t = elapsed time in the driving schedule as measured by the dynamometer, in seconds.  Let ti-1 = 0 for i = 0.
g = gravitational acceleration = 9.81 m/s[2].
*	*	*	*	*

Subpart D -- Coastdown

102.   Section 1066.301 is amended by adding introductory text to read as follows:
§ 1066.301 Overview of road-load determination procedures.
Vehicle testing on a chassis dynamometer involves simulating the road-load force, which is the sum of forces acting on a vehicle from aerodynamic drag, tire rolling resistance, driveline losses, and other effects of friction.  Determine dynamometer settings to simulate road-load force in two stages.  First, perform a road-load force specification by characterizing on-road operation.  Second, perform a road-load derivation to determine the appropriate dynamometer load settings to simulate the road-load force specification from the on-road test.
*	*	*	*	*

103.   Section 1066.310 is amended by revising paragraph (b)(7)(ii)(D) to read as follows:
§ 1066.310 Coastdown procedures for vehicles above 14,000 pounds GVWR.
*	*	*	*	*
(b)	*	*	*
(7)	*	*	*
(ii)	*	*	*
(D) Plot the data from all the coastdown runs on a single plot of Fi vs. vi[2] to determine the slope correlation, D, based on the following equation:
Fi-MegΔhΔs=Am+Dvi2Fi-MegΔhΔs=Am+Dvi2
      Eq. 1066.310-2
Where:
M = the measured vehicle mass.
g = gravitational acceleration = 9.81 m/s[2].
Δh = change in elevation over the measurement interval, in m.  Assume Δh = 0 if you are not correcting for grade.
Δs = distance the vehicle travels down the road during the measurement interval, in m.
Am = the calculated value of the y-intercept based on the curve-fit.
*	*	*	*	*
 = mean ambient absolute temperature during testing, in K.
 = average ambient pressuring during the test, in kPa.

104. Part 1068 is revised to read as follows:

PART 1068 --  GENERAL COMPLIANCE PROVISIONS FOR HIGHWAY, STATIONARY, AND NONROAD PROGRAMS
Subpart A -- Overview and Applicability	838
Subpart B -- Emission Standards and Related Requirements	838
1033.102  Transition to the standards of this part.	838
Subpart C -- Certifying Engine Families	839
1033.201  General requirements for obtaining a certificate of conformity.	839
1033.225  Amending applications for certification.	840
1033.245  Deterioration factors.	840
1033.520  Alternative ramped modal cycles.	843
1042.705  Generating and calculating emission credits.	1039
Subpart A -- Overview and Applicability	1044
1042.1  Applicability.	1044
1042.2  Who is responsible for compliance?	1044
1042.30 Submission of information.	1045
Subpart B -- Emission Standards and Related Requirements	1045
1042.101  Exhaust emission standards.	1045
1042.104  Exhaust emission standards for Category 3 engines.	1051
1042.110  Recording reductant use and other diagnostic functions.	1051
1042.120  Emission-related warranty requirements.	1052
1042.125  Maintenance instructions.	1052
1042.130  Installation instructions for vessel manufacturers.	1053
1042.135  Labeling.	1053
1042.140  Maximum engine power, displacement, power density, and maximum in-use engine speed.	1055
1042.201  General requirements for obtaining a certificate of conformity.	1055
1042.205  Application requirements.	1055
1042.225  Amending applications for certification.	1056
1042.235  Emission testing related to certification.	1057
1042.240  Demonstrating compliance with exhaust emission standards.	1057
1042.250  Recordkeeping and reporting.	1057
1042.255  EPA decisions.	1058
1042.302  Applicability of this subpart for Category 3 engines.	1058
Subpart F -- Test Procedures	1059
1042.501  How do I run a valid emission test?	1059
1042.505  Testing engines using discrete-mode or ramped-modal duty cycles.	1059
1042.515  Test procedures related to not-to-exceed standards.	1059
1042.525  How do I adjust emission levels to account for infrequently regenerating aftertreatment devices?	1060
1042.601  General compliance provisions for marine engines and vessels.	1061
1042.605  Dressing engines already certified to other standards for nonroad or heavy-duty highway engines for marine use.	1061
1042.610  Certifying auxiliary marine engines to land-based standards.	1062
1042.630  Personal-use exemption.	1062
1042.635  National security exemption.	1062
1042.650  Migratory vessels.	1062
1042.655  Special certification provisions for - Category 3 engines with aftertreatment.	1063
1042.660  Requirements for vessel manufacturers, owners, and operators.	1063
1042.670  Special provisions for gas turbine engines.	1064
1042.701  General provisions.	1064
1042.705  Generating and calculating emission credits.	1064
1042.710  Averaging emission credits.	1065
1042.725  Information required for the application for certification.	1065
1042.730  ABT reports.	1065
1042.735  Recordkeeping.	1066
1042.830  Labeling.	1066
1042.840  Application requirements for remanufactured engines.	1067
1042.901  Definitions.	1068
1042.905  Symbols, acronyms, and abbreviations.	1069
1042.910  Reference materials.	1070
1042.915  Confidential information.	1071
1042.925  Reporting and recordkeeping requirements.	1071
Appendix II to Part 1042 --  Steady-state Duty Cycles	1072
Appendix III to Part 1042 --  Not-to-Exceed Zones	1075
Subpart A -- Applicability and Miscellaneous Provisions	1095
1068.1  Does this part apply to me?	1095
1068.2  How does this part apply for engines and how does it apply for equipment?	1097
1068.5  How must manufacturers apply good engineering judgment?	1097
1068.10  What provisions apply to confidential information?	1098
1068.15  What general provisions apply for EPA decision-making?	1098
1068.20  May EPA enter my facilities for inspections?	1099
1068.25  What information must I give to EPA?	1099
1068.27  May EPA conduct testing with my production engines/equipment?	1100
1068.30  What definitions apply to this part?	1100
1068.31  What provisions apply to nonroad or stationary engines that change their status?	1106
1068.40  What special provisions apply for implementing changes in the regulations?	1109
1068.45  General  labeling provisions.	1110
1068.95  What materials does this part reference?	1111
Subpart B -- Prohibited Actions and Related Requirements	1112
1068.101  What general actions does this regulation prohibit?	1112
1068.103 What are the provisions related to the duration and applicability of certificates of conformity?	1116
1068.105  What other provisions apply to me specifically if I manufacture equipment needing certified engines?	1119
1068.110  What other provisions apply to engines/equipment in service?	1120
1068.115  When must manufacturers honor emission-related warranty claims?	1121
1068.120  What requirements must I follow to rebuild engines?	1121
1068.125  What happens if I violate the regulations?	1123
Subpart C --  Exemptions and Exclusions	1125
1068.201  Does EPA exempt or exclude any engines/equipment from the prohibited acts?	1125
1068.210  What are the provisions for exempting test engines/equipment?	1126
1068.215  What are the provisions for exempting manufacturer-owned engines/equipment?	1127
1068.220  What are the provisions for exempting display engines/equipment?	1128
1068.225  What are the provisions for exempting engines/equipment for national security?	1128
1068.230  What are the provisions for exempting engines/equipment for export?	1129
1068.235  What are the provisions for exempting engines/equipment used solely for competition?	1130
1068.240  What are the provisions for exempting new replacement engines?	1130
1068.245  What temporary provisions address hardship due to unusual circumstances?	1135
1068.250 What are the provisions for extending compliance deadlines for small businesses under hardship?	1136
1068.255  What are the provisions for exempting engines and fuel-system components for hardship for equipment manufacturers and secondary engine manufacturers?	1138
1068.260  What general provisions apply for selling or shipping engines that are not yet in their certified configuration?	1139
1068.261  What provisions apply for selling or shipping certified engines that are not yet in the certified configuration?	1141
1068.262  What are the provisions for temporarily exempting engines for shipment to secondary engine manufacturers?	1145
1068.265  What provisions apply to engines/equipment that are conditionally exempted from certification?	1147
Subpart D -- Imports	1148
1068.305  How do I get an exemption or exclusion for imported engines/equipment?	1149
1068.325  What are the temporary exemptions for imported engines/equipment?	1151
1068.360 What restrictions apply to assigning a model year to imported engines and equipment?	1153
Subpart E -- Selective Enforcement Auditing	1154
1068.401  What is a selective enforcement audit?	1154
1068.405  What is in a test order?	1154
1068.410  How must I select and prepare my engines/equipment?	1155
1068.415  How do I test my engines/equipment?	1156
1068.420  How do I know when my engine family fails an SEA?	1157
1068.425  What happens if one of my production-line engines/equipment exceeds the emission standards?	1157
1068.430  What happens if a family fails an SEA?	1158
1068.435  May I sell engines/equipment from a family with a suspended certificate of conformity?	1158
1068.440  How do I ask EPA to reinstate my suspended certificate?	1158
1068.445  When may EPA revoke my certificate under this subpart and how may I sell these engines/equipment again?	1158
1068.450  What records must I send to EPA?	1159
1068.455  What records must I keep?	1159
Appendix A to Subpart E of Part 1068 -- Plans for Selective Enforcement Auditing	1160
Subpart F -- Reporting Defects and Recalling Engines/Equipment	1162
1068.501  How do I report emission-related defects?	1162
1068.505  How does the recall program work?	1166
1068.510  How do I prepare and apply my remedial plan?	1167
1068.515  How do I mark or label repaired engines/equipment?	1168
1068.520  How do I notify affected owners?	1168
1068.525  What records must I send to EPA?	1169
1068.530  What records must I keep?	1169
1068.535  How can I do a voluntary recall for emission-related problems?	1170
Appendix I to Part 1068 -- Emission-Related Components	1174
Appendix II to Part 1068 -- Emission-Related Parameters and Specifications	1175
Appendix III to Part 1068 --  High-Altitude Counties	1177

Authority:  42 U.S.C. 7401-7671q.
Subpart A -- Applicability and Miscellaneous Provisions

§1068.1  Does this part apply to me?
(a) The provisions of this part apply to everyone with respect to the engine and equipment categories as described in this paragraph (a).  They apply to everyone, including owners, operators, parts manufacturers, and persons performing maintenance.  Where we identify an engine category, the provisions of this part also apply with respect to the equipment using such engines. This part 1068 applies to different engine and equipment categories as follows:
   (1) This part 1068 applies to motor vehicles we regulate under 40 CFR part 86, subpart S, to the extent and in the manner specified in 40 CFR parts 85 and 86.
   (2) This part 1068 applies for heavy-duty motor vehicles certified under 40 CFR part 1037, subject to the provisions of 40 CFR parts 85 and 1037.  This part 1068 applies to other heavy-duty motor vehicles and motor vehicle engines to the extent and in the manner specified in 40 CFR parts 85, 86, and 1036.
   (3) This part 1068 applies to highway motorcycles we regulate under 40 CFR part 86, subparts E and F, to the extent and in the manner specified in 40 CFR parts 85 and 86.
   (4) This part 1068 applies to aircraft we regulate under 40 CFR part 87 to the extent and in the manner specified in 40 CFR part 87.
   (5) This part 1068 applies for locomotives, subject to the provisions of 40 CFR part 1033.  This part 1068 does not apply for locomotives or locomotive engines that were originally manufactured before July 7, 2008, and that have not been remanufactured on or after July 7, 2008.
   (6) This part 1068 applies for land-based nonroad compression-ignition engines, subject to the provisions of 40 CFR part 1039.  This part 1068 does not apply for engines certified under 40 CFR part 89.
   (7) This part 1068 applies for stationary compression-ignition engines certified using the provisions of 40 CFR parts 89, 94, 1039, and 1042 as described in 40 CFR part 60, subpart IIII.
   (8) This part 1068 applies for marine compression-ignition engines, subject to the provisions of 40 CFR part 1042.  This part 1068 does not apply for marine compression-ignition engines certified under 40 CFR part 94.
   (9) This part 1068 applies for marine spark-ignition engines, subject to the provisions of 40 CFR part 1045.  This part 1068 does not apply for marine spark-ignition engines certified under 40 CFR part 91.
   (10) This part 1068 applies for large nonroad spark-ignition engines, subject to the provisions of 40 CFR part 1048.
   (11) This part 1068 applies for stationary spark-ignition engines certified using the provisions of 40 CFR part 1048 or part 1054, as described in 40 CFR part 60, subpart JJJJ.
   (12) This part 1068 applies for recreational engines and vehicles, including snowmobiles, off-highway motorcycles, and all-terrain vehicles, subject to the provisions of 40 CFR part 1051.
   (13) This part applies for small nonroad spark-ignition engines, subject to the provisions of 40 CFR part 1054.  This part 1068 does not apply for nonroad spark-ignition engines certified under 40 CFR part 90.
   (14) This part applies for fuel-system components installed in nonroad equipment powered by volatile liquid fuels, subject to the provisions of 40 CFR part 1060.
   (b) [Reserved]
(c) Paragraph (a) of this section identifies the parts of the CFR that define emission standards and other requirements for particular types of engines and equipment. This part 1068 refers to each of these other parts generically as the "standard-setting part." For example, 40 CFR part 1051 is always the standard-setting part for snowmobiles. Follow the provisions of the standard-setting part if they are different than any of the provisions in this part.
(d)  Specific provisions in this part 1068 start to apply separate from the schedule for certifying engines/equipment to new emission standards, as follows:
   (1) The provisions of §§1068.30 and 1068.310 apply for stationary spark-ignition engines built on or after January 1, 2004, and for stationary compression-ignition engines built on or after January 1, 2006.
   (2) The provisions of §§1068.30 and 1068.235 apply for the types of engines/equipment listed in paragraph (a) of this section beginning January 1, 2004, if they are used solely for competition.
   (3) The standard-setting part may specify how the provisions of this part 1068 apply for uncertified engines/equipment.

