the deterioration factor to each pollutant and then add the results
before rounding.
    (e) Small-volume engine manufacturers may establish emission levels
for certification without testing, as follows:
    (1) For high-performance engines, you may use a family emission
limit of 30.0 g/kW-hr for HC+NOX emissions and 350 g/kW-hr
for CO emissions.
    (2) For other four-stroke sterndrive/inboard engines, you may use a
family emission limit of 22.0 g/kW-hr for

HC+NOX emissions and 150 g/kW-hr for CO emissions.
    (3) Note that you must use emission credits under the provisions of
subpart H of this part to show that you meet applicable requirements if
you use family emission limits as specified in this paragraph (e).
Also, if you use these family emission limits, you must use them for
both HC+NOX and CO emissions.

Sec.  1045.245  How do I determine deterioration factors from exhaust
durability testing?

    Establish deterioration factors to determine whether your engines
will meet the exhaust emission standards for each pollutant throughout
the useful life, as described in subpart B of this part and Sec.
1045.240. This section describes how to determine deterioration
factors, either with pre-existing test data or with new emission
measurements.
    (a) You may ask us to approve deterioration factors for an engine
family based on emission measurements from similar engines if you have
already given us these data for certifying the other engines in the
same or earlier model years. Use good engineering judgment to decide
whether the two engines are similar.
    (b) If you are unable to determine deterioration factors for an
engine family under paragraph (a) of this section, select engines,
subsystems, or components for testing. Determine deterioration factors
based on service accumulation and related testing. Include
consideration of wear and other causes of deterioration expected under
typical consumer use. Determine deterioration factors as follows:
    (1) You must measure emissions from the emission-data engine at a
low-hour test point and the end of the useful life. You may also test
at evenly spaced intermediate points. Collect emission data using
measurements to one more decimal place than the emission standard.
    (2) Operate the engine over a representative duty cycle for a
period at least as long as the useful life (in hours). You may operate
the engine continuously. You may also use an engine installed in a
vessel to accumulate service hours instead of running the engine only
in the laboratory.
    (3) You may perform maintenance on emission-data engines as
described in Sec.  1045.125 and 40 CFR part 1065, subpart E.
    (4) If you measure emissions at only two points to calculate your
deterioration factor, base your calculations on a linear relationship
connecting these two data points for each pollutant. If you measure
emissions at three or more points, use a linear least-squares fit of
your test data for each pollutant to calculate your deterioration
factor.
    (5) If you test more than one engine to establish deterioration
factors, average the deterioration factors from all the engines before
rounding.
    (6) Use good engineering judgment for all aspects of the effort to
establish deterioration factors under this paragraph (b).
    (7) You may use other testing methods to determine deterioration
factors, consistent with good engineering judgment, as long as we
approve those methods in advance.
    (c) Include the following information in your application for
certification:
    (1) If you use test data from a different engine family, explain
why this is appropriate and include all the emission measurements on
which you base the deterioration factor.
    (2) If you do testing to determine deterioration factors, describe
the form and extent of service accumulation, including the method you
use to accumulate hours.

Sec.  1045.250  What records must I keep and what reports must I send
to EPA?

    (a) If you produce engines under any provisions of this part that
are related to production volumes, send the Designated Compliance
Officer a report within 30 days after the end of the model year
describing the total number of engines you produced in each engine
family. For example, if you use special provisions intended for small-
volume engine manufacturers, report your production volumes to show
that you do not exceed the applicable limits.
    (b) Organize and maintain the following records:
    (1) A copy of all applications and any summary information you send
us.
    (2) Any of the information we specify in Sec.  1045.205 that you
were not required to include in your application.
    (3) A detailed history of each emission-data engine. For each
engine, describe all of the following:
    (i) The emission-data engine's construction, including its origin
and buildup, steps you took to ensure that it represents production
engines, any components you built specially for it, and all the
components you include in your application for certification.
    (ii) How you accumulated engine operating hours (service
accumulation), including the dates and the number of hours accumulated.
    (iii) All maintenance, including modifications, parts changes, and
other service, and the dates and reasons for the maintenance.
    (iv) All your emission tests, including documentation on routine
and standard tests, as specified in part 40 CFR part 1065, and the date
and purpose of each test.
    (v) All tests to diagnose engine or emission control performance,
giving the date and time of each and the reasons for the test.
    (vi) Any other significant events.
    (4) Production figures for each engine family divided by assembly
plant.
    (5) Keep a list of engine identification numbers for all the
engines you produce under each certificate of conformity.
    (c) Keep data from routine emission tests (such as test cell
temperatures and relative humidity readings) for one year after we
issue the associated certificate of conformity. Keep all other
information specified in paragraph (a) of this section for eight years
after we issue your certificate.
    (d) Store these records in any format and on any media, as long as
you can promptly send us organized, written records in English if we
ask for them. You must keep these records readily available. We may
review them at any time.
    (e) Send us copies of any engine maintenance instructions or
explanations if we ask for them.

Sec.  1045.255  What decisions may EPA make regarding my certificate of
conformity?

    (a) If we determine your application is complete and shows that the
engine family meets all the requirements of this part and the Act, we
will issue a certificate of conformity for your engine family for that
model year. We may make the approval subject to additional conditions.
    (b) We may deny your application for certification if we determine
that your engine family fails to comply with emission standards or
other requirements of this part or the Act. Our decision may be based
on a review of all information available to us. If we deny your
application, we will explain why in writing.
    (c) In addition, we may deny your application or suspend or revoke
your certificate if you do any of the following:
    (1) Refuse to comply with any testing or reporting requirements.
    (2) Submit false or incomplete information (paragraph (e) of this
section applies if this is fraudulent).
    (3) Render inaccurate any test data.
    (4) Deny us from completing authorized activities (see 40 CFR
1068.20). This includes a failure to provide reasonable assistance.

    (5) Produce engines for importation into the United States at a
location where local law prohibits us from carrying out authorized
activities.
    (6) Fail to supply requested information or amend your application
to include all engines being produced.
    (7) Take any action that otherwise circumvents the intent of the
Act or this part.
    (d) We may void your certificate if you do not keep the records we
require or do not give us information as required under this part or
the Act.
    (e) We may void your certificate if we find that you intentionally
submitted false or incomplete information.
    (f) If we deny your application or suspend, revoke, or void your
certificate, you may ask for a hearing (see Sec.  1045.820).

Subpart D--Testing Production-line Engines

Sec.  1045.301  When must I test my production-line engines?

    (a) If you produce engines that are subject to the requirements of
this part, you must test them as described in this subpart, except as
follows:
    (1) Small-volume engine manufacturers may omit testing under this
subpart.
    (2) We may exempt engine families with a projected U.S.-directed
production volume below 150 units from routine testing under this
subpart. Request this exemption in the application for certification
and include your basis for projecting a production volume below 150
units. You must promptly notify us if your actual production exceeds
150 units during the model year. If you exceed the production limit or
if there is evidence of a nonconformity, we may require you to test
production-line engines under this subpart, or under 40 CFR part 1068,
subpart E, even if we have approved an exemption under this paragraph
(a)(2).
    (b) We may suspend or revoke your certificate of conformity for
certain engine families if your production-line engines do not meet the
requirements of this part or you do not fulfill your obligations under
this subpart (see Sec. Sec.  1045.325 and 1045.340).
    (c) Other regulatory provisions authorize us to suspend, revoke, or
void your certificate of conformity, or order recalls for engine
families without regard to whether they have passed these production-
line testing requirements. The requirements of this subpart do not
affect our ability to do selective enforcement audits, as described in
40 CFR part 1068. Individual engines in families that pass these
production-line testing requirements must also conform to all
applicable regulations of this part and 40 CFR part 1068.
    (d) You may ask to use an alternate program for testing production-
line engines. In your request, you must show us that the alternate
program gives equal assurance that your products meet the requirements
of this part. We may waive some or all of this subpart's requirements
if we approve your alternate program.
    (e) If you certify an engine family with carryover emission data,
as described in Sec.  1045.235(c), and these equivalent engine families
consistently pass the production-line testing requirements over the
preceding two-year period, you may ask for a reduced testing rate for
further production-line testing for that family. The minimum testing
rate is one engine per engine family. If we reduce your testing rate,
we may limit our approval to any number of model years. In determining
whether to approve your request, we may consider the number of engines
that have failed the emission tests.
    (f) We may ask you to make a reasonable number of production-line
engines available for a reasonable time so we can test or inspect them
for compliance with the requirements of this part. See 40 CFR 1068.27.

Sec.  1045.305  How must I prepare and test my production-line engines?

    This section describes how to prepare and test production-line
engines. You must assemble the test engine in a way that represents the
assembly procedures for other engines in the engine family. You must
ask us to approve any deviations from your normal assembly procedures
for other production engines in the engine family.
    (a) Test procedures. Test your production-line engines using the
applicable testing procedures in subpart F of this part to show you
meet the duty-cycle emission standards in subpart B of this part. The
not-to-exceed standards apply for this testing, but you need not do
additional testing to show that production-line engines meet the not-
to-exceed standards.
    (b) Modifying a test engine. Once an engine is selected for testing
(see Sec.  1045.310), you may adjust, repair, prepare, or modify it or
check its emissions only if one of the following is true:
    (1) You document the need for doing so in your procedures for
assembling and inspecting all your production engines and make the
action routine for all the engines in the engine family.
    (2) This subpart otherwise specifically allows your action.
    (3) We approve your action in advance.
    (c) Engine malfunction. If an engine malfunction prevents further
emission testing, ask us to approve your decision to either repair the
engine or delete it from the test sequence.
    (d) Setting adjustable parameters. Before any test, we may require
you to adjust any adjustable parameter to any setting within its
physically adjustable range.
    (1) We may require you to adjust idle speed outside the physically
adjustable range as needed, but only until the engine has stabilized
emission levels (see paragraph (e) of this section). We may ask you for
information needed to establish an alternate minimum idle speed.
    (2) We may specify adjustments within the physically adjustable
range by considering their effect on emission levels, as well as how
likely it is someone will make such an adjustment with in-use engines.
    (e) Stabilizing emission levels. You may operate the engine to
stabilize the emission levels before you test production-line engines.
Using good engineering judgment, operate your engines in a way that
represents the way production engines will be used. You may operate
each engine for no more than the greater of two periods:
    (1) 12 hours.
    (2) The number of hours you operated your emission-data engine for
certifying the engine family (see 40 CFR part 1065, subpart E, or the
applicable regulations governing how you should prepare your test
engine).
    (f) Damage during shipment. If shipping an engine to a remote
facility for production-line testing makes necessary an adjustment or
repair, you must wait until after the initial emission test to do this
work. We may waive this requirement if the test would be impossible or
unsafe, or if it would permanently damage the engine. Report to us in
your written report under Sec.  1045.345 all adjustments or repairs you
make on test engines before each test.
    (g) Retesting after invalid tests. You may retest an engine if you
determine an emission test is invalid under subpart F of this part.
Explain in your written report reasons for invalidating any test and
the emission results from all tests. If you retest an engine, you may
ask us to substitute results of the new tests for the original ones.
You must ask us within ten days of testing. We will generally answer
within ten days after we receive your information.

Sec.  1045.310  How must I select engines for production-line testing?

