[Federal Register Volume 79, Number 25 (Thursday, February 6, 2014)]
[Rules and Regulations]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-02612]
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 1039, 1042, and 1068
RIN 2060-AR48; 2127-AL31
Nonroad Technical Amendments
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
SUMMARY: EPA is adopting amendments to the technical hardship
provisions under the Transition Program for Equipment Manufacturers
related to the Tier 4 standards for nonroad diesel engines, and to the
replacement engine exemption generally applicable to new nonroad
engines. These provisions may have minor impacts on the costs and
emission reductions of the underlying regulatory programs amended in
this action, though in most cases these are simple technical
amendments. For those provisions that may have a minor impact on the
costs or benefits of the amended regulatory program, any potential
impacts would be small and we have not attempted to quantify the
DATES: This final rule is effective on March 10, 2014, except for Sec.
1039.625(m) which will be effective on February 6, 2014.
FOR FURTHER INFORMATION CONTACT: Alan Stout, Environmental Protection
Agency, Office of Transportation and Air Quality, Assessment and
Standards Division, 2000 Traverwood Drive, Ann Arbor, Michigan 48105;
telephone number: (734) 214-4805; email address: email@example.com.
This action affects companies that manufacture or remanufacture
nonroad engines and equipment in the United States. Regulated
categories and entities include the following:
Category NAICS Code \a\ Examples of potentially affected entities
Industry....................... 333618 Manufacturers of new nonroad engines.
Industry....................... 333111 Manufacturers of farm machinery.
Industry....................... 333120 Manufacturers of construction equipment.
Industry....................... 336611 Manufacturers of marine vessels.
Industry....................... 811310 Engine repair, remanufacture, and maintenance.
\a\ North American Industry Classification System (NAICS)
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely covered by these rules.
This table lists the types of entities that the agencies are aware may
be regulated by this action. Other types of entities not listed in the
table could also be regulated. To determine whether your activities are
regulated by this action, you should carefully examine the
applicability criteria in the referenced regulations. You may direct
questions regarding the applicability of this action to the persons
listed in the preceding FOR FURTHER INFORMATION CONTACT section.
EPA published a direct final rule on June 17, 2013, to amend
various aspects of the regulations that apply for heavy-duty highway
engines and vehicles and for nonroad engines and equipment (78 FR
36370). For most of those changes, we did not receive adverse comment
and most of the amendments became effective as published. We received
adverse comments on certain amendments, which led us to withdraw those
regulatory changes in a notice published August 16, 2013 (78 FR 49963).
On the same day that we published the direct final rule, we
published a companion proposed rule that included all the content of
the direct final rule (78 FR 36135). This final rule follows up on two
broad areas from the proposed rule that were the subject of adverse
comment--the replacement engine exemption for nonroad engines, and the
technical hardship and related provisions for nonroad diesel engine and
equipment manufacturers transitioning to Tier 4 compliance.
II. Replacement Engine Exemption
In 1996, EPA adopted a provision allowing manufacturers in limited
circumstances to produce new engines for replacing failed engines that
are exempt from the requirement to be certified to current emission
standards (61 FR 58102, November 12, 1996). With this approach,
manufacturers have been able to make new, exempt engines in cases where
engines certified to current standards do not have the physical or
performance characteristics needed to power equipment that was
originally equipped with an older engine. Without this provision, some
equipment owners would have been forced to prematurely scrap otherwise
working equipment (sometimes worth millions of dollars) because no
engine meeting current emission standards could be adapted for
installation within the space occupied by the original engine.
EPA later amended the replacement engine exemption provisions to
address complications related to producing partially complete engines
for replacement purposes and to address the need to produce and sell
replacement engines such that they would be available to operators with
a critical need to avoid extended downtime in the case of engine
failure (73 FR 59034, October 8, 2008). These revisions allowed
manufacturers to sell a limited number of new, exempt replacement
engines without taking the steps that would otherwise be required to
document the need for the exemption and to arrange for the proper
disposition of the old engine. The amendments also included anti-
circumvention provisions to clarify the overall purpose of the
replacement engine exemption in an attempt to prevent manufacturers and
operators from using exempted engines in ways that were unnecessary
and/or detrimental to the environment.
In the June 2013 direct final rule and companion proposed rule, EPA
amended these provisions to remove the overly restrictive anti-
circumvention provisions and replaced them with a variety of more
specific conditions and requirements that were intended to more
effectively ensure that the exemption would be used appropriately. We
received adverse comment on some of the most recent amendments in Sec.
1068.240(b). Based on these comments, we withdrew all the amendments to
Sec. 1068.240(a) through (d), leaving intact the change to remove the
anti-circumvention provisions in Sec. 1068.240(g), with the
understanding that we would revisit all the intended changes from Sec.
1068.240(a) through (d) in this subsequent final rule.
EPA continues to believe that new, exempt replacement engines
should be used only in cases where a currently certified engine cannot
practically be installed to power the old equipment. EPA believes the
proposed regulatory language in Sec. 1068.240 serves this purpose
without the unintended consequences described above associated with the
anti-circumvention provisions. EPA expects manufacturers and operators
following the regulations to continue to use the exemption provisions
appropriately and not for the purpose of circumventing the emission
standards. EPA is adding language to explicitly limit this provision to
equipment that has been in service 40 years or less (at the point of
installation) so that manufacturers and operators do not use this
provision to keep older dirtier equipment in operation beyond its
normal lifetime by continually using new, exempt engines to replace old
engines. EPA has adopted a similar restriction for stationary engines
under 40 CFR 60.4210(i), except that the maximum equipment age is 15
years for stationary engines. EPA will continue to monitor compliance
with the amended exemption provisions and will consider any appropriate
changes to the regulation in the future to ensure that the exemption is
properly used toward this purpose. This 40-year limit does not apply
for marine diesel engines, since those engines are subject to separate
replacement engine provisions.
