changes) without receiving the Administrator's prior approval. The
manufacturer shall assure (by conducting emission tests as it deems
necessary) that the affected vehicles (engines) remain in compliance
with the requirements of this part.
    (ii) The manufacturer shall notify the Administrator within seven
days after implementing any production related change (running change)
that would affect vehicle emissions. This notification shall include
any changes to the information required under paragraph (c)(5)(i) of
this section. The manufacturer shall also amend as necessary its
records required under paragraph (c)(2) of this section to confirm the
production design change.
    (8) Section 86.082-34 is not applicable.

0
39. Section 86.094-25 is amended by revising paragraphs (b)(2) and
(b)(7)(iii) to read as follows:

Sec.  86.094-25   Maintenance.

* * * * *
    (b) * * *
    (2) Any emission-related maintenance which is performed on
vehicles, engines, subsystems, or components must be technologically
necessary to assure in-use compliance with the emission standards. The
manufacturer must submit data which demonstrate to the Administrator
that all of the emission-related scheduled maintenance which is to be
performed is technologically necessary. Scheduled maintenance must be
approved by the Administrator prior to being performed or being
included in the maintenance instructions provided to purchasers under
Sec.  86.010-38.
* * * * *
    (7) * * *
    (iii) Any manufacturer may request a hearing on the Administrator's
determinations in this paragraph (b)(7). The request shall be in
writing and shall include a statement specifying the manufacturer's
objections to the Administrator's determinations, and data in support
of such objections. If, after review of the request and supporting
data, the Administrator finds that the request raises a substantial
factual issue, he shall provide the manufacturer a hearing as described
in 40 CFR part 1068, subpart G.
* * * * *

Sec. Sec.  86.094-30 and 86.095-14  [Removed]

0
40. Remove Sec. Sec.  86.094-30 and 86.095-14.

0
41. Section 86.095-35 is amended by:
0
a. Revising paragraphs (a) introductory text, (a)(3)(iii)(B), (H), (I),
(J), and (K);
0
b. Adding paragraph (c); and
0
c. Revising paragraph (i).
    The revisions and addition read as follows:

Sec.  86.095-35  Labeling.

    (a) The manufacturer of any motor vehicle (or motor vehicle engine)
subject to the applicable emission standards (and family emission
limits, as appropriate) of this subpart, shall, at the time of
manufacture, affix a permanent legible label, of the type and in the
manner described below, containing the information hereinafter
provided, to all production models of such vehicles (or engines)
available for sale to the public and covered by a Certificate of
Conformity under Sec.  86.007-30(a).
* * * * *
    (3) * * *
    (iii) * * *
    (B) The full corporate name and trademark of the manufacturer;
though the label may identify another company and use its trademark
instead of the manufacturer's as long as the manufacturer complies with
the branding provisions of 40 CFR 1068.45.
* * * * *
    (H) The prominent statement: ``This engine conforms to U.S. EPA
regulations applicable to XXXX Model Year New Heavy-Duty Engines.'';
    (I) If the manufacturer has an alternate useful life period under
the provisions of Sec.  86.094-21(f), the prominent statement: ``This
engine has been certified to meet U.S. EPA standards for a useful-life
period of XXX miles or XXX hours of operation, whichever occurs first.
This engine's actual life may vary depending on its service
application.'' The manufacturer may alter this statement only to
express the assigned alternate useful life in terms other than miles or
hours (e.g., years, or hours only);
    (J) For diesel engines, the prominent statement: ``This engine has
a primary intended service application as a XXX heavy-duty engine.''
(The primary intended service applications are light, medium, and
heavy, as defined in Sec.  86.090-2.);
    (K) For engines certified under the alternative standards specified
in Sec.  86.007-11(g) or Sec.  86.008-10(g), the following statement:
``This engine is certified for only in specialty vehicles as specified
in [40 CFR 86.007-11 or 40 CFR 86.008-10]'';
* * * * *
    (c) Vehicles powered by model year 2007 through 2013 diesel-fueled
engines must include permanent, readily visible labels on the dashboard
(or instrument panel) and near all fuel inlets that state ``Use Ultra
Low Sulfur Diesel Fuel Only''; or ``Ultra Low Sulfur Diesel Fuel
Only''.
* * * * *
    (i) The Administrator may approve in advance other label content
and formats, provided the alternative label contains information
consistent with this section.

Sec.  86.098-14  [Removed]

0
42. Remove Sec.  86.098-14.

Subpart B--Emission Regulations for 1977 and Later Model Year New
Light-Duty Vehicles and New Light-Duty Trucks and New Otto-Cycle
Complete Heavy-Duty Vehicles; Test Procedures

0
43. Section 86.143-96 is amended by revising the equation in paragraph
(b)(1)(i) to read as follows:

Sec.  86.143-96  Calculations; evaporative emissions.

* * * * *
    (b) * * *
    (1) * * *
    (i) * * *
    [GRAPHIC] [TIFF OMITTED] TR25OC16.309

* * * * *

Subpart E--Emission Regulations for 1978 and Later New Motorcycles,
General Provisions

0
44. Section 86.402-78 is amended by adding, in alphabetical order, a
definition for ``Round'' to paragraph (a) to read as follows:

Sec.  86.402-78  Definitions.

    (a) * * *
    Round has the meaning given in 40 CFR 1065.1001, unless otherwise
specified.
* * * * *

0
45. Section 86.410-2006 is amended by revising paragraph (e)
introductory text to read as follows:

Sec.  86.410-2006  Emission standards for 2006 and later model year
motorcycles.

* * * * *
    (e) Manufacturers with fewer than 500 employees worldwide and
producing fewer than 3,000 motorcycles per year for the United States
are considered small-volume manufacturers for the purposes of this
section. The following provisions apply for these small-volume
manufacturers:
* * * * *

Sec.  86.419-78  [Removed]

0
46. Section 86.419-78 is removed.

0
47. Section 86.419-2006 is amended by revising paragraph (a)(1) to read
as follows:

Sec.  86.419-2006  Engine displacement, motorcycle classes.

    (a)(1) Engine displacement shall be calculated using nominal engine
values and rounded to the nearest whole cubic centimeter.
* * * * *

0
48. Section 86.432-78 is amended by revising paragraph (d) to read as
follows:

Sec.  86.432-78  Deterioration factor.

* * * * *
    (d) An exhaust emission deterioration factor will be calculated by
dividing the predicted emissions at the useful life distance by the
predicted emissions at the total test distance. Predicted emissions are
obtained from the correlation developed in paragraph (c) of this
section. Factor = Predicted total distance emissions / Predicted total
test distance emissions.
    These interpolated and extrapolated values shall be carried out to
four places to the right of the decimal point before dividing one by
the other to determine the deterioration factor. The results shall be
rounded to three places to the right of the decimal point.
* * * * *

0
49. Section 86.443-78 is revised to read as follows:

Sec.  86.443-78  Request for hearing.

    The manufacturer may request a hearing on the Administrator's
determination as described in 40 CFR part 1068, subpart G.

0
50. Section 86.444-78 is revised to read as follows:

Sec.  86.444-78  Hearings on certification.

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

Subpart F--Emission Regulations for 1978 and Later New Motorcycles;
Test Procedures

0
51. Section 86.544-90 is amended by revising the introductory text and
paragraph (a) to read as follows:

Sec.  86.544-90  Calculations; exhaust emissions.

    This section describes how to calculate exhaust emissions.
Determine emission results for each pollutant to at least one more
decimal place than the applicable standard. Apply the deterioration
factor, then round the adjusted figure to the same number of decimal
places as the emission standard. Compare the rounded emission levels to
the emission standard for each emission data vehicle. In the case of
NOX + HC standards, apply the deterioration factor to each
pollutant and then add the results before rounding.
    (a) Calculate a composite FTP emission result using the following
equation:
[GRAPHIC] [TIFF OMITTED] TR25OC16.039

Where:

Ywm = Weighted mass emissions of each pollutant (i.e.,
CO2, HC, CO, or NOX) in grams per vehicle
kilometer and if appropriate, the weighted carbon mass equivalent of
total hydrocarbon equivalent, in grams per vehicle kilometer.
Yct = Mass emissions as calculated from the transient
phase of the cold-start test, in grams per test phase.
Ys = Mass emissions as calculated from the stabilized
phase of the cold-start test, in grams per test phase.
Dct = The measured driving distance from the transient
phase of the cold-start test, in kilometers.
Ds = The measured driving distance from the stabilized
phase of the cold-start test, in kilometers.
Yht = Mass emissions as calculated from the transient
phase of the hot-start test, in grams per test phase.
Dht = The measured driving distance from the transient
phase of the hot-start test, in kilometers.
* * * * *

Subpart G--Selective Enforcement Auditing of New Light-Duty
Vehicles, Light-Duty Trucks, and Heavy-Duty Vehicles

0
52. Section 86.614-84 is revised to read as follows:

Sec.  86.614-84  Hearings on suspension, revocation, and voiding of
certificates of conformity.

    The provisions of 40 CFR part 1068, subpart G, apply if a
manufacturer requests a hearing regarding suspension, revocation or
voiding of certificates of conformity.

0
53. Section 86.615-84 is revised to read as follows:

Sec.  86.615-84  Treatment of confidential information.

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

Subpart L--Nonconformance Penalties for Gasoline-Fueled and Diesel
Heavy-Duty Engines and Heavy-Duty Vehicles, Including Light-Duty
Trucks

Sec.  86.1103-87  [Removed]

0
54. Section 86.1103-87 is removed.

0
55. Section 86.1103-2016 is added to subpart L to read as follows:

Sec.  86.1103-2016  Criteria for availability of nonconformance
penalties.

    (a) General. This section describes the three criteria EPA will use
to use to evaluate whether NCPs are appropriate under the Clean Air Act
for a given pollutant and a given subclass of heavy-duty engines and
heavy-duty vehicles. Together, these criteria evaluate the likelihood
that a manufacturer will be technologically unable to meet a standard
on time. Note that since the first two of these criteria are intended
to address the question of whether a given standard creates the
possibility for this to occur, they are evaluated before the third
criterion that addresses the likelihood that the possibility will
actually happen.
    (b) Criteria. We will establish NCPs for a given pollutant and
subclass when we find that each of the following criteria is met:

    (1) There is a new or revised emission standard is more
stringent than the previous standard for the pollutant, or an
existing standard for that pollutant has become more difficult to
achieve because of a new or revised standard. When evaluating this
criterion, EPA will consider a new or revised standard to be ``new''
or ``revised'' until the point at which all manufacturers already
producing U.S.-directed engines or vehicles within the subclass have
achieved full compliance with the standard. For purposes of this
criterion, EPA will generally not consider compliance using banked
emission credits to be ``full compliance''.
    (2) Substantial work is required to meet the standard for which
the NCP is offered, as evaluated from the point at which the
standard was adopted or revised (or the point at which the standard
became more difficult meet because another standard was adopted or
revised). Substantial work, as used in this paragraph (b)(2), means
the application of technology not previously used in an engine or
vehicle class or subclass, or the significant modification of
existing technology or design parameters, needed to bring the
vehicle or engine into compliance with either the more stringent new
or revised standard or an existing standard which becomes more
difficult to achieve because of a new or revised standard. Note that
where this criterion is evaluated after any of the work has been
completed, the criterion would be interpreted as whether or not
substantial work was required to meet the standard.
    (3) There is or is likely to be a technological laggard for the
subclass. Note that a technological laggard is a manufacturer that
is unable to meet the standard for one or more products within the
subclass for technological reasons.
    (c) Evaluation. (1) We will generally evaluate these criteria in
sequence. Where we find that the first criterion has not been met,
we will not consider the other two criteria. Where we find that the
first criterion has been met but not the second, we will not
consider the third criterion. We may announce our findings
separately or simultaneously.
    (2) We may consider any available information in making our
findings.
    (3) Where we are uncertain whether the first and/or second
criteria have been met, we may presume that they have been met and
make our decision based solely on whether or not the third criterion
has been met.
    (4) Where we find that a manufacturer will fail to meet a
standard but are uncertain whether the failure is a technological
failure, we may presume that the manufacturer is a technological
laggard.

Sec.  86.1104-91   [Removed]

0
56. Section 86.1104-91 is removed.

0
57. Section 86.1104-2016 is added to subpart L to read as follows:

Sec.  86.1104-2016  Determination of upper limits.

    EPA shall set a separate upper limit for each phase of NCPs and for
each service class.
    (a) Except as provided in paragraphs (b), (c) and (d) of this
section, the upper limit shall be set as follows:
    (1) The upper limit applicable to a pollutant emission standard for
a subclass of heavy-duty engines or heavy-duty vehicles for which an
NCP is established in accordance with Sec.  86.1103-87, shall be the
previous pollutant emission standard for that subclass.
    (2) If a manufacturer participates in any of the emissions
averaging, trading, or banking programs, and carries over certification
of an engine family from the prior model year, the upper limit for that
engine family shall be the family emission limit of the prior model
year, unless the family emission limit is less than the upper limit
determined in paragraph (a)(1) of this section.

    (b) If no previous standard existed for the pollutant under
paragraph (a) of this section, the upper limit will be developed by EPA
during rulemaking.
    (c) EPA may set the upper limit during rulemaking at a level below
the level specified in paragraph (a) of this section if we determine
that a lower level is achievable by all engines or vehicles in that
subclass.
    (d) EPA may set the upper limit at a level above the level
specified in paragraph (a) of this section if we determine that such
level will not be achievable by all engines or vehicles in that
subclass.