    (a) Test engines from each engine family as described in this
section based on test periods, as follows:
    (1) For engine families with projected U.S.-directed production
volume of at least 1,600, the test periods are consecutive quarters (3
months). However, if your annual production period is less than 12
months long, you may take the following alternative approach to define
quarterly test periods:
    (i) If your annual production period is 120 days or less, the whole
model year constitutes a single test period.
    (ii) If your annual production period is 121 to 210 days, divide
the annual production period evenly into two test periods.
    (iii) If your annual production period is 211 to 300 days, divide
the annual production period evenly into three test periods.
    (iv) If your annual production period is 301 days or longer, divide
the annual production period evenly into four test periods.
    (2) For engine families with projected U.S.-directed production
volume below 1,600, the whole model year constitutes a single test
period.
    (b) Early in each test period, randomly select and test an engine
from the end of the assembly line for each engine family.
    (1) In the first test period for newly certified engines, randomly
select and test one more engine. Then, calculate the required sample
size for the model year as described in paragraph (c) of this section.
    (2) In later test periods of the same model year, combine the new
test result with all previous testing in the model year. Then,
calculate the required sample size for the model year as described in
paragraph (c) of this section.
    (3) In the first test period for engine families relying on
previously submitted test data, combine the new test result with the
last test result from the previous model year. Then, calculate the
required sample size for the model year as described in paragraph (c)
of this section. Use the last test result from the previous model year
only for this first calculation. For all subsequent calculations, use
only results from the current model year.
    (c) Calculate the required sample size for each engine family.
Separately calculate this figure for HC+NOX and CO. The
required sample size is the greater of these calculated values. Use the
following equation:

N = [(t95 x [sigma])/(x - STD)]2 + 1

Where:

N = Required sample size for the model year.
t95 = 95% confidence coefficient, which depends on the
number of tests completed, n, as specified in the table in paragraph
(c)(1) of this section. It defines 95% confidence intervals for a
one-tail distribution.
x = Mean of emission test results of the sample.
STD = Emission standard (or family emission limit, if applicable).
[sigma] = Test sample standard deviation (see paragraph (c)(2) of
this section).

    (1) Determine the 95% confidence coefficient, t95, from
the following table:

----------------------------------------------------------------------------------------------------------------
        n                 t95                 n                 t95                 n                 t95
----------------------------------------------------------------------------------------------------------------
              2               6.31                 12               1.80                 22               1.72
              3               2.92                 13               1.78                 23               1.72
              4               2.35                 14               1.77                 24               1.71
              5               2.13                 15               1.76                 25               1.71
              6               2.02                 16               1.75                 26               1.71
              7               1.94                 17               1.75                 27               1.71
              8               1.90                 18               1.74                 28               1.70
              9               1.86                 19               1.73                 29               1.70
             10               1.83                 20               1.73                30+               1.70
             11               1.81                 21               1.72    .................  .................
----------------------------------------------------------------------------------------------------------------

    (2) Calculate the standard deviation, [sigma], for the test sample
using the following formula:

[sigma] = [[Sigma](Xi - x)2/(n -
1)]1/2

Where:

Xi = Emission test result for an individual engine.
n = The number of tests completed in an engine family.

    (d) Use final deteriorated test results to calculate the variables
in the equations in paragraph (c) of this section (see Sec.
1045.315(a)).
    (e) After each new test, recalculate the required sample size using
the updated mean values, standard deviations, and the appropriate 95-
percent confidence coefficient.
    (f) Distribute the remaining engine tests evenly throughout the
rest of the year. You may need to adjust your schedule for selecting
engines if the required sample size changes. If your scheduled
quarterly testing for the remainder of the model year is sufficient to
meet the calculated sample size, you may wait until the next quarter to
do additional testing. Continue to randomly select engines from each
engine family.
    (g) Continue testing until one of the following things happens:
    (1) After completing the minimum number of tests required in
paragraph (b) of this section, the number of tests completed in an
engine family, n, is greater than the required sample size, N, and the
sample mean, x, is less than or equal to the emission standard. For
example, if N = 5.1 after the fifth test, the sample-size calculation
does not allow you to stop testing.
    (2) The engine family does not comply according to Sec.  1045.315.
    (3) You test 30 engines from the engine family.
    (4) You test one percent of your projected annual U.S.-directed
production volume for the engine family, rounded to the nearest whole
number. Do not count an engine under this paragraph (g)(4) if it fails
to meet an applicable emission standard.
    (5) You choose to declare that the engine family does not comply
with the requirements of this subpart.
    (h) If the sample-size calculation allows you to stop testing for
one pollutant but not another, you must continue measuring emission
levels of all pollutants for any additional tests required under this
section. However, you need not continue making the calculations
specified in this section for the pollutant for which testing is not
required. This paragraph (h) does not affect the number of tests
required under this section or the remedial steps required under Sec.
1045.320.
    (i) You may elect to test more randomly chosen engines than we
require under this section. Include these engines in the sample-size
calculations.

Sec.  1045.315  How do I know when my engine family fails the
production-line testing requirements?

    This section describes the pass-fail criteria for the production-
line testing requirements. We apply these criteria on an engine-family
basis. See Sec.  1045.320 for the requirements that apply to individual
engines that fail a production-line test.
    (a) Calculate your test results as follows:
    (1) Initial and final test results. Calculate and round the test
results for each engine. If you do several tests on an engine,
calculate the initial test results, then add them together and divide
by the number of tests and round for the final test results on that
engine.
    (2) Final deteriorated test results. Apply the deterioration factor
for the engine family to the final test results (see Sec.
1045.240(c)).
    (3) Round deteriorated test results. Round the results to the
number of decimal places in the emission standard expressed to one more
decimal place.
    (b) Construct the following CumSum Equation for each engine family
for HC+NOX and CO emissions:

Ci = Max [0 or Ci-1 + Xi - (STD + 0.25
x [sigma])]

Where:

Ci = The current CumSum statistic.
Ci-1 = The previous CumSum statistic. For the first test,
the CumSum statistic is 0 (i.e. C1 = 0).
Xi = The current emission test result for an individual
engine.
STD = Emission standard (or family emission limit, if applicable).

    (c) Use final deteriorated test results to calculate the variables
in the equation in paragraph (b) of this section (see Sec.
1045.315(a)).
    (d) After each new test, recalculate the CumSum statistic.
    (e) If you test more than the required number of engines, include
the results from these additional tests in the CumSum Equation.
    (f) After each test, compare the current CumSum statistic,
Ci, to the recalculated Action Limit, H, defined as H = 5.0
x [sigma].
    (g) If the CumSum statistic exceeds the Action Limit in two
consecutive tests, the engine family fails the production-line testing
requirements of this subpart. Tell us within ten working days if this
happens. You may request to amend the application for certification to
raise the FEL of the entire engine family as described in Sec.
1045.225(f).
    (h) If you amend the application for certification for an engine
family under Sec.  1045.225, do not change any previous calculations of
sample size or CumSum statistics for the model year.

Sec.  1045.320  What happens if one of my production-line engines fails
to meet emission standards?

    (a) If you have a production-line engine with final deteriorated
test results exceeding one or more emission standards (see Sec.
1045.315(a)), the certificate of conformity is automatically suspended
for that failing engine. You must take the following actions before
your certificate of conformity can cover that engine:
    (1) Correct the problem and retest the engine to show it complies
with all emission standards.
    (2) Include in your written report a description of the test
results and the remedy for each engine (see Sec.  1045.345).
    (b) You may request to amend the application for certification to
raise the FEL of the entire engine family at this point (see Sec.
1045.225).

Sec.  1045.325  What happens if an engine family fails the production-
line testing requirements?

    (a) We may suspend your certificate of conformity for an engine
family if it fails under Sec.  1045.315. The suspension may apply to
all facilities producing engines from an engine family, even if you
find noncompliant engines only at one facility.
    (b) We will tell you in writing if we suspend your certificate in
whole or in part. We will not suspend a certificate until at least 15
days after the engine family fails. The suspension is effective when
you receive our notice.
    (c) Up to 15 days after we suspend the certificate for an engine
family, you may ask for a hearing (see Sec.  1045.820). If we agree
before a hearing occurs that we used erroneous information in deciding
to suspend the certificate, we will reinstate the certificate.
    (d) Section 1045.335 specifies steps you must take to remedy the
cause of the engine family's production-line failure. All the engines
you have produced since the end of the last test period are presumed
noncompliant and should be addressed in your proposed remedy. We may
require you to apply the remedy to engines produced earlier if we
determine that the cause of the failure is likely to have affected the
earlier engines.
    (e) You may request to amend the application for certification to
raise the FEL of the engine family before or after we suspend your
certificate if you meet the requirements of Sec.  1045.225(f). We will
approve your request if the failure is not caused by a defect and it is
clear that you used good engineering judgment in establishing the
original FEL.

Sec.  1045.330  May I sell engines from an engine family with a
suspended certificate of conformity?

    You may sell engines that you produce after we suspend the engine
family's certificate of conformity under Sec.  1045.315 only if one of
the following occurs:
    (a) You test each engine you produce and show it complies with
emission standards that apply.
    (b) We conditionally reinstate the certificate for the engine
family. We may do so if you agree to recall all the affected engines
and remedy any noncompliance at no expense to the owner if later
testing shows that the engine family still does not comply.

Sec.  1045.335  How do I ask EPA to reinstate my suspended certificate?

    (a) Send us a written report asking us to reinstate your suspended
certificate. In your report, identify the reason for noncompliance,
propose a remedy for the engine family, and commit to a date for
carrying it out. In your proposed remedy include any quality control
measures you propose to keep the problem from happening again.
    (b) Give us data from production-line testing that shows the
remedied engine family complies with all the emission standards that
apply.

Sec.  1045.340  When may EPA revoke my certificate under this subpart
and how may I sell these engines again?

    (a) We may revoke your certificate for an engine family in the
following cases:
    (1) You do not meet the reporting requirements.
    (2) Your engine family fails to comply with the requirements of
this subpart and your proposed remedy to address a suspended
certificate under Sec.  1045.325 is inadequate to solve the problem or
requires you to change the engine's design or emission control system.
    (b) To sell engines from an engine family with a revoked
certificate of conformity, you must modify the engine family and then
show it complies with the requirements of this part.
    (1) If we determine your proposed design change may not control
emissions for the engine's full useful life, we will tell you within
five working days after receiving your report. In this case we will
decide whether production-line testing will be enough for us to
evaluate the change or whether you need to do more testing.
    (2) Unless we require more testing, you may show compliance by
testing production-line engines as described in this subpart.

    (3) We will issue a new or updated certificate of conformity when
you have met these requirements.

Sec.  1045.345  What production-line testing records must I send to
EPA?

    Do all the following things unless we ask you to send us less
information:
    (a) Within 30 calendar days of the end of each test period, send us
a report with the following information:
    (1) Describe any facility used to test production-line engines and
state its location.
    (2) State the total U.S.-directed production volume and number of
tests for each engine family.
    (3) Describe how you randomly selected engines.
    (4) Describe each test engine, including the engine family's
identification and the engine's model year, build date, model number,
identification number, and number of hours of operation before testing.
    (5) Identify how you accumulated hours of operation on the engines
and describe the procedure and schedule you used.
    (6) Provide the test number; the date, time and duration of
testing; test procedure; initial test results before and after
rounding; final test results; and final deteriorated test results for
all tests. Provide the emission results for all measured pollutants.
Include information for both valid and invalid tests and the reason for
any invalidation.
    (7) Describe completely and justify any nonroutine adjustment,
modification, repair, preparation, maintenance, or test for the test
engine if you did not report it separately under this subpart. Include
the results of any emission measurements, regardless of the procedure
or type of engine.
    (8) Provide the CumSum analysis required in Sec.  1045.315 and the
sample-size calculation required in Sec.  1045.310 for each engine
family.
    (9) Report on each failed engine as described in Sec.  1045.320.
    (10) State the date the test period ended for each engine family.
    (b) We may ask you to add information to your written report so we
can determine whether your new engines conform with the requirements of
this subpart.
    (c) An authorized representative of your company must sign the
following statement:
    We submit this report under sections 208 and 213 of the Clean Air
Act. Our production-line testing conformed completely with the
requirements of 40 CFR part 1045. We have not changed production
processes or quality-control procedures for test engines in a way that
might affect emission controls. All the information in this report is
true and accurate to the best of my knowledge. I know of the penalties
for violating the Clean Air Act and the regulations. (Authorized
Company Representative)
    (d) Send electronic reports of production-line testing to the
Designated Compliance Officer using an approved information format. If
you want to use a different format, send us a written request with
justification for a waiver.
    (e) We will send copies of your reports to anyone from the public
who asks for them. Section 1045.815 describes how we treat information
you consider confidential.

Sec.  1045.350  What records must I keep?

