13866
                                     -1.66
                                     13992
                                     -2.14
                                     14068
                                     -2.57
                                     14140
                                      -3
                                     14192
                                     -3.27
                                     14230
                                     -3.69
                                     14320
                                     -5.01
                                     14410
                                     -3.69
                                     14448
                                     -3.27
                                     14500
                                      -3
                                     14572
                                     -2.57
                                     14648
                                     -2.14
                                     14774
                                     -1.66
                                     14898
                                     -1.29
                                     14984
                                     -1.09
                                     15158
                                     -0.77
                                     15298
                                     -0.58
                                     15490
                                     -0.38
                                     15712
                                     -0.17
                                     15804
                                     -0.1
                                     15888
                                       0
                                     15938
                                       0
                                     16004
                                      0.1
                                     16276
                                     0.69
                                     16358
                                     0.97
                                     16444
                                     1.36
                                     16512
                                     1.78
                                     16696
                                     3.23
                                     16880
                                     1.78
                                     16948
                                     1.36
                                     17034
                                     0.97
                                     17116
                                     0.69
                                     17388
                                      0.1
                                     17454
                                       0
                                     17470
                                       0
                                     17546
                                     -0.35
                                     17622
                                     -0.9
                                     17708
                                     -1.59
                                     17794
                                     -0.9
                                     17870
                                     -0.35
                                     17946
                                       0
                                     17960
                                       0
                                     18144
                                     0.46
                                     18212
                                     0.69
                                     18292
                                     1.08
                                     18360
                                     1.53
                                     18512
                                     2.75
                                     18664
                                     1.53
                                     18732
                                     1.08
                                     18812
                                     0.69
                                     18880
                                     0.46
                                     19064
                                       0
                                     19082
                                       0
                                     19208
                                     -0.39
                                     19276
                                     -0.66
                                     19352
                                     -1.15
                                     19514
                                     -2.44
                                     19676
                                     -1.15
                                     19752
                                     -0.66
                                     19820
                                     -0.39
                                     19946
                                       0
                                     19958
                                       0
                                     20012
                                     0.28
                                     20108
                                     1.04
                                     20204
                                     0.28
                                     20258
                                       0
                                     20268
                                       0
                                     20318
                                     -0.36
                                     20368
                                       0
                                     20378
                                       0
                                     20390
                                      0.1
                                     20402
                                       0
                                     20406
                                       0
                                     20808
                                     -0.5
                                     21210
                                       0
                                     21612
                                       0

PART 1039 -- CONTROL OF EMISSIONS FROM NEW AND IN-USE NONROAD COMPRESSION-IGNITION ENGINES
179. The authority statement for part 1039 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.

180. Amend §1039.1 by revising paragraphs (b)(3) and (c) to read as follows:
§1039.1   Does this part apply for my engines?
*	*	*	*	*
(b) *	*	*
(3) Engines originally meeting Tier 1, Tier 2, or Tier 3 standards as specified in Appendix I of this part remain subject to those standards. This includes uncertified engines that meet standards under 40 CFR 1068.265. Affected engines remain subject to recall provisions as specified in 40 CFR part 1068, subpart F, throughout the useful life corresponding to the original certification. Also, tampering and defeat-device prohibitions continue to apply for those engines as specified in 40 CFR 1068.101.
*	*	*	*	*
(c) The definition of nonroad engine in 40 CFR 1068.30 excludes certain engines used in stationary applications. These engines may be required by 40 CFR part 60, subpart IIII, to comply with some of the provisions of this part 1039; otherwise, these engines are only required to comply with the requirements in §1039.20. In addition, the prohibitions in 40 CFR 1068.101 restrict the use of stationary engines for nonstationary purposes unless they are certified to the same standards that would apply to certain nonroad engines for the same model year.
*	*	*	*	*

181. Amend §1039.20 by revising paragraph (a) introductory text, paragraphs (b)(2), (4), and (c) to read as follows:
§1039.20   What requirements from this part apply to excluded stationary engines?
*	*	*	*	*
(a) You must add a permanent label or tag to each new engine you produce or import that is excluded under §1039.1(c) as a stationary engine and is not required by 40 CFR part 60, subpart IIII, to meet the requirements described in this part 1039, or the requirements described in 40 CFR part 1042, that are equivalent to the requirements applicable to marine or land-based nonroad engines for the same model year. To meet labeling requirements, you must do the following things:
*	*	*	*	*
(b)	*	*	*
(2) Include your full corporate name and trademark.
*	*	*	*	*
(4) State: "THIS ENGINE IS EXEMPTED FROM NONROAD CERTIFICATION REQUIREMENTS AS A "STATIONARY ENGINE." INSTALLING OR USING THIS ENGINE IN ANY OTHER APPLICATION MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY."
(c) Stationary engines required by 40 CFR part 60, subpart IIII, to meet the requirements described in this part 1039 or 40 CFR part 1042, must meet the labeling requirements of 40 CFR 60.4210.

182. Amend §1039.101 by revising the introductory text and paragraph (b) to read as follows:
§1039.101   What exhaust emission standards must my engines meet after the 2014 model year?
The exhaust emission standards of this section apply after the 2014 model year. Certain of these standards also apply for model year 2014 and earlier. This section presents the full set of emission standards that apply after all the transition and phase-in provisions of §1039.102 and §1039.104 expire. Section 1039.105 specifies smoke standards.
*	*	*	*	*
(b) Emission standards for steady-state testing. Steady-state exhaust emissions from your engines may not exceed the applicable emission standards in Table 1 of this section.  Measure emissions using the applicable steady-state test procedures described in subpart F of this part.
Table 1 of §1039.101 -- Tier 4 Exhaust Emission Standards After the 2014 Model Year, g/kW-hr[a]
Maximum Engine Power
Application
PM
NOx
NMHC
NOx+NMHC
CO
kW < 19
All
0.40[b]
-
-
7.5
6.6[c]
19 < kW < 56
All
0.03
-
-
4.7
5.0[d]
56 < kW < 130
All
0.02
0.40
0.19
-
5.0
130 < kW <560
All
0.02
0.40
0.19
-
3.5
kW > 560
Generator sets
0.03
0.67
0.19
-
3.5
kW > 560
All except generator sets
0.04
3.5
0.19
-
3.5
[a]Note that some of these standards also apply for 2014 and earlier model years.  This table presents the full set of emission standards that apply after all the transition and phase-in provisions of §1039.102 expire.
[b]See paragraph (c) of this section for provisions related to an optional PM standard for certain engines below 8 kW.
[c]The CO standard is 8.0 g/kW-hr for engines below 8 kW.
[d]The CO standard is 5.5 g/kW-hr for engines below 37 kW.
*	*	*	*	*

183. Amend §1039.102 by:
a. Revising the introductory text and paragraph (a)(2);
b. Revising Tables 1, 3, and 6 in paragraph (b); and
c. Revising paragraphs (d)(1), (e)(3), (g)(1)(iv), and (g)(2).
The revisions read as follows:
§1039.102   What exhaust emission standards and phase-in allowances apply for my engines in model year 2014 and earlier?
The exhaust emission standards of this section apply for 2014 and earlier model years. See §1039.101 for exhaust emission standards that apply to later model years.
(a)	*	*	*
(2) The transient standards in this section for gaseous pollutants do not apply to 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 identified in Appendix I of this part. However, except as specified by paragraph (a)(1) of this section, the transient PM emission standards apply to these engines.
(b) 	*	*	*
Table 1 of §1039.102 -- Tier 4 Exhaust Emission Standards (g/kW-hr): kW <19
Maximum engine power
Model years
PM
NOx + NMHC
CO
kW <8
2008-2014
0.40[a]
7.5
8.0
8 <=kW <19
2008-2014
0.40
7.5
6.6
[a]For engines that qualify for the special provisions in §1039.101(c), you may delay certifying to the standards in this part 1039 until 2010. In 2009 and earlier model years, these engines must instead meet the applicable Tier 2 standards and other requirements identified in Appendix I of this part. Starting in 2010, these engines must meet a PM standard of 0.60 g/kW-hr, as described in §1039.101(c). Engines certified to the 0.60 g/kWhr PM standard may not generate ABT credits.
*	*	*	*	*
Table 3 of §1039.102 -- Interim Tier 4 Exhaust Emission Standards (g/kW-hr): 37 <=kW <56
Option[a]
Model years
PM
NOx + NMHC
CO
#1
2008-2012
0.30
4.7
5.0
#2
2012
0.03
4.7
5.0
All
2013-2014
0.03
4.7
5.0
[a]You may certify engines to the Option #1 or Option #2 standards starting in the listed model year. Under Option #1, all engines at or above 37 kW and below 56 kW produced before the 2013 model year must meet the applicable Option #1 standards in this table. These engines are considered to be "Option #1 engines." Under Option #2, all these engines produced before the 2012 model year must meet the applicable standards identified in Appendix I of this part. Engines certified to the Option #2 standards in model year 2012 are considered "Option #2 engines."
*	*	*	*	*

Table 6 of §1039.102 -- Interim Tier 4 Exhaust Emission Standards (g/kW-hr): 130 < kW  < 560
Model years
Phase-in Option
PM
NOx
NMHC
NOx+NMHC
CO
2011-2013
Phase-in
0.02
0.40
0.19
-
3.5

Phase-out
0.02
-
-
4.0
3.5
2014
All engines
0.02
0.40
0.19
-
3.5
*	*	*	*	*
(d)	*	*	*
(1) For model years 2012 through 2014, you may use banked NOx + NMHC credits from any Tier 2 engine at or above 37 kW certified under the standards identified in Appendix I of this part to meet the NOx phase-in standards or the NOx + NMHC phase-out standards under paragraphs (b) and (c) of this section, subject to the additional ABT provisions in §1039.740.
*	*	*	*	*
(e)	*	*	*
(3) You use NOx + NMHC emission credits to certify an engine family to the alternate NOx + NMHC standards in this paragraph (e)(3) instead of the otherwise applicable alternate NOx and NMHC standards. Calculate the alternate NOx + NMHC standard by adding 0.1 g/kW-hr to the numerical value of the applicable alternate NOx standard of paragraph (e)(1) or (2) of this section. Engines certified to the NOx + NMHC standards of this paragraph (e)(3) may not generate emission credits. The FEL caps for engine families certified under this paragraph (e)(3) are the previously applicable NOx + NMHC standards identified in Appendix I of this part (generally the Tier 3 standards).
*	*	*	*	*
(g)	*	*	*
(1)	*	*	*
(iv) Gaseous pollutants for phase-out engines that you certify to the same numerical standards and FELs for gaseous pollutants to which you certified under the Tier 3 requirements identified in Appendix I of this part. However, the NTE standards for PM apply to these engines.
(2) Interim FEL caps. As described in §1039.101(d), you may participate in the ABT program in subpart H of this part by certifying engines to FELs for PM, NOx, or NOx + NMHC instead of the standards in Tables 1 through 7 of this section for the model years shown. The FEL caps listed in the following table apply instead of the FEL caps in §1039.101(d)(1), except as allowed by §1039.104(g):
Table 8 of §1039.102 -- Interim Tier 4 FEL Caps, g/kW-hr
Maximum engine power
Phase-in option
Model years[a]
PM
NOx
NOx+NMHC
kW <19
 --
2008-2014
0.80
 --
9.5[b]
19 <= kW < 37
 --
2008-2012
0.60
 --
9.5
37 <= kW < 56
 --
2008-2012[c]
0.40
 --
7.5
56 <= kW < 130
phase-in
2012-2013
0.04
0.80
 --
56 <= kW <130
phase-out
2012-2013
0.04
 --
6.6[d]
130 <= kW <= 560
phase-in
2011-2013
0.04
0.80
 --
130 <= kW <= 560
phase-out
2011-2013
0.04
 --
6.4[e]
kW > 560
 --
2011-2014
0.20
6.2
 --
[a]For model years before 2015 where this table does not specify FEL caps, apply the FEL caps shown in §1039.101.
[b]For engines below 8 kW, the FEL cap is 10.5 g/kW-hr for NOx + NMHC emissions.
[c]For manufacturers certifying engines to the standards of this part 1039 in 2012 under Option #2 of Table 3 of §1039.102, the FEL caps for 37-56 kW engines in the 19-56 kW category of Table 2 of §1039.101 apply for model year 2012 and later; see Appendix I of this part for provisions that apply to earlier model years.
[d]For engines below 75 kW, the FEL cap is 7.5 g/kW-hr for NOx + NMHC emissions.
[e]For engines below 225 kW, the FEL cap is 6.6 g/kW-hr for NOx + NMHC emissions.

184. Amend §1039.104 by revising paragraphs (c)(1), (c)(2)(ii), (c)(4), and (g)(4) to read as follows:
§1039.104   Are there interim provisions that apply only for a limited time?
*	*	*	*	*
(c)	*	*	*
(1) You may delay complying with certain otherwise applicable Tier 4 emission standards and requirements as described in the following table:
If your engine's maximum power is .  .  .
You may delay meeting .  .  .
Until model year .  .  .
Before that model year the engine must comply with .  .  .
kW <19
The standards and requirements of this part
2011
The standards and requirements described in Appendix I of this part.
19 <=kW <37
The Tier 4 standards and requirements of this part that would otherwise be applicable in model year 2013
2016
The Tier 4 standards and requirements that apply for model year 2008.
37 <=kW <56
See paragraph (c)(2) of this section for special provisions that apply for engines in this power category.
56 <=kW <130
The standards and requirements of this part
2015
The standards and requirements described in Appendix I of this part.