We included a 25-year limit in the proposed rule, but four
commenters weighed in on this age limit. The California Air Resources
Board stated that it did not oppose the proposal and appreciated the
intent of the provision to ensure against older technology engines
being available indefinitely. However, CARB did not believe it was
necessary to incorporate the limit into
the California program because the state's in-use programs are expected
to require fleet modernization for most nonroad applications well in
advance of the proposed 25 year cut-off. The Northeast States for
Coordinated In-Use Management supported the 25-year limit as a
reasonable measure to address circumvention concerns. The National
Groundwater Association objected to the 25-year limit, noting that
their members have thousands of powered drilling units with an expected
lifetime of 50 years or more. They stated that limiting access to the
replacement engine exemption and thereby requiring operators to
prematurely buy expensive new equipment would cause significant
economic hardship. They acknowledged that a 40-year limit for
groundwater drilling applications would be more appropriate. Case New
Holland also described the potential for significant adverse impacts if
the 25-year limit were applied to agricultural equipment; they favored
simply removing the age specification but also stated that changing to
a 40-year limit would provide substantial relief. As a result, we are
replacing the proposed 25-year limit with a 40-year limit.
The ``tracked option'' specified in Sec. 1068.240(b) also includes
an additional step to qualify for the replacement engine exemption for
equipment not experiencing premature engine failure. In particular,
manufacturers would need to make a determination that the replacement
engine is designed with the greatest degree of emission control that is
available for the particular application (i.e., ``cleanest
available''). For example, consider an engine being replaced that was
built before the Tier 1 standards started to apply and that engines of
its power category are currently subject to Tier 4 standards. In
addition to the exemption provision requiring the manufacturer to
determine that a Tier 4 engine does not have the necessary physical or
performance characteristics, the manufacturer must also consider
whether any Tier 1, Tier 2, or Tier 3 engines are being produced with
the appropriate physical and performance characteristics for replacing
the old engine. If a Tier 3 engine is available with the appropriate
physical and performance characteristics for a given installation, Tier
1 and Tier 2 engines emitting at levels above the Tier 3 standards
would not qualify for an exemption for that equipment. This requirement
to use the cleanest available engine fits with the intent of the
amendments facilitating voluntary incentive programs involving
replacement engine upgrades toward the goal of reducing emissions from
in-use equipment, but without imposing a requirement that would involve
new technology development or impractical equipment design changes. A
provision similar to this has already been in place for marine diesel
engines in Sec. 1042.615. In the case of equipment experiencing
premature engine failure, we will continue to apply the simpler
requirement that the replacement engine must meet emission standards
that are the same as or better than the standards that applied to the
old engine. We received no adverse comment on this provision.
We are also revising the provisions related to the disposition of
the old engine in Sec. 1068.240(b). The engine manufacturer making the
exempt new replacement engine must take possession of the old engine or
confirm that it has been destroyed. Although this is not a new
requirement, we are including an additional new provision to explicitly
allow the re-use of the old engine block, but to limit such re-use.
Specifically, to be re-introduced into U.S. commerce, the old engine
must either meet current emission standards or qualify for an exemption
as if it were a new engine. For example, the old engine could be re-
used as a replacement engine for a different piece of equipment under
certain circumstances. Under this approach, an engine made with a used
engine block and any mix of new or used additional parts would be
treated in a consistent way. For example, the recycled replacement
engine would be subject to all the demonstrations and documentation
requirements of Sec. 1068.240(b), or it could alternatively count
toward the engine manufacturer's allowance to produce a limited number
of exempt replacement engines under Sec. 1068.240(c). For engines
covered by the ``tracked option'' under Sec. 1068.240(b) that are not
re-introduced into U.S. commerce, the engine manufacturer making the
new exempt engine must destroy the old engine or confirm that it has
been destroyed. We note that destroying an engine means altering it so
it can never be used again in any form as a working engine. However, we
believe manufacturers will rarely choose to destroy an engine that
could be remanufactured as a replacement engine under Sec. 1068.240.
North American Repower provided comments describing their objection
to the amendments related to the disposition of the engines being
replaced. Their comments focused primarily on their desire for a steady
source of old engine blocks to supply their remanufacturing activities.
However, their objection seems to be directed at the existing
restriction rather than the proposed flexibility regarding the
disposition of engine cores. The existing requirement for the engine
manufacturer to take possession of the old engine (or confirm that it
was destroyed) has never allowed replaced engines under the ``tracked
option'' in Sec. 1068.240(b) to be reused by other parties. This
restriction was put in place in the past because the ``tracked option''
does not limit the number of exempt replacement engines a manufacturer
may produce. Thus, it is important to restrict the re-use of these
replaced engines so this option cannot be used to significantly
increase the number of older-technology engines in use. To the extent
that the provision in question has any impact on the availability of
these engine cores, it can only make them more available. The revised
regulations explicitly allow for re-use of the replaced engines if they
are modified to meet current emission standards, or if they qualify for
exemptions that apply for new engines. For example, a manufacturer
taking possession of a replaced engine may remanufacture that engine in
a certified configuration, or they may sell it as an exempt replacement
engine if they take the steps and meet the conditions that apply under
Sec. 1068.240. The manufacturer may also sell the engine core to
another remanufacturing company under the provisions of Sec. 1068.262;
such a transaction was not specifically authorized under the previous
regulation. Additionally, we note that these provisions do not limit
the ability of remanufacturing companies to recover engine cores from
scrapped equipment or from engines replaced by used engines. Because of
limits on producing exempt new replacement engines, it is likely that
the number of these other engines will typically be much higher than
the number of engines replaced with new exempt replacement engines
under Sec. 1068.240(b) in any given year. We are finalizing these
provisions as proposed. Note that a more detailed discussion of North
American Repower's comments can be found in the docket for this
\1\ Response to Comments from North American Repower Regarding
Engine Core Recovery.'' EPA memo to Docket EPA-HQ-OAR-2012-0102 from
Alan Stout, January 10, 2014.
EPA is also adding some clarification to the replacement engine
regulations to address questions that have arisen, as well as making
the following changes that did not receive adverse comment:
Revising the labeling requirements to account for the
possibility of using a new replacement engine to replace a previously
exempted replacement engine. To the extent that the revised label
statement differs from that specified by California ARB, we would
expect to approve an adjusted statement that allows for a single, 50-
state label under Sec. 1068.201(c).
Adjusting the reporting deadline for untracked replacement
engines under Sec. 1068.240(c). This change would allow manufacturers
some time after the end of the calendar year to make the determinations
and to take the required steps to fulfill the tracking requirements for
replacement engines under Sec. 1068.240(b). Any engines for which
these steps and determinations are incomplete by the deadline for the
report would need to be counted as untracked replacement engines.