0
58. Section 86.1105-87 is amended by revising paragraph (e) and
removing paragraph (j).
    The revision reads as follows:

Sec.  86.1105-87  Emission standards for which nonconformance penalties
are available.

* * * * *
    (e) The values of COC50, COC90, and
MC50 in paragraphs (a) and (b) of this section are expressed
in December 1984 dollars. The values of COC50,
COC90, and MC50 in paragraphs (c) and (d) of this
section are expressed in December 1989 dollars. The values of
COC50, COC90, and MC50 in paragraph
(f) of this section are expressed in December 1991 dollars. The values
of COC50, COC90, and MC50 in
paragraphs (g) and (h) of this section are expressed in December 1994
dollars. The values of COC50, COC90, and
MC50 in paragraph (i) of this section are expressed in
December 2001 dollars. These values shall be adjusted for inflation to
dollars as of January of the calendar year preceding the model year in
which the NCP is first available by using the change in the overall
Consumer Price Index, and rounded to the nearest whole dollar.
* * * * *

0
59. Section 86.1112-87 is amended by revising paragraphs (a)(2)(iii),
(a)(3)(iii), (d) and (e)(2) to read as follows:

Sec.  86.1112-87  Determining the compliance level and reporting of
test results.

    (a) * * *
    (2) * * *
    (iii) The compliance level for the pollutant is the result of the
following equation, using the test results obtained in paragraph
(a)(2)(ii) of this section and all SEA test results for that pollutant
if the PCA follows an SEA failure:

CL = X + Ks

Where:

CL = The compliance level.
X= The mean of the final deteriorated test results, as defined by
paragraph (e) of this section.
K = A value that depends on the size of the test sample. See table 2
of appendix XII of this part for the value of K that corresponds to
the size of the test sample.
s = The sample standard deviation.
Round the compliance level to the same number of significant figures
contained in the applicable standard.

    (3) * * *
    (iii) The compliance level for the pollutant is the result of the
following equation, using the test results obtained in (a)(3)(ii) and
all SEA test results for that pollutant if the PCA follows an SEA
failure:

CL = X + Ks

Where:

CL = The compliance level.
X = The mean of the final deteriorated test results, as defined by
paragraph (e) of this section.
K = A value that depends on the size of the test sample. See table 3
of appendix XII of this part for the value of K that corresponds to
the size of the test sample.
s = The sample standard deviation.
    Round the compliance level to the same number of significant
figures contained in the applicable standard.
* * * * *
    (d) Final test results are calculated by summing the initial test
results derived in paragraph (c) of this section for each test engine
or vehicle, dividing by the number of tests conducted on the engine or
vehicle, and rounding to the same number of decimal places contained in
the applicable standard expressed to one additional significant figure.
    (e) * * *
    (2) Round the final deteriorated test results to the same number of
significant figures contained in the applicable standard.
* * * * *

0
60. Section 86.1113-87 is amended by revising paragraphs (a)(6), (f)
and (g)(3) introductory text to read as follows:

Sec.  86.1113-87  Calculation and payment of penalty.

    (a) * * *
    (6) In calculating the NCP, appropriate values of the following
predefined terms should be used: CL, S, UL, F, and Ai. For
all other terms, unrounded values of at least five figures beyond the
decimal point should be used in calculations leading up to the penalty
amount. Any NCP calculated under paragraph (a) of this section will be
rounded to the nearest dollar.
* * * * *
    (f) A manufacturer may request a hearing under 40 CFR part 1068,
subpart G, as to whether the compliance level (including a compliance
level in excess of the upper limit) was determined properly.
    (g) * * *
    (3) A manufacturer making payment under paragraph (g)(1) or (2) of
this section shall submit the following information by each quarterly
due date to the Designated Compliance Officer (see 40 CFR 1036.801).
This information shall be submitted even if a manufacturer has no NCP
production in a given quarter.
* * * * *

0
61. Section 86.1115-87 is revised to read as follows:

Sec.  86.1115-87  Hearing procedures for nonconformance determinations
and penalties.

    The provisions of 40 CFR part 1068, subpart G, apply if a
manufacturer requests a hearing regarding penalties under this subpart.

Subpart N--Exhaust Test Procedures for Heavy-Duty Engines

0
62. Section 86.1301 is revised to read as follows:

Sec.  86.1301   Scope; applicability.

    This subpart specifies gaseous emission test procedures for Otto-
cycle and diesel heavy-duty engines, and particulate emission test
procedures for diesel heavy-duty engines.

0
63. Section 86.1362 is amended by revising paragraph (a) to read as
follows:

Sec.  86.1362  Steady-state testing with a ramped-modal cycle.

* * * * *
    (a) Measure emissions by testing the engine on a dynamometer with
the following ramped-modal duty cycle to determine whether it meets the
applicable steady-state emission standards:

----------------------------------------------------------------------------------------------------------------
                                  Time  in mode                            Torque (percent) 2 3   CO2  weighting
            RMC mode                (seconds)      Engine speed \1\ \2\                            (percent) \4\
----------------------------------------------------------------------------------------------------------------
1a Steady-state................             170  Warm Idle..............  0.....................               6
1b Transition..................              20  Linear Transition......  Linear Transition.....

2a Steady-state................             173  A......................  100...................               9
2b Transition..................              20  Linear Transition......  Linear Transition.....
3a Steady-state................             219  B......................  50....................              10
3b Transition..................              20  B......................  Linear Transition.....
4a Steady-state................             217  B......................  75....................              10
4b Transition..................              20  Linear Transition......  Linear Transition.....
5a Steady-state................             103  A......................  50....................              12
5b Transition..................              20  A......................  Linear Transition.....
6a Steady-state................             100  A......................  75....................              12
6b Transition..................              20  A......................  Linear Transition.....
7a Steady-state................             103  A......................  25....................              12
7b Transition..................              20  Linear Transition......  Linear Transition.....
8a Steady-state................             194  B......................  100...................               9
8b Transition..................              20  B......................  Linear Transition.....
9a Steady-state................             218  B......................  25....................               9
9b Transition..................              20  Linear Transition......  Linear Transition.....
10a Steady-state...............             171  C......................  100...................               2
10b Transition.................              20  C......................  Linear Transition.....
11a Steady-state...............             102  C......................  25....................               1
11b Transition.................              20  C......................  Linear Transition.....
12a Steady-state...............             100  C......................  75....................               1
12b Transition.................              20  C......................  Linear Transition.....
13a Steady-state...............             102  C......................  50....................               1
13b Transition.................              20  Linear Transition......  Linear Transition.....
14 Steady-state................             168  Warm Idle..............  0.....................               6
----------------------------------------------------------------------------------------------------------------
\1\ Speed terms are defined in 40 CFR part 1065.
\2\ Advance from one mode to the next within a 20-second transition phase. During the transition phase, command
  a linear progression from the speed or torque setting of the current mode to the speed or torque setting of
  the next mode.
\3\ The percent torque is relative to maximum torque at the commanded engine speed.
\4\ Use the specified weighting factors to calculate composite emission results for CO2 as specified in 40 CFR
  1036.501.

* * * * *

0
64. Section 86.1370 is amended by revising paragraphs (g) and (h) and
adding paragraphs (i) and (j) to read as follows:

Sec.  86.1370  Not-To-Exceed test procedures.

* * * * *
    (g) You may exclude emission data based on catalytic aftertreatment
temperatures as follows:
    (1) For an engine equipped with a catalytic NOX
aftertreatment system, exclude NOX emission data that is
collected when the exhaust temperature at any time during the NTE event
is less than 250 [deg]C.
    (2) For an engine equipped with an oxidizing catalytic
aftertreatment system, exclude NMHC and CO emission data that is
collected if the exhaust temperature is less than 250 [deg]C at any
time during the NTE event.
    (3) Using good engineering judgment, measure exhaust temperature
within 30 cm downstream of the last applicable catalytic aftertreatment
device. Where there are parallel paths, use good engineering judgment
to measure the temperature within 30 cm downstream of the last
applicable catalytic aftertreatment device in the path with the
greatest exhaust flow.
    (h) Any emission measurements corresponding to engine operating
conditions that do not qualify as a valid NTE sampling event may be
excluded from the determination of the vehicle-pass ratio specified in
Sec.  86.1912 for the specific pollutant.
    (i) Start emission sampling at the beginning of each valid NTE
sampling event, except as needed to allow for zeroing or conditioning
the PEMS. For gaseous emissions, PEMS preparation must be complete for
all analyzers before starting emission sampling.
    (j) Emergency vehicle AECDs. If your engine family includes engines
with one or more approved AECDs for emergency vehicle applications
under paragraph (4) of the definition of ``defeat device'' in Sec.
86.1803, the NTE emission limits do not apply when any of these AECDs
are active.

Subpart S--General Compliance Provisions for Control of Air
Pollution From New and In-Use Light-Duty Vehicles, Light-Duty
Trucks, and Heavy-Duty Vehicles

0
65. Section 86.1801-12 is amended as follows:
0
a. By removing and reserving paragraph (a)(2)(ii).
0
b. By revising paragraph (a)(3)(i).
0
c. By redesignating paragraphs (a)(3)(ii) through (iv) as paragraphs
(a)(3)(iii) through (v), respectively.
0
d. By adding a new paragraph (a)(3)(ii).
    The revision and addition read as follows:

Sec.  86.1801-12  Applicability.

    (a) * * *
    (3) * * *
    (i) Heavy duty vehicles above 14,000 pounds GVWR may be optionally
certified to the exhaust emission standards in this subpart, including
the greenhouse gas emission standards, if they are properly included in
test group with similar vehicles at or below 14,000 pounds GVWR.
Emission standards apply to these vehicles as if they were Class 3
heavy-duty vehicles. The work factor for these vehicles may not be
greater than the largest work factor that applies for vehicles in the
test group that are at or below 14,000 pounds GVWR (see Sec.  86.1819-
14).
    (ii) Incomplete heavy-duty vehicles at or below 14,000 pounds GVWR
may be optionally certified to the exhaust emission standards in this
subpart that apply for heavy-duty vehicles.
* * * * *

0
66. Section 86.1802-01 is revised to read as follows:

Sec.  86.1802-01  Section numbering; construction.

    (a) Section numbering. The model year of initial applicability is
indicated by the section number. The two digits following the hyphen
designate the first

model year for which a section is applicable. The section continues to
apply to subsequent model years unless a later model year section is
adopted. Example: Section 86.18xx-10 applies to model year 2010 and
later vehicles. If a Sec.  86.18xx-17 is promulgated, it would apply
beginning with the 2017 model year; Sec.  86.18xx-10 would apply only
to model years 2010 through 2016, except as specified in Sec.  86.18xx-
17.
    (b) A section reference without a model year suffix refers to the
section applicable for the appropriate model year.
    (c) If a regulation in this subpart references a section that has
been superseded or no longer exists, this should be understood as a
reference to the same section for the appropriate model year. For
example, if a regulation in this subpart refers to Sec.  86.1845-01, it
should be taken as a reference to Sec.  86.1845-04 or any later version
of Sec.  86.1845 that applies for the appropriate model year. However,
this does not apply if the reference to a superseded section
specifically states that the older provision applies instead of any
updated provisions from the section in effect for the current model
year; this occurs most often as part of the transition to new emission
standards.

0
67. Section 86.1803-01 is amended as follows:
0
a. By revising the definitions for ``Base level'', ``Base tire'',
``Base vehicle'', and ``Basic engine''.
0
b. By adding a definition for ``Cab-complete vehicle'' in alphabetical
order.
0
c. By revising the definitions for ``Carbon-related exhaust emissions
(CREE)'', ``Configuration'', paragraph (1) of ``Emergency vehicle'',
``Engine code'', ``Federal Test Procedure'', ``Highway Fuel Economy
Test Procedure (HFET)'', ``Mild hybrid electric vehicle'', ``Model
type'', ``Production volume'', ``Strong hybrid electric vehicle'',
``Subconfiguration'', ``Transmission class'', and ``Transmission
configuration''.
0
d. By adding a definition for ``Transmission type'' in alphabetical
order.
    The revisions and additions read as follows:

Sec.  86.1803-01  Definitions.

