include features that recover and store energy from braking but that
cannot function as hybrids without the transmission. These powertrains
must have a single output shaft to the final drive and are tested by
simulating the chassis test procedure applicable for hybrid vehicles
under 40 CFR 1037.550. You need our approval before you begin testing.
    (b) Rankine engines. Test engines that include Rankine-cycle
exhaust energy recovery systems according to the test procedures
specified in subpart F of this part unless we approve alternate
procedures.
    (c) Calculating credits. Calculate credits as specified in subpart
H of this part. Credits generated from engines and powertrains
certified under this section may be used in other averaging sets as
described in Sec.  1036.740(d). Credits may not be generated under this
section and 40 CFR 1037.615 for the same technology on the same
vehicle.
    (d) Innovative technologies. You may certify using both provisions
of this section and the innovative technology provisions of Sec.
1036.610, provided you do not double count emission benefits.

Sec.  1036.620  Alternate CO2 standards based on model year 2011
compression-ignition engines.

    For model years 2014 through 2016, you may certify your
compression-ignition engines to the CO2 standards of this
section instead of the CO2 standards in Sec.  1036.108.
However, you may not certify engines to these alternate standards if
they are part of an averaging set in which you carry a balance of
banked credits. You may submit applications for certifications before
using up banked credits in the averaging set, but such certificates
will not become effective until you have used up (or retired) your
banked credits in the averaging set. For purposes of this section, you
are deemed to carry credits

in an averaging set if you carry credits from advanced technology that
are allowed to be used in that averaging set.
    (a) The standards of this section are determined from the measured
emission rate of the test engine of the applicable baseline 2011 engine
family(ies) as described in paragraphs (b) and (c) of this section.
Calculate the CO2 emission rate of the baseline test engine
using the same equations used for showing compliance with the otherwise
applicable standard. The alternate CO2 standard for light
and medium heavy-duty vocational-certified engines (certified for
CO2 using the transient cycle) is equal to the baseline
emission rate multiplied by 0.975. The alternate CO2
standard for tractor-certified engines (certified for CO2
using the SET cycle) and all other heavy heavy-duty engines is equal to
the baseline emission rate multiplied by 0.970. The in-use FEL for
these engines is equal to the alternate standard multiplied by 1.03.
    (b) This paragraph (b) applies if you do not certify all your
engine families in the averaging set to the alternate standards of this
section. Identify separate baseline engine families for each engine
family that you are certifying to the alternate standards of this
section. For an engine family to be considered the baseline engine
family, it must meet the following criteria:
    (1) It must have been certified to all applicable emission
standards in model year 2011. If the baseline engine was certified to a
NOX FEL above the standard and incorporated the same
emission control technologies as the new engine family, you may adjust
the baseline CO2 emission rate to be equivalent to an engine
meeting the 0.20 g/hp-hr NOX standard (or your higher FEL as
specified in this paragraph (b)(1)), using certification results from
model years 2009 through 2011, consistent with good engineering
judgment.
    (i) Use the following equation to relate model year 2009-2011
NOX and CO2 emission rates (g/hp-hr):
CO2 = a x log(NOX)+b.
    (ii) For model year 2014-2016 engines certified to NOX
FELs above 0.20 g/hp-hr, correct the baseline CO2 emissions
to the actual NOX FELs of the 2014-2016 engines.
    (iii) Calculate separate adjustments for transient and SET
emissions.
    (2) The baseline configuration tested for certification must have
the same engine displacement as the engines in the engine family being
certified to the alternate standards, and its rated power must be
within five percent of the highest rated power in the engine family
being certified to the alternate standards.
    (3) The model year 2011 U.S.-directed production volume of the
configuration tested must be at least one percent of the total 2011
U.S.-directed production volume for the engine family.
    (4) The tested configuration must have cycle-weighted BSFC
equivalent to or better than all other configurations in the engine
family.
    (c) This paragraph (c) applies if you certify all your engine
families in the primary intended service class to the alternate
standards of this section. For purposes of this section, you may
combine light heavy-duty and medium heavy-duty engines into a single
averaging set. Determine your baseline CO2 emission rate as
the production-weighted emission rate of the certified engine families
you produced in the 2011 model year. If you produce engines for both
tractors and vocational vehicles, treat them as separate averaging
sets. Adjust the CO2 emission rates to be equivalent to an
engine meeting the average NOX FEL of new engines (assuming
engines certified to the 0.20 g/hp-hr NOX standard have a
NOX FEL equal to 0.20 g/hp-hr), as described in paragraph
(b)(1) of this section.
    (d) Include the following statement on the emission control
information label: ``THIS ENGINE WAS CERTIFIED TO AN ALTERNATE
CO2 STANDARD UNDER Sec.  1036.620.''
    (e) You may not bank CO2 emission credits for any engine
family in the same averaging set and model year in which you certify
engines to the standards of this section. You may not bank any advanced
technology credits in any averaging set for the model year you certify
under this section (since such credits would be available for use in
this averaging set). Note that the provisions of Sec.  1036.745 apply
for deficits generated with respect to the standards of this section.
    (f) You need our approval before you may certify engines under this
section, especially with respect to the numerical value of the
alternate standards. We will not approve your request if we determine
that you manipulated your engine families or test engine configurations
to certify to less stringent standards, or that you otherwise have not
acted in good faith. You must keep and provide to us any information we
need to determine that your engine families meet the requirements of
this section. Keep these records for at least five years after you stop
producing engines certified under this section.

Sec.  1036.625  In-use compliance with family emission limits (FELs).

    You may ask us to apply a higher in-use FEL for certain in-use
engines, subject to the provisions of this section. Note that Sec.
1036.225 contains provisions related to changing FELs during a model
year.
    (a) Purpose. This section is intended to address circumstances in
which it is in the public interest to apply a higher in-use FEL based
on forfeiting an appropriate number of emission credits.
    (b) FELs. When applying higher in-use FELs to your engines, we
would intend to accurately reflect the actual in-use performance of
your engines, consistent with the specified testing provisions of this
part.
    (c) Equivalent families. We may apply the higher FELs to other
families in other model years if they used equivalent emission
controls.
    (d) Credit forfeiture. Where we specify higher in-use FELs under
this section, you must forfeit CO2 emission credits based on
the difference between the in-use FEL and the otherwise applicable FEL.
Calculate the amount of credits to be forfeited using the applicable
equation in Sec.  1036.705, by substituting the otherwise applicable
FEL for the standard and the in-use FEL for the otherwise applicable
FEL.
    (e) Requests. Submit your request to the Designated Compliance
Officer. Include the following in your request:
    (1) The engine family name and model year of the engines affected.
    (2) A list of other engine families/model years that may be
affected.
    (3) The otherwise applicable FEL for the engine families along with
your recommendations for higher in-use FELs.
    (4) Your source of credits for forfeiture.
    (f) Relation to recall. You may not request higher in-use FELs for
any engine families for which we have made a determination of
nonconformance and ordered a recall. You may, however, make such
requests for engine families for which you are performing a voluntary
emission recall.
    (g) Approval. We may approve your request if we determine that you
meet the requirements of this section and such approval is in the
public interest. We may include appropriate conditions with our
approval or we may approve your request with modifications.

Subpart H--Averaging, Banking, and Trading for Certification

Sec.  1036.701  General provisions.

    (a) You may average, bank, and trade (ABT) emission credits for
purposes of

certification as described in this subpart and in subpart B of this
part to show compliance with the standards of Sec.  1036.108.
Participation in this program is voluntary. (Note: As described in
subpart B of this part, you must assign an FCL to all engine families,
whether or not they participate in the ABT provisions of this subpart.)
    (b) [Reserved]
    (c) The definitions of subpart I of this part apply to this
subpart. The following definitions also apply:
    (1) Actual emission credits means emission credits you have
generated that we have verified by reviewing your final report.
    (2) Averaging set means a set of engines in which emission credits
may be exchanged. Credits generated by one engine may only be used by
other engines in the same averaging set. See Sec.  1036.740.
    (3) Broker means any entity that facilitates a trade of emission
credits between a buyer and seller.
    (4) Buyer means the entity that receives emission credits as a
result of a trade.
    (5) Reserved emission credits means emission credits you have
generated that we have not yet verified by reviewing your final report.
    (6) Seller means the entity that provides emission credits during a
trade.
    (7) Standard means the emission standard that applies under subpart
B of this part for engines not participating in the ABT program of this
subpart.
    (8) Trade means to exchange emission credits, either as a buyer or
seller.
    (d) Emission credits may be exchanged only within an averaging set
as specified in Sec.  1036.740.
    (e) You may not use emission credits generated under this subpart
to offset any emissions that exceed an FCL or standard. This applies
for all testing, including certification testing, in-use testing,
selective enforcement audits, and other production-line testing.
However, if emissions from an engine exceed an FCL or standard (for
example, during a selective enforcement audit), you may use emission
credits to recertify the engine family with a higher FCL that applies
only to future production.
    (f) Emission credits may be used in the model year they are
generated. Surplus emission credits may be banked for future model
years. Surplus emission credits may sometimes be used for past model
years, as described in Sec.  1036.745.
    (g) You may increase or decrease an FCL during the model year by
amending your application for certification under Sec.  1036.225. The
new FCL may apply only to engines you have not already introduced into
commerce.
    (h) You may trade emission credits generated from any number of
your engines to the engine purchasers or other parties to retire the
credits. Identify any such credits in the reports described in Sec.
1036.730. Engines must comply with the applicable FELs even if you
donate or sell the corresponding emission credits under this paragraph
(h). Those credits may no longer be used by anyone to demonstrate
compliance with any EPA emission standards.
    (i) See Sec.  1036.740 for special credit provisions that apply for
credits generated under Sec.  1036.615 or 40 CFR 1037.104(d)(7) or
1037.615.
    (j) Unless the regulations explicitly allow it, you may not
calculate credits more than once for any emission reduction. For
example, if you generate CO2 emission credits for a hybrid
engine under this part for a given vehicle, no one may generate
CO2 emission credits for that same hybrid engine and vehicle
under 40 CFR part 1037. However, credits could be generated for
identical vehicles using engines that did not generate credits under
this part.

Sec.  1036.705  Generating and calculating emission credits.

    (a) The provisions of this section apply separately for calculating
emission credits for each pollutant.
    (b) For each participating family, calculate positive or negative
emission credits relative to the otherwise applicable emission standard
based on the engine family's FCL for greenhouse gases. If your engine
family is certified to both the vocational and tractor engine
standards, calculate credits separately for the vocational engines and
the tractor engines (as specified in paragraph (b)(3) of this section).
Calculate positive emission credits for a family that has an FCL below
the standard. Calculate negative emission credits for a family that has
an FCL above the standard.
    Sum your positive and negative credits for the model year before
rounding. Round the sum of emission credits to the nearest megagram
(Mg), using consistent units throughout the following equations:
    (1) For vocational engines:
    Emission credits (Mg) = (Std-FCL) [middot] (CF) [middot] (Volume)
[middot] (UL) [middot] (10-6)

Where:

    Std = the emission standard, in g/hp-hr, that applies under
subpart B of this part for engines not participating in the ABT
program of this subpart (the ``otherwise applicable standard'').
    FCL = the Family Certification Level for the engine family, in
g/hp-hr, measured over the transient duty cycle, rounded to the same
number of decimal places as the emission standard.
    CF = a transient cycle conversion factor (hp-hr/mile),
calculated by dividing the total (integrated) horsepower-hour over
the duty cycle (average of vocational engine configurations weighted
by their production volumes) by 6.3 miles for spark-ignition engines
and 6.5 miles for compression-ignition engines. This represents the
average work performed by vocational engines in the family over the
mileage represented by operation over the duty cycle.
    Volume = the number of vocational engines eligible to
participate in the averaging, banking, and trading program within
the given engine family during the model year, as described in
paragraph (c) of this section.
    UL = the useful life for the given engine family, in miles.

    (2) For tractor engines:
    Emission credits (Mg) = (Std-FCL) [middot] (CF) [middot] (Volume)
[middot] (UL) [middot] (10-6)

Where:

    Std = the emission standard, in g/hp-hr, that applies under
subpart B of this part for engines not participating in the ABT
program of this subpart (the ``otherwise applicable standard'').
    FCL = the Family Certification Level for the engine family, in
g/hp-hr, measured over the SET duty cycle rounded to the same number
of decimal places as the emission standard.
    CF = a transient cycle conversion factor (hp-hr/mile),
calculated by dividing the total (integrated) horsepower-hour over
the duty cycle (average of tractor-engine configurations weighted by
their production volumes) by 6.3 miles for spark-ignition engines
and 6.5 miles for compression-ignition engines. This represents the
average work performed by tractor engines in the family over the
mileage represented by operation over the duty cycle. Note that this
calculation requires you to use the transient cycle conversion
factor even for engines certified to SET-based standards. Volume =
the number of tractor engines eligible to participate in the
averaging, banking, and trading program within the given engine
family during the model year, as described in paragraph (c) of this
section.
    UL = the useful life for the given engine family, in miles.