Further, to account for prevailing practices and typical timelines for
replacement engines, we are moving back the deadline for this annual
report from February 15 to March 31.
Adding language to allow manufacturers to redesignate
their exempt replacement engines before submitting the annual report.
The regulation already specifies that it is acceptable to qualify for a
tracked exemption under Sec. 1068.240(b), even if that wasn't the
original plan, as long as all the applicable conditions and
requirements are met. We are adding language to allow the converse as
well. Specifically, if manufacturers plan to use a tracked exemption,
but find in the end that they don't want to deal with the limitations
on what can be done with the old engine (or if any of the other
conditions or requirements are not met), they may count that as an
untracked exemption for that reporting period.
Revising Sec. 1068.240(c)(1) to specify that
manufacturers may base sales limits for the untracked option on total
U.S. production of certified and exempted engines together (including
Clarifying that the provisions in Sec. 1068.240(d)
related to partially complete engines also apply for ``current-tier''
replacement engines exempted under Sec. 1068.240(e).
Adding a statement to Sec. 1042.615 for marine diesel
engines to clarify our pre-determination that certified Tier 4 engines
do not have the appropriate physical and performance characteristics
for replacing older non-Tier 4 engines in marine vessels. This policy
was established in our final rule from June 30, 2008 (see 73 FR 37157).
III. Nonroad Diesel Engine Technical Hardship Program
EPA adopted Tier 4 standards for nonroad diesel engines under 40
CFR part 1039 in 2004 (69 FR 38958, June 29, 2004). To meet these
standards, engine manufacturers are pursuing development of advanced
technologies, including new approaches for exhaust aftertreatment.
Equipment manufacturers will need to modify their equipment designs to
accommodate these new engine technologies and the corresponding changes
to engine operating parameters (such as operating temperatures and heat
rejection rates). To provide flexibility for equipment manufacturers in
their efforts to respond to these engine design changes, the Tier 4
standards included the Transition Program for Equipment Manufacturers.
Flexibilities allowed under this program include delaying compliance
for small-volume equipment models for several years or using allowances
in the first year to manage the transition to the Tier 4 engines. While
a certain number of allowances are available to all companies, the
regulation provides additional relief for nonroad diesel equipment
manufacturers under certain limited circumstances we refer to as
``technical hardship''. EPA is amending this technical hardship program
to facilitate EPA granting exemptions to address certain hardship
circumstances that were not contemplated when the original 2004 final
rule was published.
The Transition Program for Equipment Manufacturers is intended to
allow nonroad equipment manufacturers wide discretion to manage their
product development timeline. Equipment manufacturers may comply either
based on a percent of their production (generally for high-volume
manufacturers, as described in Sec. 1039.625(b)(1)), or based on a
maximum number of exempted pieces of equipment (generally for low-
volume manufacturers, as described in Sec. 1039.625(b)(2)). At the
same time, the regulations include at Sec. 1039.625(m) an
acknowledgement that equipment manufacturers might face a wide range of
circumstances, including cases where engine manufacturers might be late
in providing compliant engines to nonintegrated equipment
manufacturers, such that the specified allowances are insufficient to
avoid a disruption in the equipment manufacturer's production schedule.
The technical hardship provision at Sec. 1039.625(m) allows EPA to
make a judgment that an equipment manufacturer that buys engines from
another company, through no fault of its own, needs additional
allowances to manage the transition to Tier 4 products. The regulation
as originally adopted specifies a maximum allowance of 150 percent of a
manufacturer's annual production (relative to Sec. 1039.625(b)(1)), or
a total of 1,100 allowances (relative to Sec. 1039.625(b)(2)). The
regulation also allows for economic hardship provisions under Sec.
1068.255; however, that eligibility depends on manufacturers showing
that their solvency is in jeopardy without relief. Economic hardship
therefore serves as a flexibility provision of last resort.
As the compliance dates for the Tier 4 standards approach,
equipment manufacturers have described scenarios where the technical
hardship provisions are too restrictive for EPA to address their
circumstances. For example, engine manufacturers have in some cases
delayed delivery of Tier 4 engines until six or even twelve months
after the Tier 4 standards start to apply, which is forcing equipment
manufacturers to use up all their allowances under Sec. 1039.625(b) in
the first year of the new standards. Some equipment manufacturers have
expressed the concern that engine manufacturers in some cases have
chosen to take advantage of these program allowances for their own
benefit, even though they were intended to provide relief to equipment
manufacturers. Not only have there been cases in which engine
manufacturers did not have certain engines ready for production when
required by the standards, but there have also been cases in which
engine manufactures had not provided prototype engines or even
dimensional drawings for certain engine models for equipment
manufacturers to use to redesign their equipment. Whether or not this
is the result of engine manufacturers acting in bad faith, it seems
clear that this questionable planning by engine manufacturers has
created the potential for significant hardship to some equipment
manufacturers. Although at this point the maximum number of additional
allowances available for EPA to grant under Sec. 1039.625(m) would
cover a good portion of the second year of the Tier 4 standards, we now
understand that this too may be inadequate to allow equipment
manufacturers to respond to the engine manufacturers' very late
deliveries of compliant engines.
In these cases, the maximum allowable relief under Sec.
1039.625(m) may be insufficient to allow equipment manufacturers to
transition to meeting Tier 4 requirements without disrupting their
ability to continue producing their equipment models. There have also
been cases where a company would meet the criteria to qualify for
consideration for technical hardship under Sec. 1039.625(m) except
that the regulation disallowed technical hardship relief for all
engines above 560 kW and provided only limited relief for engines above
37 kW. The regulation also provided only limited relief for companies
that are not small businesses. In these cases, no additional relief was
available under Sec. 1039.625(m), which again would leave equipment
manufacturers unable to continue producing their equipment models. To
address these circumstances, we proposed to amend the Transition
Program for Equipment Manufacturers in three ways to address these
First, we proposed to remove some of the qualifying criteria so
that any non-vertically integrated equipment manufacturer may apply for
technical hardship relief under Sec. 1039.625(m) for any size engine,
rather than limiting the technical hardship relief to small businesses
and to engines within certain power categories. We believe it is more
appropriate to rely on our discretion to evaluate each hardship
application on its merits rather than automatically precluding hardship
relief based on certain characteristics of the engine or the company.