    (a) Organize and maintain your records as described in this
section. We may review your records at any time.
    (b) Keep paper records of your production-line testing for eight
years after you complete all the testing required for an engine family
in a model year. You may use any additional storage formats or media if
you like.
    (c) Keep a copy of the written reports described in Sec.  1045.345.
    (d) Keep the following additional records:
    (1) A description of all test equipment for each test cell that you
can use to test production-line engines.
    (2) The names of supervisors involved in each test.
    (3) The name of anyone who authorizes adjusting, repairing,
preparing, or modifying a test engine and the names of all supervisors
who oversee this work.
    (4) If you shipped the engine for testing, the date you shipped it,
the associated storage or port facility, and the date the engine
arrived at the testing facility.
    (5) Any records related to your production-line tests that are not
in the written report.
    (6) A brief description of any significant events during testing
not otherwise described in the written report or in this section.
    (7) Any information specified in Sec.  1045.345 that you do not
include in your written reports.
    (e) If we ask, you must give us a more detailed description of
projected or actual production figures for an engine family. We may ask
you to divide your production figures by maximum engine power,
displacement, fuel type, or assembly plant (if you produce engines at
more than one plant).
    (f) Keep a list of engine identification numbers for all the
engines you produce under each certificate of conformity. Give us this
list within 30 days if we ask for it.
    (g) We may ask you to keep or send other information necessary to
implement this subpart.

Subpart E--In-use Testing

Sec.  1045.401  What testing requirements apply to my engines that have
gone into service?

    (a) We may perform in-use testing of any engine subject to the
standards of this part. If you produce outboard or personal watercraft
engines that are subject to the requirements of this part, you must
test them as described in this subpart. The testing requirements
described in this subpart do not apply to sterndrive/inboard engines.
This generally involves testing engines in the field or removing them
for measurement in a laboratory.
    (b) We may approve an alternate plan for showing that in-use
engines comply with the requirements of this part if one of the
following is true:
    (1) You produce 200 or fewer engines per year in the selected
engine family.
    (2) You identify a unique aspect of your engine applications that
keeps you from doing the required in-use testing.
    (c) We may void your certificate of conformity for an engine family
if you do not meet your obligations under this part.
    (d) Independent of your responsibility to test in-use engines, we
may choose at any time to do our own testing of your in-use engines.
    (e) If in-use testing shows that engines fail to meet emission
standards or other requirements of this part, we may pursue a recall or
other remedy as allowed by the Act (see Sec.  1045.415).

Sec.  1045.405  How does this program work?

    (a) You must test in-use engines for exhaust emissions from the
families we select. We may select up to 25 percent of your engine
families in any model year or one engine family if you have three or
fewer families. When we select an engine family for testing, we may
specify that you preferentially test engines based on the type of
vessel. In addition, we may identify specific modes of operation or
sampling times. You may choose to test additional engine families that
we do not select.
    (b) The provisions of this paragraph (b) describe how test families
are selected, depending on when we receive the application for
certification.
    (1) If we receive the application by December 31 of a given
calendar year for the following model year (for example, by December
31, 2009 for model year

2010), we would expect to select engine families for testing by
February 28 of the model year. If we have not completed the selection
of engine families by February 28, you may select your own engine
families for in-use testing. In this case, you must make your
selections and notify us which engine families you have selected by
March 31. You should consider the following factors in selecting engine
families, in priority order:
    (i) Select an engine family that has not recently been tested in an
in-use testing regimen (and passed) under the provisions of this
subpart. This should generally involve engine families that have not
been selected in the previous two model years. If design changes have
required new testing for certification, we would consider that this
engine family has not been selected for in-use testing.
    (ii) Select an engine family if we have approved an alternative
approach to establishing a deterioration factor under Sec.
1045.245(b)(7).
    (iii) Select the engine family with the highest projected U.S.-
directed production volume.
    (2) If we receive an application for a given model year after
December 31 of the previous calendar year, you must conduct in-use
testing with that engine family without regard to the limitations
specified in paragraph (a) of this section, unless we waive this
requirement. We will generally waive testing under this paragraph
(b)(2) only for small-volume engine manufacturers or in the case where
similar testing was recently completed for a related engine family.
    (c) Send us an in-use testing plan for engine families selected for
testing. Complete the testing within 24 calendar months after we
approve your plan. Send us the in-use testing plan according to the
following deadlines:
    (1) Within 12 calendar months after we direct you to test a
particular engine family.
    (2) By February 28 of the following year if you select engine
families for testing under paragraph (b)(1) of this section.
    (3) Within 12 calendar months after we approve certification for
engine families subject to the requirements of paragraph (b)(2) of this
section.
    (d) You may need to test engines from more than one model year at a
given time.

Sec.  1045.410  How must I select, prepare, and test my in-use engines?

    (a) You may make arrangements to select representative test engines
from your own fleet or from other independent sources.
    (b) For the selected engine families, select engines that you or
your customers have--
    (1) Operated for at least 50 percent of the engine family's useful
life (see Sec.  1045.103(e));
    (2) Not maintained or used in an abnormal way; and
    (3) Documented in terms of total hours of operation, maintenance,
operating conditions, and storage.
    (c) Use the following methods to determine the number of engines
you must test in each engine family:
    (1) Test at least two engines if you produce 2,000 or fewer engines
in the model year from all engine families, or if you produce 500 or
fewer engines from the selected engine family. Otherwise, test at least
four engines.
    (2) If you successfully complete an in-use test program on an
engine family and later certify an equivalent engine family with
carryover emission data, as described in Sec.  1045.235(d)(1), then
test at least one engine instead of the testing rates in paragraph
(c)(1) of this section.
    (3) If you test the minimum required number of engines and all
comply fully with emission standards, you may stop testing.
    (4) For each engine that fails any applicable standard, test two
more. Regardless of measured emission levels, you do not have to test
more than ten engines in an engine family. You may do more tests than
we require.
    (5) You may concede that the engine family does not comply before
testing a total of ten engines.
    (d) You may do minimal maintenance to set components of a test
engine to specifications for anything we do not consider an adjustable
parameter (see Sec.  1045.205(r)). Limit maintenance to what is in the
owner's instructions for engines with that amount of service and age.
Document all maintenance and adjustments.
    (e) You may do repeat measurements with a test engine; however, you
must conduct the same number of tests on each engine.
    (f) For a test program on an engine family, choose one of the
following methods to test your engines:
    (1) Remove the selected engines for testing in a laboratory. Use
the applicable steady-state and transient procedures in subpart F of
this part to show compliance with the duty-cycle standards in Sec.
1045.103(a) or Sec.  1045.105(a). We may direct you to measure
emissions on the dynamometer using the test procedures in Sec.
1045.515 to show compliance with the not-to-exceed standards in Sec.
1045.103(c) or Sec.  1045.105(c).
    (2) Test the selected engines while they remain installed in the
vessel. Use the procedures in Sec.  1045.515. Measure emissions during
normal operation of the vessel to show compliance with the not-to-
exceed standards in Sec.  1045.103(c) or Sec.  1045.105(c). We may
direct you to include specific areas of normal operation.
    (g) You may ask us to waive parts of the prescribed test procedures
if they are not necessary to determine in-use compliance.
    (h) Calculate the average emission levels for an engine family from
the results for the set of tested engines. Round them to the number of
decimal places in the emission standards expressed to one more decimal
place.

Sec.  1045.415  What happens if in-use engines do not meet
requirements?

    (a) Determine the reason each in-use engine exceeds the emission
standards.
    (b) If the average emission levels calculated in Sec.  1045.410(h)
exceed any of the emission standards that apply, notify us within
fifteen days of completing testing on this family. Otherwise follow the
reporting instructions in Sec.  1045.420.
    (c) We will consider failure rates, average emission levels, and
any defects--among other things--to decide on taking remedial action
under this subpart (see 40 CFR 1068.505). We may consider the results
from any voluntary additional testing you perform. We may also consider
information related to testing from other engine families showing that
you designed them to exceed the minimum requirements for controlling
emissions. We may order a recall before or after you complete testing
of an engine family if we determine a substantial number of engines do
not conform to section 213 of the Act or to this part. The scope of the
recall may include other engine families in the same or different model
years if the cause of the problem identified in paragraph (a) of this
section applies more broadly than the tested engine family, as allowed
by the Act.
    (d) If in-use testing reveals a design or manufacturing defect that
prevents engines from meeting the requirements of this part, you must
correct the defect as soon as possible for any future production for
engines in every family affected by the defect. See 40 CFR 1068.501 for
additional requirements related to defect reporting.
    (e) You may voluntarily recall an engine family for emission
failures, as described in 40 CFR 1068.535, unless

we have ordered a recall for that family under 40 CFR 1068.505.
    (f) You have the right to a hearing before we order you to recall
your engines or implement an alternative remedy (see Sec.  1045.820).

Sec.  1045.420  What in-use testing information must I report to EPA?

    (a) In a report to us within three months after you finish testing
an engine family, do all the following:
    (1) Identify the engine family, model, serial number, and date of
manufacture.
    (2) [Reserved]
    (3) Describe the specific reasons for disqualifying any engines for
not being properly maintained or used.
    (4) For each engine selected for testing, include the following
information:
    (i) Estimate the hours each engine was used before testing.
    (ii) Describe all maintenance, adjustments, modifications, and
repairs to each test engine.
    (5) State the date and time of each test attempt.
    (6) Include the results of all emission testing, including
incomplete or invalidated tests, if any.
    (b) Send electronic reports of in-use testing to the Designated
Compliance Officer using an approved information format. If you want to
use a different format, send us a written request with justification
for a waiver.
    (c) We will send copies of your reports to anyone from the public
who asks for them. See Sec.  1045.815 for information on how we treat
information you consider confidential.
    (d) We may ask for more information.

Sec.  1045.425  What records must I keep?

    (a) Organize and maintain your records as described in this
section. We may review your records at any time, so it is important to
keep required information readily available.
    (b) Keep paper records of your in-use testing for one full year
after you complete all the testing required for an engine family in a
model year. You may use any additional storage formats or media if you
like.
    (c) Keep a copy of the written reports described in Sec.  1045.420.
    (d) Keep any additional records related to the procurement process.

Subpart F--Test Procedures

Sec.  1045.501  How do I run a valid emission test?

    (a) Applicability. This subpart is addressed to you as a
manufacturer, but it applies equally to anyone who does testing for
you, and to us when we perform testing to determine if your engines
meet emission standards.
    (b) General requirements. Use the equipment and procedures for
spark-ignition engines in 40 CFR part 1065 to determine whether engines
meet the duty-cycle emission standards in Sec. Sec.  1045.103 and
1045.105. Measure the emissions of all regulated pollutants as
specified in 40 CFR part 1065. Use the applicable duty cycles specified
in Sec.  1045.505. Section 1045.515 describes the supplemental
procedures for evaluating whether engines meet the not-to-exceed
emission standards in Sec. Sec.  1045.103(c) and 1045.105(c).
    (c) Fuels. Use the fuels and lubricants specified in 40 CFR part
1065, subpart H, for all the testing we require in this part, except as
specified in Sec.  1045.515. For service accumulation, use the test
fuel or any commercially available fuel that is representative of the
fuel that in-use engines will use.
    (d) Laboratory conditions. Ambient conditions for duty-cycle
testing must be within the ranges specified in 40 CFR 1065.520, except
that atmospheric pressure must be between 94.0 and 103.325 kPa.
Humidity levels must represent actual in-use humidity levels. Emissions
may not be corrected for the effects of test temperature, pressure, or
humidity.
    (e) Special and alternate procedures. If you are unable to run the
test cycle specified in this part for your engine (such as with
constant-speed engines), use an alternate test cycle that will result
in a cycle-weighted emission measurement equivalent to the expected
average in-use emissions. This cycle must be approved under 40 CFR
1065.10. You may use other special or alternate procedures to the
extent we allow them under 40 CFR 1065.10.
    (f) Laboratory testing with portable analyzers. You may use
portable emission measurement systems for any laboratory testing with
high-performance engines, as specified in 40 CFR 1065.901(b), without
requesting approval.

Sec.  1045.505  How do I test engines using discrete-mode or ramped-
modal duty cycles?