(2)	*	*	*
(ii) If you do not choose to comply with paragraph (c)(2)(i) of this section, you may continue to comply with the standards and requirements described in Appendix I of this part for model years through 2012, but you must begin complying in 2013 with Tier 4 standards and requirements specified in Table 3 of §1039.102 for model years 2013 and later.
*	*	*	*	*
(4)	For engines not in the 19-56 kW power category, if you delay compliance with any standards under this paragraph (c), you must do all the following things for the model years when you are delaying compliance with the otherwise applicable standards:
(i) Produce engines that meet all the emission standards identified in Appendix I of this part and other requirements applicable for that model year, except as noted in this paragraph (c).
(ii) Meet the labeling requirements that apply for certified engines but use the following alternative compliance statement: "THIS ENGINE COMPLIES WITH U.S. EPA REGULATIONS FOR [CURRENT MODEL YEAR] NONROAD COMPRESSION-IGNITION ENGINES UNDER 40 CFR 1039.104(c).".
*	*	*	*	*
(g) 	*	*	*
(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 identified in Appendix I of this part.
Table 1 of §1039.104 -- Alternate FEL Caps
Maximum engine power
PM FEL cap, g/kW-hr
Model years for the
alternate PM
FEL cap
NOx FEL cap, g/kW-hr[a]
Model years for the
alternate NOx
FEL cap
19 <= kW < 56
0.30
2012-2015[b]

56 <= kW < 130[c]
0.30
2012-2015
3.8
2012-2015[d]
130 <= kW <= 560
0.20
2011-2014
3.8
2011-2014[e]
kW > 560[f]
0.10
2015-2018
3.5
2015-2018
aThe FEL cap for engines demonstrating compliance with a NOx + NMHC standard is equal to the previously applicable NOx + NMHC standard specified in Appendix I of this part (generally the Tier 3 standards).
bFor manufacturers certifying engines under Option #1 of Table 3 of §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 §1039.102, these alternate FEL caps do not apply to 19-37 kW engines except in model years 2013 to 2015.
cFor 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.
dFor manufacturers certifying engines in this power category using a percentage phase-in/phase-out approach instead of the alternate NOx standards of §1039.102(e)(1), the alternate NOx FEL cap in the table applies only in the 2014-2015 model years if certifying under §1039.102(d)(1), and only in the 2015 model year if certifying under §1039.102(d)(2).
eFor manufacturers certifying engines in this power category using the percentage phase-in/phase-out approach instead of the alternate NOx standard of §1039.102(e)(2), the alternate NOx FEL cap in the table applies only for the 2014 model year.
fFor engines above 560 kW, the provision for alternate NOx FEL caps is limited to generator-set engines.
*	*	*	*	*

185. Amend §1039.135 by revising paragraph (e) introductory text to read as follows:
§1039.135   How must I label and identify the engines I produce?
*	*	*	*	*
(e) For model year 2019 and earlier, create a separate label with the statement: "ULTRA LOW SULFUR FUEL ONLY". Permanently attach this label to the equipment near the fuel inlet or, if you do not manufacture the equipment, take one of the following steps to ensure that the equipment will be properly labeled:
*	*	*	*	*

186. Amend §1039.205 by adding paragraph (c) to read as follows:
§1039.205  What must I include in my application?
*	*	*	*	*
(c) If your engines are equipped with an engine diagnostic system as required under §1039.110, explain how it works, describing especially the engine conditions (with the corresponding diagnostic trouble codes) that cause the warning lamp to go on and the design features that minimize the potential for operation without reductant. Also identify the communication protocol (SAE J1939, SAE J1979, etc.)
*	*	*	*	*

187. Amend §1039.245 by revising paragraph (a) to read as follows:
§1039.245   How do I determine deterioration factors from exhaust durability testing?
*	*	*	*	*
(a) You may ask us to approve deterioration factors for an engine family with established technology based on engineering analysis instead of testing. Engines certified to a NOx + NMHC standard or FEL greater than the Tier 3 NOx + NMHC standard described in Appendix I of this part are considered to rely on established technology for gaseous emission control, except that this does not include any engines that use exhaust-gas recirculation or aftertreatment. In most cases, technologies used to meet the Tier 1 and Tier 2 emission standards would be considered to be established technology.
*	*	*	*	*

188. Revise §1039.255 to read as follows:
§1039.255   What decisions may EPA make regarding a certificate of conformity?
(a) If we determine an application is complete and shows that the engine family meets all the requirements of this part and the Act, we will issue a certificate of conformity for the engine family for that model year. We may make the approval subject to additional conditions.
(b) We may deny an application for certification if we determine that an engine family fails to comply with emission standards or other requirements of this part or the Clean Air Act. We will base our decision on all available information. If we deny an application, we will explain why in writing.
(c) In addition, we may deny your application or suspend or revoke a certificate of conformity if you do any of the following:
   (1) Refuse to comply with any testing or reporting requirements.
   (2) Submit false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete.
   (3) Cause any test data to become inaccurate.
   (4) Deny us from completing authorized activities (see 40 CFR 1068.20). This includes a failure to provide reasonable assistance.
   (5) Produce engines for importation into the United States at a location where local law prohibits us from carrying out authorized activities.
   (6) Fail to supply requested information or amend an application to include all engines being produced.
   (7) Take any action that otherwise circumvents the intent of the Act or this part.
(d) We may void a certificate of conformity if you fail to keep records, send reports, or give us information as required under this part or the Act. Note that these are also violations of 40 CFR 1068.101(a)(2).
(e) We may void a certificate of conformity if we find that you intentionally submitted false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete.
(f) If we deny an application or suspend, revoke, or void a certificate, you may ask for a hearing (see §1039.820).

189. Amend §1039.601 by revising paragraph (b) to read as follows:
§1039.601  What compliance provisions apply?
*	*	*	*	*
(b) Subpart C of this part describes how to test and certify dual-fuel and flexible-fuel engines. Some multi-fuel engines may not fit either of those defined terms.  For such engines, we will determine whether it is most appropriate to treat them as single-fuel engines, dual-fuel engines, or flexible-fuel engines based on the range of possible and expected fuel mixtures.  For example, an engine might burn natural gas but initiate combustion with a pilot injection of diesel fuel.  If the engine is designed to operate with a single fueling algorithm (i.e., fueling rates are fixed at a given engine speed and load condition), we would generally treat it as a single-fuel engine.  In this context, the combination of diesel fuel and natural gas would be its own fuel type.  If the engine is designed to also operate on diesel fuel alone, we would generally treat it as a dual-fuel engine.  If the engine is designed to operate on varying mixtures of the two fuels, we would generally treat it as a flexible-fuel engine. To the extent that requirements vary for the different fuels or fuel mixtures, we may apply the more stringent requirements.

190. Amend §1039.620 by revising paragraph (b) to read as follows:
§1039.620   What are the provisions for exempting engines used solely for competition?
*	*	*	*	*
(b) The definition of nonroad engine in 40 CFR 1068.30 excludes engines used solely for competition. These engines are not required to comply with this part 1039, but 40 CFR 1068.101 prohibits the use of competition engines for noncompetition purposes.
*	*	*	*	*

191. Amend §1039.625 by revising the introductory text,  paragraph (d)(4) introductory text, paragraphs (e)(1), (e)(3), and (g)(1)(vi), paragraph (j) introductory text, and paragraph (j)(1) to read as follows:
§1039.625   What requirements apply under the program for equipment-manufacturer flexibility?
The provisions of this section allow equipment manufacturers to produce equipment with engines that are subject to less stringent emission standards after the Tier 4 emission standards begin to apply. To be eligible to use these provisions, you must follow all the instructions in this section. See §1039.626 for requirements that apply specifically to companies that manufacture equipment outside the United States and to companies that import such equipment without manufacturing it. Engines and equipment you produce under this section are exempt from the prohibitions in 40 CFR 1068.101(a)(1), subject to the provisions of this section.
*	*	*	*	*
(d)	*	*	*
(4) You may start using the allowances under this section for engines that are not yet subject to Tier 4 standards, as long as the seven-year period for using allowances under the Tier 2 or Tier 3 program has expired. Table 3 of this section shows the years for which this applies. To use these early allowances, you must use engines that meet the emission standards described in paragraph (e) of this section. You must also count these units or calculate these percentages as described in paragraph (c) of this section and apply them toward the total number or percentage of equipment with exempted engines we allow for the Tier 4 standards as described in paragraph (b) of this section. The maximum number of cumulative early allowances under this paragraph (d)(4) is 10 percent under the percent-of-production allowance or 100 units under the small-volume allowance. For example, if you produce 5 percent of your equipment with engines between 130 and 560 kW that use allowances under this paragraph (d)(4) in 2009, you may use up to an additional 5 percent of your allowances in 2010. If you use allowances for 5 percent of your equipment in both 2009 and 2010, your 80 percent allowance for 2011-2017 in the 130-560 kW power category decreases to 70 percent. Manufacturers using allowances under this paragraph (d)(4) must comply with the notification and reporting requirements specified in paragraph (g) of this section.
*	*	*	*	*
(e)	*	*	*
(1) If you are using the provisions of paragraph (d)(4) of this section, engines must meet the applicable Tier 1 or Tier 2 emission standards described in Appendix I of this part.
*	*	*	*	*
(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 Appendix I of this part. Engines below 56 kW and engines above 560 kW must meet the appropriate Tier 2 standards described in Appendix I of this part.
*	*	*	*	*
(g)	*	*	*
(1)	*	*	*
(vi) The number of units in each power category you have sold in years for which the Tier 2 and Tier 3 standards apply.
*	*	*	*	*
(j) Provisions for engine manufacturers. As an engine manufacturer, you may produce exempted engines as needed under this section. You do not have to request this exemption for your engines, but you must have written assurance from equipment manufacturers that they need a certain number of exempted engines under this section. Send us an annual report of the engines you produce under this section, as described in §1039.250(a). Exempt engines must meet the emission standards in paragraph (e) of this section and you must meet all the requirements of 40 CFR 1068.265, except that engines produced under the provisions of paragraph (a)(2) of this section must be identical in all material respects to engines previously certified under this part 1039. If you show under 40 CFR 1068.265(c) that the engines are identical in all material respects to engines that you have previously certified to one or more FELs above the standards specified in paragraph (e) of this section, you must supply sufficient credits for these engines. Calculate these credits under subpart H of this part using the previously certified FELs and the alternate standards. You must meet the labeling requirements in §1039.135, as applicable, with the following exceptions:
(1) Add the following statement instead of the compliance statement in §1039.135(c)(12):
THIS ENGINE MEETS U.S. EPA EMISSION STANDARDS UNDER 40 CFR 1039.625. SELLING OR INSTALLING THIS ENGINE FOR ANY PURPOSE OTHER THAN FOR THE EQUIPMENT FLEXIBILITY PROVISIONS OF 40 CFR 1039.625 MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.
*	*	*	*	*

192. Amend §1039.626 by revising paragraph (b)(1)(iv) to read as follows:
§1039.626   What special provisions apply to equipment imported under the equipment-manufacturer flexibility program?
*	*	*	*	*
(b)	*	*	*
(1)	*	*	*
(iv) The number of units in each power category you have imported in years for which the Tier 2 and Tier 3 standards apply.
*	*	*	*	*

193. Amend §1039.655 by revising paragraphs (a)(2) and (b) to read as follows:
§1039.655   What special provisions apply to engines sold in Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands?
(a)	*	*	*
(2) The engine meets the latest applicable emission standards in Appendix I of this part.
*	*	*	*	*
(b) If you introduce an engine into commerce in the United States under this section, you must meet the labeling requirements in §1039.135, but add the following statement instead of the compliance statement in §1039.135(c)(12):
THIS ENGINE DOES NOT COMPLY WITH U.S. EPA TIER 4 EMISSION REQUIREMENTS. IMPORTING THIS ENGINE INTO THE UNITED STATES OR ANY TERRITORY OF THE UNITED STATES EXCEPT GUAM, AMERICAN SAMOA, OR THE COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.
*	*	*	*	*

194. Amend §1039.740 by revising paragraph (b) to read as follows:
§1039.740   What restrictions apply for using emission credits?
*	*	*	*	*
(b) Emission credits from earlier tiers of standards. (1) For purposes of ABT under this subpart, you may not use emission credits generated from engines subject to emission standards identified in Appendix I of this part, except as specified in §1039.102(d)(1) or the following table:
If the maximum power of the credit-generating engine is .  .  .
And it was certified to the following standards identified in Appendix I of this part .  .  .
Then you may use those banked credits for the following Tier 4 engines .  .  .
(i) kW <19
Tier 2
kW <19
(ii) 19 <=kW <37
Tier 2
kW >=19
(iii) 37 <=kW <=560
Tier 3
kW >=19
(iv) kW >560
Tier 2
kW >=19