§1068.2  How does this part apply for engines and how does it apply for equipment?
(a) See the standard-setting part to determine if engine-based and/or equipment-based standards apply.  (Note: Some equipment is subject to engine-based standards for exhaust emission and equipment-based standards for evaporative emissions.)
(b) The provisions of this part apply differently depending on whether the engine or equipment is required to be certified.
   (1) Subpart A and subpart B of this part apply to engines and equipment, without regard to which is subject to certification requirements in the standard-setting part.
   (2) Subparts C, D, and E of this part apply to the engines or to the equipment, whichever is subject to certification requirements in the standard-setting part.
   (3) Subpart F of this part generally applies to the engines or to the equipment, whichever is subject to standards under the standard-setting part.  However, since subpart F of this part addresses in-use engines and equipment (in which the engine is installed in the equipment), the requirements do not always distinguish between engines and equipment.
(c) For issues related to testing, read the term "engines/equipment" to mean engines for engines subject to engine-based testing and equipment for equipment subject to equipment-based testing; otherwise, read the term "engines/equipment" to mean engines for sources subject to engine-based standards and equipment for sources subject to equipment-based standards.
(d) When we use the term engines (rather than engines/equipment), read it to mean engines without regard to whether the source is subject to engine-based standards or testing.  When we use the term equipment (rather than engines/equipment), read it to mean equipment without regard to whether the source is subject to equipment-based standards or testing.   (Note: The definition of "equipment" in §1068.30 includes the engine.)
(e) The terminology convention described in this section is not intended to limit our authority or your obligations under the Clean Air Act.

§1068.5  How must manufacturers apply good engineering judgment?
(a) You must use good engineering judgment for decisions related to any requirements under this chapter.  This includes your applications for certification, any testing you do to show that your certification, production-line, and in-use engines/equipment comply with requirements that apply to them, and how you select, categorize, determine, and apply these requirements.
(b)  If we send you a written request, you must give us a written description of the engineering judgment in question.  Respond within 15 working days of receiving our request unless we allow more time.
(c)  We may reject your decision if it is not based on good engineering judgment or is otherwise inconsistent with the requirements that apply, based on the following provisions:
   (1)  We may suspend, revoke, or void a certificate of conformity if we determine you deliberately used incorrect information or overlooked important information, that you did not decide in good faith, or that your decision was not rational.
   (2)  If we believe a different decision would better reflect good engineering judgment, but none of the provisions of paragraph (c)(1) of this section apply, we will tell you of our concern (and its basis).  You will have 30 days to respond to our concerns, or more time if we agree that you need it to generate more information.  After considering your information, we will give you a final ruling.  If we conclude that you did not use good engineering judgment, we may reject your decision and apply the new ruling to similar situations as soon as possible.
(d)  We will tell you in writing of the conclusions we reach under paragraph (c) of this section and explain our reasons for them.
(e)  If you disagree with our conclusions, you may file a request for a hearing with the Designated Compliance Officer as described in subpart G of this part.  In your request, specify your objections, include data or supporting analysis, and get your authorized representative's signature.  If we agree that your request raises a substantial factual issue, we will hold the hearing according to subpart F of this part.

§1068.10  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.

§1068.15  General provisions for EPA decision-making.
(a) Not all EPA employees may represent the Agency with respect to EPA decisions under this part or the standard-setting part.  Only the Administrator of the Environmental Protection Agency or an official to whom the Administrator has delegated specific authority may represent the Agency.  For more information, ask for a copy of the relevant sections of the EPA Delegations Manual from the Designated Compliance Officer.
(b) The regulations in this part and in the standard-setting part have specific requirements describing how to get EPA approval before you take specific actions.  These regulations also allow us to waive some specific requirements.  For provisions or flexibilities that we address frequently, we may choose to provide detailed guidance in supplemental compliance instructions for manufacturers.  Such instructions will generally state how they relate to the need for pre-approval.  Unless we explicitly state so, you should not consider full compliance with the instructions to be equivalent to EPA approval.

§1068.20  May EPA enter my facilities for inspections?
(a) We may inspect your testing, manufacturing processes, storage facilities (including port facilities for imported engines and equipment or other relevant facilities), or records, as authorized by the Clean Air Act, to enforce the provisions of this chapter.  Inspectors will have authorizing credentials and will limit inspections to reasonable times -- usually, normal operating hours.
(b) We may select any facility to do any of the following:
   (1) Inspect and monitor any aspect of engine or equipment manufacturing, assembly, storage, or other procedures, and any facilities where you do them.
   (2) Inspect and monitor any aspect of engine or equipment test procedures or test-related activities, including test engine/equipment selection, preparation, service accumulation, emission duty cycles, and maintenance and verification of your test equipment's calibration.
   (3) Inspect and copy records or documents related to assembling, storing, selecting, and testing an engine or piece of equipment.
   (4) Inspect and photograph any part or aspect of engines or equipment and components you use for assembly.
(c) You must give us reasonable help without charge during an inspection authorized by the Clean Air Act.  For example, you may need to help us arrange an inspection with the facility's managers, including clerical support, copying, and translation.  You may also need to show us how the facility operates and answer other questions.  If we ask in writing to see a particular employee at the inspection, you must ensure that he or she is present (legal counsel may accompany the employee).
(d)  If you have facilities in other countries, we expect you to locate them in places where local law does not keep us from inspecting as described in this section.  We will not try to inspect if we learn that local law prohibits it, but we may suspend your certificate if we are not allowed to inspect.

§1068.25  What information must I give to EPA?
If you are subject to the requirements of this part, we may require you to give us information to evaluate your compliance with any regulations that apply, as authorized by the Clean Air Act.  This includes the following things:
(a) You must provide the information we require in this chapter.  We may require an authorized representative of your company to approve and sign any submission of information to us, and to certify that the information is accurate and complete.
(b) You must establish and maintain records, perform tests, make reports and provide additional information that we may reasonably require under section 208 of the Clean Air Act (42 U.S.C. 7542).  This also applies to engines/equipment we exempt from emission standards or prohibited acts.  Unless we specify otherwise, you must keep required records for eight years.
(c) You are responsible for statements and information in your applications for certification or any other requests or reports.  If you provide statements or information to someone for submission to EPA, you are responsible for these statements and information as if you had submitted them to EPA yourself.  For example, knowingly submitting false information to someone else for inclusion in an application for certification would be deemed to be a submission of false information to the U.S. government in violation of 18 U.S.C. 1001.

§1068.27 May EPA conduct testing with my engines/equipment?
(a) As described in the standard-setting part, we may perform testing on your engines/equipment before we issue a certificate of conformity.  This is generally known as confirmatory testing.
(b) If we request it, you must make a reasonable number of production-line engines or pieces of production-line equipment available for a reasonable time so we can test or inspect them for compliance with the requirements of this chapter.
(c) If your emission-data engine/equipment or production engine/equipment requires special components for proper testing, you must promptly provide any such components to us if we ask for them.