If hardship relief is not appropriate because of an engine's power
rating or a company's size or financial standing, we would not approve
such a request.
Second, we initially removed the maximum number of allowances we
can approve under Sec. 1039.625(m). We also removed the deadlines for
exercising those additional allowances. Specifically, we adjusted the
provision for additional small-volume allowances under Sec.
1039.625(b)(2) and (m)(4) by specifying that we may waive the annual
limits on the number of allowances instead of or in addition to
granting additional hardship allowances. We did this because there may
be times when manufacturers only need approval to use up their regular
allowances at a faster pace than the regulations originally allowed.
In response to these amendments, we received adverse comments from
the California Air Resources Board and the Manufacturers of Emission
Controls Association. They expressed concern about EPA allowing itself
unlimited discretion in the total number of allowances we may grant to
provide relief to manufacturers that qualified for technical hardship
under Sec. 1039.625(m). They also objected to the proposed approach,
expressing a concern that we would be putting ourselves in a position
to substantially undermine the expected emission reductions from the
Tier 4 program. Therefore, in this final rule we are only increasing
the maximum number of percent-of-production hardship allowances EPA may
grant from 70 to 200 percent, and the maximum number of and small-
volume hardship allowances from 400 to 2,000 units.
Third, we initially removed all limitations for the higher FEL caps
under Sec. 1039.104(g). However, the California Air Resources Board
and the Manufacturers of Emission Controls questioned the need for the
revision and argued that allowing more engines with higher FELs would
cause higher emissions where engines were operating, even though the
net impact would be emissions-neutral due to the use of emissions
credits. Subsequent to these comments, John Deere provided supplemental
comments describing their product development efforts for engines in
the 19-56 kW power category. They explained why the original limit on
the higher FEL cap flexibility was not sufficient for them to complete
their development and implementation of Tier 4 technologies in time.
To address the environmental concerns expressed while also
accommodating the technology development needs that were explained, we
are adopting revised the limits on the higher FEL caps, but isolated
that to the 19-56 kW power category. Specifically, we are increasing
this limitation for higher FEL caps from 20 to 40 percent annually, and
from 40 to 80 percent over the specified four-year period. This
expanded flexibility addresses similar technological readiness
circumstances, as described in this section for transitioning to the
Tier 4 standards. However, with this amendment there would be no net
environmental impact since manufacturers would need to produce low-
emission engines that generate emission credits to offset the
additional credits used by transition engines certified to higher FELs.
We are also revising Sec. 1039.104(g) to specify that the
Temporary Compliance Adjustment Factor is the same whether an engine is
subject to NOX + NMHC standards or NOX-only
standards. This revision also addresses Tier 3 carry-over engines that
would need to certify to the alternate FEL caps after the Tier 4 final
standards take effect.
Finally, we are republishing Sec. 1039.625(e)(3), which was
inadvertently omitted in the withdrawal notice without the last
sentence, which describes the alternative standards that apply for
engines below 56 kW and engines above 560 kW.
Section 553(d) of the Administrative Procedure Act (APA), 5 U.S.C.
chapter 5, generally provides that rules may not take effect earlier
than 30 days after they are published in the Federal Register. APA
section 553(d) excepts from this provision any action that grants or
recognizes an exemption or relieves a restriction. Since the provisions
expanding the technical hardship relief in Sec. 1039.625(m) increase
access to an exemption from emission standards, EPA is making the
revisions to Sec. 1039.625(m) effective immediately upon publication.
The expanded technical hardship provisions do not set new requirements,
but rather create a streamlined path by which equipment manufacturers
unable to install compliant Tier 4 engines may install previous-tier
engines that they could not otherwise install without this final rule.
Thus, the expanded technical hardship provisions of Sec. 1039.625(m)
promulgated in this final rule are effective on February 6, 2014.
IV. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a ``significant regulatory action'' under the
terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is
therefore not subject to review under Executive Orders 12866 and 13563
(76 FR 3821, January 21, 2011). These provisions may have minor impacts
on the costs and emission reductions of the underlying regulatory
programs amended in this action. Where there may be a minor impact on
the costs or benefits of the amended regulatory program, any potential
impacts would be small and we have not attempted to quantify the
potential changes. As such, a regulatory impact evaluation or analysis
is unnecessary. EPA also does not expect this rule to have substantial
Congressional or public interest.
B. Paperwork Reduction Act
This action does not impose any new information collection burden.
The regulatory changes include changes to the way we implement the
emission standards or exemption provisions to reduce burden or to
streamline administrative procedures. However, the Office of Management
and Budget (OMB) has previously approved the information collection
requirements contained in the existing regulations at
40 CFR parts 1039 and 1068 under the provisions of the Paperwork
Reduction Act, 44 U.S.C. 3501 et seq. and has assigned OMB Control
Numbers 2060-0287 and 2060-0460. The OMB control numbers for EPA's
regulations in title 40 of the Code of Federal Regulations are listed
in 40 CFR part 9.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121,
110 Stat. 857), 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
For purposes of assessing the impacts of this rule on small
entities, small entity is defined as: (1) A small business as defined
by Small Business Administration regulations 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 these rules on small
entities, we concluded that this action will not have a significant
economic impact on a substantial number of small entities.
This final rule allows for greater flexibility and reduced burden
for manufacturers and remanufacturers. There are no costs and therefore
no regulatory burden associated with this rule. We have therefore
concluded that this rule will not increase regulatory burden for
affected small entities.
D. Unfunded Mandates Reform Act
This action contains no Federal mandates under the provisions of
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C.
1531-1538 for State, local, or tribal governments or the private
sector. The action imposes no enforceable duty on any State, local or
tribal governments or the private sector. Therefore, this action is not
subject to the requirements of sections 202 or 205 of the UMRA.
This action 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
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. Thus, Executive Order 13132 does
not apply to this action.
F. Executive Order 13175: Consultation and Coordination With Indian
This action does not have tribal implications, as specified in
Executive Order 13175 (65 FR 67249, November 9, 2000). Tribal
governments would be affected only to the extent they purchase and use
regulated vehicles. Thus, Executive Order 13175 does not apply to this
G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks
This action is not subject to Executive Order 13045 (62 FR 19885,
April 23, 1997) because it is not economically significant as defined
in Executive Order 12866, and because EPA does not believe the
environmental health or safety risks addressed by this action present a
disproportionate risk to children. Any potential environmental health
or safety impacts of this final rule would be very small.
