with fuel tanks alone. If this involves SHED-based measurements, all
elements of the emission-control system must remain in place for fully
assembled engines and equipment.
    (2) Engine and equipment manufacturers may generate or use emission
credits to show compliance with the requirements of this section under
the averaging program as described in 40 CFR part 1054, subpart H.
    (3) The emission standards in this section apply over a useful life
of two years.
    (4) Equipment must be labeled in a permanent and legible manner
with one of the following approaches:
    (i) By meeting the labeling requirements that apply for equipment
in California.
    (ii) By identifying the certificate holder's corporate name or
trademark, or the fuel tank manufacturer's corporate name or trademark.
Also identify the family number identifying compliance with California
standards or state: ``THIS FUEL TANK COMPLIES WITH U.S. EPA
STANDARDS.'' This label may be applied to the fuel tank or it may be
combined with the emission control information label required in Sec.
90.114. If the label information is not on the fuel tank, the label
must include a part identification number that is also permanently
applied to the fuel tank.
    (5) The requirements of this section do not apply to engines or
equipment with structurally integrated nylon fuel tanks (as defined in
40 CFR 1054.801).
    (b) Certification requirements. To certify that you meet the
standards of this section, you must have emission data from your
testing or from the fuel tank manufacturer using the appropriate
procedures that demonstrate

compliance with the standard. You may satisfy this requirement by
presenting an approved Executive Order from the California Air
Resources Board showing that the fuel tanks meet the applicable
standards in California.
    (c) Prohibitions. Introducing equipment into U.S. commerce without
meeting all the requirements of this section violates Sec.
90.1003(a)(1).

Subpart C--[Amended]

    30. Section 90.201 is revised to read as follows:

Sec.  90.201  Applicability.

    (a) The requirements of this subpart C are applicable to all Phase
2 spark-ignition engines subject to the provisions of subpart A of this
part except as provided in Sec.  90.103(a). These provisions are not
applicable to any Phase 1 engines. Participation in the averaging,
banking and trading program is voluntary, but if a manufacturer elects
to participate, it must do so in compliance with the regulations set
forth in this subpart. The provisions of this subpart are applicable
for HC+NOX (NMHC+NOX) emissions but not for CO
emissions.
    (b) See 40 CFR 1054.740 for special provisions for using emission
credits generated under this part 90 from Phase 2 engines to
demonstrate compliance with engines certified under 40 CFR part 1054.
    31. Section 90.210 is amended by adding paragraph (i) to read as
follows:

Sec.  90.210  End-of-year and final reports.

* * * * *
    (i) For 2007 and later model years, include in your end-of-year and
final reports an accounting to show a separate balance of emission
credits for handheld and nonhandheld engines. Use your best judgment to
differentiate your current balance of banked credits for handheld and
nonhandheld engines. You may exchange handheld and nonhandheld credits
to demonstrate compliance with the requirements of this part 90.
However, emission credits you generate for banking under this part 90
will be restricted for engines subject to the requirements of 40 CFR
part 1054.

Subpart G--[Amended]

    32. Section 90.601 is amended by adding paragraph (c) to read as
follows:

Sec.  90.601  Applicability.

* * * * *
    (c) Importers must complete the appropriate EPA declaration form
before importing an engine. These forms are available on the Internet
at http://www.epa.gov/OTAQ/imports/ or by phone at<PHONE_NUMBER>.

Importers must keep the forms for five years and make them available
promptly upon request.
    33. A new Sec.  90.616 is added to subpart G to read as follows:

Sec.  90.616  Model year restrictions related to imported engines and
equipment.

    The provisions of 40 CFR 1054.695 apply starting January 1, 2009.
These provisions limit the importation of engines or equipment after
new emission standards have started to apply where the engines or
equipment were built before the emission standards took effect.

Subpart J--[Amended]

    34. Section 90.910 is amended by adding paragraph (c) to read as
follows:

Sec.  90.910  Granting of exemptions.

* * * * *
    (c) Manufacturers may ask EPA to apply the provisions of 40 CFR
1068.201(i) to engines exempted or excluded under this subpart.

Subpart K--[Amended]

    35. Section 90.1003 is amended by revising paragraph (b)(3) to read
as follows:

Sec.  90.1003  Prohibited acts.

* * * * *
    (b) * * *
    (3) The following provisions apply for converting nonroad engine to
use alternative fuels:
    (i) Until December 31, 2009, converting an engine to use a clean
alternative fuel (as defined in Title II of the Act) is not considered
a prohibited act under Sec.  90.1003(a) if the vehicle or equipment
complies with the applicable standard when operating on the alternative
fuel, and the device or element is replaced upon completion of the
conversion procedure. Also, in the case of engines converted to dual
fuel or flexible use, the action must result in the proper functioning
of the device or element when the nonroad engine operates on
conventional fuel.
    (ii) The provisions of 40 CFR 1054.635 apply starting January 1,
2010.
* * * * *
    36. A new Sec.  90.1007 is added to subpart K to read as follows:

Sec.  90.1007  Bonding requirements related to recall and compliance
assurance.

    The provisions of 40 CFR 1054. 685 and 1054.690 apply starting with
the 2009 model year. These provisions include measures to ensure that
certifying manufacturers are able to cover any potential compliance,
enforcement, or recall actions under the Clean Air Act.

Subpart L--[Amended]

    37. Section 90.1103 is amended by adding paragraph (e) to read as
follows:

Sec.  90.1103  Emission warranty, warranty period.

* * * * *
    (e) Starting with the 2009 model year, you must meet the conditions
specified in 40 CFR 1054.120(f) to ensure that owners will be able to
promptly obtain warranty repairs. Describe in your application for
certification how you will meet these conditions.

PART 91-- CONTROL OF EMISSIONS FROM MARINE SPARK-IGNITION ENGINES

    38. The authority citation for part 91 continues to read as
follows:

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

Subpart A--[Amended]

    39. Section 91.1 is amended by adding paragraph (d) to read as
follows:

Sec.  91.1  Applicability.

* * * * *
    (d) This part does not apply to engines that are subject to
emission standards under 40 CFR part 1045. See 40 CFR 1045.1 to
determine when that part 1045 applies. Note that certain requirements
and prohibitions apply to engines built on or after January 1, 2009 if
they are installed in equipment that will be used solely for
competition, as described in 40 CFR 1045.1 and 40 CFR 1068.1; those
provisions apply instead of the provisions of this part 91.

Subpart B--[Amended]

    40. Section 91.101 is revised to read as follows:

Sec.  91.101  Applicability.

    (a) The requirements of this subpart B are applicable to all
engines subject to the provisions of subpart A of this part.
    (b) In a given model year, you may ask us to approve the use of
procedures for certification, labeling, reporting, and recordkeeping
specified in 40 CFR part 1045 or 1068 instead of the comparable
procedures specified in this part 91. We may approve the request as
long as it does not prevent us from ensuring that you fully comply with
the intent of this part.
    41. Section 91.107 is amended by adding paragraph (d)(12) to read
as follows:

Sec.  91.107  Application for certification.

* * * * *

    (d) * * *
    (12) Identification of an agent for service located in the United
States. Service on this agent constitutes service on you or any of your
officers or employees for any action by EPA or otherwise by the United
States related to the requirements of this part.
* * * * *
    42. Section 91.119 is amended by adding paragraph (b)(3) to read as
follows:

Sec.  91.119  Certification procedure--use of special test procedures.

* * * * *
    (b) * * *
    (3) A manufacturer may elect to use the test procedures in 40 CFR
part 1065 as an alternate test procedure without getting advance
approval by the Administrator or meeting the other conditions of
paragraph (b)(1) of this section. The manufacturer must identify in its
application for certification that the engines were tested using the
procedures in 40 CFR part 1065. For any EPA testing with engines
subject to standards under this part, EPA will use the manufacturer's
selected procedures for mapping engines, generating duty cycles, and
applying cycle-validation criteria. For any other parameters, EPA may
conduct testing using either of the specified procedures.
* * * * *

Subpart K--[Amended]

    43. Section 91.1010 is amended by adding paragraph (c) to read as
follows:

Sec.  91.1010  Granting of exemptions.

* * * * *
    (c) Manufacturers may ask EPA to apply the provisions of 40 CFR
1068.201(i) to engines exempted or excluded under this subpart.
    44. A new Sec.  91.1013 is added to subpart K to read as follows:

Sec.  91.1013  Exemption for certified Small SI engines.

    The provisions of 40 CFR 1045.605 apply for engines subject to the
standards of this part 91. This generally allows manufacturers to use
marine engines that have been certified to emission standards for
nonroad spark-ignition engines below 19 kW without recertifying those
engines under this part 91.
    45. A new part 1027 is added to subchapter U of chapter I to read
as follows:

PART 1027--FEES FOR ENGINE, VEHICLE, AND EQUIPMENT COMPLIANCE
PROGRAMS

Sec.
1027.101 To whom do these requirements apply?
1027.105 How much are the fees?
1027.110 What special provisions apply for certification related to
motor vehicles?
1027.115 What special provisions apply for certification related to
nonroad and stationary engines?
1027.120 Can I qualify for reduced fees?
1027.125 Can I get a refund?
1027.130 How do I make a fee payment?
1027.135 What provisions apply to a deficient filing?
1027.140 What reporting and recordkeeping requirements apply under
this part?
1027.150 What definitions apply to this subpart?
1027.155 What abbreviations apply to this subpart?

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

Sec.  1027.101  To whom do these requirements apply?

    (a) This part prescribes fees manufacturers must pay for activities
related to EPA's engine, vehicle, and equipment compliance program
(EVECP). This includes activities related to approving certificates of
conformity and performing tests and taking other steps to verify
compliance with emission standards. You must pay fees as described in
this part if you are a manufacturer of any of the following products:
    (1) Motor vehicles and motor vehicle engines we regulate under 40
CFR part 86. This includes light-duty vehicles, light-duty trucks,
medium-duty passenger vehicles, highway motorcycles, and heavy-duty
highway engines and vehicles.
    (2) The following nonroad engines and equipment:
    (i) Locomotives and locomotive engines we regulate under 40 CFR
part 92 or 1033.
    (ii) Nonroad compression-ignition engines we regulate under 40 CFR
part 89 or 1039.
    (iii) Marine compression-ignition engines we regulate under 40 CFR
part 94 or 1042.
    (iv) Marine spark-ignition engines and vessels we regulate under 40
CFR part 91, 1045, or 1060. We refer to these as Marine SI engines.
    (v) Nonroad spark-ignition engines above 19 kW we regulate under 40
CFR part 1048. We refer to these as Large SI engines.
    (vi) Recreational vehicles we regulate under 40 CFR part 1051.
    (vii) Nonroad spark-ignition engines and equipment at or below 19
kW we regulate under 40 CFR part 90, 1054, or 1060. We refer to these
as Small SI engines.
    (3) The following stationary internal combustion engines:
    (i) Stationary compression-ignition engines we certify under 40 CFR
part 60, subpart IIII.
    (ii) Stationary spark-ignition engines we certify under 40 CFR part
60, subpart JJJJ.
    (b) This part applies to applications for certification that we
receive on or after [EFFECTIVE DATE FOR FINAL RULE]. Earlier
applications are subject to the provisions of 40 CFR part 85, subpart
Y, as that provision read prior to [EFFECTIVE DATE FOR FINAL RULE].
    (c) Nothing in this part limits our authority to conduct testing or
to require you to conduct testing as provided in the Act, including our
authority to require you to conduct in-use testing under section 208 of
the Act (42 U.S.C. 7542).
    (d) Paragraph (a) of this section identifies the parts of the CFR
that define emission standards and other requirements for particular
types of engines and vehicles. This part 1027 refers to each of these
other parts generically as the ``standard-setting part.'' For example,
40 CFR part 1051 is always the standard-setting part for recreational
vehicles. For some nonroad engines, we allow for certification related
to evaporative emissions separate from exhaust emissions. In this case,
40 CFR part 1060 is the standard-setting part for the equipment or fuel
system components you produce.

Sec.  1027.105  How much are the fees?

