indicates small emissions increases for some air pollutants in some
near-term analysis years. The agency forecasts emissions increases for
some alternatives because, under all the alternatives analyzed in the
FEIS, increases in vehicle use due to improved fuel efficiency are
projected to result in growth in total miles traveled by heavy-duty
vehicles. The growth in VMT outpaces emissions reductions for some
pollutants, resulting in projected increases for these pollutants. In
addition, NHTSA's NEPA analysis predicted increases in emissions of
some air pollutants under certain alternatives based on assumptions
about the type of technologies manufacturers will use to comply with
the standards (particularly APU use). However, for the reasons
described in Section <IP_ADDRESS> of the RIA, some of those air pollutant
increases are no longer anticipated to occur.
---------------------------------------------------------------------------

    \1008\ 40 CFR 1505.2(c).
    \1009\ 40 CFR 1508.20.
---------------------------------------------------------------------------

    Although limited harmful impacts of the final standards are
projected in some near-term analysis years in the FEIS, the overall
environmental impacts of the final standards are anticipated to be
overwhelmingly beneficial. NHTSA's authority to promulgate new fuel
efficiency standards for heavy-duty vehicles and engines does not allow
the agency to regulate criteria or toxic air pollutants from vehicles
or factors affecting those emissions, such as driving habits.
Consequently, NHTSA must set fuel efficiency standards but is unable to
take steps to mitigate the limited harmful impacts of those standards.
However, EPA has taken additional action in this final rule to control
PM emissions resulting from APU use that, for the reasons described

in Section <IP_ADDRESS> of the RIA, would mitigate some of the projected
harmful impacts. Further, Chapter 8 of the FEIS outlines a number of
other initiatives across the government that could ameliorate the
environmental impacts of motor vehicle use, including the use of heavy-
duty vehicles.
(4) Other Regulatory Notices Related to Environmental Concerns
    This section includes regulatory determinations related to
environmental concerns that are not otherwise included in the FEIS. For
example, NHTSA addresses the following in the FEIS: Conformity
requirements under the Clean Air Act (Chapter <IP_ADDRESS>), the National
Historic Preservation Act (Chapter 7.2), and Environmental Justice
(Chapter 7.5).
(a) Coastal Zone Management Act (CZMA)
    The Coastal Zone Management Act \1010\ provides for the
preservation, protection, development, and (where possible) restoration
and enhancement of the nation's coastal zone resources. Under the
statute, States are provided with funds and technical assistance in
developing coastal zone management programs. Each participating State
must submit its program to the Secretary of Commerce for approval. Once
the program has been approved, any activity of a Federal agency, either
within or outside of the coastal zone, that affects any land or water
use or natural resource of the coastal zone must be carried out in a
manner that is consistent, to the maximum extent practicable, with the
enforceable policies of the State's program.
---------------------------------------------------------------------------

    \1010\ 16 U.S.C. 1451-1466 (as amended).
---------------------------------------------------------------------------

    NHTSA concludes that the CZMA is not applicable to the agency's
decision because it does not involve any activity within, or outside
of, the nation's coastal zones as intended by the statute. These
standards would mitigate some of the anticipated impacts of global
climate change, including potential impacts to coastal zones that would
otherwise have occurred in the absence of agency action. However, the
agency's action will not directly affect any land or water use or
natural resource of a coastal zone.
    The agency has conducted a qualitative review of the related
direct, indirect, and cumulative impacts of the alternatives on
potentially affected resources, including coastal zones, in the FEIS.
See Chapter 5.5 of the FEIS.
(b) Floodplain Management (Executive Orders 11988 and 13690; DOT Order
5650.2)
    These Orders require Federal agencies to avoid the long- and short-
term adverse impacts associated with the occupancy and modification of
floodplains, and to restore and preserve the natural and beneficial
values served by floodplains. Executive Order 11988 also directs
agencies to minimize the impact of floods on human safety, health, and
welfare, and to restore and preserve the natural and beneficial values
served by floodplains through evaluating the potential effects of any
actions the agency may take in a floodplain and ensuring that its
program planning and budget requests reflect consideration of flood
hazards and floodplain management. DOT Order 5650.2 sets forth DOT
policies and procedures for implementing Executive Order 11988. The DOT
Order requires that the agency determine if a proposed action is within
the limits of a base floodplain, meaning it is encroaching on the
floodplain, and whether this encroachment is significant. If
significant, the agency is required to conduct further analysis of the
proposed action and any practicable alternatives. If a practicable
alternative avoids floodplain encroachment, then the agency is required
to implement it.
    In this rulemaking, the agency is not occupying, modifying, or
encroaching on floodplains. The agency, therefore, concludes that the
Orders are not applicable to NHTSA's decision. The agency has, however,
conducted a review of the alternatives on potentially affected
resources, including floodplains, in the FEIS. See Chapter 5.5 of the
FEIS.
(c) Preservation of the Nation's Wetlands (Executive Order 11990 & DOT
Order 5660.1A)
    These Orders require Federal agencies to avoid, to the extent
possible, undertaking or providing assistance for new construction
located in wetlands unless the agency head finds that there is no
practicable alternative to such construction and that the proposed
action includes all practicable measures to minimize harms to wetlands
that may result from such use. Executive Order 11990 also directs
agencies to take action to minimize the destruction, loss, or
degradation of wetlands in ``conducting Federal activities and programs
affecting land use, including but not limited to water and related land
resources planning, regulating, and licensing activities.'' DOT Order
5660.1A sets forth DOT policy for interpreting Executive Order 11990
and requires that transportation projects ``located in or having an
impact on wetlands'' should be conducted to assure protection of the
Nation's wetlands. If a project does have a significant impact on
wetlands, an EIS must be prepared.
    The agency is not undertaking or providing assistance for new
construction located in wetlands. In addition, the agency's action will
not affect land use in wetlands, nor is it a transportation project
``located in or having an impact on wetlands.'' Therefore, the agency
concludes that these Orders do not apply to NHTSA's decision. The
agency has, however, conducted a review of the alternatives on
potentially affected resources, including wetlands. See Section 5.5 of
the FEIS.
(d) Department of Transportation Act (Section 4(f))
    Section 4(f) of the Department of Transportation Act of 1966 (49
U.S.C. 303), as amended, is designed to preserve publicly owned
parklands, waterfowl and wildlife refuges, and significant historic
sites. Specifically, Section 4(f) provides that DOT agencies cannot
approve a transportation program or project that requires the use of
any publicly owned land from a significant public park, recreation
area, or wildlife and waterfowl refuge, or any land from a significant
historic site, and results in a greater than de minimis impact unless a
determination is made that:
    [ssquf] There is no feasible and prudent alternative that
completely avoids the use of Section 4(f) property, and
    [ssquf] The program or project includes all possible planning to
minimize harm to the Section 4(f) property resulting from the
transportation use.
    This rulemaking is not a transportation program or project that
requires the use of any publicly owned land. As a result, NHTSA
concludes that Section 4(f) is not applicable to NHTSA's decision.

C. Paperwork Reduction Act

    The information collection activities in these final rules will be
submitted for approval to the Office of Management and Budget (OMB)
under the PRA. The Information Collection Request (ICR) document that
EPA prepared has been assigned EPA ICR number 2394.05 and OMB Control
Number 2060-0678. You can find a copy of the ICR in the docket for
these final rules, and it is briefly summarized here. The burden
estimates in this section account for the collective information
collection burden imposed

by both agencies. The information collection requirements are not
enforceable until OMB approves them.
    The agencies will collect information to ensure compliance with the
provisions in these rules. This includes a variety of testing,
reporting and recordkeeping requirements for vehicle and engine
manufacturers. Section 208(a) of the CAA requires that manufacturers
provide information the Administrator may reasonably require to
determine compliance with the regulations; submission of the
information is therefore mandatory. We will consider confidential all
information meeting the requirements of section 208(c) of the CAA.
    Respondents/affected entities: Respondents are manufacturers of
engines and vehicles within the North American Industry Classification
System (NAICS) and use the coding structure as defined by NAICS.
336111, 336112, 333618, 336120, 541514, 811112, 811198, 336111, 336112,
422720, 454312, 541514, 541690, 811198, 333618, 336510, for Motor
Vehicle Manufacturers, Engine and Truck Manufacturers, Truck Trailer
Manufacturers, Commercial Importers of Vehicles and Vehicle Components,
and Alternative Fuel Vehicle Converters and Manufacturers.
    Respondent's obligation to respond: The information that is subject
to this collection is collected whenever a manufacturer applies for a
certificate of conformity. Under section 206 of the CAA (42 U.S.C.
7521), a manufacturer must have a certificate of conformity before a
vehicle or engine can be introduced into commerce.
    Estimated number of respondents: It is estimated that this
collection affects approximately 141 engine and vehicle manufacturers.
    Frequency of response: Annually.
    Total estimated burden: The burden to the manufacturers affected by
these rules has a range based on the number of engines and vehicles a
manufacturer produces. The estimated average annual respondent burden
associated with the first three implementation years of the Phase 2
program is 61,800 hours (see Table XIV-1). This estimated burden for
engine and vehicle manufacturers is an average estimate for both new
and existing reporting requirements for calendar years 2017, 2018 and
2019, in which trailer manufacturers will prepare for and begin
certifying for Phase 2 while Phase 1 will continue for the other
affected manufacturers. Burden is defined at 5 CFR 1320.3(b). Burden
means the total time, effort, or financial resources expended by
persons to generate, maintain, retain, or disclose or provide
information to or for a Federal agency. This includes the time needed
to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information.

    Table XIV-1--Burden for Reporting and Recordkeeping Requirements
------------------------------------------------------------------------

------------------------------------------------------------------------
Number of Affected Engine and Vehicle     141.
 Manufacturers.
Annual Labor Hours for Each Manufacturer  Varies.
 to Prepare and Submit Required
 Information.
                                         -------------------------------
  Total Annual Information Collection     61,800 Hours.
   Burden.
------------------------------------------------------------------------

    Total estimated cost: The estimated average annual cost associated
with the first three implementation years of the Phase 2 program is
approximately $8 million. This includes approximately $3 million in
capital and operation & maintenance costs. This estimated cost for
engine and vehicle manufacturers is an average estimate for both new
and existing testing, recordkeeping, and reporting requirements for
calendar years 2017, 2018 and 2019, in which trailer manufacturers will
prepare for and begin certifying for Phase 2 while Phase 1 will
continue for the other affected manufacturers.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in title 40 are listed in 40 CFR part 9. When OMB approves
this ICR, the Agency will announce that approval in the Federal
Register and publish a technical amendment to 40 CFR part 9 to display
the OMB control number for the approved information collection
activities contained in this final rule.

D. Regulatory Flexibility Act

    I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. The
small entities subject to the requirements of this action are small
businesses. EPA has determined that less than 20 percent, and fewer
than 100 regulated entities in each sector may experience an impact of
greater than one percent of their annual revenue. Details of this
analysis are presented in Chapter 12 of the Regulatory Impact Analysis
located in the rulemaking docket (EPA-HQ-OAR-2014-0827), and are
summarized below.
    Pursuant to section 603 of the RFA, the agencies prepared an
initial regulatory flexibility analysis (IRFA) for the proposed rule.
Pursuant to section 609(b) of the RFA, the EPA convened a Small
Business Advocacy Review (SBAR) Panel to obtain advice and
recommendations from representatives of small entities that would
potentially be regulated by the rule. A summary of the IRFA and the
SBAR Panel's recommendations is presented in the proposed rule (at 80
FR 40542, July 13, 2015). The Final Panel Report is also available in
the rulemaking docket.
    The agencies identified four industries that would be potentially
affected by this rulemaking: Alternative fuel engine converters, heavy-
duty engine manufacturers, vocational vehicle chassis manufacturers,
and trailer manufacturers. The agencies proposed and sought comment on
the recommendations from the Panel. The flexibilities proposed for the
engine manufacturers, engine converters, vocational vehicle
manufacturers, and glider manufacturers are adopted in the final rule
and fewer than 20 percent of the small entities in those sectors are
estimated to incur a burden greater than one percent of their annual
revenue. In addition to the flexibilities proposed for the trailer
program, the agencies reduced the number of small entities regulated by
the final rules by limiting the non-box trailer program to three
distinct trailer types. As a result, 73 small business trailer
manufacturers have zero burden from this rulemaking. Of the remaining
small business trailer manufacturers, only 12 percent are estimated to
have an economic impact greater than one percent of their annual
revenue. As a result of these findings, EPA believes it can certify
that these rules will not have a significant economic impact on a
substantial number of small entities under the RFA. See Chapter 12.7
and 12.8 of the Regulatory Impact Analysis (RIA) of these rules for a
more detailed description of the flexibilities adopted for and economic
effects on the small businesses in these sectors.
(1) Legal Basis for Agency Action
    Heavy-duty vehicles are classified as those with gross vehicle
weight ratings

(GVWR) of greater than 8,500 lb. section 202(a) of the Clean Air Act
(CAA) allows EPA to regulate new vehicles and new engines by
prescribing emission standards for pollutants which the Administrator
finds ``may reasonably be anticipated to endanger public health or
welfare.'' In 2009, EPA found that six greenhouse gases (GHGs) were
anticipated to endanger public health or welfare, and new motor
vehicles and new motor vehicle engines contribute to that pollution.
This finding was upheld by the unanimous court in Coalition for
Responsible Regulation v. EPA, 684 F. 3d 102 (D.C. Cir. 2012). Acting
under the authority of the CAA, EPA set the first phase of heavy-duty
vehicle GHG standards (Phase 1) and specified certification
requirements for emissions of four GHGs emitted by mobile sources:
carbon dioxide (CO2), nitrous oxide (N2O),
methane (CH4), and hydrofluorocarbons (HFC).
(2) Summary of Potentially Affected Small Entities
    Table XIV-2 provides an overview of the primary SBA small business
categories potentially affected by this regulation. EPA is not aware of
any small businesses that manufacture complete heavy-duty pickup trucks
and vans or Class 7 and 8 tractors.