    * Baselevel has the meaning given in 40 CFR 600.002 for LDV, LDT,
and MDPV. See Sec.  86.1819-14 for heavy-duty vehicles.
    Base tire has the meaning given in 40 CFR 600.002 for LDV, LDT, and
MDPV.
    Base vehicle has the meaning given in 40 CFR 600.002 for LDV, LDT,
and MDPV.
    Basic engine has the meaning given in 40 CFR 600.002.
* * * * *
    Cab-complete vehicle means a heavy-duty vehicle that is first sold
as an incomplete vehicle that substantially includes its cab. Vehicles
known commercially as chassis-cabs, cab-chassis, box-deletes, bed-
deletes, cut-away vans are considered cab-complete vehicles. For
purposes of this definition, a cab includes a steering column and
passenger compartment. Note that a vehicle lacking some components of
the cab is a cab-complete vehicle if it substantially includes the cab.
* * * * *
    Carbon-related exhaust emissions (CREE) has the meaning given in 40
CFR 600.002 for LDV, LDT, and MDPV.
* * * * *
    Configuration means one of the following:
    (1) For LDV, LDT, and MDPV, configuration means a subclassification
within a test group which is based on engine code, inertia weight
class, transmission type and gear ratios, final drive ratio, and other
parameters which may be designated by the Administrator.
    (2) For HDV, configuration has the meaning given in Sec.  86.1819-
14(d)(12).
* * * * *
    Emergency vehicle * * *
    (1) For the greenhouse gas emission standards in Sec.  86.1818,
emergency vehicle means a motor vehicle manufactured primarily for use
as an ambulance or combination ambulance-hearse or for use by the
United States Government or a State or local government for law
enforcement.
* * * * *
    Engine code means one of the following:
    (1) For LDV, LDT, and MDPV, engine code means a unique combination
within a test group of displacement, fuel injection (or carburetor)
calibration, choke calibration, distributor calibration, auxiliary
emission control devices, and other engine and emission control system
components specified by the Administrator. For electric vehicles,
engine code means a unique combination of manufacturer, electric
traction motor, motor configuration, motor controller, and energy
storage device.
    (2) For HDV, engine code has the meaning given in Sec.  86.1819-
14(d)(12).
* * * * *
    Federal Test Procedure has the meaning given in 40 CFR
1066.801(c)(1)(i).
* * * * *
    Highway Fuel Economy Test Procedure (HFET) has the meaning given in
40 CFR 1066.801(c)(3).
* * * * *
    Mild hybrid electric vehicle means a hybrid electric vehicle that
has start/stop capability and regenerative braking capability, where
the recovered energy over the Federal Test Procedure is at least 15
percent but less than 65 percent of the total braking energy, as
measured and calculated according to 40 CFR 600.116-12(d).
    Model type has the meaning given in 40 CFR 600.002 for LDV, LDT,
and MDPV.
* * * * *
    Production volume has the meaning given in 40 CFR 600.002.
* * * * *
    Strong hybrid electric vehicle means a hybrid electric vehicle that
has start/stop capability and regenerative braking capability, where
the recovered energy over the Federal Test Procedure is at least 65
percent of the total braking energy, as measured and calculated
according to 40 CFR 600.116-12(d).
    Subconfiguration means one of the following:
    (1) For LDV, LDT, and MDPV, subconfiguration has the meaning given
in 40 CFR 600.002.
    (2) For HDV, subconfiguration has the meaning given in Sec.
86.1819-14(d)(12).
* * * * *
    Transmission class has the meaning given in 40 CFR 600.002 for LDV,
LDT, and MDPV.
    Transmission configuration has the meaning given in 40 CFR 600.002.
    Transmission type means the basic type of the transmission (e.g.,
automatic, manual, automated manual, semi-automatic, or continuously
variable) and does not include the drive system of the vehicle (e.g.,
front-wheel drive, rear-wheel drive, or four-wheel drive).
* * * * *

0
68. Section 86.1805-17 is amended by revising paragraph (b) to read as
follows:

Sec.  86.1805-17  Useful life.

* * * * *
    (b) Greenhouse gas pollutants. The emission standards in Sec.
86.1818 apply for a useful life of 10 years or 120,000 miles for LDV
and LLDT and 11 years or 120,000 miles for HLDT and MDPV. For non-MDPV
heavy-duty vehicles, the emission standards in Sec.  86.1819 apply for
a useful life of 11 years or 120,000 miles through model year 2020, and
for a useful life of 15 years or 150,000 miles in model year 2021 and
later. Manufacturers may certify based on the useful life as specified
in paragraph (d) of this section if it is different than the

useful life specified in this paragraph (b).
* * * * *

0
69. Section 86.1811-17 is amended by revising paragraphs (b)(8)(iii)(C)
and (g) to read as follows:

Sec.  86.1811-17  Exhaust emission standards for light-duty vehicles,
light-duty trucks and medium-duty passenger vehicles.

* * * * *
    (b) * * *
    (8) * * *
    (iii) * * *
    (C) Vehicles must comply with the Tier 2 SFTP emission standards
for NMHC + NOX and CO for 4,000-mile testing that are
specified in Sec.  86.1811-04(f)(1) if they are certified to
transitional Bin 85 or Bin 110 standards, or if they are certified
based on a fuel without ethanol, or if they are not certified to the
Tier 3 p.m. standard. Note that these standards apply under this
section for alternative fueled vehicles, for flexible fueled vehicles
when operated on a fuel other than gasoline or diesel fuel, and for
MDPVs, even though these vehicles were not subject to the SFTP
standards in the Tier 2 program.
* * * * *
    (g) Cold temperature exhaust emission standards. The standards in
this paragraph (g) apply for certification and in-use vehicles tested
over the test procedures specified in subpart C of this part. These
standards apply only to gasoline-fueled vehicles. Multi-fuel, bi-fuel
or dual-fuel vehicles must comply with requirements using gasoline
only. Testing with other fuels such as a high-level ethanol-gasoline
blend, or testing on diesel vehicles, is not required.
    (1) Cold temperature CO standards. Cold temperature CO exhaust
emission standards apply for testing at both low-altitude conditions
and high-altitude conditions as follows:
    (i) For LDV and LDT1, the standard is 10.0 g/mile CO.
    (ii) For LDT2, LDT3 and LDT4, the standard is 12.5 grams per mile
CO.
    (2) Cold temperature NMHC standards. The following fleet average
cold temperature NMHC standards apply as follows:
    (i) The standards are shown in the following table:

    Table 5 of Sec.   86.1811-17--Fleet Average Cold Temperature NMHC
                       Exhaust Emission Standards
------------------------------------------------------------------------
                                                               Cold
                                                            temperature
                                                            NMHC sales-
                 Vehicle weight category                  weighted fleet
                                                              average
                                                           standard  (g/
                                                               mile)
------------------------------------------------------------------------
LDV and LLDT............................................             0.3
HLDT....................................................             0.5
------------------------------------------------------------------------

    (ii) The manufacturer must calculate its fleet average cold
temperature NMHC emission level(s) as described in Sec.  86.1864-10(m).
    (iii) The standards specified in this paragraph (g)(2) apply only
for testing at low-altitude conditions. However, manufacturers must
submit an engineering evaluation indicating that common calibration
approaches are utilized at high altitudes. Any deviation from low
altitude emission control practices must be included in the auxiliary
emission control device (AECD) descriptions submitted at certification.
Any AECD specific to high altitude must require engineering emission
data for EPA evaluation to quantify any emission impact and validity of
the AECD.
* * * * *

0
70. Section 86.1813-17 is amended by revising paragraphs (a)(1)(ii),
(a)(2)(iii), and (f)(1) to read as follows:

Sec.  86.1813-17   Evaporative and refueling emission standards.

* * * * *
    (a) * * *
    (1) * * *
    (ii) Measure diurnal, running loss, and hot soak emissions as shown
in Sec.  86.130. This includes separate measurements for the two-
diurnal test sequence and the three-diurnal test sequence; however,
gaseous-fueled vehicles are not subject to any evaporative emission
standards using the two-diurnal test sequence.
* * * * *
    (2) * * *
    (iii) Hydrocarbon emissions must not exceed 0.020 g for LDV and LDT
and 0.030 g for HDV when tested using the Bleed Emission Test Procedure
adopted by the California Air Resources Board as part of the LEV III
program. This procedure quantifies diurnal emissions using the two-
diurnal test sequence without measuring hot soak emissions. The
standards in this paragraph (a)(2)(iii) do not apply for testing at
high-altitude conditions. For vehicles with non-integrated refueling
canisters, the bleed emission test and standard do not apply to the
refueling canister. You may perform the Bleed Emission Test Procedure
using the analogous test temperatures and the E10 test fuel specified
in subpart B of this part.
* * * * *
    (f) * * *
    (1) Compressed natural gas vehicles must meet the requirements for
fueling connection devices as specified in ANSI NGV1-2006 or CSA IR-1-
15 (incorporated by reference in Sec.  86.1).
* * * * *

0
71. Section 86.1816-18 is amended by revising paragraphs (a)
introductory text, (b)(7)(i) introductory text, and (b)(9) to read as
follows:

Sec.  86.1816-18  Emission standards for heavy-duty vehicles.

    (a) Applicability and general provisions. This section describes
exhaust emission standards that apply for model year 2018 and later
complete heavy-duty vehicles. These standards are optional for
incomplete heavy-duty vehicles and for heavy duty vehicles above 14,000
pounds GVWR as described in Sec.  86.1801. Greenhouse gas emission
standards are specified in Sec.  86.1818 for MDPV and in Sec.  86.1819
for other HDV. See Sec.  86.1813 for evaporative and refueling emission
standards. This section may apply to vehicles before model year 2018 as
specified in paragraph (b)(11) of this section. Separate requirements
apply for MDPV as specified in Sec.  86.1811. See subpart A of this
part for requirements that apply for incomplete heavy-duty vehicles and
for heavy-duty engines certified independent of the chassis. The
following general provisions apply:
* * * * *
    (b) * * *
    (7) * * *
    (i) The fleet-average FTP emission standard for NMOG +
NOX phases in over several years as described in this
paragraph (b)(7)(i). You must identify FELs as described in paragraph
(b)(4) of this section and calculate a fleet-average emission level to
show that you meet the FTP emission standard for NMOG+NOX
that applies for each model year. You may certify using transitional
bin standards specified in Table 5 of this section through model year
2021; these vehicles are subject to the FTP emission standard for
formaldehyde as described in Sec.  86.1816-08. You may use the E0 test
fuel specified in Sec.  86.113 for gasoline-fueled vehicles certified
to the transitional bins; the useful life period for these vehicles is
120,000 miles or 11 years. Fleet-average FTP emission

standards decrease as shown in the following table:
* * * * *
    (9) Except as specified in paragraph (b)(8) of this section, you
may not use credits generated from vehicles certified under Sec.
86.1816-08 for demonstrating compliance with the Tier 3 standards.
* * * * *

0
72. Section 86.1817-05 is amended by revising paragraph (c)
introductory text to read as follows:

Sec.  86.1817-05  Complete heavy-duty vehicle averaging, trading, and
banking program.

* * * * *
    (c) Calculations. For each participating test group, NOX
emission credits (positive or negative) are to be calculated according
to one of the following equations and rounded to the nearest one-tenth
of a Megagram (Mg). Consistent units are to be used throughout the
equation.
* * * * *

0
73. Section 86.1818-12 is amended by revising paragraphs (a)(2),
(c)(4), and (f)(4) to read as follows:

Sec.  86.1818-12  Greenhouse gas emission standards for light-duty
vehicles, light-duty trucks, and medium-duty passenger vehicles.

    (a) * * *
    (2) The standards specified in this section apply for testing at
both low-altitude conditions and high-altitude conditions. However,
manufacturers must submit an engineering evaluation indicating that
common calibration approaches are utilized at high altitude instead of
performing testing for certification, consistent with Sec.  86.1829.
Any deviation from low altitude emission control practices must be
included in the auxiliary emission control device (AECD) descriptions
submitted at certification. Any AECD specific to high altitude requires
engineering emission data for EPA evaluation to quantify any emission
impact and determine the validity of the AECD.
* * * * *
    (c) * * *
    (4) Emergency vehicles. Emergency vehicles may be excluded from the
emission standards described in this section. The manufacturer must
notify the Administrator that they are making such an election in the
model year reports required under Sec.  600.512 of this chapter. Such
vehicles should be excluded from both the calculation of the fleet
average standard for a manufacturer under this paragraph (c) and from
the calculation of the fleet average carbon-related exhaust emissions
in Sec.  600.510-12.
* * * * *
    (f) * * *
    (4) CO2-equivalent debits. CO2-equivalent
debits for test groups using an alternative N2O and/or
CH4 standard as determined under paragraph (f)(3) of this
section shall be calculated according to the following equation and
rounded to the nearest whole megagram:

Debits = [GWP x (Production) x (AltStd--Std) x VLM] / 1,000,000

Where:

Debits = CO2-equivalent debits for N2O or
CH4, in Megagrams, for a test group using an alternative
N2O or CH4 standard, rounded to the nearest
whole Megagram;
GWP = 25 if calculating CH4 debits and 298 if calculating
N2O debits;
Production = The number of vehicles of that test group domestically
produced plus those imported as defined in Sec.  600.511 of this
chapter;
AltStd = The alternative standard (N2O or CH4)
selected by the manufacturer under paragraph (f)(3) of this section;
Std = The exhaust emission standard for N2O or
CH4 specified in paragraph (f)(1) of this section; and
VLM = 195,264 for passenger automobiles and 225,865 for light
trucks.
* * * * *

0
74. Section 86.1819-14 is added to subpart S to read as follows:

Sec.  86.1819-14  Greenhouse gas emission standards for heavy-duty
vehicles.

