126. Section 91.3 is amended by revising the definitions for " Marine spark ignition engine", " Marine vessel", and " United States", adding definitions for " Amphibious vehicle", " Marine engine", and " Spark ignition" in alphabetical order to read as follows: § 91.3 Definitions. * * * * * Amphibious vehicle means a vehicle with wheels or tracks that is designed primarily for operation on land and secondarily for operation in water. * * * * * Marine engine means a nonroad engine that is installed or intended to be installed on a marine vessel. This includes a portable auxiliary marine engine only if its fueling, cooling, or exhaust system is an integral part of the vessel. There are two kinds of marine engines: ( 1) Propulsion marine engine means a marine engine that moves a vessel through the water or directs the vessel's movement. ( 2) Auxiliary marine engine means a marine engine not used for propulsion. Marine spark ignition engine means a spark ignition marine engine that propels a marine vessel. * * * * * Marine vessel has the meaning given in 1 U. S. C. 3, except that it does not include amphibious vehicles. The definition in 1 U. S. C. 3 very broadly includes every craft capable of being used as a means of transportation on water. * * * * * Spark ignition means relating to a gasoline fueled engine or any other type of engine with a spark plug ( or other sparking device) and with operating characteristics significantly similar to the theoretical Otto combustion cycle. Spark ignition engines usually use a throttle to regulate intake air flow to control power during normal operation. * * * * * United States means the States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, and the U. S. Virgin Islands. * * * * *

127. Section 91.119 is amended by reserving paragraph ( b)( 3) and adding paragraph ( b)( 4) to read as follows: § 91.119 Certification procedure   use of special test procedures. * * * * * ( b)* * * ( 3) [ Reserved] 55 ( 4) Where we specify mandatory compliance with the procedures of 40 CFR part 1065, manufacturers may elect to use the procedures specified in 40 CFR part 86, subpart N, as an alternate test procedure without advance approval by the Administrator.

128. Section 91.207 is amended by revising the second equation for S( t) in paragraph ( a) to read as follows: § 91.207 Credit calculation and manufacturer compliance with emission standards.

( a) * * * S( t) = exp ( 0.906 × t/

life) 4 * * * * *

129. Section 91.301 is amended by revising paragraph ( c) to read as follows: § 91.301 Scope; applicability. * * * * * ( c) Additional information about system design, calibration methodologies, and so forth, for raw gas sampling can be found in 40 CFR part 1065. Examples for system design, calibration methodologies, and so forth, for dilute sampling can be found in 40 CFR part 1065.

130. Section 91.316 is amended by revising paragraphs ( b)( 2)( ii) and ( c) introductory text, and the first equation in paragraph ( d)( 6) to read as follows: § 91.316 Hydrocarbon analyzer calibration. * * * * * ( b)* * * ( 2)* * * ( ii) The HFID optimization procedures outlined in 40 CFR part 1065, subpart D. * * * * * ( c) Initial and periodic calibration. Prior to introduction into service and monthly thereafter, or within one month prior to the certification test, calibrate the FID or HFID hydrocarbon analyzer on all normally used instrument ranges, using the steps in this paragraph. Use the same flow rate and pressures as when analyzing samples. Introduce calibration gases directly at the analyzer. An optional method for dilute sampling described in 40 CFR part 1065, subpart F, may be used. * * * * * ( d)* * * ( 6)* * *

percent O 2 I = ( B Analyzer response ( ppm C))/ B × 100 * * * * * 56 131. Section 91.318 is amended by revising paragraph ( d) and the equation in paragraph ( b)( 11) to read as follows: § 91.318 Oxides of nitrogen analyzer calibration. * * * * * ( b)* * * ( 11) * * * percent efficiency = ( 1 + ( a b)/( c d)) × 100 * * * * * ( d) The initial and periodic interference, system check, and calibration test procedures specified in 40 CFR part 1065, subparts C and D, may be used in lieu of the procedures specified in this section.