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 action does not involve application of new technical
standards. Therefore, EPA did not consider the use of any voluntary
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
Executive Order 12898 (59 FR 7629, February 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 merely makes
minor revisions to existing regulatory programs.
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). The changes to Sec. 1039.625(m) are effective on February 6,
2014. All other provisions in this rule are effective on March 10,
V. Statutory Authority
Statutory authority for the vehicle controls is found in Clean Air
Act section 213 (which authorizes standards for emissions of pollutants
from new nonroad engines which emissions cause or contribute to air
pollution which may reasonably be anticipated to endanger
public health or welfare), sections 203-209, 216, and 301 (42 U.S.C.
7522, 7523, 7524, 7525, 7541, 7542, 7543, 7547, 7550, and 7601).
List of Subjects
40 CFR Part 1039
Environmental protection, Administrative practice and procedure,
Air pollution control, Confidential business information, Imports,
Labeling, Penalties, Reporting and recordkeeping requirements,
40 CFR Part 1042
Environmental protection, Administrative practice and procedure,
Air pollution control, Confidential business information, Imports,
Labeling, Penalties, Vessels, Reporting and recordkeeping requirements,
40 CFR Part 1068
Environmental protection, Administrative practice and procedure,
Confidential business information, Imports, Motor vehicle pollution,
Penalties, Reporting and recordkeeping requirements, Warranties.
Dated: January 28, 2014.
For the reasons set forth in the preamble, the Environmental
Protection Agency is amending title 40, chapter I of the Code of
Federal Regulations as follows:
PART 1039--CONTROL OF EMISSIONS FROM NEW AND IN-USE NONROAD
1. The authority citation for part 1039 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
2. Section 1039.104 is amended by revising paragraph (g) to read as
Sec. 1039.104 Are there interim provisions that apply only for a
* * * * *
(g) Alternate FEL caps. You may certify engines to the FEL caps in
Table 1 of this section instead of the otherwise applicable FEL caps in
Sec. 1039.101(d)(1), Sec. 1039.102(e), or Sec. 1039.102(g)(2) for
the indicated model years, subject to the following provisions:
(1) The provisions of this paragraph (g) apply for limited numbers
of engines as specified in this paragraph (g)(1). If you certify an
engine under an alternate FEL cap in this paragraph (g) for any
pollutant, count it toward the allowed percentage of engines certified
to the alternate FEL caps.
(i) Except as specified in paragraph (g)(1)(ii) of this section,
the number of engines certified to the FEL caps in Table 1 of this
section must not exceed 20 percent in any single model year in each
power category, and the sum of percentages over the 4-year period must
not exceed a total of 40 percent in each power category.
(ii) For the 19-56 kW power category, the number of engines
certified to the FEL caps in Table 1 of this section must not exceed 40
percent in any single model year, and the sum of percentages over the
4-year period must not exceed a total of 80 percent.
(2) If your engine is not certified to transient emission standards
under the provisions of Sec. 1039.102(a)(1)(iii), you must adjust your
FEL upward by a temporary compliance adjustment factor (TCAF) before
calculating your negative emission credits under Sec. 1039.705, as
(i) The temporary compliance adjustment factor for NOX
and for NOX + NMHC is 1.1.
(ii) The temporary compliance adjustment factor for PM is 1.5.
(iii) The adjusted FEL (FELadj) for calculating emission
credits is determined from the steady-state FEL (FELss)
using the following equation:
FELadj = (FELss) x (TCAF)
(iv) The unadjusted FEL (FELss) applies for all purposes
other than credit calculation.
(3) These alternate FEL caps may not be used for phase-in engines.
(4) Do not apply TCAFs to gaseous emissions for phase-out engines
that you certify to the same numerical standards (and FELs if the
engines are certified using ABT) for gaseous pollutants as you
certified under the Tier 3 requirements of 40 CFR part 89.
Table 1 of Sec. 1039.104--Alternate FEL Caps
Model years Model years
PM FEL cap, g/ for the NOX FEL cap, g/ for the
Maximum engine power kW-hr alternate PM kW-hr \1\ alternate NOX
FEL cap FEL cap
19 <= kW < 56................................... 0.30 \2\ 2012-2015 .............. ..............
56 <= kW < 130 \3\.............................. 0.30 2012-2015 3.8 \4\ 2012-2015
130 <= kW <= 560................................ 0.20 2011-2014 3.8 \5\ 2011-2014
kW > 560 \6\.................................... 0.10 2015-2018 3.5 2015-2018
\1\ The FEL cap for engines demonstrating compliance with a NOX + NMHC standard is equal to the previously
applicable NOX + NMHC standard specified in 40 CFR 89.112 (generally the Tier 3 standards).
\2\ For manufacturers certifying engines under Option 1 of Table 3 of Sec. 1039.102, these alternate
FEL caps apply to all 19-56 kW engines for model years from 2013 through 2016 instead of the years indicated
in this table. For manufacturers certifying engines under Option 2 of Table 3 of Sec. 1039.102,
these alternate FEL caps do not apply to 19-37 kW engines except in model years 2013 to 2015.
\3\ For engines below 75 kW, the FEL caps are 0.40 g/kW-hr for PM emissions and 4.4 g/kW-hr for NOX emissions.
\4\ For manufacturers certifying engines in this power category using a percentage phase-in/phase-out approach
instead of the alternate NOX standards of Sec. 1039.102(e)(1), the alternate NOX FEL cap in the table
applies only in the 2014-2015 model years if certifying under Sec. 1039.102(d)(1), and only in the 2015
model year if certifying under Sec. 1039.102(d)(2).
\5\ For manufacturers certifying engines in this power category using the percentage phase-in/phase-out approach
instead of the alternate NOX standard of Sec. 1039.102(e)(2), the alternate NOX FEL cap in the table applies
only for the 2014 model year.
\6\ For engines above 560 kW, the provision for alternate NOX FEL caps is limited to generator-set engines.