    This section describes exhaust emission standards for
CO2, CH4, and N2O for heavy-duty
vehicles. The standards of this section apply for model year 2014 and
later vehicles that are chassis-certified with respect to criteria
pollutants under this subpart S. Additional heavy-duty vehicles may be
optionally subject to the standards of this section as allowed under
paragraph (j) of this section. Any heavy-duty vehicles not subject to
standards under this section are instead subject to greenhouse gas
standards under 40 CFR part 1037, and engines installed in these
vehicles are subject to standards under 40 CFR part 1036. If you are
not the engine manufacturer, you must notify the engine manufacturer
that its engines are subject to 40 CFR part 1036 if you intend to use
their engines in vehicles that are not subject to standards under this
section. Vehicles produced by small businesses may be excluded from the
standards of this section as described in paragraph (k)(5) of this
section.
    (a) Fleet-average CO2 emission standards. Fleet-average
CO2 emission standards apply for the full useful life for
each manufacturer as follows:
    (1) Calculate a work factor, WF, for each vehicle subconfiguration
(or group of subconfigurations as allowed under paragraph (a)(4) of
this section), rounded to the nearest pound, using the following
equation:

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

Where:

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

    (2) Using the appropriate work factor, calculate a target value for
each vehicle subconfiguration (or group of subconfigurations as allowed
under paragraph (a)(4) of this section) you produce using one of the
following equations, or the phase-in provisions in paragraph (k)(4) of
this section, rounding to the nearest whole g/mile:
    (i) For model year 2027 and later vehicles with spark-ignition
engines: CO2 Target (g/mile) = 0.0369 x WF + 284
    (ii) For model year 2027 and later vehicles with compression-
ignition engines or with no engines (such as electric vehicles and fuel
cell vehicles): CO2 Target (g/mile) = 0.0348 x WF + 268
    (3) Calculate a production-weighted average of the target values
and round it to the nearest whole g/mile. This is your fleet-average
standard. All vehicles subject to the standards of this section form a
single averaging set. Use the following equation to calculate your
fleet-average standard from the target value for each vehicle
subconfiguration (Targeti) and U.S.-directed production
volume of each vehicle subconfiguration for the given model year
(Volumei):
[GRAPHIC] [TIFF OMITTED] TR25OC16.040

    (4) You may group subconfigurations within a configuration together
for purposes of calculating your fleet-average standard as follows:
    (i) You may group together subconfigurations that have the same

equivalent test weight (ETW), GVWR, and GCWR. Calculate your work
factor and target value assuming a curb weight equal to two times ETW
minus GVWR.
    (ii) You may group together other subconfigurations if you use the
lowest target value calculated for any of the subconfigurations.
    (5) The standards specified in this section apply for testing at
both low-altitude conditions and high-altitude conditions. However,
manufacturers must submit an engineering evaluation indicating that
common calibration approaches are utilized at high altitude instead of
performing testing for certification, consistent with Sec.  86.1829.
Any deviation from low altitude emission control practices must be
included in the auxiliary emission control device (AECD) descriptions
submitted at certification. Any AECD specific to high altitude requires
engineering emission data for EPA evaluation to quantify any emission
impact and determine the validity of the AECD.
    (b) Production and in-use CO2 standards. Each vehicle
you produce that is subject to the standards of this section has an
``in-use'' CO2 standard that is calculated from your test
result and that applies for selective enforcement audits and in-use
testing. This in-use CO2 standard for each vehicle is equal
to the applicable deteriorated emission level multiplied by 1.10 and
rounded to the nearest whole g/mile.
    (c) N2O and CH4 standards. Except as allowed under this paragraph
(c), all vehicles subject to the standards of this section must comply
with an N2O standard of 0.05 g/mile and a CH4
standard of 0.05 g/mile when calculated according to the provisions of
paragraph (d)(4) of this section. You may specify CH4 and/or
N2O alternative standards using CO2 emission
credits instead of these otherwise applicable emission standards for
one or more test groups. To do this, calculate the CH4 and/
or N2O emission credits needed (negative credits) using the
equation in this paragraph (c) based on the FEL(s) you specify for your
vehicles during certification. You must adjust the calculated emissions
by the global warming potential (GWP): GWP equals 34 for CH4
from model year 2021 and later vehicles, 25 for CH4 from
earlier vehicles, and 298 for N2O. This means, for example,
that you must use 298 Mg of positive CO2 credits to offset 1
Mg of negative N2O credits. Note that Sec.  86.1818-12(f)
does not apply for vehicles subject to the standards of this section.
Calculate credits using the following equation, rounded to the nearest
whole number:

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

    (d) Compliance provisions. The following compliance provisions
apply instead of other provisions described in this subpart S:
    (1) The CO2 standards of this section apply with respect
to CO2 emissions, not with respect to carbon-related exhaust
emissions (CREE).
    (2) The following general credit provisions apply:
    (i) Credits you generate under this section may be used only to
offset credit deficits under this section. You may bank credits for use
in a future model year in which your average CO2 level
exceeds the standard. You may trade credits to another manufacturer
according to Sec.  86.1865-12(k)(8). Before you bank or trade credits,
you must apply any available credits to offset a deficit if the
deadline to offset that credit deficit has not yet passed.
    (ii) Vehicles subject to the standards of this section are included
in a single greenhouse gas averaging set separate from any averaging
set otherwise included in this subpart S.
    (iii) Banked CO2 credits keep their full value for five
model years after the year in which they were generated. Unused credits
may not be used for more than five model years after the model year in
which the credits are generated.
    (3) Special credit and incentive provisions related to air
conditioning in Sec. Sec.  86.1867 and 86.1868 do not apply for
vehicles subject to the standards of this section.
    (4) Measure emissions using the procedures of subpart B of this
part and 40 CFR part 1066. Determine separate emission results for the
Federal Test Procedure (FTP) described in 40 CFR 1066.801(c)(1) and the
Highway Fuel Economy Test (HFET) described in 40 CFR 1066.801(c)(3).
Calculate composite emission results from these two test cycles for
demonstrating compliance with the CO2, N2O, and
CH4 standards based on a weighted average of the FTP (55%)
and HFET (45%) emission results. Note that this differs from the way
the criteria pollutant standards apply.
    (5) Apply an additive deterioration factor of zero to measured
CO2 emissions unless good engineering judgment indicates
that emissions are likely to deteriorate in use. Use good engineering
judgment to develop separate deterioration factors for N2O
and CH4.
    (6) Credits are calculated using the useful life value (in miles)
in place of ``vehicle lifetime miles'' as specified in Sec.  86.1865.
Calculate a total credit or debit balance in a model year by adding
credits and debits from Sec.  86.1865-12(k)(4), subtracting any
CO2-equivalent debits for N2O or CH4
calculated according to paragraph (c) of this section, and adding any
of the following credits:
    (i) Off-cycle technology credits according to paragraph (d)(13) of
this section.
    (ii) Early credits from vehicles certified under paragraph (k)(2)
of this section.
    (iii) Advanced-technology credits according to paragraph (k)(7) of
this section.
    (7) [Reserved]
    (8) The provisions of Sec.  86.1818 do not apply.
    (9) Calculate your fleet-average emission rate consistent with good
engineering judgment and the provisions of Sec.  86.1865. The following
additional provisions apply:
    (i) Unless we approve a lower number, you must test at least ten
subconfigurations. If you produce more than 100 subconfigurations in a
given model year, you must test at least ten percent of your
subconfigurations. For purposes of this paragraph (d)(9)(i), count
carryover tests, but do not include analytically derived CO2
emission rates, data substitutions, or other untested allowances. We
may approve a lower number of tests for manufacturers that have limited
product offerings, or low sales volumes. Note that good engineering
judgment and other provisions of this part may require you to test more
subconfigurations than these minimum values.
    (ii) The provisions of paragraph (g) of this section specify how
you may use analytically derived CO2 emission rates.
    (iii) At least 90 percent of final production volume at the
configuration level must be represented by test data (real, data
substituted, or analytical).
    (iv) Perform fleet-average CO2 calculations as described
in Sec.  86.1865 and 40 CFR part 600, with the following exceptions:
    (A) Use CO2 emissions values for all test results,
intermediate calculations, and fleet average calculations instead of
the carbon-related exhaust emission (CREE) values specified in this
subpart S and 40 CFR part 600.
    (B) Perform intermediate CO2 calculations for
subconfigurations within each configuration using the subconfiguration
and configuration definitions in paragraph (d)(12) of this section.
    (C) Perform intermediate CO2 calculations for
configurations within

each test group and transmission type (instead of configurations within
each base level and base levels within each model type). Use the
configuration definition in paragraph (d)(12)(i) of this section.
    (D) Do not perform intermediate CO2 calculations for
each base level or for each model type. Base level and model type
CO2 calculations are not applicable to heavy-duty vehicles
subject to standards in this section.
    (E) Determine fleet average CO2 emissions for heavy-duty
vehicles subject to standards in this section as described in 40 CFR
600.510-12(j), except that the calculations must be performed on the
basis of test group and transmission type (instead of the model-type
basis specified in the light-duty vehicle regulations), and the
calculations for dual-fuel, multi-fuel, and flexible-fuel vehicles must
be consistent with the provisions of paragraph (d)(10)(i) of this
section.
    (10) For dual-fuel, multi-fuel, and flexible-fuel vehicles, perform
exhaust testing on each fuel type (for example, gasoline and E85).
    (i) For your fleet-average calculations in model year 2016 and
later, use either the conventional-fueled CO2 emission rate
or a weighted average of your emission results as specified in 40 CFR
600.510-12(k) for light-duty trucks. For your fleet-average
calculations before model year 2016, apply an equal weighting of
CO2 emission results from alternative and conventional
fuels.
    (ii) If you certify to an alternate standard for N2O or
CH4 emissions, you may not exceed the alternate standard
when tested on either fuel.
    (11) Test your vehicles with an equivalent test weight based on its
Adjusted Loaded Vehicle Weight (ALVW). Determine equivalent test weight
from the ALVW as specified in 40 CFR 1066.805; round ALVW values above
14,000 pounds to the nearest 500 pound increment.
    (12) The following definitions apply for the purposes of this
section:
    (i) Configuration means a subclassification within a test group
based on engine code, transmission type and gear ratios, final drive
ratio, and other parameters we designate. Engine code means the
combination of both ``engine code'' and ``basic engine'' as defined in
40 CFR 600.002.
    (ii) Subconfiguration means a unique combination within a vehicle
configuration (as defined in this paragraph (d)(12)) of equivalent test
weight, road-load horsepower, and any other operational characteristics
or parameters that we determine may significantly affect CO2
emissions within a vehicle configuration. Note that for vehicles
subject to standards of this section, equivalent test weight (ETW) is
based on the ALVW of the vehicle as outlined in paragraph (d)(11) of
this section.
    (13) This paragraph (d)(13) applies for CO2 reductions
resulting from technologies that were not in common use before 2010
that are not reflected in the specified test procedures. While you are
not required to prove that such technologies were not in common use
with heavy-duty vehicles before model year 2010, we will not approve
your request if we determine they do not qualify. These may be
described as off-cycle or innovative technologies. We may allow you to
generate emission credits consistent with the provisions of Sec.
86.1869-12(c) and (d). The 5-cycle methodology is not presumed to be
preferred over alternative methodologies described in Sec.  86.1869-
12(d).
    (14) You must submit pre-model year reports before you submit your
applications for certification for a given model year. Unless we
specify otherwise, include the information specified for pre-model year
reports in 49 CFR 535.8.
    (15) You must submit a final report within 90 days after the end of
the model year. Unless we specify otherwise, include applicable
information identified in Sec.  86.1865-12(l), 40 CFR 600.512, and 49
CFR 535.8(e). The final report must include at least the following
information:
    (i) Model year.
    (ii) Applicable fleet-average CO2 standard.
    (iii) Calculated fleet-average CO2 value and all the
values required to calculate the CO2 value.
    (iv) Number of credits or debits incurred and all values required
to calculate those values.
    (v) Resulting balance of credits or debits.
    (vi) N2O emissions.
    (vii) CH4 emissions.
    (viii) Total and percent leakage rates under paragraph (h) of this
section.
    (16) You may apply the provisions for delegated assembly as
described in 40 CFR 1037.621.
    (17) You may calculate emission rates for weight increments less
than the 500 pound increment specified for test weight. This does not
change the applicable test weights.
    (i) Use the ADC equation in paragraph (g) of this section to adjust
your emission rates for vehicles in increments of 50, 100, or 250
pounds instead of the 500 test-weight increments. Adjust emissions to
the midpoint of each increment. This is the equivalent emission weight.
For example, vehicles with a test weight basis of 11,751 to 12,250
pounds (which have an equivalent test weight of 12,000 pounds) could be
regrouped into 100 pound increments as follows:

------------------------------------------------------------------------
                                            Equivalent
            Test weight basis                emission       Equivalent
                                              weight        test weight
------------------------------------------------------------------------
11,751-11,850...........................          11,800          12,000
11,851-11,950...........................          11,900          12,000
11,951-12,050...........................          12,000          12,000
12,051-12,150...........................          12,100          12,000
12,151-12,250...........................          12,200          12,000
------------------------------------------------------------------------

    (ii) You must use the same increment for all equivalent test weight
classes across your whole product line in a given model year. You must
also specify curb weight for calculating the work factor in a way that
is consistent with your approach for determining test weight for
calculating ADCs under this paragraph (d)(17).
    (e) Useful life. The exhaust emission standards of this section
apply for the full useful life, as described in Sec.  86.1805.
    (f) [Reserved]
    (g) Analytically derived CO2 emission rates (ADCs). This
paragraph (g) describes an allowance to use estimated (i.e.,
analytically derived) CO2 emission rates based on baseline
test data instead of measured emission rates for calculating fleet-
average emissions. Note that these ADCs are similar to ADFEs used for
light-duty vehicles. Note also that F terms used in this paragraph (g)
represent coefficients from the following road load equation:

Force = F0 + F1 [middot] (velocity) +
F2 [middot] (velocity)\2\

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

ADC = CO2base + 2.18 [middot] [Delta]F0 + 37.4 [middot]
[Delta]F1 + 2257 [middot] [Delta]F2 + 189 [middot] [Delta]AR +
0.0222[middot] [Delta]ETW

Where:

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

    (2) The purpose of this section is to accurately estimate
CO2 emission rates.
    (i) You must apply the provisions of this section consistent with
good engineering judgment. For example, do not use the equation in
paragraph (g)(1) of this section where good engineering judgment
indicates that it will not accurately estimate emissions. You may ask
us to approve alternate equations that allow you to estimate emissions
more accurately.
    (ii) The analytically derived CO2 equation in paragraph
(g)(1) of this section may be periodically updated through publication
of an EPA guidance document to more accurately characterize
CO2 emission levels for example, changes may be appropriate
based on new test data, future technology changes, or to changes in
future CO2 emission levels. Any EPA guidance document will
determine the model year that the updated equation takes effect. We
will issue guidance no later than eight months before the effective
model year. For example, model year 2014 may start January 2, 2013, so
guidance for model year 2014 would be issued by May 1, 2012.
    (3) You may select baseline test data without our advance approval
if they meet all the following criteria:
    (i) Vehicles considered for the baseline test must comply with all
applicable emission standards in the model year associated with the
ADC.
    (ii) You must include in the pool of tests considered for baseline
selection all official tests of the same or equivalent basic engine,
transmission class, engine code, transmission code, engine horsepower,
dynamometer drive wheels, and compression ratio as the ADC
subconfiguration. Do not include tests in which emissions exceed any
applicable standard.
    (iii) Where necessary to minimize the CO2 adjustment,
you may supplement the pool with tests associated with worst-case
engine or transmission codes and carryover or carry-across test groups.
If you do, all the data that qualify for inclusion using the elected
worst-case substitution (or carryover or carry-across) must be included
in the pool as supplemental data (i.e., individual test vehicles may
not be selected for inclusion). You must also include the supplemental
data in all subsequent pools, where applicable.
    (iv) Tests previously used during the subject model year as
baseline tests in ten other ADC subconfigurations must be eliminated
from the pool.
    (v) Select the tested subconfiguration with the smallest absolute
difference between the ADC and the test CO2 emission rate
for combined emissions. Use this as the baseline test for the target
ADC subconfiguration.
    (4) You may ask us to allow you to use baseline test data not fully
meeting the provisions of paragraph (g)(3) of this section.
    (5) Calculate the ADC rounded to the nearest whole g/mile. Except
with our advance approval, the downward adjustment of ADC from the
baseline is limited to ADC values 20 percent below the baseline
emission rate. The upward adjustment is not limited.
    (6) You may not submit an ADC if an actual test has been run on the
target subconfiguration during the certification process or on a
development vehicle that is eligible to be declared as an emission-data
vehicle.
    (7) No more than 40 percent of the subconfigurations tested in your
final CO2 submission may be represented by ADCs.
    (8) Keep the following records for at least five years, and show
them to us if we ask to see them:
    (i) The pool of tests.
    (ii) The vehicle description and tests chosen as the baseline and
the basis for the selection.
    (iii) The target ADC subconfiguration.
    (iv) The calculated emission rates.
    (9) We may perform or order a confirmatory test of any
subconfiguration covered by an ADC.
    (10) Where we determine that you did not fully comply with the
provisions of this paragraph (g), we may require that you comply based
on actual test data and that you recalculate your fleet-average
emission rate.
    (h) Air conditioning leakage. Loss of refrigerant from your air
conditioning systems may not exceed a total leakage rate of 11.0 grams
per year or a percent leakage rate of 1.50 percent per year, whichever
is greater. This applies for all refrigerants. Calculate the total
leakage rate in g/year as specified in Sec.  86.1867-12(a). Calculate
the percent leakage rate as: [total leakage rate (g/yr)] / [total
refrigerant capacity (g)] x 100. Round your percent leakage rate to the
nearest one-hundredth of a percent. For purpose of this requirement,
``refrigerant capacity'' is the total mass of refrigerant recommended
by the vehicle manufacturer as representing a full charge. Where full
charge is specified as a pressure, use good engineering judgment to
convert the pressure and system volume to a mass.
    (i) [Reserved]
    (j) Optional GHG certification under this subpart. You may certify
certain complete or cab-complete vehicles to the GHG standards of this
section. All vehicles optionally certified under this paragraph (j) are
deemed to be subject to the GHG standards of this section. Note that
for vehicles above 14,000 pounds GVWR and at or below 26,000 pounds
GVWR, GHG certification under this paragraph (j) does not affect how
you may or may not certify with respect to criteria pollutants.
    (1) For GHG compliance, you may certify any complete or cab-
complete spark-ignition vehicles above 14,000 pounds GVWR and at or
below 26,000 pounds GVWR to the GHG standards of this section even
though this section otherwise specifies that you may certify vehicles
to the GHG standards of this section only if they are chassis-certified
for criteria pollutants.
    (2) You may apply the provisions of this section to cab-complete
vehicles based on a complete sister vehicle. In unusual circumstances,
you may ask us to apply these provisions to Class 2b or Class 3
incomplete vehicles that do not meet the definition of cab-complete.
    (i) Except as specified in paragraph (j)(3) of this section, for
purposes of this section, a complete sister vehicle is a complete
vehicle of the same vehicle configuration as the cab-complete vehicle.
You may not apply the provisions of this paragraph (j) to any vehicle
configuration that has a four-wheel rear axle if the complete sister
vehicle has a two-wheel rear axle.
    (ii) Calculate the target value for fleet-average CO2
emissions under paragraph (a) or (k)(4) of this section based on the
work factor value that applies for the complete sister vehicle.
    (iii) Test these cab-complete vehicles using the same equivalent
test weight

and other dynamometer settings that apply for the complete vehicle from
which you used the work factor value (the complete sister vehicle). For
GHG certification, you may submit the test data from that complete
sister vehicle instead of performing the test on the cab-complete
vehicle.
    (iv) You are not required to produce the complete sister vehicle
for sale to use the provisions of this paragraph (j)(2). This means the
complete sister vehicle may be a carryover vehicle from a prior model
year or a vehicle created solely for the purpose of testing.
    (3) For GHG purposes, if a cab-complete vehicle is not of the same
vehicle configuration as a complete sister vehicle due only to certain
factors unrelated to coastdown performance, you may use the road-load
coefficients from the complete sister vehicle for certification testing
of the cab-complete vehicle, but you may not use emission data from the
complete sister vehicle for certifying the cab-complete vehicle.
    (k) Interim provisions. The following provisions apply instead of
other provisions in this subpart:
    (1) Incentives for early introduction. Manufacturers may
voluntarily certify in model year 2013 (or earlier model years for
electric vehicles) to the greenhouse gas standards that apply starting
in model year 2014 as specified in 40 CFR 1037.150(a).
    (2) Early credits. To generate early credits under this paragraph
(k)(2) for any vehicles other than electric vehicles, you must certify
your entire U.S.-directed fleet to these standards. If you calculate a
separate fleet average for advanced-technology vehicles under paragraph
(k)(7) of this section, you must certify your entire U.S.-directed
production volume of both advanced and conventional vehicles within the
fleet. If some test groups are certified after the start of the model
year, you may generate credits only for production that occurs after
all test groups are certified. For example, if you produce three test
groups in an averaging set and you receive your certificates for those
test groups on January 4, 2013, March 15, 2013, and April 24, 2013, you
may not generate credits for model year 2013 for vehicles from any of
the test groups produced before April 24, 2013. Calculate credits
relative to the standard that would apply in model year 2014 using the
applicable equations in this subpart and your model year 2013 U.S.-
directed production volumes. These credits may be used to show
compliance with the standards of this subpart for 2014 and later model
years. We recommend that you notify us of your intent to use this
provision before submitting your applications.
    (3) Compliance date. Compliance with the standards of this section
was optional before January 1, 2014 as specified in 40 CFR 1037.150(g).
    (4) Phase-in provisions. Each manufacturer must choose one of the
options specified in paragraphs (k)(4)(i) and (ii) of this section for
phasing in the Phase 1 standards. Manufacturers must follow the
schedule described in paragraph (k)(4)(iii) of this section for phasing
in the Phase 2 standards.
    (i) Phase 1--Option 1. You may implement the Phase 1 standards by
applying CO2 target values as specified in the following
table for model year 2014 through 2020 vehicles:

                      Table 1 of Sec.   86.1819-14
------------------------------------------------------------------------
    Model year and engine cycle        Alternate CO2 target  (g/mile)
------------------------------------------------------------------------
2014 Spark-Ignition...............  0.0482 x (WF) + 371
2015 Spark-Ignition...............  0.0479 x (WF) + 369
2016 Spark-Ignition...............  0.0469 x (WF) + 362
2017 Spark-Ignition...............  0.0460 x (WF) + 354
2018-2020 Spark-Ignition..........  0.0440 x (WF) + 339
2014 Compression-Ignition.........  0.0478 x (WF) + 368
2015 Compression-Ignition.........  0.0474 x (WF) + 366
2016 Compression-Ignition.........  0.0460 x (WF) + 354
2017 Compression-Ignition.........  0.0445 x (WF) + 343
2018-2020 Compression-Ignition....  0.0416 x (WF) + 320
------------------------------------------------------------------------

    (ii) Phase 1--Option 2. You may implement the Phase 1 standards by
applying CO2 target values specified in the following table
for model year 2014 through 2020 vehicles:

                      Table 2 of Sec.   86.1819-14
------------------------------------------------------------------------
    Model year and engine cycle        Alternate CO2 target  (g/mile)
------------------------------------------------------------------------
2014 Spark-Ignition...............  0.0482 x (WF) + 371
2015 Spark-Ignition...............  0.0479 x (WF) + 369
2016-2018 Spark-Ignition..........  0.0456 x (WF) + 352
2019-2020 Spark-Ignition..........  0.0440 x (WF) + 339
2014 Compression-Ignition.........  0.0478 x (WF) + 368
2015 Compression-Ignition.........  0.0474 x (WF) + 366
2016-2018 Compression-Ignition....  0.0440 x (WF) + 339
2019-2020 Compression-Ignition....  0.0416 x (WF) + 320
------------------------------------------------------------------------

    (iii) Phase 2. Apply Phase 2 CO2 target values as
specified in the following table for model year 2021 through 2026
vehicles:

                      Table 3 of Sec.   86.1819-14
------------------------------------------------------------------------
    Model year and engine cycle        Alternate CO2 target  (g/mile)
------------------------------------------------------------------------
2021 Spark-Ignition...............  0.0429 x (WF) + 331
2022 Spark-Ignition...............  0.0418 x (WF) + 322
2023 Spark-Ignition...............  0.0408 x (WF) + 314
2024 Spark-Ignition...............  0.0398 x (WF) + 306
2025 Spark-Ignition...............  0.0388 x (WF) + 299
2026 Spark-Ignition...............  0.0378 x (WF) + 291
2021 Compression-Ignition.........  0.0406 x (WF) + 312
2022 Compression-Ignition.........  0.0395 x (WF) + 304
2023 Compression-Ignition.........  0.0386 x (WF) + 297
2024 Compression-Ignition.........  0.0376 x (WF) + 289
2025 Compression-Ignition.........  0.0367 x (WF) + 282
2026 Compression-Ignition.........  0.0357 x (WF) + 275
------------------------------------------------------------------------

    (5) Provisions for small manufacturers. Standards apply on a
delayed schedule for manufacturers meeting the small business criteria
specified in 13 CFR 121.201 (NAICS code 336111); the employee and
revenue limits apply to the total number employees and total revenue
together for affiliated companies. Qualifying small manufacturers are
not subject to the greenhouse gas standards of this section for
vehicles with a date of manufacture before January 1, 2022, as
specified in 40 CFR 1037.150(c). In addition, small manufacturers
producing vehicles that run on any fuel other than gasoline, E85, or
diesel fuel may delay complying with every later standard under this
part by one model year.
    (6) Alternate N2O standards. Manufacturers may show compliance with
the N2O standards using an engineering analysis. This
allowance also applies for model year 2015 and later test groups
carried over from model 2014 consistent with the provisions of Sec.
86.1839. You may not certify to an N2O FEL different than
the standard without measuring N2O emissions.
    (7) Advanced-technology credits. Provisions for advanced-technology
credits apply as described in 40 CFR 1037.615. If you generate credits
from Phase 1 vehicles certified with advanced technology, you may
multiply these credits by 1.50. If you generate credits from Phase 2
vehicles certified with advanced technology, you may multiply these
credits by 3.5 for plug-in hybrid electric vehicles, 4.5 for electric
vehicles, and 5.5 for fuel cell vehicles. Advanced-technology credits
from Phase 1 vehicles may be used to show compliance with any standards
of this part or 40 CFR part 1036 or part 1037, subject to the
restrictions in 40 CFR 1037.740. Similarly, you may use up to 60,000 Mg
per year of advanced-technology credits generated under 40 CFR 1036.615
or 1037.615 (from Phase 1 vehicles) to demonstrate compliance with the
CO2 standards in this section. Include vehicles generating
credits in separate fleet-average calculations (and exclude them from
your conventional fleet-average calculation). You must first apply
these advanced-technology vehicle credits to any deficits for other
vehicles in the averaging set before applying them to other averaging
sets.
    (8) Loose engine sales. This paragraph (k)(8) applies for model
year 2023 and earlier spark-ignition engines with identical hardware
compared with engines used in vehicles certified to the standards of
this section, where you sell such engines as loose engines or as
engines installed in incomplete vehicles that are not cab-complete
vehicles. You may include such engines in a test group certified to the
standards of this section, subject to the following provisions:
    (i) Engines certified under this paragraph (k)(8) are deemed to be
certified to the standards of 40 CFR 1036.108 as specified in 40 CFR
1036.150(j).
    (ii) For 2020 and earlier model years, the maximum allowable U.S.-
directed production volume of engines you sell under this paragraph
(k)(8) in any given model year is ten percent of the total U.S-directed
production volume of engines of that design that you produce for heavy-
duty applications for that model year, including engines you produce
for complete vehicles, cab-complete vehicles, and other incomplete
vehicles. The total number of engines you may certify under this
paragraph (k)(8), of all engine designs, may not exceed 15,000 in any
model year. Engines produced in excess of either of these limits are
not covered by your certificate. For example, if you produce 80,000
complete model year 2017 Class 2b pickup trucks with a certain engine
and 10,000 incomplete model year 2017 Class 3 vehicles with that same
engine, and you do not apply the provisions of this paragraph (k)(8) to
any other engine designs, you may produce up to 10,000 engines of that
design for sale as loose engines under this paragraph (k)(8). If you
produced 11,000 engines of that design for sale as loose engines, the
last 1,000 of them that you produced in that model year 2017 would be
considered uncertified.
    (iii) For model years 2021 through 2023, the U.S.-directed
production volume of engines you sell under this paragraph (k)(8) in
any given model year may not exceed 10,000 units.
    (iv) This paragraph (k)(8) does not apply for engines certified to
the standards of 40 CFR 1036.108.
    (v) Label the engines as specified in 40 CFR 1036.135 including the
following compliance statement: ``THIS ENGINE WAS CERTIFIED TO THE
ALTERNATE GREENHOUSE GAS EMISSION STANDARDS OF 40 CFR 1036.150(j).''
List the test group name instead of an engine family name.
    (vi) Vehicles using engines certified under this paragraph (k)(8)
are subject to the emission standards of 40 CFR 1037.105.
    (vii) For certification purposes, your engines are deemed to have a
CO2 target value and test result equal to the CO2
target value and test result for the complete vehicle in the applicable
test group with the highest equivalent test weight, except as specified
in paragraph (k)(8)(vii)(B) of this section. Use these values to
calculate your target value, fleet-average emission rate, and in-use
emission standard. Where there are multiple complete vehicles with the
same highest equivalent test weight, select the CO2 target
value and test result as follows:
    (A) If one or more of the CO2 test results exceed the
applicable target value, use the CO2 target value and test
result of the vehicle that exceeds its target value by the greatest
amount.