132. Section 91.320 is amended by revising paragraph ( b) to read as follows: § 91.320 Carbon dioxide analyzer calibration. * * * * * ( b) The initial and periodic interference, system check, and calibration test procedures specified in 40 CFR part 1065, subparts C and D, may be used in lieu of the procedures in this section.

133. Section 91.325 is amended by revising the equations in paragraphs ( c)( i)( iv) and ( c)( 2)( iii) and adding paragraph ( c)( 2)( iv) to read as follows: § 91.325 Analyzer interference checks. * * * * * ( c) * * * ( 1)* * * ( iv) * * * percent CO 2 quench = 100  100 × [ c × a/( d × a  d × b)] × a/ b * * * * * ( 2)* * * ( iii) * * * D1 = D × ( 1 Z1/ 100) ( iv)( A) The maximum raw or dilute exhaust water vapor concentration expected during testing ( designated as Wm) can be estimated from the CO 2 span gas ( or as defined in the equation in this paragraph and designated as A) criteria in paragraph ( c)( 1) of this section and the assumption of a fuel atom H/ C ratio of 1.8: 1 as: Wm(%)= 0.9xA(%) Where: A = maximum CO 2 concentration expected in the sample system during testing. ( B) Percent water quench shall not exceed 3 percent and shall be calculated by: % Water Quench = 100 × ( D1  AR)/ D1 × Wm/ Z1 134. Section 91.419 is amended by revising the entry defining " M HCexh" in paragraph ( b) to read 57 as follows: § 91.419 Raw emission sampling calculations. * * * * * ( b)* * * M HCexh = Molecular weight of hydrocarbons in the exhaust; see the following equation: M HCexh = 12.01 + 1.008 ×   * * * * *

135. Section 91.421 is amended by revising paragraph ( b)( 4)( ii) and ( b)( 4)( iii) to read as follows: § 91.421 Dilute gaseous exhaust sampling and analytical system description. * * * * * ( b)* * * ( 4)* * * ( ii) Conform to the continuous NOx, CO, or CO2 sampling and analysis system to the specifications of 40 CFR 1065.145, with the following exceptions and revisions: ( A) Heat the system components requiring heating only to prevent water condensation, the minimum component temperature is 55  C. ( B) Coordinate analysis system response time with CVS flow fluctuations and sampling time/ test cycle offsets to meet the time alignment and dispersion specifications in 40 CFR pat 1065, subpart C. ( C) Use only analytical gases conforming to the specifications of 40 CFR 1065.750 for calibration, zero, and span checks. ( D) Use a calibration curve conforming to 40 CFR part 1065, subparts C and D, for CO, CO2, and NOX for any range on a linear analyzer below 155 ppm. ( iii) Convert the chart deflections or voltage output of analyzers with non linear calibration curves to concentration values by the calibration curve( s) specified in 40 CFR part 1065, subpart D, before flow correction ( if used) and subsequent integration takes place. * * * * *

136. Section 91.705 is amended by revising paragraph ( d) to read as follows: § 91.705 Prohibited acts; penalties. * * * * * ( d) An importer who violates § 91.1103( a)( 1), section 213( d) and section 203 of the Act is subject to a civil penalty under § 91.1106 and section 205 of the Act of not more than $ 32,500 for each marine engine subject to the violation. In addition to the penalty provided in the Act, where applicable, a person or entity who imports an engine under the exemption provisions of § 91.704( b) and, who fails to deliver the marine engine to the U. S. Customs Service by the end of the period of conditional admission is liable for liquidated damages in the amount of the bond required by applicable Customs laws and regulations. The maximum penalty value listed in this paragraph ( d) is shown for calendar year 2004. Maximum penalty limits for later years may be adjusted based on the Consumer Price Index. The specific regulatory provisions for changing the 58 maximum penalties, published in 40 CFR part 19, reference the applicable U. S. Code citation on which the prohibited action is based.