§1068.30  Definitions.
	The following definitions apply to this part.  The definitions apply to all subparts unless we note otherwise.  All undefined terms have the meaning the Clean Air Act gives to them.  The definitions follow:
	Affiliated companies or affiliates means one of the following:
(1) For determinations related to small manufacturer allowances or other small business provisions, these terms mean all entities considered to be affiliates with your entity under the Small Business Administration's regulations in  13 CFR 121.103.
(2) For all other provisions, these terms mean all of the following:
   (i) Parent companies (as defined in this section).
   (ii) Subsidiaries (as defined in this section).
   (iii) Subsidiaries of your parent company.
	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 reduce emissions in the engine exhaust before it is exhausted to the environment.  Exhaust-gas recirculation (EGR) is not aftertreatment.
	Aircraft means any vehicle capable of sustained air travel more than 100 feet above the ground.
	Certificate holder means a manufacturer (including importers) with a valid certificate of conformity for at least one family in a given model year, or the preceding model year.  Note that only manufacturers may hold certificates.  Your applying for or accepting a certificate is deemed to be your agreement that you are a manufacturer.
	Clean Air Act means the Clean Air Act, as amended, 42 U.S.C. 7401- 7671q.
	Date of manufacture means one of the following:
(1) For engines, the date on which the crankshaft is installed in an engine block, with the following exceptions:
   (i) For engines produced by secondary engine manufacturers under §1068.262, date of manufacture means the date the engine is received from the original engine manufacturer.  You may assign an earlier date up to 30 days before you received the engine, but not before the crankshaft was installed.  You may not assign an earlier date if you cannot demonstrate the date the crankshaft was installed.
   (ii) Manufacturers may assign a date of manufacture at a point in the assembly process later than the date otherwise specified under this definition.  For example, a manufacturer may use the build date printed on the label or stamped on the engine as the date of manufacture.
(2) For equipment, the date on which the engine is installed, unless otherwise specified in the standard-setting part.  Manufacturers may alternatively assign a date of manufacture later in the assembly process.
	Days means calendar days, including weekends and holidays.
   Defeat device has the meaning given in the standard-setting part.
Designated Compliance Officer means one of the following:
(1) For motor vehicles regulated under 40 CFR part 86, subpart S: Director, Light-Duty Vehicle Center, U.S. Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105<EMAIL_ADDRESS>(2) For compression-ignition engines used in heavy-duty highway vehicles regulated under 40 CFR part 86, subpart A, and 40 CFR parts 1036 and 1037, and for nonroad and stationary compression-ignition engines or equipment regulated under 40 CFR parts 60, 1033, 1039, and 1042: Director, Diesel Engine Compliance Center, U.S. Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105<EMAIL_ADDRESS>(3) Director, Gasoline Engine Compliance Center, U.S. Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105<EMAIL_ADDRESS>for all the following engines and vehicles:
   (i) For spark-ignition engines used in heavy-duty highway vehicles regulated under 40 CFR part 86, subpart A, and 40 CFR parts 1036 and 1037,
   (ii) For highway motorcycles regulated under 40 CFR part 86, subpart E.
(iii) For nonroad and stationary spark-ignition engines or equipment regulated under 40 CFR parts 60, 1045, 1048, 1051, 1054, and 1060.
	Engine means an engine block with an installed crankshaft, or a gas turbine engine. The term engine does not include engine blocks without an installed crankshaft, nor does it include any assembly of reciprocating engine components that does not include the engine block. (Note: For purposes of this definition, any component that is the primary means of converting an engine's energy into usable work is considered a crankshaft, whether or not it is known commercially as a crankshaft.) This includes complete and partially complete engines as follows:
(1) A complete engine is a fully assembled engine in its final configuration.  In the case of equipment-based standards, an engine is not considered complete until it is installed in the equipment, even if the engine itself is fully assembled.
(2) A partially complete engine is an engine that is not fully assembled or is not in its final configuration.  Except where we specify otherwise in this part or the standard-setting part, partially complete engines are subject to the same standards and requirements as complete engines.  The following would be considered examples of partially complete engines:
   (i) An engine that is missing certain emission-related components.
   (ii) A new engine that was originally assembled as a motor-vehicle engine that will be recalibrated for use as a nonroad engine.
   (iii) A new engine that was originally assembled as a land-based engine that will be modified for use as a marine propulsion engine.
   (iv) A short block consisting of a crankshaft and other engine components connected to the engine block, but missing the head assembly.
   (v) A long block consisting of all engine components except the fuel system and an intake manifold.
   (vi) In the case of equipment-based standards, a fully functioning engine that is not yet installed in the equipment.  For example, a fully functioning engine that will be installed in an off-highway motorcycle or a locomotive is considered partially complete until it is installed in the equipment.
	Engine-based standard means an emission standard expressed in units of grams of pollutant per kilowatt-hour (or grams of pollutant per horsepower-hour) that applies to the engine.  Emission standards are either engine-based or equipment-based.  Note that engines may be subject to additional standards such as smoke standards.
	Engine-based test means an emission test intended to measure emissions in units of grams of pollutant per kilowatt-hour (or grams of pollutant per horsepower-hour), without regard to whether the standard applies to the engine or equipment.  Note that some products that are subject to engine-based testing are subject to additional test requirements such as for smoke.
	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 or factors unrelated to emissions.
	Engine/equipment and engines/equipment mean engine(s) and/or equipment depending on the context.  Specifically these terms mean the following:
(1) Engine(s) when only engine-based standards apply.
(2) Engine(s) for testing issues when engine-based testing applies.
(3) Engine(s) and equipment when both engine-based and equipment-based standards apply.
(4) Equipment when only equipment-based standards apply.
(5) Equipment for testing issues when equipment-based testing applies.
	Equipment means one of the following things:
(1) Any vehicle, vessel, or other type of equipment that is subject to the requirements of this part or that uses an engine that is subject to the requirements of this part.  An installed engine is part of the equipment.
(2) Fuel-system components that are subject to an equipment-based standard under this chapter.  Installed fuel-system components are also considered part of the engine/equipment to which they are attached.
	Equipment-based standard means an emission standard that applies to the equipment in which an engine is used or to fuel-system components associated with an engine, without regard to how the emissions are measured.  If equipment-based standards apply, we require that the equipment or fuel-system components be certified rather than just the engine.  Emission standards are either engine-based or equipment-based.   For example, recreational vehicles we regulate under 40 CFR part 1051 are subject to equipment-based standards even if emission measurements are based on engine operation alone.
Excluded engines/equipment means engines/equipment that are not subject to emission standards or other requirements because they do not meet the definitions or other regulatory provisions that define applicability.  For example, a non-stationary engine that is used solely for off-highway competition is excluded from the requirements of this part because it meets neither the definition of "motor vehicle engine" nor "nonroad engine" under section 216 of the Clean Air Act.
	Exempted means relating to engines/equipment that are not required to meet otherwise applicable standards.  Exempted engines/equipment must conform to regulatory conditions specified for an exemption in this part 1068 or in the standard-setting part.  Exempted engines/equipment are deemed to be "subject to" the standards of the standard-setting part even though they are not required to comply with the otherwise applicable requirements.  Engines/equipment exempted with respect to a certain tier of standards may be required to comply with an earlier tier of standards as a condition of the exemption; for example, engines exempted with respect to Tier 3 standards may be required to comply with Tier 1 or Tier 2 standards.
	Family means engine family or emission family, as applicable under the standard-setting part.
	Final deteriorated test result has the meaning given in the standard-setting part.  If it is not defined in the standard-setting part, it means the emission level that results from applying all appropriate adjustments (such as deterioration factors) to the measured emission result of the emission-data engine.
	Gas turbine engine means anything commercially known as a gas turbine engine or any collection of assembled engine components that is substantially similar to engines commercially known as gas turbine engines.  For example, a jet engine is a gas turbine engine.  Gas turbine engines may be complete or partially complete.  Turbines that rely on external combustion such as steam engines are not gas turbine engines.
	Good engineering judgment means judgments made consistent with generally accepted scientific and engineering principles and all available relevant information.  See §1068.5.
	Manufacturer has the meaning given in section 216(1) of the Clean Air Act (42 U.S.C. 7550(1)).  In general, this term includes any person who manufactures or assembles an engine or piece of equipment for sale in the United States or otherwise introduces a new engine or piece of equipment into U.S. commerce.  This includes importers that import new engines or new equipment into the United States for resale.  It also includes secondary engine manufacturers.
	Model year has the meaning given in the standard-setting part.  Unless the standard-setting part specifies otherwise, model year for individual engines/equipment is based on the date of manufacture or a later stage in the assembly process determined by the manufacturer, subject to the limitations described in §§1068.103 and 1068.360.  The model year of a new engine that is neither certified nor exempt is deemed to be the calendar year in which it is sold, offered for sale, imported, or delivered or otherwise introduced into U.S. commerce.
	Motor vehicle has the meaning given in 40 CFR 85.1703(a).
	New has the meaning we give it in the standard-setting part.  Note that in certain cases, used and remanufactured engines/equipment may be "new" engines/equipment.
	Nonroad engine means:
(1) Except as discussed in paragraph (2) of this definition, a nonroad engine is an internal combustion engine that meets any of the following criteria:
   (i) It is (or will be) used in or on a piece of equipment that is self-propelled or serves a dual purpose by both propelling itself and performing another function (such as garden tractors, off-highway mobile cranes and bulldozers).
   (ii) It is (or will be) used in or on a piece of equipment that is intended to be propelled while performing its function (such as lawnmowers and string trimmers).
   (iii) By itself or in or on a piece of equipment, it is portable or transportable, meaning designed to be and capable of being carried or moved from one location to another. Indicia of transportability include, but are not limited to, wheels, skids, carrying handles, dolly, trailer, or platform.
(2) An internal combustion engine is not a nonroad engine if it meets any of the following criteria:
   (i) The engine is used to propel a motor vehicle, an aircraft, or equipment used solely for competition.
   (ii) The engine is regulated under 40 CFR part 60, (or otherwise regulated by a federal New Source Performance Standard promulgated under section 111 of the Clean Air Act (42 U.S.C. 7411)).  Note that this criterion does not apply for engines meeting any of the criteria of paragraph (1) of this definition that are voluntarily certified under 40 CFR part 60.
   (iii) The engine otherwise included in paragraph (1)(iii) of this definition remains or will remain at a location for more than 12 consecutive months or a shorter period of time for an engine located at a seasonal source. A location is any single site at a building, structure, facility, or installation. For any engine (or engines) that replaces an engine at a location and that is intended to perform the same or similar function as the engine replaced, include the consecutive time period in calculating the consecutive time period. An engine located at a seasonal source is an engine that remains at a seasonal source during the full annual operating period of the seasonal source. A seasonal source is a stationary source that remains in a single location on a permanent basis (i.e., at least two years) and that operates at that single location approximately three months (or more) each year. See §1068.31 for provisions that apply if the engine is removed from the location.
Operating hours means:
(1) For engine and equipment storage areas or facilities, times during which people other than custodians and security personnel are at work near, and can access, a storage area or facility.
(2) For other areas or facilities, times during which an assembly line operates or any of the following activities occurs:
   (i) Testing, maintenance, or service accumulation.
   (ii) Production or compilation of records.
   (iii) Certification testing.
   (iv) Translation of designs from the test stage to the production stage.
   (v) Engine or equipment manufacture or assembly.
Parent company means any entity that has a controlling ownership of another company.  Note that the standard-setting part may treat a partial owner as a parent company even if it does not have controlling ownership of a company.
	Piece of equipment means any vehicle, vessel, locomotive, aircraft, or other type of equipment equipped with engines to which this part applies.
	Placed into service means used for its intended purpose.  Engines/equipment do not qualify as being "placed into service" based on incidental use by a manufacturer or dealer.
	Reasonable technical basis means information that would lead a person familiar with engine design and function to reasonably believe a conclusion related to compliance with the requirements of this part.  For example, it would be reasonable to believe that parts performing the same function as the original parts (and to the same degree) would control emissions to the same degree as the original parts.  Note that what is a reasonable basis for a person without technical training might not qualify as a reasonable technical basis.
	Relating to as used in this section means relating to something in a specific, direct manner.  This expression is used in this section only to define terms as adjectives and not to broaden the meaning of the terms.  Note that "relating to" is used in the same manner as in the standard-setting parts.
	Replacement engine means an engine exempted as a replacement engine under §1068.240.
	Revoke means to terminate the certificate or an exemption for a family.  If we revoke a certificate or exemption, you must apply for a new certificate or exemption before continuing to introduce the affected engines/equipment into U.S. commerce.  This does not apply to engines/equipment you no longer possess.
	Secondary engine manufacturer means anyone who produces a new engine by modifying a complete or partially complete engine that was made by a different company.  For the purpose of this definition, "modifying" does not include making changes that do not remove an engine from its original certified configuration.  Secondary engine manufacturing includes, for example, converting automotive engines for use in industrial applications, or land-based engines for use in marine applications.  This applies whether it involves a complete or partially complete engine and whether the engine was previously certified to emission standards or not.
(1) Manufacturers controlled by the manufacturer of the base engine (or by an entity that also controls the manufacturer of the base engine) are not secondary engine manufacturers; rather, both entities are considered to be one manufacturer for purposes of this part.
(2) This definition applies equally to equipment manufacturers that modify engines.  Also, equipment manufacturers that certify to equipment-based standards using engines produced by another company are deemed to be secondary engine manufacturers.
(3) Except as specified in paragraph (2) of this definition, companies importing complete engines into the United States are not secondary engine manufacturers regardless of the procedures and relationships between companies for assembling the engines.
	Small business means either of the following:
(1) A company that qualifies under the standard-setting part for special provisions for small businesses or small-volume manufacturers.
(2) A company that qualifies as a small business under the regulations adopted by the Small Business Administration at 13 CFR 121.201 if the standard-setting part does not establish such qualifying criteria.
	Standard-setting part means a part in the Code of Federal Regulations that defines emission standards for a particular engine and/or piece of equipment (see §1068.1(a)).  For example, the standard-setting part for marine spark-ignition engines is 40 CFR part 1045.  For provisions related to evaporative emissions, the standard-setting part may be 40 CFR part 1060, as specified in 40 CFR 1060.1.
Subsidiary means an entity that is owned or controlled by a parent company.
Suspend means to temporarily discontinue the certificate or an exemption for a family.  If we suspend a certificate, you may not sell, offer for sale, or introduce or deliver into commerce in the United States or import into the United States engines/equipment from that family unless we reinstate the certificate or approve a new one.  This also applies if we suspend an exemption, unless we reinstate the exemption.
	Ultimate purchaser means the first person who in good faith purchases a new engine or new piece of equipment for purposes other than resale.
	United States, in a geographic sense, means the States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, and the U.S. Virgin Islands.
	U.S.-directed production volume has the meaning given in the standard-setting part.
	Void means to invalidate a certificate or an exemption ab initio ("from the beginning").  If we void a certificate, all the engines/equipment introduced into U.S. commerce under that family for that model year are considered uncertified (or nonconforming) and are therefore not covered by a certificate of conformity, and you are liable for all engines/equipment introduced into U.S. commerce under the certificate and may face civil or criminal penalties or both.  This applies equally to all engines/equipment in the family, including engines/equipment introduced into U.S. commerce before we voided the certificate.  If we void an exemption, all the engines/equipment introduced into U.S. commerce under that exemption are considered uncertified (or nonconforming), and you are liable for engines/equipment introduced into U.S. commerce under the exemption and may face civil or criminal penalties or both.  You may not sell, offer for sale, or introduce or deliver into commerce in the United States or import into the United States any additional engines/equipment using the voided exemption.
	Voluntary emission recall means a repair, adjustment, or modification program voluntarily initiated and conducted by a manufacturer to remedy any emission-related defect for which engine owners have been notified.
	We (us, our) means the Administrator of the Environmental Protection Agency and any authorized representatives.

