
VII and VIII of this preamble.

B. Paperwork Reduction Act

    The information collection requirements in this final rule have 
been submitted for approval to the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The 
Information Collection Request (ICR) documents prepared by EPA have 
been assigned EPA ICR numbers 0783.59 and 1684.17. Any information 
collection requirements in ICR numbers 0783.59 and 1684.17 which are 
not covered by existing OMB control numbers 2060-0104 and 2060-0287, 
are not enforceable until OMB approves them.
    The Agency is finalizing requirements for manufacturers to submit 
information to ensure compliance with the provisions in this rule. This 
includes a variety of requirements for alternative fuel vehicle/engine 
converters who seek an exemption from the anti-tampering prohibition in 
section 203(a)(3) of the Clean Air Act. Under Title II of the Clean Air 
Act (42 U.S.C. 7521 et seq.) EPA is required to establish motor vehicle 
emission standards that apply throughout useful life, and to verify 
through issuance of a certificate of conformity that any vehicle or 
engine entered into commerce complies with the established emission 
standards. Under Section 203 of the CAA, once certified, the vehicle or 
engine generally may not be altered from its certified configuration. 
EPA has established policies through which conversion manufacturers can 
demonstrate that the conversion does not compromise emissions 
compliance. This action amends those regulations, located in 40 CFR 
part 85, subpart F. Section 208(a) of the Act requires that vehicle/
engine

[[Page 19864]]

manufacturers and others subject to the Act provide information the 
Administrator may reasonably require to determine compliance with the 
regulations; submission of the information is therefore mandatory for 
securing the regulatory exemption from the tampering prohibition set 
forth in 40 CFR part 85, subpart F. We will consider confidential all 
information meeting the requirements of section 208(c) of the Clean Air 
Act.
    As described in Sections VII and VIII of this preamble, compliance 
costs per test group or engine family are expected to decrease overall.
    Model years 2009, 2010, and 2011 have exhibited an upward trend in 
the number of light-duty fuel conversion certificates issued and the 
number of clean alternative fuel conversion manufacturers. In 2010, 42 
light-duty alternative fuel conversion certificates were issued for 
seven different conversion manufacturers. In 2011, EPA has thus far 
issued 100 light duty fuel conversion certificates; however about half 
of those certificates are renewals, which will no longer be necessary 
under this new rule. For this final rule, we are assuming an estimated 
50 light duty certificates for eight different conversion 
manufacturers, since this is similar to the 2010 value and the 2011 
number if renewals are no longer needed. As shown in Table IX-1, the 
total annual industry paperwork burden associated with the light-duty 
vehicle program is about 18,535 hours and $185,093 in annual capital 
and operations and maintenance costs based on a projection of 8 
respondents. The estimated burden for converters is a total estimate 
for both new and existing reporting requirements. This represents an 
estimated reduction in burden from previous requirements of 11,203 
hours and $89,103 in non-labor costs for light-duty converters. The 
total heavy-duty conversion industry is expected to grow as a result of 
this rule, therefore increasing industry-wide costs. However, costs per 
respondent are likely to decrease, by as much as 76 percent. Burden 
means the total time, effort, or financial resources expended by 
persons to generate, maintain, retain, or disclose or provide 
information to or for a Federal agency. This includes the time needed 
to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.

                    Table IX-1--Estimated Burden for Reporting and Recordkeeping Requirements
----------------------------------------------------------------------------------------------------------------
                                                                     Estimated       Estimated
         Industry sector             Number of     Annual burden  annual capital   annual labor      Estimated
                                    respondents       (hours)      and O&M costs       cost         total costs
----------------------------------------------------------------------------------------------------------------
Light-Duty Vehicles (ICR                       8          18,535        $185,093      $1,060,272      $1,245,365
 0783.59).......................
On-Highway Heavy-Duty Engines                  8           1,578         622,389         135,078         757,468
 (ICR 1684.17)..................
                                 -------------------------------------------------------------------------------
    Total.......................              16          20,113         807,482       1,195,350       2,002,833
----------------------------------------------------------------------------------------------------------------

    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9. When this ICR is 
approved by 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 Act (RFA)

    The Regulatory Flexibility Act generally requires an agency to 
prepare a regulatory flexibility analysis of any rule subject to notice 
and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute unless the agency certifies that the rule will 
not have a significant economic impact on a substantial number of small 
entities. Small entities include small businesses, small organizations, 
and small governmental jurisdictions.
    For purposes of assessing the impacts of this rule on small 
entities, small entity is defined as: (1) Small businesses that are 
primarily engaged in engine and motor vehicle parts manufacturing, 
specifically aftermarket fuel conversion systems for vehicles and 
engines as included in the definitions by NAICS codes 335312, 336312, 
336322, and 336399 with fewer than 750-1000 employees and 811198 with 
annual revenue below $7 million (based on Small Business Administration 
size standards at 13 CFR 121.201); (2) a small governmental 
jurisdiction that is a government of a city, county, town, school 
district or special district with a population of less than 50,000; and 
(3) a small organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.
    After considering the economic impacts of this action on small 
entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. In 
determining whether a rule has a significant economic impact on a 
substantial number of small entities, the impact of concern is any 
significant adverse economic impact on small entities, since the 
primary purpose of the regulatory flexibility analyses is to identify 
and address regulatory alternatives ``which minimize any significant 
economic impact of the rule on small entities.'' 5 U.S.C. 603 and 604. 
Thus, an agency may certify that a rule will not have a significant 
economic impact on a substantial number of small entities if the rule 
relieves regulatory burden, or otherwise has a positive economic effect 
on all of the small entities subject to the rule.
    To qualify for an exemption from the prohibition on tampering, 
previous alternative fuel conversion regulations required converters to 
complete vehicle and engine certification testing, data submittal and 
compliance procedures using OEM new vehicle certification procedures. 
The previous certification process largely will be retained for 
conversion of vehicles and engines that are about two years old or 
newer, with a few amendments which may reduce the testing burden. The 
amendments include provisions such as (1) a statement of compliance 
using good engineering judgment in lieu of HCHO testing analysis for 
certain alternative fuels, (2) the use of conversion factors to 
calculate NMOG from NMHC in lieu

[[Page 19865]]

of speciation testing for some alternative fuels, and (3) allowing the 
combination of OEM test groups into larger testing combinations for 
aftermarket fuel conversion.
    In addition, this final rule creates an intermediate age and 
outside useful life compliance program as an alternative to vehicle and 
engine certification of fuel conversion of older vehicles and engines. 
The intermediate age and outside useful life programs will allow 
conversion manufacturers to conduct fewer tests and will provide a 
streamlined data-submittal process. These programs may also allow for 
one set of test data to apply to a broader set of OEM vehicles.
    We have therefore concluded that today's final rule will generally 
relieve or not increase regulatory burden for each affected small 
entity. The number of potentially affected small entities subject to 
this rule is projected to be less than 20 per year. The degree of cost 
reduction for each entity will vary based on conversion technology, 
fuel type, vehicle or engine age, applicability, conversion 
manufacturer preference, and the manufacturer's annual sales volume. 
See Sections VII and VIII of this preamble for further details.

D. Unfunded Mandates Reform Act

    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, or Tribal 
governments. The rule imposes no enforceable duty on any State, local 
or Tribal governments. EPA has determined that this rule does not 
contain a Federal mandate that may result in expenditures of $100 
million or more for the private sector in any one year. Thus, this rule 
is not subject to the requirements of sections 202 or 205 of UMRA. EPA 
has determined that this rule is also not subject to the requirements 
of section 203 of UMRA because it contains no regulatory requirements 
that might significantly or uniquely affect small governments.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.''
    ``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    This action does not have federalism 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. EPA and the States will maintain 
the current distribution of power and responsibility. Thus, Executive 
Order 13132 does not apply to this action.
    Although section 6 of Executive Order 13132 does not apply to this 
action, EPA did consult with State and local officials and 
representatives of State and local governments in developing this 
action. EPA received comments from four separate State agencies/
officials: The State of Utah, Office of the Governor Energy Advisor, 
Dianne Nielson; The Texas Railroad Commission, Michael Williams, 
Commissioner; The Texas Commission on Environmental Quality, Mark 
Vickery, Executive Director; and the Florida Department of 
Environmental Protection, Sandra Veazey, Chief Bureau of Air Monitoring 
and Mobile Sources. None of the State agency comments expressed 
federalism implications or concerns. EPA generally received positive 
comments from State agencies/officials about the goals of the proposed 
rule. State agency comments about program details are included in the 
Response to Comments document in the docket.
    In the spirit of Executive Order 13132, and consistent with EPA 
policy to promote communications between EPA and State and local 
governments, EPA specifically solicited comment on the proposed rule 
from State and local officials.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have Tribal implications, as specified in 
Executive Order 13175 (65 FR 67249, November 9, 2000). Thus, Executive 
Order 13175 does not apply to this action. EPA specifically solicited 
additional comment on the proposal from Tribal officials, and received 
no comments from Tribal officials.