    (3) For engine families certified to both the vocational and
tractor engine standards, we may allow you to use statistical methods
to estimate the total production volumes where a small fraction of the
engines cannot be tracked precisely.
    (4) You may not generate emission credits for tractor engines
(i.e., engines not certified to the transient cycle for CO2)
installed in vocational vehicles (including vocational tractors
certified pursuant to 40 CFR 1037.630 or exempted pursuant to 40 CFR
1037.631). We will waive this requirement where you demonstrate

that less than five percent of the engines in your tractor family were
installed in vocational vehicles. For example, if you know that 96
percent of your tractor engines were installed in non-vocational
tractors, but cannot determine the vehicle type for the remaining four
percent, you may generate credits for all the engines in the family.
    (c) As described in Sec.  1036.730, compliance with the
requirements of this subpart is determined at the end of the model year
based on actual U.S.-directed production volumes. Keep appropriate
records to document these production volumes. Do not include any of the
following engines to calculate emission credits:
    (1) Engines that you do not certify to the CO2 standards
of this part because they are permanently exempted under subpart G of
this part or under 40 CFR part 1068.
    (2) Exported engines.
    (3) Engines not subject to the requirements of this part, such as
those excluded under Sec.  1036.5. For example, do not include engines
used in vehicles certified to the greenhouse gas standards of 40 CFR
1037.104.
    (4) [Reserved]
    (5) Any other engines if we indicate elsewhere in this part 1036
that they are not to be included in the calculations of this subpart.
    (d) You may use CO2 emission credits to show compliance
with CH4 and/or N2O FELs instead of the otherwise
applicable emission standards. To do this, calculate the CH4
and/or N2O emission credits needed (negative credits) using
the equation in paragraph (b) of this section, using the FEL(s) you
specify for your engines during certification instead of the FCL. You
must use 25 Mg of positive CO2 credits to offset 1 Mg of
negative CH4 credits. You must use 298 Mg of positive
CO2 credits to offset 1 Mg of negative N2O
credits.

Sec.  1036.710  Averaging.

    (a) Averaging is the exchange of emission credits among your engine
families. You may average emission credits only within the same
averaging set.
    (b) You may certify one or more engine families to an FCL above the
applicable standard, subject to any applicable FEL caps and other the
provisions in subpart B of this part, if you show in your application
for certification that your projected balance of all emission-credit
transactions in that model year is greater than or equal to zero, or
that a negative balance is allowed under Sec.  1036.745.
    (c) If you certify an engine family to an FCL that exceeds the
otherwise applicable standard, you must obtain enough emission credits
to offset the engine family's deficit by the due date for the final
report required in Sec.  1036.730. The emission credits used to address
the deficit may come from your other engine families that generate
emission credits in the same model year (or from later model years as
specified in Sec.  1036.745), from emission credits you have banked, or
from emission credits you obtain through trading.

Sec.  1036.715  Banking.

    (a) Banking is the retention of surplus emission credits by the
manufacturer generating the emission credits for use in future model
years for averaging or trading.
    (b) You may designate any emission credits you plan to bank in the
reports you submit under Sec.  1036.730 as reserved credits. During the
model year and before the due date for the final report, you may
designate your reserved emission credits for averaging or trading.
    (c) Reserved credits become actual emission credits when you submit
your final report. However, we may revoke these emission credits if we
are unable to verify them after reviewing your reports or auditing your
records.
    (d) Banked credits retain the designation of the averaging set in
which they were generated.

Sec.  1036.720  Trading.

    (a) Trading is the exchange of emission credits between
manufacturers, or the transfer of credits to another party to retire
them. You may use traded emission credits for averaging, banking, or
further trading transactions. Traded emission credits remain subject to
the averaging-set restrictions based on the averaging set in which they
were generated.
    (b) You may trade actual emission credits as described in this
subpart. You may also trade reserved emission credits, but we may
revoke these emission credits based on our review of your records or
reports or those of the company with which you traded emission credits.
You may trade banked credits within an averaging set to any certifying
manufacturer.
    (c) If a negative emission credit balance results from a
transaction, both the buyer and seller are liable, except in cases we
deem to involve fraud. See Sec.  1036.255(e) for cases involving fraud.
We may void the certificates of all engine families participating in a
trade that results in a manufacturer having a negative balance of
emission credits. See Sec.  1036.745.

Sec.  1036.725  What must I include in my application for
certification?

    (a) You must declare in your application for certification your
intent to use the provisions of this subpart for each engine family
that will be certified using the ABT program. You must also declare the
FELs/FCL you select for the engine family for each pollutant for which
you are using the ABT program. Your FELs must comply with the
specifications of subpart B of this part, including the FEL caps. FELs/
FCL must be expressed to the same number of decimal places as the
applicable standards.
    (b) Include the following in your application for certification:
    (1) A statement that, to the best of your belief, you will not have
a negative balance of emission credits for any averaging set when all
emission credits are calculated at the end of the year; or a statement
that you will have a negative balance of emission credits for one or
more averaging sets, but that it is allowed under Sec.  1036.745.
    (2) Detailed calculations of projected emission credits (positive
or negative) based on projected U.S.-directed production volumes. We
may require you to include similar calculations from your other engine
families to project your net credit balances for the model year. If you
project negative emission credits for a family, state the source of
positive emission credits you expect to use to offset the negative
emission credits.

Sec.  1036.730  ABT reports.

    (a) If any of your engine families are certified using the ABT
provisions of this subpart, you must send an end-of-year report within
90 days after the end of the model year and a final report within 270
days after the end of the model year.
    (b) Your end-of-year and final reports must include the following
information for each engine family participating in the ABT program:
    (1) Engine-family designation and averaging set.
    (2) The emission standards that would otherwise apply to the engine
family.
    (3) The FCL for each pollutant. If you change the FCL after the
start of production, identify the date that you started using the new
FCL and/or give the engine identification number for the first engine
covered by the new FCL. In this case, identify each applicable FCL and
calculate the positive or negative emission credits as specified in
Sec.  1036.225.

    (4) The projected and actual U.S.-directed production volumes for
the model year. If you changed an FCL during the model year, identify
the actual production volume associated with each FCL.
    (5) The transient cycle conversion factor for each engine
configuration as described in Sec.  1036.705.
    (6) Useful life.
    (7) Calculated positive or negative emission credits for the whole
engine family. Identify any emission credits that you traded, as
described in paragraph (d)(1) of this section.
    (c) Your end-of-year and final reports must include the following
additional information:
    (1) Show that your net balance of emission credits from all your
participating engine families in each averaging set in the applicable
model year is not negative, except as allowed under Sec.  1036.745.
    (2) State whether you will reserve any emission credits for
banking.
    (3) State that the report's contents are accurate.
    (d) If you trade emission credits, you must send us a report within
90 days after the transaction, as follows:
    (1) As the seller, you must include the following information in
your report:
    (i) The corporate names of the buyer and any brokers.
    (ii) A copy of any contracts related to the trade.
    (iii) The engine families that generated emission credits for the
trade, including the number of emission credits from each family.
    (2) As the buyer, you must include the following information in
your report:
    (i) The corporate names of the seller and any brokers.
    (ii) A copy of any contracts related to the trade.
    (iii) How you intend to use the emission credits, including the
number of emission credits you intend to apply to each engine family
(if known).
    (e) Send your reports electronically to the Designated Compliance
Officer using an approved information format. If you want to use a
different format, send us a written request with justification for a
waiver.
    (f) Correct errors in your end-of-year report or final report as
follows:
    (1) You may correct any errors in your end-of-year report when you
prepare the final report, as long as you send us the final report by
the time it is due.
    (2) If you or we determine within 270 days after the end of the
model year that errors mistakenly decreased your balance of emission
credits, you may correct the errors and recalculate the balance of
emission credits. You may not make these corrections for errors that
are determined more than 270 days after the end of the model year. If
you report a negative balance of emission credits, we may disallow
corrections under this paragraph (f)(2).
    (3) If you or we determine anytime that errors mistakenly increased
your balance of emission credits, you must correct the errors and
recalculate the balance of emission credits.

Sec.  1036.735  Recordkeeping.

    (a) You must organize and maintain your records as described in
this section. We may review your records at any time.
    (b) Keep the records required by this section for at least eight
years after the due date for the end-of-year report. You may not use
emission credits for any engines if you do not keep all the records
required under this section. You must therefore keep these records to
continue to bank valid credits. Store these records in any format and
on any media, as long as you can promptly send us organized, written
records in English if we ask for them. You must keep these records
readily available. We may review them at any time.
    (c) Keep a copy of the reports we require in Sec. Sec.  1036.725
and 1036.730.
    (d) Keep records of the engine identification number (usually the
serial number) for each engine you produce that generates or uses
emission credits under the ABT program. You may identify these numbers
as a range. If you change the FEL after the start of production,
identify the date you started using each FCL and the range of engine
identification numbers associated with each FCL. You must also identify
the purchaser and destination for each engine you produce to the extent
this information is available.
    (e) We may require you to keep additional records or to send us
relevant information not required by this section in accordance with
the Clean Air Act.

Sec.  1036.740  Restrictions for using emission credits.

    The following restrictions apply for using emission credits:
    (a) Averaging sets. Except as specified in paragraph (c) of this
section, emission credits may be exchanged only within an following
averaging sets There are four principal averaging sets for engines
subject to this subpart:
    (1) Spark-ignition engines.
    (2) Compression-ignition light heavy-duty engines.
    (3) Compression-ignition medium heavy-duty engines.
    (4) Compression-ignition heavy heavy-duty engines.
    (b) Applying credits to prior year deficits. Where your credit
balance for the previous year is negative, you may apply credits to
that credit deficit only after meeting your credit obligations for the
current year.
    (c) Credits from hybrid engines and other advanced technologies.
The averaging set restrictions of paragraph (a) of this section do not
apply for credits generated under Sec.  1036.615 or 40 CFR
1037.104(d)(7) or 1037.615 from hybrid power systems with regenerative
braking, or from other advanced technologies. Such credits may also be
used under 40 CFR part 1037.
    (1) The maximum amount of credits you may bring into the following
service class groups is 60,000 Mg per model year:
    (i) Spark-ignition engines, light heavy-duty compression-ignition
engines, and light heavy-duty vehicles. This group comprises the
averaging sets listed in paragraphs (a)(1) and (2) of this section and
the averaging set listed in 40 CFR 1037.740(a)(1).
    (ii) Medium heavy-duty compression-ignition engines and medium
heavy-duty vehicles. This group comprises the averaging sets listed in
paragraph (a)(3) of this section and 40 CFR 1037.740(a)(2).
    (iii) Heavy heavy-duty compression-ignition engines and heavy
heavy-duty vehicles. This group comprises the averaging sets listed in
paragraph (a)(4) of this section and 40 CFR 1037.740(a)(3).
    (2) The limit specified in paragraph (c)(1) of this section does
not limit the amount of advanced technology credits that can be used
within a service class group if they were generated in that same
service class group.
    (d) Credit life. Credits expire after five years.
    (e) Other restrictions. Other sections of this part specify
additional restrictions for using emission credits under certain
special provisions.

Sec.  1036.745  End-of-year CO2 credit deficits.

    Except as allowed by this section, we may void the certificate of
any engine family certified to an FCL above the applicable standard for
which you do not have sufficient credits by the deadline for submitting
the final report.
    (a) Your certificate for an engine family for which you do not have
sufficient CO2 credits will not be void if you remedy the
deficit with surplus credits within three model years. For example, if
you have a credit deficit of 500 Mg for an engine family at the end of
model year 2015, you must generate (or otherwise obtain) a surplus of
at

least 500 Mg in that same averaging set by the end of model year 2018.
    (b) You may not bank or trade away CO2 credits in the
averaging set in any model year in which you have a deficit.
    (c) You may apply only surplus credits to your deficit. You may not
apply credits to a deficit from an earlier model year if they were
generated in a model year for which any of your engine families for
that averaging set had an end-of-year credit deficit.
    (d) If you do not remedy the deficit with surplus credits within
three model years, we may void your certificate for that engine family.
We may void the certificate based on your end-of-year report. Note that
voiding a certificate applies ab initio. Where the net deficit is less
than the total amount of negative credits originally generated by the
family, we will void the certificate only with respect to the number of
engines needed to reach the amount of the net deficit. For example, if
the original engine family generated 500 Mg of negative credits, and
the manufacturer's net deficit after three years was 250 Mg, we would
void the certificate with respect to half of the engines in the family.

Sec.  1036.750  What can happen if I do not comply with the provisions
of this subpart?

    (a) For each engine family participating in the ABT program, the
certificate of conformity is conditioned upon full compliance with the
provisions of this subpart during and after the model year. You are
responsible to establish to our satisfaction that you fully comply with
applicable requirements. We may void the certificate of conformity for
an engine family if you fail to comply with any provisions of this
subpart.
    (b) You may certify your engine family to an FCL above an
applicable standard based on a projection that you will have enough
emission credits to offset the deficit for the engine family. See Sec.
1036.745 for provisions specifying what happens if you cannot show in
your final report that you have enough actual emission credits to
offset a deficit for any pollutant in an engine family.
    (c) We may void the certificate of conformity for an engine family
if you fail to keep records, send reports, or give us information we
request. Note that failing to keep records, send reports, or give us
information we request is also a violation of 42 U.S.C. 7522(a)(2).
    (d) You may ask for a hearing if we void your certificate under
this section (see Sec.  1036.820).