             Table XIV-2--Primary Small Business Categories Potentially Affected by This Regulation
----------------------------------------------------------------------------------------------------------------
                                                                                Defined as small entity by
     Industry expected in rulemaking         Industry          NAICS description       SBA if less than or equal
                                          NAICS \a\ code                                          to:
----------------------------------------------------------------------------------------------------------------
Alternative Fuel Engine Converters......          333999  Misc. General Purpose       500 employees.
                                                  811198   Machinery.                 $7.5 million (annual
                                                          All Other Automotive         receipts).
                                                           Repair & Maintenance.
Voc. Vehicle Chassis, Class 7 & 8                 336120  Heavy-Duty Truck            1,500 employees.
 Tractor Manufacturers.                                    Manufacturing.
HD Trailer Manufacturers................          336212  Truck Trailer               1,000 employees.
                                                           Manufacturing.
HD Engine Manufacturers.................          336310  Motor Vehicle Gasoline      1,000 employees.
                                                           Engine & Engine Parts.
----------------------------------------------------------------------------------------------------------------
Note:
\a\ North American Industrial Classification System.

    EPA used the criteria for small entities developed by the Small
Business Administration under the North American Industry
Classification System (NAICS) as a guide. Information about these
entities comes from sources including EPA's certification data, trade
association databases, and previous rulemakings that have affected
these industries. EPA then found employment information for these
companies using the business information database Hoover's Online (a
subsidiary of Dan and Bradstreet). These entities fall under the
categories listed in the table.
    The agencies believe there are about 178 trailer manufacturers and
147 of these manufacturers qualify as small entities with 1,000
employees or less.\1011\ EPA and NHTSA identified ten heavy-duty engine
manufacturers that are currently certifying natural gas engines. Six of
these companies are small businesses. Seventeen companies meet EPA
requirements under 40 CFR part 85 as alternative fuel engine
converters. We believe all 17 of the engine converters qualify as small
businesses. Currently, 20 manufacturers that make chassis for
vocational vehicles certify with EPA under the Phase 1 program and the
agencies have identified an additional 19 small vocational chassis
manufacturers that are not currently certifying under Phase 1.
---------------------------------------------------------------------------

    \1011\ The Small Business Administration amended its
classification criteria for trailer manufacturers between the NPRM
and this final rule. The threshold for qualifying as a small
business trailer manufacturer is now 1,000 employees. Previously the
small business threshold for trailer manufacturers was 500
employees.
---------------------------------------------------------------------------

    Glider kits and glider vehicles are a subset of tractor and
vocational vehicles under the final Phase 2 rulemaking (including for
regulation of criteria pollution emissions). Glider vehicle
manufacturers traditionally purchase or manufacture new vehicle bodies
(vocational vehicles or Class 7 and 8 tractors) for use with older
powertrains and/or complete assembly of these vehicles by installing
the powertrain. The agencies were aware of four glider vehicle
manufacturers (for whom glider vehicle production was a primary
business) at the time of the SBAR Panel and we identified three of
these manufacturers as small entities. We are not aware of any small
businesses that produce glider kits for others to assemble.\1012\
Public comments to the proposed rule indicated that nearly 1,200
purchasers of glider kits, and we presume they would all meet the Act's
definition of ``manufacturer'', which includes anyone who assembles
motor vehicles. See Section I.E.(1)(c). We believe a majority of these
manufacturers qualify as small businesses. However, it is likely that
few of these entities that purchase glider kits do so as their primary
business. It is likely that many (if not most) of these entities
assemble gliders for their own use from glider kits produced by large
heavy-duty vehicle manufacturers. NHTSA is not finalizing fuel
efficiency regulations applicable to gliders or glider kits at this
time.
---------------------------------------------------------------------------

    \1012\ Although this discussion is written based on the
assumption that no small businesses produce glider kits for others
to assemble, the conclusions would also be valid with respect to
small entities that produce glider kits for sale, should they exist.
---------------------------------------------------------------------------

(3) Potential Reporting, Recordkeeping and Compliance Burdens
    For any emission control program, EPA must have assurances that the
regulated products will meet the standards. The program that EPA is
adopting for manufacturers subject to this rule will include testing,
reporting, and recordkeeping requirements. Testing requirements for
these manufacturers include use of EPA's Greenhouse gas Emissions Model
(GEM) vehicle simulation tool to obtain the overall CO2
emissions rate for certification of vocational chassis and trailers,
aerodynamic testing to obtain aerodynamic inputs to GEM for some
tractor and trailer manufacturers and engine dynamometer testing for
alternative fuel engine converters to ensure their conversions meet the
CO2, CH4 and N2O engine standards.
Reporting requirements will likely include emissions test data or model
inputs and results, technical data related to the vehicles, and end-of-
year sales information. Manufacturers will have to keep records of this
information.
(4) Related Federal Rules
    The primary federal rule that is related to the Phase 2 rules under
consideration is the 2011 Greenhouse

Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty
Engines and Vehicles (76 FR 57106, September 15, 2011). The Phase 1
program will continue to be in effect in the absence of these final
rules. Small businesses are exempt under the Phase 1 program.
California adopted its own greenhouse gas initiative, which places
aerodynamic requirements on trailers used in long-haul applications.
(5) Summary of SBREFA Panel Process and Panel Outreach
(a) Significant Panel Findings
    The Small Business Advocacy Review Panel (SBAR Panel, or the Panel)
considered regulatory options and flexibilities to help mitigate
potential adverse effects on small businesses as a result of these
rules. During the SBREFA Panel process, the Panel sought out and
received comments on the regulatory options and flexibilities that were
presented to SERs and Panel members. The recommendations of the Panel
are described below and are also located in the SBREFA Final Panel
Report, which is available in the public docket.
(b) Panel Process
    As required by section 609(b) of the RFA, as amended by SBREFA, we
also conducted outreach to small entities and convened an SBAR Panel to
obtain advice and recommendations of representatives of the small
entities that potentially will be subject to the rule's requirements.
On October 22, 2014, EPA's Small Business Advocacy Chairperson convened
a Panel under section 609(b) of the RFA. In addition to the Chair, the
Panel consisted of the Division Director of the Assessment and
Standards Division of EPA's Office of Transportation and Air Quality,
the Chief Counsel for Advocacy of the Small Business Administration,
and the Administrator of the Office of Information and Regulatory
Affairs within the Office of Management and Budget.
    As part of the SBAR Panel process, we conducted outreach with
representatives of small businesses that will potentially be affected
by the final rulemaking. We met with these Small Entity Representatives
(SERs) to discuss the potential rulemaking approaches and potential
options to decrease the impact of the rulemaking on their industries.
We distributed outreach materials to the SERs; these materials included
background on the rulemaking, possible regulatory approaches, and
possible rulemaking alternatives. The Panel met with SERs from the
industries that will be directly affected by the Phase 2 rules on
November 5, 2014 (trailer manufacturers) and November 6, 2014 (engine
converters and vocational vehicle chassis manufacturers) to discuss the
outreach materials and receive feedback on the approaches and
alternatives detailed in the outreach packet. The Panel also met with
SERs on July 19, 2014 for an initial, introductory outreach meeting,
and held a supplementary outreach meeting with the trailer manufacturer
SERs on October 28, 2014. The Panel received written comments from the
SERs following each meeting in response to discussions had at the
meeting and the questions posed to the SERs by the agency. The SERs
were specifically asked to provide comment on regulatory alternatives
that could help to minimize the rule's impact on small businesses.
    The Panel's findings and discussions were based on the information
that was available during the Panel process and issues that were raised
by the SERs during the outreach meetings and in their comments. It was
agreed that EPA should consider the issues raised by the SERs and
discussions had by the Panel itself, and that EPA should consider
comments on flexibility alternatives that would help to mitigate
negative impacts on small businesses to the extent legally allowable by
the Clean Air Act.
    Alternatives discussed throughout the Panel process included those
offered in previous or current EPA rulemakings, as well as alternatives
suggested by SERs and Panel members. A summary of these recommendations
is detailed below, and a full discussion of the regulatory alternatives
and hardship provisions discussed and recommended by the Panel can be
found in the SBREFA Final Panel Report. A complete discussion of the
provisions for which we are requesting comment and/or proposing in this
action can be found in Sections IV.E and V.D of this Preamble with a
summary in Chapter 12 of the RIA. Also, the Panel Report includes all
comments received from SERs (Appendix B of the Report) and summaries of
the two outreach meetings that were held with the SERs. In accordance
with the RFA/SBREFA requirements, the Panel evaluated the
aforementioned materials and SER comments on issues related to the
IRFA. The Panel's recommendations from the Final Panel Report are
discussed below.
(c) Panel Recommendations
(i) Small Business Trailer Manufacturers
    Comments from trailer manufacturer SERs indicated that these
companies are familiar with most of the technologies presented during
our outreach, but have no experience with EPA certification and do not
anticipate they could manage the accounting and reporting requirements
without additional staff and extensive training. Performance testing,
which is a common requirement for many of EPA's regulatory programs, is
largely unfamiliar to these small business manufacturers and the SERs
believed the cost of testing would be a significant burden on their
companies. In light of this feedback, the Panel recommended a
combination of streamlined compliance and targeted exemptions for these
small businesses based on the specific trailer types that they
manufacture. The Panel believed these strategies would achieve many of
the benefits for the environment by driving adoption of CO2-
reducing technologies, while significantly reducing the burden that
these new regulations would introduce on small businesses.
(ii) Box Trailer Manufacturers
    Box trailer manufacturers have the benefit of relying on the
aerodynamic technology development initiated through EPA's voluntary
SmartWay program. The Panel was aware that EPA planned to propose a
simplified compliance program for all manufacturers, in which
aerodynamic device manufacturers have the opportunity to test and
certify their devices with EPA as technologies that can be used by
trailer manufacturers in their trailer certification. This pre-approved
technology strategy was intended to provide all trailer manufacturers a
means of complying with the standards without the burden of testing. In
the event that this strategy is limited to the early years of the
trailer program for all manufacturers, the Panel recommended that small
manufacturers continue to be given the option to use pre-approved
devices in lieu of testing.
    In the event that small trailer manufacturers adopt pre-approved
aerodynamic technologies and the appropriate tire technologies for
compliance, the Panel recommended an alternative compliance pathway in
which small business trailer manufacturers could simply report to EPA
that all of their trailers include approved technologies in lieu of
collecting all of the required inputs for the GEM vehicle simulation.
(iii) Non-Box Trailer Manufacturers
    The Panel recommended no aerodynamic requirements for non-box
trailers. The non-box trailer SERs indicated that they had no
experience installing aerodynamic devices and had