(2) Emission credits generated from marine engines certified to the standards identified in Appendix I of this part for land-based engines may not be used under this part.
*	*	*	*	*

195. Amend §1039.801 by:
a. Revising the definition for "Low-hour";
b. Revising paragraph (5)(ii) for the definition of "Model year"; and
c. Revising the definitions for "Small-volume engine manufacturer", "Tier 1", "Tier 2", and "Tier 3".
The revisions read as follows.
§1039.801   What definitions apply to this part?
*	*	*	*	*
Low-hour means relating to an engine with stabilized emissions and represents the undeteriorated emission level.  This would generally involve less than 300 hours of operation for engines with NOx aftertreatment and 125 hours of operation for other engines.
*	*	*	*	*
Model year means one of the following things:
*	*	*	*	*
(5)	*	*	*
(ii) For imported engines described in paragraph (5)(ii) of the definition of "new nonroad engine," model year means the calendar year in which the engine is modified.
*	*	*	*	*
Small-volume engine manufacturer means an engine manufacturer with 1,000 or fewer employees that has had annual U.S.-directed production volume of no more than 2,500 units.  For manufacturers owned by a parent company, these limits apply to the total number of employees and production volume from the parent company and all its subsidiaries.
*	*	*	*	*
Tier 1 means relating to the Tier 1 emission standards identified in Appendix I of this part.
Tier 2 means relating to the Tier 2 emission standards identified in Appendix I of this part.
Tier 3 means relating to the Tier 3 emission standards identified in Appendix I of this part.
*	*	*	*	*

196. Add Appendix I to part 1039 to read as follows:
Appendix I to Part 1039 --  Summary of Previous Emission Standards
The following standards, which EPA originally adopted under 40 CFR part 89, apply to nonroad compression-ignition engines produced before the model years specified in §1039.1:
(a) Tier 1 standards apply as summarized in the following table:
Table 1 to Appendix I -- Tier 1 Emission Standards (g/kW-hr)
Rated Power (kW)
Starting Model Year
NOx
HC
NOx+NMHC
CO
PM
kW< 8
2000
 --
 --
10.5
8.0
1.0
8 < kW < 19
2000
 --
 --
9.5
6.6
0.80
19 < kW < 37
1999
 --
 --
9.5
5.5
0.80
37 < kW < 75
1998
9.2
 --
 --
 --
 --
75 < kW < 130
1997

130 < kW < 560
1996
9.2
1.3
 --
11.4
0.54
kW > 560
2000

(b) Tier 2 standards apply as summarized in the following table:
Table 2 to Appendix I -- Tier 2 Emission Standards (g/kW-hr)
Rated Power (kW)
Starting Model Year
NOx+NMHC
CO
PM
kW< 8
2005
7.5
8.0
0.80
8 < kW < 19
2005
7.5
6.6
0.80
19 < kW < 37
2004
7.5
5.5
0.60
37 < kW < 75
2004
7.5
5.0
0.40
75 < kW < 130
2003
6.6
5.0
0.30
130 < kW < 225
2003
6.6
3.5
0.20
225 < kW < 450
2001
6.4
3.5
0.20
450 < kW < 560
2002

kW > 560
2006

(c) Tier 3 standards apply as summarized in the following table:
Table 3 to Appendix I -- Tier 3 Emission Standards (g/kW-hr)
Rated Power (kW)
Starting Model Year
NOx+NMHC
CO
PM
37 < kW < 75
2008
4.7
5.0
0.40
75 < kW < 130
2007
4.0
5.0
0.30
130 < kW < 560
2006
4.0
3.5
0.20

(d) Tier 1 through Tier 3 standards applied only for discrete-mode steady-state testing. There were no not-to-exceed standards or transient testing.

PART 1042 -- CONTROL OF EMISSIONS FROM NEW AND IN-USE MARINE COMPRESSION-IGNITION ENGINES AND VESSELS
197. The authority statement for part 1042 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.

198. Amend §1042.1 by:
a. Revising paragraphs (b) and (c); and
b. Removing and reserving paragraph (d).
The revisions read as follows:
§1042.1   Applicability.
*	*	*	*	*
(b) New engines with maximum engine power below 37 kW and originally manufactured and certified before the model years identified in Table 1 to this section are subject to emission standards as specified in Appendix I of this part. The provisions of this part 1042 do not apply for such engines, except as follows beginning June 29, 2010:
   (1) The allowances of this part apply.
   (2) The definitions of "new marine engine" and "model year" apply.
(c) Marine engines originally meeting Tier 1 or Tier 2 standards as specified in Appendix I of this part remain subject to those standards. This includes uncertified engines that meet standards under 40 CFR 1068.265. Those engines remain subject to recall provisions as specified in 40 CFR part 1068, subpart F, throughout the useful life corresponding to the original certification. Also, tampering and defeat-device prohibitions continue to apply for those engines as specified in 40 CFR 1068.101. The remanufacturing provisions in subpart I of this part may apply for remanufactured engines originally manufactured in model years before the model years identified in Table 1 to this section.
*	*	*	*	*

199. Amend §1042.101 by revising paragraphs (a)(6), (c)(2), and (e)(2) to read as follows:
§1042.101   Exhaust emission standards for Category 1 and Category 2 engines.
(a)	*	*	*
(6) Interim Tier 4 PM standards apply for 2014 and 2015 model year engines between 2000 and 3700 kW as specified in this paragraph (a)(6). These engines are considered Tier 4 engines.
   (i) For Category 1 engines, the Tier 3 PM standards from Table 1 to this section continue to apply. PM FELs for these engines may not be higher than the applicable Tier 2 PM standards specified in Appendix I of this part.
   (ii) For Category 2 engines with per-cylinder displacement below 15.0 liters, the Tier 3 PM standards from Table 2 to this section continue to apply. PM FELs for these engines may not be higher than 0.27 g/kW-hr.
   (iii) For Category 2 engines with per-cylinder displacement at or above 15.0 liters, the PM standard is 0.34 g/kW-hr for engines at or above 2000 kW and below 3300 kW, and 0.27 g/kW-hr for engines at or above 3300 kW and below 3700 kW. PM FELs for these engines may not be higher than 0.50 g/kW-hr.
*	*	*	*	*
(c)	*	*	*
(2) Determine the applicable NTE zone and subzones as described in §1042.515. Determine NTE multipliers for specific zones and subzones and pollutants as follows:
   (i) For marine engines certified using the duty cycle specified in §1042.505(b)(1), except for variable-speed propulsion marine engines used with controllable-pitch propellers or with electrically coupled propellers, apply the following NTE multipliers:
      (A) Subzone 1: 1.2 for Tier 3 NOx+HC standards.
      (B) Subzone 1: 1.5 for Tier 4 standards and Tier 3 PM and CO standards.
      (C) Subzone 2: 1.5 for Tier 4 NOx and HC standards and for Tier 3 NOx+HC standards.
      (D) Subzone 2: 1.9 for PM and CO standards.
   (ii) For recreational marine engines certified using the duty cycle specified in §1042.505(b)(2), except for variable-speed marine engines used with controllable-pitch propellers or with electrically coupled propellers, apply the following NTE multipliers:
      (A) Subzone 1: 1.2 for Tier 3 NOx+HC standards.
      (B) Subzone 1: 1.5 for Tier 3 PM and CO standards.
      (C) Subzones 2 and 3: 1.5 for Tier 3 NOx+HC standards.
      (D) Subzones 2 and 3: 1.9 for PM and CO standards.
   (iii) For variable-speed marine engines used with controllable-pitch propellers or with electrically coupled propellers that are certified using the duty cycle specified in §1042.505(b)(1), (2), or (3), apply the following NTE multipliers:
      (A) Subzone 1: 1.2 for Tier 3 NOx+HC standards.
      (B) Subzone 1: 1.5 for Tier 4 standards and Tier 3 PM and CO standards.
      (C) Subzone 2: 1.5 for Tier 4 NOx and HC standards and for Tier 3 NOx+HC standards.
      (D) Subzone 2: 1.9 for PM and CO standards. However, there is no NTE standard in Subzone 2b for PM emissions if the engine family's applicable standard for PM is at or above 0.07 g/kW-hr.
   (iv) For constant-speed engines certified using a duty cycle specified in §1042.505(b)(3) or (4), apply the following NTE multipliers:
      (A) Subzone 1: 1.2 for Tier 3 NOx+HC standards.
      (B) Subzone 1: 1.5 for Tier 4 standards and Tier 3 PM and CO standards.
      (C) Subzone 2: 1.5 for Tier 4 NOx and HC standards and for Tier 3 NOx+HC standards.
      (D) Subzone 2: 1.9 for PM and CO standards. However, there is no NTE standard for PM emissions if the engine family's applicable standard for PM is at or above 0.07 g/kW-hr.
   (v) For variable-speed auxiliary marine engines certified using the duty cycle specified in §1042.505(b)(5)(ii) or (iii):
      (A) Subzone 1: 1.2 for Tier 3 NOx+HC standards.
      (B) Subzone 1: 1.5 for Tier 4 standards and Tier 3 PM and CO standards.
      (C) Subzone 2: 1.2 for Tier 3 NOx+HC standards.
      (D) Subzone 2: 1.5 for Tier 4 standards and Tier 3 PM and CO standards. However, there is no NTE standard for PM emissions if the engine family's applicable standard for PM is at or above 0.07 g/kW-hr.
*	*	*	*	*
(e)	*	*	*
(2) Specify a longer useful life in hours for an engine family under either of two conditions:
   (i) If you design your engine to operate longer than the minimum useful life. Indicators of design life include your recommended overhaul interval and may also include your advertising and marketing materials.
   (ii) If your basic mechanical warranty is longer than the minimum useful life.
*	*	*	*	*

200. Amend §1042.104 by revising paragraphs (a)(2) and (c) to read as follows:
§1042.104   Exhaust emission standards for Category 3 engines.
(a)	*	*	*
(2) NOx standards apply based on the engine's model year and maximum in-use engine speed as shown in the following table:
Table 1 to §1042.104 -- NOx Emission Standards for Category 3 Engines (g/kW-hr)
Emission standards
Model year
Maximum in-use engine speed

Less than 130 RPM
130-2000 RPM[a]
Over 2000 RPM
Tier 1
2004-2010
17.0
45.0·n[(−0.20)]
9.8
Tier 2
2011-2015
14.4
44.0·n[(−0.23)]
7.7
Tier 3[b]
2016 and later
3.4
9.0·n[(−0.20)]
2.0
[a]Applicable standards are calculated from n (maximum in-use engine speed, in RPM, as specified in §1042.140). Round the standards to one decimal place.
[b]For engines designed with on-off controls as specified in §1042.115(g), the Tier 2 standards continue to apply any time the engine has disabled its Tier 3 NOx emission controls.
*	*	*	*	*
(c) Mode caps.  Measured NOx emissions from Tier 3 engines may not exceed the cap specified in this paragraph (c) for any applicable duty-cycle test modes with power greater than 10 percent maximum engine power.  Calculate the mode cap by multiplying the applicable Tier 3 NOx standard by 1.5 and rounding to the nearest 0.1 g/kW-hr.  Note that mode caps do not apply for pollutants other than NOx and do not apply for any modes of operation outside of the applicable duty cycles in §1042.505.  Category 3 engines are not subject to not-to-exceed standards.
*	*	*	*	*

201. Amend §1042.115 by revising paragraph (g) to read as follows:
§1042.115  Other requirements.
*	*	*	*	*
(g) On-off controls for engines on Category 3 vessels.  Manufacturers may equip Category 3 propulsion engines with features that disable Tier 3 NOx emission controls subject to the provisions of this paragraph (g).  For auxiliary engines allowed to use on-off controls as specified in §1042.650(d), read "Tier 2" to mean "IMO Tier II" and read "Tier 3" to mean "IMO Tier III".
   (1) Features that disable Tier 3 NOx emission controls are considered to be AECDs whether or not they meet the definition of an AECD.  For example, manually operated on-off features are AECDs under this paragraph (g).  The features must be identified in your application for certification as AECDs.  For purposes of this paragraph (g), the term "features that disable Tier 3 emission controls" includes (but is not limited to) any combination of the following that cause the engine's emissions to exceed any Tier 3 emission standard:
      (i) Bypassing of exhaust aftertreatment.
      (ii) Reducing or eliminating flow of reductant to an SCR system.
      (iii) Modulating engine calibration in a manner that increases engine-out emissions of a regulated pollutant.
   (2)  You must demonstrate that the AECD will not disable NOx emission controls while operating shoreward of the boundaries of the North American ECA and the U.S. Caribbean Sea ECA.  You must demonstrate that the AECD will not disable emission control while operating in these waters.  (Note: See the regulations in 40 CFR part 1043 for requirements related to operation in ECAs, including foreign ECAs.)  Compliance with this paragraph will generally require that the AECD operation be based on Global Positioning System (GPS) inputs.  We may consider any relevant information to determine whether your AECD conforms to this paragraph (g).
   (3) The onboard computer log must record in nonvolatile computer memory all incidents of engine operation with the Tier 3 NOx emission controls disabled.
   (4) The engine must comply with the Tier 2 NOx standard when the Tier 3 NOx emission controls are disabled.