Sec.  1036.755  Information provided to the Department of
Transportation.

    After receipt of each manufacturer's final report as specified in
Sec.  1036.730 and completion of any verification testing required to
validate the manufacturer's submitted final data, we will issue a
report to the Department of Transportation with CO2 emission
information and will verify the accuracy of each manufacturer's
equivalent fuel consumption data that required by NHTSA under 49 CFR
535.8. We will send a report to DOT for each engine manufacturer based
on each regulatory category and subcategory, including sufficient
information for NHTSA to determine fuel consumption and associated
credit values. See 49 CFR 535.8 to determine if NHTSA deems submission
of this information to EPA to also be a submission to NHTSA.

Subpart I--Definitions and Other Reference Information

Sec.  1036.801  Definitions.

    The following definitions apply to this part. The definitions apply
to all subparts unless we note otherwise. All undefined terms have the
meaning the Act gives to them. The definitions follow:
    Act means the Clean Air Act, as amended, 42 U.S.C. 7401-7671q.
    Adjustable parameter has the meaning given in 40 CFR part 86.
    Advanced technology means technology certified under Sec.
1036.615, 40 CFR 1037.104(d)(7) or 1037.615.
    Aftertreatment means relating to a catalytic converter, particulate
filter, or any other system, component, or technology mounted
downstream of the exhaust valve (or exhaust port) whose design function
is to decrease emissions in the engine exhaust before it is exhausted
to the environment. Exhaust-gas recirculation (EGR) and turbochargers
are not aftertreatment.
    Aircraft means any vehicle capable of sustained air travel above
treetop heights.
    Alcohol-fueled engine mean an engine that is designed to run using
an alcohol fuel. For purposes of this definition, alcohol fuels do not
include fuels with a nominal alcohol content below 25 percent by
volume.
    Auxiliary emission control device means any element of design that
senses temperature, motive speed, engine RPM, transmission gear, or any
other parameter for the purpose of activating, modulating, delaying, or
deactivating the operation of any part of the emission control system.
    Averaging set has the meaning given in Sec.  1036.740.
    Calibration means the set of specifications and tolerances specific
to a particular design, version, or application of a component or
assembly capable of functionally describing its operation over its
working range.
    Carryover means relating to certification based on emission data
generated from an earlier model year as described in Sec.  1036.235(d).
    Certification means relating to the process of obtaining a
certificate of conformity for an engine family that complies with the
emission standards and requirements in this part.
    Certified emission level means the highest deteriorated emission
level in an engine family for a given pollutant from the applicable
transient and/or steady-state testing, rounded to the same number of
decimal places as the applicable standard. Note that you may have two
certified emission levels for CO2 if you certify a family
for both vocational and tractor use.
    Complete vehicle means a vehicle meeting the definition of complete
vehicle in 40 CFR 1037.801 when it is first sold as a vehicle. For
example, where a vehicle manufacturer sells an incomplete vehicle to a
secondary manufacturer, the vehicle is not a complete vehicle under
this part, even after its final assembly.
    Compression-ignition means relating to a type of reciprocating,
internal-combustion engine that is not a spark-ignition engine.
    Crankcase emissions means airborne substances emitted to the
atmosphere from any part of the engine crankcase's ventilation or
lubrication systems. The crankcase is the housing for the crankshaft
and other related internal parts.
    Criteria pollutants means emissions of NOX, HC, PM, and
CO. Note that these pollutants are also sometimes described
collectively as ``non-greenhouse gas pollutants'', although they do not
necessarily have negligible global warming potentials.
    Designated Compliance Officer means the Manager, Heavy-Duty and
Nonroad Engine Group (6405-J), U.S. Environmental Protection Agency,
1200 Pennsylvania Ave., NW., Washington, DC 20460.
    Designated Enforcement Officer means the Director, Air Enforcement
Division (2242A), U.S. Environmental Protection Agency, 1200
Pennsylvania Ave., NW., Washington, DC 20460.
    Deteriorated emission level means the emission level that results
from applying the appropriate deterioration factor to the official
emission result of the emission-data engine. Note that where no
deterioration factor applies,

references in this part to the deteriorated emission level mean the
official emission result.
    Deterioration factor means the relationship between emissions at
the end of useful life (or point of highest emissions if it occurs
before the end of useful life) and emissions at the low-hour/low-
mileage test point, expressed in one of the following ways:
    (1) For multiplicative deterioration factors, the ratio of
emissions at the end of useful life (or point of highest emissions) to
emissions at the low-hour test point.
    (2) For additive deterioration factors, the difference between
emissions at the end of useful life (or point of highest emissions) and
emissions at the low-hour test point.
    Dual-fuel means relating to an engine designed for operation on two
different types of fuel but not on a continuous mixture of those fuels.
    Emission control system means any device, system, or element of
design that controls or reduces the emissions of regulated pollutants
from an engine.
    Emission-data engine means an engine that is tested for
certification. This includes engines tested to establish deterioration
factors.
    Emission-related maintenance means maintenance that substantially
affects emissions or is likely to substantially affect emission
deterioration.
    Engine configuration means a unique combination of engine hardware
and calibration (related to the emission standards) within an engine
family. Engines within a single engine configuration differ only with
respect to normal production variability or factors unrelated to
compliance with emission standards.
    Engine family has the meaning given in Sec.  1036.230.
    Excluded means relating to engines that are not subject to some or
all of the requirements of this part as follows:
    (1) An engine that has been determined not to be a heavy-duty
engine is excluded from this part.
    (2) Certain heavy-duty engines are excluded from the requirements
of this part under Sec.  1036.5.
    (3) Specific regulatory provisions of this part may exclude a
heavy-duty engine generally subject to this part from one or more
specific standards or requirements of this part.
    Exempted has the meaning given in 40 CFR 1068.30.
    Exhaust-gas recirculation means a technology that reduces emissions
by routing exhaust gases that had been exhausted from the combustion
chamber(s) back into the engine to be mixed with incoming air before or
during combustion. The use of valve timing to increase the amount of
residual exhaust gas in the combustion chamber(s) that is mixed with
incoming air before or during combustion is not considered exhaust-gas
recirculation for the purposes of this part.
    Family certification level (FCL) means a CO2 emission
level declared by the manufacturer that is at or above emission test
results for all emission-data engines. The FCL serves as the emission
standard for the engine family with respect to certification testing if
it is different than the otherwise applicable standard. The FCL must be
expressed to the same number of decimal places as the emission standard
it replaces.
    Family emission limit (FEL) means an emission level declared by the
manufacturer to serve in place of an otherwise applicable emission
standard (other than CO2 standards) under the ABT program in
subpart H of this part. The FEL must be expressed to the same number of
decimal places as the emission standard it replaces. The FEL serves as
the emission standard for the engine family with respect to all
required testing except certification testing for CO2. The
CO2 FEL is equal to the CO2 FCL multiplied by
1.03 and rounded to the same number of decimal places as the standard
(e.g., the nearest whole g/hp-hr for the 2016 CO2
standards).
    Flexible-fuel means relating to an engine designed for operation on
any mixture of two or more different types of fuels.
    Fuel type means a general category of fuels such as diesel fuel,
gasoline, or natural gas. There can be multiple grades within a single
fuel type, such as premium gasoline, regular gasoline, or gasoline with
10 percent ethanol.
    Good engineering judgment has the meaning given in 40 CFR 1068.30.
See 40 CFR 1068.5 for the administrative process we use to evaluate
good engineering judgment.
    Greenhouse gas pollutants and greenhouse gases means compounds
regulated under this part based primarily on their impact on the
climate. This includes CO2, CH4, and
N2O.
    Gross vehicle weight rating (GVWR) means the value specified by the
vehicle manufacturer as the maximum design loaded weight of a single
vehicle, consistent with good engineering judgment.
    Heavy-duty engine means any engine which the engine manufacturer
could reasonably expect to be used for motive power in a heavy-duty
vehicle. For purposes of this definition in this part, the term
``engine'' includes internal combustion engines and other devices that
convert chemical fuel into motive power. For example, a fuel cell used
in a heavy-duty vehicle is a heavy-duty engine.
    Heavy-duty vehicle means any motor vehicle above 8,500 pounds GVWR
or that has a vehicle curb weight above 6,000 pounds or that has a
basic vehicle frontal area greater than 45 square feet. Curb weight has
the meaning given in 40 CFR 86.1803, consistent with the provisions of
40 CFR 1037.140. Basic vehicle frontal area has the meaning given in 40
CFR 86.1803.
    Hybrid engine or hybrid powertrain means an engine or powertrain
that includes energy storage features other than a conventional battery
system or conventional flywheel. Supplemental electrical batteries and
hydraulic accumulators are examples of hybrid energy storage systems.
Note that certain provisions in this part treat hybrid engines and
powertrains intended for vehicles that include regenerative braking
differently than those intended for vehicles that do not include
regenerative braking.
    Hydrocarbon (HC) means the hydrocarbon group on which the emission
standards are based for each fuel type. For alcohol-fueled engines, HC
means nonmethane hydrocarbon equivalent (NMHCE). For all other engines,
HC means nonmethane hydrocarbon (NMHC).
    Identification number means a unique specification (for example, a
model number/serial number combination) that allows someone to
distinguish a particular engine from other similar engines.
    Incomplete vehicle means a vehicle meeting the definition of
incomplete vehicle in 40 CFR 1037.801 when it is first sold as a
vehicle.
    Innovative technology means technology certified under Sec.
1036.610.
    Liquefied petroleum gas (LPG) means a liquid hydrocarbon fuel that
is stored under pressure and is composed primarily of nonmethane
compounds that are gases at atmospheric conditions.
    Low-hour means relating to an engine that has stabilized emissions
and represents the undeteriorated emission level. This would generally
involve less than 125 hours of operation.
    Manufacture means the physical and engineering process of
designing, constructing, and/or assembling a heavy-duty engine or a
heavy-duty vehicle.
    Manufacturer has the meaning given in section 216(1) of the Act. In
general, this term includes any person who manufactures an engine,
vehicle, or