    (a) Fees are determined based on the date we receive a complete
application for certification. Each reference to a year in this subpart
refers to the calendar year, unless otherwise specified. Paragraph (b)
of this section specifies baseline fees, which applied for certificates
received in 2005. For engine and vehicles not yet subject to standards
in 2005, these values represent the fees that apply initially based on
available information to characterize what the fees would have been in
2005. See paragraph (c) of this section for provisions describing how
we calculate fees for future years.
    (b) The following baseline fees for each application for
certification:
    (1) Except as specified in paragraph (b)(2) of this section for
Independent Commercial Importers, the following fees apply for motor
vehicles and motor vehicle engines:

------------------------------------------------------------------------
             Category                 Certificate type          Fee
------------------------------------------------------------------------
(i) Light-duty vehicles and trucks  Federal.............         $33,883
(ii) Light-duty vehicles and        California-only.....          16,944
 trucks.
(iii) Medium-duty passenger         Federal.............          33,883
 vehicles.
(iv) Medium-duty passenger          California-only.....          16,944
 vehicles.
(v) Highway motorcycle............  All.................           2,414
(vi) Heavy-duty highway engine....  Federal.............          21,578
(vii) Heavy-duty highway engine...  California-only.....             826
(viii) Complete heavy-duty highway  Federal.............          33,883
 vehicles.
(ix) Complete heavy-duty highway    California-only.....          16,944
 vehicles.
(x) Heavy-duty vehicle............  Evap................             826
------------------------------------------------------------------------

    (2) A fee of $8,387 applies for Independent Commercial Importers
with respect to the following motor vehicles:
    (i) Light-duty vehicles and light-duty trucks.
    (ii) Medium-duty passenger vehicles.
    (iii) Complete heavy-duty highway vehicles.
    (3) The following fees apply for nonroad and stationary engines,
vehicles, equipment, and components:

------------------------------------------------------------------------
             Category                 Certificate type          Fee
------------------------------------------------------------------------
(i) Locomotives and locomotive      All.................            $826
 engines.
(ii) Marine compression-ignition    All, including Annex             826
 engines and stationary              VI.
 compression-ignition engines with
 per-cylinder displacement at or
 above 10 liters.
(iii) Other nonroad compression-    All.................           1,822
 ignition engines and stationary
 compression-ignition engines with
 per-cylinder displacement below
 10 liters.
(iv) Large SI engines.............  All.................             826
(v) Marine SI engines and Small SI  Exhaust only........             826
 engines.
(vi) Recreational vehicles........  Exhaust (or combined             826
                                     exhaust and evap).
(vii) Stationary spark-ignition     Exhaust (or combined             826
 engines.                            exhaust and evap).
(viii) Equipment and fuel system    Evap (where separate             241
 components associated with          certification is
 nonroad and stationary spark-       required).
 ignition engines.
------------------------------------------------------------------------

    (c) We will calculate adjusted fees for later years based on
changes in the Consumer Price Index and the number of certificates. We
will announce adjusted fees for a given year by January 31 of the
preceding year.
    (1) We will adjust the values specified in paragraph (b) of this
section for later years as follows:
    (i) Use the fee identified in Sec.  1027.105(b)(3) through 2014 for
certification related to evaporative emissions from nonroad and
stationary engines when a separate fee applies for certification to
evaporative emission standards. Use the following equation starting
with 2015:
Certificate FeeCY = [(Op + L) [middot] (CPICY-2/
CPI2006)] [middot] 1.169/[(certMY-2 +
certMY-3) [middot] 0.5]

Where:

Certificate FeeCY = Fee per certificate for a given year.
Op = operating costs are all of EPA's nonlabor costs for each
category's compliance program, including any fixed costs associated
with EPA's testing laboratory, as described in paragraph (d)(1) of
this section.
L = the labor costs, to be adjusted by the Consumer Price Index, as
described in paragraph (d)(1) of this section.
CPICY-2 = the Consumer Price Index for the month of
November two years before the applicable calendar year, as described
in paragraph (d)(2) of this section.
CPI2006 = 201.8. This is based on the October 2006 value
of the Consumer Price Index.
OH = 1.169. This is based on EPA overhead, which is applied to all
costs.
certMY-2 = the total number of certificates
issued for a fee category in the model year two years before the
calendar year for the applicable fees as described in paragraph
(d)(3) of this section.
certMY-3 = the total number of certificates
issued for a fee category in the model year three years before the
calendar year for the applicable fees as described in paragraph
(d)(3) of this section.

    (ii) Use the following equation for all other certificates for 2006
and later:
Certificate FeeCY = [Op + L [middot] (CPICY-2/
CPI2002)] [middot] 1.169/[(certMY-2 +
certMY-3) [middot] 0.5]

Where:

CPI2002 = 180.9. This is based on the December 2002 value
of the Consumer Price Index as described in paragraph (d)(2) of this
section.

    (2) The fee for any year will remain at the previous year's amount
until the value calculated in paragraph (c)(1) of this section differs
by at least $50 from the amount specified for the previous year.
    (d) Except as specified in Sec.  1027.110(a) for motor vehicles and
motor vehicle engines, we will use the following values to determine
adjusted fees using the equation in paragraph (c) of this section:
    (1) The following values apply for operating costs and labor costs:

------------------------------------------------------------------------
       Engine or vehicle category               Op               L
------------------------------------------------------------------------
(i) Light-duty, medium-duty passenger,        $3,322,039      $2,548,110
 and complete heavy-duty highway vehicle
 certification..........................
(ii) Light-duty, medium-duty passenger,        2,858,223       2,184,331
 and complete heavy-duty highway vehicle
 in-use testing.........................
(iii) Independent Commercial Importers           344,824         264,980
 identified in Sec.   1027.105(b)(2)....
(iv) Highway motorcycles................         225,726         172,829
(v) Heavy-duty highway engines..........       1,106,224       1,625,680
(vi) Nonroad compression-ignition                486,401         545,160
 engines................................
(vii) Evaporative certificates related             5,039         236,670
 to nonroad and stationary engines......
(viii) All other........................         177,425         548,081
------------------------------------------------------------------------

    (2) The applicable Consumer Price Index is based on the values
published by the Bureau of Labor Statistics for all U.S. cities using
the ``U.S. city average'' area, ``all items,'' and ``not seasonally
adjusted'' numbers (see ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
). For example, we calculated the 2006 fees using the Consumer

Price Index for November 2004, which is 191.0.
    (3) Fee categories for counting the number of certificates issued
are based on the grouping shown in paragraph (d)(1) of this section.
    (e) The following example for calculating the 2006 complete federal
heavy duty highway vehicle fee illustrates the fee adjustment:

Op = $1,106,224
L = $1,625,680
CPI2002 = 180.9
CPI2004 = 191.0
cert2004 = 131
cert2003 = 95
Fee06 = [$1,106,224 + $1,625,680 [middot] (191.0/180.9)]
[middot] 1.169/[(131+95) [middot] 0.5] = $29,200.88
Assessed Fee = $29,201

Sec.  1027.110  What special provisions apply for certification related
to motor vehicles?

    (a) We will adjust fees for 2006 and later years for light-duty,
medium-duty passenger, and complete heavy-duty highway vehicles as
follows:
    (1) California-only certificates. Calculate adjusted fees for
California-only certificates by applying the light-duty, medium-duty
passenger, and complete heavy-duty highway vehicle certification Op and
L values to the equation in Sec.  1027.105(c). The total number of
certificates issued will be the total number of California-only and
federal light-duty, medium-duty passenger, and complete heavy-duty
highway vehicle certificates issued during the appropriate model years.
    (2) Federal certificates. Calculate adjusted fees for federal
certificates with the following three steps:
    (i) Apply the light-duty, medium-duty passenger, and complete
heavy-duty highway vehicle certification Op and L values to the
equation in Sec.  1027.105(c) to determine the certification portion of
the light-duty fee. The total number of certificates issued will be the
total number of California-only and federal light-duty, medium-duty
passenger and complete heavy-duty highway vehicle certificates issued
during the appropriate model years.
    (ii) Apply the light-duty, medium-duty passenger, and complete
heavy-duty highway vehicle in-use testing Op and L values to the
equation in Sec.  1027.105(c) to determine the in-use testing portion
of the fee. The total number of certificates issued will be the total
number of federal light-duty, medium-duty passenger, and complete
heavy-duty highway vehicle certificates issued during the appropriate
model years.
    (iii) Add the certification and in-use testing portions determined
in paragraphs (a)(2)(i) and (ii) of this section to determine the total
light-duty, medium-duty passenger, and complete heavy-duty highway
vehicle fee for each federal certificate.
    (b) For light-duty vehicles, light-duty trucks, medium-duty
passenger vehicles, highway motorcycles, and complete heavy-duty
highway vehicles subject to exhaust emission standards, the number of
certificates issued as specified in Sec.  1027.105(d)(3) is based only
on engine families with respect to exhaust emissions. A separate fee
applies for each evaporative family for heavy-duty engines.
    (c) If you manufacture a heavy-duty vehicle that another company
has certified as an incomplete vehicle such that you exceed the maximum
fuel tank size specified by the original manufacturer in the applicable
certificate of conformity, you must submit a new application for
certification and certification fee for the vehicle.

Sec.  1027.115  What special provisions apply for certification related
to nonroad and stationary engines?

    (a) For nonroad spark-ignition engines above 19 kW that we regulate
under 40 CFR part 1048 and for all compression-ignition engines, the
applicable fee is based only on engine families with respect to exhaust
emissions.
    (b) For manufacturers certifying recreational vehicles with respect
to both exhaust and evaporative emission standards, fees are determined
using one of the following approaches:
    (1) If your engine family includes demonstration of compliance with
both exhaust and evaporative emission standards, the applicable fee is
based on certification related to the combined family. No separate fee
applies for certification with respect to evaporative emission
standards. These are all considered engine families complying with
exhaust emissions for determining the number of certificates for
calculating fees for later years.
    (2) If you have separate families for demonstrating compliance with
exhaust and evaporative emission standards, a separate fee from the
appropriate fee category applies for each unique family. Also, the
number of certificates issued as specified in Sec.  1027.105(d)(3) is
based on a separate count of emission families for exhaust and
evaporative emissions for each respective fee category.
    (c) For manufacturers certifying other spark-ignition engines or
equipment with respect to exhaust and evaporative emission standards, a
separate fee from the appropriate fee category applies for each unique
family. A single engine or piece of equipment may involve separate
emission families and certification fees for exhaust and evaporative
emissions. Also, the number of certificates issued as specified in
Sec.  1027.105(d)(3) is based on a separate count of emission families
for exhaust and evaporative emissions for each respective fee category.
    (d) For any certification related to evaporative emissions from
engines, equipment, or components not covered by paragraph (a) through
(c) of this section, the fee applies for each certified product
independent of certification for exhaust emissions, as illustrated in
the following examples:
    (1) A fuel tank certified to meet permeation and diurnal emission
standards would count as a single family for assessing the
certification fee and for calculating fee amounts for future years.
    (2) If an equipment manufacturer applies for certification to
generate or use emission credits for fuel, tanks and fuel lines, each
affected fuel-tank and fuel-line family would count as a single family
for assessing the certification fee and for calculating fee amounts for
future years. This fee applies whether or not the equipment
manufacturer is applying for certification to demonstrate compliance
with another emission standard, such as running losses.
    (e) If you certify fuel system components under 40 CFR part 1060, a
single fee applies for each emission family even if those components
are used with different types of nonroad or stationary engines.
    (f) If your application for certification relates to emission
standards that apply only in California, you must pay the same fee
identified for meeting EPA standards.
    (g) For marine compression-ignition engines, if you apply for a
federal certificate and an Annex VI certificate for the same engine
family, a single fee applies for the engine family (see 40 CFR parts 94
and 1042).
    (h) If you produce engines for multiple categories in a single
engine family, a single fee applies for the engine family. For example,
40 CFR 60.4210 allows you to produce stationary and nonroad
compression-ignition engines in a single engine family. If the
certification fee for the different types of engines is different,

the fee that applies for these engines is based on the emission
standards to which you certify the engine family. For example, if you
certify marine diesel engines to the standards that apply to land-based
nonroad diesel engines under 40 CFR 94.912, the certification fee is
based on the rate that applies for land-based nonroad diesel engines.

Sec.  1027.120  Can I qualify for reduced fees?