only seen them in prototype-level demonstrations. In terms of the
aerodynamic devices currently in use, most non-box trailer SERs
identified unique operations in which their trailers are used that
preclude the use of those technologies.
    Some non-box trailer manufacturers had experience with LRR tires
and ATI systems. However, the non-box trailer manufacturer SERs
indicated that LRR tires are not currently available for some of their
trailer types. The SERs noted that tire manufacturers are currently
focused on box trailer applications and there are only a few LRR tire
models that meet the needs of their customers. The Panel recommended
EPA ensure appropriate availability of these tires in order for it to
be deemed a feasible means of achieving these standards and recommended
a streamlined compliance process based on the availability of
technologies. The Panel suggested the best compliance option from a
small business perspective would be for EPA to pre-approve tires,
similar to the approach being proposed for aerodynamic technologies,
and to maintain a list that could be used to exempt small businesses
when no suitable tires are available. However, the Panel recognized the
difficulties of maintaining an up-to-date list of certified
technologies. The Panel recommended that, if EPA did not adopt the
list-based approach, the agency consider a simplified letter-based
compliance option that allows manufacturers to petition EPA for an
exemption if they are unable to identify tires that meet the LRR
performance requirements on a trailer family basis.
(iv) Non-Highway Trailer Manufacturers
    The Panel recommended excluding all trailers that spend a
significant amount of time in off-road applications. These trailers may
not spend much time at highway speeds and aerodynamic devices may
interfere with the vehicle's intended purpose. Additionally, tires with
lower rolling resistance may not provide the type of traction needed in
off-road applications.
(v) Compliance Provisions for all Small Trailer Manufacturers
    Due to the potential for reducing a small business's
competitiveness compared to the larger manufacturers, as well as the
ABT recordkeeping burden, the Panel recommended that EPA consider small
business flexibilities to allow small entities to opt out of ABT
without placing themselves at a competitive disadvantage to larger
firms that adopt ABT, such as a low volume exemption or requiring only
LRR where appropriate. EPA was asked to consider flexibilities for
small businesses that would ease and incentivize their participation in
ABT, such as streamlined the tracking requirements for small
businesses. In addition, the Panel recommended that EPA request comment
on the feasibility and consequences of ABT for the trailer program and
additional flexibilities that will promote small business
participation.
(vi) Lead Time Provisions for all Small Trailer Manufacturers
    For all trailer types that will be included in the rule, the Panel
recommended a 1-year delay in implementation for small trailer
manufacturers at the start of the program to allow them additional lead
time to make the proper staffing adjustments and process changes and
possibly add new infrastructure to meet these requirements. In the
event that EPA is unable to provide pre-approved technologies for
manufacturers to choose for compliance, the Panel recommended that EPA
provide small business trailer manufacturers an additional 1-year delay
for each subsequent increase in stringency. This additional lead time
will allow these small businesses to research and market the
technologies required by the new standards.
(vii) Small Business Alternative Fuel Engine Converters
    To reduce the compliance burden of small business engine converters
who convert engines in previously-certified complete vehicles, the
Panel recommended allowing engine compliance to be sufficient for
certification--meaning that the converted vehicle would not need to be
recertified as a vehicle. This recommended flexibility would eliminate
the need for these small manufacturers to gather all of the additional
component-level information in addition to the engine CO2
performance necessary to properly certify a vehicle with GEM (e.g.,
transmission data, aerodynamic performance, tire rolling resistance,
etc.). In addition, the Panel recommended that small engine converters
be able to submit an engineering analysis, in lieu of measurement, to
show that their converted engines do not increase N2O
emissions. Many of the small engine converters are converting SI-
engines, and the catalysts in these engines are not expected to
substantially impact N2O production. Small engine converters
that convert CI-engines could likely certify by ensuring that their
controls require changes to the SCR dosing strategies.
    The Panel did not recommend separate standards for small business
natural gas engine manufacturers. The Panel stated that it believes
this would discourage entrance for small manufacturers into this
emerging market by adding unnecessary costs to a technology that has
the potential to reduce CO2 tailpipe emissions. In addition,
the Panel noted that additional leakage requirements beyond a sealed
crankcase for small business natural gas-fueled CI engines and
requirements to follow industry standards for leakage could be waived
for small businesses with minimal impact on overall GHG emissions.
    Finally, the Panel recommended that small engine converters receive
a one-year delay in implementation for each increase in stringency
throughout the program. This flexibility will provide small converters
additional lead time to obtain the necessary equipment and perform
calibration testing if needed.
(viii) Emergency Vehicle Chassis Manufacturers
    Fire trucks, and many other emergency vehicles, are built for high
level of performance and reliability in severe-duty applications. Some
of the CO2-reducing technologies listed in the materials
could compromise the fire truck's ability to perform its duties and
many of the other technologies simply provide no benefit in real-world
emergency applications. The Panel recommended proposing less stringent
standards for emergency vehicle chassis manufactured by small
businesses. The Panel suggested that feasible standards could include
adoption of LRR tires at the baseline Phase 2 level and installation of
a Phase 2-compliant engine. In addition, the Panel recommended a
simplified certification approach for small manufacturers who make
chassis for emergency vehicles that reduces the number of inputs these
manufacturers must obtain for GEM.
(ix) Off-Road Vocational Vehicle Chassis Manufacturers
    At the time of the Panel process, EPA's intent was to continue the
exemptions in Phase 1 for off-road and low-speed vocational vehicles
(see generally 76 FR 57175). These provisions currently apply for
vehicles that are defined as ``motor vehicles'' per 40 CFR 85.1703, but
may conduct most of their operations off-road. Vehicles qualifying
under these provisions must comply with the applicable engine standard,
but need not comply with a

vehicle-level GHG standard. The Panel concluded this exemption is
sufficient to cover the small business chassis manufacturers who design
chassis for off-road vocational vehicles.
(x) Custom Chassis Manufacturers
    The Panel concluded that chassis designed for specialty operations
often have limited ability to adopt CO2 and fuel
consumption-reducing technologies due to their unique use patterns. In
addition, the manufacturers of these chassis have very small annual
sales volumes. The Panel recommended that EPA propose a low volume
exemption for these custom chassis manufacturers. The Panel did not
receive sufficient information to recommend a specific sales volume,
but recommended that EPA request comment on how to design a small
business exemption by means of a volume exemption, and an appropriate
annual sales volume threshold.
(xi) Glider Manufacturers
    The Panel was aware that EPA would like to reduce the production of
glider vehicles that have higher emissions of criteria pollutants like
NOX and PM than current engines, and which could have higher
GHG emissions than Phase 2 engines. However, the Panel estimated that
the number of vehicles produced by the small businesses who manufacture
glider kits is too small to have a substantial impact on the total
heavy-duty GHG inventory and recommended that existing small businesses
be allowed to continue assembling glider vehicles without having to
comply with the GHG requirements.\1013\ The Panel recommended that EPA
establish an allowance for existing small business glider manufacturers
to produce some number of glider vehicles for legitimate purposes, such
as for newer vehicles badly damaged in crashes. The Panel recommended
that any other limitations on small business glider production be
flexible enough to allow sales levels as high as the peak levels in the
2010-2012 timeframe.
---------------------------------------------------------------------------

    \1013\ The Panel was unaware of the enormous incrase in glider
vehicle production in recent years, and its attendant adverse
environmental impacts. See section XIII.B.(3) and (4) and RTC
Section 14.2.
---------------------------------------------------------------------------

E. Unfunded Mandates Reform Act

    This action contains a federal mandate under UMRA, 2 U.S.C. 1531-
1538, that may result in expenditures of $100 million or more for
state, local and tribal governments, in the aggregate, or the private
sector in any one year. Accordingly, the agencies have prepared a
statement required under section 202 of UMRA. The statement is included
in the docket for this action and briefly summarized here.
    The agencies have prepared a statement of the cost-benefit analysis
as required by section 202 of the UMRA; this discussion can be found in
this Preamble, and in the RIA. The agencies believe that this action
represents the least costly, most cost-effective approach to achieve
the statutory requirements of the rules. Section IX explains why the
agencies believe that the fuel savings that will result from this
action will lead to lower prices economy wide, improving U.S.
international competitiveness. The costs and benefits associated with
this action are discussed in more detail above in Section IX and in the
Regulatory Impact Analysis, as required by the UMRA.
    This action is not subject to the requirements of section 203 of
UMRA because it contains no regulatory requirements that might
significantly or uniquely affect small governments.

F. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.
    In the spirit of Executive Order 13132, and consistent with EPA
policy to promote communications between EPA and State and local
governments, EPA specifically solicited comment from State and local
officials on the proposed rules.
    NHTSA notes that EPCA contains a provision (49 U.S.C. 32919(a))
that expressly preempts any State or local government from adopting or
enforcing a law or regulation related to fuel economy standards or
average fuel economy standards for automobiles covered by an average
fuel economy standard under 49 U.S.C. Chapter 329. However, commercial
medium- and heavy-duty on-highway vehicles and work trucks are not
``automobiles,'' as defined in 49 U.S.C. 32901(a)(3). In Phase 1 NHTSA
concluded that EPCA's express preemption provision will not reach the
fuel efficiency standards to be established in this rulemaking. NHTSA
is reiterating that conclusion here for the Phase 2 standards.
    NHTSA also considered the issue of implied or conflict preemption.
The possibility of such preemption is dependent upon there being an
actual conflict between a standard established by NHTSA in this
rulemaking and a State or local law or regulation. See Spriestma v.
Mercury Marine, 537 U.S. 51, 64-65 (2002). At present, NHTSA has no
knowledge of any State or local law or regulation that will actually
conflict with one of the fuel efficiency standards to be established in
this rulemaking.

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

    This action does not have tribal implications as specified in
Executive Order 13175. These rules will be implemented at the Federal
level and impose compliance costs only on vehicle and engine
manufacturers. Tribal governments will be affected only to the extent
they purchase and use regulated vehicles. Thus, Executive Order 13175
does not apply to this action.
    Although Executive Order 13175 does not apply to this action, EPA
and NHTSA specifically solicited additional comment from tribal
officials in developing this action.

H. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

    This action is subject to Executive Order 13045 because it is an
economically significant regulatory action as defined by Executive
Order 12866, and the agencies believe that the environmental health or
safety risk addressed by this action may have a disproportionate effect
on children. Accordingly, we have evaluated the environmental health or
safety effects of these risks on children. The results of this
evaluation are discussed below.
    A synthesis of the science and research regarding how climate
change may affect children and other vulnerable subpopulations is
contained in the Technical Support Document for Endangerment or Cause
or Contribute Findings for Greenhouse Gases under section 202(a) of the
Clean Air Act, which can be found in the public docket for this action.
In making those findings, EPA Administrator placed weight on the fact
that certain groups, including children, are particularly vulnerable to
climate-related health effects. In those findings, EPA Administrator
also determined that the health effects of climate change linked to
observed and projected elevated concentrations of GHGs include the
increased likelihood of more frequent and intense heat waves, increases
in ozone concentrations over broad areas of the country, an increase of
the severity of extreme weather events such as hurricanes and floods,
and increasing severity of coastal storms due to rising sea levels.
These effects can all increase

mortality and morbidity, especially in vulnerable populations such as
children, the elderly, and the poor. In addition, the occurrence of
wildfires in North America have increased and are likely to intensify
in a warmer future. PM emissions from these wildfires can contribute to
acute and chronic illnesses of the respiratory system, including
pneumonia, upper respiratory diseases, asthma, and chronic obstructive
pulmonary disease, especially in children.
    The agencies have estimated reductions in projected global mean
surface temperature and sea level rise as a result of reductions in GHG
emissions associated with the standards finalized in this action
(Section VII and NHTSA's FEIS). Due to their vulnerability, children
may receive disproportionate benefits from these reductions in
temperature and the subsequent reduction of increased ozone and
severity of weather events.
    Children are also more susceptible than adults to many air
pollutants because of differences in physiology, higher per body weight
breathing rates and consumption, rapid development of the brain and
bodily systems, and behaviors that increase chances for exposure. Even
before birth, the developing fetus may be exposed to air pollutants
through the mother that affect development and permanently harm the
individual.
    Infants and children breathe at much higher rates per body weight
than adults, with infants under one year of age having a breathing rate
up to five times that of adults.\1014\ In addition, children breathe
through their mouths more than adults and their nasal passages are less
effective at removing pollutants, which leads to a higher deposition
fraction in their lungs.\1015\
---------------------------------------------------------------------------

    \1014\ U.S. Environmental Protection Agency. (2009).
Metabolically-derived ventilation rates: a revised approach based
upon oxygen consumption rates. Washington, DC: Office of Research
and Development. EPA/600/R-06/129F. http://cfpub.epa.gov/ncea/cfm/recordisplay.cfm?deid=202543.
    \1015\ Foos, B.; Marty, M.; Schwartz, J.; Bennet, W.; Moya, J.;
Jarabek, A.M.; Salmon, A.G. (2008) Focusing on children's inhalation
dosimetry and health effects for risk assessment: an introduction. J
Toxicol Environ Health 71A: 149-165.
---------------------------------------------------------------------------

    Certain motor vehicle emissions present greater risks to children
as well. Early life stages (e.g., children) are thought to be more
susceptible to tumor development than adults when exposed to
carcinogenic chemicals that act through a mutagenic mode of
action.\1016\ Exposure at a young age to these carcinogens could lead
to a higher risk of developing cancer later in life.
---------------------------------------------------------------------------

    \1016\ U.S. Environmental Protection Agency. (2005).
Supplemental guidance for assessing susceptibility from early-life
exposure to carcinogens. Washington, DC: Risk Assessment Forum. EPA/
630/R-03/003F. http://www3.epa.gov/raf/publications/pdfs/childrens_supplement_final.pdf.
---------------------------------------------------------------------------

    The adverse effects of individual air pollutants may be more severe
for children, particularly the youngest age groups, than adults. The
Integrated Science Assessments and Criteria Documents for a number of
pollutants affected by these rules, including those for NO2,
SO2, PM, ozone and CO, describe children as a group with
greater susceptibility. Section VIII.A.8 discusses a number of
childhood health outcomes associated with proximity to roadways,
including evidence for exacerbation of asthma symptoms and suggestive
evidence for new onset asthma. In general, these studies do not
identify the specific contaminants associated with adverse effects,
instead addressing the near-roadway environment as one containing
numerous exposures potentially associated with adverse health effects.
    There is substantial evidence that people who live or attend school
near major roadways are more likely to be of a minority race, Hispanic
ethnicity, and/or low SES. Within these highly exposed groups,
children's exposure and susceptibility to health effects is greater
than adults due to school-related and seasonal activities, behavior,
and physiological factors.
    Section VIII.C and NHTSA's FEIS describe the expected emissions
reductions for non-GHG co-pollutants resulting from these standards.
These emissions reductions will lead to reductions in ambient
concentrations of PM2.5, ozone and other non-GHG co-
pollutants. Children are not expected to experience greater ambient
concentrations of air pollutants than the general population. However,
because of their greater susceptibility to air pollution and their
increased time spent outdoors, it is likely that these standards will
have particular benefits for children's health.