202. Amend §1042.125 by revising paragraph (e) to read as follows:
§1042.125  Maintenance instructions.
*	*	*	*	*
(e) Maintenance that is not emission-related.  For maintenance unrelated to emission controls, you may schedule any amount of inspection or maintenance.  You may also take these inspection or maintenance steps during service accumulation on your emission-data engines, as long as they are reasonable and technologically necessary.  This might include adding engine oil, changing air, fuel, or oil filters, servicing engine-cooling systems or fuel-water separator cartridges or elements, and adjusting idle speed, governor, engine bolt torque, valve lash, or injector lash.  You may not perform this nonemission-related maintenance on emission-data engines more often than the least frequent intervals that you recommend to the ultimate purchaser.
*	*	*	*	*

203. Amend §1042.135 by revising paragraph (c)(13) to read as follows:
§1042.135   Labeling.
*	*	*	*	*
(c) 	*	*	*
(13) For engines above 130 kW that are intended for installation on domestic or public vessels, include the following statement: "THIS ENGINE DOES NOT COMPLY WITH INTERNATIONAL MARINE REGULATIONS UNLESS IT IS ALSO COVERED BY AN EIAPP CERTIFICATE."
*	*	*	*	*

204. Amend §1042.145 by removing and reserving paragraphs (b), (c), (e), (h), and (i) and revising paragraph (j) to read as follows:
§1042.145   Interim provisions.
*	*	*	*	*
(j) Installing land-based engines in marine vessels. Vessel manufacturers and marine equipment manufacturers may apply the provisions of §§1042.605 and 1042.610 to land-based engines with maximum engine power at or above 37 kW and at or below 560 kW if they meet the Tier 3 emission standards in Appendix I of 40 CFR part 1039 as specified in 40 CFR 1068.265.  All the provisions of §1042.605 or §1042.610 apply as if those engines were certified to emission standards under 40 CFR part 1039.  Similarly, engine manufacturers, vessel manufacturers, and marine equipment manufacturers must comply with all the provisions of 40 CFR part 1039 as if those engines were installed in land-based equipment. The following provisions apply for engine manufacturers shipping engines to vessel manufacturers or marine equipment manufacturers under this paragraph (j):
   (1) You must label the engine as described in 40 CFR 1039.135, but identify the engine family name as it was last certified under 40 CFR part 1039 and include the following alternate compliance statement: "THIS ENGINE MEETS THE TIER 3 STANDARDS FOR LAND-BASED NONROAD DIESEL ENGINES UNDER 40 CFR PART 1039. THIS ENGINE MAY BE USED ONLY IN A MARINE VESSEL UNDER THE DRESSING PROVISIONS OF 40 CFR 1042.605 OR 40 CFR 1042.610."
   (2) You must use the provisions of 40 CFR 1068.262 for shipping uncertified engines under this section to secondary engine manufacturers.
*	*	*	*	*

205. Amend §1042.235 by revising paragraph (d)(3) to read as follows:
§1042.235   Emission testing related to certification.
*	*	*	*	*
(d)	*	*	*
(3) The data show that the emission-data engine would meet all the requirements that apply to the engine family covered by the application for certification. For engines originally tested to demonstrate compliance with Tier 1 or Tier 2 standards, you may consider those test procedures to be equivalent to the procedures we specify in subpart F of this part.
*	*	*	*	*

206. Revise §1042.255 to read as follows:
§1042.255   EPA decisions.
(a) If we determine an application is complete and shows that the engine family meets all the requirements of this part and the Clean Air Act, we will issue a certificate of conformity for the engine family for that model year. We may make the approval subject to additional conditions.
(b) We may deny an application for certification if we determine that an engine family fails to comply with emission standards or other requirements of this part or the Clean Air Act. We will base our decision on all available information. If we deny an application, we will explain why in writing.
(c) In addition, we may deny your application or suspend or revoke a certificate of conformity if you do any of the following:
   (1) Refuse to comply with any testing or reporting requirements.
   (2) Submit false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete.
   (3) Cause any test data to become inaccurate.
   (4) Deny us from completing authorized activities (see 40 CFR 1068.20). This includes a failure to provide reasonable assistance.
   (5) Produce engines for importation into the United States at a location where local law prohibits us from carrying out authorized activities.
   (6) Fail to supply requested information or amend an application to include all engines being produced.
   (7) Take any action that otherwise circumvents the intent of the Clean Air Act or this part.
(d) We may void a certificate of conformity if you fail to keep records, send reports, or give us information as required under this part or the Clean Air Act. Note that these are also violations of 40 CFR 1068.101(a)(2).
(e) We may void a certificate of conformity if we find that you intentionally submitted false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete after submission.
(f) If we deny an application or suspend, revoke, or void a certificate, you may ask for a hearing (see §1042.920).

207. Amend §1042.302 by revising paragraph (a) to read as follows:
§1042.302   Applicability of this subpart for Category 3 engines.
*	*	*	*	*
(a) You must test each Category 3 engine at the sea trial of the vessel in which it is installed or within the first 300 hours of operation, whichever occurs first. This may involve testing a fully assembled production engine before it is installed in the vessel. For engines with on-off controls, you may omit testing to demonstrate compliance with Tier 2 standards if the engine does not rely on aftertreatment when Tier 3 emission controls are disabled. Since you must test each engine, the provisions of §§1042.310 and 1042.315(b) do not apply for Category 3 engines. If we determine that an engine failure under this subpart is caused by defective components or design deficiencies, we may revoke or suspend your certificate for the engine family as described in §1042.340. If we determine that an engine failure under this subpart is caused only by incorrect assembly, we may suspend your certificate for the engine family as described in §1042.325. If the engine fails, you may continue operating only to complete the sea trial and return to port. It is a violation of 40 CFR 1068.101(b)(1) to operate the vessel further until you remedy the cause of failure. Each two-hour period of such operation constitutes a separate offense. A violation lasting less than two hours constitutes a single offense.
*	*	*	*	*

208. Amend §1042.605 by revising paragraphs (a), (b), (c), (d)(1)(ii), (d)(2), (d)(3)(ii), (f), and (h) to read as follows:
§1042.605   Dressing engines already certified to other standards for nonroad or heavy-duty highway engines for marine use.
(a) General provisions. If you are an engine manufacturer (including someone who marinizes a land-based engine), this section allows you to introduce new marine engines into U.S. commerce if they are already certified to the requirements that apply to compression-ignition engines under 40 CFR parts 85 and 86 or 40 CFR part 1033 or 1039 for the appropriate model year. If you comply with all the provisions of this section, we consider the certificate issued under 40 CFR part 86, 1033, or 1039 for each engine to also be a valid certificate of conformity under this part 1042 for its model year, without a separate application for certification under the requirements of this part 1042. This section does not apply for Category 3 engines.
(b) Vessel-manufacturer provisions. If you are not an engine manufacturer, you may install an engine certified for the appropriate model year under 40 CFR part 86, 1033, or 1039 in a marine vessel as long as you do not make any of the changes described in paragraph (d)(3) of this section and you meet the requirements of paragraph (e) of this section. If you modify the non-marine engine in any of the ways described in paragraph (d)(3) of this section, we will consider you a manufacturer of a new marine engine. Such engine modifications prevent you from using the provisions of this section.
(c) Liability. Engines for which you meet the requirements of this section are exempt from all the requirements and prohibitions of this part, except for those specified in this section. Engines exempted under this section must meet all the applicable requirements from 40 CFR parts 85 and 86 or 40 CFR part1033 or 1039. This paragraph (c) applies to engine manufacturers, vessel manufacturers that use such an engine, and all other persons as if the engine were used in its originally intended application. The prohibited acts of 40 CFR 1068.101(a)(1) apply to these new engines and vessels; however, we consider the certificate issued under 40 CFR part 86, 1033, or 1039 for each engine to also be a valid certificate of conformity under this part 1042 for its model year. If we make a determination that these engines do not conform to the regulations during their useful life, we may require you to recall them under 40 CFR part 85 or 1068.
(d)	*	*	*
(1)	*	*	*
(ii) Land-based compression-ignition nonroad engines (40 CFR part 1039).
*	*	*	*	*
(2) The engine must have the label required under 40 CFR part 86, 1033, or 1039.
(3)	 *	*	*
(ii) Replacing an original turbocharger, except that small-volume engine manufacturers may replace an original turbocharger on a recreational engine with one that matches the performance of the original turbocharger.
*	*	*	*	*
(f) Failure to comply. If your engines do not meet the criteria listed in paragraph (d) of this section, they will be subject to the standards, requirements, and prohibitions of this part 1042 and the certificate issued under 40 CFR part 86, 1033, or 1039 will not be deemed to also be a certificate issued under this part 1042. Introducing these engines into U.S. commerce as marine engines without a valid exemption or certificate of conformity under this part violates the prohibitions in 40 CFR 1068.101(a)(1).
*	*	*	*	*
(h) Participation in averaging, banking and trading. Engines adapted for marine use under this section may not generate or use emission credits under this part 1042. These engines may generate credits under the ABT provisions in 40 CFR part(s) 86, 1033, or 1039, as applicable. These engines must use emission credits under 40 CFR part(s) 86, 1033, or 1039 as applicable if they are certified to an FEL that exceeds an emission standard.
*	*	*	*	*

209. Amend §1042.610 by revising paragraphs (a), (c), (d)(1), (f), and (g) to read as follows:
§1042.610   Certifying auxiliary marine engines to land-based standards.
*	*	*	*	*
(a) General provisions. If you are an engine manufacturer, this section allows you to introduce new marine engines into U.S. commerce if they are already certified to the requirements that apply to compression-ignition engines under 40 CFR part 1039 for the appropriate model year. If you comply with all the provisions of this section, we consider the certificate issued under 40 CFR part 1039 for each engine to also be a valid certificate of conformity under this part 1042 for its model year, without a separate application for certification under the requirements of this part 1042.
*	*	*	*	*
(c) Liability. Engines for which you meet the requirements of this section are exempt from all the requirements and prohibitions of this part, except for those specified in this section. Engines exempted under this section must meet all the applicable requirements from 40 CFR part 1039. This paragraph (c) applies to engine manufacturers, vessel manufacturers that use such an engine, and all other persons as if the engine were used in its originally intended application. The prohibited acts of 40 CFR 1068.101(a)(1) apply to these new engines and vessels; however, we consider the certificate issued under 40 CFR part 1039 for each engine to also be a valid certificate of conformity under this part 1042 for its model year. If we make a determination that these engines do not conform to the regulations during their useful life, we may require you to recall them under 40 CFR part 1068.
(d)	*	*	*
(1) The marine engine must be identical in all material respects to a land-based engine covered by a valid certificate of conformity for the appropriate model year showing that it meets emission standards for engines of that power rating under 40 CFR part 1039.
*	*	*	*	*
(f) Failure to comply. If your engines do not meet the criteria listed in paragraph (d) of this section, they will be subject to the standards, requirements, and prohibitions of this part 1042 and the certificate issued under 40 CFR part 1039 will not be deemed to also be a certificate issued under this part 1042. Introducing these engines into U.S. commerce as marine engines without a valid exemption or certificate of conformity under this part 1042 violates the prohibitions in 40 CFR 1068.101(a)(1).
(g) Participation in averaging, banking and trading. Engines using this exemption may not generate or use emission credits under this part 1042. These engines may generate credits under the ABT provisions in 40 CFR part 1039, as applicable. These engines must use emission credits under 40 CFR part 1039 as applicable if they are certified to an FEL that exceeds an emission standard.
*	*	*	*	*

210. Amend §1042.615 by revising paragraph (a) introductory text and paragraphs (a)(1) and (3) and adding paragraphs (f) and (g) to read as follows:
§1042.615  Replacement engine exemption.
*	*	*	*	*
(a) This paragraph (a) applies instead of the provisions of 40 CFR 1068.240(b)(2) for installing new marine engines in vessels that are not "new vessels". 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 Tier 4 engines with aftertreatment technology 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 standards.
*	*	*	*	*
(3) Send us a report by September 30 of each year describing your engine shipments under this section from the preceding calendar year. Your report must include all the following things and be signed by an authorized representative of your company:
   (i) Identify the number of Category 1 and Category 2 exempt replacement engines that meet Tier 1, Tier 2, or Tier 3 standards, or that meet no EPA standards. Count engines separately for each tier of standards. Identify the number of those engines that have been shipped (directly or indirectly) to a vessel owner. This includes engines shipped to anyone intending to install engines on behalf of a specific engine owner. Also include commercial Tier 3 engines with maximum engine power at or above 600 kW even if they have not been shipped to or designated for a specific vessel owner in the specified time frame.
   (ii) Describe how you made the determinations described in paragraph (a)(1) of this section for each Category 1 and Category 2 exempt replacement engine for each vessel during the preceding year. For Tier 3 replacement engines at or above 600 kW, describe why any engines certified to Tier 4 standards without aftertreatment are not suitable.
   (iii) Identify the number of Category 3 exempt replacement engines. We may require you to describe how you made the determinations described in paragraph (a)(1) of this section for each engine.
   (iv) Include the following statement:
   I certify that the statements and information in the enclosed document are true, accurate, and complete to the best of my knowledge. I am aware that there are significant civil and criminal penalties for submitting false statements and information, or omitting required statements and information.
*	*	*	*	*
(f) The provisions of 40 CFR 1068.240(c) allow you to ship a limited number of exempt replacement engines to vessel owners or distributors without making the determinations described in paragraph (a) of this section. Note that such engines do not count toward the production limits of 40 CFR 1068.240(c) if you meet all the requirements of this section by the due date for the annual report. You may count Tier 3 commercial marine replacement engines at or above 600 kW as tracked engines under 40 CFR 1068.240(b) even if they have not been shipped to or designated for a specific vessel owner in the specified time frame.
(g) In unusual circumstances, you may ask us to allow you to apply the replacement engine exemption of this section for repowering a vessel that becomes a "new vessel" under §1042.901 as a result of modifications, as follows:
   (1) You must demonstrate that no manufacturer produces an engine certified to Tier 4 standards with the appropriate physical or performance characteristics to repower the vessel. We will consider concerns about the size of the replacement engine and its compatibility with vessel components relative to the overall scope of the project.
   (2) Exempt replacement engines under this paragraph (g) must meet the Tier 3 standards specified in §1042.101 (or the Tier 2 standards if there are no Tier 3 standards).
   (3) We will not approve a request for an exemption from the Tier 3 standards for any engines.
   (4) You may not use the exemption provisions for untracked replacement engines under 40 CFR 1068.240(c) for repowering a vessel that becomes a "new vessel" under §1042.901 as a result of modifications.