G. Executive Order 13045: Protection of Children from Environmental 
Health and Safety Risks

    EPA interprets EO 13045 (62 FR 19885, April 23, 1997) as applying 
only to those regulatory actions that concern health or safety risks, 
such that the analysis required under section 5-501 of the EO has the 
potential to influence the regulation. This action is not subject to EO 
13045 because it is not economically significant as defined in EO 12866 
and does not establish an environmental standard intended to mitigate 
health or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355 
(May 22, 2001)), because it is not a significant regulatory action 
under Executive Order 12866.

I. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (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 by 
voluntary consensus standards bodies. NTTAA directs EPA to provide 
Congress, through OMB, explanations when the Agency decides not to use 
available and applicable voluntary consensus standards.
    This rulemaking does not involve new technical standards and EPA 
received no comments concerning any voluntary consensus standards. 
Therefore, EPA is not considering the use of any voluntary consensus 
standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes 
Federal executive policy on environmental justice. Its main provision 
directs Federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    EPA has determined that this final rule will not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it does not 
affect the level of protection

[[Page 19866]]

provided to human health or the environment. This action changes some 
required procedures but does not relax the control measures on sources 
regulated by the rule and therefore will not cause emissions increases 
from these sources.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).

L. Administrative Procedure Act

    Section 553(d) of the Administrative Procedure Act, 5 U.S.C. 553(d) 
generally requires agencies to publish substantive rules at least 30 
days prior to the effective dates of such rules. One exception to that 
general requirement is that an agency may establish an immediate 
effective date for a rule ``which grants or recognizes an exemption or 
relieves a restriction.'' EPA has decided that this action will be 
effective immediately upon publication in the Federal Register because 
this action recognizes an exemption to the Clean Air Act's section 203 
tampering prohibition.

X. Statutory Provisions and Legal Authority

    Statutory authority for the regulation of clean alternative fuel 
conversion can be found in 42 U.S.C. 7401-7617q. The Administrator has 
determined that this action is subject to the provisions of Clean Air 
Act (CAA) section 307(d).\107\
---------------------------------------------------------------------------

    \107\ See CAA section 307(d)(1)(V).
---------------------------------------------------------------------------

List of Subjects in 40 CFR Parts 85 and 86

    Environmental protection, Administrative practice and procedure, 
Alternative fuel conversion, Confidential business information, Motor 
vehicle pollution, Reporting and recordkeeping requirements.

    Dated: March 29, 2011.
Lisa P. Jackson,
Administrator.
    For the reasons set forth in the preamble title 40, Chapter 1 of 
the Code of Federal Regulations is amended as follows:

PART 85--CONTROL OF AIR POLLUTION FROM MOBILE SOURCES

0
1. The authority citation for part 85 continues to read as follows:

    Authority:  42 U.S.C. 7401-7671q.

0
2. Subpart F of part 85 is revised to read as follows:
Subpart F--Exemption of Clean Alternative Fuel Conversions From 
Tampering Prohibition
Sec.
85.501 General applicability.
85.502 Definitions.
85.505 Overview.
85.510 Exemption provisions for new and relatively new vehicles/
engines.
85.515 Exemption provisions for intermediate age vehicles/engines.
85.520 Exemption provisions for outside useful life vehicles/
engines.
85.524 Legacy standards.
85.525 Applicable standards.
85.530 Vehicle/engine labels and packaging labels.
85.535 Liability, recordkeeping and end of year reporting.

Subpart F--Exemption of Clean Alternative Fuel Conversions From 
Tampering Prohibition

Sec.  85.501  General applicability.

    (a) This subpart describes the provisions related to an exemption 
from the tampering prohibition in Clean Air Act section 203(a) (42 
U.S.C. 7522(a)) for light-duty vehicles, light-duty trucks, medium-duty 
passenger vehicles, heavy-duty vehicles, and heavy-duty engines. This 
subpart F does not apply for highway motorcycles or for nonroad or 
stationary engines or equipment.
    (b) For purposes of this subpart, the term ``you'' generally means 
a clean alternative fuel conversion manufacturer, which may also be 
called ``conversion manufacturer'' or ``converter''.

Sec.  85.502  Definitions.

    The definitions in this section apply to this subpart. All terms 
that are not defined in this subpart have the meaning given in 40 CFR 
part 86. All terms that are not defined in this subpart or in 40 CFR 
part 86 have the meaning given in the Clean Air Act. The definitions 
follow:
    Clean alternative fuel conversion (or ``fuel conversion'' or 
``conversion system'') means any alteration of a motor vehicle/engine, 
its fueling system, or the integration of these systems, that allows 
the vehicle/engine to operate on a fuel or power source different from 
the fuel or power source for which the vehicle/engine was originally 
certified; and that is designed, constructed, and applied consistent 
with good engineering judgment and in accordance with all applicable 
regulations. A clean alternative fuel conversion also means the 
components, design, and instructions to perform this alteration.
    Clean alternative fuel conversion manufacturer (or ``conversion 
manufacturer'' or ``converter'') means any person that manufactures, 
assembles, sells, imports, or installs a motor vehicle/engine fuel 
conversion for the purpose of use of a clean alternative fuel.
    Conversion model year means the clean alternative fuel conversion 
manufacturer's annual production period which includes January 1 of 
such calendar year. A specific model year may not include January 1 
from the previous year or the following year. This is based on the 
expectation that production periods generally run on consistent 
schedules from year to year. Conversion model years may not circumvent 
or skip an annual production period. The term conversion model year 
means the calendar year if the converter does not have a different 
annual production period.
    Date of conversion means the date on which the clean alternative 
fuel conversion system is fully installed and operable.
    Dedicated vehicle/engine means any vehicle/engine engineered and 
designed to be operated using a single fuel.
    Dual-fuel vehicle/engine means any vehicle/engine engineered and 
designed to be operated on two or more different fuels, but not on a 
mixture of the fuels.
    Heavy-duty engines describes all engines intended for use in heavy-
duty vehicles, covered under the applicability of 40 CFR part 86, 
subpart A.
    Light-duty and heavy-duty chassis certified vehicles describes all 
light-duty vehicles, light-duty trucks, medium duty passenger vehicles, 
and heavy-duty complete and incomplete vehicles covered under the 
applicability of 40 CFR part 86, subpart S.
    Mixed-fuel vehicle/engine means any vehicle/engine engineered and 
designed to be operated on the original fuel(s), alternative fuel(s), 
or a mixture of two or more fuels that are combusted together. Mixed-
fuel vehicles/engines include flexible-fuel vehicles/engines as defined 
in 40 CFR part 86 subpart S.

[[Page 19867]]

    Original equipment manufacturer (OEM) means the original 
manufacturer of the new vehicle/engine or relating to the vehicle/
engine in its original certified configuration.
    Original model year means the model year in which a vehicle/engine 
was originally certified by the original equipment manufacturer, as 
noted on the certificate and on the emission control information label.
    We (us, our) means the Administrator of the Environmental 
Protection Agency or any authorized representative.

Sec.  85.505  Overview.