    (a) This section describes how to test engines under steady-state
conditions. We allow you to perform tests with either discrete-mode or
ramped-modal sampling. You must use the modal testing method for
certification and all other testing you perform for an engine family.
If we test your engines to confirm that they meet emission standards,
we will use the modal testing method you select for your own testing.
We may also perform other testing as allowed by the Clean Air Act.
Conduct duty-cycle testing as follows:
    (1) For discrete-mode testing, sample emissions separately for each
mode, then calculate an average emission level for the whole cycle
using the weighting factors specified for each mode. In each mode,
operate the engine for at least 5 minutes, then sample emissions for at
least 1 minute. Calculate cycle statistics for each mode and compare
with the specified values in 40 CFR 1065.514 to confirm that the test
is valid.
    (2) For ramped-modal testing, start sampling at the beginning of
the first mode and continue sampling until the end of the last mode.
Calculate emissions and cycle statistics the same as for transient
testing as specified in 40 CFR part 1065, subpart G.
    (b) Measure emissions by testing the engine on a dynamometer to
determine whether it meets the emission standards in Sec.  1045.101(a).
Use the 5-mode duty cycle or the corresponding ramped-modal cycle
described in Appendix I of this part.
    (c) During idle mode, operate the engine with the following
parameters:
    (1) Hold the speed within your specifications.
    (2) Set the engine to operate at its minimum fueling rate.
    (3) Keep engine torque under 5 percent of maximum torque at maximum
test speed.
    (d) For full-load operating modes, operate the engine at wide-open
throttle.
    (e) See 40 CFR part 1065 for detailed specifications of tolerances
and calculations.

Sec.  1045.515  What are the test procedures related to not-to-exceed
standards?

    (a) This section describes the procedures to determine whether your
engines meet the not-to-exceed emission standards in Sec. Sec.
1045.103(c) and 1045.105(c). These procedures may include any normal
engine operation and ambient conditions that the engines may experience
in use. Paragraphs (b) and (c) of this section define the limits of
what we will consider normal engine operation and ambient conditions.
Use the test procedures we specify in Sec.  1045.501, except for the
provisions we specify in this section. Measure emissions with one of
the following procedures:
    (1) For laboratory testing of installed engines, remove the
selected engines from the vessel. You may use an engine dynamometer to
simulate normal operation, as described in this section.
    (2) For laboratory testing of outboard engines, you may use an
engine dynamometer to simulate normal operation, as described in this
section, or you may test it using the procedures

specified in paragraph (3) of this paragraph (a).
    (3) Test selected sterndrive/inboard engines and personal
watercraft engines while they remain installed in the vessel. Test
selected outboard engines in their in-use configuration while mounted
appropriately on a vessel. In 40 CFR part 1065, subpart J, we describe
the equipment and sampling methods for testing engines in the field.
Use fuel meeting the specifications of 40 CFR part 1065, subpart H, or
a fuel typical of what you would expect the engine to use in service.
    (b) Engine testing may occur under a range of ambient conditions as
follows:
    (1) Engine testing may occur under the following ranges of ambient
conditions without correcting measured emission levels:
    (i) Barometric pressure must be between 94.0 and 103.325 kPa.
    (ii) Ambient air temperature must be between 13 and 35 [deg]C.
    (iii) Ambient water temperature must be between 5 and 27 [deg]C.
    (iv) Any ambient humidity level.
    (2) Engine testing may occur outside the conditions described in
paragraph (b)(1) of this section, as long as measured values are
corrected to be equivalent to the nearest end of the specified range
using good engineering practice.
    (c) An engine's emissions may not exceed the NTE standards in Sec.
1045.103(c) or Sec.  1045.105(c) for any continuous sampling period of
at least 30 seconds under the following ranges of engine operation:
    (1) Engine operation during the emission sampling period may
include any nominally steady-state combination of speeds and loads
within the applicable zone defined by segments on an engine's power vs.
speed map specified in paragraph (c)(2) of this section, except as
follows:
    (i) You may request that we specify a narrower zone, as long as the
modified zone includes all points where your engines are expected to
normally operate in use, but not including any points at which engine
speed is below 40 percent of maximum test speed or engine load is below
25.3 percent of maximum torque at maximum test speed.
    (ii) You must notify us if you design your engines for normal in-
use operation outside the specified zone. If we learn that normal in-
use operation for your engines includes other speeds and loads, we may
specify a broader zone, as long as the modified zone is limited to
normal in-use operation for speeds greater than 40 percent of maximum
test speed and loads greater than 25.3 percent of maximum torque at
maximum test speed.
    (2) The NTE zone for testing engines under this section is defined
by the following segments on an engine's torque vs. speed map, as
illustrated in Figure 1 of this section:
    (i) Speed at or above 40 percent of maximum test speed.
    (ii) Speeds and torques below the line defined by the following
equation:
    Normalized torque = 1.5 x normalized speed - 0.16
    (iii) Speeds and torques at or below the engine's mapped torque
values.
    (iv) Speeds at or below 100 percent of maximum test speed.
    (v) Speeds and torques above the line defined by the following
equation:
    Normalized torque = (normalized speed)\1.5\ - 0.08
    (vi) Torques at or above 25.3 percent of maximum torque at maximum
test speed.
    (3) The NTE zone described in paragraph (c)(2) of this section is
divided into the following subzones for determining the applicable NTE
standards, as illustrated in Figure 1 of this section:
    (i) Subzone 1 includes all operation in the NTE zone characterized
by speeds above 90 percent of maximum test speed or loads above 100
percent of maximum torque at maximum test speed.
    (ii) Subzone 2 includes all operation in the NTE zone characterized
by speeds above 70 percent of maximum test speed or loads above 80
percent of maximum torque at maximum test speed, but excluding Subzone
1.
    (iii) Subzone 3 includes all operation in the NTE zone
characterized by speeds above 50 percent of maximum test speed, but
excluding Subzones 1 and 2.
    (iv) Subzone 4 includes all operation in the NTE zone excluding
Subzones 1, 2, and 3.
    (4) The sampling period may not begin until the engine has reached
stable operating temperatures. For example, this would exclude engine
operation after starting until the thermostat starts modulating coolant
temperature. The sampling period may also not include engine starting.

Figure 1 to Sec.  1045.515--NTE Zone and Subzones

[GRAPHIC] [TIFF OMITTED] TP18MY07.005

Sec.  1045.520  What testing must I perform to establish deterioration
factors?

    Sections 1045.240 and 1045.245 describe the required methods for
testing to establish deterioration factors for an engine family.

Subpart G--Special Compliance Provisions

Sec.  1045.601  What compliance provisions apply to these engines?

    Engine and vessel manufacturers, as well as owners, operators, and
rebuilders of engines subject to the requirements of this part, and all
other persons, must observe the provisions of this part, the
requirements and prohibitions in 40 CFR part 1068, and the provisions
of the Act.

Sec.  1045.605  What provisions apply to engines already certified
under the motor-vehicle program or other nonroad spark-ignition engine
programs?

    (a) General provisions. If you are an engine manufacturer, this
section allows you to introduce new propulsion marine engines into U.S.
commerce if they are already certified to the requirements that apply
to spark-ignition engines under 40 CFR parts 85 and 86 or part 1048 for
the appropriate model year. For outboard or personal watercraft
engines, you may also introduce the engines into U.S. commerce if they
are already certified to the requirements that apply to engines under
40 CFR part 1054 for the appropriate model year. If you comply with all
the provisions of this section, we consider the certificate issued
under 40 CFR part 86, 1048, or 1054 for each engine to also be a valid
certificate of conformity under this part 1045 for its model year,
without a separate application for certification under the requirements
of this part 1045.
    (b) Vessel-manufacturer provisions. If you are not an engine
manufacturer, you may produce vessels using motor-vehicle engines or
nonroad spark-ignition engines under this section as long as you meet
all the requirements and conditions specified in paragraph (d) of this
section. If you modify the engine in any of the ways described in
paragraph (d)(2) of this section, we will consider you a manufacturer
of a new propulsion marine engine. Such engine modifications prevent
you from using the provisions of this section.
    (c) Liability. Engines for which you meet the requirements of this
section are exempt from all the requirements and prohibitions of this
part, except for those specified in this section. Engines exempted
under this section must meet all the applicable requirements from 40
CFR parts 85 and 86, or part 1048, or part 1054. This applies to engine
manufacturers, vessel manufacturers who use these engines, and all
other persons as if these engines were used in applications other than
for installation as propulsion marine engines. The prohibited acts of
40 CFR 1068.101(a)(1) apply to these new engines and vessels; however,
we consider the certificate issued under 40 CFR part 86, 1048, or 1054
for each engine to also be a valid certificate of conformity under this
part 1045 for its model year. If we make a determination that these
engines do not conform to the regulations during their useful life, we
may require you to recall them under 40 CFR part 86 or 1068.
    (d) Specific requirements. If you are an engine or vessel
manufacturer and meet all the following criteria and

requirements regarding your new propulsion marine engine, the engine is
eligible for an exemption under this section:
    (1) Your engine must be covered by a valid certificate of
conformity issued under 40 CFR part 86, 1048, or 1054.
    (2) You must not make any changes to the certified engine that
could reasonably be expected to increase its exhaust emissions for any
pollutant, or its evaporative emissions. For example, if you make any
of the following changes to one of these engines, you do not qualify
for this exemption:
    (i) Change any fuel-system or evaporative-system parameters from
the certified configuration (this does not apply to refueling
controls).
    (ii) Change, remove, or fail to properly install any other
component, element of design, or calibration specified in the engine
manufacturer's application for certification. This includes
aftertreatment devices and all related components.
    (iii) Modify or design the marine engine cooling system so that
temperatures or heat rejection rates are outside the original engine
manufacturer's specified ranges.
    (3) You must show that less than 5 percent of the engine family's
total sales in the United States are used in marine applications. This
includes engines used in any application without regard to which
company manufactures the vessel or equipment. Show this as follows:
    (i) If you are the original manufacturer of the engine, base this
showing on your sales information.
    (ii) In all other cases, you must get the original manufacturer of
the engine to confirm this based on its sales information.
    (4) You must ensure that the engine has the label we require under
40 CFR part 86, 1048, or 1054.
    (5) You must add a permanent supplemental label to the engine in a
position where it will remain clearly visible after installation in the
vessel. In the supplemental label, do the following:
    (i) Include the heading: ``MARINE ENGINE EMISSION CONTROL
INFORMATION''.
    (ii) Include your full corporate name and trademark. You may
instead include the full corporate name and trademark of another
company you choose to designate.
    (iii) State: ``THIS ENGINE WAS ADAPTED FOR MARINE USE WITHOUT
AFFECTING ITS EMISSION CONTROLS.''.
    (iv) If the modified engine is certified as a motor-vehicle engine,
also state: ``THE EMISSION CONTROL SYSTEM DEPENDS ON THE USE OF FUEL
MEETING SPECIFICATIONS THAT APPLY FOR MOTOR-VEHICLE APPLICATIONS.
OPERATING THE ENGINE ON OTHER FUELS MAY BE A VIOLATION OF FEDERAL
LAW.''.
    (v) State the date you finished modifying the engine (month and
year), if applicable.
    (6) The original and supplemental labels must be readily visible
after the engine is installed in the vessel or, if the vessel obscures
the engine's emission control information label, the vessel
manufacturer must attach duplicate labels, as described in 40 CFR
1068.105.
    (7) Send the Designated Compliance Officer a signed letter by the
end of each calendar year (or less often if we tell you) with all the
following information:
    (i) Identify your full corporate name, address, and telephone
number.
    (ii) List the engine or vessel models you expect to produce under
this exemption in the coming year and describe your basis for meeting
the sales restrictions of paragraph (d)(3) of this section.
    (iii) State: ``We produce each listed [engine or vessel] model
without making any changes that could increase its certified emission
levels, as described in 40 CFR 1045.605.''.
    (e) Failure to comply. If your engines do not meet the criteria
listed in paragraph (d) of this section, they will be subject to the
standards, requirements, and prohibitions of this part 1045 and the
certificate issued under 40 CFR part 86, 1048, or 1054 will not be
deemed to also be a certificate issued under this part 1045.
Introducing these engines into U.S. commerce without a valid exemption
or certificate of conformity under this part violates the prohibitions
in 40 CFR 1068.101(a)(1).
    (f) Data submission. We may require you to send us emission test
data on one of the duty cycles specified in subpart F of this part.
    (g) Participation in averaging, banking and trading. Engines
adapted for marine use under this section may not generate or use
emission credits under this part 1045. These engines may generate
credits under the ABT provisions in 40 CFR part 86 or 1054. These
engines must use emission credits under 40 CFR part 86 or 1054 if they
are certified to an FEL that exceeds a standard that applies under 40
CFR part 86 or 1054.