I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

    This action is not a ``significant energy action'' because it is
not likely to have a significant adverse effect on the supply,
distribution or use of energy. In fact, these rules have a positive
effect on energy supply and use. Because the combination of the fuel
economy standards and the GHG emission standards will result in
significant fuel savings, this action encourages more efficient use of
fuels. Therefore, we have concluded that this action is not likely to
have any adverse energy effects. Our energy effects analysis is
described above in Section IX and NHTSA's FEIS.

J. National Technology Transfer and Advancement Act and 1 CFR Part 51

    This action involves technical standards.
    The agencies are using the following voluntary consensus standards
from SAE International:
     SAE J1025 (August 2012) is a voluntary consensus standard
describing how to determine a tire's characteristic value for
revolutions per mile. This replaces the proposed approach in which we
instructed manufacturers to determine and use tire diameter as an input
for modeling vehicle emissions.
     SAE J1252 (July 2012) is a voluntary consensus standards
that describes aerodynamic measurement procedures for wind tunnels.
Heavy-duty vehicle testing already relies on these reference standards
under 40 CFR part 1066.
     SAE J1263 (March 2010) and SAE J2263 (December 2008) are
voluntary consensus standards that together establish a test protocol
to determine road-load coefficients for properly testing vehicles on a
chassis dynamometer to simulate in-use operating conditions. Heavy-duty
vehicle testing already relies on these reference standards under 40
CFR part 1066.
     SAE J1594 (July 2010) is a voluntary consensus standards
that describes vehicle aerodynamics terminology. Heavy-duty vehicle
testing already relies on these reference standards under 40 CFR part
1066.
     SAE J1930 (October 2008) is a voluntary consensus
standards that describes terms and abbreviations for engine and vehicle
technologies. We are adopting an updated standard to reflect the
current version.
     SAE J2071 (Revised June 1994) is a voluntary consensus
standards that describes specifications for wind tunnels.
     SAE J2343 (July 2008). This voluntary consensus standard
establishes a minimum hold time for LNG-fueled vehicles following a
refueling event before the tank vents to relieve pressure. This is
described further in Section XIII.A.3.
     SAE J2452 (June 1999) is a voluntary consensus standards
that describes a procedure for measuring tire rolling resistance as
part of a coastdown procedure.
     SAE J2966 (September 2013) is a voluntary consensus
standards that

describes a protocol for using computational fluid dynamics to
determine aerodynamic drag.
    The regulations for the Phase 1 standards included a reference to
SAE J1526 as a test procedure for measuring in-use fuel consumption. An
updated version of SAE J1526 was adopted in September 2015. As noted in
the proposed rule, we are revising the regulations to reference the
updated version of SAE J1526. All SAE documents are available from the
publisher's Web site at www.sae.org.
    We are adopting a standard to facilitate measurement with fourier
transform infrared (FTIR) analyzers--ASTM D6348 (February 2012). We are
also adopting an updated version of ASTM D4809-13, which specifies test
methods for determining the heat of combustion of liquid hydrocarbon
fuels for both Phase 1 and Phase 2 standards.
    We are referencing a new supplement to ANSI NGV1, which we already
use for defining system requirements for compressed natural gas
vehicles. The supplement from the same publisher is known as CSA IR-1-
15, ``Compressed Natural Gas Vehicle (NGV) High Flow Fueling Connection
Devices.'' This documents is available from the ANSI Web site at
www.ansi.org. The supplement will eventually be incorporated into ANSI
NGV1, at which point we would no longer need to reference to CSA IR-1-
15.
    This action also involves technical standards for which there is no
available voluntary consensus standard. First, the agencies are
adopting greenhouse gas emission standards for heavy-duty vehicles that
depend on computer modeling to predict an emission rate based on
various engine and vehicle characteristics. Such a model is not
available from other sources, so EPA has developed the Greenhouse Gas
Emission Model as a simulation tool for demonstrating compliance with
emission standards. See Section II for a detailed description of the
model. A working version of this software is available for download at
http://www3.epa.gov/otaq/climate/gem.htm.
    Second, 40 CFR part 1037 includes several test procedures involving
calculation with numerous physical quantities. We are incorporating by
reference NIST Special Publication 811 to allow for standardization and
consistency of units and nomenclature. This standard, which already
applies for 40 CFR parts 1065 and 1066, is published by the National
Institute of Standards and Technology (Department of Commerce) and is
available at no charge at www.nist.gov.
    Third, the amendments for marine diesel engines involve technical
standards related to the requirements that apply internationally. There
are no voluntary consensus documents that address these technical
standards. In earlier rulemakings, EPA has adopted an incorporation by
reference for MARPOL Annex VI and the NOX Technical code in
40 CFR parts 1042 and 1043. The International Maritime Organization
adopted changes to these documents in 2013 and 2014, which need to be
reflected in 40 CFR parts 1042 and 1043. EPA recently adopted the
updated reference documents in 40 CFR part 1043. As noted in Section
XIV.H.4, this rule includes the remaining step of incorporating the
updated IMO documents by reference in 40 CFR part 1042. All these
documents are available at www.imo.org.

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

    The agencies believe the human health or environmental risk
addressed by this action will not have potential disproportionately
high and adverse human health or environmental effects on minority,
low-income or indigenous populations. The results of this evaluation
are discussed below.
    With respect to GHG emissions, the agencies have determined that
these final rules will not have disproportionately high and adverse
human health or environmental effects on minority, low-income or
indigenous populations because they increase the level of environmental
protection for all affected populations without having any
disproportionately high and adverse human health or environmental
effects on any population, including any minority, low-income or
indigenous population. The reductions in CO2 and other GHGs
associated with the standards will affect climate change projections,
and the agencies have estimated reductions in projected global mean
surface temperatures (Section VII and NHTSA's FEIS). Within communities
experiencing adverse impacts related to climate change, certain parts
of the population may be especially vulnerable; these include the poor,
the elderly, those already in poor health, the disabled, those living
alone, and/or indigenous populations dependent on one or a few
resources.\1017\
---------------------------------------------------------------------------

    \1017\ EPA 2009. Technical Support Document for Endangerment and
Cause of Contribute Findings for Greenhouse Gases under section
202(a) of the Clean Air Act. Available at: http://www3.epa.gov/climatechange/Downloads/endangerment/Endangerment_TSD.pdf.
---------------------------------------------------------------------------

    For non-GHG co-pollutants such as ozone, PM2.5, and
toxics, the agencies have concluded that it is not practicable to
determine whether there will be disproportionately high and adverse
human health or environmental effects on minority, low income and/or
indigenous populations from these rules. As discussed in Section VIII
and NHTSA's FEIS, however, based on the magnitude of the non-GHG co-
pollutant emissions changes predicted to result from these standards,
EPA and NHTSA expect that there will be improvements in ambient air
quality that will likely help in mitigating the disparity in racial,
ethnic, and economically-based exposures.

L. Endangered Species Act (ESA)

    Section 7(a)(2) of the ESA requires federal agencies, in
consultation with the National Oceanic and Atmospheric Administration
Fisheries Service and/or the U.S. Fish and Wildlife Service (FWS), to
ensure that actions they authorize, fund, or carry out are not likely
to jeopardize the continued existence of federally listed endangered or
threatened species or result in the destruction or adverse modification
of designated critical habitat of such species. 16 U.S.C. 1536(a)(2).
Under relevant implementing regulations, section 7(a)(2) applies only
to actions where there is discretionary federal involvement or control.
50 CFR 402.03. Further, consultation is required only for actions that
``may affect'' listed species or critical habitat. 50 CFR 402.14.
Consultation is not required where the action has no effect on such
species or habitat. Under this standard, it is the federal agency
taking the action that evaluates the action and determines whether
consultation is required. See 51 FR 19926, 19949 (June 3, 1986).
Effects of an action include both the direct and indirect effects that
will be added to the environmental baseline. 50 CFR 402.02. Indirect
effects are those that are caused by the action, later in time, and
that are reasonably certain to occur. Id. To trigger a consultation
requirement, there must be a causal connection between the federal
action, the effect in question, and the listed species, and the effect
must be reasonably certain to occur.
    As discussed in this Preamble and the FEIS, the agencies note that
the projected environmental effects of this rule are highly positive.
However, the fact that the rule will have overall positive effects on
the environment does not mean that the rule ``may affect'' any listed
species or designated critical

habitat within the meaning of ESA section 7(a)(2) or the implementing
regulations or require ESA consultation. We have carefully considered
various types of potential environmental effects, including emissions
of GHGs and non-GHGs, in reaching the conclusion that ESA consultation
is not required for this rule.
    With respect to the projected GHG emission reductions, we are
mindful of significant legal and technical analysis undertaken by FWS
and the U.S. Department of the Interior in the context of listing the
polar bear as a threatened species under the ESA. In that context, in
2008, FWS and DOI expressed the view that the best scientific data
available were insufficient to draw a causal connection between GHG
emissions and effects on the species in its habitat.\1018\ The DOI
Solicitor concluded that where the effect at issue is climate change,
actions involving GHG emissions cannot pass the ``may affect'' test of
the section 7 regulations and thus are not subject to ESA consultation.
Similarly, for this action, in the absence of a causal connection
between the final rules and an effect to listed species or critical
habitat that is reasonably certain to occur, no consultation is
required.
---------------------------------------------------------------------------

    \1018\ See, e.g., 73 FR 28212, 28300 (May 15, 2008); 73 FR 76249
(Dec. 16, 2008); Memorandum from David Longly Bernhardt, Solicitor,
U.S. Department of the Interior re: ``Guidance on the Applicability
of the Endangered Species Act's Consultation Requirements to
Proposed Actions Involving the Emission of Greenhouse Gases'' (Oct.
3, 2008).
---------------------------------------------------------------------------

    The agencies have also previously considered issues relating to GHG
emissions in connection with the requirements of ESA section 7(a)(2).
Although the GHG emission reductions projected for this rule are large,
EPA evaluated comparable or larger reductions in assessing this same
issue in the context of the light duty vehicle GHG emission standards
for model years 2012-2016 and 2017-2025. There the agency projected
emission reductions comparable to, or greater than those projected here
over the lifetimes of the model years in question and, based on air
quality modeling of potential environmental effects, concluded that
``EPA knows of no modeling tool which can link these small, time-
attenuated changes in global metrics to particular effects on listed
species in particular areas. Extrapolating from global metric to local
effect with such small numbers, and accounting for further links in a
causative chain, remain beyond current modeling capabilities.'' EPA,
Light Duty Vehicle Greenhouse Gas Standards and Corporate Average Fuel
Economy Standards, Response to Comment Document for Joint Rulemaking at
4-102 (Docket EPA-OAR-HQ-2009-4782). EPA reached this conclusion after
evaluating issues relating to potential improvements relevant to both
temperature and oceanographic pH outputs. EPA's ultimate finding was
that ``any potential for a specific impact on listed species in their
habitats associated with these very small changes in average global
temperature and ocean pH is too remote to trigger the threshold for ESA
section 7(a)(2).'' Id. EPA and NHTSA believe that the same conclusion
will apply to the present final rule, given that the projected
CO2 emission reductions are comparable to or less than those
projected for either of the light duty vehicle rules. See Section
VII.D.2 and Table VII-41 of this Preamble; See also, e.g., Ground Zero
Center for Non-Violent Action v. U.S. Dept. of Navy, 383 F. 3d 1082,
1091-92 (9th Cir. 2004) (where the likelihood of jeopardy to a species
from a federal action is extremely remote, ESA does not require
consultation).

M. Congressional Review Act (CRA)

    This action is subject to the CRA, and the agencies will submit a
rule report to each House of the Congress and to the Comptroller
General of the United States. This action is a ``major rule'' as
defined by 5 U.S.C. 804(2).

XV. EPA and NHTSA Statutory Authorities

    As described below, the regulations being adopted are authorized
separately for EPA and NHTSA under the agencies' respective statutory
authorities. See Section I for a discussion of these authorities.

A. EPA

    Statutory authority for the vehicle controls is found in CAA
section 202(a) (which authorizes standards for emissions of pollutants
from new motor vehicles that emissions cause or contribute to air
pollution which may reasonably be anticipated to endanger public health
or welfare), and CAA sections 202(d), 203-209, 216, and 301 (42 U.S.C.
7521(a), 7521(d), 7522-7543, 7550, and 7601).
    EPA makes certain proposed rules available to the Science Advisory
Board (SAB), including rules subject to 42 U.S.C. 4365 and rules which
are not, but which EPA believes should be made available to the SAB.
EPA provided information to the SAB about this rulemaking and on June
11, 2014, the chartered SAB discussed the recommendations of its work
group on the planned action and agreed that no further SAB
consideration of the rule or its supporting science was merited. We
note further that the substantial NAS report to NHTSA and to Congress
evaluating medium- and heavy-duty truck fuel efficiency improvement
opportunities (see Section I.A.2 (g) above) would serve as a surrogate
for SAB consultation. See American Petroleum Inst. v. EPA, 665 F. 2d
1176, 1189 (D.C. Cir. 1981).