211. Amend §1042.650 by revising the introductory text and paragraph (b)(4) to read as follows:
§1042.650  Migratory vessels.
The provisions of paragraphs (a) through (c) of this section apply for Category 1 and Category 2 engines, including auxiliary engines installed on vessels with Category 3 propulsion engines; these provisions do not apply for any Category 3 engines.  All engines exempted under this section must comply with the applicable requirements of 40 CFR part 1043.
*	*	*	*	*
(b)	*	*	*
(4) Operating a vessel containing an engine exempted under this paragraph (b) violates the prohibitions in 40 CFR 1068.101(a)(1) if the vessel is not in full compliance with applicable requirements for international safety specified in paragraph (b)(1)(i) of this section.
*	*	*	*	*

212. Amend §1042.655 by revising the paragraph (b) to read as follows:
§1042.655  Special certification provisions for Category 3 engines with aftertreatment.
*	*	*	*	*
(b) Required testing.  The emission-data engine must be tested as specified in subpart F of this part.  Testing engine-out emissions to simulate operation with disabled Tier 3 emission controls must simulate backpressure and other parameters as needed to represent in-use operation with an SCR catalyst. The catalyst material or other aftertreatment device must be tested under conditions that accurately represent actual engine conditions for the test points.  This catalyst or aftertreatment testing may be performed on a bench scale.
*	*	*	*	*

§1042.701 [Amended]
213. Amend §1042.701 by removing and reserving paragraph (j).

214. Amend §1042.801 by revising paragraph (f)(1) to read as follows:
§1042.801  General provisions.
*	*	*	*	*
(f) 	*	*	*
(1) Only fuel additives registered under 40 CFR part 79 may be used under this paragraph (f).
*	*	*	*	*

215. Amend §1042.836 by revising the introductory text and paragraph (c) to read as follows:
§1042.836   Marine certification of locomotive remanufacturing systems.
If you certify a Tier 0, Tier 1, or Tier 2 remanufacturing system for locomotives under 40 CFR part 1033, you may also certify the system under this part 1042, according to the provisions of this section.
*	*	*	*	*
(c) Systems that were certified to the standards of 40 CFR part 92 are subject to the following restrictions:
   (1) Tier 0 locomotive systems may not be used for any Category 1 engines or Tier 1 or later Category 2 engines.
   (2) Where systems certified to the standards of 40 CFR part 1033 are also available for an engine, you may not use a system certified to the standards of 40 CFR part 92.

216. Amend §1042.901 by revising the definition for "Low-hour" and paragraph (3) of the definition for "Model year" to read as follows:
§1042.901  Definitions.
*	*	*	*	*
Low-hour means relating to an engine that has stabilized emissions and represents the undeteriorated emission level. This would generally involve less than 300 hours of operation for engines with NOx aftertreatment and 125 hours of operation for other engines.
*	*	*	*	*
Model year means 	*	*	*
*	*	*	*	*
(3) For an uncertified marine engine excluded under §1042.5 that is later subject to this part 1042 as a result of being installed in a different vessel, model year means the calendar year in which the engine was installed in the non-excluded vessel.  For a marine engine excluded under §1042.5 that is later subject to this part 1042 as a result of reflagging the vessel, model year means the calendar year in which the engine was originally manufactured.  For a marine engine that becomes new under paragraph (7) of the definition of "new marine engine," model year means the calendar year in which the engine was originally manufactured.  (See definition of "new marine engine," paragraphs (3) and (7).)
*	*	*	*	*

217. Revise §1042.910 to read as follows:
§1042.910   Incorporation by reference.
(a) Certain material is incorporated by reference into this part with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that specified in this section, the Environmental Protection Agency must publish a document in the Federal Register and the material must be available to the public. All approved material is available for inspection at EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution Avenue, N.W., Washington, DC 20004, www.epa.gov/dockets,<PHONE_NUMBER>, and is available from the sources listed below. It is also available for inspection at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, email<EMAIL_ADDRESS>or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
(b) The International Maritime Organization, 4 Albert Embankment, London SE1 7SR, United Kingdom, or www.imo.org, or 44-(0)20-7735-7611.
   (1) MARPOL Annex VI, Regulations for the Prevention of Air Pollution from Ships, Fourth Edition, 2017, and NOx Technical Code 2008.
      (i) Revised MARPOL Annex VI, Regulations for the Prevention of Pollution from Ships, Fourth Edition, 2017 ("2008 Annex VI"); IBR approved for §1042.901.
      (ii) NOx Technical Code 2008, Technical Code on Control of Emission of Nitrogen Oxides from Marine Diesel Engines, 2017 Edition, ("NOx Technical Code"); IBR approved for §§1042.104(g), 1042.230(d), 1042.302(c) and (e), 1042.501(g), and 1042.901.
    (2) [Reserved]

218. Amend Appendix I to part 1042 by revising paragraph (a) introductory text, paragraph (b) introductory text, and paragraph (b)(3) to read as follows:
Appendix I to Part 1042 -- Summary of Previous Emission Standards
*	*	*	*	*
(a) Engines below 37 kW. Tier 1 and Tier 2 standards for engines below 37 kW originally adopted under 40 CFR part 89 apply as follows:
*	*	*	*	*
(b) Engines at or above 37 kW. Tier 1 and Tier 2 standards for engines at or above 37 kW originally adopted under 40 CFR part 94 apply as follows:
*	*	*	*	*
   (3) Tier 2 supplemental standards. Not-to-exceed emission standards apply for all engines subject to the Tier 2 standards described in paragraph (b)(2) of this appendix.

PART 1043 -- CONTROL OF NOx, SOx, AND PM EMISSIONS FROM MARINE ENGINES AND VESSELS SUBJECT TO THE MARPOL PROTOCOL
219. The authority statement for part 1043 continues to read as follows:
 Authority: 33 U.S.C. 1901-1912.

220. Amend §1043.41 by revising paragraph (a) to read as follows:
§1043.41   EIAPP certification process.
*	*	*	*	*
(a) You must send the Designated Certification Officer a separate application for an EIAPP certificate for each engine family. An EIAPP certificate is valid starting with the indicated effective date and is valid for any production until such time as the design of the engine family changes or more stringent emission standards become applicable, whichever comes first. Note that an EIAPP certificate demonstrating compliance with Tier I or Tier II standards (but not the Tier III standard) is only a limited authorization to install engines on vessels. For example, you may produce such Tier I or Tier II engines, but those engines may not be installed in vessels that are subject to Tier III standards. You may obtain preliminary approval of portions of the application under 40 CFR 1042.210.
*	*	*	*	*

221. Revise §1043.100 to read as follows:
§1043.100   Incorporation by reference.
(a) Certain material is incorporated by reference into this part with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that specified in this section, the Environmental Protection Agency must publish a document in the Federal Register and the material must be available to the public. All approved material is available for inspection at EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution Avenue, N.W., Washington, DC 20004, www.epa.gov/dockets,<PHONE_NUMBER>, and is available from the sources listed below. It is also available for inspection at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, email<EMAIL_ADDRESS>or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
(b) The International Maritime Organization, 4 Albert Embankment, London SE1 7SR, United Kingdom, or www.imo.org, or 44-(0)20-7735-7611.
   (1) MARPOL Annex VI, Regulations for the Prevention of Air Pollution from Ships, Fourth Edition, 2017, and NOx Technical Code 2008.
      (i) Revised MARPOL Annex VI, Regulations for the Prevention of Pollution from Ships, Fourth Edition, 2017 ("2008 Annex VI"); IBR approved for §§1043.1 introductory text, 1043.20, 1043.30(f), 1043.60(c), and 1043.70(a).
      (ii) NOx Technical Code 2008, Technical Code on Control of Emission of Nitrogen Oxides from Marine Diesel Engines, 2017 Edition, ("NOx Technical Code"); IBR approved for §§1043.20, 1043.41(b) and (h), and 1043.70(a).
    (2) [Reserved]

PART 1045 -- CONTROL OF EMISSIONS FROM SPARK-IGNITION PROPULSION MARINE ENGINES AND VESSELS
222. The authority statement for part 1045 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.

223. Amend §1045.1 by revising paragraph (c) to read as follows:
§1045.1  Does this part apply for my products?
*	*	*	*	*
(c) Outboard and personal watercraft engines originally meeting the standards specified in Appendix I remain subject to those standards. Those engines remain subject to recall provisions as specified in 40 CFR part 1068, subpart F, throughout the useful life corresponding to the original certification. Also, tampering and defeat-device prohibitions continue to apply for those engines as specified in 40 CFR 1068.101.
*	*	*	*	*

224. Amend §1045.145 by removing and reserving paragraphs (a) through (g), (i) through (k), and (m) and revising paragraph (n) to read as follows:
§1045.145  Are there interim provisions that apply only for a limited time?
*	*	*	*	*
(n) Continued use of 40 CFR part 91 test data. You may continue to use test data based on the test procedures that applied for engines built before the requirements of this part 1045 started to apply if we allow you to use carryover emission data under 40 CFR 1045.235(d) for your engine family.  You may also use those test procedures for production-line testing with any engine family whose certification is based on testing with those procedures.  For any EPA testing, we will rely on the procedures described in subpart F of this part, even if you used carryover data based on older test procedures as allowed under this paragraph (n).
*	*	*	*	*

225. Amend §1045.235 by revising paragraph (d)(3) to read as follows:
§1045.235  What testing requirements apply for certification?
*	*	*	*	*
(d)	*	*	*
(3) The data show that the emission-data engine would meet all the requirements that apply to the engine family covered by the application for certification.
*	*	*	*	*

226. Revise §1045.255 to read as follows:
§1045.255   What decisions may EPA make regarding a certificate of conformity?
(a) If we determine an application is complete and shows that the engine family meets all the requirements of this part and the Clean Air Act, we will issue a certificate of conformity for the engine family for that model year. We may make the approval subject to additional conditions.
(b) We may deny an application for certification if we determine that an engine family fails to comply with emission standards or other requirements of this part or the Clean Air Act. We will base our decision on all available information. If we deny an application, we will explain why in writing.
(c) In addition, we may deny your application or suspend or revoke a certificate of conformity if you do any of the following:
   (1) Refuse to comply with any testing or reporting requirements.
   (2) Submit false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete.
   (3) Cause any test data to become inaccurate.
   (4) Deny us from completing authorized activities (see 40 CFR 1068.20). This includes a failure to provide reasonable assistance.
   (5) Produce engines for importation into the United States at a location where local law prohibits us from carrying out authorized activities.
   (6) Fail to supply requested information or amend an application to include all engines being produced.
   (7) Take any action that otherwise circumvents the intent of the Clean Air Act or this part.
(d) We may void a certificate of conformity if you fail to keep records, send reports, or give us information as required under this part or the Clean Air Act. Note that these are also violations of 40 CFR 1068.101(a)(2).
(e) We may void a certificate of conformity if we find that you intentionally submitted false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete after submission.
 (f) If we deny an application or suspend, revoke, or void a certificate, you may ask for a hearing (see §1045.820).