    (a) Eligibility requirements. To be eligible for a reduced fee, the
following conditions must be satisfied:
    (1) The certificate is to be used for sale of vehicles or engines
within the United States; and
    (2) The full fee for an application for certification for a model
year exceeds 1.0% of the aggregate projected retail sales price of all
vehicles or engines covered by that certificate.
    (b) Initial reduced fee calculation. (1) If the requirements of
paragraph (a) of this section are satisfied, the initial fee paid shall
be $750 or 1.0% of the aggregate projected retail sales price of all
the vehicles or engines to be covered by the certification application,
whichever is greater.
    (2) For vehicles or engines that are converted to operate on an
alternative fuel, using as the basis for the conversion a vehicle or
engine which is covered by an existing certificate of conformity, the
cost basis used in this section must be the aggregate projected retail
value-added to the vehicle or engine by the conversion rather than the
full cost of the vehicle or engine. To qualify for this provision, the
existing certificate must cover the same sales area and model year as
the requested certificate for the converted vehicle or engine.
    (3) For ICI certification applications, the cost basis of this
section shall be the aggregate projected retail cost of the entire
vehicle(s) or engine(s), not just the value added by the conversion. If
the vehicles/engines covered by an ICI certificate are not being
offered for sale, the manufacturer shall use the fair retail market
value of the vehicles/engines as the retail sale price required in this
section. For an ICI application for certification, the retail sales
price (or fair retail market value) must be based on the applicable
National Automobile Dealer's Association (NADA) appraisal guide and/or
other evidence of the actual market value.
    (4) The aggregate cost used in this section must be based on the
total projected sales of all vehicles and engines under a certificate,
including vehicles and engines modified under the modification and test
option in 40 CFR 85.1509 and 89.609. The projection of the number of
vehicles or engines to be covered by the certificate and their
projected retail selling price must be based on the latest information
available at the time of the fee payment.
    (5) A manufacturer may submit a reduced fee as described in this
section if it is accompanied by a calculation of the fee based on the
number of vehicles covered and the projected aggregate retail sales
price as specified on the fee filing form. The reduced fee calculation
shall be deemed approved unless EPA determines that the criteria of
this section have not been met. The Agency may make such a
determination either before or after EPA issues a certificate of
conformity. If the Agency determines that the requirements of this
section have not been met, EPA may deny future reduced fee applications
and require submission of the full fee payment until such time as the
manufacturer demonstrates to the satisfaction of the Administrator that
its reduced fee submissions are based on accurate data and that final
fee payments are made within 45 days of the end of the model year.
    (6) If the reduced fee is denied by the Administrator, the
applicant will have 30 days from the date of notification of the denial
to submit the appropriate fee to EPA.
    (c) Revision of the number of vehicles or engines covered by the
certificate. (1) If after the original certificate, including a
certificate under which modification and test vehicles are imported
under 40 CFR 85.1509 and 89.609, is issued, the number of vehicles or
engines to be produced or imported under the certificate exceeds the
number indicated on the certificate, the manufacturer or importer
shall--
    (i) Request that EPA revise the certificate with a number that
indicates the new projection of the vehicles or engines to be covered
by the certificate. The revised certificate must be applied for,
revised and issued before the vehicles or engines are sold or finally
imported into the United States; and
    (ii) Submit payment of 1.0% of the aggregate projected retail sales
price of all the vehicles or engines above the number of vehicles or
engines listed on the certificate to be covered by the application for
certification.
    (2) A manufacturer must receive a revised certificate prior to the
sale or final importation of any vehicles or engines, including
modification and test vehicles, that are not originally included in the
certificate issued under paragraph (b) of this section, or as indicated
in a revised certificate issued under paragraph (c)(1) of this section.
In the event that a certificate is not timely revised such additional
vehicles or engines are not covered by a certificate of conformity.
    (d) Final reduced fee calculation and adjustment. (1) If the
initial fee payment is less than the final reduced fee, then the
manufacturer shall pay the difference between the initial reduced fee
and the final reduced fee using the provisions of Sec.  1027.130. The
final reduced fee shall be calculated using the procedures of paragraph
(c) of this section but using actual production figures rather than
projections and actual retail sales value rather than projected retail
sales value.
    (2) This payment shall be paid within 45 days of the end of the
model year. The total fees paid for a certificate shall not exceed the
applicable full fee of Sec.  1027.105. If a manufacturer fails to make
complete payment with 45 days then the Agency may void ab initio the
applicable certificate. EPA may also refuse to grant reduced fee
requests submitted under paragraph (b)(5) of this section.
    (3) If the initial fee payment exceeds the final reduced fee then
the manufacturer may request a refund using the procedures of Sec.
1027.125.
    (e) Records retention. Manufacturers are subject to the applicable
maintenance of records requirements of 40 CFR part 86, subpart A. If a
manufacturer fails to maintain the records or provide such records to
EPA as required then EPA may void the certificate for which such
records shall be kept. Manufacturers must retain in their records the
basis used to calculate the projected sales and fair retail market
value and the actual sales and retail price for the vehicles and
engines covered by each certificate that is issued under the reduced
fee provisions of this section. This information must be retained for a
period of at least three years after the issuance of the certificate
and must be provided to the Agency within 30 days of request.

Sec.  1027.125  Can I get a refund?

    (a) We will refund the total fee imposed under this part if you ask
for a refund after failing to get a certificate for any reason.
    (b) If your actual sales or the actual retail prices in a given
year are less than you projected for calculating a reduced fee under
Sec.  1027.120, we will refund the appropriate portion of the fee. We
will also refund a portion of the initial payment if it exceeds the
final fee for the engines, vehicles, or equipment covered by the
certificate application.
    (1) You are eligible for a partial refund related to a certificate
only if you sold

engines, vehicles, or equipment under that certificate in the United
States.
    (2) Include all the following in your request for a partial refund
of reduced fee payments:
    (i) State that you sold engines, vehicles, or equipment under the
applicable certificate in the United States.
    (ii) Identify the number of engines, vehicles, or equipment you
produced or imported under the certificate, and whether the engines,
vehicles, or equipment have been sold.
    (iii) Identify the reduced fee that you paid under the applicable
certificate.
    (iv) Identify the actual retail sales price for the engines,
vehicles, or equipment produced or imported under the certificate.
    (v) Calculate the final value of the reduced fee using actual
production figures and retail prices.
    (vi) Calculate the refund amount.
    (c) We will approve your request to correct errors in the amount of
the fee.
    (d) All refunds must be applied for within six months of the end of
the model year.
    (e) Send refund and correction requests to the Fee Program
Specialist, U.S. Environmental Protection Agency, Vehicle Programs and
Compliance Division, 2000 Traverwood Dr., Ann Arbor, MI 48105, online
at http://www.Pay.gov., or as specified in guidance by the Administrator.

    (e) You may request to have refund amounts applied to the amount
due on another application for certification.

Sec.  1027.130  How do I make a fee payment?

    (a) Pay fees to the order of the Environmental Protection Agency in
U.S. dollars using any of the following methods: money order, bank
draft, certified check, corporate check, electronic funds transfer, any
method available for payment online at http://www.Pay.gov, or as specified in

EPA guidance
    (b) Send a completed fee filing form to the address designated on
the form for each fee payment or electronically at http://www.Pay.gov, or as

provided in EPA guidance. These forms are available on the Internet at
http://www.epa.gov/otaq/guidance.htm.

    (c) You must pay the fee amount due before we will start to process
an application for certification.
    (d) If we deny a reduced fee, you must pay the proper fee within 30
days after we notify you of our decision.

Sec.  1027.135  What provisions apply to a deficient filing?

    (a) Any filing under this part is deficient if it is not
accompanied by a completed fee filing form and full payment of the
appropriate fee.
    (b) A deficient filing will be rejected unless the completed form
and full payment are submitted within a time limit we specify. We will
not process an application for certification if the associated filing
is deficient.

Sec.  1027.140  What reporting and recordkeeping requirements apply
under this part?

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the
Office of Management and Budget approves the reporting and
recordkeeping specified in the applicable regulations. The following
items illustrate the kind of reporting and recordkeeping we require for
engines, vehicles, and equipment regulated under this part:
    (a) Filling out fee filing forms under Sec.  1027.130.
    (b) Retaining fee records, including reduced fee documentation,
under Sec.  1027.120.

Sec.  1027.150  What definitions apply to this subpart?

    The definitions in this section apply to this part. As used in this
part, all undefined terms have the meaning the Act or the standard-
setting part gives to them. The definitions follow:
    Annex VI means MARPOL Annex VI, which is an annex to the
International Convention on the Prevention of Pollution from Ships,
1973, as modified by the protocol of 1978 relating thereto. This is an
international treaty regulating disposal of waste products from marine
vessels.
    Application for Certification means a manufacturer's submission of
an application for certification.
    California-only certificate is a certificate of conformity issued
by EPA showing compliance with emission standards established by
California.
    Federal certificate is a certificate of conformity issued by EPA
showing compliance with EPA emission standards specified in one of the
standard-setting parts specified in Sec.  1027.101(a).
    Light-duty means relating to light-duty vehicles and light-duty
trucks.
    Manufacturer has the meaning given in section 216(1) of the Act. In
general, this term includes any person who manufactures an engine,
vehicle, vessel, or piece of equipment for sale in the United States or
otherwise introduces a new engine, vehicle, vessel, or piece of
equipment into commerce in the United States. This includes importers
who import such products for resale, but not dealers.
    Total number of certificates issued means the number of
certificates for which fees have been paid. This term is not intended
to represent multiple certificates that are issued within a single
family or test group.
    Void has the meaning given in 40 CFR 1068.30.
    We (us, our) means the Administrator of the Environmental
Protection Agency and any authorized representatives.

Sec.  1027.155  What abbreviations apply to this subpart?

    The following symbols, acronyms, and abbreviations apply to this
part:

CFR Code of Federal Regulations
EPA U.S. Environmental Protection Agency
Evap Evaporative Emissions
ICI Independent Commercial Importer
    46. A new part 1045 is added to subchapter U of chapter I to read
as follows:

PART 1045 CONTROL OF EMISSIONS FROM SPARK-IGNITION PROPULSION
MARINE ENGINES

Subpart A Overview and Applicability
Sec.
1045.1 Does this part apply for my products?
1045.2 Who is responsible for compliance?
1045.5 Which engines are excluded from this part's requirements?
1045.10 How is this part organized?
1045.15 Do any other regulation parts apply to me?
1045.20 What requirements apply to my vessels?
1045.25 How do the requirements related to evaporative emissions
apply to engines and their fuel systems?
Subpart B Emission Standards and Related Requirements
1045.101 What exhaust emission standards and requirements must my
engines meet?
1045.103 What exhaust emission standards must my outboard and
personal watercraft engines meet?
1045.105 What exhaust emission standards must my sterndrive/inboard
engines meet?
1045.107 What are the standards for evaporative emissions?
1045.110 How must my engines diagnose malfunctions?
1045.115 What other requirements apply?
1045.120 What emission-related warranty requirements apply to me?
1045.125 What maintenance instructions must I give to buyers?
1045.130 What installation instructions must I give to vessel
manufacturers?
1045.135 How must I label and identify the engines I produce?
1045.140 What is my engine's maximum engine power?
1045.145 Are there interim provisions that apply only for a limited
time?
Subpart C--Certifying Engine Families
1045.201 What are the general requirements for obtaining a
certificate of conformity?

1045.205 What must I include in my application?
1045.210 May I get preliminary approval before I complete my
application?
1045.220 How do I amend the maintenance instructions in my
application?
1045.225 How do I amend my application for certification to include
new or modified engines or change an FEL?
1045.230 How do I select engine families?
1045.235 What emission testing must I perform for my application for
a certificate of conformity?
1045.240 How do I demonstrate that my engine family complies with
exhaust emission standards?
1045.245 How do I determine deterioration factors from exhaust
durability testing?
1045.250 What records must I keep and what reports must I send to
EPA?
1045.255 What decisions may EPA make regarding my certificate of
conformity?
Subpart D--Testing Production-line Engines
1045.301 When must I test my production-line engines?
1045.305 How must I prepare and test my production-line engines?
1045.310 How must I select engines for production-line testing?
1045.315 How do I know when my engine family fails the production-
line testing requirements?
1045.320 What happens if one of my production-line engines fails to
meet emission standards?
1045.325 What happens if an engine family fails the production-line
testing requirements?
1045.330 May I sell engines from an engine family with a suspended
certificate of conformity?
1045.335 How do I ask EPA to reinstate my suspended certificate?
1045.340 When may EPA revoke my certificate under this subpart and
how may I sell these engines again?
1045.345 What production-line testing records must I send to EPA?
1045.350 What records must I keep?
Subpart E--In-use Testing
1045.401 What testing requirements apply to my engines that have
gone into service?
1045.405 How does this program work?
1045.410 How must I select, prepare, and test my in-use engines?
1045.415 What happens if in-use engines do not meet requirements?
1045.420 What in-use testing information must I report to EPA?
1045.425 What records must I keep?
Subpart F--Test Procedures
1045.501 How do I run a valid emission test?
1045.505 How do I test engines using discrete-mode or ramped-modal
duty cycles?
1045.515 What are the test procedures related to not-to-exceed
standards?
1045.520 What testing must I perform to establish deterioration
factors?
Subpart G--Special Compliance Provisions
1045.601 What compliance provisions apply to these engines?
1045.605 What provisions apply to engines already certified under
the motor-vehicle program or other nonroad spark-ignition engine
programs?
1045.620 What are the provisions for exempting engines used solely
for competition?
1045.630 What is the personal-use exemption?
1045.635 What special provisions apply for small-volume engine
manufacturers?
1045.640 What special provisions apply to branded engines?
1045.645 What special provisions apply for converting an engine to
use an alternate fuel?
1045.650 Do the provisions of 40 CFR 1068.260 apply for marine
engines?
1045.660 How do I certify outboard or personal watercraft engines
for use in jet boats?
Subpart H--Averaging, Banking, and Trading for Certification
1045.701 General provisions.
1045.705 How do I generate and calculate exhaust emission credits?
1045.706 How do I generate and calculate evaporative emission
credits?
1045.710 How do I average emission credits?
1045.715 How do I bank emission credits?
1045.720 How do I trade emission credits?
1045.725 What must I include in my application for certification?
1045.730 What ABT reports must I send to EPA?
1045.735 What records must I keep?
1045.745 What can happen if I do not comply with the provisions of
this subpart?
Subpart I--Definitions and Other Reference Information
1045.801 What definitions apply to this part?
1045.805 What symbols, acronyms, and abbreviations does this part
use?
1045.810 What materials does this part reference?
1045.815 What provisions apply to confidential information?
1045.820 How do I request a hearing?
1045.825 What reporting and recordkeeping requirements apply under
this part?
Appendix I to Part 1045--Summary of Previous Emission Standards
Appendix II to Part 1045--Duty Cycles for Propulsion Marine Engines

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

Subpart A--Overview and Applicability

Sec.  1045.1  Does this part apply for my products?