piece of equipment for sale in the United States or otherwise
introduces a new engine into commerce in the United States. This
includes importers who import engines or vehicles for resale.
    Medium-duty passenger vehicle has the meaning given in 40 CFR
86.1803.
    Model year means the manufacturer's annual new model production
period, except as restricted under this definition. It must include
January 1 of the calendar year for which the model year is named, may
not begin before January 2 of the previous calendar year, and it must
end by December 31 of the named calendar year. Manufacturers may not
adjust model years to circumvent or delay compliance with emission
standards or to avoid the obligation to certify annually.
    Motor vehicle has the meaning given in 40 CFR 85.1703.
    Natural gas means a fuel whose primary constituent is methane.
    New motor vehicle engine means a motor vehicle engine meeting the
criteria of either paragraph (1) or (2) of this definition.
    (1) A motor vehicle engine for which the ultimate purchaser has
never received the equitable or legal title is a new motor vehicle
engine. This kind of engine might commonly be thought of as ``brand
new'' although a new motor vehicle engine may include previously used
parts. Under this definition, the engine is new from the time it is
produced until the ultimate purchaser receives the title or places it
into service, whichever comes first.
    (2) An imported motor vehicle engine is a new motor vehicle engine
if it was originally built on or after January 1, 1970.
    Noncompliant engine means an engine that was originally covered by
a certificate of conformity, but is not in the certified configuration
or otherwise does not comply with the conditions of the certificate.
    Nonconforming engine means an engine not covered by a certificate
of conformity that would otherwise be subject to emission standards.
    Nonmethane hydrocarbons (NMHC) means the sum of all hydrocarbon
species except methane, as measured according to 40 CFR part 1065.
    Official emission result means the measured emission rate for an
emission-data engine on a given duty cycle before the application of
any deterioration factor, but after the applicability of any required
regeneration adjustment factors.
    Owner's manual means a document or collection of documents prepared
by the engine or vehicle manufacturer for the owner or operator to
describe appropriate engine maintenance, applicable warranties, and any
other information related to operating or keeping the engine. The
owner's manual is typically provided to the ultimate purchaser at the
time of sale.
    Oxides of nitrogen has the meaning given in 40 CFR 1065.1001.
    Percent has the meaning given in 40 CFR 1065.1001. Note that this
means percentages identified in this part are assumed to be infinitely
precise without regard to the number of significant figures. For
example, one percent of 1,493 is 14.93.
    Petroleum means gasoline or diesel fuel or other fuels normally
derived from crude oil. This does not include methane or LPG.
    Placed into service means put into initial use for its intended
purpose.
    Primary intended service class has the meaning given in Sec.
1036.140.
    Rated power has the meaning given in 40 CFR part 86.
    Rechargeable Energy Storage System (RESS) means the component(s) of
a hybrid engine or vehicle that store recovered energy for later use,
such as the battery system in an electric hybrid vehicle.
    Revoke has the meaning given in 40 CFR 1068.30.
    Round has the meaning given in 40 CFR 1065.1001.
    Scheduled maintenance means adjusting, repairing, removing,
disassembling, cleaning, or replacing components or systems
periodically to keep a part or system from failing, malfunctioning, or
wearing prematurely. It also may mean actions you expect are necessary
to correct an overt indication of failure or malfunction for which
periodic maintenance is not appropriate.
    Small manufacturer means a manufacturer meeting the criteria
specified in 13 CFR 121.201. For manufacturers owned by a parent
company, the employee and revenue limits apply to the total number of
employees and total revenue of the parent company and all its
subsidiaries.
    Spark-ignition means relating to a gasoline-fueled engine or any
other type of engine with a spark plug (or other sparking device) and
with operating characteristics significantly similar to the theoretical
Otto combustion cycle. Spark-ignition engines usually use a throttle to
regulate intake air flow to control power during normal operation.
    Steady-state has the meaning given in 40 CFR 1065.1001.
    Suspend has the meaning given in 40 CFR 1068.30.
    Test engine means an engine in a test sample.
    Test sample means the collection of engines selected from the
population of an engine family for emission testing. This may include
testing for certification, production-line testing, or in-use testing.
    Tractor means a vehicle meeting the definition of ``tractor'' in 40
CFR 1037.801, but not classified as a ``vocational tractor'' under 40
CFR 1037.630, or relating to such a vehicle.
    Tractor engine means an engine certified for use in tractors. Where
an engine family is certified for use in both tractors and vocational
vehicles, ``tractor engine'' means an engine that the engine
manufacturer reasonably believes will be (or has been) installed in a
tractor. Note that the provisions of this part may require a
manufacturer to document how it determines that an engine is a tractor
engine.
    Ultimate purchaser means, with respect to any new engine or
vehicle, the first person who in good faith purchases such new engine
or vehicle for purposes other than resale.
    United States has the meaning given in 40 CFR 1068.30.
    Upcoming model year means for an engine family the model year after
the one currently in production.
    U.S.-directed production volume means the number of engines,
subject to the requirements of this part, produced by a manufacturer
for which the manufacturer has a reasonable assurance that sale was or
will be made to ultimate purchasers in the United States. This does not
include engines certified to state emission standards that are
different than the emission standards in this part.
    Vehicle has the meaning given in 40 CFR 1037.801.
    Vocational engine means an engine certified for use in vocational
vehicles. Where an engine family is certified for use in both tractors
and vocational vehicles, ``vocational engine'' means an engine that the
engine manufacturer reasonably believes will be (or has been) installed
in a vocational vehicle. Note that the provisions of this part may
require a manufacturer to document how it determines that an engine is
a vocational engine.
    Vocational vehicle means a vehicle meeting the definition of
``vocational'' vehicle in 40 CFR 1037.801.
    Void has the meaning given in 40 CFR 1068.30.
    We (us, our) means the Administrator of the Environmental
Protection Agency and any authorized representatives.

Sec.  1036.805  Symbols, acronyms, and abbreviations.

    The following symbols, acronyms, and abbreviations apply to this
part:
    ABT averaging, banking, and trading.
    AECD auxiliary emission control device.
    ASTM American Society for Testing and Materials.
    BTU British thermal units.
    CFR Code of Federal Regulations.
    CH4 methane.
    CO carbon monoxide.
    CO2 carbon dioxide.
    DF deterioration factor.
    DOT Department of Transportation.
    E85 gasoline blend including nominally 85 percent ethanol.
    EPA Environmental Protection Agency.
    FCL Family Certification Level.
    FEL Family Emission Limit.
    g/hp-hr grams per brake horsepower-hour.
    GVWR gross vehicle weight rating.
    HC hydrocarbon.
    kg kilogram.
    kgC kilogram carbon.
    kW kilowatts.
    lb pound.
    lbC pound carbon.
    LPG liquefied petroleum gas.
    Mg megagrams (10 \6\ grams, or one metric ton).
    MJ megajoules.
    N2O nitrous oxide.
    NARA National Archives and Records Administration.
    NHTSA National Highway Traffic Safety Administration.
    NOx oxides of nitrogen (NO and NO2).
    NTE not-to-exceed.
    PM particulate matter.
    RESS rechargeable energy storage system.
    RPM revolutions per minute.
    SET Supplemental Emission Test (see 40 CFR 86.1362).
    U.S. United States.
    U.S.C. United States Code.

Sec.  1036.810  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 notice of the change in the Federal Register and the material
must be available to the public. All approved material is available for
inspection at U.S. EPA, Air and Radiation Docket and Information
Center, 1301 Constitution Ave., NW., Room B102, EPA West Building,
Washington, DC 20460,<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, call<PHONE_NUMBER>, or go to
http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
    (b) American Society for Testing and Materials, 100 Barr Harbor
Drive, P.O. Box C700, West Conshohocken, PA, 19428-2959, (610) 832-
9585, http://www.astm.org/.
    (1) ASTM D 240-09 Standard Test Method for Heat of Combustion of
Liquid Hydrocarbon Fuels by Bomb Calorimeter, approved July 1, 2009,
IBR approved for Sec.  1036.530(b).
    (2) ASTM D4809-09a Standard Test Method for Heat of Combustion of
Liquid Hydrocarbon Fuels by Bomb Calorimeter (Precision Method),
approved September 1, 2009, IBR approved for Sec.  1036.530(b).
    (3) ASTM D5291-10 Standard Test Methods for Instrumental
Determination of Carbon, Hydrogen, and Nitrogen in Petroleum Products
and Lubricants, approved May 1, 2010, IBR approved for Sec.
1036.530(b).

Sec.  1036.815  Confidential information.

    The provisions of 40 CFR 1068.10 apply for information you consider
confidential.

Sec.  1036.820  Requesting a hearing.

    (a) You may request a hearing under certain circumstances, as
described elsewhere in this part. To do this, you must file a written
request, including a description of your objection and any supporting
data, within 30 days after we make a decision.
    (b) For a hearing you request under the provisions of this part, we
will approve your request if we find that your request raises a
substantial factual issue.
    (c) If we agree to hold a hearing, we will use the procedures
specified in 40 CFR part 1068, subpart G.

Sec.  1036.825  Reporting and recordkeeping requirements.

    (a) This part includes various requirements to submit and record
data or other information. Unless we specify otherwise, store required
records in any format and on any media and keep them readily available
for eight years after you send an associated application for
certification, or eight years after you generate the data if they do
not support an application for certification. You may not rely on
anyone else to meet recordkeeping requirements on your behalf unless we
specifically authorize it. We may review these records at any time. You
must promptly send us organized, written records in English if we ask
for them. We may require you to submit written records in an electronic
format.
    (b) The regulations in Sec.  1036.255 and 40 CFR 1068.25 and
1068.101 describe your obligation to report truthful and complete
information. This includes information not related to certification.
Failing to properly report information and keep the records we specify
violates 40 CFR 1068.101(a)(2), which may involve civil or criminal
penalties.
    (c) Send all reports and requests for approval to the Designated
Compliance Officer (see Sec.  1036.801).
    (d) Any written information we require you to send to or receive
from another company is deemed to be a required record under this
section. Such records are also deemed to be submissions to EPA. Keep
these records for eight years unless the regulations specify a
different period. We may require you to send us these records whether
or not you are a certificate holder.
    (e) Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the
Office of Management and Budget approves the reporting and
recordkeeping specified in the applicable regulations. The following
items illustrate the kind of reporting and recordkeeping we require for
engines and equipment regulated under this part:
    (1) We specify the following requirements related to engine
certification in this part 1036:
    (i) In Sec.  1036.135 we require engine manufacturers to keep
certain records related to duplicate labels sent to equipment
manufacturers.
    (ii) In subpart C of this part we identify a wide range of
information required to certify engines.
    (iii) In subpart G of this part we identify several reporting and
recordkeeping items for making demonstrations and getting approval
related to various special compliance provisions.
    (iv) In Sec. Sec.  1036.725, 1036.730, and 1036.735 we specify
certain records related to averaging, banking, and trading.
    (2) We specify the following requirements related to testing in 40
CFR part 1066:
    (i) In 40 CFR 1066.2 we give an overview of principles for
reporting information.
    (ii) [Reserved]

0
34. A new part 1037 is added to subchapter U to read as follows:

PART 1037--CONTROL OF EMISSIONS FROM NEW HEAVY-DUTY MOTOR VEHICLES

Subpart A--Overview and Applicability
Sec.
1037.1 Applicability
1037.5 Excluded vehicles.
1037.10 How is this part organized?
1037.15 Do any other regulation parts apply to me?
1037.30 Submission of information.
Subpart B--Emission Standards and Related Requirements
1037.101 Overview of emission standards for heavy-duty vehicles.
1037.102 Exhaust emission standards for NOX, HC, PM, and
CO.
1037.104 Exhaust emission standards for CO2,
CH4, and N2O for heavy-duty vehicles at or
below 14,000 pounds GVWR.
1037.105 Exhaust emission standards for CO2 for
vocational vehicles.
1037.106 Exhaust emission standards for CO2 for tractors
above 26,000 pounds GVWR.
1037.115 Other requirements.
1037.120 Emission-related warranty requirements.
1037.125 Maintenance instructions and allowable maintenance.
1037.135 Labeling.
1037.140 Curb weight and roof height.
1037.150 Interim provisions.
Subpart C--Certifying Vehicle families
1037.201 General requirements for obtaining a certificate of
conformity.
1037.205 What must I include in my application?
1037.210 Preliminary approval before certification.
1037.220 Amending maintenance instructions.
1037.225 Amending applications for certification.
1037.230 Vehicle families, sub-families, and configurations.
1037.241 Demonstrating compliance with exhaust emission standards
for greenhouse gas pollutants.
1037.250 Reporting and recordkeeping.
1037.255 What decisions may EPA make regarding my certificate of
conformity?
Subpart D--[Reserved]
Subpart E--In-Use Testing
1037.401 General provisions.
Subpart F--Test and Modeling Procedures
1037.501 General testing and modeling provisions.
1037.510 Duty-cycle exhaust testing.
1037.520 Modeling CO2 emissions to show compliance.
1037.521 Aerodynamic measurements.
1037.525 Special procedures for testing hybrid vehicles with power
take-off.
1037.550 Special procedures for testing post-transmission hybrid
systems.
Subpart G--Special Compliance Provisions
1037.601 What compliance provisions apply to these vehicles?
1037.610 Vehicles with innovative technologies.
1037.615 Hybrid vehicles and other advanced technologies.
1037.620 Shipment of incomplete vehicles to secondary vehicle
manufacturers.
1037.630 Special purpose tractors.
1037.631 Exemption for vocational vehicles intended for off-road
use.
1037.640 Variable vehicle speed limiters.
1037.645 In-use compliance with family emission limits (FELs).
1037.650 Tire manufacturers.
1037.655 Post-useful life vehicle modifications.
1037.660 Automatic engine shutdown systems.
Subpart H--Averaging, Banking, and Trading for Certification
1037.701 General provisions.
1037.705 Generating and calculating emission credits.
1037.710 Averaging.
1037.715 Banking.
1037.720 Trading.
1037.725 What must I include in my application for certification?
1037.730 ABT reports.
1037.735 Recordkeeping.
1037.740 Restrictions for using emission credits.
1037.745 End-of-year CO2 credit deficits.
1037.750 What can happen if I do not comply with the provisions of
this subpart?
1037.755 Information provided to the Department of Transportation.
Subpart I--Definitions and Other Reference Information
1037.801 Definitions.
1037.805 Symbols, acronyms, and abbreviations.
1037.810 Incorporation by reference.
1037.815 Confidential information.
1037.820 Requesting a hearing.
1037.825 Reporting and recordkeeping requirements.
Appendix I to Part 1037--Heavy-duty Transient Chassis Test Cycle
Appendix II to Part 1037--Power Take-Off Test Cycle
Appendix III to Part 1037--Emission Control Identifiers

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

Subpart A--Overview and Applicability

Sec.  1037.1  Applicability

    This part contains standards and other regulations applicable to
the emission of the air pollutant defined as the aggregate group of six
greenhouse gases: carbon dioxide, nitrous oxide, methane,
hydrofluorocarbons, perflurocarbons, and sulfur hexafluoride. The
regulations in this part 1037 apply for all new heavy-duty vehicles,
except as provided in Sec.  1037.5. This includes electric vehicles and
vehicles fueled by conventional and alternative fuels.

Sec.  1037.5  Excluded vehicles.