Sec.  1045.620  What are the provisions for exempting engines used
solely for competition?

    The provisions of this section apply for new engines and vessels
built on or after January 1, 2009.
    (a) We may grant you an exemption from the standards and
requirements of this part for a new engine on the grounds that it is to
be used solely for competition. The requirements of this part, other
than those in this section, do not apply to engines that we exempt for
use solely for competition.
    (b) We will exempt engines that we determine will be used solely
for competition. The basis of our determination is described in
paragraphs (c) and (d) of this section. Exemptions granted under this
section are good for only one model year and you must request renewal
for each subsequent model year. We will not approve your renewal
request if we determine the engine will not be used solely for
competition.
    (c) Engines meeting all the following criteria are considered to be
used solely for competition:
    (1) Neither the engine nor any vessels containing the engine may be
displayed for sale in any public dealership or otherwise offered for
sale to the general public.
    (2) Sale of the vessel in which the engine is installed must be
limited to professional racing teams, professional racers, or other
qualified racers.
    (3) The engine and the vessel in which it is installed must have
performance characteristics that are substantially superior to
noncompetitive models.
    (4) The engines are intended for use only as specified in paragraph
(e) of this section.
    (d) You may ask us to approve an exemption for engines not meeting
the criteria listed in paragraph (c) of this section as long as you
have clear and convincing evidence that the engines will be used solely
for competition.
    (e) Engines are considered to be used solely for competition only
if their use is limited to competition events sanctioned by the U.S.
Coast Guard or another public organization with authorizing permits for
participating competitors. Operation of such engines may include only
racing events or trials to qualify for racing events. Authorized
attempts to set speed records (and the associated official trials) are
also considered racing events. Engines will not be considered to be
used solely for competition if they are ever used for any recreational
or other noncompetitive purpose. Use of exempt engines in any
recreational events, such as poker runs

and lobsterboat races, is a violation of 40 CFR 1068.101(b)(4).
    (f) You must permanently label engines exempted under this section
to clearly indicate that they are to be used only for competition.
Failure to properly label an engine will void the exemption for that
engine.
    (g) If we request it, you must provide us any information we need
to determine whether the engines are used solely for competition. This
would include documentation regarding the number of engines and the
ultimate purchaser of each engine as well as any documentation showing
a vessel manufacturer's request for an exempted engine. Keep these
records for five years.

Sec.  1045.630  What is the personal-use exemption.

    This section applies to individuals who manufacture recreational
vessels for personal use. If you and your vessel meet all the
conditions of this section, the vessel and its engine are considered to
be exempt from the standards and requirements of this part that apply
to new engines, including standards and requirements related to
evaporative emissions. For example, you are not required to use
certified fuel system components or otherwise obtain certificates of
conformity showing that the vessel meets evaporative emission
standards, and you do not need to install a certified engine.
    (a) The vessel may not be manufactured from a previously certified
vessel, nor may it be manufactured from a partially complete vessel
that is equivalent to a certified vessel. The vessel must be
manufactured primarily from unassembled components, but may incorporate
some preassembled components. For example, fully preassembled steering
assemblies may be used. You may also power the vessel with an engine
that was previously used in a highway or land-based nonroad
application.
    (b) The vessel may not be sold within five years after the date of
final assembly.
    (c) No individual may manufacture more than one vessel in any ten-
year period under this exemption.
    (d) You may not use the vessel in any revenue-generating service or
for any other commercial purpose. For example, this exemption does not
apply for vessels used in commercial fishing or charter service.
    (e) This exemption may not be used to circumvent the requirements
of this part or the requirements of the Clean Air Act. For example,
this exemption would not cover a case in which a person sells an almost
completely assembled vessel to another person, who would then complete
the assembly. This would be considered equivalent to the sale of the
complete new vessel. This section also does not allow engine
manufacturers to produce new engines that are exempt from emission
standards and it does not provide an exemption from the prohibition
against tampering with certified engines.

Sec.  1045.635  What special provisions apply for small-volume engine
manufacturers?

    This section describes how we apply the special provisions in this
part for small-volume engine manufacturers.
    (a) If you qualify under paragraph (1) of the definition of small-
volume engine manufacturer in Sec.  1045.801, the small-volume engine
manufacturer provisions apply as specified in this part.
    (b) If you are a small business (as defined by the Small Business
Administration at 13 CFR 121.201) that manufactures marine spark-
ignition engines, but you do not qualify under paragraph (1) of the
definition of small-volume engine manufacturer in Sec.  1045.801, you
may ask us to designate you to be a small-volume engine manufacturer.
You may do this whether you began manufacturing engines before, during,
or after 2007. We may set other reasonable conditions that are
consistent with the intent of this section and the Act. For example, we
may refuse to designate a company making outboard engines as a small
business if annual worldwide production of outboard engines exceeded
5,000 units in any calendar year.
    (c) If you use any of the provisions of this part that apply
specifically to small-volume engine manufacturers and we find that you
exceed the production limits or otherwise do not qualify as a small-
volume engine manufacturer, we may consider you to be in violation of
the requirements that apply for companies that are not small-volume
engine manufacturers for those engines produced in excess of the
specified production limits.

Sec.  1045.640  What special provisions apply to branded engines?

    The following provisions apply if you identify the name and
trademark of another company instead of your own on your emission
control information label, as provided by Sec.  1045.135(c)(2):
    (a) You must have a contractual agreement with the other company
that obligates that company to take the following steps:
    (1) Meet the emission warranty requirements that apply under Sec.
1045.120. This may involve a separate agreement involving reimbursement
of warranty-related expenses.
    (2) Report all warranty-related information to the certificate
holder.
    (b) In your application for certification, identify the company
whose trademark you will use and describe the arrangements you have
made to meet your requirements under this section.
    (c) You remain responsible for meeting all the requirements of this
chapter, including warranty and defect-reporting provisions.

Sec.  1045.645  What special provisions apply for converting an engine
to use an alternate fuel?

    (a) Converting a certified new engine to run on a different fuel
violates 40 CFR 1068.101(a)(1) if the modified engine is not covered by
a certificate of conformity.
    (b) Converting a certified engine that is not new to run on a
different fuel violates 40 CFR 1068.101(b)(1) if the modified engine is
not covered by a certificate of conformity. We may specify alternate
certification provisions consistent with the requirements of this part.

Sec.  1045.650  Do the provisions of 40 CFR 1068.260 apply for marine
engines?

    The provisions of 40 CFR 1068.260 related to delegated final
assembly do not apply for marine spark-ignition engines certified under
this part 1045. This means that for engines requiring exhaust
aftertreatment (such as catalysts), the engine manufacturers must
either install the aftertreatment on the engine before introducing it
into U.S. commerce or ship the aftertreatment along with the engine.

Sec.  1045.660  How do I certify outboard or personal watercraft
engines for use in jet boats?

    (a) This section describes how to certify outboard or personal
watercraft engines for use in jet boats. To be certified under this
section, the jet boat engines must be identical in all physical
respects to the corresponding outboard or personal watercraft engines,
but may differ slightly with respect to engine calibrations.
    (b) The outboard or personal watercraft engines must meet all the
applicable requirements for outboard or personal watercraft engines and
must be labeled accordingly. Jet boat engines certified under this
section must meet all the applicable requirements for jet boat engines.
    (c) The jet boat engines must be in an engine family separate from
the outboard or personal watercraft engines.

    (d) Jet boat engine families may use emission credits from outboard
or personal watercraft engine families, as described in Sec.
1045.701(d).

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

Sec.  1045.701  General provisions.

    (a) You may average, bank, and trade (ABT) emission credits for
purposes of certification as described in this subpart to show
compliance with the standards of this part. Participation in this
program is voluntary.
    (b) The definitions of subpart I of this part apply to this
subpart. The following definitions also apply:
    (1) Actual emission credits means emission credits you have
generated that we have verified by reviewing your final report.
    (2) Averaging set means a set of engines in which emission credits
may be exchanged only with other engines in the same averaging set.
    (3) Broker means any entity that facilitates a trade of emission
credits between a buyer and seller.
    (4) Buyer means the entity that receives emission credits as a
result of a trade.
    (5) Family means engine family for exhaust credits or emission
family for evaporative credits.
    (6) Reserved emission credits means emission credits you have
generated that we have not yet verified by reviewing your final report.
    (7) Seller means the entity that provides emission credits during a
trade.
    (8) Standard means the emission standard that applies under subpart
B of this part for engines or fuel-system components not participating
in the ABT program of this subpart.
    (9) Trade means to exchange emission credits, either as a buyer or
seller.
    (c) You may not average or exchange banked or traded exhaust
credits with evaporative credits, or vice versa. Evaporative credits
generated by any vessels under this part may be used by any vessels
under this part. Exhaust credits may be exchanged only within an
averaging set. Except as specified in paragraph (d) of this section,
the following criteria define the applicable averaging sets:
    (1) Sterndrive/inboard engines.
    (2) Outboard and personal watercraft engines.
    (d) Sterndrive/inboard engines certified under Sec.  1045.660 for
jet boats may use HC+NOX exhaust credits generated from
outboard and personal watercraft engines, as long as the credit-using
engine is the same model as an engine model from an outboard or
personal watercraft family. The HC+NOX FEL cap for such jet
boat families is the HC+NOX standard for outboard and
personal watercraft engines. U.S.-directed sales from a jet boat family
using the provisions of this paragraph (d) may not be greater than the
U.S.-directed sales of the same engine model for outboard or personal
watercraft engines in any model year.
    (e) You may not generate evaporative credits based on permeation
measurements from metal fuel tanks or portable marine fuel tanks.
    (f) You may not use emission credits generated under this subpart
to offset any emissions that exceed an FEL or standard. This applies
for all testing, including certification testing, in-use testing,
selective enforcement audits, and other production-line testing.
However, if exhaust emissions from an engine exceed an exhaust FEL or
standard (for example, during a selective enforcement audit), you may
use emission credits to recertify the family with a higher FEL that
applies only to future production.
    (g) Families that use emission credits for one or more pollutants
may not generate positive emission credits for another pollutant.
    (h) Emission credits may be used in the model year they are
generated (averaging) and in future model years (banking), except that
CO emission credits for outboard and personal watercraft engines may
not be banked.
    (i) You may increase or decrease an exhaust FEL during the model
year by amending your application for certification under Sec.
1045.225.

Sec.  1045.705  How do I generate and calculate exhaust emission
credits?

    The provisions of this section apply for calculating exhaust
emission credits for HC+NOX or CO. You may generate exhaust
emission credits only if you are a certifying engine manufacturer.
    (a) For each participating family, calculate positive or negative
emission credits relative to the otherwise applicable emission
standard. Calculate positive emission credits for a family that has an
FEL below the standard. Calculate negative emission credits for a
family that has an FEL above the standard. Sum your positive and
negative credits for the model year before rounding. Round calculated
emission credits to the nearest kilogram (kg), using consistent units
throughout the following equation:

Emission credits (kg) = (Std--FEL) x (Volume) x (Power) x (LIFE) x (LF)
x (10-3)
Where:

Std = the emission standard, in g/kW-hr.
FEL = the family emission limit for the family, in g/kW-hr.
Volume = the number of engines eligible to participate in the
averaging, banking, and trading program within the given family
during the model year, as described in paragraph (c) of this
section.
Power = the average value of maximum engine power of all the engine
configurations within a family, calculated on a production-weighted
basis, in kilowatts.
LIFE = the estimated engine lifetime for calculating emission
credits, in hours. Use 480 hours for high-performance engines with
maximum engine power at or below 485 kW. Use 250 hours for high-
performance engines with maximum engine power above 485 kW. For
other engines use the useful life for the given family.
LF = load factor. Use 0.207. We may specify a different load factor
if we approve the use of special test procedures for an engine
family under 40 CFR 1065.10(c)(2), consistent with good engineering
judgment.