    (a) You are exempted from the tampering prohibition in Clean Air 
Act section 203(a)(3) (42 U.S.C. 7522)(a)(3) (``tampering'') if you 
satisfy all the provisions of this subpart.
    (b) The tampering exemption provisions described in this subpart 
are differentiated based on the age of the vehicle/engine at the point 
of conversion as follows:
    (1) ``New and relatively new'' refers to a vehicle/engine where the 
date of conversion is in a calendar year that is not more than one year 
after the original model year. See Sec.  85.510 for provisions that 
apply specifically to new and relatively new vehicles/engines.
    (2) ``Intermediate age'' refers to a vehicle/engine that has not 
exceeded the useful life (in years, miles, or hours of operation) 
applicable to the vehicle/engine as originally certified, excluding new 
and relatively new vehicles/engines. See Sec.  85.515 for provisions 
that apply specifically to intermediate-age vehicles/engines.
    (3) ``Outside useful life'' refers to any vehicle/engine that has 
exceeded the useful life (in years, miles, or hours of operation) 
applicable to the vehicle/engine as originally certified. See Sec.  
85.520 for provisions that apply specifically to outside useful life 
vehicles/engines.
    (c) If the converted vehicle/engine is a dual-fuel or mixed-fuel 
vehicle/engine, you must submit test data using each type of fuel, 
except that if you wish to certify to the same standards as the OEM 
vehicle/engine, you may omit testing for the fuel originally used to 
certify the vehicle/engine if you comply with Sec.  85.510(b)(10)(ii), 
(iii), and (iv), Sec.  85.515(b)(10)(iii)(B), (C), and (D), or Sec.  
85.520(b)(6)(iii)(B), (C), and (D), as applicable.
    (d) This subpart specifies certain reporting requirements. We may 
ask you to give us more information than we specify in this subpart to 
determine whether your vehicles/engines conform to the requirements of 
this subpart. We may ask you to give us less information or do less 
testing than we specify in this subpart.
    (e) EPA may require converters to submit vehicles/engines for EPA 
testing under any of the three age based programs. Under Sec.  85.510 
or Sec.  85.515, if a vehicle/engine is selected for confirmatory 
testing as part of the demonstration and notification process, the 
vehicle/engines must satisfy the applicable intermediate and full 
useful life standards using the appropriate deterioration factors to 
qualify for an exemption from the tampering prohibition. If an outside 
useful life vehicle/engine is selected for testing, the vehicle/engine 
must demonstrate that emissions are maintained or improved upon after 
conversion to qualify for an exemption from the tampering prohibition.
    (f) If you have previously used small volume conversion 
manufacturer or qualified small volume test group/engine family 
procedures and you may exceed the volume thresholds using the sum 
described in Sec.  85.535(f) to determine small volume status in 40 CFR 
86.1838-01, 40 CFR 86.098-14, and 40 CFR 86.096-24(e)(2) as 
appropriate, you must satisfy the requirements for conversion 
manufacturers who do not qualify for small volume exemptions or your 
exemption from tampering is no longer valid.
    (g) An exemption from the prohibition on tampering applies to 
previously issued alternative fuel conversion certificates of 
conformity for the applicable conversion test group/engine family and/
or evaporative/refueling family, as long as the conditions under which 
the certificate was issued remain unchanged, such as small volume 
manufacturer or qualified small volume test group/engine family status. 
Your exemption from tampering is valid only if the conversion is 
installed on the OEM test groups/engine families and/or evaporative 
emissions/refueling families listed on the certificate.
    (h) The applicable useful life of a clean alternative fuel 
converted vehicle/engine shall end at the same time the OEM vehicle's/
engine's original useful life ends.

Sec.  85.510  Exemption provisions for new and relatively new vehicles/
engines.

    (a) You are exempted from the tampering prohibition with respect to 
new and relatively new vehicles/engines if you certify the conversion 
system to the emission standards specified in Sec.  85.525 as described 
in paragraph (b) in this section; you meet the labeling and packaging 
requirements in Sec.  85.530 before you sell, import or otherwise 
facilitate the use of a clean alternative fuel conversion system; and 
you meet the liability, recordkeeping, and end of year reporting 
requirements in Sec.  85.535.
    (b) Certification under this section must be based on the 
certification procedures such as those specified in 40 CFR part 86, 
subparts A, B, and S and 40 CFR part 1065, as applicable, subject to 
the following exceptions and special provisions:
    (1) Test groups and evaporative/refueling families for light-duty 
and heavy-duty chassis certified vehicles.
    (i) Small volume conversion manufacturers and qualified small 
volume test groups.
    (A) If criteria for small volume manufacturer or qualified small 
volume test groups are met as defined in 40 CFR 86.1838-01, you may 
combine light-duty vehicles or heavy-duty vehicles which can be chassis 
certified under 40 CFR part 86, subpart S using good engineering 
judgment into conversion test groups if the following criteria are 
satisfied instead of those specified in 40 CFR 86.1827-01.
    (1) Same OEM and OEM model year.
    (2) Same OBD group.
    (3) Same vehicle classification (e.g. light-duty vehicle, heavy-
duty vehicle).
    (4) Engine displacement is within 15% of largest displacement or 50 
CID, whichever is larger.
    (5) Same number of cylinders or combustion chambers.
    (6) Same arrangement of cylinders or combustion chambers (e.g. in-
line, v-shaped).
    (7) Same combustion cycle (e.g., two stroke, four stroke, Otto-
cycle, diesel-cycle).
    (8) Same engine type (e.g. piston, rotary, turbine, air cooled vs. 
water cooled).
    (9) Same OEM fuel type (except otherwise similar gasoline and E85 
flexible-fuel vehicles may be combined into dedicated alternative fuel 
vehicles).
    (10) Same fuel metering system (e.g. throttle body injection vs. 
port injection).
    (11) Same catalyst construction (e.g. metal vs. ceramic substrate).
    (12) All converted vehicles are subject to the most stringent 
emission standards used in certifying the OEM test groups within the 
conversion test group.
    (B) EPA-established scaled assigned deterioration factors for both 
exhaust and evaporative emissions may be used for vehicles with over 
10,000 miles if the criteria for small volume manufacturer or qualified 
small volume test groups are met as defined in 40 CFR 86.1838-01. This 
deterioration factor will be adjusted according to vehicle or engine 
miles of operation. The

[[Page 19868]]