    Except for the definitions specified in Sec.  1037.801, this part
does not apply to the following vehicles:
    (a) Vehicles not meeting the definition of ``motor vehicle''.
    (b) Vehicles excluded from the definition of ``heavy-duty vehicle''
in Sec.  1037.801 because of vehicle weight, weight rating, and frontal
area (such as light-duty vehicles and light-duty trucks).
    (c) Medium-duty passenger vehicles.
    (d) Vehicles produced in model years before 2014, unless they are
certified under Sec.  1037.150.
    (e) Vehicles subject to the light-duty greenhouse gas standards of
40 CFR part 86. See 40 CFR 86.1818 for greenhouse gas standards that
apply for these vehicles. An example of such a vehicle would be a
vehicle meeting the definition of ``heavy-duty vehicle'' in Sec.
1037.801 and 40 CFR 86.1803, but also meeting the definition of ``light
truck'' in 40 CFR 86.1818-12(b)(2).

Sec.  1037.10  How is this part organized?

    This part 1037 is divided into subparts as described in this
section. Note that only subparts A, B, and I of this part apply for
vehicles subject to the standards of Sec.  1037.104, as described in
that section.
    (a) Subpart A of this part defines the applicability of part 1037
and gives an overview of regulatory requirements.
    (b) Subpart B of this part describes the emission standards and
other requirements that must be met to certify vehicles under this
part. Note that Sec.  1037.150 discusses certain interim requirements
and compliance provisions that apply only for a limited time.
    (c) Subpart C of this part describes how to apply for a certificate
of conformity for vehicles subject to the standards of Sec.  1037.105
or Sec.  1037.106.
    (d) [Reserved]
    (e) Subpart E of this part addresses testing of in-use vehicles.
    (f) Subpart F of this part describes how to test your vehicles and
perform emission modeling (including references to other parts of the
Code of Federal Regulations) for vehicles subject to the standards of
Sec.  1037.105 or Sec.  1037.106.
    (g) Subpart G of this part and 40 CFR part 1068 describe
requirements, prohibitions, and other provisions that apply to
manufacturers, owners, operators, rebuilders, and all others. Section
1037.601 describes how 40 CFR part 1068 applies for heavy-duty
vehicles.
    (h) Subpart H of this part describes how you may generate and use
emission

credits to certify vehicles that are subject to the standards of Sec.
1037.105 or Sec.  1037.106.
    (i) Subpart I of this part contains definitions and other reference
information.

Sec.  1037.15  Do any other regulation parts apply to me?

    (a) Parts 1065 and 1066 of this chapter describe procedures and
equipment specifications for testing engines and vehicles to measure
exhaust emissions. Subpart F of this part 1037 describes how to apply
the provisions of part 1065 and part 1066 of this chapter to determine
whether vehicles meet the exhaust emission standards in this part.
    (b) As described in Sec.  1037.601, certain requirements and
prohibitions of part 1068 of this chapter apply to everyone, including
anyone who manufactures, imports, installs, owns, operates, or rebuilds
any of the vehicles subject to this part 1037. Part 1068 of this
chapter describes general provisions that apply broadly, but do not
necessarily apply for all vehicles or all persons. The issues addressed
by these provisions include these seven areas:
    (1) Prohibited acts and penalties for manufacturers and others.
    (2) Rebuilding and other aftermarket changes.
    (3) Exclusions and exemptions for certain vehicles.
    (4) Importing vehicles.
    (5) Selective enforcement audits of your production.
    (6) Recall.
    (7) Procedures for hearings.
    (c) Part 86 of this chapter applies for certain vehicles as
specified in this part. For example, the test procedures and most of
part 86, subpart S, applies for vehicles subject to Sec.  1037.104.
    (d) Other parts of this chapter apply if referenced in this part.

Sec.  1037.30  Submission of information.

    Send all reports and requests for approval to the Designated
Compliance Officer (see Sec.  1037.801). See Sec.  1037.825 for
additional reporting and recordkeeping provisions.

Subpart B--Emission Standards and Related Requirements

Sec.  1037.101  Overview of emission standards for heavy-duty vehicles.

    (a) This part specifies emission standards for certain vehicles and
for certain pollutants. It also summarizes other standards that apply
under 40 CFR part 86. This part contains standards and other
regulations applicable to the emission of the air pollutant defined as
the aggregate group of six greenhouse gases: carbon dioxide, nitrous
oxide, methane, hydrofluorocarbons, perflurocarbons, and sulfur
hexafluoride.
    (b) The regulated emissions are addressed in four groups:
    (1) Exhaust emissions of NOX, HC, PM, and CO. These
pollutants are sometimes described collectively as ``criteria
pollutants'' because they are either criteria pollutants under the
Clean Air Act or precursors to the criteria pollutant ozone. These
pollutants are also sometimes described collectively as ``non-
greenhouse gas pollutants'', although they do not necessarily have
negligible global warming potential. As described in Sec.  1037.102,
standards for these pollutants are provided in 40 CFR part 86.
    (2) Exhaust emissions of CO2, CH4, and
N2O. These pollutants are described collectively in this
part as ``greenhouse gas pollutants'' because they are regulated
primarily based on their impact on the climate. These standards are
provided in Sec. Sec.  1037.104 through 1037.106.
    (3) Hydrofluorocarbons. These pollutants are also ``greenhouse gas
pollutants'' but are treated separately from exhaust greenhouse gas
pollutants listed in paragraph (b)(2) of this section. These standards
are provided in Sec.  1037.115.
    (4) Fuel evaporative emissions. These requirements are described in
40 CFR part 86.
    (c) The regulated heavy-duty vehicles are addressed in different
groups as follows:
    (1) For criteria pollutants, vehicles are regulated based on gross
vehicle weight rating (GVWR), whether they are considered ``spark-
ignition'' or ``compression-ignition,'' and whether they are first sold
as complete or incomplete vehicles. These groupings apply as described
in 40 CFR part 86.
    (2) For greenhouse gas pollutants, vehicles are regulated in the
following groups:
    (i) Complete and certain incomplete vehicles at or below 14,000
pounds GVWR (see Sec.  1037.104 for further specification). Certain
provisions of 40 CFR part 86 apply for these vehicles; see Sec.
1037.104(h) for a list of provisions in this part 1037 that also apply
for these vehicles. These provisions may also be optionally applied to
certain other vehicles, as described in Sec.  1037.104.
    (ii) Tractors above 26,000 pounds GVWR.
    (iii) All other vehicles subject to standards under this part.
These other vehicles are referred to as ``vocational'' vehicles.

Sec.  1037.102  Exhaust emission standards for NOX, HC, PM, and CO.

    See 40 CFR part 86 for the exhaust emission standards for
NOX, HC, PM, and CO that apply for heavy-duty vehicles.

Sec.  1037.104  Exhaust emission standards for CO2,
CH4, and N2O for heavy-duty vehicles at or below
14,000 pounds GVWR.

    This section applies for heavy-duty vehicles at or below 14,000
pounds GVWR. See paragraph (f) of this section and Sec.  1037.150 of
this section for provisions excluding certain vehicles from this
section, and allowing other vehicles to be certified under this
section.
    (a) Fleet-average CO2 emission standards. Fleet-average
CO2 emission standards apply for each manufacturer as
follows:
    (1) Calculate a work factor, WF, for each vehicle subconfiguration
(or group of subconfigurations allowed under paragraph (a)(4) of this
section), rounded to the nearest pound, using the following equation:

WF = 0.75 x (GVWR - Curb Weight + xwd) + 0.25 x (GCWR - GVWR)
Where:

xwd = 500 pounds if the vehicle has four-wheel drive or all-wheel
drive; xwd = 0 pounds for all other vehicles.

    (2) Using the appropriate work factor, calculate a target value for
each vehicle subconfiguration (or group of subconfigurations allowed
under paragraph (a)(4) of this section) you produce using one of the
following equations, rounding to the nearest 0.1 g/mile:
    (i) For spark-ignition vehicles: CO2 Target (g/mile) =
0.0440 x WF + 339
    (ii) For compression-ignition vehicles and vehicles that operate
without engines (such as electric vehicles and fuel cell vehicles):
CO2 Target (g/mile) = 0.0416 x WF + 320
    (3) Calculate a production-weighted average of the target values
and round it to the nearest 0.1 g/mile. This is your fleet-average
standard. All vehicles subject to the standards of this section form a
single averaging set. Use the following equation to calculate your
fleet-average standard from the target value for each vehicle
subconfiguration (Targeti) and U.S.-directed production
volume of each vehicle subconfiguration for the given model year
(Volumei):

[GRAPHIC] [TIFF OMITTED] TR15SE11.008

    (4) You may group subconfigurations within a configuration together
for purposes of calculating your fleet-average standard as follows:
    (i) You may group together subconfigurations that have the same
equivalent test weight (ETW), GVWR, and GCWR. Calculate your work
factor and target value assuming a curb weight equal to two times ETW
minus GVWR.
    (ii) You may group together other subconfigurations if you use the
lowest target value calculated for any of the subconfigurations.
    (b) Production and in-use CO2 standards. Each vehicle you produce
that is subject to the standards of this section has an ``in-use''
CO2 standard that is calculated from your test result and
that applies for selective enforcement audits and in-use testing. This
in-use CO2 standard for each vehicle is equal to the
applicable deteriorated emission level multiplied by 1.10 and rounded
to the nearest 0.1 g/mile.
    (c) N2O and CH4 standards. Except as allowed under this paragraph
(c), all vehicles subject to the standards of this section must comply
with an N2O standard of 0.05 g/mile and a CH4
standard of 0.05 g/mile. You may specify CH4 and/or
N2O alternate standards using CO2 emission
credits instead of these otherwise applicable emission standards for
one or more test groups, consistent with the provisions of 40 CFR
86.1818. To do this, calculate the CH4 and/or N2O
emission credits needed (negative credits) using the equation in this
paragraph (c) based on the FEL(s) you specify for your vehicles during
certification. You must adjust the calculated emissions by the global
warming potential (GWP): GWP equals 25 for CH4 and 298 for
N2O. This means you must use 25 Mg of positive
CO2 credits to offset 1 Mg of negative CH4
credits and 298 Mg of positive CO2 credits to offset 1 Mg of
negative N2O credits. Note that 40 CFR 86.1818-12(f) does
not apply for vehicles subject to the standards of this section.
Calculate credits using the following equation:

CO2 Credits Needed (Mg) = [(FEL--Std) x (U.S.-directed
production volume) x (Useful Life)] x (GWP) / 1,000,000

    (d) Compliance provisions. Except as specified in this paragraph
(d) or elsewhere in this section, the provisions of 40 CFR part 86,
describing compliance with the greenhouse gas standards of 40 CFR part
86, subpart S, apply with respect to the standards of paragraphs (a)
through (c) of this section.
    (1) The CO2 standards of this section apply with respect
to CO2 emissions, not with respect to carbon-related exhaust
emissions (CREE).
    (2) Vehicles subject to the standards of this section are included
in a single greenhouse gas averaging set separate from any averaging
sets otherwise included in 40 CFR part 86.
    (3) Special credit and incentive provisions related to flexible
fuel vehicles and air conditioning in 40 CFR part 86 do not apply for
vehicles subject to the standards of this section.
    (4) The CO2, N2O, and CH4
standards apply for a weighted average of the city (55%) and highway
(45%) test cycle results as specified for light-duty vehicles in 40 CFR
part 86, subpart S. Note that this differs from the way the criteria
pollutant standards apply for heavy-duty vehicles.
    (5) Apply an additive deterioration factor of zero to measured
CO2 emissions unless good engineering judgment indicates
that emissions are likely to deteriorate in use. Use good engineering
judgment to develop separate deterioration factors for N2O
and CH4.
    (6) Credits are calculated using the useful life value (in miles)
in place of the ``vehicle lifetime miles'' specified in 40 CFR part 86,
subpart S.
    (7) Credits generated from hybrid vehicles with regenerative
braking or from vehicles with other advanced technologies may be used
to show compliance with any standards of this part or 40 CFR part 1036,
subject to the service class restrictions in Sec.  1037.740. Include
these vehicles in a separate fleet-average calculation (and exclude
them from your conventional fleet-average calculation). You must first
apply these advanced technology vehicle credits to any deficits for
other vehicles in the averaging set before applying them to other
averaging sets.
    (8) The provisions of 40 CFR 86.1818 do not apply.
    (9) Calculate your fleet-average emission rate consistent with good
engineering judgment and the provisions of 40 CFR 86.1865. The
following additional provisions apply:
    (i) Unless we approve a lower number, you must test at least ten
subconfigurations. If you produce more than 100 subconfigurations in a
given model year, you must test at least ten percent of your
subconfigurations. For purposes of this paragraph (d)(9)(i), count
carryover tests, but do not include analytically derived CO2
emission rates, data substitutions, or other untested allowances. We
may approve a lower number of tests for manufacturers that have limited
product offerings, or low sales volumes. Note that good engineering
judgment and other provisions of this part may require you to test more
subconfigurations than these minimum values.
    (ii) The provisions of paragraph (g) of this section specify how
you may use analytically derived CO2 emission rates.
    (iii) At least 90 percent of final production volume at the
configuration level must be represented by test data (real, data
substituted, or analytical).
    (10) For dual fuel, multi-fuel, and flexible fuel vehicles, perform
exhaust testing on each fuel type (for example, gasoline and E85).
    (i) For your fleet-average calculations, use either the
conventional-fueled CO2 emission rate or a weighted average
of your emission results as specified in 40 CFR 600.510-12(k) for
light-duty trucks.
    (ii) If you certify to an alternate standard for N2O or
CH4 emissions, you may not exceed the alternate standard
when tested on either fuel.
    (11) Test your vehicles with an equivalent test weight based on its
Adjusted Loaded Vehicle Weight (ALVW). Determine equivalent test weight
from the ALVW as specified in 40 CFR 86.129, except that you may round
values to the nearest 500 pound increment for ALVW above 14,000
pounds).
    (12) The following definitions apply for purposes of this section:
    (i) Configuration means a subclassification within a test group
which is based on engine code, transmission type and gear ratios, final
drive ratio, and other parameters which we designate. Note that this
differs from the definition in 40 CFR 86.1803 because it excludes
inertia weight class as a criterion.
    (ii) Subconfiguration means a unique combination within a vehicle
configuration (as defined in this paragraph (d)(12)) of equivalent test
weight, road-load horsepower, and any other operational characteristics
or parameters that we determine may significantly affect CO2
emissions within a vehicle configuration.