227. Amend §1045.310 by revising paragraph (a)(1) introductory text and paragraph (a)(1)(iv) to read as follows:
§1045.310   How must I select engines for production-line testing?
(a)	*	*	*
(1) For engine families with projected U.S.-directed production volume of at least 1,600, the test periods are defined as follows:
*	*	*	*	*
(iv) If your annual production period is 301 days or longer, divide the annual production period evenly into four test periods. For example, if your annual production period is 392 days (56 weeks), divide the annual production period into four test periods of 98 days (14 weeks).
*	*	*	*	*

228. Amend §1045.501 by revising paragraph (c) to read as follows:
§1045.501   How do I run a valid emission test?
*	*	*	*	*
(c) Fuels. Use the fuels and lubricants specified in 40 CFR part 1065, subpart H, for all the testing we require in this part, except as specified in §1045.515.
   (1) Use gasoline meeting the specifications described in 40 CFR 1065.710(c) for general testing. For service accumulation, use the test fuel or any commercially available fuel that is representative of the fuel that in-use engines will use.
   (2) You may alternatively use ethanol-blended fuel meeting the specifications described in 40 CFR 1065.710(b) for general testing without our advance approval. If you use the ethanol-blended fuel for certifying a given engine family, you may also use it for production-line testing or any other testing you perform for that engine family under this part. If you use the ethanol-blended fuel for certifying a given engine family, we may use the ethanol-blended fuel or the specified neat gasoline test fuel with that engine family.
*	*	*	*	*

229. Revise Appendix 1 to part 1045 to read as follows:
Appendix I to Part 1045 --  Summary of Previous Emission Standards
(a) The following standards, which EPA originally adopted under 40 CFR part 91, apply to outboard and personal watercraft engines produced from model year 2006 through 2009:
   (1) For engines at or below 4.3 kW, the HC+NOx standard is 81.00 g/kW-hr.
   (2) For engines above 4.3 kW, the following HC+NOx standard applies:
   HC+NOx standard = (151 + 557/P0.9)  0.250 + 6.00
   Where:
   STD = The HC+NOx emission standard, in g/kW-hr.
   P = The average power of an engine family, in kW.
(b) Table 1 of this appendix describes the phase-in standards for outboard and personal watercraft engines for model years 1998 through 2005. For engines with maximum engine power above 4.3 kW, the standard is expressed by the following formula, in g/kW-hr, with constants for each year identified in Table 1 of this appendix:

Table 1 of Appendix I -- HC+NOx Phase-in Standards for Outboard and Personal Watercraft Engines
Model Year
Maximum engine power < 4.3 kW
Maximum engine power > 4.3 kW

A
B
1998
278.00
0.917
2.44
1999
253.00
0.833
2.89
2000
228.00
0.750
3.33
2001
204.00
0.667
3.78
2002
179.00
0.583
4.22
2003
155.00
0.500
4.67
2004
130.00
0.417
5.11
2005
105.00
0.333
5.56

PART 1048 -- CONTROL OF EMISSIONS FROM NEW, LARGE NONROAD SPARK-IGNITION ENGINES
230. The authority statement for part 1048 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.

231. Revise §1048.145 to read as follows:
§1048.145  Are there interim provisions that apply only for a limited time?
The provisions in this section apply instead of other provisions in this part.  This section describes when these interim provisions expire.
(a)  -  (f) [Reserved]
(g) Small-volume provisions.  If you qualify for the hardship provisions in §1068.250 of this chapter, we may approve extensions of up to four years total.

232. Revise §1048.255 to read as follows:
§1048.255  What decisions may EPA make regarding a certificate of conformity?
(a) If we determine an application is complete and shows that the engine family meets all the requirements of this part and the Act, we will issue a certificate of conformity for the engine family for that model year. We may make the approval subject to additional conditions.
(b) We may deny an application for certification if we determine that an engine family fails to comply with emission standards or other requirements of this part or the Clean Air Act. We will base our decision on all available information. If we deny an application, we will explain why in writing.
(c) In addition, we may deny your application or suspend or revoke a certificate of conformity if you do any of the following:
   (1) Refuse to comply with any testing or reporting requirements.
   (2) Submit false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete.
   (3) Cause any test data to become inaccurate.
   (4) Deny us from completing authorized activities (see 40 CFR 1068.20). This includes a failure to provide reasonable assistance.
   (5) Produce engines for importation into the United States at a location where local law prohibits us from carrying out authorized activities.
   (6) Fail to supply requested information or amend an application to include all engines being produced.
   (7) Take any action that otherwise circumvents the intent of the Act or this part.
(d) We may void a certificate of conformity if you fail to keep records, send reports, or give us information as required under this part or the Act. Note that these are also violations of 40 CFR 1068.101(a)(2).
(e) We may void a certificate of conformity if we find that you intentionally submitted false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete after submission.
(f) If we deny an application or suspend, revoke, or void a certificate, you may ask for a hearing (see §1048.820).

233. Amend §1048.501 by revising paragraph (c) to read as follows:

§1048.501   How do I run a valid emission test?
*	*	*	*	*
(c) Use the fuels and lubricants specified in 40 CFR part 1065, subpart H, to perform valid tests for all the testing we require in this part, except as noted in §1048.515.
   (1) Use gasoline meeting the specifications described in 40 CFR 1065.710(c) for general testing. For service accumulation, use the test fuel or any commercially available fuel that is representative of the fuel that in-use engines will use.
   (2) You may alternatively use ethanol-blended fuel meeting the specifications described in 40 CFR 1065.710(b) for general testing without our advance approval. If you use the ethanol-blended fuel for certifying a given engine family, you may also use it for production-line testing or any other testing you perform for that engine family under this part. If you use the ethanol-blended fuel for certifying a given engine family, we may use the ethanol-blended fuel or the specified neat gasoline test fuel with that engine family.
*	*	*	*	*

PART 1051 -- CONTROL OF EMISSIONS FROM RECREATIONAL ENGINES AND VEHICLES
234. The authority statement for part 1051 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.

235. Revise §1051.145 to read as follows:
§1051.145  What provisions apply only for a limited time?
(a) Apply the provisions in this section instead of others in this part for the periods and circumstances specified in this section.
(b) [Reserved]

236. Revise §1051.255 to read as follows:
§1051.255  What decisions may EPA make regarding a certificate of conformity?
(a) If we determine an application is complete and shows that the engine family meets all the requirements of this part and the Act, we will issue a certificate of conformity for the engine family for that model year. We may make the approval subject to additional conditions.
(b) We may deny an application for certification if we determine that an engine family fails to comply with emission standards or other requirements of this part or the Clean Air Act. We will base our decision on all available information. If we deny an application, we will explain why in writing.
(c) In addition, we may deny your application or suspend or revoke a certificate of conformity if you do any of the following:
   (1) Refuse to comply with any testing or reporting requirements.
   (2) Submit false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete.
   (3) Cause any test data to become inaccurate.
   (4) Deny us from completing authorized activities (see 40 CFR 1068.20). This includes a failure to provide reasonable assistance.
   (5) Produce engines for importation into the United States at a location where local law prohibits us from carrying out authorized activities.
   (6) Fail to supply requested information or amend an application to include all engines being produced.
   (7) Take any action that otherwise circumvents the intent of the Act or this part.
(d) We may void a certificate of conformity if you fail to keep records, send reports, or give us information as required under this part or the Clean Air Act. Note that these are also violations of 40 CFR 1068.101(a)(2).
(e) We may void a certificate of conformity if we find that you intentionally submitted false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete after submission.
(f) If we deny an application or suspend, revoke, or void a certificate, you may ask for a hearing (see §1051.820).

237. Amend §1051.310 by revising paragraph (a)(1) introductory text and paragraph (a)(1)(iv) to read as follows:
§1051.310   How must I select vehicles or engines for production-line testing?
(a)	*	*	*
(1) For engine families with projected U.S.-directed production volume of at least 1,600, the test periods are defined as follows:
*	*	*	*	*
   (iv) If your annual production period is 301 days or longer, divide the annual production period evenly into four test periods. For example, if your annual production period is 392 days (56 weeks), divide the annual production period into four test periods of 98 days (14 weeks).
*	*	*	*	*

238. Amend §1051.501 by revising paragraph (d) to read as follows:
§1051.501   What procedures must I use to test my vehicles or engines?
*	*	*	*	*
(d) Fuels. Use the fuels meeting the following specifications:
   (1) Exhaust. Use the fuels and lubricants specified in 40 CFR part 1065, subpart H, for all the exhaust testing we require in this part. For service accumulation, use the test fuel or any commercially available fuel that is representative of the fuel that in-use engines will use. The following provisions apply for using specific fuel types:
      (i) For gasoline-fueled engines, use the grade of gasoline specified in 40 CFR 1065.710(c) for general testing. You may alternatively use ethanol-blended fuel meeting the specifications described in 40 CFR 1065.710(b) for general testing without our advance approval. If you use the ethanol-blended fuel for certifying a given engine family, you may also use it for production-line testing or any other testing you perform for that engine family under this part. If you use the ethanol-blended fuel for certifying a given engine family, we may use the ethanol-blended fuel or the specified neat gasoline test fuel with that engine family.
      (ii) For diesel-fueled engines, use either low-sulfur diesel fuel or ultra low-sulfur diesel fuel meeting the specifications in 40 CFR 1065.703. If you use sulfur-sensitive technology as defined in 40 CFR 1039.801 and you measure emissions using ultra low-sulfur diesel fuel, you must add a permanent label near the fuel inlet with the following statement: "ULTRA LOW SULFUR FUEL ONLY".
   (2) Fuel Tank Permeation. (i) For the preconditioning soak described in §1051.515(a)(1) and fuel slosh durability test described in §1051.515(d)(3), use the fuel specified in 40 CFR 1065.710(b), or the fuel specified in 40 CFR 1065.710(c) blended with 10 percent ethanol by volume. As an alternative, you may use Fuel CE10, which is Fuel C as specified in ASTM D 471-98 (see 40 CFR 1060.810) blended with 10 percent ethanol by volume.
   (ii) For the permeation measurement test in §1051.515(b), use the fuel specified in 40 CFR 1065.710(c). As an alternative, you may use any of the fuels specified in paragraph (d)(2)(i) of this section.
   (3) Fuel Hose Permeation. Use the fuel specified in 40 CFR 1065.710(b), or the fuel specified in 40 CFR 1065.710(c) blended with 10 percent ethanol by volume for permeation testing of fuel lines. As an alternative, you may use Fuel CE10, which is Fuel C as specified in ASTM D 471-98 (see 40 CFR 1060.810) blended with 10 percent ethanol by volume.
*	*	*	*	*

PART 1054 -- CONTROL OF EMISSIONS FROM NEW, SMALL NONROAD SPARK-IGNITION ENGINES AND EQUIPMENT
239. The authority statement for part 1054 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.

240. Amend §1054.1 by revising paragraphs (a)(1) and (5), (c), and (d) to read as follows:
§1054.1  Does this part apply for my engines and equipment?
(a)	*	*	*
(1) The requirements of this part related to exhaust emissions apply to new, nonroad spark-ignition engines with maximum engine power at or below 19 kW.  This includes auxiliary marine spark-ignition engines.
*	*	*	*	*
(5) We specify provisions in §1054.145(f) and in §1054.740 that allow for meeting the requirements of this part before the dates shown in Table 1 to this section.  Engines, fuel-system components, or equipment certified to these standards are subject to all the requirements of this part as if these optional standards were mandatory.
*	*	*	*	*
(c) Engines originally meeting Phase 1 or Phase 2 standards as specified in Appendix I remain subject to those standards. Those engines remain subject to recall provisions as specified in 40 CFR part 1068, subpart F, throughout the useful life corresponding to the original certification. Also, tampering and defeat-device prohibitions continue to apply for those engines as specified in 40 CFR 1068.101.
(d) The regulations in this part 1054 optionally apply to engines with maximum engine power at or below 30 kW and with displacement at or below 1,000 cubic centimeters that would otherwise be covered by 40 CFR part 1048. See 40 CFR 1048.615 for provisions related to this allowance.
*	*	*	*	*

241. Revise §1054.2 to read as follows:
§1054.2  Who is responsible for compliance?
(a) The requirements and prohibitions of this part apply to manufacturers of engines and equipment, as described in §1054.1.  The requirements of this part are generally addressed to manufacturers subject to this part's requirements.  The term "you" generally means the certifying manufacturer.  For provisions related to exhaust emissions, this generally means the engine manufacturer, especially for issues related to certification (including production-line testing, reporting, etc.).  For provisions related to certification with respect to evaporative emissions, this generally means the equipment manufacturer.  Note that for engines that become new after being placed into service (such as engines converted from highway or stationary use), the requirements that normally apply for manufacturers of freshly manufactured engines apply to the importer or any other entity we allow to obtain a certificate of conformity.
(b) Equipment manufacturers must meet applicable requirements as described in §1054.20.  Engine manufacturers that assemble an engine's complete fuel system are considered to be the equipment manufacturer with respect to evaporative emissions (see 40 CFR 1060.5).  Note that certification requirements for component manufacturers are described in 40 CFR part 1060.

242. Revise §1054.30 to read as follows:
§1054.30  Submission of information.
Unless we specify otherwise, send all reports and requests for approval to the Designated Compliance Officer (see §1054.801). See §1054.825 for additional reporting and recordkeeping provisions.