deterioration factor is intended to predict the vehicle's emission 
levels at the end of the useful life. EPA may adjust these scaled 
assigned deterioration factors if we find the rate of deterioration 
non-constant or if the rate differs by fuel type.
    (C) As part of the conversion system description provided in the 
application for certification, conversion manufacturers using EPA 
assigned deterioration factors must present detailed information to 
confirm the durability of all relevant new and existing components and 
to explain why the conversion system will not harm the emission control 
system or degrade the emissions.
    (ii) Conversion evaporative/refueling families are identical to the 
OEM evaporative/refueling families unless the OEM evaporative emission 
system is no longer functionally necessary. You must create any new 
evaporative families according to 40 CFR 86.1821-01.
    (2) Engine families and evaporative/refueling families for heavy-
duty engines.
    (i) Small volume conversion manufacturers and qualified small 
volume heavy-duty engine families.
    (A) If criteria for small volume manufacturer or qualified small 
volume engine families are met as defined in 40 CFR 86.098-14 and 40 
CFR 86.096-24(e)(2) you may combine heavy-duty engines using good 
engineering judgment into conversion engine families if the following 
criteria are satisfied instead of those specified in 40 CFR part 86, 
subpart A.
    (1) Same OEM.
    (2) Same OBD group after MY 2013.
    (3) Same service class (e.g. light heavy-duty diesel engines, 
medium heavy-duty diesel engines, heavy heavy-duty diesel engines).
    (4) Engine displacement is within 15% of largest displacement or 50 
CID, whichever is larger.
    (5) Same number of cylinders.
    (6) Same arrangement of cylinders.
    (7) Same combustion cycle.
    (8) Same method of air aspiration.
    (9) Same fuel type (e.g. diesel/gasoline).
    (10) Same fuel metering system (e.g. mechanical direct or 
electronic direct injection).
    (11) Same catalyst/filter construction (e.g. metal vs. ceramic 
substrate).
    (12) All converted engines are subject to the most stringent 
emission standards. For example, 2005 and 2007 heavy-duty diesel 
engines may be in the same family if they meet the most stringent 
(2007) standards.
    (13) Same emission control technology (e.g., internal or external 
EGR).
    (B) EPA-established scaled assigned deterioration factors for both 
exhaust and evaporative emissions may be used for engines with over 
10,000 miles if the criteria for small volume manufacturer or qualified 
small volume engine families are met as defined in 40 CFR 86.098-14 and 
40 CFR 86.096-24(e)(2). This deterioration factor will be adjusted 
according to vehicle or engine miles of operation. The deterioration 
factor is intended to predict the engine's emission levels at the end 
of the useful life. EPA may adjust these scaled assigned deterioration 
factors if we find the rate of deterioration non-constant or if the 
rate differs by fuel type.
    (C) As part of the conversion system description provided in the 
application for certification, conversion manufacturers using EPA 
assigned deterioration factors must present detailed information to 
confirm the durability of all relevant new and existing components and 
to explain why the conversion system will not harm the emission control 
system or degrade the emissions.
    (ii) Conversion evaporative/refueling families are identical to the 
OEM evaporative/refueling families unless the OEM evaporative emission 
system is no longer functionally necessary. You must create any new 
evaporative families according to 40 CFR 86.096-24(a).
    (3) Conversion test groups/engine families for small volume 
conversion manufacturers and qualified small volume test groups/engine 
families may include vehicles/engines that are subject to different OEM 
emission standards; however, all the vehicles/engines certified under 
this subpart in a single conversion test group/engine family are 
subject to the most stringent standards that apply for vehicles/engines 
included in the conversion test group/engine family. For example, if 
OEM vehicle test groups originally certified to Tier 2, Bin 4 and Bin 5 
standards are in the same conversion test group for purposes of fuel 
conversion, all the vehicles certified in the conversion test group 
under this subpart are subject to the Tier 2, Bin 4 standards. 
Conversion manufacturers may choose to certify a conversion test group/
engine family to a more stringent standard than the OEM did. The 
optional, more stringent standard would then apply to all OEM test 
groups/engine families within the conversion test group/engine family. 
This paragraph (b)(3) does not apply to conversions to dual-fuel/mixed-
fuel vehicles/engines, as provided in paragraph (b)(7) of this section.
    (4)-(5) [Reserved]
    (6) Durability testing is required unless the criteria for small 
volume manufacturer or qualified small volume test groups/engine 
families are met as defined in 40 CFR 86.1838-01, 40 CFR 86.098-14, and 
40 CFR 86.096-24(e)(2), as applicable.
    (7) Conversion test groups/engine families for conversions to dual-
fuel or mixed-fuel vehicles/engines cannot include vehicles/engines 
subject to different emission standards unless applicable exhaust and 
OBD demonstrations are also conducted for the original fuel(s) 
demonstrating compliance with the most stringent standard represented 
in the test group. However for small volume conversion manufacturers 
and qualified small volume test groups/engine families the data 
generated from exhaust emission testing on the new fuel for dual-fuel 
or mixed-fuel test vehicles/engines may be carried over to vehicles/
engines which otherwise meet the test group/engine family criteria and 
for which the test vehicle/engine data demonstrate compliance with the 
application vehicle/engine standard. Clean alternative fuel conversion 
evaporative families for dual-fuel or mixed-fuel vehicles may not 
include vehicles/engines which were originally certified to different 
evaporative emissions standards unless evaporative/refueling 
demonstrations are also conducted for the original fuel(s) 
demonstrating compliance with the most stringent standard represented 
in the evaporative/refueling family.
    (8) The vehicle/engine selected for testing must qualify as a 
worst-case vehicle/engine under 40 CFR 86.1828-10 or 40 CFR 86.096-
24(b)(2) through (b)(3), as applicable.
    (9) OBD requirements.
    (i) The OBD system must properly detect and identify malfunctions 
in all monitored emission-related powertrain systems or components 
including any new monitoring capability necessary to identify potential 
emission problems associated with the new fuel.
    (ii) Conduct all OBD testing as required for OEM certification.
    (iii) In addition to conducting OBD testing as required for 
certification, submit the following statement of compliance, if the OEM 
vehicles/engines were required to be OBD equipped. The test group/
engine family converted to an alternative fuel has fully functional OBD 
systems and therefore meets the OBD requirements such as those 
specified in 40 CFR 86, subparts

[[Page 19869]]

A and S when operating on the alternative fuel.
    (10) In lieu of specific certification test data, you may submit 
the following attestations for the appropriate statements of 
compliance, if you have sufficient basis to prove the statement is 
valid.
    (i) The test group/engine family converted to an alternative fuel 
has properly exercised the optional and applicable statements of 
compliance or waivers in the certification regulations such as those 
specified in 40 CFR part 86, subparts A, B, and S and 40 CFR part 1065. 
Attest to each statement or waiver in your application for 
certification.
    (ii) The test group/engine family converted to dual-fuel or mixed-
fuel operation retains all the OEM fuel system, engine calibration, and 
emission control system functionality when operating on the fuel with 
which the vehicle/engine was originally certified.
    (iii) The test group/engine family converted to dual fuel or mixed-
fuel operation retains all the functionality of the OEM OBD system (if 
so equipped) when operating on the fuel with which the vehicle/engine 
was originally certified.
    (iv) The test group/engine family converted to dual-fuel or mixed-
fuel operation properly purges hydrocarbon vapor from the evaporative 
emission canister when the vehicle/engine is operating on the 
alternative fuel.
    (11) Certification fees apply per 40 CFR 1027.
    (12) A certificate issued under this section is valid starting with 
the indicated effective date and expires on December 31 of the 
conversion model year for which it is issued. You may apply for a 
certificate of conformity for the next conversion model year using the 
applicable provisions for carryover certification. Even after the 
certificate expires, your exemption from the prohibition on tampering 
remains valid for the applicable conversion test group/engine family 
and/or evaporative/refueling family, as long as the conditions under 
which the certificate was issued remain unchanged, such as small volume 
manufacturer or qualified small volume test group/engine family status. 
Your exemption from tampering is valid only if the conversion is 
installed on the OEM test groups/engine families and/or evaporative 
emissions/refueling families listed on the certificate. For example, if 
you have received a clean alternative fuel conversion certificate of 
conformity in conversion model year 2011 for converting a 2010 model 
year OEM test group/evaporative/refueling family, your exemption from 
tampering continues to apply for the conversion of the same 2010 model 
year OEM test group/evaporative/refueling family as long as the 
conditions under which the certificate was issued remain unchanged, 
such as small volume manufacturer status.
    (13) Conversion systems must be properly installed and adjusted 
such that the vehicle/engine operates consistent with the principles of 
good engineering judgment and in accordance with all applicable 
regulations.

Sec.  85.515  Exemption provisions for intermediate age vehicles/
engines.