137. A new § 91.707 is added to read as follows: § 91.707 Importation of partially complete engines. The provisions of 40 CFR 1068.330 apply for importation of partially complete engines.

138. Section 91.1106 is amended by revising paragraphs ( a)( 1), ( a)( 2), ( a)( 5), and ( c)( 1) and adding paragraph ( a)( 6) to read as follows: § 91.1106 Penalties. ( a) * * * ( 1) A person who violates § 91.1103 ( a)( 1), ( a)( 4), or ( a)( 5), or a manufacturer or dealer who violates § 91.1103( a)( 3)( i), is subject to a civil penalty of not more than $ 32,500 for each violation. ( 2) A person other than a manufacturer or dealer who violates § 91.1103( a)( 3)( i) or any person who violates § 91.1103( a)( 3)( ii) is subject to a civil penalty of not more than $ 2,750 for each violation. * * * * * ( 5) A person who violates § 91.1103 ( a)( 2) or ( a)( 6) is subject to a civil penalty of not more than $ 32,500 per day of violation. ( 6) The maximum penalty values listed in this section are shown for calendar year 2004. Maximum penalty limits for later years may be adjusted based on the Consumer Price Index. The specific regulatory provisions for changing the maximum penalties, published in 40 CFR part 19, reference the applicable U. S. Code citation on which the prohibited action is based. * * * * * ( c) * * * ( 1) Administrative penalty authority. In lieu of commencing a civil action under paragraph ( b) of this section, the Administrator shall assess any civil penalty prescribed in paragraph ( a) of this section, except that the maximum amount of penalty sought against each violator in a penalty assessment proceeding can not exceed $ 270,000, unless the Administrator and the Attorney General jointly determine that a matter involving a larger penalty amount is appropriate for administrative penalty assessment. Any such determination by the Administrator and the Attorney General is not subject to judicial review. Assessment of a civil penalty is made by an order made on the record after opportunity for a hearing held in accordance with the procedures found at part 22 of this chapter. The Administrator may compromise, or remit, with or without conditions, any administrative penalty which may be imposed under this section. * * * * *

PART 92   Control of Air Pollution from Locomotives and Locomotive Engines 139. The authority citation for part 92 is revised to read as follows: 59 Authority: 42 U. S. C. 7401  7671q.

140. Section 92.1 is amended by revising paragraphs ( a) introductory text, ( b)( 3), and ( b)( 4) and adding paragraph ( d) to read as follows: § 92.1 Applicability. ( a) Except as noted in paragraphs ( b) and ( d) of this section, the provisions of this part apply to manufacturers, remanufacturers, owners and operators of: * * * * * ( b)* * * ( 3) Locomotive engines which provide only hotel power ( see 40 CFR parts 89 and 1039 to determine if such engines are subject to EPA emission requirements); or ( 4) Nonroad vehicles excluded from the definition of locomotive in § 92.2, and the engines used in such nonroad vehicles ( see 40 CFR parts 86, 89, and 1039 to determine if such vehicles or engines are subject to EPA emission requirements). * * * * * ( d) The provisions of subpart L of this part apply to all persons.