    (B) If none of the CO2 test results exceed the
applicable target value, select the highest target value and set the
test result equal to it. This means that you may not generate emission
credits from vehicles certified under this paragraph (k)(8).
    (viii) Production and in-use CO2 standards apply as
described in paragraph (b) of this section.
    (ix) N2O and CH4 standards apply as described
in paragraph (c) of this section.
    (x) State in your applications for certification that your test
group and engine family will include engines certified under this
paragraph (k)(8). This applies for your greenhouse gas vehicle test
group and your criteria pollutant engine family. List in each
application the name of the corresponding test group/engine family.
    (9) Credit adjustment for useful life. For credits that you
calculate based on a useful life of 120,000 miles, multiply any banked
credits that you carry forward for use in model year 2021 and later by
1.25.
    (10) CO2 rounding. For model year 2014 and earlier vehicles, you
may round measured and calculated CO2 emission levels to the
nearest 0.1 g/mile, instead of the nearest whole g/mile as specified in
paragraphs (a), (b), and (g) of this section.

0
75. Section 86.1820-01 is amended by revising paragraph (b)(7)(i)(A) to
read as follows:

Sec.  86.1820-01   Durability group determination.

* * * * *
    (b) * * *
    (7) * * *
    (i) * * *
    (A) Vehicles are grouped based upon the value of the grouping
statistic determined using the following equation:

GS = [(Cat Vol)/(Disp)] x Loading Rate

Where:

GS = Grouping Statistic used to evaluate the range of precious metal
loading rates and relative sizing of the catalysts compared to the
engine displacement that are allowable within a durability group.
The grouping statistic shall be rounded to a tenth of a gram/liter.
Cat Vol = Total volume of the catalyst(s) in liters.
Disp = Displacement of the engine in liters.
Loading rate = The mass of total precious metal(s) in the catalyst
(or the total mass of all precious metal(s) of all the catalysts if
the vehicle is equipped with multiple catalysts) in grams divided by
the total volume of the catalyst(s) in liters.
* * * * *

0
76. Section 86.1823-08 is amended by revising the definition of ``R''
in paragraph (d)(3) to read as follows:

Sec.  86.1823-08  Durability demonstration procedures for exhaust
emissions.

* * * * *
    (d) * * *
    (3) * * *
    R = Catalyst thermal reactivity coefficient. You may use a default
value of 17,500 for the SBC.
* * * * *

0
77. Section 86.1838-01 is amended by revising paragraph (b)(1)(i)(B),
adding paragraph (b)(1)(i)(C), and revising paragraph (d)(3)(iii)
introductory text to read as follows:

Sec.  86.1838-01  Small-volume manufacturer certification procedures.

* * * * *
    (b) * * *
    (1) * * *
    (i) * * *
    (B) No small-volume sales threshold applies for the heavy-duty
greenhouse gas standards; alternative small-volume criteria apply as
described in Sec.  86.1819-14(k)(5).
    (C) 15,000 units for all other requirements. See Sec.  86.1845 for
separate provisions that apply for in-use testing.
* * * * *
    (d) * * *
    (3) * * *
    (iii) Notwithstanding the requirements of paragraph (d)(3)(ii) of
this section, an applicant may satisfy the requirements of this
paragraph (d)(3) if the requirements of this paragraph (d)(3) are
completed by an auditor who is an employee of the applicant, provided
that such employee:
* * * * *

0
78. Section 86.1844-01 is amended by revising paragraph (d)(4)(ii) and
adding paragraph (d)(7)(iv) to read as follows:

Sec.  86.1844-01  Information requirements: Application for
certification and submittal of information upon request.

* * * * *
    (d) * * *
    (4) * * *
    (ii) The equivalency factor required to be calculated in Sec.
86.1823-08(e)(1)(iii)(B), when applicable.
* * * * *
    (7) * * *
    (iv) For heavy-duty vehicles subject to air conditioning standards
under Sec.  86.1819, include the refrigerant leakage rates (leak
scores), describe the type of refrigerant, and identify the refrigerant
capacity of the air conditioning systems. If another company will
install the air conditioning system, also identify the corporate name
of the final installer.
* * * * *

0
79. Section 86.1845-04 is amended by revising paragraph (f)(1) to read
as follows:

Sec.  86.1845-04   Manufacturer in-use verification testing
requirements.

* * * * *
    (f)(1) A manufacturer must conduct in-use testing on a test group
by determining NMOG exhaust emissions using the same methodology used
for certification, as described in Sec.  86.1810-01(o) or 40 CFR
1066.635.
* * * * *

0
80. Section 86.1846-01 is amended by revising paragraph (b)(1)(i) to
read as follows:

Sec.  86.1846-01  Manufacturer in-use confirmatory testing
requirements.

* * * * *
    (b) * * *
    (1) * * *
    (i) Additional testing is not required under this paragraph (b)(1)
based on evaporative/refueling testing or based on low-mileage
Supplemental FTP testing conducted under Sec.  86.1845-04(b)(5)(i).
Testing conducted at high altitude under the requirements of Sec.
86.1845-04(c) will be included in determining if a test group meets the
criteria triggering the testing required under this section.
* * * * *

0
81. Section 86.1848-10 is amended by revising paragraph (c)(9) to read
as follows:

Sec.  86.1848-10  Compliance with emission standards for the purpose of
certification.

* * * * *
    (c) * * *
    (9) For 2012 and later model year LDVs, LDTs, and MDPVs, all
certificates of conformity issued are conditional upon compliance with
all provisions of Sec. Sec.  86.1818 and 86.1865 both during and after
model year production. Similarly, for 2014 and later model year HDV,
and other HDV subject to standards under Sec.  86.1819, all
certificates of conformity issued are conditional upon compliance with
all provisions of Sec. Sec.  86.1819 and 86.1865 both during and after
model year production. The manufacturer bears the burden of
establishing to the satisfaction of the Administrator that the terms
and conditions upon which the certificate(s) was (were) issued were
satisfied. For recall and warranty purposes, vehicles not covered by a
certificate of conformity will continue to be held to the standards
stated or referenced in the certificate that

otherwise would have applied to the vehicles.
    (i) Failure to meet the fleet average CO2 requirements
will be considered a failure to satisfy the terms and conditions upon
which the certificate(s) was (were) issued and the vehicles sold in
violation of the fleet average CO2 standard will not be
covered by the certificate(s). The vehicles sold in violation will be
determined according to Sec.  86.1865-12(k)(8).
    (ii) Failure to comply fully with the prohibition against selling
credits that are not generated or that are not available, as specified
in Sec.  86.1865-12, will be considered a failure to satisfy the terms
and conditions upon which the certificate(s) was (were) issued and the
vehicles sold in violation of this prohibition will not be covered by
the certificate(s).
    (iii) For manufacturers using the conditional exemption under Sec.
86.1801-12(k), failure to fully comply with the fleet production
thresholds that determine eligibility for the exemption will be
considered a failure to satisfy the terms and conditions upon which the
certificate(s) was (were) issued and the vehicles sold in violation of
the stated sales and/or production thresholds will not be covered by
the certificate(s).
    (iv) For manufacturers that are determined to be operationally
independent under Sec.  86.1838-01(d), failure to report a material
change in their status within 60 days as required by Sec.  86.1838-
01(d)(2) will be considered a failure to satisfy the terms and
conditions upon which the certificate(s) was (were) issued and the
vehicles sold in violation of the operationally independent criteria
will not be covered by the certificate(s).
    (v) For manufacturers subject to an alternative fleet average
greenhouse gas emission standard approved under Sec.  86.1818-12(g),
failure to comply with the annual sales thresholds that are required to
maintain use of those standards, including the thresholds required for
new entrants into the U.S. market, will be considered a failure to
satisfy the terms and conditions upon which the certificate(s) was
(were) issued and the vehicles sold in violation of stated sales and/or
production thresholds will not be covered by the certificate(s).
* * * * *

0
82. Section 86.1853-01 is revised to read as follows:

Sec.  86.1853-01  Certification hearings.

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

0
83. Section 86.1862-04 is amended by revising paragraph (d) to read as
follows:

Sec.  86.1862-04  Maintenance of records and submittal of information
relevant to compliance with fleet-average standards.

* * * * *
    (d) Notice of opportunity for hearing. Any voiding of the
certificate under paragraph (a)(6) of this section will be made only
after EPA has offered the manufacturer concerned an opportunity for a
hearing conducted in accordance with 40 CFR part 1068, subpart G and,
if a manufacturer requests such a hearing, will be made only after an
initial decision by the Presiding Officer.

Sec.  86.1863-07   [Amended]

0
84. Section 86.1863-07 is amended by removing and reserving paragraph
(h).

0
85. Section 86.1865-12 is revised to read as follows:

Sec.  86.1865-12   How to comply with the fleet average CO2
standards.

    (a) Applicability. (1) Unless otherwise exempted under the
provisions of paragraph (d) of this section, CO2 fleet
average exhaust emission standards of this subpart apply to:
    (i) 2012 and later model year passenger automobiles and light
trucks.
    (ii) Heavy-duty vehicles subject to standards under Sec.  86.1819.
    (iii) Vehicles imported by ICIs as defined in 40 CFR 85.1502.
    (2) The terms ``passenger automobile'' and ``light truck'' as used
in this section have the meanings given in Sec.  86.1818-12.
    (b) Useful life requirements. Full useful life requirements for
CO2 standards are defined in Sec. Sec.  86.1818 and 86.1819.
There is not an intermediate useful life standard for CO2
emissions.
    (c) Altitude. Greenhouse gas emission standards apply for testing
at both low-altitude conditions and at high-altitude conditions, as
described in Sec. Sec.  86.1818 and 86.1819.
    (d) Small volume manufacturer certification procedures. (1)
Passenger automobiles and light trucks. Certification procedures for
small volume manufacturers are provided in Sec.  86.1838. Small
businesses meeting certain criteria may be exempted from the greenhouse
gas emission standards in Sec.  86.1818 according to the provisions of
Sec.  86.1801-12(j) or (k).
    (2) Heavy-duty vehicles. HDV manufacturers that qualify as small
businesses are not subject to the Phase 1 greenhouse gas standards of
this subpart as specified in Sec.  86.1819-14(k)(5).
    (e) CO2 fleet average exhaust emission standards. The fleet average
standards referred to in this section are the corporate fleet average
CO2 standards for passenger automobiles and light trucks set
forth in Sec.  86.1818-12(c) and (e), and for HDV in Sec.  86.1819.
Each manufacturer must comply with the applicable CO2 fleet
average standard on a production-weighted average basis, for each
separate averaging set, at the end of each model year, using the
procedure described in paragraph (j) of this section. The fleet average
CO2 standards applicable in a given model year are
calculated separately for passenger automobiles and light trucks for
each manufacturer and each model year according to the provisions in
Sec.  86.1818. Calculate the HDV fleet average CO2 standard
in a given model year as described in Sec.  86.1819-14(a).
    (f) In-use CO2 standards. In-use CO2 exhaust emission
standards are provided in Sec.  86.1818-12(d) for passenger automobiles
and light trucks and in Sec.  86.1819-14(b) for HDV.
    (g) Durability procedures and method of determining deterioration
factors (DFs). Deterioration factors for CO2 exhaust
emission standards are provided in Sec.  86.1823-08(m) for passenger
automobiles and light trucks and in Sec.  86.1819-14(d)(5) for HDV.
    (h) Vehicle test procedures. (1) The test procedures for
demonstrating compliance with CO2 exhaust emission standards
are described at Sec.  86.101 and 40 CFR part 600, subpart B.
    (2) Testing to determine compliance with CO2 exhaust
emission standards must be on a loaded vehicle weight (LVW) basis for
passenger automobiles and light trucks (including MDPV), and on an
adjusted loaded vehicle weight (ALVW) basis for non-MDPV heavy-duty
vehicles.
    (3) Testing for the purpose of providing certification data is
required only at low-altitude conditions. If hardware and software
emission control strategies used during low-altitude condition testing
are not used similarly across all altitudes for in-use operation, the
manufacturer must include a statement in the application for
certification, in accordance with Sec.  86.1844-01(d)(11), stating what
the different strategies are and why they are used.
    (i) Calculating fleet average carbon-related exhaust emissions for
passenger automobiles and light trucks. (1) Manufacturers must compute
separate production-weighted fleet average carbon-related exhaust
emissions at the end of the model year for passenger automobiles and
light trucks, using actual production, where production means vehicles
produced and delivered for sale, and certifying model types to