    (iii) The terms ``complete vehicle'' and ``incomplete vehicle''
have the meanings given for ``complete heavy-duty vehicle'' and
``incomplete heavy-duty vehicle'' in 40 CFR 86.1803.
    (13) This paragraph (d)(13) applies for CO2 reductions
resulting from technologies that were not in common use before 2010
that are not reflected in the specified test procedures. We may allow
you to generate emission credits consistent with the provisions of 40
CFR 86.1866-12(d). You do not need to provide justification for not
using the 5-cycle methodology option.
    (14) You must submit pre-model year reports before you submit your
applications for certification for a given model year. Unless we
specify otherwise, include the information specified for pre-model year
reports in 49 CFR 535.8.
    (e) Useful life. Your vehicles must meet the exhaust emission
standards of this section throughout their full useful life, expressed
in service miles or calendar years, whichever comes first. The useful
life values for the standards of this section are those that apply for
criteria pollutants under 40 CFR part 86.
    (f) Exclusion of vehicles not certified as complete vehicles. The
standards of this section apply for each vehicle that is chassis-
certified with respect to criteria pollutants under 40 CFR part 86,
subpart S. The standards of this section do not apply for other
vehicles, except as noted in Sec.  1037.150. Note that vehicles
excluded under this paragraph (f) are not considered to be ``subject to
the standards of this section.'' The vehicle standards and requirements
of Sec.  1037.105 apply for the excluded vehicles. The GHG standards of
40 CFR part 1036 also apply for engines used in these excluded
vehicles. If you are not the engine manufacturer, you must notify the
engine manufacturer that its engines are subject to 40 CFR part 1036
because you intend to use their engines in your excluded vehicles.
    (g) Analytically derived CO2 emission rates (ADCs). This
paragraph (g) describes an allowance to use estimated (i.e.,
analytically derived) CO2 emission rates based on baseline
test data instead of measured emission rates for calculating fleet-
average emissions. Note that these ADCs are similar to ADFEs used for
light-duty vehicles. Note also that F terms used in this paragraph (g)
represent coefficients from the following road load equation:
[GRAPHIC] [TIFF OMITTED] TR15SE11.009

    (1) Except as specified in paragraph (g)(2) of this section, use
the following equation to calculate the ADC of a new vehicle from road
load force coefficients (F0, F1, F2), axle ratio, and test weight:
[GRAPHIC] [TIFF OMITTED] TR15SE11.010

Where:

ADC = Analytically derived combined city/highway CO2
emission rate (g/mile) for a new vehicle.
CO2base = Combined city/highway CO2 emission
rate (g/mile) of a baseline vehicle.
[Delta]F0 = F0 of the new vehicle--F0 of the baseline vehicle.
[Delta]F1 = F1 of the new vehicle--F1 of the baseline vehicle.
[Delta]F2 = F2 of the new vehicle--F2 of the baseline vehicle.
[Delta]AR = Axle ratio of the new vehicle--axle ratio of the
baseline vehicle.

[Delta]ETW = ETW of the new vehicle--ETW of the baseline vehicle.

    (2) The purpose of this section is to accurately estimate
CO2 emission rates. You must apply the provisions of this
section consistent with good engineering judgment. For example, do not
use the equation in paragraph (g)(1) of this section where good
engineering judgment indicates that it will not accurately estimate
emissions. You may ask us to approve alternate equations that allow you
to estimate emissions more accurately.
    (3) You may select, without our prior approval, baseline test data
that meet all the following criteria:
    (i) Vehicles considered for selection for the baseline test must
comply with all applicable emission standards in the model year
associated with the ADC.
    (ii) You must include in the pool of tests which will be considered
for baseline selection all official tests of the same or equivalent
basic engine, transmission class, engine code, transmission code,
engine horsepower, dynamometer drive wheels, and compression ratio as
the ADC subconfiguration. Do not include tests in which emissions
exceed any applicable standards.
    (iii) Where necessary to minimize the CO2 adjustment,
you may supplement the pool with tests associated with worst-case
engine or transmission codes and carryover or carry-across engine
families. If you do, all the data that qualify for inclusion using the
elected worst-case substitution (or carryover or carry-across) must be
included in the pool as supplemental data (i.e., individual test
vehicles may not be selected for inclusion). You must also include the
supplemental data in all subsequent pools, where applicable.
    (iv) Tests previously used during the subject model year as
baseline tests in ten other ADC subconfigurations must be eliminated
from the pool. (v) Select the tested subconfiguration with the smallest
absolute difference between the ADC and the test CO2
emission rate for combined emissions. Use this as the baseline test for
the target ADC subconfiguration.
    (4) You may ask us to allow you use baseline test data not fully
meeting the provisions of paragraph (g)(3) of this section.
    (5) Calculate the ADC rounded to the nearest 0.1 g/mile. The
downward adjustment of ADC from the baseline is limited to ADC values
20 percent below the baseline emission rate (i.e., baseline emission
rate x 0.80). The upward adjustment is not limited.
    (6) You may not submit an ADC if an actual test has been run on the
target subconfiguration during the certification process or on a
development vehicle that is eligible to be declared as an emission-data
vehicle.
    (7) No more than 40 percent of the subconfigurations tested in your
final CO2 submission may be represented by ADCs.
    (8) You must retain for five years the pool of tests, the vehicle
description and tests chosen as the baseline and the basis for its
selection, the target ADC subconfiguration, and the calculated emission
rates. We may ask to see these records at any time.
    (9) We may perform or order a confirmatory test of any
subconfiguration covered by an ADC.

    (10) Where we determine that you did not fully comply with the
provisions of this paragraph (g), we may rescind the use of ADC data,
require generation of actual test data, and require recalculation of
your fleet-average emission rate.
    (h) Applicability of part 1037 provisions. Except as specified in
this section, the requirements of this part do not apply to vehicles
certified to the standards of this section. The following provisions
are the only provisions of this part that apply to vehicles certified
under this section:
    (1) The provisions of this section.
    (2) [Reserved]
    (3) The air conditioning standards in Sec.  1037.115.
    (4) The interim provisions of Sec.  1037.150(a), (b), (c), (e)-(i),
(l), and (m).
    (5) The definitions of Sec.  1037.801, to the extent such terms are
used relative to vehicles subject to standards under this section.

Sec.  1037.105  Exhaust emission standards for CO2 for
vocational vehicles.

    (a) The standards of this section apply for the following vehicles:
    (1) Vehicles above 14,000 pounds GVWR and at or below 26,000 pounds
GVWR, but not certified to the vehicle standards Sec.  1037.104.
    (2) Vehicles above 26,000 pounds GVWR that are not tractors.
    (3) Vocational tractors.
    (4) Vehicles at or below 14,000 pounds GVWR that are excluded from
the standards in Sec.  1037.104 under Sec.  1037.104 (f) or use engines
certified under Sec.  1037.150(m).
    (b) The CO2 standards of this section are given in Table
1 to this section. The provisions of Sec.  1037.241 specify how to
comply with these standards.

    Table 1 to Sec.   1037.105--CO2 Standards for Vocational Vehicles
------------------------------------------------------------------------
                                           CO2 standard
                                           (g/ton-mile)    CO2 standard
             GVWR  (pounds)                  for model     (g/ton-mile)
                                            years 2014-   for model year
                                               2016       2017 and later
------------------------------------------------------------------------
GVWR <= 19,500..........................             388             373
19,500 < GVWR <= 33,000.................             234             225
33,000 < GVWR...........................             226             222
------------------------------------------------------------------------

    (c) No CH4 or N2O standards apply under this
section. See 40 CFR part 1036 for CH4 or N2O
standards that apply to engines used in these vehicles.
    (d) You may generate or use emission credits under the ABT program
as described in subpart H of this part. This requires that you specify
a Family Emission Limit (FEL) for CO2 for each vehicle
subfamily. The FEL may not be less than the result of emission modeling
from Sec.  1037.520. These FELs serve as the emission standards for the
vehicle subfamily instead of the standards specified in paragraph (b)
of this section.
    (e) Your vehicles must meet the exhaust emission standards of this
section throughout their full useful life, expressed in service miles
or calendar years, whichever comes first. The following useful life
values apply for the standards of this section:
    (1) 110,000 miles or 10 years, whichever comes first, for vehicles
at or below 19,500 pounds GVWR.
    (2) 185,000 miles or 10 years, whichever comes first, for vehicles
above 19,500 pounds GVWR and at or below 33,000 pounds GVWR.
    (3) 435,000 miles or 10 years, whichever comes first, for vehicles
above 33,000 pounds GVWR.
    (f) See Sec.  1037.631 for provisions that exempt certain vehicles
used in off-road operation from the standards of this section.
    (g) You may optionally certify a vocational vehicle to the
standards and useful life applicable to a higher vehicle service class
(such as medium heavy-duty instead of light heavy-duty), provided you
do not generate credits with the vehicle. If you include smaller
vehicles in a credit-generating subfamily (with an FEL below the
standard), exclude its production volume from the credit calculation.

Sec.  1037.106  Exhaust emission standards for CO2 for
tractors above 26,000 pounds GVWR.

    (a) The CO2 standards of this section apply for tractors
above 26,000 pounds GVWR. Note that the standards of this section do
not apply for vehicles classified as ``vocational tractors'' under
Sec.  1037.630,
    (b) The CO2 standards for tractors above 26,000 pounds
GVWR are given in Table 1 to this section. The provisions of Sec.
1037.241 specify how to comply with these standards.

                 Table 1 to Sec.   1037.106--CO2 Standards for Tractors Above 26,000 Pounds GVWR
----------------------------------------------------------------------------------------------------------------
                                                                                CO2 standard
                                                                                (g/ton-mile)    CO2 standard
                GVWR  (pounds)                            Sub-category               for model     (g/ton-mile)
                                                                                years 2014-   for model year
                                                                                2016       2017 and later
----------------------------------------------------------------------------------------------------------------
26,000 < GVWR <= 33,000.......................  Low-Roof (all cab styles).......             107             104
                                                Mid-Roof (all cab styles).......             119             115
                                                High-Roof (all cab styles)......             124             120
GVWR > 33,000.................................  Low-Roof Day Cab................              81              80
                                                Low-Roof Sleeper Cab............              68              66
                                                Mid-Roof Day Cab................              88              86
                                                Mid-Roof Sleeper Cab............              76              73
                                                High-Roof Day Cab...............              92              89
                                                High-Roof Sleeper Cab...........              75              72
----------------------------------------------------------------------------------------------------------------

    (c) No CH4 or N2O standards apply under this
section. See 40 CFR part 1036 for CH4 or N2O
standards that apply to engines used in these vehicles.
    (d) You may generate or use emission credits under the ABT program,
as

described in subpart H of this part. This requires that you specify a
Family Emission Limit (FEL) for each pollutant you include in the ABT
program for each vehicle subfamily. The FEL may not be less than the
result of emission modeling from Sec.  1037.520. These FELs serve as
the emission standards for the specific vehicle subfamily instead of
the standards specified in paragraph (a) of this section.
    (e) Your vehicles must meet the exhaust emission standards of this
section throughout their full useful life, expressed in service miles
or calendar years, whichever comes first. The following useful life
values apply for the standards of this section:
    (1) 185,000 miles or 10 years, whichever comes first, for vehicles
at or below 33,000 pounds GVWR.
    (2) 435,000 miles or 10 years, whichever comes first, for vehicles
above 33,000 pounds GVWR.
    (f) You may optionally certify a tractor to the standards and
useful life applicable to a higher vehicle service class (such as heavy
heavy-duty instead of medium heavy-duty), provided you do not generate
credits with the vehicle. If you include smaller vehicles in a credit-
generating subfamily (with an FEL below the standard), exclude its
production volume from the credit calculation.

Sec.  1037.115  Other requirements.