§1068.31  Changing the status of nonroad or stationary engines under the definition of "nonroad engine".
This section specifies the provisions that apply when an engine previously used in a nonroad application is subsequently used in an application other than a nonroad application, or when an engine previously used in a stationary application (i.e., an engine that was not used as a nonroad engine and that was not used to propel a motor vehicle, an aircraft, or equipment used solely for competition) is moved.
(a) Changing the status of a stationary engine to be a new nonroad engine as described in paragraph (b) of this section is a violation of §1068.101(a)(1) or (b)(3) unless the engine has been certified to be compliant with all requirements of this chapter that apply to new nonroad engines of the same type (for example, a compression-ignition engine rated at 40 kW) and model year, and is in its certified configuration.  Note that the definitions of "model year" in the standard-setting parts generally identify the engine's original date of manufacture as the basis for determining which standards apply if it becomes a nonroad engine after it is no longer new.  For example, see 40 CFR 1039.801 and 1048.801.
(b) A stationary engine becomes a new nonroad engine if -
   (1) It is used in an application that meets the criteria specified in paragraphs (1)(i) or (ii) in the definition of "nonroad engine" in §1068.30.
   (2) It meets the criteria specified in paragraph (1)(iii) of the definition of "nonroad engine" in §1068.30 and is moved so that it fails to meet (or no longer meets) the criteria specified in paragraph (2)(iii) in the definition of "nonroad engine" in §1068.30.
(c) A stationary engine does not become a new nonroad engine if it is moved but continues to meet the criteria specified in paragraph (2)(iii) in the definition of "nonroad engine" in §1068.30 in its new location.  For example, a transportable engine that is used in a single specific location for 18 months and is later moved to a second specific location where it will remain for at least 12 months is considered to be a stationary engine in both locations.  Note that for stationary engines that are neither portable nor transportable in actual use, the residence-time restrictions in the definition of "nonroad engine" generally do not apply.
(d) Changing the status of a nonroad engine to be a new stationary engine as described in paragraph (e) of this section is a violation of §1068.101(a)(1) unless the engine complies with all the requirements of this chapter for new stationary engines of the same type (for example, a compression-ignition engine rated at 40 kW) and model year.  For a new stationary engine that is required to be certified under 40 CFR part 60, the engine must have been certified to be compliant with all the requirements that apply to new stationary engines of the same type and model year, and must be in its certified configuration.  Note that the definitions of "model year" in the standard-setting parts generally identify the engine's original date of manufacture as the basis for determining which standards apply if it becomes a stationary engine after it is no longer new.  For example, see 40 CFR 60.4219 and 60.4248.
(e) A nonroad engine ceases to be a nonroad engine and becomes a new stationary engine if -
   (1) At any time, it meets the criteria specified in paragraph (2)(iii) in the definition of "nonroad engine" in §1068.30.  For example, a portable generator engine ceases to be a nonroad engine if it is used or will be used in a single specific location for 12 months or longer.  If we determine that an engine will be or has been used in a single specific location for 12 months or longer, it ceased to be a nonroad engine when it was placed in that location.
   (2) It is otherwise regulated by a federal New Source Performance Standard promulgated under section 111 of the Clean Air Act (42 U.S.C. 7411).
(f) A nonroad engine ceases to be a nonroad engine if it is used to propel a motor vehicle, an aircraft, or equipment used solely for competition.  See 40 CFR part 86 for requirements applicable to motor vehicles and motor vehicle engines.  See 40 CFR part 87 for requirements applicable to aircraft and aircraft engines.  See §1068.235 for requirements applicable to equipment used solely for competition.

§1068.32  Explanatory terms.
This section explains how certain phrases and terms are used in 40 CFR parts 1000 through 1099 , especially those used to clarify and explain regulatory provisions.
(a) Types of provisions.  The term "provision" includes all aspects of the regulations.  As described in this section, regulatory provisions include standards, requirements, prohibitions, and allowances, along with a variety of other types of provisions.  In certain cases, we may use these terms to apply to some but not all of the provisions of a part or section.  For example, we may apply the allowances of a section for certain engines, but not the requirements.  We may also apply all provisions except the requirements and prohibitions.
   (1) A standard is a requirement established by regulation that limits the emissions of air pollutants.  Examples of standards include numerical emission standards (such as 0.01 g/kW-hr) and design standards (such a closed crankcase standard).  Compliance with or conformance to a standard is a specific type of requirement, and in some cases a standard may be discussed as a requirement.  Thus, a statement about the requirements of a part or section also applies with respect to the standards of the part or section.
   (2) The regulations apply other requirements in addition to standards. For example, manufacturers are required to keep records and provide reports to EPA.
   (3) While requirements state what someone must do, prohibitions state what someone may not do.  Prohibitions are often referred to as prohibited acts or prohibited actions.  Most penalties apply for violations of prohibitions.  A list of prohibitions may therefore include the failure to meet a requirement as a prohibited action.
   (4) Allowances provide some form of relief from requirements.  This may include provisions delaying implementation, establishing exemptions or test waivers, or creating alternative compliance options.  Allowances may be conditional.  For example, we may exempt you from certain requirements on the condition that you meet certain other requirements.
   (5) The regulations also include important provisions that are not standards, requirements, prohibitions, or allowances, such as definitions.
   (6) Engines/equipment are generally considered "subject to" a specific provision if that provision applies, or if it does not apply because of an exemption authorized under the regulation.  For example, locomotives are subject to the provisions of 40 CFR part 1033 even if they are exempted from the standards of part 1033.
(b) Singular and plural.  Unless stated otherwise or unless it is clear from the regulatory context, provisions written in singular form include the plural form and provisions written in plural form include the singular form.  For example, the statement "The manufacturer must keep this report for three years" is equivalent to "The manufacturers must keep these reports for three years."
(c) Inclusive lists.  Lists in the regulations prefaced by "including" or "this includes" are not exhaustive.   The terms "including" and "this includes" should be read to mean "including but not limited to" and "this includes but is not limited to".  For example, the phrase "including small manufacturers" does not exclude large manufacturers.  However, prescriptive statements to "include" specific items (such as those related to recordkeeping and reporting requirements) may be exhaustive.
(d) Notes.  Statements that begin with "Note:" or "Note that" are intended to clarify specific regulatory provisions stated elsewhere in the regulations.  By themselves, such statements are not intended to specify regulatory requirements.  Such statements are typically used for regulatory text that, while legally sufficient to specify a requirement, may be misunderstood by some readers.  For example, the regulations might note that a word is defined elsewhere in the regulations to have a specific meaning that may be either narrower or broader than some readers might assume.
(e) Examples.  Examples provided in the regulations are typically introduced by either "for example" or "such as".  Specific examples given in the regulations do not necessarily represent the most common examples.  The regulations may specify examples conditionally (that is, specifying that they are applicable only if certain criteria or conditions are met).  Lists of examples cannot be presumed to be exhaustive lists.
(f) Generally and typically. Statements that begin with "generally", "in general", or "typically" should not be read to apply universally or absolutely.  Rather they are intended to apply for the most common circumstances.  "Generally" and "typically" statements may be identified as notes as described in paragraph (d) of this section.
(g) Unusual circumstances.  The regulations specify certain allowances that apply "in unusual circumstances".  While it is difficult to precisely define what "unusual circumstances" means, this generally refers to specific circumstances that are both rare and unforeseeable.  For example, a severe hurricane in the northeastern United States may be considered to be an unusual circumstance, while a less severe hurricane in the southeastern United States may not be.  Where the regulations limit an allowance to unusual circumstances, manufacturers and others should not presume that such an allowance will be available to them.  Provisions related to unusual circumstances may be described using the phrase "normal circumstances", which are those circumstances that are not unusual circumstances.  (h) Exceptions and other specifications.  Regulatory provisions may be expressed as a general prohibition, requirement, or allowance that is modified by other regulatory text.  Such provisions may include phrases such as "unless specified otherwise", "except as specified", or "as specified in this section".   It is important that the exceptions and the more general statement be considered together.  This regulatory construct is intended to allow the core requirement or allowance to be stated in simple, clear sentences, rather than more precise and comprehensive sentences that may be misread.  For example, where an action is prohibited in most but not all circumstances, the provision may state that you may not take the action, "except as specified in this section."  The exceptions could then be stated in subsequent regulatory text.

§1068.35  Symbols, acronyms, and abbreviations.
The following symbols, acronyms, and abbreviations apply to this part:
$
U.S. dollars.
CFR
Code of Federal Regulations.
disp
engine displacement.
EPA
Environmental Protection Agency.
kW
kilowatt.
L/cyl
liters per cylinder.
NARA
National Archives and Records Administration.
NOx
Oxides of nitrogen.
SAE
Society of Automotive Engineers.
SEA
selective enforcement audit.
U.S.
United States.
U.S.C.
United States Code.

§1068.40  Special provisions for implementing changes in the regulations.
(a) During the 12 months following the effective date of any change in the provisions of this part, you may ask to apply the previously applicable provisions. Note that the effective date is generally 30 or 60 days after publication in the Federal Register, as noted in the final rule.  We will generally approve your request if you can demonstrate that it would be impractical to comply with the new requirements. We may consider the potential for adverse environmental impacts in our decision. Similarly, in unusual circumstances, you may ask for relief under this paragraph (a) from new requirements that apply under the standard-setting part.
(b) During the 60 days following the effective date of any change in the provisions of this part, you may use the previously applicable provisions without request if they meet either of the following criteria:
   (1) The new provisions require you to redesign your engines/equipment, modify your engine/equipment labels, or change your production procedures.
   (2) The new provisions change what you must include in an application for certification that you submit before the end of this 60-day period.  You are not required to amend such applications to comply with the new provisions for that model year; however, this allowance does not apply for later model years, even if you certify an engine family using carryover emission data.  This allowance does not affect your obligation to provide information that we request separate from an application for certification.

§1068.45  General  labeling provisions.
The provisions of this part and the standard-setting part include a variety of labeling requirements.  The following general provisions apply:
(a) Permanent labels.  Where we specify that you apply a permanent label, you must meet the following requirements unless the standard-setting part includes other specific label requirements:
   (1)  Attach the label so no one can remove it without destroying or defacing it.
   (2)  Make sure it is durable and readable for the engine/equipment's entire life.
   (3)  Secure it to a part of the engine/equipment needed for normal operation and not normally requiring replacement.
   (4)  Write it in English.
   (5)  Make the labels readily visible to the average person after all installation and assembly are complete.
(b) Removable labels.  Where we specify that you apply a removable label, it must meet the following conditions:
   (1) You must attach the label in a way that does not allow it to be separated from the engine/equipment without a deliberate effort.  Note that for exemptions requiring removable labels, the exemption no longer applies once the label is separated from the engine/equipment.
   (2) The label must be durable and readable throughout the period of its intended purpose.  This period generally includes all distribution in U.S. commerce during which the exemption applies.
   (3) Except as specified in paragraph (c) of this section, the label must be attached directly to the engine/equipment in a visible location.  We consider a tag that meets the specified requirements to be an attached label.
(c) Labels on packaging. Unless we specify otherwise, where we require engine/equipment labels that may be removable, you may instead label the packaging if the engines/equipment are packaged together as described in this paragraph (c). For example, this may involve packaging engines together by attaching them to a rack, binding them together on a pallet, or enclosing them in a box.  The provisions of this paragraph (c) also apply for engines/equipment boxed individually where you do not apply labels directly to the engines/equipment.  The following provisions apply if you label the packaging instead of labeling engines/equipment individually:
   (1) You may use the provisions of this paragraph (c) only if all the engines/equipment packaged together need the same label.
   (2) You must place the label on the package in a readily visible location.  This may require labeling the package in multiple locations.
   (3) You must package the engines/equipment such that the labels will not be separated from the engines/equipment or otherwise become unreadable throughout the period that the label applies.  For example, labels required for shipping engines to a secondary engine manufacturer under §1068.262 must remain attached and readable until they reach the secondary engine manufacturer.   Similarly, removable labels specified in §1068.240 for replacement engines must remain attached and readable until they reach the point of final installation.
   (4) You are in violation of §1068.101(a)(1) if such engines/equipment are removed from the package or are otherwise separated from the label before reaching the point at which the label is no longer needed.
(d) Temporary consumer labels.  Where we specify that you apply temporary consumer labels (including tags), each label must meet the following conditions:
   (1) You must attach the label in a way that does not allow it to be separated from the engine/equipment without a deliberate effort.
   (2) The label must be sufficiently durable to be readable until it reaches the ultimate purchaser.
   (3) The label must be attached directly to the engine/equipment in a visible location.
(e) Prohibitions against removing labels.  As specified in §1068.101(b)(7), removing permanent labels is prohibited except for certain circumstances.  Removing temporary or removable labels prematurely is also prohibited by §1068.101(b)(7).
(f) Identifying emission control systems.  If the standard-setting part specifies that you use standardized terms and abbreviations to identify emission control systems, use terms and abbreviations consistent with SAE J1930 (incorporated by reference in §1068.95).
(g) Date format.  If you use a coded approach to identify the engine/equipment's date of manufacture, describe or interpret the code in your application for certification.
(h) Branding. 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 in the standard-setting part:
   (1) You must have a contractual agreement with the other company that obligates that company to take the following steps:
      (i) Meet the emission warranty requirements that apply under the standard-setting part.  This may involve a separate agreement involving reimbursement of warranty-related expenses.
      (ii) Report all warranty-related information to the certificate holder.
   (2) In your application for certification, identify the company whose trademark you will use.
   (3) You remain responsible for meeting all the requirements of this chapter, including warranty and defect-reporting provisions.