243. Amend §1054.103 by revising paragraph (c) introductory text to read as follows:
§1054.103  What exhaust emission standards must my handheld engines meet?
*	*	*	*	*
(c) Fuel types. The exhaust emission standards in this section apply for engines using the fuel type on which the engines in the emission family are designed to operate.  You must meet the numerical emission standards for hydrocarbon in this section based on the following types of hydrocarbon emissions for engines powered by the following fuels:
*	*	*	*	*

244. Amend §1054.105 by revising paragraph (c) introductory text to read as follows:
§1054.105  What exhaust emission standards must my nonhandheld engines meet?
*	*	*	*	*
(c) Fuel types. The exhaust emission standards in this section apply for engines using the fuel type on which the engines in the emission family are designed to operate.  You must meet the numerical emission standards for hydrocarbon in this section based on the following types of hydrocarbon emissions for engines powered by the following fuels:
*	*	*	*	*
245. Amend §1054.110 by revising paragraph (b) to read as follows:
§1054.110  What evaporative emission standards must my handheld equipment meet?
*	*	*	*	*
(b) Tank permeation. Fuel tanks must meet the permeation requirements specified in 40 CFR 1060.103. These requirements apply for handheld equipment starting in the 2010 model year, except that they apply starting in the 2011 model year for structurally integrated nylon fuel tanks, in the 2012 model year for handheld equipment using nonhandheld engines, and in the 2013 model year for all small-volume emission families. For nonhandheld equipment using engines at or below 80 cc, the requirements of this paragraph (b) apply starting in the 2012 model year. You may generate or use emission credits to show compliance with the requirements of this paragraph (b) under the averaging, banking, and trading program as described in subpart H of this part. FEL caps apply as specified in §1054.112(b)(1) through (3) starting in the 2015 model year.
*	*	*	*	*

246. Amend §1054.120 by revising paragraph (c) to read as follows:
§1054.120  What emission-related warranty requirements apply to me?
*	*	*	*	*
(c) Components covered. The emission-related warranty covers all components whose failure would increase an engine's emissions of any regulated pollutant, including components listed in 40 CFR part 1068, Appendix I, and components from any other system you develop to control emissions.  The emission-related warranty covers these components even if another company produces the component.  Your emission-related warranty does not need to cover components whose failure would not increase an engine's emissions of any regulated pollutant.
*	*	*	*	*

247. Amend §1054.125 by revising the introductory text and paragraphs (c) and (e) to read as follows:
§1054.125  What maintenance instructions must I give to buyers?
Give the ultimate purchaser of each new engine written instructions for properly maintaining and using the engine, including the emission control system as described in this section. The maintenance instructions also apply to service accumulation on your emission-data engines as described in §1054.245 and in 40 CFR part 1065.
*	*	*	*	*
(c) Special maintenance. You may specify more frequent maintenance to address problems related to special situations, such as atypical engine operation.  You must clearly state that this additional maintenance is associated with the special situation you are addressing.  You may also address maintenance of low-use engines (such as recreational or stand-by engines) by specifying the maintenance interval in terms of calendar months or years in addition to your specifications in terms of engine operating hours.  All special maintenance instructions must be consistent with good engineering judgment.  We may disapprove your maintenance instructions if we determine that you have specified special maintenance steps to address engine operation that is not atypical, or that the maintenance is unlikely to occur in use.  For example, this paragraph (c) does not allow you to design engines that require special maintenance for a certain type of expected operation.  If we determine that certain maintenance items do not qualify as special maintenance under this paragraph (c), you may identify this as recommended additional maintenance under paragraph (b) of this section.
*	*	*	*	*
(e) Maintenance that is not emission-related. For maintenance unrelated to emission controls, you may schedule any amount of inspection or maintenance.  You may also take these inspection or maintenance steps during service accumulation on your emission-data engines, as long as they are reasonable and technologically necessary.  This might include adding engine oil, changing fuel or oil filters, servicing engine-cooling systems, and adjusting idle speed, governor, engine bolt torque, valve lash, or injector lash.  You may not perform this nonemission-related maintenance on emission-data engines more often than the least frequent intervals that you recommend to the ultimate purchaser.
*	*	*	*	*

248. Amend §1054.130 by revising paragraphs (b)(2) and (5) to read as follows:
§1054.130  What installation instructions must I give to equipment manufacturers?
*	*	*	*	*
(b)	*	*	*
(2) State: "Failing to follow these instructions when installing a certified engine in a piece of equipment violates federal law (40 CFR 1068.105(b)), subject to fines or other penalties as described in the Clean Air Act."
*	*	*	*	*
(5) Describe how your certification is limited for any type of application. For example, if you certify engines only for rated-speed applications, tell equipment manufacturers that the engine must not be installed in equipment involving intermediate-speed operation.  Also, if your wintertime engines are not certified to the otherwise applicable HC+NOx standards, tell equipment manufacturers that the engines must be installed in equipment that is used only in wintertime.
*	*	*	*	*

249. Amend §1054.135 by revising paragraphs (c)(2) and (e)(1) to read as follows:
§1054.135  How must I label and identify the engines I produce?
*	*	*	*	*
(c)	*	*	*
(2) Include your full corporate name and trademark.  You may identify another company and use its trademark instead of yours if you comply with the branding provisions of 40 CFR 1068.45.
*	*	*	*	*
(e)	*	*	*
(1) You may identify other emission standards that the engine meets or does not meet (such as California standards), as long as this does not cause you to omit any of the information described in paragraph (c) of this section. You may include this information by adding it to the statement we specify or by including a separate statement.
*	*	*	*	*

250. Revise §1054.145 to read as follows:
§1054.145  Are there interim provisions that apply only for a limited time?
The provisions in this section apply instead of other provisions in this part.  This section describes how and when these interim provisions apply.
(a)  -  (b) [Reserved]
(c) Special provisions for handheld engines. Handheld engines subject to Phase 3 emission standards must meet the standards at or above barometric pressures of 96.0 kPa in the standard configuration and are not required to meet emission standards at lower barometric pressures. This is intended to allow testing under most weather conditions at all altitudes up to 1,100 feet above sea level. In your application for certification, identify the altitude above which you rely on an altitude kit and describe your plan for making information and parts available such that you would reasonably expect that altitude kits would be widely used at all such altitudes.
(d) Alignment of model years for exhaust and evaporative standards.  Evaporative emission standards generally apply based on the model year of the equipment, which is determined by the equipment's date of final assembly.  However, in the first year of new emission standards, equipment manufacturers may apply evaporative emission standards based on the model year of the engine as shown on the engine's emission control information label.  For example, for the fuel line permeation standards starting in 2012, equipment manufacturers may order a batch of 2011 model year engines for installation in 2012 model year equipment, subject to the anti-stockpiling provisions of 40 CFR 1068.105(a).  The equipment with the 2011 model year engines would not need to meet fuel line permeation standards, as long as the equipment is fully assembled by December 31, 2012.
(e) [Reserved]
(f) Early banking for evaporative emission standards -- handheld equipment manufacturers. You may earn emission credits for handheld equipment you produce before the evaporative emission standards of §1054.110 apply.  To do this, your equipment must use fuel tanks with a family emission limit below 1.5 g/m2/day (or 2.5 g/m2/day for testing at 40°C).  Calculate your credits as described in §1054.706 based on the difference between the family emission limit and 1.5 g/m2/day (or 2.5 g/m2/day for testing at 40°C).
(g) through (i) [Reserved]
(j) Continued use of 40 CFR part 90 test data. You may continue to use data based on the test procedures that apply for engines built before the requirements of this part 1054 start to apply if we allow you to use carryover emission data under 40 CFR 1054.235(d) for your emission family. You may also use those test procedures for measuring exhaust emissions for production-line testing with any engine family whose certification is based on testing with those procedures. For any EPA testing, we will rely on the procedures described in subpart F of this part, even if you used carryover data based on older test procedures as allowed under this paragraph (j).
(k)  -  (m) [Reserved]
(n) California test fuel.  You may perform testing with a fuel meeting the requirements for certifying the engine in California instead of the fuel specified in §1054.501(b)(2), as follows:
   (1) You may certify individual engine families using data from testing conducted with California Phase 2 test fuel through model year 2019.  Any EPA testing with such an engine family may use either this same certification fuel or the test fuel specified in §1054.501.
   (2) Starting in model year 2013, you may certify individual engine families using data from testing conducted with California Phase 3 test fuel.  Any EPA testing with such an engine family may use either this same certification fuel or the test fuel specified in §1054.501, unless you certify to the more stringent CO standards specified in this paragraph (n)(2).  If you meet these alternate CO standards, we will also use California Phase 3 test fuel for any testing we perform with engines from that engine family.  The following alternate CO standards apply instead of the CO standards specified in §1054.103 or §1054.105:
   Table 1 to §1054.145 -- Alternate CO Standards
   for Testing with California Phase 3 Test Fuel [g/kW-hr]
Engine type
Alternate CO standard
Class I
549
Class II
549
Class III
536
Class IV
536
Class V
536
Marine generators
4.5

251. Amend §1054.205 by revising paragraphs (o)(1), (p)(1), (v), and (x) to read as follows:
§1054.205  What must I include in my application?
*	*	*	*	*
(o)	*	*	*
(1) Present emission data for hydrocarbon (such as THC, THCE, or NMHC, as applicable), NOx, and CO on an emission-data engine to show your engines meet the applicable exhaust emission standards as specified in §1054.101.  Show emission figures before and after applying deterioration factors for each engine.  Include test data from each applicable duty cycle specified in §1054.505(b).  If we specify more than one grade of any fuel type (for example, low-temperature and all-season gasoline), you need to submit test data only for one grade, unless the regulations of this part specify otherwise for your engine.
*	*	*	*	*
(p)	*	*	*
(1)  Report all valid test results involving measurement of pollutants for which emission standards apply.  Also indicate whether there are test results from invalid tests or from any other tests of the emission-data engine, whether or not they were conducted according to the test procedures of subpart F of this part.  We may require you to report these additional test results. We may ask you to send other information to confirm that your tests were valid under the requirements of this part and 40 CFR parts 1060 and 1065.
*	*	*	*	*
(v) Provide the following information about your plans for producing and selling engines:
   (1) Identify the estimated initial and final dates for producing engines from the engine family for the model year.
   (2) Identify the estimated date for initially introducing certified engines into U.S. commerce under this certificate.
   (3) Include good-faith estimates of U.S.-directed production volumes.  Include a justification for the estimated production volumes if they are substantially different than actual production volumes in earlier years for similar models.  Also indicate whether you expect the engine family to contain only nonroad engines, only stationary engines, or both.
*	*	*	*	*
(x) Include the information required by other subparts of this part.  For example, include the information required by §1054.725 if you participate in the ABT program and include the information required by §1054.690 if you need to post a bond under that section.
*	*	*	*	*

252. Amend §1054.220 by revising the section heading to read as follows.
§1054.220  How do I amend my maintenance instructions?
*	*	*	*	*

253. Amend §1054.225 by:
a. Revising the section heading and paragraphs (b) and (f) introductory text; and
b. Adding paragraph (g).
The revisions and addition read as follows:
§1054.225  How do I amend my application for certification?
*	*	*	*	*
(b) To amend your application for certification, send the relevant information to the Designated Compliance Officer.
   (1) Describe in detail the addition or change in the model or configuration you intend to make.
   (2) Include engineering evaluations or data showing that the amended emission family complies with all applicable requirements.  You may do this by showing that the original emission-data engine or emission-data equipment is still appropriate for showing that the amended family complies with all applicable requirements.
   (3) If the original emission-data engine for the engine family is not appropriate to show compliance for the new or modified engine configuration, include new test data showing that the new or modified engine configuration meets the requirements of this part.
   (4) Include any other information needed to make your application correct and complete.
*	*	*	*	*
(f) You may ask us to approve a change to your FEL with respect to exhaust emissions in certain cases after the start of production.  The changed FEL may not apply to engines you have already introduced into U.S. commerce, except as described in this paragraph (f).  If we approve a changed FEL after the start of production, you must identify the month and year for applying the new FEL.  You may ask us to approve a change to your FEL in the following cases:
*	*	*	*	*(g) You may produce engines as described in your amended application for certification and consider those engines to be in a certified configuration if we approve a new or modified engine configuration during the model year under paragraph (d) of this section. Similarly, you may modify in-use engines as described in your amended application for certification and consider those engines to be in a certified configuration if we approve a new or modified engine configuration at any time under paragraph (d) of this section. Modifying a new or in-use engine to be in a certified configuration does not violate the tampering prohibition of 40 CFR 1068.101(b)(1), as long as this does not involve changing to a certified configuration with a higher family emission limit.