(5) You may certify engines under this paragraph (g) in any model
year provided for in Table 1 of this section without regard to whether
or not the engine family's FEL is at or below the otherwise applicable
FEL cap. For example, a 200 kW engine certified to the NOX +
NMHC standard of Sec. 1039.102(e)(3) with an FEL equal to the FEL cap
of 2.8 g/kW-hr may nevertheless be certified under this paragraph (g).
(6) For engines you produce under this paragraph (g) after the Tier
4 final standards take effect, you may certify based on a
NOX + NMHC FEL as described in Table 1 of this section.
Calculate emission credits for these
engines relative to the applicable NOX standard in Sec.
1039.101 or Sec. 1039.102, plus 0.1 g/kW-hr.
* * * * *
3. Section 1039.625 is amended by revising paragraphs (e)(3) and (m) to
read as follows:
Sec. 1039.625 What requirements apply under the program for
* * * * *
(e) * * *
(3) In all other cases, engines at or above 56 kW and at or below
560 kW must meet the appropriate Tier 3 standards described in 40 CFR
89.112. Engines below 56 kW and engines above 560 kW must meet the
appropriate Tier 2 standards described in 40 CFR 89.112.
* * * * *
(m) Additional exemptions for technical or engineering hardship.
You may request additional engine allowances under paragraph (b) of
this section; however, you may use these extra allowances only for
those equipment models for which you, or an affiliated company, do not
also produce the engine. Additional allowances under this paragraph (m)
must be used within the specified seven-year period. After considering
the circumstances, we may permit you to introduce into U.S. commerce
equipment with such engines that do not comply with Tier 4 emission
standards, as follows:
(1) We may approve additional exemptions if extreme and unusual
circumstances that are clearly outside your control and that could not
have been avoided with reasonable discretion have resulted in technical
or engineering problems that prevent you from meeting the requirements
of this part. You must show that you exercised prudent planning and
have taken all reasonable steps to minimize the scope of your request
for additional allowances.
(2) To apply for exemptions under this paragraph (m), send the
Designated Compliance Officer a written request as soon as possible
before you are in violation. In your request, include the following
(i) Describe your process for designing equipment.
(ii) Describe how you normally work cooperatively or concurrently
with your engine supplier to design products.
(iii) Describe the engineering or technical problems causing you to
request the exemption and explain why you have not been able to solve
them. Describe the extreme and unusual circumstances that led to these
problems and explain how they were unavoidable.
(iv) Describe any information or products you received from your
engine supplier related to equipment design--such as written
specifications, performance data, or prototype engines--and when you
(v) Compare the design processes of the equipment model for which
you need additional exemptions and that for other models for which you
do not need additional exemptions. Explain the technical differences
that justify your request.
(vi) Describe your efforts to find and use other compliant engines,
or otherwise explain why none is available.
(vii) Describe the steps you have taken to minimize the scope of
(viii) Include other relevant information. You must give us other
relevant information if we ask for it.
(ix) Estimate the increased percent of production you need for each
equipment model covered by your request, as described in paragraph
(m)(3) of this section. Estimate the increased number of allowances you
need for each equipment model covered by your request, as described in
paragraph (m)(4) of this section.
(3) We may approve your request to increase the allowances under
paragraph (b)(1) of this section, subject to the following limitations:
(i) You must use up the allowances under paragraph (b)(1) of this
section before using any additional allowances under this paragraph
(ii) The additional allowances under this paragraph (m)(3) may not
exceed 200 percent for each power category.
(iii) You may use these additional allowances only for the specific
equipment models covered by your request.
(4) We may approve your request to increase the small-volume
allowances under paragraph (b)(2) of this section, subject to the
(i) You are eligible for additional allowances under this paragraph
(m)(4) only if you do not use the provisions of paragraph (m)(3) of
this section to obtain additional allowances within a given power
(ii) You must use up the allowances under paragraph (b)(2) of this
section before using any additional allowances under this paragraph
(iii) The additional allowances under this paragraph (m)(4) may not
exceed 2,000 units.
(iv) We may approve additional allowances in the form of waiving
the annual limits specified in paragraph (b)(2) of this section instead
of or in addition to increasing the total number of allowances under
this paragraph (m)(4).
(v) If we increase the total number of allowances, you may use
these allowances only for the specific equipment models covered by your
PART 1042--CONTROL OF EMISSIONS FROM NEW AND IN-USE MARINE
COMPRESSION-IGNITION ENGINES AND VESSELS
4. The authority citation for part 1042 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
5. Section 1042.615 is amended as follows:
a. By revising the introductory text and paragraphs (a) introductory
text and (a)(1).
b. By redesignating paragraphs (b) through (d) as paragraphs (c)
c. By adding a new paragraph (b).
Sec. 1042.615 Replacement engine exemption.
For Category 1 and Category 2 replacement engines, the provisions
of 40 CFR 1068.240 apply except as described in this section. In
unusual circumstances, you may ask us to allow you to apply these
provisions for a new Category 3 engine.
(a) This paragraph (a) applies instead of the provisions of 40 CFR
1068.240(b)(2). The prohibitions in 40 CFR 1068.101(a)(1) do not apply
to a new replacement engine if all the following conditions are met:
(1) You use good engineering judgment to determine that no engine
certified to the current requirements of this part is produced by any
manufacturer with the appropriate physical or performance
characteristics to repower the vessel. We have determined that engines
certified to Tier 4 standards do not have the appropriate physical or
performance characteristics to replace uncertified engines or engines
certified to emission standards that are less stringent than the Tier 4
* * * * *
(b) The 40-year limit specified in 40 CFR 1068.240(a) does not
apply for engines subject to this part 1042. You may accordingly omit
the statement on the permanent labels specified in 40 CFR 1068.240
describing this limitation.
* * * * *
PART 1068--GENERAL COMPLIANCE PROVISIONS FOR HIGHWAY, STATIONARY,
AND NONROAD PROGRAMS
6. The authority citation for part 1068 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
7. Section 1068.240 is revised to read as follows:
Sec. 1068.240 What are the provisions for exempting new replacement
The prohibitions in Sec. 1068.101(a)(1) do not apply to a new
engine if it is exempt under this section as a replacement engine. For
purposes of this section, a replacement engine is a new engine that is
used to replace an engine that has already been placed into service
(whether the previous engine is replaced in whole or in part with a new
(a) General provisions. You are eligible for the exemption for new
replacement engines only if you are a certificate holder. Note that
this exemption does not apply for locomotives (40 CFR 1033.601) and
that unique provisions apply to marine compression-ignition engines (40
(1) Paragraphs (b), (c), and (d) of this section describe different
approaches for exempting new replacement engines where the engines are
specially built to correspond to an engine model from an earlier model
year that was subject to less stringent standards than those that apply
for current production (or is no longer covered by a certificate of
conformity). You must comply with the requirements of paragraph (b) of
this section for any number of replacement engines you produce in
excess of what we allow under paragraph (c) of this section. You must
designate engines you produce under this section as tracked engines
under paragraph (b) of this section or untracked engines under
paragraph (c) of this section by the deadline for the report specified
in paragraph (c)(3) of this section.