    Vehicles required to meet the emission standards of this part must
meet the following additional requirements, except as noted elsewhere
in this part:
    (a) Adjustable parameters. Vehicles that have adjustable parameters
must meet all the requirements of this part for any adjustment in the
physically adjustable range. We may require that you set adjustable
parameters to any specification within the adjustable range during any
testing. See 40 CFR part 86 for information related to determining
whether or not an operating parameter is considered adjustable. You
must ensure safe vehicle operation throughout the physically adjustable
range of each adjustable parameter, including consideration of
production tolerances. Note that adjustable roof fairings are deemed
not to be adjustable parameters.
    (b) Prohibited controls. You may not design your vehicles with
emission control devices, systems, or elements of design that cause or
contribute to an unreasonable risk to public health, welfare, or safety
while operating. For example, this would apply if the vehicle emits a
noxious or toxic substance it would otherwise not emit that contributes
to such an unreasonable risk.
    (c) Air conditioning leakage. Loss of refrigerant from your air
conditioning systems may not exceed 1.50 percent per year, except as
allowed by paragraphs (c)(2) and (3) of this section. Calculate the
total leakage rate in g/year as specified in 40 CFR 86.166. Calculate
the percent leakage rate as: [total leakage rate (g/yr)] / [total
refrigerant capacity (g)] x 100. Round your leakage rate to the nearest
one-hundredth of a percent. See Sec.  1037.150 for vocational vehicles.
    (1) For purpose of this requirement, ``refrigerant capacity'' is
the total mass of refrigerant recommended by the vehicle manufacturer
as representing a full charge. Where full charge is specified as a
pressure, use good engineering judgment to convert the pressure and
system volume to a mass.
    (2) If your system uses a refrigerant other than HFC-134a, adjust
your leakage rate by multiplying it by the global warming potential of
your refrigerant and dividing the product by 1430 (which is the global
warming potential of HFC-134a). Apply this adjustment before comparing
your leakage rate to the standard. Determine global warming potentials
consistent with 40 CFR 86.1866. Note that global warming potentials
represent the equivalent grams of CO2 that would have the
same global warming impact (over 100 years) as one gram of the
refrigerant.
    (3) If your total refrigerant capacity is less than 734 grams, your
leakage rate may exceed 1.50 percent, as long as the total leakage rate
does not exceed 11.0 g/yr. If your system uses a refrigerant other than
HFC-134a, you may adjust your leakage rate as specified in paragraph
(c)(2) of this section.

Sec.  1037.120  Emission-related warranty requirements.

    (a) General requirements. You must warrant to the ultimate
purchaser and each subsequent purchaser that the new vehicle, including
all parts of its emission control system, meets two conditions:
    (1) It is designed, built, and equipped so it conforms at the time
of sale to the ultimate purchaser with the requirements of this part.
    (2) It is free from defects in materials and workmanship that cause
the vehicle to fail to conform to the requirements of this part during
the applicable warranty period.
    (b) Warranty period. (1) Your emission-related warranty must be
valid for at least:
    (i) 5 years or 50,000 miles for spark-ignition vehicles and light
heavy-duty vehicles.
    (ii) 5 years or 100,000 miles for medium and heavy heavy-duty
vehicles.
    (iii) 2 years or 24,000 miles for tires.
    (2) You may offer an emission-related warranty more generous than
we require. The emission-related warranty for the vehicle may not be
shorter than any basic mechanical warranty you provide to that owner
without charge for the vehicle. Similarly, the emission-related
warranty for any component may not be shorter than any warranty you
provide to that owner without charge for that component. This means
that your warranty for a given vehicle may not treat emission-related
and non-emission-related defects differently for any component. The
warranty period begins when the vehicle is placed into service.
    (c) Components covered. The emission-related warranty covers
vehicle speed limiters, idle shutdown systems, fairings, and hybrid
system components, to the extent such emission-related components are
included in the certified emission controls. The emission-related
warranty covers all components whose failure would increase a vehicle's
emissions of air conditioning refrigerants for vehicles subject to air
conditioning leakage standards. The emission-related warranty covers
tires and all components whose failure would increase a vehicle's
evaporative emissions (for vehicles subject to evaporative emission
standards). 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 a vehicle's emissions of any regulated pollutant.
    (d) Limited applicability. You may deny warranty claims under this
section if the operator caused the problem through improper maintenance
or use, as described in 40 CFR 1068.115.
    (e) Owner's manual. Describe in the owners manual the emission-
related warranty provisions from this section that apply to the
vehicle.

Sec.  1037.125  Maintenance instructions and allowable maintenance.

    Give the ultimate purchaser of each new vehicle written
instructions for properly maintaining and using the vehicle, including
the emission control system. The maintenance instructions also apply to
service accumulation on any of your emission-data vehicles. See
paragraph (i) of this section for

requirements related to tire replacement.
    (a) Critical emission-related maintenance. Critical emission-
related maintenance includes any adjustment, cleaning, repair, or
replacement of critical emission-related components. This may also
include additional emission-related maintenance that you determine is
critical if we approve it in advance. You may schedule critical
emission-related maintenance on these components if you demonstrate
that the maintenance is reasonably likely to be done at the recommended
intervals on in-use vehicles. We will accept scheduled maintenance as
reasonably likely to occur if you satisfy any of the following
conditions:
    (1) You present data showing that, if a lack of maintenance
increases emissions, it also unacceptably degrades the vehicle's
performance.
    (2) You present survey data showing that at least 80 percent of
vehicles in the field get the maintenance you specify at the
recommended intervals.
    (3) You provide the maintenance free of charge and clearly say so
in your maintenance instructions.
    (4) You otherwise show us that the maintenance is reasonably likely
to be done at the recommended intervals.
    (b) Recommended additional maintenance. You may recommend any
additional amount of maintenance on the components listed in paragraph
(a) of this section, as long as you state clearly that these
maintenance steps are not necessary to keep the emission-related
warranty valid. If operators do the maintenance specified in paragraph
(a) of this section, but not the recommended additional maintenance,
this does not allow you to disqualify those vehicles from in-use
testing or deny a warranty claim. Do not take these maintenance steps
during service accumulation on your emission-data vehicles.
    (c) Special maintenance. You may specify more frequent maintenance
to address problems related to special situations, such as atypical
vehicle operation. You must clearly state that this additional
maintenance is associated with the special situation you are
addressing. We may disapprove your maintenance instructions if we
determine that you have specified special maintenance steps to address
vehicle operation that is not atypical, or that the maintenance is
unlikely to occur in use. 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.
    (d) Noncritical emission-related maintenance. Subject to the
provisions of this paragraph (d), you may schedule any amount of
emission-related inspection or maintenance that is not covered by
paragraph (a) of this section (that is, maintenance that is neither
explicitly identified as critical emission-related maintenance, nor
that we approve as critical emission-related maintenance). Noncritical
emission-related maintenance generally includes maintenance on the
components we specify in 40 CFR part 1068, Appendix I, that is not
covered in paragraph (a) of this section. You must state in the owners
manual that these steps are not necessary to keep the emission-related
warranty valid. If operators fail to do this maintenance, this does not
allow you to disqualify those vehicles from in-use testing or deny a
warranty claim. Do not take these inspection or maintenance steps
during service accumulation on your emission-data vehicles.
    (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
vehicles, as long as they are reasonable and technologically necessary.
You may perform this non-emission-related maintenance on emission-data
vehicles at the least frequent intervals that you recommend to the
ultimate purchaser (but not the intervals recommended for severe
service).
    (f) Source of parts and repairs. State clearly on the first page of
your written maintenance instructions that a repair shop or person of
the owner's choosing may maintain, replace, or repair emission control
devices and systems. Your instructions may not require components or
service identified by brand, trade, or corporate name. Also, do not
directly or indirectly condition your warranty on a requirement that
the vehicle be serviced by your franchised dealers or any other service
establishments with which you have a commercial relationship. You may
disregard the requirements in this paragraph (f) if you do one of two
things:
    (1) Provide a component or service without charge under the
purchase agreement.
    (2) Get us to waive this prohibition in the public's interest by
convincing us the vehicle will work properly only with the identified
component or service.
    (g) [Reserved]
    (h) Owner's manual. Explain the owner's responsibility for proper
maintenance in the owner's manual.
    (i) Tire maintenance and replacement. Include instructions that
will enable the owner to replace tires so that the vehicle conforms to
the original certified vehicle configuration.

Sec.  1037.135  Labeling.

    (a) Assign each vehicle a unique identification number and
permanently affix, engrave, or stamp it on the vehicle in a legible
way. The vehicle identification number (VIN) serves this purpose.
    (b) At the time of manufacture, affix a permanent and legible label
identifying each vehicle. The label must be--
    (1) Attached in one piece so it is not removable without being
destroyed or defaced.
    (2) Secured to a part of the vehicle needed for normal operation
and not normally requiring replacement.
    (3) Durable and readable for the vehicle's entire life.
    (4) Written in English.
    (c) The label must--
    (1) Include the heading ``VEHICLE EMISSION CONTROL INFORMATION''.
    (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.
    (3) Include EPA's standardized designation for the vehicle family.
    (4) State the regulatory sub-category that determines the
applicable emission standards for the vehicle family (see definition in
Sec.  1037.801).
    (5) State the date of manufacture [DAY (optional), MONTH, and
YEAR]. You may omit this from the label if you stamp, engrave, or
otherwise permanently identify it elsewhere on the engine, in which
case you must also describe in your application for certification where
you will identify the date on the engine.
    (6) Identify the emission control system. Use terms and
abbreviations as described in Appendix III to this part or other
applicable conventions.
    (7) Identify any requirements for fuel and lubricants that do not
involve fuel-sulfur levels.
    (8) State: ``THIS VEHICLE COMPLIES WITH U.S. EPA REGULATIONS FOR
[MODEL YEAR] HEAVY-DUTY VEHICLES.''
    (9) Include the following statement, if applicable: ``THIS VEHICLE
IS

DESIGNED TO COMPLY WITH EVAPORATIVE EMISSION STANDARDS WITH UP TO x
GALLONS OF FUEL TANK CAPACITY.'' Complete this statement by identifying
the maximum specified fuel tank capacity associated with your
certification.
    (d) You may add information to the emission control information
label to identify other emission standards that the vehicle meets or
does not meet (such as European standards). You may also add other
information to ensure that the vehicle will be properly maintained and
used.
    (e) You may ask us to approve modified labeling requirements in
this part 1037 if you show that it is necessary or appropriate. We will
approve your request if your alternate label is consistent with the
requirements of this part.

Sec.  1037.140  Curb weight and roof height.

    (a) Where applicable, a vehicle's curb weight and roof height are
determined from nominal design specifications, as provided in this
section. Round the weight to the nearest pound and height to the
nearest inch. Base roof height on fully inflated tires having a static
loaded radius equal to the arithmetic mean of the largest and smallest
static loaded radius of tires you offer or a standard tire we approve.
    (b) The nominal design specifications must be within the range of
the actual weights and roof heights of production vehicles considering
normal production variability. If after production begins it is
determined that your nominal design specifications do not represent
production vehicles, we may require you to amend your application for
certification under Sec.  1037.225.
    (c) If your vehicle is equipped with an adjustable roof fairing,
measure the roof height with the fairing in its lowest setting.

Sec.  1037.150  Interim provisions.