    (b) [Reserved]
    (c) In your application for certification, base your showing of
compliance on projected production volumes for engines whose point of
first retail sale is in the United States. As described in Sec.
1045.730, compliance with the requirements of this subpart is
determined at the end of the model year based on actual production
volumes for engines whose point of first retail sale is in the United
States. Do not include any of the following engines to calculate
emission credits:
    (1) Engines exempted under subpart G of this part or under 40 CFR
part 1068.
    (2) Engines intended for export, unless there is reason to believe
that the engines will be later imported into the United States after
installation in equipment.
    (3) Engines that are subject to state emission standards for that
model year. However, this restriction does not apply if we determine
that the state standards and requirements are equivalent to those of
this part and that engines sold in such a state will not generate
credits under the state program. For example, you may not include
engines certified for California if it has more stringent emission
standards for these engines or those engines generate or use emission
credits under the California program.
    (4) Engines not subject to the requirements of this part, such as
those excluded under Sec.  1045.5.
    (5) Any other engines, where we indicate elsewhere in this part
1045 that they are not to be included in the calculations of this
subpart.

Sec.  1045.706  How do I generate and calculate evaporative emission
credits?

    The provisions of this section apply for calculating evaporative
emission credits. This applies only for fuel tank permeation. You may
generate credits only if you are a certifying vessel manufacturer.
    (a) For each participating vessel, calculate positive or negative
emission credits relative to the otherwise applicable emission
standard. Calculate positive emission credits for a family that has an
FEL below the standard. Calculate negative emission credits for a
family that has an FEL above the standard. Sum your positive and
negative credits for the model year before rounding. Round calculated
emission credits to the nearest kilogram (kg), using consistent units
throughout the following equation:

Emission credits (kg) = (Std-FEL) x (Total Area) x (UL) x (AF) x (365)
x (10-3)

Where:
Std = the emission standard, in g/m2/day.
FEL = the family emission limit for the family, in g/m2/
day, as described in paragraph (b) of this section.
Total Area = The combined internal surface area of all fuel tanks in
the family, in m2.
UL = the useful life for the given family, in years.
AF = adjustment factor. Use 1.0 for fuel tank testing performed at
28 [deg]C and 0.60 for testing performed at 40 [deg]C.

    (b) Determine the FEL for calculating credits under paragraph (a)
of this section using any of the following values:
    (1) The FEL to which the fuel tank is certified, as long as the FEL
is at or below 3.0 g/m2/day.
    (2) 10.4 g/m2/day. However, if you use this value to
establish the FEL for any of your fuel tanks, you must use this value
to establish the FEL for every tank not covered by paragraph (b)(1) of
this section.
    (3) The measured permeation rate of the fuel tank or the measured
permeation rate of a thinner-walled tank of the same material. However,
if you use this approach to establish the FEL for any of your fuel
tanks, you must establish an FEL based on emission measurements for
every tank not covered by paragraph (b)(1) of this section.
    (c) In your application for certification, base your showing of
compliance on projected production volumes for vessels whose point of
first retail sale is in the United States. As described in Sec.
1045.730, compliance with the requirements of this subpart is
determined at the end of the model year based on actual production
volumes for vessels whose point of first retail sale is in the United
States. Do not include any of the following vessels to calculate
emission credits:
    (1) Vessels exempted under subpart G of this part or under 40 CFR
part 1068.
    (2) Vessels intended for export.
    (3) Vessels that are subject to state emission standards for that
model year. However, this restriction does not apply if we determine
that the state standards and requirements are equivalent to those of
this part and that vessels sold in such a state will not generate
credits under the state program. For example, you may not include
vessels certified for California if it has more stringent emission
standards for these vessels or that vessels generate or use emission
credits under the California program.
    (4) Vessels not subject to the requirements of this part, such as
those excluded under Sec.  1045.5.
    (5) Any other vessels, where we indicate elsewhere in this part
1045 that they are not to be included in the calculations of this
subpart.

Sec.  1045.710  How do I average emission credits?

    (a) Averaging is the exchange of emission credits among your
families. You may average emission credits only within the same
averaging set.
    (b) You may certify one or more families to an FEL above the
emission standard, subject to the FEL caps and other provisions in
subpart B of this part, if you show in your application for
certification that your projected balance of all emission-credit
transactions in that model year is greater than or equal to zero.
    (c) If you certify a family to an FEL that exceeds the otherwise
applicable standard, you must obtain enough emission credits to offset
the family's deficit by the due date for the final report required in
Sec.  1045.730. The emission credits used to address the deficit may
come from your other families that generate emission credits in the
same model year, from emission credits you have banked, or from
emission credits you obtain through trading.

Sec.  1045.715  How do I bank emission credits?

    (a) Banking is the retention of emission credits by the
manufacturer generating the emission credits for use in averaging or
trading in future model years. You may use banked emission credits only
within the averaging set in which they were generated.
    (b) In your application for certification, designate any emission
credits you intend to bank. These emission credits will be considered
reserved credits. During the model year and before the due date for the
final report, you may redesignate these emission credits for averaging
or trading.
    (c) You may use banked emission credits from the previous model
year for averaging or trading before we verify them, but we may revoke
these emission credits if we are unable to verify them after reviewing
your reports or auditing your records.
    (d) Reserved credits become actual emission credits only when we
verify them in reviewing your final report.

Sec.  1045.720  How do I trade emission credits?

    (a) Trading is the exchange of emission credits between
manufacturers. You may use traded emission credits for averaging,
banking, or further trading transactions. Traded emission credits may
be used only within the averaging set in which they were generated.
    (b) You may trade actual emission credits as described in this
subpart. You may also trade reserved emission credits, but we may
revoke these emission credits based on our review of your records or
reports or those of the company with which you traded emission credits.
You may trade banked credits to any certifying engine or vessel
manufacturer.
    (c) If a negative emission credit balance results from a
transaction, both the buyer and seller are liable, except in cases we
deem to involve fraud. See Sec.  1045.255(e) for cases involving fraud.
We may void the certificates of all families participating in a trade
that results in a manufacturer having a negative balance of emission
credits. See Sec.  1045.745.

Sec.  1045.725  What must I include in my application for
certification?

    (a) You must declare in your application for certification your
intent to use the provisions of this subpart for each family that will
be certified using the ABT program. You must also declare the FELs you
select for the family for each pollutant for which you are using the
ABT program. Your FELs must comply with the specifications of subpart B
of this part, including the FEL caps. FELs must be expressed to the
same number of decimal places as the emission standard.
    (b) Include the following in your application for certification:
    (1) A statement that, to the best of your belief, you will not have
a negative balance of emission credits for any averaging set when all
emission credits are calculated at the end of the year.

    (2) Detailed calculations of projected emission credits (positive
or negative) based on projected production volumes. If your family will
generate positive emission credits, state specifically where the
emission credits will be applied (for example, to which family they
will be applied in averaging, whether they will be traded, or whether
they will be reserved for banking). If you have projected negative
emission credits for a family, state the source of positive emission
credits to offset the negative emission credits. Describe whether the
emission credits are actual or reserved and whether they will come from
averaging, banking, trading, or a combination of these. Identify from
which of your families or from which manufacturer the emission credits
will come.

Sec.  1045.730  What ABT reports must I send to EPA?

    (a) If any of your families are certified using the ABT provisions
of this subpart, you must send an end-of-year report within 90 days
after the end of the model year and a final report within 270 days
after the end of the model year. We may waive the requirement to send
the end-of year report, as long as you send the final report on time.
    (b) Your end-of-year and final reports must include the following
information for each family participating in the ABT program:
    (1) Family designation.
    (2) The emission standards that would otherwise apply to the
family.
    (3) The FEL for each pollutant. If you changed an FEL during the
model year, identify each FEL you used and calculate the positive or
negative emission credits under each FEL. Also, describe how the FEL
can be identified for each engine you produced. For example, you might
keep a list of engine or vessel identification numbers that correspond
with certain FEL values.
    (4) The projected and actual production volumes for the model year
with a point of retail sale in the United States, as described in
Sec. Sec.  1045.705(c) and 1045.706(c). For fuel tanks, state the
production volume in terms of total surface area. If you changed an
engine's FEL during the model year, identify the actual production
volume associated with each FEL.
    (5) Maximum engine power for each engine configuration, and the
production-weighted average engine power for the family.
    (6) Useful life.
    (7) Calculated positive or negative emission credits for the whole
family. Identify any emission credits that you traded, as described in
paragraph (d)(1) of this section.
    (c) Your end-of-year and final reports must include the following
additional information:
    (1) Show that your net balance of emission credits from all your
participating families in each averaging set in the applicable model
year is not negative.
    (2) State whether you will reserve any emission credits for
banking.
    (3) State that the report's contents are accurate.
    (d) If you trade emission credits, you must send us a report within
90 days after the transaction, as follows:
    (1) As the seller, you must include the following information in
your report:
    (i) The corporate names of the buyer and any brokers.
    (ii) A copy of any contracts related to the trade.
    (iii) The families that generated emission credits for the trade,
including the number of emission credits from each family.
    (2) As the buyer, you must include the following information in
your report:
    (i) The corporate names of the seller and any brokers.
    (ii) A copy of any contracts related to the trade.
    (iii) How you intend to use the emission credits, including the
number of emission credits you intend to apply to each family (if
known).
    (e) Send your reports electronically to the Designated Compliance
Officer using an approved information format. If you want to use a
different format, send us a written request with justification for a
waiver.
    (f) Correct errors in your end-of-year report or final report as
follows:
    (1) You may correct any errors in your end-of-year report when you
prepare the final report, as long as you send us the final report by
the time it is due.
    (2) If you or we determine within 270 days after the end of the
model year that errors mistakenly decrease your balance of emission
credits, you may correct the errors and recalculate the balance of
emission credits. You may not make these corrections for errors that
are determined more than 270 days after the end of the model year. If
you report a negative balance of emission credits, we may disallow
corrections under this paragraph (f)(2).
    (3) If you or we determine anytime that errors mistakenly increase
your balance of emission credits, you must correct the errors and
recalculate the balance of emission credits.

Sec.  1045.735  What records must I keep?

    (a) You must organize and maintain your records as described in
this section. We may review your records at any time.
    (b) Keep the records required by this section for at least eight
years after the due date for the end-of-year report. You may not use
emission credits for any engines or vessel if you do not keep all the
records required under this section. You must therefore keep these
records to continue to bank valid credits. Store these records in any
format and on any media, as long as you can promptly send us organized,
written records in English if we ask for them. You must keep these
records readily available. We may review them at any time.
    (c) Keep a copy of the reports we require in Sec. Sec.  1045.725
and 1045.730.
    (d) Keep the following additional records for each engine or vessel
you produce that generates or uses emission credits under the ABT
program:
    (1) Family designation.
    (2) Engine or vessel identification number.
    (3) FEL and useful life.
    (4) Maximum engine power or internal surface area of the fuel tank.
    (5) Build date and assembly plant.
    (e) We may require you to keep additional records or to send us
relevant information not required by this section.

Sec.  1045.745  What can happen if I do not comply with the provisions
of this subpart?

    (a) For each family participating in the ABT program, the
certificate of conformity is conditional upon full compliance with the
provisions of this subpart during and after the model year. You are
responsible to establish to our satisfaction that you fully comply with
applicable requirements. We may void the certificate of conformity for
a family if you fail to comply with any provisions of this subpart.
    (b) You may certify your family to an FEL above an emission
standard based on a projection that you will have enough emission
credits to offset the deficit for the family. However, we may void the
certificate of conformity if you cannot show in your final report that
you have enough actual emission credits to offset a deficit for any
pollutant in a family.
    (c) We may void the certificate of conformity for a family if you
fail to keep records, send reports, or give us information we request.
    (d) You may ask for a hearing if we void your certificate under
this section (see Sec.  1045.820).

Subpart I--Definitions and Other Reference Information

Sec.  1045.801  What definitions apply to this part?