254. Amend §1054.235 by revising the section heading and paragraphs (a), (b), (c), and (d) to read as follows:
§1054.235  What testing requirements apply for certification?
*	*	*	*	*
(a) Select an emission-data engine from each engine family for testing as described in 40 CFR 1065.401.  Select a configuration and set adjustable parameters in a way that is most likely to exceed the HC+NOx standard, using good engineering judgment.  Configurations must be tested as they will be produced, including installed governors, if applicable.
(b) Test your emission-data engines using the procedures and equipment specified in subpart F of this part.  In the case of dual-fuel engines, measure emissions when operating with each type of fuel for which you intend to certify the engine.  In the case of flexible-fuel engines, measure emissions when operating with the fuel mixture that is most likely to cause the engine to exceed the applicable HC+NOx emission standard, though you may ask us to instead perform tests with both fuels separately if you can show that intermediate mixtures are not likely to occur in use.
(c) We may perform confirmatory testing by measuring emissions from any of your emission-data engines or other engines from the emission family, as follows:
   (1) We may decide to do the testing at your plant or any other facility.  If we do this, you must deliver the engine to a test facility we designate.  The engine you provide must include appropriate manifolds, aftertreatment devices, electronic control units, and other emission-related components not normally attached directly to the engine block.  If we do the testing at your plant, you must schedule it as soon as possible and make available the instruments, personnel, and equipment we need.
   (2) If we measure emissions on one of your engines, the results of that testing become the official emission results for the engine.
   (3) We may set the adjustable parameters of your engine to any point within the physically adjustable ranges (see §1054.115(b)).
   (4) Before we test one of your engines, we may calibrate it within normal production tolerances for anything we do not consider an adjustable parameter.  For example, this would apply for a parameter that is subject to production variability because it is adjustable during production, but is not considered an adjustable parameter (as defined in §1054.801) because it is permanently sealed.
(d) You may ask to use carryover emission data from a previous model year instead of doing new tests, but only if all the following are true:
   (1) The emission family from the previous model year differs from the current emission family only with respect to model year, items identified in §1054.225(a), or other characteristics unrelated to emissions. We may waive this criterion for differences we determine not to be relevant.
   (2) The emission-data engine from the previous model year remains the appropriate emission-data engine under paragraph (b) of this section.
    (3) The data show that the emission-data engine would meet all the requirements that apply to the emission family covered by the application for certification.
*	*	*	*	*

255. Amend §1054.240 by revising paragraphs (a), (b), (c), and (d) to read as follows:
§1054.240  How do I demonstrate that my emission family complies with exhaust emission standards?
(a) For purposes of certification, your emission family is considered in compliance with the emission standards in §1054.101(a) if all emission-data engines representing that family have test results showing official emission results and deteriorated emission levels at or below these standards.  This also applies for all test points for emission-data engines within the family used to establish deterioration factors.  Note that your FELs are considered to be the applicable emission standards with which you must comply if you participate in the ABT program in subpart H of this part.
(b) Your engine family is deemed not to comply if any emission-data engine representing that family has test results showing an official emission result or a deteriorated emission level for any pollutant that is above an applicable emission standard.  This also applies for all test points for emission-data engines within the family used to establish deterioration factors.
(c) Determine a deterioration factor to compare emission levels from the emission-data engine with the applicable emission standards.  Section 1054.245 specifies how to test engines to develop deterioration factors that represent the expected deterioration in emissions over your engines' full useful life. Calculate a multiplicative deterioration factor as described in §1054.245(b).  If the deterioration factor is less than one, use one.  Specify the deterioration factor to one more significant figure than the emission standard.  In the case of dual-fuel and flexible-fuel engines, apply deterioration factors separately for each fuel type. You may use assigned deterioration factors that we establish for up to 10,000 nonhandheld engines from small-volume emission families in each model year, except that small-volume engine manufacturers may use assigned deterioration factors for any or all of their engine families.
(d) Determine the official emission result for each pollutant to at least one more decimal place than the applicable standard. Apply the deterioration factor to the official emission result, as described in §1054.245(b), then round the adjusted figure to the same number of decimal places as the emission standard.  Compare the rounded emission levels to the emission standard for each emission-data engine.  In the case of HC+NOx standards, add the official emission results and apply the deterioration factor to the sum of the pollutants before rounding.  However, if your deterioration factors are based on emission measurements that do not cover the engine's full useful life, apply deterioration factors to each pollutant and then add the results before rounding.
*	*	*	*	*

256. Amend §1054.245 by:
a. Revising paragraphs (a), (b)(1), (b)(2), (b)(3), (b)(5), and (c); and
b. Adding paragraph (d).
The revisions and addition read as follows:
§1054.245  How do I determine deterioration factors from exhaust durability testing?
*	*	*	*	*
(a) You may ask us to approve deterioration factors for an emission family based on emission measurements from similar engines if you have already given us these data for certifying other engines in the same or earlier model years.  Use good engineering judgment to decide whether the two engines are similar. We will approve your request if you show us that the emission measurements from other engines reasonably represent in-use deterioration for the engine family for which you have not yet determined deterioration factors.
(b)	*	*	*
   (1) Measure emissions from the emission-data engine at a low-hour test point, at the midpoint of the useful life, and at the end of the useful life, except as specifically allowed by this paragraph (b). You may test at additional evenly spaced intermediate points.  Collect emission data using measurements to at least one more decimal place than the emission standard.
   (2) Operate the engine over a duty cycle that is representative of in-use operation for a period at least as long as the useful life (in hours). You may operate the engine continuously. You may also use an engine installed in nonroad equipment to accumulate service hours instead of running the engine only in the laboratory.
   (3) In the case of dual-fuel or flexible-fuel engines, you may accumulate service hours on a single emission-data engine using the type or mixture of fuel expected to have the highest combustion and exhaust temperatures; you may ask us to approve a different fuel mixture for flexible-fuel engines if you demonstrate that a different criterion is more appropriate.  For dual-fuel engines, you must measure emissions on each fuel type at each test point, either with separate engines dedicated to a given fuel, or with different configurations of a single engine.
   *	*	*	*	*
   (5) Calculate your deterioration factor using a linear least-squares fit of your test data but treat the low-hour test point as occurring at hour zero. Your deterioration factor is the ratio of the calculated emission level at the point representing the full useful life to the calculated emission level at zero hours, expressed to one more significant figure than the emission standard.
*	*	*	*	*
(c) If you qualify for using assigned deterioration factors under §1054.240, determine the deterioration factors as follows:
   (1) For two-stroke engines without aftertreatment, use a deterioration factor of 1.1 for HC, NOx, and CO. For four-stroke engines without aftertreatment, use deterioration factors of 1.4 for HC, 1.0 for NOx, and 1.1 for CO for Class 2 engines, and use 1.5 for HC and NOx, and 1.1 for CO for all other engines.
   (2) For Class 2 engines with aftertreatment, use a deterioration factor of 1.0 for NOx. For all other cases involving engines with aftertreatment, calculate separate deterioration factors for HC, NOx, and CO using the following equation:

   Where:
   NE = engine-out emission levels (pre-catalyst) from the low-hour test result for a given pollutant, in g/kW-hr.
   EDF = the deterioration factor specified in paragraph (c)(1) of this section for the type of engine for a given pollutant.
   CC = the catalyst conversion from the low-hour test, in g/kW-hr. This is the difference between the official emission result and NE.
   F = 1.0 for NOx and 0.8 for HC and CO.

   (3) Combine separate deterioration factors for HC and NOx from paragraph (c)(2) of this section into a combined deterioration factor for HC+NOx using the following equation:

(d) Include the following information in your application for certification:
   (1) If you determine your deterioration factors based on test data from a different emission family, explain why this is appropriate and include all the emission measurements on which you base the deterioration factor.
   (2) If you do testing to determine deterioration factors, describe the form and extent of service accumulation, including the method you use to accumulate hours.
   (3) If you calculate deterioration factors under paragraph (c) of this section, identify the parameters and variables you used for the calculation.

257. Amend §1054.250 by:
a. Removing and reserving paragraph (a)(3); and
b. Revising paragraphs (b)(3)(iv) and (c).
The revisions read as follows:
§1054.250  What records must I keep and what reports must I send to EPA?
*	*	*	*	*
(b)	*	*	*
(3)	*	*	*
(iv) All your emission tests (valid and invalid), including the date and purpose of each test and documentation of test parameters as specified in part 40 CFR part 1065.
*	*	*	*	*
(c) Keep required data from emission tests and all other information specified in this section for eight years after we issue your certificate. If you use the same emission data or other information for a later model year, the eight-year period restarts with each year that you continue to rely on the information.
*	*	*	*	*

258. Revise §1054.255 to read as follows:
§1054.255  What decisions may EPA make regarding a certificate of conformity?
(a) If we determine an application is complete and shows that the emission family meets all the requirements of this part and the Clean Air Act, we will issue a certificate of conformity for the emission family for that model year. We may make the approval subject to additional conditions.
(b) We may deny an application for certification if we determine that an emission family fails to comply with emission standards or other requirements of this part or the Clean Air Act. We will base our decision on all available information. If we deny an application, we will explain why in writing.
(c) In addition, we may deny your application or suspend or revoke a certificate of conformity if you do any of the following:
   (1) Refuse to comply with any testing, reporting, or bonding requirements.
   (2) Submit false or incomplete information. This includes doing anything after submitting an application that causes submitted information to be false or incomplete.
   (3) Cause any test data to become inaccurate.
   (4) Deny us from completing authorized activities (see 40 CFR 1068.20). This includes a failure to provide reasonable assistance.
   (5) Produce engines or equipment for importation into the United States at a location where local law prohibits us from carrying out authorized activities.
   (6) Fail to supply requested information or amend an application to include all engines or equipment being produced.
   (7) Take any action that otherwise circumvents the intent of the Clean Air Act or this part.
(d) We may void a certificate of conformity if you fail to keep records, send reports, or give us information as required under this part or the Clean Air Act. Note that these are also violations of 40 CFR 1068.101(a)(2).
(e) We may void a certificate of conformity if we find that you intentionally submitted false or incomplete information. This includes doing anything after submitting your application that causes the submitted information to be false or incomplete.
(f) If we deny an application or suspend, revoke, or void a certificate of conformity, you may ask for a hearing (see §1054.820).

259. Amend §1054.301 by revising paragraph (a)(2) to read as follows:
§1054.301  When must I test my production-line engines?
(a)	*	*	*
(2) We may exempt small-volume emission families from routine testing under this subpart.  Submit your request for approval as described in §1054.210. In your request, describe your basis for projecting a production volume below 5,000 units.  We will approve your request if we agree that you have made good-faith estimates of your production volumes.  You must promptly notify us if your actual production exceeds 5,000 units during the model year.  If you exceed the production limit or if there is evidence of a nonconformity, we may require you to test production-line engines under this subpart, or under 40 CFR part 1068, subpart E, even if we have approved an exemption under this paragraph (a)(2).
*	*	*	*	*

260. Amend §1054.310 by revising paragraph (a)(1) introductory text, paragraphs (a)(1)(iv), and (c)(2) introductory text to read as follows:
§1054.310  How must I select engines for production-line testing?
(a)	*	*	*
(1) For engine families with projected U.S.-directed production volume of at least 1,600, the test periods are defined as follows:
*	*	*	*	*
(iv) If your annual production period is 301 days or longer, divide the annual production period evenly into four test periods. For example, if your annual production period is 392 days (56 weeks), divide the annual production period into four test periods of 98 days (14 weeks).
*	*	*	*	*
(c)	*	*	*
(2)  Calculate the standard deviation, σ, for the test sample using the following formula:
*	*	*	*	*

261. Amend §1054.315 by revising paragraph (a)(1) to read as follows:
§1054.315  How do I know when my engine family fails the production-line testing requirements?
*	*	*	*	*
(a)	*	*	*
(1) Initial and final test results.  Calculate and round the test results for each engine.  If you do multiple tests on an engine in a given configuration (without modifying the engine), calculate the initial results for each test, then add all the test results together and divide by the number of tests.  Round this final calculated value for the final test results on that engine.
*	*	*	*	*
262. Amend §1054.320 by adding paragraph (c) to read as follows:
§1054.320  What happens if one of my production-line engines fails to meet emission standards?
*	*	*	*	*
(c) Use test data from a failing engine for the compliance demonstration under §1054.315 as follows:
   (1) Use the original, failing test results as described in §1054.315, whether or not you modify the engine or destroy it.
   (2) Do not use test results from a modified engine as final test results under §1054.315, unless you change your production process for all engines to match the adjustments you made to the failing engine. If this occurs, count the modified engine as the next engine in the sequence, rather than averaging the results with the testing that occurred before modifying the engine.

263. Amend §1054.501 by revising paragraphs (b)(1) and (2) and paragraph (b)(4) introductory text to read as follows:
§1054.501  How do I run a valid emission test?
*	*	*	*	*
(b)	*	*	*
(1) Measure the emissions of all exhaust constituents subject to emission standards as specified in §1054.505 and 40 CFR part 1065. Measure CO2, N2O, and CH4 as described in §1054.235. See §1054.650 for special provisions that apply for variable-speed engines (including engines shipped without governors).
(2) Use the appropriate fuels and lubricants specified in 40 CFR part 1065, subpart H, for all the testing we require in this part. Gasoline test fuel must meet the specifications in 40 CFR 1065.710(c), except as specified in §1054.145(n), 40 CFR 1065.10, and 40 CFR 1065.701. Use gasoline specified for general testing except as specified in paragraph (d) of this section. For service accumulation, use the test fuel or any commercially available fuel that is representative of the fuel that in-use engines will use. Note that §1054.145(n) allows for testing with gasoline test fuels specified by the California Air Resources Board for any individual engine family.
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(4) The provisions of 40 CFR 1065.405 describe how to prepare an engine for testing.  However, you may consider emission levels stable without measurement after 12 hours of engine operation, except for the following special provisions that apply for engine families with a useful life of 300 hours or less:
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264. Amend §1054.505 by revising paragraph (b)(2) to read as follows:
§1054.505   How do I test engines?
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(b) *	*	*