 B. NHTSA

    Statutory authority for the fuel consumption standards is found in
section 103 of the Energy Independence and Security Act of 2007, 49
U.S.C. 32902(k). EISA authorizes a fuel efficiency improvement program,
designed to achieve the maximum feasible improvement to be created for
commercial medium- and heavy-duty on-highway vehicles and work trucks,
to implement appropriate test methods, measurement metrics, fuel
economy standards, and compliance and enforcement protocols that are
appropriate, cost-effective and technologically feasible. To the extent
motor vehicle safety is implicated, NHTSA's authority to regulate it is
also derived from the National Traffic and Motor Vehicle Safety Act, 49
U.S.C. 30101 et seq.

List of Subjects

40 CFR Part 9

    Reporting and recordkeeping requirements.

40 CFR Part 22

    Administrative practice and procedure, Air pollution control,
Hazardous substances, Hazardous waste, Penalties, Pesticides and pests,
Poison prevention, Water pollution control.

40 CFR Part 85

    Confidential business information, Imports, Labeling, Motor vehicle
pollution, Reporting and recordkeeping requirements, Research,
Warranties.

40 CFR Part 86

    Administrative practice and procedure, Confidential business
information, Incorporation by reference, Labeling, Motor vehicle
pollution, Reporting and recordkeeping requirements.

40 CFR Part 600

    Administrative practice and procedure, Electric power, Fuel
economy, Incorporation by reference, Labeling, Reporting and
recordkeeping requirements.

40 CFR Part 1033

    Administrative practice and procedure, Air pollution control.

40 CFR Parts 1036 and 1037

    Environmental protection, Administrative practice and procedure,
Air pollution control, Confidential business information, Incorporation
by reference, Labeling, Motor vehicle pollution, Reporting and
recordkeeping requirements, Warranties.

40 CFR Part 1039

    Environmental protection, Administrative practice and procedure,
Air pollution control, Confidential business information, Imports,
Labeling, Penalties, Reporting and recordkeeping requirements,
Warranties.

40 CFR Part 1042

    Environmental protection, Administrative practice and procedure,
Air pollution control, Confidential business information, Imports,
Incorporation by reference, Labeling, Penalties, Reporting and
recordkeeping requirements, Vessels, Warranties.

40 CFR Part 1043

    Environmental protection, Administrative practice and procedure,
Air pollution control, Imports, Incorporation by reference, Vessels,
Reporting and recordkeeping requirements.

40 CFR Parts 1065 and 1066

    Administrative practice and procedure, Air pollution control,
Incorporation by reference, Reporting and recordkeeping requirements,
Research.

40 CFR Part 1068

    Administrative practice and procedure, Confidential business
information, Imports, Incorporation by reference, Motor vehicle
pollution, Penalties, Reporting and recordkeeping requirements,
Warranties.

49 CFR Parts 523, 534, and 535

    Fuel economy, Reporting and recordkeeping requirements.

49 CFR Part 538

    Administrative practice and procedure, Fuel economy, Motor
vehicles, Reporting and recordkeeping requirements.
    For the reasons set out in the Preamble, title 40, chapter I of the
Code of Federal Regulations is amended as set forth below.

PART 9--OMB APPROVALS UNDER THE PAPERWORK REDUCTION ACT

0
1. The authority citation for part 9 continues to read as follows:

    Authority:  7 U.S.C. 135 et seq., 136-136y; 15 U.S.C. 2001,
2003, 2005, 2006, 2601-2671; 21 U.S.C. 331j, 346a, 31 U.S.C. 9701;
33 U.S.C. 1251 et seq., 1311, 1313d, 1314, 1318, 1321, 1326, 1330,
1342, 1344, 1345(d) and (e), 1361; E.O. 11735, 38 FR 21243, 3 CFR,
1971-1975 Comp. p. 973; 42 U.S.C. 241, 242b, 243, 246, 300f, 300g,
300g-1, 300g-2, 300g-3, 300g-4, 300g-5, 300g-6, 300j-1, 300j-2,
300j-3, 300j-4, 300j-9, 1857 et seq., 6901-6992k, 7401-7671q, 7542,
9601-9657, 11023, 11048.

0
2. In Sec.  9.1 the table is amended by:
0
a. Adding in numerical order by CFR designation a new undesignated
center heading ``Control of Emissions from New and In-Use Heavy-Duty
Highway Engines'' and its entry in numerical order for ``1036.825'';
0
b. Adding in numerical order by CFR designation a new undesignated
center heading ``Control of Emissions from New Heavy-Duty Motor
Vehicles'' and its entry in numerical order for ``1037.825''; and
0
c. Adding in numerical order by CFR designation a new undesignated
center heading ``Control of NOX SOX, and PM
Emissions from Marine Engines and Vessels Subject to the MARPOL
Protocol'' and its entries in numerical order for ``1043.40-1043.95''.
    The additions read as follows:

Sec.  9.1  OMB approvals under the Paperwork Reduction Act.

* * * * *

------------------------------------------------------------------------
                   40 CFR citation                      OMB control No.
------------------------------------------------------------------------

                              * * * * * * *
------------------------------------------------------------------------
   Control of Emissions From New and In-Use Heavy-Duty Highway Engines
------------------------------------------------------------------------
1036.825............................................           2060-0678
------------------------------------------------------------------------
         Control of Emissions From New Heavy-Duty Motor Vehicles
------------------------------------------------------------------------
1037.825............................................           2060-0678

                              * * * * * * *
------------------------------------------------------------------------
  Control of NOX, SOX, and PM Emissions From Marine Engines and Vessels
                     Subject to the Marpol Protocol
------------------------------------------------------------------------
1043.40-1043.95.....................................           2060-0641

                              * * * * * * *
------------------------------------------------------------------------

* * * * *

PART 22--CONSOLIDATED RULES OF PRACTICE GOVERNING THE
ADMINISTRATIVE ASSESSMENT OF CIVIL PENALTIES AND THE REVOCATION/
TERMINATION OR SUSPENSION OF PERMITS

0
3. The authority citation for part 22 continues to read as follows:

    Authority: 7 U.S.C. 136(l); 15 U.S.C. 2615; 33 U.S.C. 1319,
1342, 1361, 1415 and 1418; 42 U.S.C. 300g-3(g), 6912, 6925, 6928,
6991e and 6992d; 42 U.S.C. 7413(d), 7524(c), 7545(d), 7547, 7601 and
7607(a), 9609, and 11045.

Subpart A--General

0
4. Section 22.1 is amended by revising paragraph (a)(2) to read as
follows:

Sec.  22.1  Scope of this part.

    (a) * * *
    (2) The assessment of any administrative civil penalty under
sections 113(d), 205(c), 211(d) and 213(d) of the Clean Air Act, as
amended (42 U.S.C. 7413(d), 7524(c), 7545(d) and 7547(d)), and a
determination of nonconforming engines, vehicles or equipment under
sections 207(c) and

213(d) of the Clean Air Act, as amended (42 U.S.C. 7541(c) and
7547(d));
* * * * *

Subpart C--Prehearing Procedures

0
5. Section 22.34 is revised to read as follows:

Sec.  22.34  Supplemental rules governing the administrative assessment
of civil penalties under the Clean Air Act.

    (a) Scope. This section shall apply, in conjunction with Sec. Sec.
22.1 through 22.32, in administrative proceedings to assess a civil
penalty conducted under sections 113(d), 205(c), 211(d), and 213(d) of
the Clean Air Act, as amended (42 U.S.C. 7413(d), 7524(c), 7545(d), and
7547(d)), and a determination of nonconforming engines, vehicles or
equipment under sections 207(c) and 213(d) of the Clean Air Act, as
amended (42 U.S.C. 7541(c) and 7547(d)). Where inconsistencies exist
between this section and Sec. Sec.  22.1 through 22.32, this section
shall apply.
    (b) Issuance of notice. Prior to the issuance of a final order
assessing a civil penalty or a final determination of nonconforming
engines, vehicles or equipment, the person to whom the order or
determination is to be issued shall be given written notice of the
proposed issuance of the order or determination. Service of a complaint
or a consent agreement and final order pursuant to Sec.  22.13
satisfies these notice requirements.

PART 85--CONTROL OF AIR POLLUTION FROM MOBILE SOURCES

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

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

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

0
7. Section 85.525 is revised to read as follows:

Sec.  85.525  Applicable standards.

    To qualify for an exemption from the tampering prohibition,
vehicles/engines that have been converted to operate on a different
fuel must meet emission standards and related requirements as described
in this section. The modified vehicle/engine must meet the requirements
that applied for the OEM vehicle/engine, or the most stringent OEM
vehicle/engine standards in any allowable grouping. Fleet average
standards do not apply unless clean alternative fuel conversions are
specifically listed as subject to the standards.
    (a) If the vehicle/engine was certified with a Family Emission
Limit for NOX, NOX+HC, NOX+NMOG, or
particulate matter, as noted on the vehicle/engine emission control
information label, the modified vehicle/engine may not exceed this
Family Emission Limit.
    (b) Compliance with greenhouse gas emission standards is
demonstrated as follows:
    (1) Subject to the following exceptions and special provisions,
compliance with light-duty vehicle greenhouse gas emission standards is
demonstrated by complying with the N2O and CH4
standards and provisions set forth in 40 CFR 86.1818-12(f)(1) and the
in-use CO2 exhaust emission standard set forth in 40 CFR
86.1818-12(d) as determined by the OEM for the subconfiguration that is
identical to the fuel conversion emission data vehicle (EDV):
    (i) If the OEM complied with the light-duty greenhouse gas
standards using the fleet averaging option for N2O and
CH4, as allowed under 40 CFR 86.1818-12(f)(2), the
calculations of the carbon-related exhaust emissions require the input
of grams/mile values for N2O and CH4, and you are
not required to demonstrate compliance with the standalone
CH4 and N2O standards.
    (ii) If the OEM complied with alternate standards for
N2O and/or CH4, as allowed under 40 CFR 86.1818-
12(f)(3), you may demonstrate compliance with the same alternate
standards.
    (iii) If the OEM complied with the nitrous oxide (N2O)
and methane (CH4) standards and provisions set forth in 40
CFR 86.1818-12(f)(1) or (3), and the fuel conversion CO2
measured value is lower than the in-use CO2 exhaust emission
standard, you also have the option to convert the difference between
the in-use CO2 exhaust emission standard and the fuel
conversion CO2 measured value into GHG equivalents of
CH4 and/or N2O, using 298 g CO2 to
represent 1 g N2O and 25 g CO2 to represent 1 g
CH4. You may then subtract the applicable converted values
from the fuel conversion measured values of CH4 and/or
N2O to demonstrate compliance with the CH4 and/or
N2O standards.
    (iv) Optionally, compliance with greenhouse gas emission
requirements may be demonstrated by comparing emissions from the
vehicle prior to the fuel conversion to the emissions after the fuel
conversion. This comparison must be based on FTP test results from the
emission data vehicle (EDV) representing the pre-conversion test group.
The sum of CO2, CH4, and N2O shall be
calculated for pre- and post-conversion FTP test results, where
CH4 and N2O are weighted by their global warming
potentials of 25 and 298, respectively. The post-conversion sum of
these emissions must be lower than the pre-conversion conversion
greenhouse gas emission results. CO2 emissions are
calculated as specified in 40 CFR 600.113-12. If statements of
compliance are applicable and accepted in lieu of measuring
N2O, as permitted by EPA regulation, the comparison of the
greenhouse gas results also need not measure or include N2O
in the before and after emission comparisons.
    (2) Compliance with heavy-duty engine greenhouse gas emission
standards is demonstrated by complying with the CO2,
N2O, and CH4 standards (or FELs, as applicable)
and provisions set forth in 40 CFR 1036.108 for the engine family that
is represented by the fuel conversion emission data engine (EDE). The
following additional provisions apply:
    (i) If the fuel conversion CO2 measured value is lower
than the CO2 standard (or FEL, as applicable), you have the
option to convert the difference between the CO2 standard
(or FEL, as applicable) and the fuel conversion CO2 measured
value into GHG equivalents of CH4 and/or N2O,
using 298 g/hp-hr CO2 to represent 1 g/hp-hr N2O.
Similarly, you may use 34 g/hp-hr CO2 to represent 1 g/hp-hr
CH4 for model year 2021 and later engines, and you may use
25 g/hp-hr CO2 to represent 1 g/hp-hr CH4 for
earlier engines. You may then subtract the applicable converted values
from the fuel conversion measured values of CH4 and/or
N2O to demonstrate compliance with the CH4 and/or
N2O standards (or FEL, as applicable).
    (ii) Small volume conversion manufacturers may demonstrate
compliance with N2O standards based on an engineering
analysis.
    (iii) For conversions of engines installed in vocational vehicles
subject to Phase 2 standards under 40 CFR 1037.105 or in tractors
subject to Phase 2 standards under 40 CFR 1037.106, conversion
manufacturers may omit a demonstration related to the vehicle-based
standards, as long as they have a reasonable technical basis for
believing that the modified vehicle continues to meet those standards.
    (3) Subject to the following exceptions and special provisions,
compliance with greenhouse gas emission standards for heavy-duty
vehicles subject to 40 CFR 86.1819 is demonstrated by complying with
the N2O and CH4 standards and provisions set
forth in 40 CFR 86.1819 and the in-use CO2 exhaust emission
standard set forth in 40 CFR 86.1819-14(b) as determined by the OEM for
the

subconfiguration that is identical to the fuel conversion emission data
vehicle (EDV):
    (i) If the OEM complied with alternate standards for N2O
and/or CH4, as allowed under 40 CFR 86.1819-14(c) you may
demonstrate compliance with the same alternate standards.
    (ii) If you are unable to meet either the N2O or
CH4 standards and your fuel conversion CO2
measured value is lower than the in-use CO2 exhaust emission
standard, you may also convert the difference between the in-use
CO2 exhaust emission standard and the fuel conversion
CO2 measured value into GHG equivalents of CH4
and/or N2O, using 298 g CO2 to represent 1 g
N2O. Similarly, you may use 34 g CO2 to represent
1 g CH4.for model year 2021 and later vehicles, and you may
use 25 g CO2 to represent 1 g CH4 for earlier
vehicles. You may then subtract the applicable converted values from
the fuel conversion measured values of CH4 and/or
N2O to demonstrate compliance with the CH4 and/or
N2O standards.
    (iii) You may alternatively comply with the greenhouse gas emission
requirements by comparing emissions from the vehicle before and after
the fuel conversion. This comparison must be based on FTP test results
from the emission data vehicle (EDV) representing the pre-conversion
test group. The sum of CO2, CH4, and
N2O shall be calculated for pre- and post-conversion FTP
test results, where CH4 and N2O are weighted by
their global warming potentials as described in paragraph (b)(3)(ii) of
this section. The post-conversion sum of these emissions must be lower
than the pre-conversion greenhouse gas emission result. Calculate
CO2 emissions as specified in 40 CFR 600.113. If we waive
N2O measurement requirements based on a statement of
compliance, disregard N2O for all measurements and
calculations under this paragraph (b)(3)(iii).
    (c) Conversion systems for engines that would have qualified for
chassis certification at the time of OEM certification may use those
procedures, even if the OEM did not. Conversion manufacturers choosing
this option must designate test groups using the appropriate criteria
as described in this subpart and meet all vehicle chassis certification
requirements set forth in 40 CFR part 86, subpart S.