    (a) You are exempted from the tampering prohibition with respect to 
intermediate age vehicles/engines if you properly test, document and 
notify EPA that the conversion system complies with the emission 
standards specified in Sec.  85.525 as described in paragraph (b) of 
this section; you meet the labeling requirements in Sec.  85.530 before 
you sell, import or otherwise facilitate the use of a clean alternative 
fuel conversion system; and you meet the liability, recordkeeping, and 
end of year reporting requirements in Sec.  85.535. You may also meet 
the requirements under this section by complying with the requirements 
in Sec.  85.510.
    (b) Documenting and notifying EPA under this section includes 
demonstrating compliance with all the provisions in this section and 
providing all notification information to EPA. You may notify us as 
described in this section instead of certifying the clean alternative 
fuel conversion system. You must demonstrate compliance with all 
exhaust and evaporative emissions standards by conducting all exhaust 
and evaporative emissions and durability testing as required for OEM 
certification subject to the exceptions and special provisions 
permitted in Sec.  85.510. This paragraph (b) provides additional 
special provisions applicable to intermediate age vehicles/engines. 
Paragraph (b) is applicable to all conversion manufacturers unless 
otherwise specified.
    (1) Conversion test groups for light-duty and heavy-duty chassis 
certified vehicles may be grouped together into an exhaust conversion 
test group using the criteria described in Sec.  85.510(b)(1)(i)(A), 
except that the same OBD group is not a criterion. Evaporative/
refueling families may be grouped together using the criteria described 
in Sec.  85.510(b)(1)(ii).
    (2) Conversion engine families for heavy-duty engines may be 
grouped together into an exhaust conversion engine family using the 
criteria described in Sec.  85.510(b)(2)(i)(A), except that the same 
OBD group is not a criterion. Evaporative/refueling families may be 
grouped together using the criteria described in Sec.  
85.510(b)(2)(ii).
    (3) Conversion test groups/engine families may include vehicles/
engines that are subject to different OEM emission standards; however, 
all vehicles/engines in a single conversion test group/engine family 
are subject to the most stringent standards that apply for vehicles/
engines included in the conversion test group/engine family. For 
example, if OEM vehicle test groups originally certified to Tier 2, Bin 
4 and Bin 5 standards are in the same conversion test group for 
purposes of fuel conversion, all the vehicles in the conversion test 
group under this subpart are subject to the Tier 2, Bin 4 standards. 
This paragraph (b)(3) does not apply to conversions to dual-fuel/mixed-
fuel vehicles/engines, as provided in paragraph (b)(7).
    (4) EPA-established scaled assigned deterioration factors for both 
exhaust and evaporative emissions may be used for vehicles/engines with 
over 10,000 miles if the criteria for small volume manufacturer or 
qualified small volume test groups/engine families are met as defined 
in 40 CFR 86.1838-01, 40 CFR 86.098-14, or 40 CFR 86.096-24(e)(2), as 
appropriate. This deterioration factor will be adjusted according to 
vehicle/engine miles or hours of operation. The deterioration factor is 
intended to predict the vehicle/engine's emission level at the end of 
the useful life. EPA may adjust these scaled assigned deterioration 
factors if we find the rate of deterioration non-constant or if the 
rate differs by fuel type.
    (5) As part of the conversion system description required by 
paragraph (b)(10)(i) of this section, small volume conversion 
manufacturers and qualified small volume test groups/engine families 
using EPA assigned deterioration factors must present detailed 
information to confirm the durability of all relevant new and existing 
components and explain why the conversion system will not harm the 
emission control system or degrade the emissions.
    (6) Durability testing is required unless the criteria for small 
volume manufacturer or qualified small volume test groups/engine 
families are met as defined in 40 CFR 86.1838-01, 40 CFR 86.098-14, or 
40 CFR 86.096-24(e)(2), as applicable. Durability procedures for large 
volume conversion manufacturers of intermediate age light-duty and 
heavy-duty chassis certified vehicles that follow provisions in 40 CFR 
86.1820-01 may eliminate precious

[[Page 19870]]

metal composition and catalyst grouping statistic when creating clean 
alternative fuel conversion durability groupings.
    (7) Conversion test groups/engine families for conversions to dual-
fuel or mixed-fuel vehicles/engines may not include vehicles/engines 
subject to different emissions standards unless applicable exhaust and 
OBD demonstrations are also conducted for the original fuel(s) 
demonstrating compliance with the most stringent standard represented 
in the test group/engine family. However the data generated from 
testing on the new fuel for dual-fuel or mixed/fuel test vehicles/
engines may be carried over to vehicles/engines that otherwise meet the 
conversion test group/engine family criteria and for which the test 
vehicle/engine data demonstrate compliance with the applicable vehicle/
engine standards. Clean alternative fuel conversion evaporative 
families for dual-fuel or mixed-fuel vehicles/engines cannot include 
vehicles/engines that were originally certified to different 
evaporative emissions standards unless evaporative/refueling 
demonstrations are also conducted for the original fuel(s) 
demonstrating compliance with the most stringent standard represented 
in the evaporative/refueling family.
    (8) You must conduct all exhaust and all evaporative and refueling 
emissions testing with a worst-case vehicle/engine to show that the 
conversion test group/engine family complies with exhaust and 
evaporative/refueling emission standards, based on the certification 
procedures such as those specified in 40 CFR part 86, subparts A, B, 
and S and 40 CFR part 1065.
    (9) OBD requirements. (i) The OBD system must properly detect and 
identify malfunctions in all monitored emission-related powertrain 
systems or components including any new monitoring capability necessary 
to identify potential emission problems associated with the new fuel. 
These include but are not limited to: Fuel trim lean and rich monitors, 
catalyst deterioration monitors, engine misfire monitors, oxygen sensor 
deterioration monitors, EGR system monitors, if applicable, and vapor 
leak monitors, if applicable. No original OBD system monitor that is 
still applicable to the vehicle/engine may be aliased, removed, 
bypassed, or turned-off. No MILs shall be illuminated after the 
conversion. Readiness flags must be properly set for all monitors that 
identify any malfunction for all monitored components.
    (ii) Subsequent to the vehicle/engine fuel conversion, you must 
clear all OBD codes and reset all OBD monitors to not-ready status 
using an OBD scan tool appropriate for the OBD system in the vehicle/
engine in question. You must operate the vehicle/engine with the new 
fuel on representative road operation or chassis dynamometer/engine 
dynamometer testing cycles to satisfy the monitors' enabling criteria. 
When all monitors have reset to a ready status, you must submit an OBD 
scan tool report showing that with the vehicle/engine operating in the 
key-on/engine-on mode, all supported monitors have reset to a ready 
status and no emission related ``pending'' (or potential) or 
``confirmed'' (or MIL-on) diagnostic trouble codes (DTCs) have been 
set. The MIL must not be commanded ``On'' or be illuminated. A MIL 
check must also be conducted in a key-on/engine-off mode to verify that 
the MIL is functioning properly. You must include the VIN/EIN number of 
the test vehicle/engine. If necessary, the OEM evaporative emission 
readiness monitor may remain unset for dedicated gaseous fuel 
conversion systems.
    (iii) In addition to conducting OBD testing described in this 
paragraph (b)(9), you must submit to EPA the following statement of 
compliance, if the OEM vehicles/engines were required to be OBD 
equipped. The test group/engine family converted to an alternative fuel 
has fully functional OBD systems and therefore meets the OBD 
requirements such as those specified in 40 CFR 86, subparts A and S 
when operating on the alternative fuel.
    (10) You must notify us by electronic submission in a format 
specified by the Administrator with all required documentation. The 
following must be submitted:
    (i) You must describe how your conversion system qualifies as a 
clean alternative fuel conversion. You must include emission test 
results from the required exhaust, evaporative emissions, and OBD 
testing, applicable exhaust and evaporative emissions standards and 
deterioration factors. You must also include a description of how the 
test vehicle/engine selected qualifies as a worst-case vehicle/engine 
under 40 CFR 86.1828-10 or 40 CFR 86.096-24(b)(2) through (b)(3) as 
applicable.
    (ii) You must describe the group of vehicles/engines (conversion 
test group/conversion engine family) that are covered by your 
notification based on the criteria specified in paragraph (b)(1) or 
(b)(2) of this section.
    (iii) In lieu of specific test data, you may submit the following 
attestations for the appropriate statements of compliance, if you have 
sufficient basis to prove the statement is valid.
    (A) The test group/engine family converted to an alternative fuel 
has properly exercised the optional and applicable statements of 
compliance or waivers in the certification regulations such as those 
specified in 40 CFR part 86, subparts A, B, and S and 40 CFR part 1065. 
Attest to each statement or waiver in your notification.
    (B) The test group/engine family converted to dual-fuel or mixed-
fuel operation retains all the OEM fuel system, engine calibration, and 
emission control system functionality when operating on the fuel with 
which the vehicle/engine was originally certified.
    (C) The test group/engine family converted to dual-fuel or mixed-
fuel operation retains all the functionality of the OEM OBD system (if 
the OEM vehicles/engines were required to be OBD equipped) when 
operating on the fuel for which the vehicle/engine was originally 
certified.
    (D) The test group/engine family converted to dual-fuel or mixed-
fuel operation properly purges hydrocarbon vapor from the evaporative 
emission canister when the vehicle/engine is operating on the 
alternative fuel.
    (iv) Include any other information as the Administrator may deem 
appropriate to establish that the conversion system is for the purpose 
of conversion to a clean alternative fuel and meets applicable emission 
standards.
    (11) [Reserved]
    (12) Your exemption from the prohibition on tampering remains valid 
for the applicable conversion test group/engine family and/or 
evaporative/refueling family, as long as the conditions under which you 
previously complied remain unchanged, such as small volume manufacturer 
or qualified small volume test group/engine family status. Your 
exemption from tampering is valid only if the conversion is installed 
on the OEM test groups/engine families and/or evaporative emissions/
refueling families listed on the notification. For example, if you have 
complied properly with the provisions in this section in calendar year 
2011 for converting a model year 2006 OEM test group/evaporative/
refueling family, your exemption from tampering continues to apply for 
the conversion of the same model year 2006 OEM test group/evaporative/
refueling family as long as the conditions under which the notification 
was submitted remain unchanged.
    (13) Conversion systems must be properly installed and adjusted 
such that the vehicle/engine operates consistent with the principles of 
good

[[Page 19871]]

engineering judgment and in accordance with all applicable regulations.