    (a) Except as provided in Sec.  1045.5, the regulations in this
part 1045 apply as follows:
    (1) The requirements of this part related to exhaust emissions
apply to new, spark-ignition propulsion marine engines beginning with
the 2009 model year.
    (2) The requirements of this part related to evaporative emissions
apply to fuel lines and fuel tanks used with marine engines that use a
volatile liquid fuel (such as gasoline) beginning with the 2009 model
year as specified in 40 CFR part 1045.107. This includes fuel lines and
fuel tanks used with auxiliary marine engines. This also includes
portable marine fuel tanks and associated fuel lines.
    (b) We specify optional standards for certifying sterndrive/inboard
engines before the 2009 model year in Sec.  1045.145(a). Engines
certified to these standards are subject to all the requirements of
this part as if these optional standards were mandatory.
    (c) See 40 CFR part 91 for requirements that apply to outboard and
personal watercraft engines not yet subject to the requirements of this
part 1045.
    (d) The provisions of Sec. Sec.  1045.620 and 1045.801 apply for
new engines used solely for competition beginning January 1, 2009.

Sec.  1045.2  Who is responsible for compliance?

    The requirements and prohibitions of this part apply to
manufacturers of engines and fuel-system components as described in
Sec.  1045.1. The requirements of this part are generally addressed to
manufacturers subject to this part's requirements. The term ``you''
generally means the certifying manufacturer. For provisions related to
exhaust emissions, this generally means the engine manufacturer,
especially for issues related to certification (including production-
line testing, reporting, etc.). For provisions related to certification
with respect to evaporative emissions, this generally means the
manufacturer of fuel-system components. Vessel manufacturers must meet
applicable requirements as described in Sec.  1045.20.

Sec.  1045.5  Which engines are excluded from this part's requirements?

    (a) Auxiliary engines. The exhaust emission standards of this part
do not apply to auxiliary marine engines. See 40 CFR part 90, 1048, or
1054 for the exhaust emission standards that apply.
    (b) Hobby engines and vessels. This part does not apply with
respect to reduced-scale models of vessels that are not capable of
transporting a person.

Sec.  1045.10  How is this part organized?

    This part 1045 is divided into the following subparts:
    (a) Subpart A of this part defines the applicability of this part
1045 and gives an overview of regulatory requirements.

    (b) Subpart B of this part describes the emission standards and
other requirements that must be met to certify engines under this part.
Note that Sec.  1045.145 discusses certain interim requirements and
compliance provisions that apply only for a limited time.
    (c) Subpart C of this part describes how to apply for a certificate
of conformity.
    (d) Subpart D of this part describes general provisions for testing
production-line engines.
    (e) Subpart E of this part describes general provisions for testing
in-use engines.
    (f) Subpart F of this part describes how to test your engines
(including references to other parts of the Code of Federal
Regulations).
    (g) Subpart G of this part and 40 CFR part 1068 describe
requirements, prohibitions, and other provisions that apply to engine
manufacturers, vessel manufacturers, owners, operators, rebuilders, and
all others.
    (h) Subpart H of this part describes how you may generate and use
exhaust and evaporative emission credits to certify your engines and
vessels.
    (i) Subpart I of this part contains definitions and other reference
information.

Sec.  1045.15  Do any other regulation parts apply to me?

    (a) Part 1060 of this chapter describes standards and procedures
that apply for evaporative emissions from engines fueled by gasoline or
other volatile liquid fuels and the associated fuel systems. See Sec.
1045.107 for information about how that part applies.
    (b) Part 1065 of this chapter describes procedures and equipment
specifications for testing engines. Subpart F of this part 1045
describes how to apply the provisions of part 1065 of this chapter to
determine whether engines meet the emission standards in this part.
    (c) The requirements and prohibitions of part 1068 of this chapter
apply to everyone, including anyone who manufactures, imports,
installs, owns, operates, or rebuilds any of the engines subject to
this part 1045, or vessels powered by these engines. Part 1068 of this
chapter describes general provisions, including these seven areas:
    (1) Prohibited acts and penalties for engine manufacturers, vessel
manufacturers, and others.
    (2) Rebuilding and other aftermarket changes.
    (3) Exclusions and exemptions for certain engines.
    (4) Importing engines.
    (5) Selective enforcement audits of your production.
    (6) Defect reporting and recall.
    (7) Procedures for hearings.
    (d) Other parts of this chapter apply if referenced in this part.

Sec.  1045.20  What requirements apply to my vessels?

    (a) If you manufacture vessels with engines certified to the
exhaust emission standards in this part, your vessels must meet all
emission standards with the engine and fuel system installed.
    (b) You may need to certify your vessels or fuel systems as
described in 40 CFR 1060.1 and 1060.601. If you produce vessels subject
to this part without obtaining a certificate, you must still meet the
requirements of 40 CFR 1060.101(e) and (f) and keep records as
described in 40 CFR 1060.210.
    (c) You must identify and label vessels you produce under this
section consistent with the requirements of Sec.  1045.135 and 40 CFR
part 1060.
    (d) You must follow all emission-related installation instructions
from the certifying manufacturers as described in Sec.  1045.130 and 40
CFR 1068.105. If you do not follow the installation instructions, we
may consider your vessel to be not covered by the certificates of
conformity. Introduction of such vessels into U.S. commerce violates 40
CFR 1068.101.

Sec.  1045.25  How do the requirements related to evaporative emissions
apply to engines and their fuel systems?

    (a) Engine manufacturers must provide the installation instructions
required by Sec.  1045.130 to the ultimate purchasers of the engine.
These instructions may be combined with the maintenance instructions
required by Sec.  1045.125.
    (b) Engines sold with attached fuel lines or installed fuel tanks
must be covered by the appropriate certificates of conformity issued
under 40 CFR part 1060.
    (c) Fuel lines intended to be used with new engines and new
portable fuel tanks must be certified to the applicable requirements of
40 CFR part 1060.
    (d) All persons installing engines certified under this part 1045
must follow the certifying manufacturer's emission-related installation
instructions (see Sec.  1045.130 and 40 CFR 1068.105).

Subpart B--Emission Standards and Related Requirements

Sec.  1045.101  What exhaust emission standards and requirements must
my engines meet?

    (a) You must show that your engines meet the following
requirements:
    (1) Outboard and personal watercraft engines must meet the exhaust
emission standards in Sec.  1045.103.
    (2) Sterndrive/inboard engines must meet the exhaust emission
standards in Sec.  1045.105. Sterndrive/inboard engines may also meet
the optional standards in Sec.  1045.145.
    (3) Sterndrive/inboard engines must meet the engine-diagnostic
requirements in Sec.  1045.110.
    (4) All engines must meet the requirements in Sec.  1045.115.
    (b) It is important that you read Sec.  1045.145 to determine if
there are other interim requirements or interim compliance provisions
that apply for a limited time.

Sec.  1045.103  What exhaust emission standards must my outboard and
personal watercraft engines meet?

    (a) Emission standards. Starting in the 2009 model year, exhaust
emissions from your outboard and personal watercraft engines may not
exceed emission standards as follows:
    (1) Measure emissions using the applicable steady-state test
procedures described in subpart F of this part.
    (2) The exhaust emission standards from the following table apply:

Table 1 to Sec.   1045.103--Emission Standards for Outboard and Personal
                      Watercraft Engines (g/kW-hr)
------------------------------------------------------------------------
  Maximum Engine  Power (P)          HC+NOX                  CO
------------------------------------------------------------------------
P < = 40 kW..................  28 - 0.3 x P........  500 - 5.0 x P
P > 40 kW...................  16.0................  300
------------------------------------------------------------------------

    (3) For engines with maximum engine power at or below 40 kW, round
the calculated HC+NOX emission standard to the nearest 0.1
g/kW-hr; round the calculated CO emission standard to the nearest g/kW-
hr.
    (b) Averaging, banking, and trading. You may generate or use
emission credits under the averaging, banking, and trading (ABT)
program described in subpart H of this part for demonstrating
compliance with HC+NOX emission standards. For CO emissions,
you may generate or use emission credits for averaging as described in
subpart H of this part, but not for banking or trading. To generate or
use emission credits, you must specify a family emission limit for each
pollutant you include in the ABT program for each engine family. These
family emission limits serve as the emission standards for the engine
family with respect to all required testing instead of the standards
specified in this section. An engine family meets emission standards
even if its family emission limit is higher than the standard, as long
as you show that the whole averaging set of applicable engine families
meets the emission standards using emission credits and the engines
within the family meet the family emission limit. The following are the
maximum values you may specify for family emission limits:
    (1) For engines with maximum engine power at or below 4.3 kW, the
maximum value of the family emission limit for HC+NOX is
81.0 g/kW-hr. For all other engines, the maximum value of the family
emission limit for HC+NOX is defined by the following
formula, with results rounded to the nearest 0.1 g/kW-hr:

FELmax,HC+NOX= 0.25(151 + 557/P0.9) + 6.0.

    (2) For engines with maximum engine power above 40 kW, the maximum
value of the family emission limit for CO is 450 g/kW-hr. For all other
engines, the maximum value is defined by the following formula, with
results rounded to the nearest g/kW-hr:

FELmax,CO = 650 - 5.0 x P

    (c) Not-to-exceed standards. Exhaust emissions may not exceed the
not-to-exceed standards, as follows:
    (1) Measure emissions using the not-to-exceed procedures in subpart
F of this part:
    (2) Determine the not-to-exceed standard, rounded to the same
number of decimal places as the emission standard in Table 1 of this
section, from the following equation:

Not-to-exceed standard = (STD) x (M)

Where:

STD = The standard specified in paragraph (a) of this section if you
certify without using ABT for that pollutant; or the FEL for that
pollutant if you certify using ABT.
M = The NTE multiplier for that pollutant, as defined in paragraph
(c)(3) of this section.

    (3) Use one of the two sets of NTE multipliers from the following
table across the applicable zone specified in Sec.  1045.515:

            Table 2 to Sec.   1045.103--NTE Multipliers for Outboard and Personal Watercraft Engines
----------------------------------------------------------------------------------------------------------------
            Approach                 Pollutant       Subzone 1       Subzone 2       Subzone 3       Subzone 4
----------------------------------------------------------------------------------------------------------------
Primary.........................          HC+NOX            1.20            1.20            1.20            1.60
                                              CO            1.50            1.50            1.50            1.50
Alternative 1...................          HC+NOX            2.00            0.80            0.80            2.00
                                              CO            3.00            1.50            1.00            1.00
Alternative 2...................          HC+NOX            1.00            1.00            1.00            3.00
                                              CO            1.50            1.00            1.00            2.00
----------------------------------------------------------------------------------------------------------------

    (d) Fuel types. The exhaust emission standards in this section
apply for engines using the fuel type on which the engines in the
engine family are designed to operate. You must meet the numerical
emission standards for hydrocarbons in this section based on the
following types of hydrocarbon emissions for engines powered by the
following fuels:
    (1) Alcohol-fueled engines: THCE emissions.
    (2) Natural gas-fueled engines: NMHC emissions.
    (3) Other engines: THC emissions.
    (e) Useful life. Your engines must meet the exhaust emission
standards in paragraphs (a) through (c) of this section over the full
useful life as follows:
    (1) For outboard engines, the minimum useful life is 350 hours of
engine operation or 10 years, whichever comes first.
    (2) For personal watercraft engines, the minimum useful life is 350
hours of engine operation or 5 years, whichever comes first.
    (3) You must specify a longer useful life in terms of hours for the
engine family if the average service life of your vehicles is longer
than the minimum value, as follows:
    (i) Except as allowed by paragraph (e)(3)(ii) of this section, your
useful life (in hours) may not be less than either of the following:
    (A) Your projected operating life from advertisements or other
marketing materials for any engines in the engine family.
    (B) Your basic mechanical warranty for any engines in the engine
family.
    (ii) Your useful life may be based on the average service life of
vehicles in the engine family if you show that the average service life
is less than the useful life required by paragraph (e)(3)(i) of this
section, but more than the minimum useful life (350 hours of engine
operation). In determining the actual average service life of vehicles
in an engine family, we will consider all available information and
analyses. Survey data is allowed but not required to make this showing.
    (f) Applicability for testing. The duty-cycle emission standards in
this subpart apply to all testing performed according to the procedures
in Sec.  1045.505, including certification, production-line, and in-use
testing. The not-to-exceed standards apply for all testing performed
according to the procedures of subpart F of this part.