Subpart O--Urban Bus Rebuild Requirements

0
8. Section 85.1406 is amended by revising paragraph (f)(2) to read as
follows:

Sec.  85.1406  Certification.

* * * * *
    (f) * * *
    (2) If the equipment certifier disagrees with such determination of
nonconformity and so advises the Agency, the Administrator shall afford
the equipment certifier and other interested persons an opportunity to
present their views and evidence in support thereof at a public hearing
conducted in accordance with procedures found in 40 CFR part 1068,
subpart G.

Subpart P--Importation of Motor Vehicles and Motor Vehicle Engines

0
9. Section 85.1508 is amended by revising paragraph (c) to read as
follows:

Sec.  85.1508  ``In Use'' inspections and recall requirements.

* * * * *
    (c) A certificate holder will be notified whenever the
Administrator has determined that a substantial number of a class or
category of the certificate holder's vehicles or engines, although
properly maintained and used, do not conform to the regulations
prescribed under section 202 when in actual use throughout their useful
lives (as determined under section 202(d)). After such notification,
the Recall Regulations at 40 CFR part 1068, subpart G, shall govern the
certificate holder's responsibilities and references to a manufacturer
in the Recall Regulations shall apply to the certificate holder.

0
10. Section 85.1513 is amended by revising paragraph (e)(4) to read as
follows:

Sec.  85.1513  Prohibited acts; penalties.

* * * * *
    (e) * * *
    (4) Hearings on suspensions and revocations of certificates of
conformity or of eligibility to perform modification/testing under
Sec.  85.1509 shall be held in accordance with 40 CFR part 1068,
subpart G.
* * * * *

Subpart R--Exclusion and Exemption of Motor Vehicles and Motor
Vehicle Engines

0
11. Section 85.1701 is amended by revising paragraph (a)(1) to read as
follows:

Sec.  85.1701  General applicability.

    (a) * * *
    (1) Beginning January 1, 2014, the exemption provisions of 40 CFR
part 1068, subpart C, apply instead of the provisions of this subpart
for heavy-duty motor vehicle engines regulated under 40 CFR part 86,
subpart A, except that the nonroad competition exemption of 40 CFR
1068.235 and the nonroad hardship exemption provisions of 40 CFR
1068.245, 1068.250, and 1068.255 do not apply for motor vehicle
engines.
* * * * *

0
12. Section 85.1703 is amended by adding paragraph (b) to read as
follows:

Sec.  85.1703  Definition of motor vehicle.

* * * * *
    (b) Note that, in applying the criterion in paragraph (a)(2) of
this section, vehicles that are clearly intended for operation on
highways are motor vehicles. Absence of a particular safety feature is
relevant only when absence of that feature would prevent operation on
highways.

0
13. Section 85.1706 is amended by revising paragraph (b) to read as
follows:

Sec.  85.1706  Pre-certification exemption.

* * * * *
    (b) Any manufacturer that desires a pre-certification exemption and
is in the business of importing, modifying or testing uncertified
vehicles for resale under the provisions of 40 CFR 85.1501 through
85.1515, must send the request to the Designated Compliance Officer as
specified in 40 CFR 1068.30. The Designated Compliance Officer may
require such manufacturers to submit information regarding the general
nature of the fleet activities, the number of vehicles involved, and a
demonstration that adequate record-keeping procedures for control
purposes will be employed.

0
14. Section 85.1711 is revised to read as follows:

Sec.  85.1711  Submission of exemption requests.

    Requests for exemption or further information concerning exemptions
and/or the exemption request review procedure should be addressed to
the Designated Compliance Officer as specified at 40 CFR 1068.30.

Sec. Sec.  85.1713 and 85.1714   [Removed]

0
15. Remove and reserve Sec. Sec.  85.1713 and 85.1714.

Subpart T--Emission Defect Reporting Requirements

0
16. Section 85.1901 is revised to read as follows:

Sec.  85.1901  Applicability.

    (a) The requirements of this subpart shall be applicable to all
1972 and later model year motor vehicles and motor vehicle engines,
except that the provisions of 40 CFR 1068.501 apply

instead for heavy-duty motor vehicle engines certified under 40 CFR
part 86, subpart A, and for heavy-duty motor vehicles certified under
40 CFR part 1037 starting January 1, 2018.
    (b) The requirement to report emission-related defects affecting a
given class or category of vehicles or engines shall remain applicable
for five years from the end of the model year in which such vehicles or
engines were manufactured.

0
17. Section 85.1902 is revised to read as follows:

Sec.  85.1902  Definitions.

    For the purposes of this subpart and unless otherwise noted:
    (a) Act means the Clean Air Act, 42 U.S.C. 7401-7671q, as amended.
    (b) Emission-related defect means:
    (1) A defect in design, materials, or workmanship in a device,
system, or assembly described in the approved Application for
Certification that affects any parameter or specification enumerated in
appendix VIII of this part; or
    (2) A defect in the design, materials, or workmanship in one or
more emission-related parts, components, systems, software or elements
of design which must function properly to ensure continued compliance
with emission standards.
    (c) Useful life has the meaning given in section 202(d) of the Act
(42 U.S.C.7521(d)) and regulations promulgated thereunder.
    (d) Voluntary emissions recall means a repair, adjustment, or
modification program voluntarily initiated and conducted by a
manufacturer to remedy any emission-related defect for which direct
notification of vehicle or engine owners has been provided, including
programs to remedy defects related to emissions standards for
CO2, CH4, N2O, and/or carbon-related
exhaust emissions.
    (e) Ultimate purchaser has the meaning given in section 216 of the
Act (42 U.S.C.7550).
    (f) Manufacturer has the meaning given in section 216 of the Act
(42 U.S.C.7550).

0
18. Section 85.1906 is amended by revising paragraph (a) to read as
follows:

Sec.  85.1906   Report filing: Record retention.

    (a) The reports required by Sec. Sec.  85.1903 and 85.1904 shall be
sent to the Designated Compliance Officer as specified at 40 CFR
1068.30.
* * * * *

Subpart V--Emissions Control System Performance Warranty
Regulations and Voluntary Aftermarket Part Certification Program

0
19. Section 85.2109 is amended by revising paragraph (a)(6) to read as
follows:

Sec.  85.2109   Inclusion of warranty provisions in owners' manuals and
warranty booklets.

    (a) * * *
    (6) An explanation that an owner may obtain further information
concerning the emission performance warranty or that an owner may
report violations of the terms of the Emission Performance Warranty by
contacting the Designated Compliance Officer as specified at 40 CFR
1068.30 (Attention: Warranty Claim).
* * * * *

0
20. Section 85.2110 is amended by revising paragraph (b) to read as
follows:

Sec.  85.2110   Submission of owners' manuals and warranty statements
to EPA.

* * * * *
    (b) All materials described in paragraph (a) of this section shall
be sent to the Designated Compliance Officer as specified at 40 CFR
1068.30 (Attention: Warranty Booklet).

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

0
21. The authority citation for part 86 continues to read as follows:

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

0
22. Section 86.1 is amended by adding paragraph (c)(2), revising
paragraph (g)(4), and removing and reserving paragraph (g)(5).
    The addition and revision read as follows:

Sec.  86.1  Incorporation by reference.

* * * * *
    (c) * * *
    (2) CSA IR-1-15, Compressed Natural Gas Vehicle (NGV) High Flow
Fueling Connection Devices--Supplement to NGV 1-2006, ANSI approved
August 26, 2015, IBR approved for Sec.  86.1813-17(f),
* * * * *
    (g) * * *
    (4) SAE J1877, Recommended Practice for Bar-Coded Vehicle
Identification Number Label, July 1994, IBR approved for Sec.  86.1807-
01(f).
    (5) [Reserved]
* * * * *

0
23. Revise the heading of subpart A to read as follows:

Subpart A--General Provisions for Heavy-Duty Engines and Heavy-Duty
Vehicles

Sec.  86.001-35  [Removed]

0
24. Remove Sec.  86.001-35.

0
25. Section 86.004-2 is amended by revising the definition of
``Emergency vehicle'' to read as follows:

Sec.  86.004-2  Definitions.

* * * * *
    Emergency vehicle has the meaning given in 40 CFR 1037.801.
* * * * *

0
26. Section 86.004-25 is amended as follows:
0
a. By revising the introductory text and paragraph (b)(3)(iii)(A).
0
b. By removing paragraph (b)(3)(vi).
0
c. By revising paragraphs (b)(4)(i), (b)(4)(iii)(D), (b)(4)(iii)(F),
and (b)(6)(i)(E).
0
d. By adding paragraph (i).
    The addition and revisions read as follows:

Sec.  86.004-25  Maintenance.

    Section 86.004-25 includes text that specifies requirements that
differ from Sec.  86.094-25. Where a paragraph in Sec.  86.094-25 is
applicable to Sec.  86.004-25, this may be indicated by specifying the
corresponding paragraph and the statement ``[Reserved]. For guidance
see Sec.  86.094-25.''.
* * * * *
    (b) * * *
    (3) * * *
    (iii) * * *
    (A) Crankcase ventilation valves and filters.
* * * * *
    (4) * * *
    (i) For diesel-cycle heavy-duty engines, the adjustment, cleaning,
repair, or replacement of the following items shall occur at 50,000
miles (or 1,500 hours) of use and at 50,000-mile (or 1,500-hour)
intervals thereafter:
    (A) Exhaust gas recirculation system related filters and coolers.
    (B) Crankcase ventilation valves and filters.
    (C) Fuel injector tips (cleaning only).
    (D) DEF filters.
* * * * *
    (iii) * * *
    (D) Particulate trap or trap oxidizer systems including related
components (adjustment and cleaning only for filter element,
replacement of the filter element is not allowed during the useful
life).
* * * * *
    (F) Catalytic converter (adjustment and cleaning only for catalyst
beds,

replacement of the bed is not allowed during the useful life).
* * * * *
    (6)(i) * * *
    (E) Crankcase ventilation valves and filters.
* * * * *
    (i) Notwithstanding the provisions of paragraph (b)(4) and (6) of
this section, manufacturers may schedule replacement or repair of
particulate trap (or trap oxidizer) systems or catalytic converters
(including NOX adsorbers), provided that the manufacturer
demonstrates to the Administrator's satisfaction that the repair or
replacement will be performed according to the schedule and the
manufacturer pays for the repair or replacement.

0
27. Section 86.004-28 is amended by revising paragraph (i) introductory
text and adding paragraph (j) to read as follows:

Sec.  86.004-28  Compliance with emission standards.