§1068.95  What materials does this part reference?
(a) Certain material is incorporated by reference into this part with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that specified in this section, a document must be published in the Federal Register and the material must be available to the public. All approved materials are available for inspection at the Air and Radiation Docket and Information Center (Air Docket) in the EPA Docket Center (EPA/DC) at Rm. 3334, EPA West Bldg., 1301 Constitution Ave. NW., Washington, DC. The EPA/DC Public Reading Room hours of operation are 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number of the EPA/DC Public Reading Room is<PHONE_NUMBER>, and the telephone number for the Air Docket is<PHONE_NUMBER>. These approved materials are also available for inspection at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call<PHONE_NUMBER> or go to http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html. In addition, these materials are available from the sources listed below.
(b) SAE International material. The following standards are available from SAE International, 400 Commonwealth Dr., Warrendale, PA 15096-0001,<PHONE_NUMBER>, or http://www.sae.org:
   (1) SAE J1930, Electrical/Electronic Systems Diagnostic Terms, Definitions, Abbreviations, and Acronyms, revised April 2002 ("SAE J1930"), IBR approved for §1068.45(f).
   (2) [Reserved]

Subpart B -- Prohibited Actions and Related Requirements

§1068.101  What general actions does this regulation prohibit?
This section specifies actions that are prohibited and the maximum civil penalties that we can assess for each violation in accordance with 42 U.S.C. 7522 and 7524.  The maximum penalty values listed in paragraphs (a) and (b) of this section and in §1068.125 apply as of December 7, 2013.  As described in paragraph (h) of this section, these maximum penalty limits are different for earlier violations and they may be adjusted as set forth in 40 CFR part 19.
(a) The following prohibitions and requirements apply to manufacturers of new engines, manufacturers of equipment containing these engines, and manufacturers of new equipment, except as described in subparts C and D of this part:
   (1)  Introduction into commerce. You may not sell, offer for sale, or introduce or deliver into commerce in the United States or import into the United States any new engine/equipment after emission standards take effect for the engine/equipment, unless it is covered by a valid certificate of conformity for its model year and has the required label or tag. You also may not take any of the actions listed in the previous sentence with respect to any equipment containing an engine subject to this part's provisions unless the engine is covered by a valid certificate of conformity for its model year and has the required engine label or tag.  We may assess a civil penalty up to $37,500 for each engine or piece of equipment in violation.
      (i) For purposes of this paragraph (a)(1), a valid certificate of conformity is one that applies for the same model year as the model year of the equipment (except as allowed by §1068.105(a)), covers the appropriate category or subcategory of engines/equipment (such as locomotive or sterndrive/inboard Marine SI or nonhandheld Small SI), and conforms to all requirements specified for equipment in the standard-setting part.  Engines/equipment are considered not covered by a certificate unless they are in a configuration described in the application for certification.
      (ii) The requirements of this paragraph (a)(1) also cover new engines you produce to replace an older engine in a piece of equipment, unless the engine qualifies for the replacement-engine exemption in §1068.240.
      (iii) For engines used in equipment subject to equipment-based standards, you may not sell, offer for sale, or introduce or deliver into commerce in the United States or import into the United States any new engine unless it is covered by a valid certificate of conformity for its model year and has the required label or tag.  See the standard-setting part for more information about how this prohibition applies.
      (iv) Where the regulations specify that you are allowed to introduce engines/equipment into U.S. commerce without a certificate of conformity, you may take any of the otherwise prohibited actions specified in this paragraph (a)(1) with respect to those engines/equipment.
   (2) Reporting and recordkeeping. This chapter requires you to record certain types of information to show that you meet our standards.  You must comply with these requirements to make and maintain required records (including those described in §1068.501).  You may not deny us access to your records or the ability to copy your records if we have the authority to see or copy them.  Also, you must give us complete and accurate reports and information without delay as required under this chapter.  Failure to comply with the requirements of this paragraph is prohibited.  We may assess a civil penalty up to $37,500 for each day you are in violation.  In addition, knowingly submitting false information is a violation of 18 U.S.C. 1001, which may involve criminal penalties and up to five years imprisonment.
   (3) Testing and access to facilities. You may not keep us from entering your facility to test engines/equipment or inspect if we are authorized to do so.  Also, you must perform the tests we require (or have the tests done for you).  Failure to perform this testing is prohibited. We may assess a civil penalty up to $37,500 for each day you are in violation.
(b) The following prohibitions apply to everyone with respect to the engines and equipment to which this part applies:
   (1) Tampering. You may not remove or render inoperative any device or element of design installed on or in engines/equipment in compliance with the regulations prior to its sale and delivery to the ultimate purchaser.  You also may not knowingly remove or render inoperative any such device or element of design after such sale and delivery to the ultimate purchaser.  This includes, for example, operating an engine without a supply of appropriate quality urea if the emission control system relies on urea to reduce NOx emissions or the use of incorrect fuel or engine oil that renders the emissions control system inoperative.  Section 1068.120 describes how this applies to rebuilding engines.  See the standard-setting part, which may include additional provisions regarding actions prohibited by this requirement.  For a manufacturer or dealer, we may assess a civil penalty up to $37,500 for each engine or piece of equipment in violation.  For anyone else, we may assess a civil penalty up to $3,750 for each engine or piece of equipment in violation.  This prohibition does not apply in any of the following situations:
      (i) You need to repair the engine/equipment and you restore it to proper functioning when the repair is complete.
      (ii) You need to modify the engine/equipment to respond to a temporary emergency and you restore it to proper functioning as soon as possible.
      (iii) You modify new engines/equipment that another manufacturer has already certified to meet emission standards and recertify them under your own family.  In this case you must tell the original manufacturer not to include the modified engines/equipment in the original family.
   (2) Defeat devices. You may not knowingly manufacture, sell, offer to sell, or install, any component that bypasses, impairs, defeats, or disables the control of emissions of any regulated pollutant, except as explicitly allowed by the standard-setting part.  We may assess a civil penalty up to $3,750 for each component in violation.
   (3) Stationary engines. For an engine that is excluded from any requirements of this chapter because it is a stationary engine, you may not move it or install it in any mobile equipment except as allowed by the provisions of this chapter.  You may not circumvent or attempt to circumvent the residence-time requirements of paragraph (2)(iii) of the nonroad engine definition in §1068.30.  Anyone violating this paragraph (b)(3) is deemed to be a manufacturer in violation of paragraph (a)(1) of this section.  We may assess a civil penalty up to $37,500 for each engine or piece of equipment in violation.
   (4) Competition engines/equipment. (i) For uncertified engines/equipment that are excluded or exempted as new engines/equipment from any requirements of this chapter because they are to be used solely for competition, you may not use any of them in a manner that is inconsistent with use solely for competition.  Anyone violating this paragraph (b)(4)(i) is deemed to be a manufacturer in violation of paragraph (a)(1) of this section.  We may assess a civil penalty up to $37,500 for each engine or piece of equipment in violation.
   (ii) For certified nonroad engines/equipment that qualify for exemption from the tampering prohibition as described in §1068.235 because they are to be used solely for competition, you may not use any of them in a manner that is inconsistent with use solely for competition.  Anyone violating this paragraph (b)(4)(ii) is in violation of paragraph (b)(1) or (b)(2) of this section.  Certified motor vehicles and motor vehicle engines and their emission control devices must remain in their certified configuration even if they are used solely for competition or if they become nonroad vehicles or engines; anyone modifying a certified motor vehicle or motor vehicle engine for any reason is subject to the tampering and defeat device prohibitions of 40 CFR 1068.101(b) and 42 U.S.C. 7522(a)(3).
   (5) Importation. You may not import an uncertified engine or piece of equipment if it is defined to be new in the standard-setting part with a model year for which emission standards applied.  Anyone violating this paragraph (b)(5) is deemed to be a manufacturer in violation of paragraph (a)(1) of this section.  We may assess a civil penalty up to $37,500 for each engine or piece of equipment in violation.  Note the following:
      (i) The definition of new is broad for imported engines/equipment; uncertified engines and equipment (including used engines and equipment) are generally considered to be new when imported.
      (ii) Used engines/equipment that were originally manufactured before applicable EPA standards were in effect are generally not subject to emission standards.
   (6) Warranty, recall, and maintenance instructions. You must meet your obligation to honor your emission-related warranty under §1068.115, including any commitments you identify in your application for certification.  You must also fulfill all applicable requirements under subpart F of this part related to emission-related defects and recalls.  You must also provide emission-related installation and maintenance instructions as described in the standard-setting part.  Failure to meet these obligations is prohibited. Also, except as specifically provided by regulation, you are prohibited from directly or indirectly communicating to the ultimate purchaser or a later purchaser that the emission-related warranty is valid only if the owner has service performed at authorized facilities or only if the owner uses authorized parts, components, or systems.  We may assess a civil penalty up to $37,500 for each engine or piece of equipment in violation.
      (7) Labeling. (i) You may not remove or alter an emission control information label or other required permanent label except as specified in this paragraph (b)(7) or otherwise allowed by this chapter.  Removing or altering an emission control information label is a violation of paragraph (b)(1) of this section.  However, it is not a violation to remove a label in the following circumstances:
         (A) The engine is destroyed, is permanently disassembled, or otherwise loses its identity such that the original title to the engine is no longer valid.
         (B) The regulations specifically direct you to remove the label.  For example, see §1068.235.
         (C) The part on which the label is mounted needs to be replaced.  In this case, you must have a replacement part with a duplicate of the original label installed by the certifying manufacturer or an authorized agent, except that the replacement label may omit the date of manufacture if applicable.  We generally require labels to be permanently attached to parts that will not normally be replaced, but this provision allows for replacements in unusual circumstances, such as damage in a collision or other accident.
         (D) The original label is incorrect, provided that it is replaced with the correct label from the certifying manufacturer or an authorized agent.  This allowance to replace incorrect labels does not affect whether the application of an incorrect original label is a violation.
      (ii) Removing or altering a temporary or removable label contrary to the provisions of this paragraph (b)(7)(ii) is a violation of paragraph (b)(1) of this section.
         (A) For labels identifying temporary exemptions, you may not remove or alter the label while the engine/equipment is in an exempt status.  The exemption is automatically revoked for each engine/equipment for which the label has been removed.
         (B) For temporary or removable consumer information labels, only the ultimate purchaser may remove the label.
      (iii) You may not apply a false emission control information label.  You also may not manufacture, sell, or offer to sell false labels. The application, manufacture, sale, or offer for sale of false labels is a violation of this section (such as paragraph (a)(1) or (b)(2) of this section).  Note that applying an otherwise valid emission control information label to the wrong engine is considered to be applying a false label.
      (iv) Information on engine/equipment labels as specified in this chapter is deemed to be information submitted to EPA and is therefore subject to the prohibition against knowingly submitting false information under paragraph (a)(2) of this section and 18 U.S.C. 1001.
(c) If you cause someone to commit a prohibited act in paragraph (a) or (b) of this section, you are in violation of that prohibition.
(d) Exemptions from these prohibitions are described in subparts C and D of this part and in the standard-setting part.
(e) The standard-setting parts describe more requirements and prohibitions that apply to manufacturers (including importers) and others under this chapter.
(f) The specification of prohibitions and penalties in this part does not limit the prohibitions and penalties described in the Clean Air Act.  Additionally, a single act may trigger multiple violations under this section and the Act.  We may pursue all available administrative, civil, or criminal remedies for those violations even if the regulation references only a single prohibited act in this section.
(g) [Reserved]
(h)  The maximum penalty values listed in paragraphs (a) and (b) of this section and in §1068.125 apply as of December 7, 2013.  Maximum penalty values for earlier violations are published in 40 CFR part 19.  Maximum penalty limits may be adjusted after December 7, 2013 based on the Consumer Price Index.  The specific regulatory provisions for changing the maximum penalties, published in 40 CFR part 19, reference the applicable U.S. Code citation on which the prohibited action is based.  The following table is shown here for informational purposes:

             Table 1 of §1068.101 -- Legal Citation for Specific
             Prohibitions for Determining Maximum Penalty Amounts
              Part 1068 Regulatory Citation of Prohibited Action
                             General Description
                                of Prohibition
                U.S. Code Citation for Clean Air Act  Authority
§1068.101 (a)(1)
Introduction into U.S. commerce of an uncertified source.
42 U.S.C. 7522(a)(1) and (a)(4)
§1068.101(a)(2)
Failure to provide information.
42 U.S.C. 7522(a)(2)
§1068.101(a)(3)
Denying access to facilities.
42 U.S.C. 7522(a)(2)
§1068.101(b)(1)
Tampering with emission controls by a manufacturer or dealer.
42 U.S.C. 7522(a)(3)

Tampering with emission controls by someone other than a manufacturer or dealer.