(2) Paragraph (e) of this section describes a simpler approach for
exempting partially complete new replacement engines that are built
under a certificate of conformity that is valid for producing engines
for the current model year.
(3) For all the different approaches described in paragraphs (b)
through (e) of this section, the exemption applies only for equipment
that is 40 years old or less at the time of installation.
(b) Previous-tier replacement engines with tracking. You may
produce any number of new engines to replace an engine already placed
into service in a piece of equipment, as follows:
(1) The engine being replaced must have been either not originally
subject to emission standards or originally subject to less stringent
emission standards than those that apply to a new engine meeting
current standards. The provisions of this paragraph (b) also apply for
engines that were originally certified to the same standards that apply
for the current model year if you no longer have a certificate of
conformity to continue producing that engine configuration.
(2) The following requirements and conditions apply for engines
exempted under this paragraph (b):
(i) You must determine that you do not produce an engine certified
to meet current requirements that has the appropriate physical or
performance characteristics to repower the equipment. If the engine
being replaced was made by a different company, you must make this
determination also for engines produced by this other company.
(ii) In the case of premature engine failure, if the old engine was
subject to emission standards, you must make the new replacement engine
in a configuration identical in all material respects to the old engine
and meet the requirements of Sec. 1068.265. You may alternatively make
the new replacement engine in a configuration identical in all material
respects to another certified engine of the same or later model year as
long as the engine is not certified with a family emission limit higher
than that of the old engine.
(iii) For cases not involving premature engine failure, you must
make a separate determination for your own product line addressing
every tier of emission standards that is more stringent than the
emission standards for the engine being replaced. For example, if the
engine being replaced was built before the Tier 1 standards started to
apply and engines of that power category are currently subject to Tier
3 standards, you must also consider whether any Tier 1 or Tier 2
engines that you produce have the appropriate physical and performance
characteristics for replacing the old engine; if you produce a Tier 2
engine with the appropriate physical and performance characteristics,
you must use it as the replacement engine.
(iv) You must keep records to document your basis for making the
determinations in paragraphs (b)(2)(i) and (iii) of this section.
(3) An old engine block replaced by a new engine exempted under
this paragraph (b) may be reintroduced into U.S. commerce as part of an
engine that meets either the current standards for new engines, the
provisions for new replacement engines in this section, or another
valid exemption. Otherwise, you must destroy the old engine block or
confirm that it has been destroyed.
(4) If the old engine was subject to emission standards, the
replacement engine must meet the appropriate emission standards as
specified in Sec. 1068.265. This generally means you must make the new
replacement engine in a previously certified configuration.
(5) Except as specified in paragraph (d) of this section, you must
add a permanent label, consistent with Sec. 1068.45, with your
corporate name and trademark and the following additional information:
(i) Add the following statement if the new engine may only be used
to replace an engine that was not subject to any emission standards
under this chapter:
THIS REPLACEMENT ENGINE IS EXEMPT UNDER 40 CFR 1068.240. SELLING
OR INSTALLING THIS ENGINE FOR ANY PURPOSE OTHER THAN TO REPLACE AN
UNREGULATED ENGINE MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO
CIVIL PENALTY. THIS ENGINE MAY NOT BE INSTALLED IN EQUIPMENT THAT IS
MORE THAN 40 YEARS OLD AT THE TIME OF INSTALLATION.
(ii) Add the following statement if the new engine may replace an
engine that was subject to emission standards:
THIS ENGINE COMPLIES WITH U.S. EPA EMISSION REQUIREMENTS FOR
[Identify the appropriate emission standards (by model year, tier,
or emission levels) for the replaced engine] ENGINES UNDER 40 CFR
1068.240. SELLING OR INSTALLING THIS ENGINE FOR ANY PURPOSE OTHER
THAN TO REPLACE A [Identify the appropriate emission standards for
the replaced engine, by model year(s), tier(s), or emission levels)]
ENGINE MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.
THIS ENGINE MAY NOT BE INSTALLED IN EQUIPMENT THAT IS MORE THAN 40
YEARS OLD AT THE TIME OF INSTALLATION.
(6) Engines exempt under this paragraph (b) may not be introduced
into U.S. commerce before you make the determinations under paragraph
(b)(2) of this section, except as specified in this paragraph (b)(6).
We may waive this restriction for engines excluded under paragraph
(c)(5) of this section that you ship to a distributor. Where we waive
this restriction, you must take steps to ensure that the engine is
installed consistent with the requirements of this paragraph (b). For
example, at a minimum you must report to us
annually whether engines we allowed you to ship to a distributor under
this paragraph (b)(6) have been placed into service or remain in
inventory. After an engine is placed into service, your report must
describe how the engine was installed consistent with the requirements
of this paragraph (b). Send these reports to the Designated Compliance
Officer by the deadlines we specify.
(c) Previous-tier replacement engines without tracking. You may
produce a limited number of new replacement engines that are not from a
currently certified engine family under the provisions of this
paragraph (c). If you produce new engines under this paragraph (c) to
replace engines subject to emission standards, the new replacement
engine must be in a configuration identical in all material respects to
the old engine and meet the requirements of Sec. 1068.265. You may
make the new replacement engine in a configuration identical in all
material respects to another certified engine of the same or later
model year as long as the engine is not certified with a family
emission limit higher than that of the old engine. The provisions of
this paragraph (c) also apply for engines that were originally
certified to the same standards that apply for the current model year
if you no longer have a certificate of conformity to continue producing
that engine configuration. This would apply, for example, for engine
configurations that were certified in an earlier model year but are no
longer covered by a certificate of conformity. The following provisions
apply to engines exempted under this paragraph (c):
(1) You may produce a limited number of replacement engines under
this paragraph (c) representing 0.5 percent of your annual production
volumes for each category and subcategory of engines identified in
Table 1 to this section (1.0 percent through 2013). Calculate this
number by multiplying your annual U.S.-directed production volume by
0.005 (or 0.01 through 2013) and rounding to the nearest whole number.