* * * * *
    (i) This paragraph (i) describes how to adjust emission results
from model year 2020 and earlier heavy-duty engines equipped with
exhaust aftertreatment to account for regeneration events. This
provision only applies for engines equipped with emission controls that
are regenerated on an infrequent basis. For the purpose of this
paragraph (i), the term ``regeneration'' means an event during which
emission levels change while the aftertreatment performance is being
restored by design. Examples of regenerations are increasing exhaust
gas temperature to remove sulfur from an adsorber or increasing exhaust
gas temperature to oxidize PM in a trap. For the purpose of this
paragraph (i), the term ``infrequent'' means having an expected
frequency of less than once per transient test cycle. Calculation and
use of adjustment factors are described in paragraphs (i)(1) through
(5) of this section. If your engine family includes engines with one or
more AECDs for emergency vehicle applications approved under paragraph
(4) of the definition of defeat device in Sec.  86.004-2, do not
consider additional regenerations resulting from those AECDs when
calculating emission factors or frequencies under this paragraph (i).
* * * * *
    (j) For model year 2021 and later engines using aftertreatment
technology with infrequent regeneration events that may occur during
testing, take one of the following approaches to account for the
emission impact of regeneration:
    (1) You may use the calculation methodology described in 40 CFR
1065.680 to adjust measured emission results. Do this by developing an
upward adjustment factor and a downward adjustment factor for each
pollutant based on measured emission data and observed regeneration
frequency as follows:
    (i) Adjustment factors should generally apply to an entire engine
family, but you may develop separate adjustment factors for different
configurations within an engine family. Use the adjustment factors from
this section for all testing for the engine family.
    (ii) You may use carryover or carry-across data to establish
adjustment factors for an engine family as described in Sec.  86.001-
24(f), consistent with good engineering judgment.
    (iii) Identify the value of F in each application for the
certification for which it applies.
    (2) You may ask us to approve an alternate methodology to account
for regeneration events. We will generally limit approval to cases
where your engines use aftertreatment technology with extremely
infrequent regeneration and you are unable to apply the provisions of
this section.
    (3) You may choose to make no adjustments to measured emission
results if you determine that regeneration does not significantly
affect emission levels for an engine family (or configuration) or if it
is not practical to identify when regeneration occurs. If you choose
not to make adjustments under paragraph (j)(1) or (2) of this section,
your engines must meet emission standards for all testing, without
regard to regeneration.

Sec.  86.004-30  [Removed]

0
28. Remove Sec.  86.004-30.

0
29. Section 86.007-11 is amended by
0
a. Revising the introductory text and paragraphs (a)(1)(ii) and (iii),
(2)(ii), and (g).
0
b. Adding and reserving paragraph (i).
0
c. Adding paragraph (j).
    The revisions and addition read as follows:

Sec.  86.007-11  Emission standards and supplemental requirements for
2007 and later model year diesel heavy-duty engines and vehicles.

    This section applies to new 2007 and later model year diesel heavy-
duty engines and vehicles. Starting in model year 2021, this section
also applies to all heavy HDE, regardless of fuel or combustion cycle
(see 40 CFR 1036.140(a) and 1036.150(c)). Section 86.007-11 includes
text that specifies requirements that differ from Sec.  86.004-11.
Where a paragraph in Sec.  86.004-11 is identical and applicable to
Sec.  86.007-11, this may be indicated by specifying the corresponding
paragraph and the statement ``[Reserved]. For guidance see Sec.
86.004-11.''
    (a)(1) * * *
    (ii)(A) Nonmethane hydrocarbon (NMHC) for engines fueled with
diesel fuel. 0.14 grams per brake horsepower-hour (0.052 grams per
megajoule).
    (B) Nonmethane-nonethane hydrocarbon (NMNEHC) for engines fueled
with natural gas or liquefied petroleum gas. 0.14 grams per brake
horsepower-hour (0.052 grams per megajoule).
    (C) Nonmethane hydrocarbon equivalent (NMHCE) for engines fueled
with methanol. 0.14 grams per brake horsepower-hour (0.052 grams per
megajoule).
    (iii) Carbon monoxide. 15.5 grams per brake horsepower-hour (5.77
grams per megajoule).
* * * * *
    (2) * * *
    (ii) Shut down the engine after completing the test interval and
allow 201 minutes to elapse. This is the hot soak.
* * * * *
    (g) Model year 2018 and later engines at or above 56 kW that will
be installed in specialty vehicles as allowed by 40 CFR 1037.605 may
meet alternate emission standards as follows:
    (1) The engines must be of a configuration that is identical to one
that is certified under 40 CFR part 1039, and meet the following
additional standards using the same duty cycles that apply under 40 CFR
part 1039:
    (i) The engines must be certified with a Family Emission Limit for
PM of 0.020 g/kW-hr.
    (ii) Diesel-fueled engines using selective catalytic reduction must
meet an emission standard of 0.1 g/kW-hr for N2O.
    (2) Except as specified in this paragraph (g), engines certified
under this paragraph (g) must meet all the requirements that apply
under 40 CFR part 1039 instead of the comparable provisions in this
subpart A. Before shipping engines under this section, you must have
written assurance from the vehicle manufacturers that they need a
certain number of exempted engines under this section. In your annual
production report under 40 CFR 1039.250, count these engines separately
and identify the vehicle manufacturers that will be installing them.
Treat these engines as part of the corresponding engine family under 40

CFR part 1039 for compliance purposes such as selective enforcement
audits, in-use testing, defect reporting, and recall.
    (3) The engines must be labeled as described in Sec.  86.095-35,
with the following statement instead of the one specified in Sec.
86.095-35(a)(3)(iii)(H): ``This engine conforms to alternate standards
for specialty vehicles under 40 CFR 86.007-11(g)''. Engines certified
under this paragraph (g) may not have the label specified for nonroad
engines in 40 CFR part 1039 or any other label identifying them as
nonroad engines.
    (4) In a separate application for a certificate of conformity,
identify the corresponding nonroad engine family, describe the label
required under this paragraph (g), state that you meet applicable
diagnostic requirements under 40 CFR part 1039, and identify your
projected U.S.-directed production volume.
    (5) No additional certification fee applies for engines certified
under this paragraph (g).
    (6) Engines certified under this paragraph (g) may not generate or
use emission credits under this part or under 40 CFR part 1039. The
vehicles in which these engines are installed may generate or use
emission credits as described in 40 CFR part 1037.
    (7) Engines may instead meet standards for heavy-duty highway
engines in California, as demonstrated by an Executive Order issued by
the California Air Resources Board.
* * * * *
    (i) [Reserved]
    (j) Engines installed in new glider vehicles are subject to the
standards of this section as specified in 40 CFR part 1037.

Sec.  86.007-25  [Removed]

0
30. Remove Sec.  86.007-25.

Sec.  86.007-30  [Amended]

0
31. Section 86.007-30 is amended by removing and reserving paragraph
(d).

Sec.  86.007-35  [Removed]

0
32. Remove Sec.  86.007-35.

0
33. Section 86.008-10 is amended by:
0
a. Adding introductory text.
0
b. Revising paragraphs (a)(1)(ii) and (iii);
0
c. Removing and reserving paragraph (f); and
0
d. Revising paragraph (g).
    The revisions read as follows:

Sec.  86.008-10  Emission standards for 2008 and later model year Otto-
cycle heavy-duty engines and vehicles.

    This section applies to new 2008 and later model year Otto-cycle
heavy-duty engines and vehicles. Starting in model year 2021, this
section applies to light HDE and medium HDE, but it no longer applies
to heavy HDE (see 40 CFR 1036.140(a) and 1036.150(c)).
    (a)(1) * * *
    (ii)(A) Nonmethane hydrocarbon (NMHC) for engines fueled with
gasoline. 0.14 grams per brake horsepower-hour (0.052 grams per
megajoule).
    (B) Nonmethane-nonethane hydrocarbon (NMNEHC) for engines fueled
with natural gas or liquefied petroleum gas. 0.14 grams per brake
horsepower-hour (0.052 grams per megajoule).
    (C) Nonmethane hydrocarbon equivalent (NMHCE) for engines fueled
with methanol. 0.14 grams per brake horsepower-hour (0.052 grams per
megajoule).
    (D) A manufacturer may elect to include any or all of its Otto-
cycle HDE families in any or all of the hydrocarbon emission ABT
programs for HDEs, within the restrictions described in Sec.  86.007-15
or Sec.  86.004-15. If the manufacturer elects to include engine
families in any of these programs, the hydrocarbon FEL may not exceed
0.30 grams per brake horsepower-hour. This ceiling value applies
whether credits for the family are derived from averaging, banking, or
trading programs. The hydrocarbon FEL cap is 0.40 for model years
before 2011 for manufacturers choosing to certify to the 1.5 g/bhp-hr
NOX + HC in 2004, as allowed in Sec.  86.005-10.
    (iii) Carbon monoxide. 14.4 grams per brake horsepower-hour (5.36
grams per megajoule).
* * * * *
    (f) [Reserved]
    (g) Model year 2018 and later engines that will be installed in
specialty vehicles as allowed by 40 CFR 1037.605 may meet alternate
emission standards as follows:
    (1) The engines must be of a configuration that is identical to one
that is certified under 40 CFR part 1048 to the Blue Sky standards
under 40 CFR 1048.140.
    (2) Except as specified in this paragraph (g), engines certified
under this paragraph (g) must meet all the requirements that apply
under 40 CFR part 1048 instead of the comparable provisions in this
subpart A. Before shipping engines under this section, you must have
written assurance from the vehicle manufacturers that they need a
certain number of exempted engines under this section. In your annual
production report under 40 CFR 1048.250, count these engines separately
and identify the vehicle manufacturers that will be installing them.
Treat these engines as part of the corresponding engine family under 40
CFR part 1048 for compliance purposes such as testing production
engines, in-use testing, defect reporting, and recall.
    (3) The engines must be labeled as described in Sec.  86.095-35,
with the following statement instead of the one specified in Sec.
86.095-35(a)(3)(iii)(H): ``This engine conforms to alternate standards
for specialty vehicles under 40 CFR 86.008-10(g)''. Engines certified
under this paragraph (g) may not have the label specified for nonroad
engines in 40 CFR part 1048 or any other label identifying them as
nonroad engines.
    (4) In a separate application for a certificate of conformity,
identify the corresponding nonroad engine family, describe the label
required under this paragraph (g), state that you meet applicable
diagnostic requirements under 40 CFR part 1048, and identify your
projected U.S.-directed production volume.
    (5) No additional certification fee applies for engines certified
under this paragraph (g).
    (6) Engines certified under this paragraph (g) may not generate or
use emission credits under this part. The vehicles in which these
engines are installed may generate or use emission credits as described
in 40 CFR part 1037.
    (7) Engines may instead meet standards for heavy-duty highway
engines in California, as demonstrated by an Executive Order issued by
the California Air Resources Board.

0
34. Section 86.016-1 is amended by revising paragraphs (a)(1) and (2)
to read as follows:

Sec.  86.016-1   General applicability.

    (a) * * *
    (1) The provisions of this subpart related to exhaust emission
standards apply for diesel-cycle and Otto-cycle heavy-duty engines
installed in vehicles above 14,000 pounds GVWR; however, these vehicles
may instead be certified under subpart S of this part in certain
circumstances as specified in Sec.  86.1801.
    (2) The provisions of this subpart related to exhaust emission
standards apply for engines that will be installed in incomplete heavy-
duty vehicles at or below 14,000 pounds GVWR; however, these vehicles
may instead be certified under subpart S of this part as specified in
Sec.  86.1801.
* * * * *

0
35. Section 86.078-6 is revised to read as follows:

Sec.  86.078-6  Hearings on certification.

    If a manufacturer's request for a hearing is approved, EPA will
follow the hearing procedures specified in 40 CFR part 1068, subpart G.

0
36. Section 86.084-4 is revised to read as follows:

Sec.  86.084-4  Section numbering; construction.

    (a) The model year of initial applicability is indicated by the
last two digits of the 5-digit group. A section remains in effect for
subsequent model years until it is superseded. The number following the
hyphen designates what previous section is replaced by a future
regulation. For example, Sec.  86.005-1 applies to model year 2005 and
later vehicles and engines until it is superseded. Section 86.016-1
takes effect with model year 2016 and continues to apply until it is
superseded; Sec.  86.005-1 no longer applies starting with model year
2016, except as specified by Sec.  86.016-1.
    (b) If a regulation in this subpart references a section that has
been superseded or no longer exists, this should be understood as a
reference to the same section for the appropriate model year. For
example, if a regulation in this subpart refers to Sec.  86.001-30, it
should be taken as a reference to Sec.  86.007-30 or any later version
of that section that applies for the appropriate model year. However,
this does not apply if the reference to a superseded section
specifically states that the older provision applies instead of any
updated provisions from the section in effect for the current model
year; this occurs most often as part of the transition to new emission
standards.
    (c) Except where indicated, the language in this subpart applies to
both vehicles and engines. In many instances, language referring to
engines is enclosed in parentheses and immediately follows the language
discussing vehicles.

Sec.  86.085-37  [Amended]

0
37. Section 86.085-37 is amended by removing paragraph (d).

0
38. Section 86.094-14 is revised to read as follows:

Sec.  86.094-14   Small-volume manufacturer certification procedures.