Sec.  85.520  Exemption provisions for outside useful life vehicles/
engines.

    (a) You are exempted from the tampering prohibition with respect to 
outside useful life vehicles/engines if you properly document and 
notify EPA that the conversion system satisfies all the provisions in 
this section; you meet the labeling requirements in Sec.  85.530 before 
you sell, import or otherwise facilitate the use of a clean alternative 
fuel conversion system; and you meet the applicable requirements in 
Sec.  85.535. You may also meet the requirements under this section by 
complying with the provisions in Sec.  85.515.
    (b) Documenting and notifying EPA under this section includes the 
following provisions:
    (1) You must notify us as described in this section.
    (2) Conversion test groups, evaporative/refueling families, and 
conversion engine families may be the same as those allowed for the 
intermediate age vehicle/engine program in Sec.  85.515(b)(1) and (2).
    (3) You must use good engineering judgment to specify, use, and 
assemble fuel system components and other hardware and software that 
are properly designed and matched for the vehicles/engines in which 
they will be installed. Good engineering judgment also dictates that 
any testing or data used to satisfy demonstration requirements be 
generated at a quality laboratory that follows good laboratory 
practices and that is capable of performing official EPA emission 
tests.
    (4) OBD requirements. (i) The OBD system must properly detect and 
identify malfunctions in all monitored emission-related powertrain 
systems or components including any new monitoring capability necessary 
to identify potential emission problems associated with the new fuel. 
These include but are not limited to: Fuel trim lean and rich monitors, 
catalyst deterioration monitors, engine misfire monitors, oxygen sensor 
deterioration monitors, EGR system monitors, if applicable, and vapor 
leak monitors, if applicable. No original OBD system monitor that is 
still applicable to the vehicle/engine may be aliased, removed, 
bypassed, or turned-off. No MILs shall be illuminated after the 
conversion. Readiness flags must be properly set for all monitors that 
identify any malfunction for all monitored components.
    (ii) Subsequent to the vehicle/engine fuel conversion, you must 
clear all OBD codes and reset all OBD monitors to not-ready status 
using an OBD scan tool appropriate for the OBD system in the vehicle/
engine in question. You must operate the vehicle/engine with the new 
fuel on representative road operation or chassis dynamometer/engine 
dynamometer testing cycles to satisfy the monitors' enabling criteria. 
When all monitors have reset to a ready status, you must submit an OBD 
scan tool report showing that with the vehicle/engine operating in the 
key-on/engine-on mode, all supported monitors have reset to a ready 
status and no emission related ``pending'' (or potential) or 
``confirmed'' (or MIL-on) diagnostic trouble codes (DTCs) have been 
stored. The MIL must not be commanded ``On'' or be illuminated. A MIL 
check must also be conducted in a key-on/engine-off mode to verify that 
the MIL is functioning properly. You must include the VIN/EIN number of 
the test vehicle/engine. If necessary, the OEM evaporative emission 
readiness monitor may remain unset for dedicated gaseous fuel 
conversion systems.
    (iii) In addition to conducting OBD testing described in this 
paragraph (b)(4), you must submit to EPA the following statement of 
compliance, if the OEM vehicles/engines were required to be OBD 
equipped. The test group/engine family converted to an alternative fuel 
has fully functional OBD systems and therefore meets the OBD 
requirements such as those specified in 40 CFR 86, subparts A and S 
when operating on the alternative fuel.
    (5) Conversion test groups/engine families for conversions to dual-
fuel or mixed-fuel vehicles/engines may not include vehicles/engines 
subject to different emissions standards unless applicable exhaust and 
OBD demonstrations are also conducted for the original fuel(s) 
demonstrating compliance with the most stringent standard represented 
in the test group. However the data generated from testing on the new 
fuel for dual-fuel or mixed-fuel test vehicles/engines may be carried 
over to vehicles/engines that otherwise meet the conversion test group/
engine family criteria and for which the test vehicle/engine data 
demonstrate compliance with the applicable vehicle/engine standards. 
Clean alternative fuel conversion evaporative families for dual-fuel or 
mixed-fuel vehicles/engines cannot include vehicles/engines that were 
originally certified to different evaporative emissions standards.
    (6) You must notify us by electronic submission in a format 
specified by the Administrator with all required documentation. The 
following must be submitted.
    (i) You must describe how your conversion system complies with the 
good engineering judgment criteria in Sec.  85.520(b)(3) and/or other 
requirements under this subpart or other applicable subparts such that 
the conversion system qualifies as a clean alternative fuel conversion. 
The submission must provide a level of technical detail sufficient for 
EPA to confirm the conversion system's ability to maintain or improve 
on emission levels in a worst case vehicle/engine. The submission of 
technical information must include a complete characterization of 
exhaust and evaporative emissions control strategies, the fuel delivery 
system, durability, and specifications related to OBD system 
functionality. You must present detailed information to confirm the 
durability of all relevant new and existing components and to explain 
why the conversion system will not harm the emission control system or 
degrade the emissions. EPA may ask you to supply additional 
information, including test data, to support the claim that the 
conversion system does not increase emissions and involves good 
engineering judgment that is being applied for purposes of conversion 
to a clean alternative fuel.
    (ii) You must describe the group of vehicles/engines (conversion 
test group/conversion engine family) that is covered by your 
notification based on the criteria specified in paragraph (b)(2) of 
this section.
    (iii) In lieu of specific test data, you may submit the following 
attestations for the appropriate statements of compliance, if you have 
sufficient basis to prove the statement is valid.
    (A) The test group/engine family converted to an alternative fuel 
has properly exercised the optional and applicable statements of 
compliance or waivers in the certification regulations such as those 
specified in 40 CFR part 86, subparts A, B, and S and 40 CFR part 1065. 
Attest to each statement or waiver in your notification.
    (B) The test group/engine family converted to dual-fuel or mixed-
fuel operation retains all the OEM fuel system, engine calibration, and 
emission control system functionality when operating on the fuel with 
which the vehicle/engine was originally certified.
    (C) The test group/engine family converted to dual-fuel or mixed-
fuel operation retains all the functionality of the OEM OBD system (if 
the OEM vehicles/engines were required to be OBD equipped) when 
operating on the fuel with which the vehicle/engine was originally 
certified.
    (D) The test group/engine family converted to dual-fuel or mixed-
fuel

[[Page 19872]]

operation properly purges hydrocarbon vapor from the evaporative 
emission canister when the vehicle/engine is operating on the 
alternative fuel.
    (E) The test group/engine family converted to an alternative fuel 
uses fueling systems, evaporative emission control systems, and engine 
powertrain components that are compatible with the alternative fuel and 
designed with the principles of good engineering judgment.
    (iv) You must include any other information as the Administrator 
may deem appropriate, which may include test data, to establish the 
conversion system is for the purpose of conversion to a clean 
alternative fuel.
    (7) Conversion systems must be properly installed and adjusted such 
that the vehicle/engine operates consistent with the principles of good 
engineering judgment and in accordance with all applicable regulations.
    (8) EPA may ask for any documentation and/or ask you to conduct 
emission testing to demonstrate the conversion is for the purpose of a 
clean alternative fuel.

Sec.  85.524  Legacy standards.

    Prior to April 8, 2011, the following emission standards applied 
for conversions of vehicles/engines with an original model year of 1992 
or earlier:
    (a) Exhaust hydrocarbons. Light-duty vehicles must meet the Tier 0 
hydrocarbon standard specified in 40 CFR 86.094-8. Light-duty trucks 
must meet the Tier 0 hydrocarbon standard specified in 40 CFR 86.094-9. 
Otto-cycle heavy-duty engines must meet the hydrocarbon standard 
specified in 40 CFR 86.096-10. Diesel heavy-duty engines must meet the 
hydrocarbon standard in 40 CFR 86.096-11.
    (b) CO, NOX and particulate matter. Vehicles/engines 
must meet the CO, NOX, and particulate matter emission 
standards that applied for the vehicle's/engine's original model year. 
If the engine was certified with a Family Emission Limit, as noted on 
the emission control information label, the modified engine may not 
exceed this Family Emission Limit.
    (c) Evaporative hydrocarbons. Vehicles/engines must meet the 
evaporative hydrocarbon emission standards that applied for the 
vehicle's/engine's original model year.