Sec.  1045.105  What exhaust emission standards must my sterndrive/
inboard engines meet?

    (a) Emission standards. Starting in the 2009 model year, exhaust
emissions from your sterndrive/inboard engines may not exceed emission
standards as follows:
    (1) Measure emissions using the applicable steady-state test
procedures described in subpart F of this part.
    (2) The exhaust emission standards from the following table apply:

  Table 1 to Sec.   1045.105--Emission Standards for Sterndrive/Inboard
                            Engines (g/kW-hr)
------------------------------------------------------------------------
               Engine type                    HC+NOX            CO
------------------------------------------------------------------------
Primary standard for sterndrive/inboard              5.0            75.0
 engines................................
Alternate standards for high-performance             5.0             350
 engines................................
------------------------------------------------------------------------

    (b) Averaging, banking, and trading. You may generate or use
emission credits under the averaging, banking, and trading (ABT)
program described in subpart H of this part for demonstrating
compliance with HC+NOX and CO emission standards. To
generate or use emission credits, you must specify a family emission
limit for each pollutant you include in the ABT program for each engine
family. These family emission limits serve as the emission standards
for the engine family with respect to all required testing instead of
the standards specified in this section. An engine family meets
emission standards even if its family emission limit is higher than the
standard, as long as you show that the whole averaging set of
applicable engine families meets the emission standards using emission
credits and the engines within the family meet the family emission
limit. The following are the maximum values you may specify for family
emission limits:
    (1) For high-performance engines, 30.0 g/kW-hr for
HC+NOX and 350 g/kW-hr for CO.
    (2) For other engines, 16.0 g/kW-hr for HC+NOX and 150
g/kW-hr for CO.
    (c) Not-to-exceed standards. Exhaust emissions may not exceed the
not-to-exceed standards for all sterndrive/inboard engines except high-
performance engines, as follows:
    (1) Measure emissions using the not-to-exceed procedures in subpart
F of this part:
    (2) Determine the not-to-exceed standard, rounded to the same
number of decimal places as the emission standard in Table 1 of this
section from the following equation:

Not-to-exceed standard = (STD) (M)

Where:

STD = The standard specified in paragraph (a) of this section if you
certify without using ABT for that pollutant; or the FEL for that
pollutant if you certify using ABT.
M = The NTE multiplier for that pollutant, as defined in paragraph
(c)(3) of this section.
(3) Use the NTE multipliers from the following table across the
applicable zone specified in Sec.  1045.515:

                   Table 2 to Sec.   1045.105--NTE Multipliers for Sterndrive/Inboard Engines
----------------------------------------------------------------------------------------------------------------
                    Pollutant                        Subzone 1       Subzone 2       Subzone 3       Subzone 4
----------------------------------------------------------------------------------------------------------------
HC+NOX..........................................            1.50            1.00            1.00            1.50
CO..............................................            3.50            1.00            1.00            1.00
----------------------------------------------------------------------------------------------------------------

    (d) Fuel types. The exhaust emission standards in this section
apply for engines using the fuel type on which the engines in the
engine family are designed to operate. You must meet the numerical
emission standards for hydrocarbons in this section based on the
following types of hydrocarbon emissions for engines powered by the
following fuels:
    (1) Alcohol-fueled engines: THCE emissions.
    (2) Natural gas-fueled engines: NMHC emissions.
    (3) Other engines: THC emissions.
    (e) Useful life. Your engines must meet the exhaust emission
standards in paragraphs (a) through (c) of this section over their full
useful life, as follows:
    (1) For high-performance engines with maximum engine power above
485 kW, the minimum useful life is 50 hours of operation or 1 year,
whichever comes first. For high-performance engines with maximum engine
power at or below 485 kW, the minimum useful life is 150 hours of
operation or 3 years, whichever comes first.
    (2) For all other engines, the minimum useful life is 480 hours of
operation or ten years, whichever comes first. However, you may request
in your application for certification that we approve a shorter useful
life for an engine family. We may approve a shorter useful life, in
hours of engine operation but not in years, if we determine that these
engines will rarely operate longer than the shorter useful life. If
engines identical to those in the engine family have already been
produced and are in use, your demonstration must include documentation
from such in-use engines. In other cases, your demonstration must
include an engineering analysis of information equivalent to such in-
use data, such as data from research engines or similar engine models
that are already in production. Your demonstration must also include
any overhaul interval that you recommend, any mechanical warranty that
you offer for the engine or its components, and any relevant customer
design specifications. Your demonstration may include any other
relevant information. The useful life value may not be shorter than any
of the following:
    (i) 150 hours of operation.
    (ii) Your recommended overhaul interval.
    (iii) Your mechanical warranty for the engine.
    (3) You must specify a longer useful life in terms of hours for the
engine family if the average service life of your vehicles is longer
than the minimum value, as follows:
    (i) Except as allowed by paragraph (e)(3)(ii) of this section, your
useful life (in hours) may not be less than either of the following:
    (A) Your projected operating life from advertisements or other
marketing materials for any engines in the engine family.
    (B) Your basic mechanical warranty for any engines in the engine
family.
    (ii) Your useful life may be based on the average service life of
vehicles in the engine family if you show that the average service life
is less than the useful life required by paragraph (e)(3)(i) of this
section, but more than the minimum useful life (480 hours of engine
operation). In determining the actual average service life of vehicles
in an engine family, we will consider all available information and
analyses. Survey data is allowed but not required to make this showing.
    (f) Applicability for testing. The duty-cycle emission standards in
this section

apply to all testing performed according to the procedures in Sec.
1045.505, including certification, production-line, and in-use testing.
The not-to-exceed standards apply for all testing performed according
to the procedures of subpart F of this part.

Sec.  1045.107  What are the standards for evaporative emissions?

    Fuel systems must meet the evaporative emission requirements of 40
CFR part 1060 as specified in this section. The useful life of these
standards is five years for personal watercraft and ten years for all
other vessels.
    (a) Fuel line permeation. Nonmetal fuel lines must meet the
permeation requirements specified in 40 CFR 1060.102 for EPA NR fuel
lines starting in the 2009 model year. Metal fuel lines are not subject
to emission standards.
    (b) Tank permeation. Fuel tanks must meet the permeation
requirements specified in 40 CFR 1060.103. Portable fuel tanks and fuel
tanks for personal watercraft must meet permeation standards starting
in the 2011 model year. Other installed fuel tanks must meet permeation
standards starting in the 2012 model year. Vessel manufacturers may
generate or use emission credits to show compliance with the
requirements of this paragraph under the averaging, banking, and
trading (ABT) program, as described in subpart H of this part. Starting
in the 2014 model year for personal watercraft and in the 2015 model
year for other installed fuel tanks, family emission limits may not
exceed 5.0 g/m2/day if testing occurs at a nominal
temperature of 28[deg] C, or 8.3 g/m2/day if testing occurs
at a nominal temperature of 40[deg]C. Portable fuel tank manufacturers
may not generate or use emission credits under subpart H of this part.
See Sec.  1045.145(e) for special provisions related to the timing of
these requirements.
    (c) Running loss. The running loss requirements specified in 40 CFR
part 1060 do not apply.
    (d) Diurnal emissions. Installed fuel tanks must meet the diurnal
emission requirements specified in 40 CFR 1060.105. Fuel tanks for
personal watercraft must meet diurnal emission standards starting in
the 2009 model year. Other installed fuel tanks must meet diurnal
emission standards starting in the 2010 model year. Fuel tanks meeting
the definition of portable marine fuel tank in Sec.  1045.801 must
comply with the diurnal requirements for portable nonroad fuel tanks in
40 CFR part 1060 starting in the 2009 model year.
    (e) Other requirements. The requirements of 40 CFR 1060.101(e) and
(f) apply to vessel manufacturers even if they do not obtain a
certificate.

Sec.  1045.110  How must my engines diagnose malfunctions?

    The following engine-diagnostic requirements apply to sterndrive/
inboard engines only:
    (a) Equip your engines with a diagnostic system. Equip each engine
with a diagnostic system that will detect significant malfunctions in
its emission control system using one of the following protocols:
    (1) If your emission control strategy depends on maintaining air-
fuel ratios at stoichiometry, an acceptable diagnostic design would
identify malfunction whenever the air-fuel ratio does not cross
stoichiometry for one minute of intended closed-loop operation. You may
use other diagnostic strategies if we approve them in advance.
    (2) If the protocol described in paragraph (a)(1) of this section
does not apply to your engine, you must use an alternative approach
that we approve in advance. Your alternative approach must generally
detect when the emission control system is not functioning properly.
    (3) Diagnostic systems approved by the California Air Resources
Board for use with sterndrive/inboard engines fully satisfy the
requirements of this section.
    (b) Use a malfunction-indicator light (MIL). The MIL must be
readily visible to the operator; it may be any color except red. When
the MIL goes on, it must display ``Check Engine,'' ``Service Engine
Soon,'' or a similar message that we approve. You may use sound in
addition to the light signal. The MIL must go on under each of these
circumstances:
    (1) When a malfunction occurs, as described in paragraph (a) of
this section.
    (2) When the diagnostic system cannot send signals to meet the
requirement of paragraph (b)(1) of this section.
    (3) When the engine's ignition is in the ``key-on'' position before
starting or cranking. The MIL should go out after engine starting if
the system detects no malfunction.
    (c) Control when the MIL can go out. If the MIL goes on to show a
malfunction, it must remain on during all later engine operation until
servicing corrects the malfunction. If the engine is not serviced, but
the malfunction does not recur for three consecutive engine starts
during which the malfunctioning system is evaluated and found to be
working properly, the MIL may stay off during later engine operation.
    (d) Store trouble codes in computer memory. Record and store in
computer memory any diagnostic trouble codes showing a malfunction that
should illuminate the MIL. The stored codes must identify the
malfunctioning system or component as uniquely as possible. Make these
codes available through the data link connector as described in
paragraph (g) of this section. You may store codes for conditions that
do not turn on the MIL. The system must store a separate code to show
when the diagnostic system is disabled (from malfunction or tampering).
    (e) Make data, access codes, and devices accessible. Make all
required data accessible to us without any access codes or devices that
only you can supply. Ensure that anyone servicing your engine can read
and understand the diagnostic trouble codes stored in the onboard
computer with generic tools and information.
    (f) Consider exceptions for certain conditions. Your diagnostic
systems may disregard trouble codes for the first three minutes after
engine starting. You may ask us to approve diagnostic-system designs
that disregard trouble codes under other conditions that would produce
an unreliable reading, damage systems or components, or cause other
safety risks.
    (g) Follow standard references for formats, codes, and connections.
Follow conventions defined in the following documents (incorporated by
reference in Sec.  1045.810) or ask us to approve using updated
versions of (or variations from) these documents:
    (1) ISO 9141-2 Road vehicles--Diagnostic systems--Part 2: CARB
requirements for interchange of digital information, February 1994.
    (2) ISO 14230-4 Road vehicles--Diagnostic systems--Keyword Protocol
2000--Part 4: Requirements for emission-related systems, June 2000.

Sec.  1045.115  What other requirements apply?