    (a)(1) The small-volume manufacturer certification procedures
described in paragraphs (b) and (c) of this section are optional.
Small-volume manufacturers may use these optional procedures to
demonstrate compliance with the general standards and specific emission
requirements contained in this subpart.
    (2) To satisfy the durability data requirements of the small-volume
manufacturer certification procedures, manufacturers of vehicles (or
engines) as described in paragraph (b) of this section may use assigned
deterioration factors that the Administrator determines by methods
described in paragraph (c)(3)(ii) of this section. However, if no
deterioration factor data (either the manufacturer's or industry-wide
deterioration factor data) are available from previously completed
durability data vehicles or engines used for certification,
manufacturers of vehicles (or engines) as described in paragraph (b) of
this section or with new technology not previously certified may use
assigned deterioration factors that the Administrator determines by
alternative methods, based on good engineering judgment. The factors
that the Administrator determines by alternative methods will be
published in an advisory letter or advisory circular.
    (b)(1) The optional small-volume manufacturer certification
procedures apply to heavy-duty vehicles, and heavy-duty engines
produced by manufacturers with U.S. sales, including all vehicles and
engines imported under the provisions of Sec. Sec.  85.1505 and 85.1509
of this chapter (for the model year in which certification is sought)
of fewer than 10,000 units (Light-Duty Vehicles, Light-Duty Trucks,
Heavy-Duty Vehicles and Heavy-Duty Engines combined).
    (2) For the purpose of determining the applicability of paragraph
(b)(1) of this section, the sales the Administrator shall use shall be
the aggregate of the projected or actual sales of those vehicles and/or
engines in any of these groupings:
    (i) Vehicles and/or engines produced by two or more firms, one of
which is 10 percent or greater part owned by another;
    (ii) Vehicles and/or engines produced by any two or more firms if a
third party has equity ownership of 10 percent or more in each of the
firms;
    (iii) Vehicles and/or engines produced by two or more firms having
a common corporate officer(s) who is (are) responsible for the overall
direction of the companies;
    (iv) Vehicles and/or engines imported or distributed by all firms
where the vehicles and/or engines are manufactured by the same entity
and the importer or distributor is an authorized agent of the entity.
    (3) If the aggregated sales, as determined in paragraph (b)(2) of
this section are less than 301 units, the manufacturers in the
aggregated relationship may certify under the provisions in this
section that apply to manufacturers with sales of less than 301 units.
    (4) If the aggregated sales, as determined in paragraph (b)(2) of
this section are greater than 300 but fewer than 10,000 units, the
manufacturers in the aggregated relationship may certify under the
provisions in this section that apply to manufacturers with sales from
and including 301 through 9,999 motor vehicles and motor vehicles
engines per year.
    (5) If the aggregated sales, as determined in paragraph (b)(2) of
this section are equal to or greater than 10,000 units, then the
manufacturers involved in the aggregated relationship will be allowed
to certify a number of units under the small-volume engine family
certification procedures (reference Sec.  86.001-24(e)) in accordance
with the following criteria:
    (i) If a manufacturer purchases less than 50 percent of another
manufacturer, each manufacturer retains its right to certify 9,999
units using the small-volume engine family certification procedures.
    (ii) If a manufacturer purchases 50 percent or more of another
manufacturer, the manufacturer with the over 50 percent interest must
share, with the manufacturer it purchased, its 9,999 units under the
small-volume engine family certification procedures.
    (iii) In a joint venture arrangement (50/50 ownership) between two
manufacturers, each manufacturer retains its eligibility for 9,999
units under the small-volume engine family certification procedures,
but the joint venture must draw its maximum 9,999 units from the units
allocated to its parent manufacturers.
    (c) All the provisions of this subpart apply to small-volume
manufacturers, except as described in this paragraph (c). The
appropriate model year of specific sections shall be determined in
accordance with Sec.  86.084-4.
    (1) Section 86.080-12 is not applicable.
    (2) Small-volume manufacturers shall include in their records all
the information that EPA requires in Sec.  86.007-21. This information
will be considered part of the manufacturer's application for
certification. However, the manufacturer is not required to submit the
information to the Administrator unless the Administrator requests it.
    (3) Small-volume manufacturers may satisfy the requirements of
Sec.  86.001-24(b) and (c) as follows:
    (i) Emission data. Small-volume manufacturers may select one
emission data test vehicle (engine) per engine

family by the worst-case emissions criteria as follows:
    (A) Heavy-duty Otto-cycle engines. The manufacturer shall select
one emission data engine first based on the largest displacement within
the engine family. Then within the largest displacement the
manufacturer shall select, in the order listed, highest fuel flow at
the speed of maximum rated torque, the engine with the most advanced
spark timing, no EGR or lowest EGR flow, and no air pump or lowest
actual flow air pump.
    (B) Heavy-duty diesel engines. The manufacturer shall select one
emission data engine based on the highest fuel feed per stroke,
primarily at the speed of maximum rated torque and secondarily at rated
speed.
    (ii) Durability data. Small-volume manufacturers may satisfy the
durability data requirements with the following procedures:
    (A) Manufacturers with aggregated sales of less than 301 motor
vehicles and motor vehicle engines per year may use assigned
deterioration factors that the Administrator determines and prescribes.
The factors will be the Administrator's estimate, periodically updated
and published in an advisory letter or advisory circular, of the 70th
percentile deterioration factors calculated using the industry-wide
data base of previously completed durability data vehicles or engines
used for certification. However, the manufacturer may, at its option,
accumulate miles (hours) on a durability data vehicle (engine) and
complete emission tests for the purpose of establishing its own
deterioration factors.
    (B)(1) Manufacturers with aggregated sales from and including 301
through 9,999 motor vehicles and motor vehicle engines per year
certifying light-duty vehicle exhaust emissions from vehicles equipped
with proven emission control systems shall use assigned deterioration
factors that the manufacturer determines based on its good engineering
judgment. However, the manufacturer may not use deterioration factors
less than either the average or 70th percentile of all of that
manufacturer's deterioration factor data, whichever is less. These
minimum deterioration factors shall be calculated according to
procedures in paragraph (c)(3)(ii)(B)(2), of this section. If the
manufacturer does not have at least two data points to calculate these
manufacturer specific average deterioration factors, then the
deterioration factors shall be no less than the EPA supplied industry-
wide deterioration factors. However, the manufacturer may, at its
option, accumulate miles on a durability data vehicle and complete
emission tests for the purpose of establishing its own deterioration
factors.
    (2) The manufacturer's minimum deterioration factors shall be
calculated using the deterioration factors from all engine families,
within the same vehicle/engine-fuel usage category (e.g., gasoline-
fueled light-duty vehicle, etc.) previously certified to the same
emission standards. The manufacturer shall use only deterioration
factors from engine families previously certified by the manufacturer
and the deterioration factors shall not be included in the calculation
more than once. The deterioration factors for each pollutant shall be
calculated separately. The manufacturer may, at its option, limit the
deterioration factors used in the calculation of the manufacturer's
minimum deterioration factors to those from all similar systems to the
system being certified if sufficient data (i.e., from at least two
certified systems) exists. All data eligible to be grouped as similar
system data shall be used in calculating similar system deterioration
factors. Any deterioration factors used in calculating similar system
deterioration factors shall not be included in calculating the
manufacturer's minimum deterioration factors used to certify any of the
manufacturer's remaining vehicle systems.
    (C) Manufacturers with aggregated sales from 301 through 9,999
motor vehicles and motor vehicle engines and certifying light-duty
vehicle exhaust emissions from vehicles equipped with unproven emission
control systems shall use deterioration factors that the manufacturer
determines from official certification durability data generated by
vehicles from engine families representing a minimum of 25 percent of
the manufacturer's sales equipped with unproven emission control
systems. The sales projections are to be based on total sales projected
for each engine/system combination. The durability programs applicable
to such manufacturers for this purpose shall be the Standard AMA, the
Production AMA and the Alternative Service Accumulation Durability
Programs of Sec.  86.094-13. The durability data vehicle (engine)
mileage accumulation and emission tests are to be conducted in
accordance with Sec.  86.094-13. The manufacturer must develop
deterioration factors by generating durability data in accordance with
Sec.  86.094-13 on a minimum of 25 percent of the manufacturer's
projected sales (by engine/system combination) that is equipped with
unproven emission control systems. The manufacturer must complete the
25 percent durability requirement before the remainder of the
manufacturer's sales equipped with unproven emission control systems is
certified using manufacturer-determined assigned deterioration factors.
Alternatively, any of these manufacturers may, at their option,
accumulate miles on durability data vehicles and complete emission
tests for the purpose of establishing their own deterioration factors
on the remaining sales.
    (4) Section 86.001-24(d) and (e) are not applicable.
    (5) Small-volume manufacturers shall comply with the following
provisions instead of Sec.  86.007-30(a)(2) and (b):
    (i) Small-volume manufacturers shall submit an application for
certification containing the following elements:
    (A) The names, addresses, and telephone numbers of the persons the
manufacturer authorizes to communicate with us.
    (B) A brief description of the vehicles (or engines) covered by the
certificate (the manufacturers' sales data book or advertising,
including specifications, may satisfy this requirement for most
manufacturers). The description shall include, as a minimum, the
following items:
    (1) Engine evaporative/refueling family names and vehicle (or
engine) configurations.
    (2) Vehicle carlines or engine models to be listed on the
certificate of conformity.
    (3) The test weight and horsepower setting for each vehicle or
engine configuration.
    (4) Projected sales.
    (5) Combustion cycle.
    (6) Cooling mechanism.
    (7) Number of cylinders.
    (8) Displacement.
    (9) Fuel system type.
    (10) Number of catalytic converters, type, volume, composition,
surface area, and total precious metal loading.
    (11) Method of air aspiration.
    (12) Thermal reactor characteristics.
    (13) Suppliers' and/or manufacturers' name and model number of any
emission related items of the above, if purchased from a supplier who
uses the items in its own certified vehicle(s) or engine(s).
    (14) A list of emission component part numbers.
    (15) Drawings, calibration curves, and descriptions of emission
related components, including those components regulated under Sec.
86.001-22(e), and schematics of hoses and other devices connecting
these components.
    (16)-(17) [Reserved]
    (18) Proof that the manufacturer has obtained or entered an
agreement to

purchase, when applicable, the insurance policy required by the Sec.
85.1510(b) of this chapter. The manufacturer may submit a copy of the
insurance policy or purchase agreement as proof that the manufacturer
has obtained or entered an agreement to purchase the insurance policy.
    (19) For each evaporative/refueling emission family, a description
of any unique procedures required to perform evaporative and/or
refueling emission tests (as applicable) (including canister working
capacity, canister bed volume, and fuel temperature profile for the
running loss test) for all vehicles in that evaporative/refueling
emission family, and a description of the method used to develop those
unique procedures.
    (20) For each evaporative/refueling emission family:
    (i) Canister working capacity, according to the procedures
specified in Sec.  86.132-96(h)(1)(iv);
    (ii) Canister bed volume; and
    (iii) Fuel temperature profile for the running loss test, according
to the procedures specified in Sec.  86.129-94(d).
    (C) The results of all emission tests the manufacturer performs to
demonstrate compliance with the applicable standards.
    (D)(1) The following statement signed by the authorized
representative of the manufacturer: ``The vehicles (or engines)
described herein have been tested in accordance with (list of the
applicable subparts A, B, I, N, or P) of part 86, title 40, Code of
Federal Regulations, and on the basis of those tests are in conformance
with that subpart. All the data and records required by that subpart
are on file and are available for inspection by the EPA Administrator.
We project the total U.S. sales of vehicles (engines) subject to this
subpart (including all vehicles and engines imported under the
provisions of 40 CFR 85.1505 and 40 CFR 85.1509) to be fewer than
10,000 units.''
    (2) [Reserved]
    (3) A statement that the vehicles or engines described in the
manufacturer's application for certification are not equipped with
auxiliary emission control devices which can be classified as a defeat
device as defined in Sec.  86.004-2.
    (4) A statement of compliance with section 206(a)(3) of the Clean
Air Act (42 U.S.C. 7525(a)(3)).
    (5)-(6) [Reserved]
    (7) A statement affirming that the manufacturer will provide a list
of emission and emission-related service parts, including part number
designations and sources of parts, to the vehicle purchaser for all
emission and emission-related parts which might affect vehicle emission
performance throughout the useful life of the vehicle. Secondly, it
must state that qualified service facilities and emission-related
repair parts will be conveniently available to serve its vehicles. In
addition, if service facilities are not available at the point of sale
or distribution, the manufacturer must indicate that the vehicle
purchaser will be provided information identifying the closest
authorized service facility to the point of sale, if in the United
States, or the closest authorized service facility to the point of
distribution to the ultimate purchaser if the vehicle was purchased
outside of the United States by the ultimate purchaser. Such
information should also be made available to the Administrator upon
request.
    (E) Manufacturers utilizing deterioration factors determined by the
manufacturer based on its good engineering judgment (reference
paragraph (c)(3)(ii)(B) of this section) shall provide a description of
the method(s) used by the manufacturer to determine the deterioration
factors.
    (ii) If the manufacturer meets the requirements of this subpart,
the Administrator will issue a certificate of conformity for the
vehicles or engines described in the application for certification.
    (iii) The certificate will be issued for such a period not to
exceed one model year as the Administrator may determine and upon such
terms as he may deem necessary to assure that any vehicle or engine
covered by the certificate will meet the requirements of the Act and of
this subpart.
    (iv) If, after a review of the statements and descriptions
submitted by the manufacturer, the Administrator determines that the
manufacturer has not met the applicable requirements, the Administrator
shall notify the manufacturer in writing of his intention to deny
certification, setting forth the basis for his determination. The
manufacturer may request a hearing on the Administrator's
determination. If the manufacturer does not request a hearing or
present the required information, the Administrator will deny
certification.
    (6) Sections 86.079-31 and 86.079-32 are not applicable.
    (7) The following provisions apply for small-volume manufacturers
instead of the provisions specified in Sec.  86.079-33:
    (i) Small-volume manufacturers may make production changes (running