§1068.101(b)(2)
Sale or use of a defeat device.
42 U.S.C. 7522(a)(3)
§1068.101(b)(3)
Mobile use of a stationary engine.
42 U.S.C. 7522(a)(1) and (a)(4)
§1068.101(b)(4)
Noncompetitive use of uncertified engines/equipment that is exempted for competition.
42 U.S.C. 7522(a)(1) and (a)(4)
§1068.101(b)(5)
Importation of an uncertified source.
42 U.S.C. 7522(a)(1) and (a)(4)
§1068.101(b)(6)
Recall and warranty
42 U.S.C. 7522(a)(4)
§1068.101(b)(7)
Removing labels
42 U.S.C. 7522(a)(3)

§1068.103 Provisions related to the duration and applicability of certificates of conformity.
(a) Engines/equipment covered by a certificate of conformity are limited to those that are produced during the period specified in the certificate and conform to the specifications described in the certificate and the associated application for certification.  For the purposes of this paragraph (a), "specifications" includes the emission control information label and any conditions or limitations identified by the manufacturer or EPA.  For example, if the application for certification specifies certain engine configurations, the certificate does not cover any configurations that are not specified. We may ignore any information provided in the application that we determine is not relevant to a demonstration of compliance with applicable regulations, such as your projected production volumes in many cases.
(b) Unless the standard-setting part specifies otherwise, determine the production period corresponding to each certificate of conformity as specified in this paragraph (b).  In general, the production period is the manufacturer's annual production period identified as a model year.
   (1) For engines/equipment subject to emission standards based on model years, the first day of the annual production period can be no earlier than January 2 of the calendar year preceding the year for which the model year is named, or the earliest date of manufacture for any engine/equipment in the engine family, whichever is later.  The last day of the annual production period can be no later than December 31 of the calendar year for which the model year is named or the latest date of manufacture for any engine/equipment in the engine family, whichever is sooner.  Note that this approach limits how you can designate a model year for your engines/equipment; however, it does not limit your ability to meet more stringent emission standards early where this is permitted in the regulation.
   (2) For fuel-system components certified to evaporative emission standards based on production periods rather than model years, the production period is either the calendar year or a longer period we specify consistent with the manufacturer's normal production practices.
(c) A certificate of conformity will not cover engines/equipment you produce with a date of manufacture earlier than the date you submit the application for certification for the family.  You may start to produce engines/equipment after you submit an application for certification and before the effective date of a certificate of conformity, subject to the following conditions:
   (1) The engines/equipment must conform in all material respects to the engines/equipment described in your application.  Note that if we require you to modify your application, you must ensure that all engines/equipment conform to the specifications of the modified application.
   (2) The engines/equipment may not be sold, offered for sale, introduced into U.S. commerce, or delivered for introduction into U.S. commerce before the effective date of the certificate of conformity.
   (3) You must notify us in your application for certification that you plan to use the provisions of this paragraph (c) and when you intend to start production.  If the standard-setting part specifies mandatory testing for production-line engines, you must start testing as directed in the standard-setting part based on your actual start of production, even if that occurs before we approve your certification.  You must also agree to give us full opportunity to inspect and/or test the engines/equipment during and after production.  For example, we must have the opportunity to specify selective enforcement audits as allowed by the standard-setting part and the Clean Air Act as if the engines/equipment were produced after the effective date of the certificate.
   (4) See §1068.262 for special provisions that apply for secondary engine manufacturers receiving shipment of partially complete engines before the effective date of a certificate.
(d) The prohibition in §1068.101(a)(1) against offering to sell engines/equipment without a valid certificate of conformity generally does not apply for engines/equipment that have not yet been produced.  You may contractually agree to produce engines/equipment before obtaining the required certificate of conformity.  This is intended to allow manufacturers of low-volume products to establish a sufficient market for engines/equipment before going through the effort to certify.
(e) Engines/equipment with a date of manufacture after December 31 of the calendar year for which a model year is named are not covered by the certificate of conformity for that model year. You must submit an application for a new certificate of conformity demonstrating compliance with applicable standards even if the engines/equipment are identical to those built before December 31.
(f) The flexible approach to naming the annual production period described in paragraph (b)(1) of this section is intended to allow you to introduce new products at any point during the year.  This is based on the expectation that production periods generally run on consistent schedules from year to year.  You may not use this flexibility to arrange your production periods such that you can avoid annual certification.
(g) An engine is generally assigned a model year based on its date of manufacture, which is typically based on the date the crankshaft is installed in the engine (see §1068.30).  You may not circumvent the provisions of §1068.101(a)(1) by stockpiling engines with a date of manufacture before new or changed emission standards take effect by deviating from your normal production and inventory practices.  (For purposes of this paragraph (g), normal production and inventory practices means those practices you typically use for similar families in years in which emission standards do not change.  We may require you to provide us routine production and inventory records that document your normal practices for the preceding eight years.)  For most engines you should plan to complete the assembly of an engine of a given model year into its certified configuration within the first week after the end of the model year if new emission standards start to apply in that model year.  For special circumstances it may be appropriate for your normal business practice to involve more time.  For engines with per-cylinder displacement below 2.5 liters, if new emission standards start to apply in a given year, we would consider an engine not to be covered by a certificate of conformity for the preceding model year if the engine is not completely assembled into a compliant configuration as described in §1068.260 within 30 days after the end of the model year for that engine family.  For example, in the case where new standards apply in the 2010 model year, and your normal production period is based on the calendar year, you must complete the assembly of all your 2009 model year engines before January 31, 2010, or an earlier date consistent with your normal production and inventory practices. For engines with per-cylinder displacement at or above 2.5 liters, this time may not exceed 60 days.  Note that for the purposes of this paragraph (g), an engine shipped under §1068.261 is deemed to be a complete engine.  Note also that §1068.245 allows flexibility for additional time in unusual circumstances.  Note finally that disassembly of complete engines and reassembly (such as for shipment) does not affect the determination of model year; the provisions of this paragraph (g) apply based on the date on which initial assembly is complete.
(h) This paragraph (h) describes the effect of suspending, revoking, or voiding a certificate of conformity. See the definitions of "suspend," "revoke," and "void" in § 1068.30. Engines/equipment produced at a time when the otherwise applicable certificate of conformity has been suspended or revoked are not covered by a certificate of conformity. Where a certificate of conformity is void, all engines/equipment produced under that certificate of conformity are not and were not covered by a certificate of conformity. In cases of suspension, engines/equipment will be covered by a certificate only if they are produced after the certificate is reinstated or a new certificate is issued. In cases of revocation and voiding, engines/equipment will be covered by a certificate only if they are produced after we issue a new certificate. 42 U.S.C. 7522(a)(1) and § 1068.101(a)(1) prohibit selling, offering for sale, introducing into commerce, delivering for introduction into commerce, and importing engines/equipment that are not covered by a certificate of conformity, and they prohibit anyone from causing another to violate these prohibitions.
(i) You may transfer a certificate to another entity only in the following cases:
   (1) You may transfer a certificate to a parent company, including a parent company that purchases your company after we have issued your certificate.
   (2) You may transfer a certificate to a subsidiary including a subsidiary you purchase after we have issued your certificate.
   (3) You may transfer a certificate to a subsidiary of your parent company.

§1068.105  What other provisions apply to me specifically if I manufacture equipment needing certified engines?
This section describes general provisions that apply to equipment manufacturers for sources subject to engine-based standards.  See the standard-setting part for any requirements that apply for certain applications.  See §1068.101 for penalties associated with violations under this section and for other prohibitions related to your equipment.
(a) Transitioning to new engine-based standards. If new engine-based emission standards apply in a given model year, your equipment produced in that calendar year (or later) must have engines that are certified to the new standards, except that you may continue to use up normal inventories of earlier engines that were built before the date of the new or changed standards.  For purposes of this paragraph (a), normal inventory applies for engines you possess and engines from your engine supplier's normal inventory.  (Note: this paragraph (a) does not apply in the case of new remanufacturing standards.)  We may require you and your engine suppliers to provide us routine production and/or inventory records that document your normal practices for the preceding eight years.  For example, if you have records documenting that your normal inventory practice is to keep on hand a one-month supply of engines based on your upcoming production schedules, and a new tier of standards starts to apply for the 2015 model year, you may order engines consistent with your normal inventory requirements late in the engine manufacturer's 2014 model year and install those engines in your equipment consistent with your normal production schedule.  Also, if your model year starts before the end of the calendar year preceding new standards, you may use engines from the previous model year for those units you completely assemble before January 1 of the year that new standards apply.  If emission standards for the engine do not change in a given model year, you may continue to install engines from the previous model year without restriction (or any earlier model year for which the same standards apply).  You may not circumvent the provisions of §1068.101(a)(1) by stockpiling engines that were built before new or changed standards take effect.  Similarly, you may not circumvent the provisions of §1068.101(a)(1) by knowingly installing engines that were stockpiled by engine suppliers in violation of §1068.103(f).  Note that this allowance does not apply for equipment subject to equipment-based standards.  See 40 CFR 1060.601 for similar provisions that apply for equipment subject to evaporative emission standards.  Note that the standard-setting part may impose further restrictions on using up inventories of engines from an earlier model year under this paragraph (a).
(b)  Installing engines or certified components.  The provisions in §1068.101(a)(1) generally prohibit you from introducing into U.S. commerce any new equipment that includes engines not covered by a certificate of conformity.  In addition, you must follow the engine manufacturer's emission-related installation instructions.  For example, you may need to constrain where you place an exhaust aftertreatment device or integrate into your equipment models a device for sending visual or audible signals to the operator.  Similarly, you must follow the emission-related installation instructions from the manufacturer of a component that has been certified for controlling evaporative emissions under 40 CFR part 1060.  Not meeting the manufacturer's emission-related installation instructions is a violation of one or more of the prohibitions of §1068.101.  See §1068.261 for special provisions that apply when the engine manufacturer delegates final assembly of emission controls to you.
(c)  Attaching a duplicate label.  If you obscure the engine's label, you must do four things to avoid violating §1068.101(a)(1):
   (1) Send a request for duplicate labels in writing on your company's letterhead to the engine manufacturer.  Include the following information in your request:
      (i) Identify the type of equipment and the specific engine and equipment models needing duplicate labels.
      (ii) Identify the family (from the original engine label).
      (iii) State the reason that you need a duplicate label for each equipment model.
      (iv) Identify the number of duplicate labels you will need.
   (2) Permanently attach the duplicate label to your equipment by securing it to a part needed for normal operation and not normally requiring replacement.  Make sure an average person can easily read it.  Note that attaching an inaccurate duplicate label may be a violation of §1068.101(b)(7).
   (3) Destroy any unused duplicate labels if you find that you will not need them.
   (4) Keep the following records for at least eight years after the end of the model year identified on the engine label:
      (i) Keep a copy of your written request.
      (ii) Keep drawings or descriptions that show how you apply the duplicate labels to your equipment.
      (iii) Maintain a count of those duplicate labels you use and those you destroy.