    The following requirements apply with respect to engines that are
required to meet the emission standards of this part:
    (a) Crankcase emissions. Crankcase emissions may not be discharged
directly into the ambient atmosphere from any engine throughout its
useful life.
    (b) Torque broadcasting. Electronically controlled engines must
broadcast their speed and output shaft torque (in newton-meters).
Engines may alternatively broadcast a surrogate value

for determining torque. Engines must broadcast engine parameters such
that they can be read with a remote device, or broadcast them directly
to their controller area networks. This information is necessary for
testing engines in the field (see 40 CFR part 1065, subpart J). Small-
volume engine manufacturers may omit this requirement.
    (c) EPA access to broadcast information. If we request it, you must
provide us any hardware or tools we would need to readily read,
interpret, and record all information broadcast by an engine's on-board
computers and electronic control modules. If you broadcast a surrogate
parameter for torque values, you must provide us what we need to
convert these into torque units. We will not ask for hardware or tools
if they are readily available commercially.
    (d) [Reserved]
    (e) Adjustable parameters. Engines that have adjustable parameters
must meet all the requirements of this part for any adjustment in the
physically adjustable range. An operating parameter is not considered
adjustable if you permanently seal it or if it is not normally
accessible using ordinary tools. We may require that you set adjustable
parameters to any specification within the adjustable range during any
testing, including certification testing, production-line testing, or
in-use testing.
    (f) Prohibited controls. You may not design your engines with
emission-control devices, systems, or elements of design that cause or
contribute to an unreasonable risk to public health, welfare, or safety
while operating. For example, this would apply if the engine emits a
noxious or toxic substance it would otherwise not emit that contributes
to such an unreasonable risk.
    (g) Defeat devices. You may not equip your engines with a defeat
device. A defeat device is an auxiliary emission control device that
reduces the effectiveness of emission controls under conditions that
the engine may reasonably be expected to encounter during normal
operation and use. This does not apply to auxiliary emission control
devices you identify in your certification application if any of the
following is true:
    (1) The conditions of concern were substantially included in the
applicable duty-cycle test procedures described in subpart F of this
part.
    (2) You show your design is necessary to prevent engine (or vessel)
damage or accidents.
    (3) The reduced effectiveness applies only to starting the engine.

Sec.  1045.120  What emission-related warranty requirements apply to
me?

    (a) General requirements. You must warrant to the ultimate
purchaser and each subsequent purchaser that the new engine, including
all parts of its emission control system, meets two conditions:
    (1) It is designed, built, and equipped so it conforms at the time
of sale to the ultimate purchaser with the requirements of this part.
    (2) It is free from defects in materials and workmanship that may
keep it from meeting these requirements.
    (b) Warranty period. Your emission-related warranty must be valid
during the periods specified in this paragraph (b). You may offer an
emission-related warranty more generous than we require. The emission-
related warranty for the engine may not be shorter than any published
warranty you offer without charge for the engine. Similarly, the
emission-related warranty for any component may not be shorter than any
published warranty you offer without charge for that component. If an
engine has no hour meter, we base the warranty periods in this
paragraph (b) only on the engine's age (in years). The warranty period
begins when the engine is placed into service.
    (1) The minimum warranty period for outboard engines is 175 hours
of engine operation or 5 years, whichever comes first. The minimum
warranty period for personal watercraft engines is 175 hours of engine
operation or 30 months, whichever comes first.
    (2) The minimum warranty period for sterndrive/inboard engines is
shown in the following table:

                 Table 1 to Sec.   1045.120--Warranty Periods for Sterndrive/inboard Engines \1\
----------------------------------------------------------------------------------------------------------------
         Maximum engine power                  Electronic components                Mechanical components
----------------------------------------------------------------------------------------------------------------
P <  373 kW............................  3 years/480 hours..................  3 years/480 hours.
373 < = P <  485 kW.....................  3 years/480 hours..................  3 years/150 hours.
P >= 485 kW...........................  3 years/480 hours..................  1 year/50 hours.
----------------------------------------------------------------------------------------------------------------
\1\ The warranty period expires after the specified time period or number of operating hours, whichever comes
  first.

    (c) Components covered. The emission-related warranty covers all
components whose failure would increase an engine's emissions of any
pollutant, including those listed in 40 CFR part 1068, Appendix I, and
those from any other system you develop to control emissions. The
emission-related warranty covers these components even if another
company produces the component. Your emission-related warranty does not
cover components whose failure would not increase an engine's emissions
of any pollutant.
    (d) Limited applicability. You may deny warranty claims under this
section if the operator caused the problem through improper maintenance
or use, as described in 40 CFR 1068.115.
    (e) Owners manual. Describe in the owners manual the emission-
related warranty provisions from this section that apply to the engine.

Sec.  1045.125  What maintenance instructions must I give to buyers?

    Give the ultimate purchaser of each new engine written instructions
for properly maintaining and using the engine, including the emission
control system as described in this section. The maintenance
instructions also apply to service accumulation on your emission-data
engines as described in Sec.  1045.245 and in 40 CFR part 1065.
    (a) Critical emission-related maintenance. Critical emission-
related maintenance includes any adjustment, cleaning, repair, or
replacement of critical emission-related components. This may also
include additional emission-related maintenance that you determine is
critical if we approve it in advance. You may schedule critical
emission-related maintenance on these components if you meet the
following conditions:
    (1) You demonstrate that the maintenance is reasonably likely to be
done at the recommended intervals on in-use engines. We will accept
scheduled maintenance as reasonably likely to occur if you satisfy any
of the following conditions:
    (i) You present data showing that any lack of maintenance that
increases

emissions also unacceptably degrades the engine's performance.
    (ii) You present survey data showing that at least 80 percent of
engines in the field get the maintenance you specify at the recommended
intervals.
    (iii) You provide the maintenance free of charge and clearly say so
in maintenance instructions for the customer.
    (iv) You otherwise show us that the maintenance is reasonably
likely to be done at the recommended intervals.
    (2) You may not schedule critical emission-related maintenance
within the useful life period for aftertreatment devices, pulse-air
valves, fuel injectors, oxygen sensors, electronic control units,
superchargers, or turbochargers, except as specified in paragraph (b)
or (c) of this section.
    (b) Recommended additional maintenance. You may recommend any
additional amount of maintenance on the components listed in paragraph
(a) of this section, as long as you state clearly that these
maintenance steps are not necessary to keep the emission-related
warranty valid. If operators do the maintenance specified in paragraph
(a) of this section, but not the recommended additional maintenance,
this does not allow you to disqualify those engines from in-use testing
or deny a warranty claim. Do not take these maintenance steps during
service accumulation on your emission-data engines.
    (c) Special maintenance. You may specify more frequent maintenance
to address problems related to special situations, such as atypical
engine operation. You must clearly state that this additional
maintenance is associated with the special situation you are
addressing.
    (d) Noncritical emission-related maintenance. Subject to the
provisions of this paragraph (d), you may schedule any amount of
emission-related inspection or maintenance that is not covered by
paragraph (a) of this section (i.e., maintenance that is neither
explicitly identified as critical emission-related maintenance, nor
that we approve as critical emission-related maintenance). Noncritical
emission-related maintenance generally includes changing spark plugs,
re-seating valves, or any other emission-related maintenance on the
components we specify in 40 CFR part 1068, Appendix I. You must state
in the owners manual that these steps are not necessary to keep the
emission-related warranty valid. If operators fail to do this
maintenance, this does not allow you to disqualify those engines from
in-use testing or deny a warranty claim. Do not take these inspection
or maintenance steps during service accumulation on your emission-data
engines.
    (e) Maintenance that is not emission-related. For maintenance
unrelated to emission controls, you may schedule any amount of
inspection or maintenance. You may also take these inspection or
maintenance steps during service accumulation on your emission-data
engines, as long as they are reasonable and technologically necessary.
This might include adding engine oil, changing air, fuel, or oil
filters, servicing engine-cooling systems, and adjusting idle speed,
governor, engine bolt torque, valve lash, or injector lash. You may
perform this nonemission-related maintenance on emission-data engines
at the least frequent intervals that you recommend to the ultimate
purchaser (but not the intervals recommended for severe service).
    (f) Source of parts and repairs. State clearly on the first page of
your written maintenance instructions that a repair shop or person of
the owner's choosing may maintain, replace, or repair emission control
devices and systems. Your instructions may not require components or
service identified by brand, trade, or corporate name. Also, do not
directly or indirectly condition your warranty on a requirement that
the engine be serviced by your franchised dealers or any other service
establishments with which you have a commercial relationship. You may
disregard the requirements in this paragraph (f) if you do one of two
things:
    (1) Provide a component or service without charge under the
purchase agreement.
    (2) Get us to waive this prohibition in the public's interest by
convincing us the engine will work properly only with the identified
component or service.
    (g) Payment for scheduled maintenance. Owners are responsible for
properly maintaining their engines. This generally includes paying for
scheduled maintenance. However, manufacturers must pay for scheduled
maintenance during the useful life if it meets all the following
criteria:
    (1) Each affected component was not in general use on similar
engines before the applicable dates shown in paragraph (5) of the
definition of new propulsion marine engine in Sec.  1045.801.
    (2) The primary function of each affected component is to reduce
emissions.
    (3) The cost of the scheduled maintenance is more than 2 percent of
the price of the engine.
    (4) Failure to perform the maintenance would not cause clear
problems that would significantly degrade the engine's performance.
    (h) Owners manual. Explain the owner's responsibility for proper
maintenance in the owners manual.

Sec.  1045.130  What installation instructions must I give to vessel
manufacturers?

    (a) If you sell an engine for someone else to install in a vessel,
give the engine installer instructions for installing it consistent
with the requirements of this part. Include all information necessary
to ensure that an engine will be installed in its certified
configuration.
    (b) Make sure these instructions have the following information:
    (1) Include the heading: ``Emission-related installation
instructions''.
    (2) State: ``Failing to follow these instructions when installing a
certified engine in a vessel violates federal law (40 CFR 1068.105(b)),
subject to fines or other penalties as described in the Clean Air
Act.''.
    (3) Describe the instructions needed to properly install the
exhaust system and any other components. Include instructions
consistent with the requirements of Sec.  1045.205(t).
    (4) Describe the steps needed to control evaporative emissions as
described in Sec.  1045.107. This will generally require notification
that the installer and/or vessel manufacturer must meet the
requirements of Sec.  1045.107 and 40 CFR part 1060.
    (5) Describe any necessary steps for installing the diagnostic
system described in Sec.  1045.110.
    (6) Describe any limits on the range of applications needed to
ensure that the engine operates consistently with your application for
certification. For example, if your engines are certified only for
personal watercraft, tell vessel manufacturers not to install the
engines in vessels longer than 4.0 meters.
    (7) Describe any other instructions to make sure the installed
engine will operate according to design specifications in your
application for certification. For example, this may include specified
limits for catalyst systems, such as exhaust backpressure, catalyst
location, and temperature profiles during engine operation.
    (8) State: ``If you install the engine in a way that makes the
engine's emission control information label hard to read during normal
engine maintenance, you must place a duplicate label on the vessel, as
described in 40 CFR 1068.105.''.
    (c) You do not need installation instructions for engines you
install in your own vessels.

    (d) Provide instructions in writing or in an equivalent format. For
example, you may post instructions on a publicly available website for
downloading or printing. If you do not provide the instructions in
writing, explain in your application for certification how you will
ensure that each installer is informed of the installation
requirements.

Sec.  1045.135  How must I label and identify the engines I produce?

    The provisions of this section apply to engine manufacturers.
    (a) Assign each engine a unique identification number and
permanently affix, engrave, or stamp it on the engine in a legible way.
    (b) At the time of manufacture, affix a permanent and legible label
identifying each engine. The label must be--
    (1) Attached in one piece so it is not removable without being
destroyed or defaced. However, you may use two-piece labels for engines
below 19 kW if there is not enough space on the engine to apply a one-
piece label.
    (2) Secured to a part of the engine needed for normal operation and
not normally requiring replacement.
    (3) Durable and readable for the engine's entire life.
    (4) Written in English.
    (c) The label must--
    (1) Include the heading ``EMISSION CONTROL INFORMATION''.
    (2) Include your full corporate name and trademark. You may
identify another company and use its trademark instead of yours if you
comply with the provisions of Sec.  1045.640.
    (3) Include EPA's standardized designation for the engine family
(and subfamily, where applicable).
    (4) State the engine's displacement (in liters) and maximum engine
power; however, you may omit the displacement from the label if all the
engines in the engine family have the same per-cylinder displacement
and total displacement.
    (5) State the date of manufacture [MONTH and YEAR]; however, you
may omit this from the label if you stamp or engrave it on the engine.
    (6) State the FELs to which the engines are certified (in g/kW-hr)
if certification depends on the ABT provisions of subpart H of this
part.
    (7) Identify the emission control system. Use terms and
abbreviations consistent with SAE J1930 (incorporated by reference in
Sec.  1045.810). You may omit this information from the label if there
is not enough room for it and you put it in the owners manual instead.
    (8) List specifications and adjustments for engine tuneups;
however, you may omit this information from the label if there is not
enough room for it and you put it in the owners manual instead.
    (9) Identify the fuel type and any requirements for fuel and
lubricants; however, you may omit this information from the label if
there is not enough room for it and you put it in the owners manual
instead.
    (10) State: ``THIS ENGINE COMPLIES WITH U.S. EPA REGULATIONS FOR
[MODEL YEAR] SPARK-IGNITION MARINE ENGINES.''.
    (11) If your durability demonstration for sterndrive/inboard
engines is limited to fresh water, state: ``THIS ENGINE IS NOT INTENDED
FOR USE IN SALTWATER.''.
    (d) You may add information to the emission control information
label to identify other emission standards that the engine meets or
does not meet (such as California standards). You may also add other
information to ensure that the engine will be properly maintained and
used.
    (e) You may ask us to approve modified labeling requirements in
this part 1045 if you show that it is necessary or appropriate. We will
approve your request if your alternate label is consistent with the
requirements of this part.
    (f) If you obscure the engine label while installing the engine in
the vessel such that the label cannot be read during normal
maintenance, you must place a duplicate label on the vessel. If others
install your engine in their vessels in a way that obscures the engine
label, we require them to add a duplicate label on the vessel (see 40
CFR 1068.105); in that case, give them the number of duplicate labels
they request and keep the following records for at least five years:
    (1) Written documentation of the request from the vessel
manufacturer.
    (2) The number of duplicate labels you send for each engine family
and the date you sent them.