Sec.  85.525  Applicable standards.

    To qualify for an exemption from the tampering prohibition, 
vehicles/engines that have been converted to operate on a different 
fuel must meet emission standards and related requirements as follows:
    (a) The modified vehicle/engine must meet the requirements that 
applied for the OEM vehicle/engine, or the most stringent OEM vehicle/
engine standards in any allowable grouping. Fleet average standards do 
not apply unless clean alternative fuel conversions are specifically 
listed as subject to the standards.
    (1) If the vehicle/engine was certified with a Family Emission 
Limit for NOX, NOX+HC, or particulate matter, as 
noted on the vehicle/engine emission control information label, the 
modified vehicle/engine may not exceed this Family Emission Limit.
    (2) Compliance with light-duty vehicle greenhouse gas emission 
standards is demonstrated by complying with the N2O and 
CH4 standards and provisions set forth in 40 CFR 86.1818-
12(f)(1) and the in-use CO2 exhaust emission standard set 
forth in 40 CFR 86.1818-12(d) as determined by the OEM for the 
subconfiguration that is identical to the fuel conversion emission data 
vehicle (EDV). If the OEM complied with the light-duty greenhouse gas 
standards using the fleet averaging option for nitrous oxide 
(N2O) and methane (CH4), as allowed under 40 CFR 
86.1818-12(f)(2), the calculations of the carbon-related exhaust 
emissions require the input of grams/mile values for N2O and 
CH4. Compliance with N2O and CH4 
exhaust emission standards may be optionally demonstrated by following 
the same procedures set forth in 40 CFR 86.1818-12(f)(2), except that 
the carbon-related exhaust emission value determined for the fuel 
conversion EDV must comply with the in-use CO2 exhaust 
emission standard set forth in 40 CFR 86.1818-12(d) and determined by 
the OEM for the subconfiguration that is identical to the fuel 
conversion EDV.
    (3) Conversion systems for engines that would have qualified for 
chassis certification at the time of OEM certification may use those 
procedures, even if the OEM did not. Conversion manufacturers choosing 
this option must designate test groups using the appropriate criteria 
as described in this subpart and meet all vehicle chassis certification 
requirements set forth in 40 CFR part 86, subpart S.
    (b) [Reserved]

Sec.  85.530  Vehicle/engine labels and packaging labels.

    (a) The following labeling requirements apply for clean alternative 
fuel conversion manufacturers to qualify for an exemption from the 
tampering prohibition:
    (1) You must make a supplemental emission control information label 
for each clean alternative fuel conversion system.
    (2) On the supplemental label you must identify the OEM vehicles/
engines for which you authorize the use of your clean alternative fuel 
conversion system, consistent with the requirements of this subpart. 
You may do this by identifying the OEM test group/engine family names 
and original model year to which your conversion is applicable as 
described in Sec.  85.510(b)(1) or Sec.  85.510(b)(2), Sec.  
85.515(b)(10)(ii), or Sec.  85.520(b)(6)(ii). Your commercial packaging 
materials must also clearly describe this information.
    (3) You must include the following on the supplemental label:
    (i) You must state that the vehicle/engine has been equipped with a 
clean alternative fuel conversion system designed to allow it to 
operate on a fuel other than the fuel it was originally certified to 
operate on. Identify the fuel or fuels the vehicle/engine is designed 
to use and provide a unique conversion test group/conversion engine 
family name and conversion evaporative/refueling emissions family name.
    (ii) You must identify your corporate name, address, and telephone 
number.
    (iii) You must include one of the following statements that 
describes how you comply under this subpart and any applicable mileage 
or age restrictions due to how compliance was demonstrated:
    (A) ``This clean alternative fuel conversion system has been 
certified to meet EPA emission standards.''
    (B) ``Testing has shown that this clean alternative fuel conversion 
system meets EPA emission standards under the intermediate age vehicle/
engine program.''
    (C) ``This conversion system is for the purpose of use of a clean 
alternative fuel in accordance with EPA regulations and is applicable 
only to vehicles/engines that are older than 11 years or 120,000 
miles.'' (Values must be adjusted to reflect OEM useful life; useful 
life in hours should be added, if applicable).
    (iv) State the following: ``This conversion was manufactured and 
installed consistent with the principles of good engineering judgment 
and all U.S. EPA regulations.''
    (4) On the supplemental label, you must identify any original parts 
that will be removed for the conversion and any associated changes in 
maintenance specifications.
    (5) On the supplemental label, you must include the date of 
conversion and the mileage of the vehicle/engine at the time of 
conversion. Include the hours of operation instead of mileage, if 
applicable.

[[Page 19873]]

    (b) The supplemental emission control information label shall be 
placed in a permanent manner adjacent to the vehicle's/engine's 
original emission control information label if possible. If it is 
impractical to place the supplemental label adjacent to the original 
label, it must be placed where it will be seen by a person viewing the 
original label on a part that is needed for normal operation and does 
not normally need replacement. If the supplemental label information 
cannot fit on one label, the information can be logically split among 
two labels that are both near the original VECI or engine label.
    (c) All information provided on clean alternative fuel conversion 
system packaging must be consistent with the required vehicle/engine 
labeling information.
    (d) Examples of all labeling and warranty information must be 
provided as part of the application for certification or notification 
process.
    (e) The marketing material and label information for a given 
conversion system must be consistent with the conversion manufacturer's 
demonstration/notification to EPA for that system.

Sec.  85.535  Liability, recordkeeping, and end of year reporting.

    (a) Clean alternative fuel conversion manufacturers are liable for 
in-use performance of their conversion systems as outlined in this 
part.
    (b) We may conduct or require testing on any vehicles/engines as 
allowed under the Clean Air Act. This may involve confirmatory testing, 
in-use testing, and/or selective enforcement audits for clean 
alternative fuel conversion systems. Dual-fuel vehicles/engines may be 
tested when operating on any of the fuels. Mixed-fuel vehicles/engines 
may be tested on any fuel blend ratio that is expected to occur during 
normal operation.
    (c) Except for an application for certification, your actions to 
document compliance and notify us under this subpart are not a request 
for our approval. We generally do not give any formal approval short of 
issuing a certificate of conformity. However, if we learn that your 
actions fall short of full compliance with applicable requirements we 
may notify you that you have not met applicable requirements or that we 
need more information to make that determination. The exemption from 
the tampering prohibition may be void ab initio if the conversion 
manufacturer has not satisfied all of the applicable provisions of this 
subpart even if a submission to EPA has been made and the conversion 
system appears on EPA's publicly available list of compliant systems.
    (d) Clean alternative fuel conversion manufacturers must accept in-
use liability for warranty, are subject to defect reporting 
requirements, and may be required to recall any parts or systems for 
which the failure can be traced to the conversion, regardless of 
whether installation was proper or improper. The OEM shall remain 
liable for the performance of any parts or systems which retain their 
original function following conversion and are unaffected by the 
conversion.
    (e) Clean alternative fuel conversion manufacturers must keep 
sufficient records for five years from the date of notification or 
certification, or the date of the last conversion installation, 
whichever is later, to show that they meet applicable requirements.
    (f) Clean alternative fuel conversion manufacturers must submit an 
end of the year sales report to EPA describing the number of clean 
alternative fuel conversions by fuel type(s) and vehicle test group/
engine family by January 31 of the following year. The number of 
conversions is the sum of the calendar year intermediate age 
conversions, outside useful life conversions, and the same conversion 
model year certified clean alternative fuel conversions. The number of 
conversions will be added to any other vehicle and engine sales 
accounted for using 40 CFR 86.1838-01 or 40 CFR 86.098-14 as 
appropriate to determine small volume manufacturer or qualified small 
volume test group/engine family status.
    (g) Conversion manufacturers who market conversion systems for use 
on vehicles/engines other than the test group/engine families and 
evaporative/refueling families covered by the compliance demonstration 
and notification may be liable for a tampering violation for each 
vehicle/engine to which conversion system is misapplied.