    The following definitions apply to this part. The definitions apply
to all subparts unless we note otherwise. All undefined terms have the
meaning the Act gives to them. The definitions follow:
    Act means the Clean Air Act, as amended, 42 U.S.C. 7401--7671q.
    Adjustable parameter means any device, system, or element of design
that someone can adjust (including those which are difficult to access)
and that, if adjusted, may affect emissions or engine performance
during emission testing or normal in-use operation. This includes, but
is not limited to, parameters related to injection timing and fueling
rate. You may ask us to exclude a parameter that is difficult to access
if it cannot be adjusted to affect emissions without significantly
degrading engine performance, or if you otherwise show us that it will
not be adjusted in a way that affects emissions during in-use
operation.
    Aftertreatment means relating to a catalytic converter, particulate
filter, or any other system, component, or technology mounted
downstream of the exhaust valve (or exhaust port) whose design function
is to decrease emissions in the engine exhaust before it is exhausted
to the environment. Exhaust-gas recirculation (EGR) and turbochargers
are not aftertreatment.
    Amphibious vehicle means a vehicle with wheels or tracks that is
designed primarily for operation on land and secondarily for operation
in water.
    Applicable emission standard or applicable standard means an
emission standard to which an engine is subject; or, where an engine
has been or is being certified another standard or FEL, applicable
emission standards means the FEL and other standards to which the
engine has been or is being certified. This definition does not apply
to subpart H of this part.
    Auxiliary emission control device means any element of design that
senses temperature, motive speed, engine RPM, transmission gear, or any
other parameter for the purpose of activating, modulating, delaying, or
deactivating the operation of any part of the emission control system.
    Brake power means the usable power output of the engine, not
including power required to fuel, lubricate, or heat the engine,
circulate coolant to the engine, or to operate aftertreatment devices.
    Calibration means the set of specifications and tolerances specific
to a particular design, version, or application of a component or
assembly capable of functionally describing its operation over its
working range.
    Certification means relating to the process of obtaining a
certificate of conformity for an engine family that complies with the
emission standards and requirements in this part.
    Certified emission level means the highest deteriorated emission
level in an engine family for a given pollutant from either transient
or steady-state testing.
    Crankcase emissions means airborne substances emitted to the
atmosphere from any part of the engine crankcase's ventilation or
lubrication systems. The crankcase is the housing for the crankshaft
and other related internal parts.
    Critical emission-related component means any of the following
components:
    (1) Electronic control units, aftertreatment devices, fuel-metering
components, EGR-system components, crankcase-ventilation valves, all
components related to charge-air compression and cooling, and all
sensors and actuators associated with any of these components.
    (2) Any other component whose primary purpose is to reduce
emissions.
    Designated Compliance Officer means the Manager, Heavy-Duty and
Nonroad Engine Group (6405-J), U.S. Environmental Protection Agency,
1200 Pennsylvania Ave., NW., Washington, DC 20460.
    Designated Enforcement Officer means the Director, Air Enforcement
Division (2242A), U.S. Environmental Protection Agency, 1200
Pennsylvania Ave., NW.,Washington, DC 20460.
    Deteriorated emission level means the emission level that results
from applying the appropriate deterioration factor to the official
emission result of the emission-data engine.
    Deterioration factor means the relationship between emissions at
the end of useful life and emissions at the low-hour test point,
expressed in one of the following ways:
    (1) For multiplicative deterioration factors, the ratio of
emissions at the end of useful life to emissions at the low-hour test
point.
    (2) For additive deterioration factors, the difference between
emissions at the end of useful life and emissions at the low-hour test
point.
    Discrete-mode means relating to the discrete-mode type of steady-
state test described in Sec.  1045.505.
    Emission control system means any device, system, or element of
design that controls or reduces the emissions of regulated pollutants
from an engine.
    Emission-data engine means an engine that is tested for
certification. This includes engines tested to establish deterioration
factors.
    Emission-related maintenance means maintenance that substantially
affects emissions or is likely to substantially affect emission
deterioration.
    Engine has the meaning given in 40 CFR 1068.30. This includes
complete and partially complete engines.
    Engine configuration means a unique combination of engine hardware
and calibration within an engine family. Engines within a single engine
configuration differ only with respect to normal production
variability.
    Engine family has the meaning given in Sec.  1045.230.
    Engine manufacturer means the manufacturer of the engine. See the
definition of ``manufacturer'' in this section.
    Evaporative means relating to fuel emissions controlled by 40 CFR
part 1060. This generally includes emissions that result from
permeation of fuel through the fuel-system materials, from ventilation
of the fuel system.
    Excluded means relating to an engine that either:
    (1) Has been determined not to be a nonroad engine, as specified in
40 CFR 1068.30; or
    (2) Is a nonroad engine that, according to Sec.  1045.5, is not
subject to this part 1045.
    Exempted has the meaning given in 40 CFR 1068.30.
    Exhaust-gas recirculation means a technology that reduces emissions
by routing exhaust gases that had been exhausted from the combustion
chamber(s) back into the engine to be mixed with incoming air before or
during combustion. The use of valve timing to increase the amount of
residual exhaust gas in the combustion chamber(s) that is mixed with
incoming air before or during combustion is not considered exhaust-gas
recirculation for the purposes of this part.
    Family emission limit (FEL) means an emission level declared by the
manufacturer to serve in place of an otherwise applicable emission
standard under the ABT program in subpart H of this part. The family
emission limit must be expressed to the same number of decimal places
as the emission standard it replaces. The family emission limit serves
as the emission standard for the engine family with respect to all
required testing.
    Fuel line means all hose, tubing, and primer bulbs containing or
exposed to liquid fuel, including hose or tubing

that delivers fuel to or from the engine. This includes hose or tubing
for the filler neck if any portion of the filler-neck material
continues to be exposed to liquid fuel after a refueling event in which
an operator fills the fuel tank as full as possible.
    Fuel system means all components involved in transporting,
metering, and mixing the fuel from the fuel tank to the combustion
chamber(s), including the fuel tank, fuel tank cap, fuel pump, fuel
filters, fuel lines, carburetor or fuel-injection components, and all
fuel-system vents.
    Fuel type means a general category of fuels such as gasoline or
natural gas. There can be multiple grades within a single fuel type,
such as low-temperature or all-season gasoline.
    Good engineering judgment has the meaning given in 40 CFR 1068.30.
See 40 CFR 1068.5 for the administrative process we use to evaluate
good engineering judgment.
    High-performance means relating to a sterndrive/inboard engine with
maximum engine power at or above 373 kW that has design features to
enhance power output such that the expected operating time until
rebuild is substantially shorter than 480 hours.
    Hydrocarbon (HC) means the hydrocarbon group on which the emission
standards are based for each fuel type, as described in subpart B of
this part.
    Identification number means a unique specification (for example, a
model number/serial number combination) that allows someone to
distinguish a particular engine from other similar engines.
    Jet boat means a vessel that uses an installed internal combustion
engine powering a water jet pump as its primary source of propulsion
and is designed with open area for carrying passengers.
    Low-hour means relating to an engine that has stabilized emissions
and represents the undeteriorated emission level. This would generally
involve less than 30 hours of operation.
    Manufacture means the physical and engineering process of
designing, constructing, and assembling an engine or vessel.
    Manufacturer has the meaning given in section 216(1) of the Act. In
general, this term includes any person who manufactures an engine or
vessel for sale in the United States or otherwise introduces a new
marine engine into U.S. commerce. This includes importers who import
engines or vessels for resale, but not dealers. All manufacturing
entities under the control of the same person are considered to be a
single manufacturer.
    Marine engine means a nonroad engine that is installed or intended
to be installed on a vessel. This includes a portable auxiliary marine
engine only if its fueling, cooling, or exhaust system is an integral
part of the vessel. There are two kinds of marine engines:
    (1) Propulsion marine engine means a marine engine that moves a
vessel through the water or directs the vessel's movement.
    (2) Auxiliary marine engine means a marine engine not used for
propulsion.
    Marine vessel has the meaning given in 1 U.S.C. 3, except that it
does not include amphibious vehicles. The definition in 1 U.S.C. 3 very
broadly includes every craft capable of being used as a means of
transportation on water.
    Maximum engine power has the meaning given in Sec.  1045.140.
    Maximum test speed has the meaning given in 40 CFR 1065.1001.
    Model year means one of the following things:
    (1) For freshly manufactured vessels and engines (see definition of
``new propulsion marine engine,'' paragraph (1)), model year means one
of the following:
    (i) Calendar year.
    (ii) Your annual new model production period if it is different
than the calendar year. This must include January 1 of the calendar
year for which the model year is named. It may not begin before January
2 of the previous calendar year and it must end by December 31 of the
named calendar year. For seasonal production periods not including
January 1, model year means the calendar year in which the production
occurs, unless you choose to certify the applicable engine family with
the following model year. For example, if your production period is
June 1, 2010 through November 30, 2010, your model year would be 2010
unless you choose to certify the engine family for model year 2011.
    (2) For an engine that is converted to a propulsion marine engine
after being placed into service as a motor-vehicle engine or a
stationary engine, model year means the calendar year in which the
engine was originally produced (see definition of ``new propulsion
marine engine,'' paragraph (2)).
    (3) For an engine originally produced for use as a nonroad engine
but not as a propulsion marine engine that is later converted to
operate as a propulsion marine engine, model year means the calendar
year in which the engine was originally produced (see definition of
``new propulsion marine engine,'' paragraph (3)).
    (4) For engines that are not freshly manufactured but are installed
in new vessels, model year means the calendar year in which the engine
is installed in the new vessel (see definition of ``new propulsion
marine engine,'' paragraph (4)).
    (5) For imported engines:
    (i) For imported engines described in paragraph (5)(i) of the
definition of ``new propulsion marine engine,'' model year has the
meaning given in paragraphs (1) through (4) of this definition.
    (ii) For imported engines described in paragraph (5)(ii) of the
definition of ``new propulsion marine engine,'' model year means the
calendar year in which the engine is modified.
    (iii) For imported engines described in paragraph (5)(iii) of the
definition of ``new nonroad engine,'' model year means the calendar
year in which the importation occurs.
    New vessel means either of the following things:
    (1) A vessel for which the ultimate purchaser has never received
the equitable or legal title. The product is no longer new when the
ultimate purchaser receives this title or it is placed into service,
whichever comes first.
    (2) An imported vessel that has already been placed into service,
where it has an engine not covered by a certificate of conformity
issued under this part at the time of importation that was manufactured
after the requirements of this part start to apply (see Sec.  1045.1).
    New portable fuel tanks and fuel lines means portable fuel tanks
and fuel lines that have not yet been placed into service, or which are
otherwise offered for sales as new products.
    New propulsion marine engine or new engine means any of the
following things:
    (1) A freshly manufactured propulsion marine engine for which the
ultimate purchaser has never received the equitable or legal title.
This kind of engine might commonly be thought of as ``brand new.'' In
the case of this paragraph (1), the engine is new from the time it is
produced until the ultimate purchaser receives the title or the product
is placed into service, whichever comes first.
    (2) An engine intended to be used as a propulsion marine engine
that was originally manufactured as a motor-vehicle engine, a nonroad
engine that is not a propulsion marine engine, or a stationary engine.
In this case, the engine is no longer a motor-vehicle,

nonpropulsion, or stationary engine and becomes a ``new propulsion
marine engine''. The engine is no longer new when it is placed into
marine service.
    (3) A propulsion marine engine that has been previously placed into
service in an application we exclude under Sec.  1045.5, where that
engine is installed in a vessel that is covered by this part 1045. The
engine is no longer new when it is placed into marine service covered
by this part 1045. For example, this would apply to a auxiliary marine
engine that is becomes a propulsion marine engine.
    (4) An engine not covered by paragraphs (1) through (3) of this
definition that is intended to be installed in a new vessel. The engine
is no longer new when the ultimate purchaser receives a title for the
vessel or the product is placed into service, whichever comes first.
This generally includes installation of used engines in new vessels.
    (5) An imported marine engine, subject to the following provisions:
    (i) An imported marine engine covered by a certificate of
conformity issued under this part that meets the criteria of one or
more of paragraphs (1) through (4) of this definition, where the
original engine manufacturer holds the certificate, is new as defined
by those applicable paragraphs.
    (ii) An imported marine engine covered by a certificate of
conformity issued under this part, where someone other than the
original engine manufacturer holds the certificate (such as when the
engine is modified after its initial assembly), becomes new when it is
imported. It is no longer new when the ultimate purchaser receives a
title for the engine or it is placed into service, whichever comes
first.
    (iii) An imported propulsion marine engine that is not covered by a
certificate of conformity issued under this part at the time of
importation is new, but only if it was produced on or after the dates
shown in the following table. This addresses uncertified engines and
vessels initially placed into service that someone seeks to import into
the United States. Importation of this kind of engine (or vessel
containing such an engine) is generally prohibited by 40 CFR part 1068.