Sec.  1045.140  What is my engine's maximum engine power?

    (a) An engine configuration's maximum engine power is the maximum
brake power point on the nominal power curve for the engine
configuration, as defined in this section. Round the power value to the
nearest whole kilowatt.
    (b) The nominal power curve of an engine configuration is the
relationship between maximum available engine brake power and engine
speed for an engine, using the mapping procedures of 40 CFR part 1065,
based on the manufacturer's design and production specifications for
the engine. This information may also be expressed by a torque curve
that relates maximum available engine torque with engine speed.
    (c) The nominal power curve must be within the range of the actual
power curves of production engines considering normal production
variability. If after production begins it is determined that your
nominal power curve does not represent production engines, we may
require you to amend your application for certification under Sec.
1045.225.

Sec.  1045.145  Are there interim provisions that apply only for a
limited time?

    The provisions in this section apply instead of other provisions in
this part. This section describes when these interim provisions apply.
    (a) Small-volume engine manufacturers. Special provisions apply to
you for sterndrive/inboard engines if you are a small-volume engine
manufacturer subject to the requirements of this part. Contact us
before 2009 if you intend to use any of the following provisions:
    (1) You may delay complying with otherwise emission standards and
other requirements that would otherwise apply until the 2013 model year
for high-performance engines and until the 2011 model year for other
sterndrive/inboard engines. Add a permanent label to a readily visible
part of each engine exempted under this paragraph (a)(1). This label
must include at least the following items:
    (i) The label heading ``EMISSION CONTROL INFORMATION''.
    (ii) Your corporate name and trademark.
    (iii) Engine displacement (in liters), rated power, and model year
of the engine or whom to contact for further information.
    (iv) The following statement: ``THIS ENGINE IS EXEMPT UNDER 40 CFR
1045.145(a)(1) FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.''.
    (2) You may use the provisions of 40 CFR 1068.250 to further delay
compliance with emission standards; however, you must use a base engine
that has been certified if such an engine is available.
    (b) Early banking. You may generate emission credits for
sterndrive/inboard engines before the 2009 model year (or before the
2011 model year for small-volume engine manufacturers), as follows:
    (1) You must begin actual production of early-compliant engines by
September 1, 2008 (or before September

1, 2010 for small-volume engine manufacturers).
    (2) You may not generate emission credits under this paragraph (b)
with engines you produce after December 31, 2008 (or December 31, 2010
for small-volume engine manufacturers).
    (3) Early-compliant engines must be certified to the standards and
requirements for sterndrive/inboard engines under this part 1045, with
family emission limits at or below the emission standards in Sec.
1045.105.
    (4) You must calculate emission credits by comparing the engine's
family emission limits with assigned baseline levels of 16 g/kW-hr for
HC+NOX and 150 g/kW-hr for CO.
    (5) Calculate emission credits using a multiplier based on the
number of model years before the standards start to apply. The
multipliers are 1.25 for one year early, 1.5 for two years early, and
2.0 for three or more years early. For example, multiply your
calculated emission credits generated from compliant 2008 model year
engines by 1.25 or, if emission standards are delayed for your engines
until 2011 under paragraph (a)(1) of this section, multiply those
calculated emission credits by 2.0.
    (6) You may not use the provisions of this paragraph (b) to
generate emission credits for engines whose point of first retail sale
is in California.
    (7) HC+NOX or CO credits you generate under this
paragraph (b) may be banked for up to three model years after the model
year in which the emission standards start to apply.
    (c) Early compliance with evaporative emission standards. You may
fuel tanks that do not meet the otherwise applicable permeation
standards without violating the prohibition in 40 CFR 1068.101(a)(1) if
you earn evaporative allowances, as follows:
    (1) You may earn an evaporative allowance from one fuel tank
certified to EPA's evaporative emission standards by producing it
before EPA's evaporative emission standards start to apply. You may use
this evaporative allowance by selling one fuel tank that does not meet
the permeation emission standards that would otherwise apply. For
example, you can earn an evaporative allowance by selling a low-
permeation fuel tank for personal watercraft before the 2011 model
year, in which case you could sell a high-permeation fuel tank for a
personal watercraft in 2011. You must meet all the other requirements
related to evaporative emissions that apply.
    (2) You must add a label to exempted fuel tanks you produce under
this paragraph (c) with the following statement: ``EXEMPT FROM EMISSION
STANDARDS UNDER 40 CFR 1045.145(c)''.
    (3) Evaporative allowances you earn under this paragraph (c) from
portable fuel tanks may be used only for other portable fuel tanks.
Similarly, evaporative allowances from personal watercraft fuel tanks
may be used only for personal watercraft fuel tanks and evaporative
allowances from other installed fuel tanks may be used only for other
installed fuel tanks.
    (4) You may not use the allowances you generate under this
paragraph (c) for portable fuel tanks and personal watercraft fuel
tanks in 2014 or later model years. Similarly, you may not use the
allowances you generate under this paragraph (c) for other installed
fuel tanks in 2015 or later model years.
    (d) Useful life for evaporative emission standards. A useful life
period of two years applies for fuel tanks certified to meet the
permeation emission standards in Sec.  1045.110(b) in 2013 and earlier
model years. However, for fuel tanks with a family emission limit above
or below the otherwise applicable standard, calculate emission credits
under Sec.  1054.706 based on the useful life values specified in Sec.
1045.107.

Subpart C--Certifying Engine Families

Sec.  1045.201  What are the general requirements for obtaining a
certificate of conformity?

    Engine manufacturers must certify their engines with respect to the
exhaust emission standards in this part. Manufacturers of engines,
equipment, or fuel-system components may need to certify their products
with respect to evaporative emission standards as described in 40 CFR
1060.1 and 1060.601. The following general requirements apply for
obtaining a certificate of conformity:
    (a) You must send us a separate application for a certificate of
conformity for each engine family. A certificate of conformity is valid
starting with the indicated effective date, but it is not valid for any
production after December 31 of the model year for which it is issued.
No certificate will be issued after December 31 of the model year.
    (b) The application must contain all the information required by
this part and must not include false or incomplete statements or
information (see Sec.  1045.255).
    (c) We may ask you to include less information than we specify in
this subpart, as long as you maintain all the information required by
Sec.  1045.250.
    (d) You must use good engineering judgment for all decisions
related to your application (see 40 CFR 1068.5).
    (e) An authorized representative of your company must approve and
sign the application.
    (f) See Sec.  1045.255 for provisions describing how we will
process your application.
    (g) We may require you to deliver your test engines to a facility
we designate for our testing (see Sec.  1045.235(c)).

Sec.  1045.205  What must I include in my application?

    This section specifies the information that must be in your
application, unless we ask you to include less information under Sec.
1045.201(c). We may require you to provide additional information to
evaluate your application.
    (a) Describe the engine family's specifications and other basic
parameters of the engine's design and emission controls. List the fuel
type on which your engines are designed to operate (for example, all-
season gasoline). List each distinguishable engine configuration in the
engine family. For each engine configuration, list the maximum engine
power and the range of values for maximum engine power resulting from
production tolerances, as described in Sec.  1045.140.
    (b) Explain how the emission control systems operate. Describe in
detail all system components for controlling exhaust emissions,
including all auxiliary emission control devices (AECDs) and all fuel-
system components you will install on any production or test engine.
Identify the part number of each component you describe. For this
paragraph (b), treat as separate AECDs any devices that modulate or
activate differently from each other. Include sufficient detail to
allow us to evaluate whether the AECDs are consistent with the defeat
device prohibition of Sec.  1045.115.
    (c) For sterndrive/inboard engines, explain how the engine
diagnostic system works, describing especially the engine conditions
(with the corresponding diagnostic trouble codes) that cause the
malfunction-indicator light to go on. Propose what you consider to be
extreme conditions under which the diagnostic system should disregard
trouble codes, as described in Sec.  1045.110.
    (d) Describe the engines you selected for testing and the reasons
for selecting them.
    (e) Describe the test equipment and procedures that you used,
including any special or alternate test procedures you used.

    (f) Describe how you operated the emission-data engine before
testing, including the duty cycle and the number of engine operating
hours used to stabilize emission levels. Explain why you selected the
method of service accumulation. Describe any scheduled maintenance you
did.
    (g) List the specifications of the test fuel to show that it falls
within the required ranges we specify in 40 CFR part 1065.
    (h) Identify the engine family's useful life.
    (i) Include the maintenance and warranty instructions you will give
to the ultimate purchaser of each new engine (see Sec. Sec.  1045.120
and 1045.125).
    (j) Include the emission-related installation instructions you will
provide if someone else installs your engines in a vessel (see Sec.
1045.130).
    (k) Describe your emission control information label (see Sec.
1045.135).
    (l) Identify the emission standards or FELs to which you are
certifying engines in the engine family.
    (m) Identify the engine family's deterioration factors and describe
how you developed them (see Sec.  1045.245). Present any emission test
data you used for this.
    (n) State that you operated your emission-data engines as described
in the application (including the test procedures, test parameters, and
test fuels) to show you meet the requirements of this part.
    (o) Present emission data to show that you meet emission standards,
as follows:
    (1) Present emission data by mode for hydrocarbons (such as THC or
THCE, as applicable), NOX, and CO on an emission-data engine
to show your engines meet the duty-cycle emission standards we specify
in Sec.  1045.101. Show emission figures before and after applying
deterioration factors for each engine. If we specify more than one
grade of any fuel type (for example, low-temperature and all-season
gasoline), you need to submit test data only for one grade, unless the
regulations of this part specify otherwise for your engine.
    (2) Note that Sec. Sec.  1045.235 and 1045.245 allow you to submit
an application in certain cases without new emission data.
    (p) State that all the engines in the engine family comply with the
not-to-exceed emission standards we specify in subpart B of this part
for all normal operation and use when tested as specified in Sec.
1045.515. Describe any relevant testing, engineering analysis, or other
information in sufficient detail to support your statement.
    (q) Report all test results, including those from invalid tests,
whether or not they were conducted according to the test procedures of
subpart F of this part. If you measure CO2, report those
emission levels. We may ask you to send other information to confirm
that your tests were valid under the requirements of this part and 40
CFR parts 1060 and 1065.
    (r) Describe all adjustable operating parameters (see Sec.
1045.115(e)), including production tolerances. Include the following in
your description of each parameter:
    (1) The nominal or recommended setting.
    (2) The intended physically adjustable range.
    (3) The limits or stops used to establish adjustable ranges.
    (4) Information showing why the limits, stops, or other means of
inhibiting adjustment are effective in preventing adjustment of
parameters on in-use engines to settings outside your intended
physically adjustable ranges.
    (s) Provide the information to read, record, and interpret all the
information broadcast by an engine's onboard computers and electronic
control units. State that, upon request, you will give us any hardware,
software, or tools we would need to do this. If you broadcast a
surrogate parameter for torque values, you must provide us what we need
to convert these into torque units. You may reference any appropriate
publicly released standards that define conventions for these messages
and parameters. Format your information consistent with publicly
released standards.
    (t) Confirm that your emission-related installation instructions
specify how to ensure that sampling of exhaust emissions will be
possible after engines are installed in vessels and placed in service.
Show how to sample exhaust emissions in a way that prevents diluting
the exhaust sample with ambient air.
    (u) Unconditionally certify that all the engines in the engine
family comply with the requirements of this part, other referenced
parts of the CFR, and the Clean Air Act.
    (v) Include good-faith estimates of U.S.-directed production
volumes. Include a justification for the estimated production volumes
if they are substantially different than actual production volumes in
earlier years for similar models.
    (w) Include the information required by other subparts of this
part. For example, include the information required by Sec.  1045.725
if you participate in the ABT program.
    (x) Include other applicable information, such as information
specified in this part or 40 CFR part 1068 related to requests for
exemptions.
    (y) Name an agent for service located in the United States. Service
on this agent constitutes service on you or any of your officers or
employees for any action by EPA or otherwise by the United States
related to the requirements of this part.
    (z) For imported engines, identify the following:
    (1) The port(s) at which you will import your engines.
    (2) The names and addresses of the agents you have authorized to
import your engines.
    (3) The location of test facilities in the United States where you
can test your engines if we select them for testing under a selective
enforcement audit, as specified in 40 CFR part 1068, subpart E.