standards as defined in Sec.  86.1818-12. The model type carbon-related
exhaust emission results determined according to 40 CFR part 600,
subpart F (in units of grams per mile rounded to the nearest whole
number) become the certification standard for each model type.
    (2) Manufacturers must separately calculate production-weighted
fleet average carbon-related exhaust emissions levels for the following
averaging sets according to the provisions of 40 CFR part 600, subpart
F:
    (i) Passenger automobiles subject to the fleet average
CO2 standards specified in Sec.  86.1818-12(c)(2);
    (ii) Light trucks subject to the fleet average CO2
standards specified in Sec.  86.1818-12(c)(3);
    (iii) Passenger automobiles subject to the Temporary Leadtime
Allowance Alternative Standards specified in Sec.  86.1818-12(e), if
applicable; and
    (iv) Light trucks subject to the Temporary Leadtime Allowance
Alternative Standards specified in Sec.  86.1818-12(e), if applicable.
    (j) Certification compliance and enforcement requirements for CO 2
exhaust emission standards.
    (1) Compliance and enforcement requirements are provided in this
section and Sec.  86.1848-10(c)(9).
    (2) The certificate issued for each test group requires all model
types within that test group to meet the in-use emission standards to
which each model type is certified. The in-use standards for passenger
automobiles and light duty trucks (including MDPV) are described in
Sec.  86.1818-12(d). The in-use standards for non-MDPV heavy-duty
vehicles are described in Sec.  86.1819-14(b).
    (3) Each manufacturer must comply with the applicable
CO2 fleet average standard on a production-weighted average
basis, at the end of each model year. Use the procedure described in
paragraph (i) of this section for passenger automobiles and light
trucks (including MDPV). Use the procedure described in Sec.  86.1819-
14(d)(9)(iv) for non-MDPV heavy-duty vehicles.
    (4) Each manufacturer must comply on an annual basis with the fleet
average standards as follows:
    (i) Manufacturers must report in their annual reports to the Agency
that they met the relevant corporate average standard by showing that
the applicable production-weighted average CO2 emission
levels are at or below the applicable fleet average standards; or
    (ii) If the production-weighted average is above the applicable
fleet average standard, manufacturers must obtain and apply sufficient
CO2 credits as authorized under paragraph (k)(8) of this
section. A manufacturer must show that they have offset any exceedance
of the corporate average standard via the use of credits. Manufacturers
must also include their credit balances or deficits in their annual
report to the Agency.
    (iii) If a manufacturer fails to meet the corporate average
CO2 standard for four consecutive years, the vehicles
causing the corporate average exceedance will be considered not covered
by the certificate of conformity (see paragraph (k)(8) of this
section). A manufacturer will be subject to penalties on an individual-
vehicle basis for sale of vehicles not covered by a certificate.
    (iv) EPA will review each manufacturer's production to designate
the vehicles that caused the exceedance of the corporate average
standard. EPA will designate as nonconforming those vehicles in test
groups with the highest certification emission values first, continuing
until reaching a number of vehicles equal to the calculated number of
noncomplying vehicles as determined in paragraph (k)(8) of this
section. In a group where only a portion of vehicles would be deemed
nonconforming, EPA will determine the actual nonconforming vehicles by
counting backwards from the last vehicle produced in that test group.
Manufacturers will be liable for penalties for each vehicle sold that
is not covered by a certificate.
    (k) Requirements for the CO2 averaging, banking and trading (ABT)
program. (1) A manufacturer whose CO2 fleet average
emissions exceed the applicable standard must complete the calculation
in paragraph (k)(4) of this section to determine the size of its
CO2 deficit. A manufacturer whose CO2 fleet
average emissions are less than the applicable standard may complete
the calculation in paragraph (k)(4) of this section to generate
CO2 credits. In either case, the number of credits or debits
must be rounded to the nearest whole number.
    (2) There are no property rights associated with CO2
credits generated under this subpart. Credits are a limited
authorization to emit the designated amount of emissions. Nothing in
this part or any other provision of law should be construed to limit
EPA's authority to terminate or limit this authorization through a
rulemaking.
    (3) Each manufacturer must comply with the reporting and
recordkeeping requirements of paragraph (l) of this section for
CO2 credits, including early credits. The averaging, banking
and trading program is enforceable through the certificate of
conformity that allows the manufacturer to introduce any regulated
vehicles into U.S. commerce.
    (4) Credits are earned on the last day of the model year.
Manufacturers must calculate, for a given model year and separately for
passenger automobiles, light trucks, and heavy-duty vehicles, the
number of credits or debits it has generated according to the following
equation rounded to the nearest megagram:

CO2 Credits or Debits (Mg) = [(CO2 Standard - Manufacturer's
Production-Weighted Fleet Average CO2 Emissions) x (Total Number of
Vehicles Produced) x (Mileage)] / 1,000,000

Where:

CO2 Standard = the applicable standard for the model year as
determined in Sec.  86.1818 or Sec.  86.1819;
Manufacturer's Production-Weighted Fleet Average CO2 Emissions =
average calculated according to paragraph (i) of this section;
Total Number of Vehicles Produced = the number of vehicles
domestically produced plus those imported as defined in Sec.
600.511-08 of this chapter; and
Mileage = useful life value (in miles) for HDV, and vehicle lifetime
miles of 195,264 for passenger automobiles and 225,865 for light
trucks.

    (5) Determine total HDV debits and credits for a model year as
described in Sec.  86.1819-14(d)(6). Determine total passenger car and
light truck debits and credits for a model year as described in this
paragraph (k)(5). Total credits or debits generated in a model year,
maintained and reported separately for passenger automobiles and light
trucks, shall be the sum of the credits or debits calculated in
paragraph (k)(4) of this section and any of the following credits, if
applicable, minus any CO2-equivalent debits for
N2O and/or CH4 calculated according to the
provisions of Sec.  86.1818-12(f)(4):
    (i) Air conditioning leakage credits earned according to the
provisions of Sec.  86.1867-12(b).
    (ii) Air conditioning efficiency credits earned according to the
provisions of Sec.  86.1868-12(c).
    (iii) Off-cycle technology credits earned according to the
provisions of Sec.  86.1869-12(d).
    (iv) Full size pickup truck credits earned according to the
provisions of Sec.  86.1870-12(c).
    (v) CO2-equivalent debits for N2O and/or
CH4 accumulated according to the provisions of Sec.
86.1818-12(f)(4).
    (6) Unused CO2 credits generally retain their full value
through five model years after the model year in which they were
generated. Credits remaining at the end of the fifth model

year after the model year in which they were generated may not be used
to demonstrate compliance for later model years. The following
particular provisions apply for passenger cars and light trucks:
    (i) Unused CO2 credits from the 2009 model year shall
retain their full value through the 2014 model year. Credits from the
2009 model year that remain at the end of the 2014 model year may not
be used to demonstrate compliance for later model years.
    (ii) Unused CO2 credits from the 2010 through 2015 model
years shall retain their full value through the 2021 model year.
Credits remaining from these model years at the end of the 2021 model
year may not be used to demonstrate compliance for later model years.
    (7) Credits may be used as follows:
    (i) Credits generated and calculated according to the method in
paragraphs (k)(4) and (5) of this section may not be used to offset
deficits other than those deficits accrued within the respective
averaging set, except that credits may be transferred between the
passenger automobile and light truck fleets of a given manufacturer.
Credits may be banked and used in a future model year in which a
manufacturer's average CO2 level exceeds the applicable
standard. Credits may also be traded to another manufacturer according
to the provisions in paragraph (k)(8) of this section. Before trading
or carrying over credits to the next model year, a manufacturer must
apply available credits to offset any deficit, where the deadline to
offset that credit deficit has not yet passed. This paragraph (k)(7)(i)
applies for MDPV, but not for other HDV.
    (ii) The use of credits shall not change Selective Enforcement
Auditing or in-use testing failures from a failure to a non-failure.
The enforcement of the averaging standard occurs through the vehicle's
certificate of conformity as described in paragraph (k)(8) of this
section. A manufacturer's certificate of conformity is conditioned upon
compliance with the averaging provisions. The certificate will be void
ab initio if a manufacturer fails to meet the corporate average
standard and does not obtain appropriate credits to cover its
shortfalls in that model year or subsequent model years (see deficit
carry-forward provisions in paragraph (k)(8) of this section).
    (iii) The following provisions apply for passenger automobiles and
light trucks under the Temporary Leadtime Allowance Alternative
Standards:
    (A) Credits generated by vehicles subject to the fleet average
CO2 standards specified in Sec.  86.1818-12(c) may only be
used to offset a deficit generated by vehicles subject to the Temporary
Leadtime Allowance Alternative Standards specified in Sec.  86.1818-
12(e).
    (B) Credits generated by a passenger automobile or light truck
averaging set subject to the Temporary Leadtime Allowance Alternative
Standards specified in Sec.  86.1818-12(e)(4)(i) or (ii) may be used to
offset a deficit generated by an averaging set subject to the Temporary
Leadtime Allowance Alternative Standards through the 2015 model year,
except that manufacturers qualifying under the provisions of Sec.
86.1818-12(e)(3) may use such credits to offset a deficit generated by
an averaging set subject to the Temporary Leadtime Allowance
Alternative Standards through the 2016 model year.
    (C) Credits generated by an averaging set subject to the Temporary
Leadtime Allowance Alternative Standards specified in Sec.  86.1818-
12(e)(4)(i) or (ii) of this section may not be used to offset a deficit
generated by an averaging set subject to the fleet average
CO2 standards specified in Sec.  86.1818-12(c)(2) or (3) or
otherwise transferred to an averaging set subject to the fleet average
CO2 standards specified in Sec.  86.1818-12(c)(2) or (3).
    (D) Credits generated by vehicles subject to the Temporary Leadtime
Allowance Alternative Standards specified in Sec.  86.1818-12(e)(4)(i)
or (ii) may be banked for use in a future model year (to offset a
deficit generated by an averaging set subject to the Temporary Leadtime
Allowance Alternative Standards). All such credits may not be used to
demonstrate compliance for model year 2016 and later vehicles, except
that manufacturers qualifying under the provisions of Sec.  86.1818-
12(e)(3) may use such credits to offset a deficit generated by an
averaging set subject to the Temporary Leadtime Allowance Alternative
Standards through the 2016 model year.
    (E) A manufacturer with any vehicles subject to the Temporary
Leadtime Allowance Alternative Standards specified in Sec.  86.1818-
12(e)(4)(i) or (ii) of this section in a model year in which that
manufacturer also generates credits with vehicles subject to the fleet
average CO2 standards specified in Sec.  86.1818-12(c) may
not trade or bank credits earned against the fleet average standards in
Sec.  86.1818-12(c) for use in a future model year.
    (iv) Credits generated in the 2017 through 2020 model years under
the provisions of Sec.  86.1818-12(e)(3)(ii) may not be traded or
otherwise provided to another manufacturer.
    (v) Credits generated under any alternative fleet average standards
approved under Sec.  86.1818-12(g) may not be traded or otherwise
provided to another manufacturer.
    (8) The following provisions apply if a manufacturer calculates
that it has negative credits (also called ``debits'' or a ``credit
deficit'') for a given model year:
    (i) The manufacturer may carry the credit deficit forward into the
next three model years. Such a carry-forward may only occur after the
manufacturer exhausts any supply of banked credits. The deficit must be
covered with an appropriate number of credits that the manufacturer
generates or purchases by the end of the third model year. Any
remaining deficit is subject to a voiding of the certificate ab initio,
as described in this paragraph (k)(8). Manufacturers are not permitted
to have a credit deficit for four consecutive years.
    (ii) If the credit deficit is not offset within the specified time
period, the number of vehicles not meeting the fleet average
CO2 standards (and therefore not covered by the certificate)
must be calculated.
    (A) Determine the negative credits for the noncompliant vehicle
category by multiplying the total megagram deficit by 1,000,000 and
then dividing by the mileage specified in paragraph (k)(4) of this
section.
    (B) Divide the result by the fleet average standard applicable to
the model year in which the debits were first incurred and round to the
nearest whole number to determine the number of vehicles not meeting
the fleet average CO2 standards.
    (iii) EPA will determine the vehicles not covered by a certificate
because the condition on the certificate was not satisfied by
designating vehicles in those test groups with the highest carbon-
related exhaust emission values first and continuing until reaching a
number of vehicles equal to the calculated number of non-complying
vehicles as determined in this paragraph (k)(8). The same approach
applies for HDV, except that EPA will make these designations by
ranking test groups based on CO2 emission values. If these
calculations determines that only a portion of vehicles in a test group
contribute to the debit situation, then EPA will designate actual
vehicles in that test group as not covered by the certificate, starting
with the last vehicle produced and counting backwards.
    (iv)(A) If a manufacturer ceases production of passenger
automobiles, light trucks, or heavy-duty vehicles, the manufacturer
continues to be responsible for offsetting any debits