141. Section 92.2 is amended in paragraph ( b) by revising the definitions for " Calibration", " Locomotive", paragraph ( 5) of the definition for " New locomotive or new locomotive engine", " Repower", and " United States" to read as follows: § 92.2 Definitions. * * * * * ( b)* * * Calibration means the set of specifications, including tolerances, specific to a particular design, version, or application of a component, or components, or assembly capable of functionally describing its operation over its working range. This definition does apply to Subpart B of this part. * * * * * Locomotive means a self propelled piece of on track equipment designed for moving or propelling cars that are designed to carry freight, passengers or other equipment, but which itself is not designed or intended to carry freight, passengers ( other than those operating the locomotive) or other equipment. The following other equipment are not locomotives ( see 40 CFR parts 86 and 89 for this equipment): ( 1) Equipment which is designed for operation both on highways and rails are not locomotives. ( 2) Specialized railroad equipment for maintenance, construction, post accident recovery of equipment, and repairs; and other similar equipment, are not locomotives. ( 3) Vehicles propelled by engines with total rated horsepower of less than 750 kW ( 1006 hp) are not locomotives ( see 40 CFR parts 86 and 89 for this equipment), unless the owner ( including manufacturers) chooses to have the equipment certified under the requirements of this part. Where equipment is certified as a locomotive pursuant to this paragraph ( 3), it shall be subject to the requirements of this part for the remainder of its service life. For locomotives propelled by two or more engines, the total rated horsepower is the sum of the rated horsepowers of each engine. 60 * * * * * New locomotive or new locomotive engine means: * * * ( 5) Notwithstanding paragraphs ( 1) through ( 3) of this definition, locomotives and locomotive engines which are owned by a small railroad and which have never been manufactured or remanufactured into a certified configuration are not new. * * * * * Repower means replacement of the engine in a previously used locomotive with a freshly manufactured locomotive engine. Replacing a locomotive engine with a freshly manufactured locomotive engine in a locomotive that has a refurbished or reconditioned chassis such that less than 25 percent of the parts of the locomotive were previously used ( as weighted by dollar value) is not repowering. * * * * * United States means the States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, and the U. S. Virgin Islands. * * * * * 142. Section 92.8 is amended by revising paragraph ( b) to read as follows: § 92.8 Emission standards. * * * * * ( b) No crankcase emissions shall be discharged directly into the ambient atmosphere from any new locomotive or new locomotive engine, except as allowed by paragraph ( 1) of this paragraph ( b). ( 1) Discharge of crankcase emissions into the engine exhaust complies with this prohibition, provided crankcase emissions are measured and included with exhaust emissions. Other discharge of crankcase emissions complies with this prohibition, provided crankcase emissions are measured in all certification, production line, and in use tests and the masses are added mathematically to the exhaust emissions. ( 2) Compliance with this standard is required throughout the entire service life of the locomotive or locomotive engine. * * * * *

143. Section 92.12 is amended by adding paragraphs ( g) and ( h) to read as follows: § 92.12 Interim provisions. * * * * * ( g) Tier 0 locomotive labels. Remanufacturers may use identical labels for locomotives and engines for Tier 0 locomotives, provided the remanufacturer demonstrates to EPA that they will supply two labels ( one for the locomotive and one for the engine) only with those remanufacturing systems being applied to locomotives that have not been previously labeled ( i. e., locomotives that have not been previously certified). For other locomotives, the remanufacturer may only supply one label. ( h) Labels for calendar year 2005. During calendar year 2005, manufacturers and remanufacturers may comply with the labeling requirements that were applicable during calendar year 2004, instead of the labeling requirements specified in § 92.212( c)( 2)( v).

144. Section 92.104 is amended by revising paragraph ( b)( 1)( i) to read as follows: 61 § 92.104 Locomotive and engine testing; overview. * * * * * ( b)* * * ( 1)* * * ( i) Engine speed setpoints for each mode shall be within 2 percent of the speed of the engine when it is operated in the locomotive. Engine load setpoints for each mode shall be within 2 percent ( or 3.0 horsepower, whichever is greater) of the load of the engine when it is operated in the locomotive. * * * * *

145. Section 92.105 is amended by revising paragraph ( d) to read as follows: § 92.105 General equipment specifications. * * * * * ( d) Electrical measurements. Instruments used to measure engine power output shall comply with the requirements of § 92.106. * * * * *

146. Section 92.106 is amended by revising paragraph ( b)( 1)( ii) to read as follows: § 92.106 Equipment for loading the engine. * * * * * ( b)* * * ( 1) * * * ( ii) Engine flywheel torque readout shall be accurate to within ± 2 percent of the NIST " true" value torque at all power settings above 10 percent of full scale, and accurate to within ± 5 percent of the NIST " true" value torque at power settings at or below 10 percent of full scale.