Sec.  1045.210  May I get preliminary approval before I complete my
application?

    If you send us information before you finish the application, we
will review it and make any appropriate determinations, especially for
questions related to engine family definitions, auxiliary emission
control devices, deterioration factors, testing for service
accumulation, maintenance, and compliance with not-to-exceed standards.
Decisions made under this section are considered to be preliminary
approval, subject to final review and approval. We will generally not
reverse a decision where we have given you preliminary approval, unless
we find new information supporting a different decision. If you request
preliminary approval related to the upcoming model year or the model
year after that, we will make best-efforts to make the appropriate
determinations as soon as practicable. We will generally not provide
preliminary approval related to a future model year more than two years
ahead of time.

Sec.  1045.220  How do I amend the maintenance instructions in my
application?

    You may amend your emission-related maintenance instructions after
you submit your application for certification, as long as the amended
instructions remain consistent with the provisions of Sec.  1045.125.
You must send the Designated Compliance Officer a written request to
amend your application for certification for an engine family if you
want to change the emission-related maintenance instructions in a way
that could affect emissions. In your request, describe the

proposed changes to the maintenance instructions. We will disapprove
your request if we determine that the amended instructions are
inconsistent with maintenance you performed on emission-data engines.
If operators follow the original maintenance instructions rather than
the newly specified maintenance, this does not allow you to disqualify
those engines from in-use testing or deny a warranty claim.
    (a) If you are changing the specified maintenance in a way that
could affect emissions, you may distribute the new maintenance
instructions to your customers only after we approve your request.
    (b) You need not request approval if you are making only minor
corrections (such as correcting typographical mistakes), clarifying
your maintenance instructions, or changing instructions for maintenance
unrelated to emission control.

Sec.  1045.225  How do I amend my application for certification to
include new or modified engines or change an FEL?

    Before we issue you a certificate of conformity, you may amend your
application to include new or modified engine configurations, subject
to the provisions of this section. After we have issued your
certificate of conformity, you may send us an amended application
requesting that we include new or modified engine configurations within
the scope of the certificate, subject to the provisions of this
section. You must amend your application if any changes occur with
respect to any information included in your application.
    (a) You must amend your application before you take any of the
following actions:
    (1) Add an engine configuration to an engine family. In this case,
the engine configuration added must be consistent with other engine
configurations in the engine family with respect to the criteria listed
in Sec.  1045.230.
    (2) Change an engine configuration already included in an engine
family in a way that may affect emissions, or change any of the
components you described in your application for certification. This
includes production and design changes that may affect emissions any
time during the engine's lifetime.
    (3) Modify an FEL for an engine family as described in paragraph
(f) of this section.
    (b) To amend your application for certification, send the
Designated Compliance Officer the following information:
    (1) Describe in detail the addition or change in the engine model
or configuration you intend to make.
    (2) Include engineering evaluations or data showing that the
amended engine family complies with all applicable requirements. You
may do this by showing that the original emission-data engine is still
appropriate for showing that the amended family complies with all
applicable requirements.
    (3) If the original emission-data engine for the engine family is
not appropriate to show compliance for the new or modified engine
configuration, include new test data showing that the new or modified
engine configuration meets the requirements of this part.
    (c) We may ask for more test data or engineering evaluations. You
must give us these within 30 days after we request them.
    (d) For engine families already covered by a certificate of
conformity, we will determine whether the existing certificate of
conformity covers your newly added or modified engine. You may ask for
a hearing if we deny your request (see Sec.  1045.820).
    (e) For engine families already covered by a certificate of
conformity, you may start producing the new or modified engine
configuration anytime after you send us your amended application and
before we make a decision under paragraph (d) of this section. However,
if we determine that the affected engines do not meet applicable
requirements, we will notify you to cease production of the engines and
may require you to recall the engines at no expense to the owner.
Choosing to produce engines under this paragraph (e) is deemed to be
consent to recall all engines that we determine do not meet applicable
emission standards or other requirements and to remedy the
nonconformity at no expense to the owner. If you do not provide
information required under paragraph (c) of this section within 30
days, you must stop producing the new or modified engines.
    (f) You may ask us to approve a change to your FEL in certain cases
after the start of production. The changed FEL may not apply to engines
you have already introduced into U.S. commerce, except as described in
this paragraph (f). If we approve a changed FEL after the start of
production, you must include the new FEL on the emission control
information label for all engines produced after the change. You may
ask us to approve a change to your FEL in the following cases:
    (1) You may ask to raise your FEL for your engine family at any
time. In your request, you must show that you will still be able to
meet the emission standards as specified in subparts B and H of this
part. If you amend your application by submitting new test data to
include a newly added or modified engine, as described in paragraph
(b)(3) of this section, use the appropriate FELs with corresponding
production volumes to calculate your production-weighted average FEL
for the model year, as described in subpart H of this part. If you
amend your application without submitting new test data, you must use
the higher FEL for the entire family to calculate your production-
weighted average FEL under subpart H of this part.
    (2) You may ask to lower the FEL for your engine family only if you
have test data from production engines showing that emissions are below
the proposed lower FEL. The lower FEL applies only to engines you
produce after we approve the new FEL. Use the appropriate FELs with
corresponding production volumes to calculate your production-weighted
average FEL for the model year, as described in subpart H of this part.

Sec.  1045.230  How do I select engine families?

    (a) For purposes of certification, divide your product line into
families of engines that are expected to have similar emission
characteristics throughout the useful life as described in this
section. Your engine family is limited to a single model year.
    (b) Group engines in the same engine family if they are the same in
all the following aspects:
    (1) The combustion cycle and fuel.
    (2) The cooling system (for example, raw-water vs. separate-circuit
cooling).
    (3) Method of air aspiration (for example, turbocharged vs.
naturally aspirated).
    (4) The number, location, volume, and composition of catalytic
converters.
    (5) The number, arrangement, and approximate bore diameter of
cylinders.
    (6) Method of control for engine operation, other than governing
(i.e., mechanical or electronic).
    (7) The numerical level of the emission standards that apply to the
engine.
    (c) You may subdivide a group of engines that is identical under
paragraph (b) of this section into different engine families if you
show the expected emission characteristics are different during the
useful life.
    (d) You may group engines that are not identical with respect to
the things listed in paragraph (b) of this section in the same engine
family, as follows:
    (1) In unusual circumstances, you may group such engines in the
same

engine family if you show that their emission characteristics during
the useful life will be similar.
    (2) If you are a small-volume engine manufacturer, you may group
all your high-performance engines into a single engine family.
    (3) The provisions of this paragraph (e) do not exempt any engines
from meeting all the emission standards and requirements in subpart B
of this part.

Sec.  1045.235  What emission testing must I perform for my application
for a certificate of conformity?

    This section describes the emission testing you must perform to
show compliance with the emission standards in Sec.  1045.101(a). See
Sec.  1045.205(p) regarding emission testing related to the not-to-
exceed standards. See Sec. Sec.  1045.240 and 1045.245 and 40 CFR part
1065, subpart E, regarding service accumulation before emission
testing.
    (a) Select an emission-data engine from each engine family for
testing as described in 40 CFR 1065.401. Select the engine with a
configuration that is most likely to exceed the exhaust emission
standards, using good engineering judgment. Consider the emission
levels of all exhaust constituents over the full useful life of the
engine when operated in a vessel.
    (b) Test your emission-data engines using the procedures and
equipment specified in subpart F of this part.
    (c) We may measure emissions from any of your test engines or other
engines from the engine family, as follows:
    (1) We may decide to do the testing at your plant or any other
facility. If we do this, you must deliver the test engine to a test
facility we designate. The test engine you provide must include
appropriate manifolds, aftertreatment devices, electronic control
units, and other emission-related components not normally attached
directly to the engine block. If we do the testing at your plant, you
must schedule it as soon as possible and make available the
instruments, personnel, and equipment we need.
    (2) If we measure emissions on one of your test engines, the
results of that testing become the official emission results for the
engine. Unless we later invalidate these data, we may decide not to
consider your data in determining if your engine family meets
applicable requirements.
    (3) We may set the adjustable parameters of your emission-data
engine to any point within the physically adjustable ranges (see Sec.
1045.115(e)).
    (4) We may calibrate your emission-data engine within normal
production tolerances for anything we do not consider an adjustable
parameter.
    (d) You may ask to use emission data from a previous model year
instead of doing new tests, but only if all the following are true:
    (1) The engine family from the previous model year differs from the
current engine family only with respect to model year or other
characteristics unrelated to emissions.
    (2) The emission-data engine from the previous model year remains
the appropriate emission-data engine under paragraph (b) of this
section.
    (3) The data show that the emission-data engine would meet all the
requirements that apply to the engine family covered by the application
for certification. For engines originally tested under the provisions
of 40 CFR part 91, you may consider those test procedures to be
equivalent to the procedures we specify in subpart F of this part.
    (e) We may require you to test a second engine of the same or
different configuration in addition to the engine tested under
paragraph (b) of this section.
    (f) If you use an alternate test procedure under 40 CFR 1065.10 and
later testing shows that such testing does not produce results that are
equivalent to the procedures specified in subpart F of this part, we
may reject data you generated using the alternate procedure.

Sec.  1045.240  How do I demonstrate that my engine family complies
with exhaust emission standards?

    (a) For purposes of certification, your engine family is considered
in compliance with the emission standards in Sec.  1045.103 or Sec.
1045.105 if all emission-data engines representing that family have
test results showing deteriorated emission levels at or below these
standards. Note that your FELs are considered to be the applicable
emission standards with which you must comply if you participate in the
ABT program in subpart H of this part.
    (b) Your engine family is deemed not to comply if any emission-data
engine representing that family has test results showing a deteriorated
emission level above an applicable emission standard from Sec.
1045.101 for any pollutant.
    (c) Determine a deterioration factor to compare emission levels
from the emission-data engine with the applicable emission standards.
Section 1045.245 specifies how to test engines to develop deterioration
factors that represent the expected deterioration in emissions over
your engines' full useful life. Your deterioration factors must take
into account any available data from in-use testing with similar
engines. Small-volume engine manufacturers may use assigned
deterioration factors that we establish. Apply deterioration factors as
follows:
    (1) Additive deterioration factor for exhaust emissions. For
engines that do not use aftertreatment technology, use an additive
deterioration factor for exhaust emissions. An additive deterioration
factor is the difference between exhaust emissions at the end of useful
life and exhaust emissions at the low-hour test point. Adjust the
official emission results for each tested engine at the selected test
point by adding the factor to the measured emissions. If the
deterioration factor is less than zero, use zero. Additive
deterioration factors must be specified to one more decimal place than
the emission standard.
    (2) Multiplicative deterioration factor for exhaust emissions. For
engines that use aftertreatment technology, such as catalytic
converters, use a multiplicative deterioration factor for exhaust
emissions. A multiplicative deterioration factor is the ratio of
exhaust emissions at the end of useful life to exhaust emissions at the
low-hour test point. Adjust the official emission results for each
tested engine at the selected test point by multiplying the measured
emissions by the deterioration factor. If the deterioration factor is
less than one, use one. Multiplicative deterioration factors must be
specified to one more significant figure than the emission standard.
    (d) Adjust the official emission results for each tested engine at
the selected test point by multiplying the measured emissions by the
deterioration factor, then rounding the adjusted figure to the same
number of decimal places as the emission standard. Compare the rounded
emission levels to the emission standard for each emission-data engine.
In the case of HC+NOX standards, add the emission results
and apply the deterioration factor to the sum of the pollutants before
rounding. However, if your deterioration factors are based on emission
measurements that do not cover the vehicle's full useful life, apply