PART 86--CONTROL OF EMISSIONS FROM NEW AND IN-USE HIGHWAY VEHICLES 
AND ENGINES

0
3. The authority citation for 40 CFR part 86 continues to read as 
follows:

    Authority: 42 U.S.C. 7401-7671q.

Subpart S--[Amended]

0
4. Section 86.1801-01 is amended by revising paragraph (b) and 
paragraphs (c)(4) and (c)(5) to read as follows:

Sec.  86.1801-01  Applicability.

* * * * *
    (b) Clean alternative fuel conversions. The provisions of the 
subpart apply to clean alternative fuel conversions as defined in 40 
CFR 85.502, of all model year light-duty vehicles, light-duty trucks, 
medium duty passenger vehicles, and complete Otto-cycle heavy-duty 
vehicles.
    (c) * * *
    (4) Upon preapproval by the Administrator, a manufacturer may 
optionally certify a clean alternative fuel conversion of a complete 
heavy-duty vehicle greater than 10,000 pounds Gross Vehicle Weight 
Rating and of 14,000 pounds Gross Vehicle Weight Rating or less under 
the heavy-duty engine or heavy-duty vehicle provisions of subpart A of 
this part. Such preapproval will be granted only upon demonstration 
that chassis-based certification would be infeasible or unreasonable 
for the manufacturer to perform.
    (5) A manufacturer may optionally certify a clean alternative fuel 
conversion of a complete heavy-duty vehicle greater than 10,000 pounds 
Gross Vehicle Weight Rating and of 14,000 pounds Gross Vehicle Weight 
Rating or less under the heavy-duty engine or heavy-duty vehicle 
provisions of subpart A of this part without advance approval from the 
Administrator if the vehicle was originally certified to the heavy-duty 
engine or heavy-duty vehicle provisions of subpart A of this part.
* * * * *

0
5. Section 86.1801-12 is amended by revising paragraph (b) and 
paragraphs (c)(4) and (c)(5) to read as follows:

Sec.  86.1801-12  Applicability.

* * * * *
    (b) Clean alternative fuel conversions. The provisions of the 
subpart apply to clean alternative fuel conversions as defined in 40 
CFR 85.502, of all model year light-duty vehicles, light-duty trucks, 
medium duty passenger vehicles, and complete Otto-cycle heavy-duty 
vehicles.
    (c) * * *
    (4) Upon preapproval by the Administrator, a manufacturer may 
optionally certify a clean alternative fuel conversion of a complete 
heavy-duty vehicle greater than 10,000 pounds Gross Vehicle Weight 
Rating and of 14,000 pounds Gross Vehicle Weight Rating or less under 
the heavy-duty engine or heavy-duty vehicle provisions of subpart A of 
this part. Such preapproval will be granted only upon demonstration 
that chassis-based certification would be infeasible or unreasonable 
for the manufacturer to perform.
    (5) A manufacturer may optionally certify a clean alternative fuel

[[Page 19874]]

conversion of a complete heavy-duty vehicle greater than 10,000 pounds 
Gross Vehicle Weight Rating and of 14,000 pounds Gross Vehicle Weight 
Rating or less under the heavy-duty engine or heavy-duty vehicle 
provisions of subpart A of this part without advance approval from the 
Administrator if the vehicle was originally certified to the heavy-duty 
engine or heavy-duty vehicle provisions of subpart A of this part.
* * * * *

0
6. Section 86.1810-01 is amended by revising paragraph (p) to read as 
follows:

Sec.  86.1810-01  General standards; increase in emissions; unsafe 
conditions; waivers.

* * * * *
    (p) For Tier 2 and interim non-Tier 2 vehicles fueled by gasoline, 
diesel, natural gas, liquefied petroleum gas, or hydrogen, 
manufacturers may measure non-methane hydrocarbons (NMHC) in lieu of 
NMOG. Manufacturers must multiply NMHC measurements from gasoline 
vehicles by an adjustment factor of 1.04 before comparing with the NMOG 
standard to determine compliance with that standard. For vehicles fuel 
by natural gas, liquefied petroleum gas, hydrogen manufacturers must 
propose an adjustment factor to adjust NMHC results to properly 
represent NMOG results. Such factors must be based upon comparative 
testing of NMOG and NMHC emissions and be approved in advance by the 
Administrator.

0
7. Section 86.1818-12 is amended by revising paragraph (a) to read as 
follows:

Sec.  86.1818-12  Greenhouse gas emission standards for light-duty 
vehicles, light-duty trucks, and medium-duty passenger vehicles.

    (a) Applicability. This section contains standards and other 
regulations applicable to the emission of the air pollutant defined as 
the aggregate group of six greenhouse gases: Carbon dioxide, nitrous 
oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur 
hexafluoride. This section applies to 2012 and later model year LDVs, 
LDTs and MDPVs, including multi-fuel vehicles, vehicles fueled with 
alternative fuels, hybrid electric vehicles, plug-in hybrid electric 
vehicles, electric vehicles, and fuel cell vehicles. Unless otherwise 
specified, multi-fuel vehicles must comply with all requirements 
established for each consumed fuel. The provisions of this section, 
except paragraph (c), also apply to clean alternative fuel conversions 
as defined in 40 CFR 85.502, of all model year light-duty vehicles, 
light-duty trucks, and medium-duty passenger vehicles. Manufacturers 
that qualify as a small business according to the requirements of Sec.  
86.1801-12(j) are exempt from the emission standards in this section. 
Manufacturers that have submitted a declaration for a model year 
according to the requirements of Sec.  86.1801-12(k) for which approval 
has been granted by the Administrator are conditionally exempt from the 
emission standards in paragraphs (c) through (e) of this section for 
the approved model year.
* * * * *

0
8. Section 86.1829-01 is amended by revising paragraphs (b)(1)(iii)(E) 
and (F), and (b)(2)(i) to read as follows:

Sec.  86.1829-01  Durability and emission testing requirements; 
waivers.

* * * * *
    (b) * * *
    (1) * * *
    (iii) * * *
    (E) In lieu of testing a gasoline, diesel, natural gas, liquefied 
petroleum gas, or hydrogen fueled Tier 2 or interim non-Tier 2 vehicle 
for formaldehyde emissions when such vehicles are certified based upon 
NMHC emissions, a manufacturer may provide a statement in its 
application for certification that such vehicles comply with the 
applicable standards. Such a statement must be based on previous 
emission tests, development tests, or other appropriate information.
    (F) In lieu of testing a petroleum-, natural gas-, liquefied 
petroleum gas-, or hydrogen-fueled heavy-duty vehicle for formaldehyde 
emissions for certification, a manufacturer may provide a statement in 
its application for certification that such vehicles comply with the 
applicable standards. Such a statement must be based on previous 
emission tests, development tests, or other appropriate information.
    (2) * * *
    (i) Testing at low altitude. One EDV in each evaporative/refueling 
family and evaporative/refueling emission control system combination 
must be tested in accordance with the evaporative/refueling test 
procedure requirement of subpart B of this part. The configuration of 
the EDV will be determined under the provisions of Sec.  86.1828-01. 
The EDV must also be tested for exhaust emission compliance using the 
FTP and SFTP procedures of subpart B of this part. In lieu of testing 
natural gas, liquefied petroleum gas, or hydrogen fueled vehicles to 
demonstrate compliance with the evaporative emission standards 
specified in Sec.  86.1811-04(e), a manufacturer may provide a 
statement in its application for certification that, based on the 
manufacturer's engineering evaluation of appropriate testing and/or 
design parameters, all light-duty vehicles, light-duty trucks, and 
complete heavy-duty vehicles comply with applicable emission standards.
* * * * *

0
9. Section 86.1864-10 is amended by removing and reserving paragraph 
(a)(3) to read as follows.

Sec.  86.1864-10  How to comply with the fleet average cold temperature 
NMHC standards.

    (a) * * *
    (3) [Reserved]
* * * * *

0
10. Section 86.1865-12 is amended by removing and reserving paragraph 
(a)(1)(ii) to read as follows.

Sec.  86.1865-12  How to comply with the fleet average CO2 
standards.

    (a) * * *
    (1) * * *
    (ii) [Reserved]
* * * * *
[FR Doc. 2011-7910 Filed 4-7-11; 8:45 am]
BILLING CODE 6560-50-P
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