§1068.110  Other provisions for engines/equipment in service.
(a)  Aftermarket parts and service.  As the certifying manufacturer, you may not require anyone to use your parts or service to maintain or repair an engine or piece of equipment, unless we approve this in your application for certification.  It is a violation of the Clean Air Act for anyone to manufacture any part if one of its main effects is to reduce the effectiveness of the emission controls.  See §1068.101(b)(2).
(b) Certifying aftermarket parts.  As the manufacturer or rebuilder of an aftermarket engine or equipment part, you may -- but are not required to -- certify according to 40 CFR part 85, subpart V, that using the part will not cause engines/equipment to fail to meet emission standards.  Whether you certify or not, you must keep any information showing how your parts or service affect emissions.
(c) Compliance with standards.  We may test engines and equipment to investigate compliance with emission standards and other requirements.  We may also require the manufacturer to do this testing.
(d) Defeat devices.  We may test components, engines, and equipment to investigate potential defeat devices.  We may also require the manufacturer to do this testing.  If we choose to investigate one of your designs, we may require you to show us that a component is not a defeat device, and that an engine/equipment does not have a defeat device.  To do this, you may have to share with us information regarding test programs, engineering evaluations, design specifications, calibrations, on-board computer algorithms, and design strategies.  It is a violation of the Clean Air Act for anyone to make, install or use defeat devices as described in §1068.101(b)(2) and the standard-setting part.
(e) Warranty and maintenance. Owners are responsible for properly maintaining their engines/equipment; however, owners may make warranty claims against the manufacturer for all expenses related to diagnosing and repairing or replacing emission-related parts, as described in §1068.115.  Manufacturers may ask to limit diagnosis and repair to authorized service facilities, provided this does not limit their ability to meet their warranty obligations under §1068.115.   The warranty period begins when the equipment is first placed into service.  See the standard-setting part for specific requirements.  It is a violation of the Clean Air Act for anyone to disable emission controls; see §1068.101(b)(1) and the standard-setting part.

--------------------------------------------------------------------------------
§ 1068.115  What are manufacturers' emission-related warranty requirements?
Section 207(a) of the Clean Air Act (42 U.S.C. 7541(a)) requires certifying manufacturers to warrant to purchasers that their engines/equipment are designed, built, and equipped to conform at the time of sale to the applicable regulations for their full useful life, including a warranty that the engines/equipment are free from defects in materials and workmanship that would cause any engine/equipment to fail to conform to the applicable regulations during the specified warranty period. This section codifies the warranty requirements of section 207(a) without intending to limit these requirements.
(a) As a certifying manufacturer, you may deny warranty claims only for failures that have been caused by the owner's or operator's improper maintenance or use, by accidents for which you have no responsibility, or by acts of God. For example, you would not need to honor warranty claims for failures that have been directly caused by the operator's abuse of the engine/equipment or the operator's use of the engine/equipment in a manner for which it was not designed and are not attributable to you in any way.
(b) As a certifying manufacturer, you may not deny emission-related warranty claims based on any of the following:
   (1) Maintenance or other service you or your authorized facilities performed.
   (2) Engine/equipment repair work that an operator performed to correct an unsafe, emergency condition attributable to you as long as the operator tries to restore the engine/equipment to its proper configuration as soon as possible.
   (3) Any action or inaction by the operator unrelated to the warranty claim.
   (4) Maintenance that was performed more frequently than you specify.
   (5) Anything that is your fault or responsibility.
   (6) The use of any fuel that is commonly available where the equipment operates unless your written maintenance instructions state that this fuel would harm the equipment's emission control system and operators can readily find the proper fuel.

§1068.120  Requirements for rebuilding engines.
(a) This section describes the steps to take when rebuilding engines to avoid violating the tampering prohibition in §1068.101(b)(1).  These requirements apply to anyone rebuilding an engine subject to this part, but the recordkeeping requirements in paragraphs (j) and (k) of this section apply only to businesses.  For maintenance or service that is not rebuilding, including any maintenance related to evaporative emission controls, you may not make changes that might increase emissions of any regulated pollutant, but you do not need to keep any records.
(b)  The term "rebuilding" r0efers to a rebuild of an engine or engine system, including a major overhaul in which you replace the engine's pistons or power assemblies or make other changes that significantly increase the service life of the engine.  It also includes replacing or rebuilding an engine's turbocharger or aftercooler or the engine's systems for fuel metering or electronic control so that it significantly increases the service life of the engine.  For these provisions, rebuilding may or may not involve removing the engine from the equipment.  Rebuilding does not normally include the following:
   (1)  Scheduled emission-related maintenance that the standard-setting part allows during the useful life period (such as replacing fuel injectors).
   (2) Unscheduled maintenance that occurs commonly within the useful life period.  For example, replacing a water pump is not rebuilding an engine.
(c) [Reserved]
(d) If you rebuild an engine or engine system, you must have a reasonable technical basis for knowing that the rebuilt engine's emission control system performs as well as, or better than, it performs in its certified configuration.  Identify the model year of the resulting engine configuration. You have a reasonable basis if you meet two main conditions:
   (1) Install parts --  new, used, or rebuilt --  so a person familiar with engine design and function would reasonably believe that the engine with those parts will control emissions of all pollutants at least to the same degree as with the original parts.  For example, it would be reasonable to believe that parts performing the same function as the original parts (and to the same degree) would control emissions to the same degree as the original parts.
   (2) Adjust parameters or change design elements only according to the original engine manufacturer's instructions.  Or, if you differ from these instructions, you must have data or some other technical basis to show you should not expect in-use emissions to increase.
(e)  If the rebuilt engine remains installed or is reinstalled in the same piece of equipment, you must rebuild it to the original configuration, except as allowed by this paragraph (e).  You may rebuild it to a different certified configuration of the same or later model year.  You may also rebuild it to a certified configuration from an earlier model year as long as the earlier configuration is as clean or cleaner than the original configuration.  For purposes of this paragraph (e), "as clean or cleaner" means one of the following:
   (1) For engines not certified with a Family Emission Limit for calculating credits for a particular pollutant, this means that the same emission standard applied for both model years.  This includes supplemental standards such as Not-to-Exceed standards.
   (2) For engines certified with a Family Emission Limit for a particular pollutant, this means that the configuration to which the engine is being rebuilt has a Family Emission Limit for that pollutant that is at or below the standard that applied to the engine originally, and is at or below the original Family Emission Limit.
(f) A rebuilt engine or other used engine may replace a certified engine in a piece of equipment only if the engine was built and/or rebuilt to a certified configuration meeting equivalent or more stringent emission standards.  Note that a certified configuration would generally include more than one model year.  A rebuilt engine being installed that is from the same model year or a newer model year than the engine being replaced meets this requirement.  The following examples illustrate the provisions of this paragraph (f):
   (1) In most cases, you may use a rebuilt Tier 2 engine to replace a Tier 1 engine or another Tier 2 engine.
   (2) You may use a rebuilt Tier 1 engine to replace a Tier 2 engine if the two engines differ only with respect to model year or other characteristics unrelated to emissions since such engines would be considered to be in the same configuration.  This may occur if the Tier 1 engine had emission levels below the Tier 2 standards or if the Tier 2 engine was certified with a Family Emission Limit for calculating emission credits.
   (3) You may use a rebuilt engine that originally met the Tier 1 standards without certification, as provided under §1068.265, to replace a certified Tier 1 engine.  This may occur for engines produced under a Transition Program for Equipment Manufacturers such as that described in 40 CFR 1039.625.
   (4) You may never replace a certified engine with an engine rebuilt to a configuration that does not meet EPA emission standards.  Note that, for purposes of this paragraph (f)(4), a configuration is considered to meet EPA emission standards if it was previously certified or was otherwise shown to meet emission standards (see §1068.265).
(g)  Do not erase or reset emission-related codes or signals from onboard monitoring systems without diagnosing and responding appropriately to any diagnostic codes.  This requirement applies regardless of the manufacturer's reason for installing the monitoring system and regardless of its form or interface.  Clear any codes from diagnostic systems when you return the rebuilt engine to service.  Do not disable a diagnostic signal without addressing its cause.
(h) When you rebuild an engine, check, clean, adjust, repair, or replace all emission-related components (listed in Appendix I of this part) as needed according to the original manufacturer's recommended practice.  In particular, replace oxygen sensors, replace the catalyst if there is evidence of malfunction, clean gaseous fuel-system components, and replace fuel injectors (if applicable), unless you have a reasonable technical basis for believing any of these components do not need replacement.
(i)  If you are installing an engine that someone else has rebuilt, check all emission-related components listed in Appendix I of this part as needed according to the original manufacturer's recommended practice.
(j)  Keep at least the following records for all engines except spark-ignition engines with total displacement below 225 cc:
   (1)  Identify the hours of operation (or mileage, as appropriate) at the time of rebuild.  These may be noted as approximate values if the engine has no hour meter (or odometer).
   (2)  Identify the work done on the engine or any emission-related control components, including a listing of parts and components you used.
   (3)  Describe any engine parameter adjustments.
   (4)  Identify any emission-related codes or signals you responded to and reset.
(k)  You must show us or send us your records if we ask for them.  Keep records for at least two years after rebuilding an engine.  Keep them in any format that allows us to readily review them.
   (1)  You do not need to keep information that is not reasonably available through normal business practices.  We do not expect you to have information that you cannot reasonably access.
   (2)  You do not need to keep records of what other companies do.
   (3)  You may keep records based on families rather than individual engines if that is the way you normally do business.

§1068.125  What happens if I violate the regulations?
(a)  Civil penalties and injunctions.  We may bring a civil action to assess and recover civil penalties and/or enjoin and restrain violations in the United States District Court for the district where you allegedly violated a requirement, or the district where you live or have your main place of business.  Actions to assess civil penalties or restrain violations of §1068.101 must be brought by and in the name of the United States.  The selected court has jurisdiction to restrain violations and assess civil penalties.
   (1)  To determine the amount of a civil penalty and reach a just conclusion, the court considers these factors:
      (i)  The seriousness of your violation.
      (ii)  How much you benefited or saved because of the violation.
      (iii)  The size of your business.
      (iv)  Your history of compliance with Title II of the Clean Air Act (42 U.S.C. 7401-7590).
      (v)  What you did to remedy the violation.
      (vi)  How the penalty will affect your ability to continue in business.
      (vii) Such other matters as justice may require.
   (2)  Subpoenas for witnesses who must attend a district court in any district may apply to any other district.
(b) Administrative penalties. Instead of bringing a civil action, we may assess administrative penalties if the total is less than $320,000 against you individually.  This maximum penalty may be greater if the Administrator and the Attorney General jointly determine that a greater administrative penalty assessment is appropriate, or if the limit is adjusted under 40 CFR part 19.  No court may review this determination.  Before we assess an administrative penalty, you may ask for a hearing as described in subpart G of this part.  The Administrator may compromise or remit, with or without conditions, any administrative penalty that may be imposed under this section.
   (1)  To determine the amount of an administrative penalty, we will consider the factors described in paragraph (a)(1) of this section.
   (2)  An administrative order we issue under this paragraph (b) becomes final 30 days after we issue it unless you ask for judicial review by that time (see paragraph (c) of this section).  You may ask for review by any of the district courts listed in paragraph (a) of this section.  Send the Administrator a copy of the filing by certified mail.
   (3) We will not pursue an administrative penalty for a particular violation if either of the following two conditions is true:
      (i) We are separately prosecuting the violation under this subpart.
      (ii) We have issued a final order for a violation, no longer subject to judicial review, for which you have already paid a penalty.
(c)  Judicial review.  If you ask a court to review a civil or administrative penalty, we will file in the appropriate court within 30 days of your request a certified copy or certified index of the record on which the court or the Administrator issued the order.
   (1)  The judge may set aside or remand any order issued under this section only if one of the following is true:
      (i)  Substantial evidence does not exist in the record, taken as a whole, to support finding a violation.
      (ii)  The Administrator's assessment of the penalty is an abuse of discretion.
   (2)  The judge may not add civil penalties unless our penalty is an abuse of discretion that favors you.
(d)  Effect of enforcement actions on other requirements.  Our pursuit of civil or administrative penalties does not affect or limit our authority to enforce any provisions of this chapter.
(e)  Penalties.  In any proceedings, the United States government may seek to collect civil penalties assessed under this section.
   (1)  Once a penalty assessment is final, if you do not pay it, the Administrator will ask the Attorney General to bring a civil action in an appropriate district court to recover the money.  We may collect interest from the date of the final order or final judgment at rates established by the Internal Revenue Code of 1986 (26 U.S.C. 6621(a)(2)).  In this action to collect overdue penalties, the court will not review the validity, amount, and appropriateness of the penalty.
   (2) In addition, if you do not pay the full amount of a penalty on time, you must then pay more to cover interest, enforcement expenses (including attorney's fees and costs for collection), and a quarterly nonpayment penalty for each quarter you do not pay.  The quarterly nonpayment penalty is 10 percent of your total penalties plus any unpaid nonpayment penalties from previous quarters.
Subpart C --  Exemptions and Exclusions