Determine the appropriate production volume by identifying the highest
total annual U.S.-directed production volume of engines from the
previous three model years for all your certified engines from each
category or subcategory identified in Table 1 to this section, as
applicable. In unusual circumstances, you may ask us to base your
production limits on U.S.-directed production volume for a model year
more than three years prior. You may include stationary engines and
exempted engines as part of your U.S.-directed production volume.
Include U.S.-directed engines produced by any parent or subsidiary
companies and those from any other companies you license to produce
engines for you.
(2) Count every exempted new replacement engine from your total
U.S.-directed production volume that you produce in a given calendar
year under this paragraph (c), including partially complete engines,
except for the following:
(i) Engines built to specifications for an earlier model year under
paragraph (b) of this section.
(ii) Partially complete engines exempted under paragraph (e) of
(3) Send the Designated Compliance Officer a report by March 31 of
the year following any year in which you produced exempted replacement
engines under this paragraph (c). In your report include the total
number of replacement engines you produce under this paragraph (c) for
each category or subcategory, as appropriate, and the corresponding
total production volumes determined under paragraph (c)(1) of this
section. If you send us a report under this paragraph (c)(3), you must
also include the total number of replacement engines you produced under
paragraphs (b), (d), and (e) of this section. You may include this
information in production reports required under the standard-setting
(4) Add a permanent label as specified in paragraph (b)(5) of this
section. For partially complete engines, you may alternatively add a
permanent or removable label as specified in paragraph (d) of this
(5) You may not use the provisions of this paragraph (c) for any
engines in the following engine categories or subcategories:
(i) Land-based nonroad compression-ignition engines we regulate
under 40 CFR part 1039 with a per-cylinder displacement at or above 7.0
(ii) Marine compression-ignition engines we regulate under 40 CFR
part 1042 with a per-cylinder displacement at or above 7.0 liters.
(iii) Locomotive engines we regulate under 40 CFR part 1033.
(d) Partially complete engines. The following requirements apply if
you ship a partially complete replacement engine under this section:
(1) Provide instructions specifying how to complete the engine
assembly such that the resulting engine conforms to the applicable
certificate of conformity or the specifications of Sec. 1068.265.
Where a partially complete engine can be built into multiple different
configurations, you must be able to identify all the engine models and
model years for which the partially complete engine may properly be
used for replacement purposes. Your instructions must make clear how
the final assembler can determine which configurations are appropriate
for the engine they receive.
(2) You must label the engine as follows:
(i) If you have a reasonable basis to believe that the fully
assembled engine will include the original emission control information
label, you may add a removable label to the engine with your corporate
name and trademark and the statement: ``This replacement engine is
exempt under 40 CFR 1068.240.'' This would generally apply if all the
engine models that are compatible with the replacement engine were
covered by a certificate of conformity and they were labeled in a
position on the engine or equipment that is not included as part of the
partially complete engine being shipped for replacement purposes.
Removable labels must meet the requirements specified in Sec. 1068.45.
(ii) If you do not qualify for using a removable label in paragraph
(d)(1) of this section, you must add a permanent label in a readily
visible location, though it may be obscured after installation in a
piece of equipment. Include on the permanent label your corporate name
and trademark, the engine's part number (or other identifying
information), and the statement: ``THIS REPLACEMENT ENGINE IS EXEMPT
UNDER 40 CFR 1068.240. THIS ENGINE MAY NOT BE INSTALLED IN EQUIPMENT
THAT IS MORE THAN 40 YEARS OLD AT THE TIME OF INSTALLATION.''
If there is not enough space for this statement, you may
alternatively add: ``REPLACEMENT'' or ``SERVICE ENGINE.'' For purposes
of this paragraph (d)(2), engine part numbers permanently stamped or
engraved on the engine are considered to be included on the label.
(e) Partially complete current-tier replacement engines. The
provisions of paragraph (d) of this section apply for partially
complete engines you produce from a current line of certified engines
or vehicles. This applies for engine-based and equipment-based
standards as follows:
(1) Where engine-based standards apply, you may introduce into U.S.
commerce short blocks or other partially complete engines from a
currently certified engine family as replacement components for in-use
equipment powered by engines you originally produced. You must be able
to identify all the engine models and model years
for which the partially complete engine may properly be used for
(2) Where equipment-based standards apply, you may introduce into
U.S. commerce engines that are identical to engines covered by a
current certificate of conformity by demonstrating compliance with
currently applicable standards where the engines will be installed as
replacement engines. These engines might be fully assembled, but we
would consider them to be partially complete engines because they are
not yet installed in the equipment.
(f) Emission credits. Replacement engines exempted under this
section may not generate or use emission credits under the standard-
setting part nor be part of any associated credit calculations.
Table 1 to Sec. 1068.240--Engine Categories and Subcategories for New
Replacement Engines Exempted Without Tracking
Engine category part \1\ subcategories
Highway CI...................... 40 CFR part 86.... disp. < 0.6 L/cyl.
0.6 <= disp. < 1.2
disp. >= 1.2 L/
Nonroad CI, Stationary CI, and 40 CFR part 1039, disp. < 0.6 L/cyl.
Marine CI. or 40 CFR part 0.6 <= disp. < 1.2
1.2 <= disp. < 2.5
2.5 <= disp. < 7.0
Marine SI....................... 40 CFR part 1045.. outboard.
Large SI, Stationary SI, and 40 CFR part 1048 all engines.
Marine SI (sterndrive/inboard or 40 CFR part
Recreational vehicles........... 40 CFR part 1051.. off-highway
Small SI and Stationary SI...... 40 CFR part 1054.. handheld.
\1\ Include an engine as being subject to the identified standard-
setting part if it will eventually be subject to emission standards
under that part. For example, if you certify marine compression-
ignition engines under part 94, count those as if they were already
subject to part 1042.
[FR Doc. 2014-02612 Filed 2-5-14; 8:45 am]
BILLING CODE 6560-50-P