    The provisions in this section apply instead of other provisions in
this part.
    (a) Incentives for early introduction. The provisions of this
paragraph (a) apply with respect to vehicles produced in model years
before 2014. Manufacturers may voluntarily certify in model year 2013
(or earlier model years for electric vehicles) to the greenhouse gas
standards of this part.
    (1) This paragraph (a)(1) applies for regulatory sub-categories
subject to the standards of Sec.  1037.105 or Sec.  1037.106. Except as
specified in paragraph (a)(3) of this section, to generate early
credits under this paragraph for any vehicles other than electric
vehicles, you must certify your entire U.S.-directed production volume
within the regulatory sub-category to these standards. Except as
specified in paragraph (a)(4) of this section, if some vehicle families
within a regulatory sub-category are certified after the start of the
model year, you may generate credits only for production that occurs
after all families are certified. For example, if you produce three
vehicle families in an averaging set and you receive your certificates
for those families on January 4, 2013, March 15, 2013, and April 24,
2013, you may not generate credits for model year 2013 production in
any of the families that occurs before April 24, 2013. Calculate
credits relative to the standard that would apply in model year 2014
using the equations in subpart H of this part. You may bank credits
equal to the surplus credits you generate under this paragraph (a)
multiplied by 1.50. For example, if you have 1.0 Mg of surplus credits
for model year 2013, you may bank 1.5 Mg of credits. Credit deficits
for an averaging set prior to model year 2014 do not carry over to
model year 2014. These credits may be used to show compliance with the
standards of this part for 2014 and later model years. We recommend
that you notify EPA of your intent to use this provision before
submitting your applications.
    (2) This paragraph (a)(2) applies for regulatory sub-categories
subject to the standards of Sec.  1037.104. To generate early credits
under this paragraph (a)(2) for any vehicles other than electric
vehicles, you must certify your entire U.S.-directed production volume
within the regulatory sub-category to these standards. If you calculate
a separate fleet average for advanced-technology vehicles under Sec.
1037.104(c)(7), you must certify your entire U.S.-directed production
volume of both advanced and conventional vehicles within the regulatory
sub-category. Except as specified in paragraph (a)(4) of this section,
if some test groups are certified after the start of the model year,
you may generate credits only for production that occurs after all test
groups are certified. For example, if you produce three test groups in
an averaging set and you receive your certificates for those test
groups on January 4, 2013, March 15, 2013, and April 24, 2013, you may
not generate credits for model year 2013 production in any of the test
groups that occurs before April 24, 2013. Calculate credits relative to
the standard that would apply in model year 2014 using the applicable
equations in 40 CFR part 86 and your model year 2013 U.S.-directed
production volumes. These credits may be used to show compliance with
the standards of this part for 2014 and later model years. We recommend
that you notify EPA of your intent to use this provision before
submitting your applications.
    (3) You may generate emission credits for the number of additional
SmartWay designated tractors (relative to your 2012 production),
provided you do not generate credits for those vehicles under paragraph
(a)(1) of this section. Calculate credits for each regulatory sub-
category relative to the standard that would apply in model year 2014
using the equations in subpart H of this part. Use a production volume
equal to the number of designated model year 2013 SmartWay tractors
minus the number of designated model year 2012 SmartWay tractors. You
may bank credits equal to the surplus credits you generate under this
paragraph (a)(3) multiplied by 1.50. Your 2012 and 2013 model years
must be equivalent in length.
    (4) This paragraph (a)(4) applies where you do not receive your
final certificate in a regulatory sub-category within 30 days of
submitting your final application for that sub-category. Calculate your
credits for all production that occurs 30 days or more after you submit
your final application for the sub-category.
    (b) Phase-in provisions. Each manufacturer must choose one of the
following options for phasing in the standards of Sec.  1037.104:
    (1) To implement the phase-in under this paragraph (b)(1), the
standards in Sec.  1037.104 apply as specified for model year 2018,
with compliance for vehicles in model years 2014 through 2017 based on
the CO2 target values specified in the following table:

                       Table 1 to Sec.   1037.150
------------------------------------------------------------------------
    Model year and engine cycle         Alternate CO2 target (g/mile)
------------------------------------------------------------------------
2014 Spark-Ignition................  [0.0482 x (WF)] + 371
2015 Spark-Ignition................  [0.0479 x (WF)] + 369

2016 Spark-Ignition................  [0.0469 x (WF)] + 362
2017 Spark-Ignition................  [0.0460 x (WF)] + 354
2014 Compression-Ignition..........  [0.0478 x (WF)] + 368
2015 Compression-Ignition..........  [0.0474 x (WF)] + 366
2016 Compression-Ignition..........  [0.0460 x (WF)] + 354
2017 Compression-Ignition..........  [0.0445 x (WF)] + 343
------------------------------------------------------------------------

    (2) To implement the phase-in under this paragraph (b)(2), the
standards in Sec.  1037.104 apply as specified for model year 2019,
with compliance for vehicles in model years 2014 through 2018 based on
the CO2 target values specified in the following table:

                       Table 2 to Sec.   1037.150
------------------------------------------------------------------------
    Model year and engine cycle         Alternate CO2 target (g/mile)
------------------------------------------------------------------------
2014 Spark-Ignition................  [0.0482 x (WF)] + 371
2015 Spark-Ignition................  [0.0479 x (WF)] + 369
2016-2018 Spark-Ignition...........  [0.0456 x (WF)] + 352
2014 Compression-Ignition..........  [0.0478 x (WF)] + 368
2015 Compression-Ignition..........  [0.0474 x (WF)] + 366
2016-2018 Compression-Ignition.....  [0.0440 x (WF)] + 339
------------------------------------------------------------------------

    (c) Provisions for small manufacturers. Manufacturers meeting the
small business criteria specified in 13 CFR 121.201 for ``Heavy Duty
Truck Manufacturing'' are not subject to the greenhouse gas standards
of Sec. Sec.  1037.104 through 1037.106, as specified in this paragraph
(c). Qualifying manufacturers must notify the Designated Compliance
Officer each model year before introducing these excluded vehicles into
U.S. commerce. This notification must include a description of the
manufacturer's qualification as a small business under 13 CFR 121.201.
You must label your excluded vehicles with the following statement:
``THIS VEHICLE IS EXCLUDED UNDER 40 CFR 1037.150(c).''.
    (d) Air conditioning leakage for vocational vehicles. The air
conditioning leakage standard of Sec.  1037.115 does not apply for
vocational vehicles.
    (e) Model year 2014 N2O standards. In model year 2014
and earlier, manufacturers may show compliance with the N2O
standards using an engineering analysis. This allowance also applies
for later test groups families carried over from model 2014 consistent
with the provisions of 40 CFR 86.1839. You may not certify to an
N2O FEL different than the standard without measuring
N2O emissions.
    (f) Electric vehicles. All electric vehicles are deemed to have
zero emissions of CO2, CH4, and N2O.
No emission testing is required for electric vehicles.
    (g) Compliance date. Compliance with the standards of this part is
optional prior to January 1, 2014. This means that if your 2014 model
year begins before January 1, 2014, you may certify for a partial model
year that begins on January 1, 2014 and ends on the day your model year
would normally end. You must label model year 2014 vehicles excluded
under this paragraph (g) with the following statement: ``THIS VEHICLE
IS EXCLUDED UNDER 40 CFR 1037.150(g).''
    (h) Off-road vehicle exemption. In unusual circumstances, vehicle
manufacturers may ask us to exempt vehicles under Sec.  1037.631 based
on other criteria that are equivalent to those specified in Sec.
1037.631(a). For example, we would normally not grant relief in cases
where the vehicle manufacturer had credits or other compliant tires
were available.
    (i) Credit multiplier for advanced technology. If you generate
credits from vehicles certified with advanced technology, you may
multiply these credits by 1.50, except that you may not apply this
multiplier in addition to the early-credit multiplier of paragraph (a)
of this section.
    (j) Limited prohibition related to early model year engines. The
prohibition in Sec.  1037.601 against introducing into U.S. commerce a
vehicle containing an engine not certified to the standards of this
part does not apply for vehicles using model year 2014 or 2015 spark-
ignition engines, or any model year 2013 or earlier engines.
    (k) Verifying drag areas from in-use vehicles. We may measure the
drag area of your vehicles after they have been placed into service.
Your vehicle conforms to the regulations of this part with respect to
aerodynamic performance if we measure its drag area to be at or below
the maximum drag area allowed for the bin to which that configuration
was certified. To account for measurement variability, your vehicle is
also deemed to conform to the regulations of this part with respect to
aerodynamic performance if we measure its drag area to at or below the
maximum drag area allowed for the bin above the bin to which you
certified (for example, Bin II if you certified the vehicle to Bin
III), unless we determine that you knowingly produced the vehicle to
have a higher drag area than is allowed for the bin to which it was
certified.
    (l) Optional certification under Sec.  1037.104. You may certify
certain complete or cab-complete vehicles to the standards of Sec.
1037.104. All vehicles optionally certified under this paragraph (l)
are deemed to be subject to the standards of Sec.  1037.104. Note that
certification under this paragraph (l) does not affect how you may or
may not certify with respect to criteria pollutants. For example,
certifying a Class 4 vehicle under this paragraph does not allow you to
chassis-certify these vehicles with respect to criteria emissions.
    (1) You may certify complete or cab-complete spark-ignition
vehicles to the standards of Sec.  1037.104.
    (2) You may apply the provisions of Sec.  1037.104 to cab-complete
vehicles based on a complete sister vehicle. In unusual circumstances,
you may ask us to apply these provisions to Class 2b or

3 incomplete vehicles that do not meet the definition of cab-complete.
Except as specified in paragraph (l)(3) of this section, for purposes
of Sec.  1037.104, a complete sister vehicle is a complete vehicle of
the same vehicle configuration (as defined in Sec.  1037.104) as the
cab-complete vehicle. Calculate the target value under Sec.
1037.104(a) based on the same work factor value that applies for the
complete sister vehicle. Test these cab-complete vehicles using the
same equivalent test weight and other dynamometer settings that apply
for the complete vehicle from which you used the work factor value. For
certification, you may submit the test data from that complete sister
vehicle instead of performing the test on the cab-complete vehicle. You
are not required to produce the complete sister vehicle for sale to use
the provisions of this paragraph (l)(2). This means the complete sister
vehicle may be a carryover vehicle from a prior model year or a vehicle
created solely for the purpose of testing.
    (3) You may use as complete sister vehicle a complete vehicle that
is not of the same vehicle configuration as the cab-complete vehicle as
specified in this paragraph (l)(3). This allowance applies where the
complete vehicle is not of the same vehicle configuration as the cab-
complete vehicle only because of factors unrelated to coastdown
performance. If your complete sister vehicle is covered by this
paragraph (l)(3), you may not submit the test data from that complete
sister vehicle and must perform the test on the cab-complete vehicle.
    (m) Loose engine sales. This paragraph (m) applies for spark-
ignition engines identical to engines used in vehicles certified to the
standards of Sec.  1037.104, where you sell such engines as loose
engines or as engines installed in incomplete vehicles that are not
cab-complete vehicles. For purposes of this paragraph (m), engines
would not be considered to be identical if they used different engine
hardware. You may include such engines in a test group certified to the
standards of Sec.  1037.104, subject to the following provisions:
    (1) Engines certified under this paragraph (m) are deemed to be
certified to the standards of 40 CFR 1036.108 as specified in 40 CFR
1036.108(a)(4).
    (2) The U.S.-directed production volume of engines you sell as
loose engines or installed in incomplete heavy-duty vehicles that are
not cab-complete vehicles in any given model year may not exceed ten
percent of the total U.S.-directed production volume of engines of that
design that you produce for heavy-duty applications for that model
year, including engines you produce for complete vehicles, cab-complete
vehicles, and other incomplete vehicles. The total number of engines
you may certify under this paragraph (m), of all engine designs, may
not exceed 15,000 in any model year. Engines produced in excess of
either of these limits are not covered by your certificate. For
example, if you produce 80,000 complete model year 2017 Class 2b pickup
trucks with a certain engine and 10,000 incomplete model year 2017
Class 3 vehicles with that same engine, and you do not apply the
provisions of this paragraph (m) to any other engine designs, you may
produce up to 10,000 engines of that design for sale as loose engines
under this paragraph (m). If you produced 11,000 engines of that design
for sale as loose engines, the last 1,000 of them that you produced in
that model year 2017 would be considered uncertified.
    (3) This paragraph (m) does not apply for engines certified to the
standards of 40 CFR 1036.108(a)(1).
    (4) Label the engines as specified in 40 CFR 1036.135 including the
following compliance statement: ``THIS ENGINE WAS CERTIFIED TO THE
ALTERNATE GREENHOUSE GAS EMISSION STANDARDS OF 40 CFR 1036.108(a)(4).''
List the test group name instead of an engine family name.
    (5) Vehicles using engines certified under this paragraph (m) are
subject to the emission standards of Sec.  1037.105.
    (6) For certification purposes, your engines are deemed to have a
CO2 target value and test result equal to the CO2
target value and test result for the complete vehicle in the applicable
test group with the highest equivalent test weight, except as specified
in paragraph (m)(6)(ii) of this section. Use these values to calculate
your target value, fleet-average emission rate, and in-use emission
standard. Where there are multiple complete vehicles with the same
highest equivalent test weight, select the CO2 target value
and test result as specified in paragraphs (m)(6)(i) and (ii) of this
section:
    (i) If one or more of the CO2 test results exceed the
applicable target value, use the CO2 target value and test
result of the vehicle that exceeds its target value by the greatest
amount.
    (ii) If none of the CO2 test results exceed the
applicable target value, select the highest target value and set the
test result equal to it. This means that you may not generate emission
credits from vehicles certified under this paragraph (m).
    (7) State in your applications for certification that your test
group and engine family will include engines certified under this
paragraph (m). This applies for your greenhouse gas vehicle test group
and your criteria pollutant engine family. List in each application the
name of the corresponding test group/engine family.

Subpart C--Certifying Vehicle families

Sec.  1037.201  General requirements for obtaining a certificate of
conformity.

    (a) You must send us a separate application for a certificate of
conformity for each vehicle family. A certificate of conformity is
valid from the indicated effective date until the end of the model year
for which it is issued, which may not extend beyond December 31 of that
year. You must renew your certification annually for any vehicles you
continue to produce.
    (b) The application must contain all the information required by
this part and must not include false or incomplete statements or
information (see Sec.  1037.255).
    (c) We may ask you to include less information than we specify in
this subpart, as long as you maintain all the information required by
Sec.  1037.250.
    (d) You must use good engineering judgment for all decisions
related to your application (see 40 CFR 1068.5).
    (e) An authorized representative of your company must approve and
sign the application.
    (f) See Sec.  1037.255 for provisions describing how we will
process your application.
    (g) We may perform confirmatory testing on your vehicles; for
example, we may test vehicles to verify drag areas or other GEM inputs.