§1068.201   General exemption and exclusion provisions.
We may exempt new engines/equipment from some or all of the prohibited acts or requirements of this part under provisions described in this subpart.  We may exempt engines/equipment already placed in service in the United States from the prohibition in §1068.101(b)(1) if the exemption for engines/equipment used solely for competition applies (see §1068.235).  In addition, see §1068.1 and the standard-setting parts to determine if other engines/equipment are excluded from some or all of the regulations in this chapter.
(a) This subpart identifies which engines/equipment qualify for exemptions and what information we need.  We may require more information.
(b) If you violate any of the terms, conditions, instructions, or requirements to qualify for an exemption, we may void, revoke, or suspend the exemption.
(c) If you use an exemption under this subpart, we may require you to add a permanent or temporary label to your exempted engines/equipment.  You may ask us to modify these labeling requirements if it is appropriate for your engine/equipment.
(d) If you produce engines/equipment we exempt under this subpart, we may require you to make and keep records, perform tests, make reports and provide information as needed to reasonably evaluate the validity of the exemption.
(e) If you own or operate engines/equipment we exempt under this subpart, we may require you to provide information as needed to reasonably evaluate the validity of the exemption.
(f) Subpart D of this part describes how we apply these exemptions to engines/equipment you import (or intend to import).
(g) If you want to ask for an exemption or need more information, write to the Designated Compliance Officer.
(h) You may ask us to modify the administrative requirements for the exemptions described in this subpart or in subpart D of this part.  We may approve your request if we determine that such approval is consistent with the intent of this part.  For example, waivable administrative requirements might include some reporting requirements, but would not include any eligibility requirements or use restrictions.
(i) If you want to take an action with respect to an exempted or excluded engine/equipment that is prohibited by the exemption or exclusion, such as selling it, you need to certify the engine/equipment or qualify for a different exemption.
   (1) We will issue a certificate of conformity if you send us an application for certification showing that you meet all the applicable requirements from the standard-setting part and pay the appropriate fee.  Alternatively, we may allow you to include in an existing certified engine family those engines/equipment you modify (or otherwise demonstrate) to be identical to engines/equipment already covered by the certificate.  We would base such an approval on our review of any appropriate documentation.  These engines/equipment must have emission control information labels that accurately describe their status.
   (2) The exemption provisions of this part may be applied to new engines without regard to whether or not they have already been certified or exempted.  You may ask to apply the exemption provisions prospectively to used engines to cover circumstances not otherwise allowed by the original certification or exemption.  Note that application of new exemption provisions does not apply with respect to actions that occur before the new exemption applies. For example, you may ask for a testing exemption for a new or used engine that has already been introduced into commerce under a competition exemption, but the testing exemption would not cover non-competition use that occurred before we approved the testing exemption.

§1068.210  Exempting test engines/equipment.
(a) We may exempt engines/equipment that you will use for research, investigations, studies, demonstrations, or training.  Note that you are not required to get an exemption under this section for engines that are exempted under other provisions of this part, such as the manufacturer-owned exemption in §1068.215.
(b) Anyone may ask for a testing exemption.
(c)  If you are a certificate holder, you may request an exemption for engines/equipment you intend to include in test programs over a two-year period.
   (1) In your request, tell us the maximum number of engines/equipment involved and describe how you will make sure exempted engines/equipment are used only for this testing.  For example, if the exemption will involve other companies using your engines/equipment, describe your plans to track individual units so you can properly report on their final disposition.
   (2) Give us the information described in paragraph (d) of this section if we ask for it.
 (d)  If you are not a certificate holder, do all the following things:
   (1)  Show that the proposed test program has a valid purpose under paragraph (a) of this section.
   (2)  Show you need an exemption to achieve the purpose of the test program (time constraints may be a basis for needing an exemption, but the cost of certification alone is not).
   (3)  Estimate the duration of the proposed test program and the number of engines/equipment involved.
   (4)  Allow us to monitor the testing.
   (5)  Describe how you will ensure that you stay within this exemption's purposes.  Address at least the following things:
      (i) The technical nature of the test.
      (ii) The test site.
      (iii) The duration and accumulated engine/equipment operation associated with the test.
      (iv) Ownership and control of the engines/equipment involved in the test.
      (v) The intended final disposition of the engines/equipment.
      (vi) How you will identify, record, and make available the engine/equipment identification numbers.
      (vii) The means or procedure for recording test results.
(e)  If we approve your request for a testing exemption, we will send you a letter or a memorandum describing the basis and scope of the exemption.  It will also include any necessary terms and conditions, which normally require you to do the following:
   (1)  Stay within the scope of the exemption.
   (2)  Create and maintain adequate records that we may inspect.
   (3)  Add a permanent label to all engines/equipment exempted under this section, consistent with §1068.45, with at least the following items:
      (i) The label heading "EMISSION CONTROL INFORMATION".
      (ii) Your corporate name and trademark.
      (iii) Engine displacement, family identification, and model year of the engine/equipment (as applicable), or whom to contact for further information.
      (iv) The statement: "THIS [engine, equipment, vehicle, etc.]IS EXEMPT UNDER 40 CFR 1068.210 OR 1068.215 FROM EMISSION STANDARDS AND RELATED REQUIREMENTS."
   (4)  Tell us when the test program is finished.
   (5)  Tell us the final disposition of the engines/equipment.

§1068.215  Exempting manufacturer-owned engines/equipment.
(a)  You are eligible for this exemption for manufacturer-owned engines/equipment only if you are a certificate holder.  Any engine for which you meet all applicable requirements under this section is exempt without request.
(b)  Engines/equipment may be exempt without a request if they are nonconforming engines/equipment under your ownership, possession, and control and you do not operate them for purposes other than to develop products, assess production methods, or promote your engines/equipment in the marketplace, or other purposes we approve.  You may not loan, lease, sell, or use the engine/equipment to generate revenue, either by itself or for an engine installed in a piece of equipment, except as allowed by §1068.201(i).  Note that this paragraph (b) does not prevent the sale or shipment of a partially complete engine to a secondary engine manufacturer that will meet the requirements of this paragraph (b).  See §1068.262 for provisions related to shipping partially complete engines to secondary engine manufacturers.
(c)  To use this exemption, you must do three things:
   (1) Establish, maintain, and keep adequately organized and indexed information on all exempted engines/equipment, including the engine/equipment identification number, the use of the engine/equipment on exempt status, and the final disposition of any engine/equipment removed from exempt status.
   (2)  Let us access these records, as described in §1068.20.
   (3)  Add a permanent label to all engines/equipment exempted under this section, consistent with §1068.45, with at least the following items:
      (i) The label heading "EMISSION CONTROL INFORMATION".
      (ii) Your corporate name and trademark.
      (iii) Family identification and model year of the engine/equipment (as applicable), or whom to contact for further information.
      (iv) The statement: "THIS [engine, equipment, vehicle, etc.] IS EXEMPT UNDER 40 CFR 1068.210 OR 1068.215 FROM EMISSION STANDARDS AND RELATED REQUIREMENTS."

§1068.220  Exempting display engines/equipment.
(a) Anyone may request an exemption for display engines/equipment.
(b) Nonconforming display engines/equipment will be exempted if they are used only for displays in the interest of a business or the general public.  This exemption does not apply to engines/equipment displayed for private use, private collections, or any other purpose we determine is inappropriate for a display exemption.
(c)  You may operate the exempted engine/equipment, but only if we approve specific operation that is part of the display, or is necessary for the display (possibly including operation that is indirectly necessary for the display).  We may consider any relevant factor in our approval process, including the extent of the operation, the overall emission impact, and whether the engine/equipment meets emission requirements of another country.
(d)  You may sell or lease the exempted engine/equipment only with our advance approval.
(e)  To use this exemption, you must add a permanent label to all engines/equipment exempted under this section, consistent with §1068.45, with at least the following items:
   (1) The label heading "EMISSION CONTROL INFORMATION".
   (2) Your corporate name and trademark.
   (3) Engine displacement, family identification, and model year of the engine/equipment (as applicable), or whom to contact for further information.
   (4) The statement: "THIS [engine, equipment, vehicle, etc.]IS EXEMPT UNDER 40 CFR 1068.220 FROM EMISSION STANDARDS AND RELATED REQUIREMENTS."
(f)  We may set other conditions for approval of this exemption.

§1068.225  Exempting engines/equipment for national security.
(a) An engine/equipment is exempt without a request if it will be used or owned by an agency of the federal government responsible for national defense, where the equipment in which it is installed has armor, permanently attached weaponry, or other substantial features typical of military combat.
(b) Manufacturers may request a national security exemption for engines/equipment not meeting the conditions of paragraph (a) of this section as long as the request is endorsed by an agency of the federal government responsible for national defense. In your request, explain why you need the exemption.
(c) [Reserved].
(d) Add a permanent label to all engines/equipment exempted under this section, consistent with §1068.45, with at least the following items:
   (1) The label heading "EMISSION CONTROL INFORMATION".
   (2) Your corporate name and trademark.
   (3) Engine displacement, family identification, and model year of the engine/equipment (as applicable), or whom to contact for further information.
   (4) The statement: "THIS [engine, equipment, vehicle, etc.] HAS AN EXEMPTION FOR NATIONAL SECURITY UNDER 40 CFR 1068.225."

§1068.230  Exempting engines/equipment for export.
The provisions of this section apply differently depending on the country to which the engines/equipment are being exported.
(a) We will not exempt new engines/equipment if you export them to a country with emission standards identical to ours, in which case they must be covered by a certificate of conformity.  Where we determine that such engines/equipment will not be placed into service in the United States, the following provisions apply for special export-only certification:
   (1) The engines/equipment must be covered by a certificate of conformity or equivalent approval issued by the destination country.
   (2) To get an export-only certificate of conformity, send the Designated Compliance Officer a request.  We may require you to provide information such as documentation of the foreign certification and related test data.
   (3) No fees apply for export-only certification.
   (4) The engines/equipment must be labeled as specified in paragraph (d) of this section.
   (5) This export-only certificate is not considered a valid certificate of conformity with respect to the prohibition in §1068.101(a)(1) for sale to ultimate purchasers in the United States.  These engines/equipment also may not reenter the United States unless the regulations of this chapter otherwise allow it.
(b)  Engines/equipment exported to a country not covered by paragraph (a) of this section are exempt from the prohibited acts in this part without a request.  If you produce exempt engines/equipment for export and any of them are sold or offered for sale to an ultimate purchaser in the United States, the exemption is automatically void for those engines/equipment. You may operate engines/equipment in the United States only as needed to prepare and deliver them for export.
(c) Except as specified in paragraph (d) of this section, label exempted engines/equipment (including shipping containers if the label on the engine/equipment will be obscured by the container) with a label showing that they are not certified for sale or use in the United States.  This label may be permanent or removable.  See §1068.45 for provisions related to the use of removable labels and applying labels to containers without labeling individual engines/equipment.  The label must include your corporate name and trademark and the following statement:  "THIS [engine, equipment, vehicle, etc.] IS SOLELY FOR EXPORT AND IS THEREFORE EXEMPT UNDER 40 CFR 1068.230 FROM U.S. EMISSION STANDARDS AND RELATED REQUIREMENTS."