    Applicability of Emission Standards for Propulsion Marine Engines
------------------------------------------------------------------------
                                                         Initial model
                     Engine type                        year of emission
                                                           standards
------------------------------------------------------------------------
Outboard.............................................               1998
Personal watercraft..................................               1999
Sterndrive/inboard...................................               2009
------------------------------------------------------------------------

    Noncompliant engine means an engine that was originally covered by
a certificate of conformity but is not in the certified configuration
or otherwise does not comply with the conditions of the certificate.
    Nonconforming engine means an engine not covered by a certificate
of conformity that would otherwise be subject to emission standards.
    Nonmethane hydrocarbon has the meaning given in 40 CFR 1065.1001.
This generally means the difference between the emitted mass of total
hydrocarbons and the emitted mass of methane.
    Nonroad means relating to nonroad engines, or vessels, or equipment
that include nonroad engines.
    Nonroad engine has the meaning given in 40 CFR 1068.30. In general,
this means all internal-combustion engines except motor vehicle
engines, stationary engines, engines used solely for competition, or
engines used in aircraft.
    Official emission result means the measured emission rate for an
emission-data engine on a given duty cycle before the application of
any deterioration factor.
    Outboard engine means an assembly of a spark-ignition engine and
drive unit used to propel a vessel from a properly mounted position
external to the hull of the vessel. An outboard drive unit is partially
submerged during operation and can be tilted out of the water when not
in use.
    Owners manual means a document or collection of documents prepared
by the engine manufacturer for the owner or operator to describe
appropriate engine maintenance, applicable warranties, and any other
information related to operating or keeping the engine. The owners
manual is typically provided to the ultimate purchaser at the time of
sale.
    Oxides of nitrogen has the meaning given in 40 CFR part 1065.1001.
    Personal watercraft means a vessel less than 4.0 meters (13 feet)
in length that uses an installed internal combustion engine powering a
water jet pump as its primary source of propulsion and is designed with
no open load carrying area that would retain water. The vessel is
designed to be operated by a person or persons positioned on, rather
than within the confines of the hull. A vessel using an outboard engine
as its primary source of propulsion is not a personal watercraft.
    Personal watercraft engine means a spark-ignition engine used to
propel a personal watercraft.
    Placed into service means put into initial use for its intended
purpose.
    Point of first retail sale means the location at which the initial
retail sale occurs. This generally means an equipment dealership, but
may also include an engine seller or distributor in cases where loose
engines are sold to the general public for uses such as replacement
engines.
    Portable marine fuel tank has the meaning given in 40 CFR 1060.801.
    Ramped-modal means relating to the ramped-modal type of steady-
state test described in Sec.  1045.505.
    Revoke has the meaning given in 40 CFR 1068.30. In general this
means to terminate the certificate or an exemption for an engine
family.
    Round has the meaning given in 40 CFR 1065.1001.
    Scheduled maintenance means adjusting, repairing, removing,
disassembling, cleaning, or replacing components or systems
periodically to keep a part or system from failing, malfunctioning, or
wearing prematurely. It also may mean actions you expect are necessary
to correct an overt indication of failure or malfunction for which
periodic maintenance is not appropriate.
    Small-volume engine manufacturer means one of the following:
    (1) An engine manufacturer that had U.S.-directed production of
sterndrive/inboard engines in 2007, with annual worldwide production of
no more than 5,000 sterndrive/inboard engines in any calendar year. For
manufacturers owned by a parent company, this production limit applies
to the production of the parent company and all its subsidiaries.
    (2) An engine manufacturer that we designate to be a small-volume
engine manufacturer under Sec.  1045.635.
    Spark-ignition means relating to a gasoline-fueled engine or any
other type of engine with a spark plug (or other sparking device) and
with operating characteristics significantly similar to the theoretical
Otto combustion cycle. Spark-ignition engines usually use a throttle to
regulate intake air flow to control power during normal operation.
    Steady-state means relating to emission tests in which engine speed
and load are held at a finite set of essentially constant values.
Steady-state tests are either discrete-mode tests or ramped-modal
tests.

    Sterndrive/inboard engine means a spark-ignition engine that is
used to propel a vessel, but is not an outboard engine or a personal
watercraft engine. This includes engines on propeller-driven vessels,
jet boats, air boats, and hovercraft.
    Stoichiometric means relating to the particular ratio of air and
fuel such that if the fuel were fully oxidized, there would be no
remaining fuel or oxygen. For example, stoichiometric combustion in a
gasoline-fueled engine typically occurs at an air-to-fuel mass ratio of
about 14.7:1.
    Suspend has the meaning given in 40 CFR 1068.30. In general this
means to temporarily discontinue the certificate or an exemption for an
engine family.
    Test engine means an engine in a test sample.
    Test sample means the collection of engines selected from the
population of an engine family for emission testing. This may include
testing for certification, production-line testing, or in-use testing.
    Total hydrocarbon has the meaning given in 40 CFR 1065.1001. This
generally means the combined mass of organic compounds measured by the
specified procedure for measuring total hydrocarbon, expressed as a
hydrocarbon with a hydrogen-to-carbon mass ratio of 1.85:1.
    Total hydrocarbon equivalent has the meaning given in 40 CFR
1065.1001. This generally means the sum of the carbon mass
contributions of non-oxygenated hydrocarbons, alcohols and aldehydes,
or other organic compounds that are measured separately as contained in
a gas sample, expressed as exhaust hydrocarbon from petroleum-fueled
locomotives. The hydrogen-to-carbon ratio of the equivalent hydrocarbon
is 1.85:1.
    Ultimate purchaser means, with respect to any new vessel or new
marine propulsion engine, the first person who in good faith purchases
such new vessel or new engine for purposes other than resale.
    United States has the meaning given in 40 CFR 1068.30.
    Upcoming model year means for an engine family the model year after
the one currently in production.
    U.S.-directed production volume means the number of engine units,
subject to the requirements of this part, produced by a manufacturer
for which the manufacturer has a reasonable assurance that sale was or
will be made to ultimate purchasers in the United States.
    Useful life means the period during which a vehicle is required to
comply with all applicable emission standards, specified as a given
number of hours of operation or calendar years, whichever comes first.
See Sec. Sec.  1045.103(e), 1045.105(e), and 1045.107. If an engine has
no hour meter, the specified number of hours does not limit the period
during which an in-use engine is required to comply with emission
standards, unless the degree of service accumulation can be verified
separately.
    Variable-speed engine means an engine that is not a constant-speed
engine.
    Vessel means marine vessel.
    Void has the meaning given in 40 CFR 1068.30. In general this means
to invalidate a certificate or an exemption both retroactively and
prospectively.
    Volatile liquid fuel means any fuel other than diesel or biodiesel
that is a liquid at atmospheric pressure and has a Reid Vapor Pressure
higher than 2.0 pounds per square inch.
    We (us, our) means the Administrator of the Environmental
Protection Agency and any authorized representatives.
    Wide-open throttle means maximum throttle opening. Unless this is
specified at a given speed, it refers to maximum throttle opening at
maximum speed. For electronically controlled or other engines with
multiple possible fueling rates, wide-open throttle also means the
maximum fueling rate at maximum throttle opening under test conditions.

Sec.  1045.805  What symbols, acronyms, and abbreviations does this
part use?

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

ABT Averaging, banking, and trading.
AECD Auxiliary emission control device.
CFR Code of Federal Regulations.
CO carbon monoxide.
CO2 carbon dioxide.
EPA Environmental Protection Agency.
FEL Family Emission Limit.
g gram.
HC hydrocarbon.
hr hour.
kPa kilopascals.
kW kilowatt.
m meter.
NARA National Archives and Records Administration.
NMHC nonmethane hydrocarbons.
NOX oxides of nitrogen (NO and NO2).
NTE not-to-exceed.
psig pounds per square inch of gauge pressure.
RPM revolutions per minute.
SAE Society of Automotive Engineers.
THC total hydrocarbon.
THCE total hydrocarbon equivalent.
U.S.C. United States Code.

Sec.  1045.810  What materials does this part reference?

    Documents listed in this section have been incorporated by
reference into this part. The Director of the Federal Register approved
the incorporation by reference as prescribed in 5 U.S.C. 552(a) and 1
CFR part 51. Anyone may inspect copies at the U.S. EPA, Air and
Radiation Docket and Information Center, 1301 Constitution Ave., NW.,
Room B102, EPA West Building, Washington, DC 20460 or at the National
Archives and Records Administration (NARA). For information on the
availability of this material at NARA, call<PHONE_NUMBER>, or go to:
http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html
.

    (a) SAE material. Table 1 of this section lists material from the
Society of Automotive Engineers that we have incorporated by reference.
The first column lists the number and name of the material. The second
column lists the sections of this part where we reference it. Anyone
may purchase copies of these materials from the Society of Automotive
Engineers, 400 Commonwealth Drive, Warrendale, PA 15096 or http://www.sae.org.

Table 1 follows:

               Table 1 to Sec.   1045.810.--SAE Materials
------------------------------------------------------------------------
                                                           Part 1045
               Document number and name                    reference
------------------------------------------------------------------------
SAE J1930, Electrical/Electronic Systems Diagnostic             1045.135
 Terms, Definitions, Abbreviations, and Acronyms,
 revised May 1998....................................
------------------------------------------------------------------------

    (b) ISO material. Table 2 of this section lists material from the
International Organization for Standardization that we have
incorporated by reference. The first column lists the number and name
of the material. The second column lists the section of this part where
we reference it. Anyone may purchase copies of these materials from the
International Organization for Standardization, Case Postale 56, CH-

1211 Geneva 20, Switzerland or http://www.iso.org. Table 2 follows:

               Table 2 to Sec.   1045.810.--ISO Materials
------------------------------------------------------------------------
           Document number and name               Part 1045  reference
------------------------------------------------------------------------
ISO 9141-2 Road vehicles--Diagnostic systems-- 1045.110
 Part 2: CARB requirements for interchange of
 digital information, February 1994.
ISO 14230-4 Road vehicles--Diagnostic          1045.110
 systems--Keyword Protocol 2000--Part 4:
 Requirements for emission-related systems,
 June 2000.
------------------------------------------------------------------------

Sec.  1045.815  What provisions apply to confidential information?

    (a) Clearly show what you consider confidential by marking,
circling, bracketing, stamping, or some other method.
    (b) We will store your confidential information as described in 40
CFR part 2. Also, we will disclose it only as specified in 40 CFR part
2. This applies both to any information you send us and to any
information we collect from inspections, audits, or other site visits.
    (c) If you send us a second copy without the confidential
information, we will assume it contains nothing confidential whenever
we need to release information from it.
    (d) If you send us information without claiming it is confidential,
we may make it available to the public without further notice to you,
as described in 40 CFR 2.204.

Sec.  1045.820  How do I request a hearing?

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

Sec.  1045.825  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 and vessels regulated under this part:
    (a) We specify the following requirements related to engine
certification in this part 1045:
    (1) In Sec.  1045.20 we require vessel manufacturers to label their
vessels if they are relying on component certification.
    (2) In Sec.  1045.135 we require engine manufacturers to keep
certain records related to duplicate labels sent to vessel
manufacturers.
    (3) In Sec.  1045.145 we include various reporting and
recordkeeping requirements related to interim provisions.
    (4) In subpart C of this part we identify a wide range of
information required to certify engines.
    (5) In Sec. Sec.  1045.345 and 1045.350 we specify certain records
related to production-line testing.
    (6) In Sec. Sec.  1045.420 and 1045.425 we specify certain records
related to in-use testing.
    (7) In subpart G of this part we identify several reporting and
recordkeeping items for making demonstrations and getting approval
related to various special compliance provisions.
    (8) In Sec. Sec.  1045.725, 1045.730, and 1045.735 we specify
certain records related to averaging, banking, and trading.
    (b) We specify the following requirements related to vessel or
component certification in 40 CFR part 1060:
    (1) In 40 CFR 1060.20 we give an overview of principles for
reporting information.
    (2) In 40 CFR part 1060, subpart C, we identify a wide range of
information required to certify products.
    (3) In 40 CFR 1060.301 we require manufacturers to make engines or
vessels available for our testing if we make such a request.