outstanding within the required time period. Any failure to offset the
debits will be considered a violation of paragraph (k)(8)(i) of this
section and may subject the manufacturer to an enforcement action for
sale of vehicles not covered by a certificate, pursuant to paragraphs
(k)(8)(ii) and (iii) of this section.
    (B) If a manufacturer is purchased by, merges with, or otherwise
combines with another manufacturer, the controlling entity is
responsible for offsetting any debits outstanding within the required
time period. Any failure to offset the debits will be considered a
violation of paragraph (k)(8)(i) of this section and may subject the
manufacturer to an enforcement action for sale of vehicles not covered
by a certificate, pursuant to paragraphs (k)(8)(ii) and (iii) of this
section.
    (v) For purposes of calculating the statute of limitations, a
violation of the requirements of paragraph (k)(8)(i) of this section, a
failure to satisfy the conditions upon which a certificate(s) was
issued and hence a sale of vehicles not covered by the certificate, all
occur upon the expiration of the deadline for offsetting debits
specified in paragraph (k)(8)(i) of this section.
    (9) The following provisions apply to CO2 credit
trading:
    (i) EPA may reject CO2 credit trades if the involved
manufacturers fail to submit the credit trade notification in the
annual report.
    (ii) A manufacturer may not sell credits that are no longer valid
for demonstrating compliance based on the model years of the subject
vehicles, as specified in paragraph (k)(6) of this section.
    (iii) In the event of a negative credit balance resulting from a
transaction, both the buyer and seller are liable for the credit
shortfall. EPA may void ab initio the certificates of conformity of all
test groups that generate or use credits in such a trade.
    (iv)(A) If a manufacturer trades a credit that it has not generated
pursuant to this paragraph (k) or acquired from another party, the
manufacturer will be considered to have generated a debit in the model
year that the manufacturer traded the credit. The manufacturer must
offset such debits by the deadline for the annual report for that same
model year.
    (B) Failure to offset the debits within the required time period
will be considered a failure to satisfy the conditions upon which the
certificate(s) was issued and will be addressed pursuant to paragraph
(k)(8) of this section.
    (v) A manufacturer may only trade credits that it has generated
pursuant to paragraphs (k)(4) and (5) of this section or acquired from
another party.
    (l) Maintenance of records and submittal of information relevant to
compliance with fleet average CO2 standards--(1) Maintenance of
records. (i) Manufacturers producing any light-duty vehicles, light-
duty trucks, medium-duty passenger vehicles, or other heavy-duty
vehicles subject to the provisions in this subpart must establish,
maintain, and retain all the following information in adequately
organized records for each model year:
    (A) Model year.
    (B) Applicable fleet average CO2 standards for each
averaging set as defined in paragraph (i) of this section.
    (C) The calculated fleet average CO2 value for each
averaging set as defined in paragraph (i) of this section.
    (D) All values used in calculating the fleet average CO2
values.
    (ii) Manufacturers must establish, maintain, and retain all the
following information in adequately organized records for each vehicle
produced that is subject to the provisions in this subpart:
    (A) Model year.
    (B) Applicable fleet average CO2 standard.
    (C) EPA test group.
    (D) Assembly plant.
    (E) Vehicle identification number.
    (F) Carbon-related exhaust emission standard (automobile and light
truck only), N2O emission standard, and CH4
emission standard to which the vehicle is certified.
    (G) In-use carbon-related exhaust emission standard for passenger
automobiles and light truck, and in-use CO2 standard for
HDV.
    (H) Information on the point of first sale, including the
purchaser, city, and state.
    (iii) Manufacturers must retain all required records for a period
of eight years from the due date for the annual report. Records may be
stored in any format and on any media, as long as manufacturers can
promptly send EPA organized written records in English if requested by
the Administrator. Manufacturers must keep records readily available as
EPA may review them at any time.
    (iv) The Administrator may require the manufacturer to retain
additional records or submit information not specifically required by
this section.
    (v) Pursuant to a request made by the Administrator, the
manufacturer must submit to the Administrator the information that the
manufacturer is required to retain.
    (vi) EPA may void ab initio a certificate of conformity for
vehicles certified to emission standards as set forth or otherwise
referenced in this subpart for which the manufacturer fails to retain
the records required in this section or to provide such information to
the Administrator upon request, or to submit the reports required in
this section in the specified time period.
    (2) Reporting. (i) Each manufacturer must submit an annual report.
The annual report must contain for each applicable CO2
standard, the calculated fleet average CO2 value, all values
required to calculate the CO2 emissions value, the number of
credits generated or debits incurred, all the values required to
calculate the credits or debits, and the resulting balance of credits
or debits. For each applicable alternative N2O and/or
CH4 standard selected under the provisions of Sec.  86.1818-
12(f)(3) for passenger automobiles and light trucks (or Sec.  86.1819-
14(c) for HDV), the report must contain the CO2-equivalent
debits for N2O and/or CH4 calculated according to
Sec.  86.1818-12(f)(4) (or Sec.  86.1819-14(c) for HDV) for each test
group and all values required to calculate the number of debits
incurred.
    (ii) For each applicable fleet average CO2 standard, the
annual report must also include documentation on all credit
transactions the manufacturer has engaged in since those included in
the last report. Information for each transaction must include all of
the following:
    (A) Name of credit provider.
    (B) Name of credit recipient.
    (C) Date the trade occurred.
    (D) Quantity of credits traded in megagrams.
    (E) Model year in which the credits were earned.
    (iii) Manufacturers calculating air conditioning leakage and/or
efficiency credits under paragraph Sec.  86.1871-12(b) shall include
the following information for each model year and separately for
passenger automobiles and light trucks and for each air conditioning
system used to generate credits:
    (A) A description of the air conditioning system.
    (B) The leakage credit value and all the information required to
determine this value.
    (C) The total credits earned for each averaging set, model year,
and region, as applicable.
    (iv) Manufacturers calculating advanced technology vehicle credits
under paragraph Sec.  86.1871-12(c) shall include the following
information for each model year and separately for passenger
automobiles and light trucks:

    (A) The number of each model type of eligible vehicle sold.
    (B) The cumulative model year production of eligible vehicles
starting with the 2009 model year.
    (C) The carbon-related exhaust emission value by model type and
model year.
    (v) Manufacturers calculating off-cycle technology credits under
paragraph Sec.  86.1871-12(d) shall include, for each model year and
separately for passenger automobiles and light trucks, all test results
and data required for calculating such credits.
    (vi) Unless a manufacturer reports the data required by this
section in the annual production report required under Sec.  86.1844-
01(e) or the annual report required under Sec.  600.512-12 of this
chapter, a manufacturer must submit an annual report for each model
year after production ends for all affected vehicles produced by the
manufacturer subject to the provisions of this subpart and no later
than May 1 of the calendar year following the given model year. Annual
reports must be submitted to: Director, Compliance Division, U.S.
Environmental Protection Agency, 2000 Traverwood Dr., Ann Arbor,
Michigan 48105.
    (vii) Failure by a manufacturer to submit the annual report in the
specified time period for all vehicles subject to the provisions in
this section is a violation of section 203(a)(1) of the Clean Air Act
(42 U.S.C. 7522 (a)(1)) for each applicable vehicle produced by that
manufacturer.
    (viii) If EPA or the manufacturer determines that a reporting error
occurred on an annual report previously submitted to EPA, the
manufacturer's credit or debit calculations will be recalculated. EPA
may void erroneous credits, unless traded, and will adjust erroneous
debits. In the case of traded erroneous credits, EPA must adjust the
selling manufacturer's credit balance to reflect the sale of such
credits and any resulting credit deficit.
    (3) Notice of opportunity for hearing. Any voiding of the
certificate under paragraph (l)(1)(vi) of this section will be made
only after EPA has offered the affected manufacturer an opportunity for
a hearing conducted in accordance with 40 CFR part 1068, subpart G,
and, if a manufacturer requests such a hearing, will be made only after
an initial decision by the Presiding Officer.

0
86. Section 86.1866-12 is amended by adding introductory text and
revising paragraph (b) introductory text to read as follows:

Sec.  86.1866-12   CO2 credits for advanced technology
vehicles.

    This section describes how to apply CO2 credits for
advanced technology passenger automobiles and light trucks (including
MDPV). This section does not apply for heavy-duty vehicles that are not
MDPV.
* * * * *
    (b) For electric vehicles, plug-in hybrid electric vehicles, fuel
cell vehicles, dedicated natural gas vehicles, and dual-fuel natural
gas vehicles as those terms are defined in Sec.  86.1803-01, that are
certified and produced for U.S. sale in the 2017 through 2021 model
years and that meet the additional specifications in this section, the
manufacturer may use the production multipliers in this paragraph (b)
when determining the manufacturer's fleet average carbon-related
exhaust emissions under Sec.  600.510-12 of this chapter. Full size
pickup trucks eligible for and using a production multiplier are not
eligible for the performance-based credits described in Sec.  86.1870-
12(b).
* * * * *

0
87. Section 86.1867-12 is amended by revising the introductory text to
read as follows:

Sec.  86.1867-12   CO2 credits for reducing leakage of air
conditioning refrigerant.

    Manufacturers may generate credits applicable to the CO2
fleet average program described in Sec.  86.1865-12 by implementing
specific air conditioning system technologies designed to reduce air
conditioning refrigerant leakage over the useful life of their
passenger automobiles and/or light trucks (including MDPV); only the
provisions of paragraph (a) of this section apply for non-MDPV heavy-
duty vehicles. Credits shall be calculated according to this section
for each air conditioning system that the manufacturer is using to
generate CO2 credits. Manufacturers may also generate early
air conditioning refrigerant leakage credits under this section for the
2009 through 2011 model years according to the provisions of Sec.
86.1871-12(b).
* * * * *

0
88. Section 86.1868-12 is amended by revising the introductory text and
paragraphs (e)(5), (f)(1), (g)(1), and (g)(3) introductory text to read
as follows:

Sec.  86.1868-12   CO2 credits for improving the efficiency
of air conditioning systems.

    Manufacturers may generate credits applicable to the CO2
fleet average program described in Sec.  86.1865-12 by implementing
specific air conditioning system technologies designed to reduce air
conditioning-related CO2 emissions over the useful life of
their passenger automobiles and/or light trucks (including MDPV). The
provisions of this section do not apply for non-MDPV heavy-duty
vehicles. Credits shall be calculated according to this section for
each air conditioning system that the manufacturer is using to generate
CO2 credits. Manufacturers may also generate early air
conditioning efficiency credits under this section for the 2009 through
2011 model years according to the provisions of Sec.  86.1871-12(b).
For model years 2012 and 2013 the manufacturer may determine air
conditioning efficiency credits using the requirements in paragraphs
(a) through (d) of this section. For model years 2014 through 2016 the
eligibility requirements specified in either paragraph (e) or (f) of
this section must be met before an air conditioning system is allowed
to generate credits. For model years 2017 through 2019 the eligibility
requirements specified in paragraph (f) of this section must be met
before an air conditioning system is allowed to generate credits. For
model years 2020 and later the eligibility requirements specified in
paragraph (g) of this section must be met before an air conditioning
system is allowed to generate credits.
* * * * *
    (e) * * *
    (5) Air conditioning systems with compressors that are solely
powered by electricity shall submit Air Conditioning Idle Test
Procedure data to be eligible to generate credits in the 2014 and later
model years, but such systems are not required to meet a specific
threshold to be eligible to generate such credits, as long as the
engine remains off for a period of at least 2 cumulative minutes during
the air conditioning on portion of the Idle Test Procedure in Sec.
86.165-12(d).
    (f) * * *
    (1) The manufacturer shall perform the AC17 test specified in 40
CFR 1066.845 on each unique air conditioning system design and vehicle
platform combination (as those terms are defined in Sec.  86.1803) for
which the manufacturer intends to accrue air conditioning efficiency
credits. The manufacturer must test at least one unique air
conditioning system within each vehicle platform in a model year,
unless all unique air conditioning systems within a vehicle platform
have been previously tested. A unique air conditioning system design is
a system with unique or substantially different component designs or
types and/or system control strategies (e.g., fixed

displacement vs. variable displacement compressors, orifice tube vs.
thermostatic expansion valve, single vs. dual evaporator, etc.). In the
first year of such testing, the tested vehicle configuration shall be
the highest production vehicle configuration within each platform. In
subsequent model years the manufacturer must test other unique air
conditioning systems within the vehicle platform, proceeding from the
highest production untested system until all unique air conditioning
systems within the platform have been tested, or until the vehicle
platform experiences a major redesign. Whenever a new unique air
conditioning system is tested, the highest production configuration
using that system shall be the vehicle selected for testing. Air
conditioning system designs which have similar cooling capacity,
component types, and control strategies, yet differ in terms of
compressor pulley ratios or condenser or evaporator surface areas will
not be considered to be unique system designs. The test results from
one unique system design may represent all variants of that design.
Manufacturers must use good engineering judgment to identify the unique
air conditioning system designs which will require AC17 testing in
subsequent model years. Results must be reported separately for all
four phases (two phases with air conditioning off and two phases with
air conditioning on) of the test to the Environmental Protection
Agency, and the results of the calculations required in 40 CFR 1066.845
must also be reported. In each subsequent model year additional air
conditioning system designs, if such systems exist, within a vehicle
platform that is generating air conditioning credits must be tested