147. Section 92.109 is amended by revising paragraph ( c)( 3) to read as follows: § 92.109 Analyzer specifications. * * * * * ( c) * * * ( 3) Alcohols and Aldehydes. The sampling and analysis procedures for alcohols and aldehydes, where applicable, shall be approved by the Administrator prior to the start of testing. Procedures are allowed if they are consistent with the general requirements of 40 CFR part 1065, subpart I, for sampling and analysis of alcohols and aldehydes, and with good engineering practice. * * * * *

148. Section 92.114 is amended by revising paragraphs ( a)( 2)( ii), ( d)( 2) introductory text and ( e)( 1) to read as follows: § 92.114 Exhaust gas and particulate sampling and analytical system. * * * * * 62 ( a) * * * ( 2)* * * ( ii) For locomotive testing where the locomotive has multiple exhaust stacks, proportional samples may be collected from each exhaust outlet instead of ducting the exhaust stacks together, provided that the CO 2 concentrations in each exhaust stream are shown( either prior to testing or during testing) to be within 5 percent of each other at notch 8. * * * * * ( d)* * * ( 2) For engine testing, either a locomotive type or a facility type exhaust system ( or a combination system) may be used. The exhaust backpressure for engine testing shall be set between 90 and 100 percent of the maximum backpressure that will result with the exhaust systems of the locomotives in which the engine will be used. Backpressure less than 90 percent of the maximum value is also allowed, provided the backpressure is within 0.07 psi of the maximum value. The facility type exhaust system shall meet the following requirements: * * * * * ( e) * * * ( 1) Dilution of the exhaust prior to sampling is allowed for gaseous emissions. The equipment and methods used for dilution, sampling and analysis shall comply with the requirements of 40 CFR part 1065, with the following exceptions and additional requirements: ( i) Proportional sampling and heat exchangers are not required; ( ii) Larger minimum dimensions for the dilution tunnel( s) shall be specified by the Administrator; ( iii) Other modifications may be made with written approval from the Administrator. * * * * *

149. Section 92.123 is amended by revising paragraph ( a)( 2) to read as follows: § 92.123 Test procedure; general requirements. ( a) * * * ( 2) For locomotives with multiple exhaust stacks, smoke testing is required for only one of the exhaust stacks provided the following conditions are met: ( i) The stack that is not tested is not visibly smokier than the stack that is tested, and ( ii) None of the measured opacity values for the stack tested are greater than threequarters of the level allowed by any of the applicable smoke standards. * * * * *

150. Section 92.124 is amended by revising paragraph ( f) to read as follows: § 92.124 Test sequence; general requirements. * * * * * ( f) The required test sequence is described in Table B124 1 of this section, as follows: 63 Table B124 1 TEST SEQUENCE FOR LOCOMOTIVES AND LOCOMOTIVE ENGINES Mode Number Notch Setting Time in Notch Emissions Measured2 Power, and Fuel Consumption Measured Warmup Notch 8 5 ± 1 min None None Warmup Lowest Idle 15 min maximum ( after engine speed reaches lowest idle speed) None None 1a Low Idle1 6 min minimum All Both 1 Normal Idle 6 min minimum All Both 2 Dynamic Brake1 6 min minimum All Both 3 Notch 1 6 min minimum All Both 4 Notch 2 6 min minimum All Both 5 Notch 3 6 min minimum All Both 6 Notch 4 6 min minimum All Both 7 Notch 5 6 min minimum All Both 8 Notch 6 6 min minimum All Both 9 Notch 7 6 min minimum All Both 10 Notch 8 15 min minimum All Both 1 Omit if not so equipped. 2 The EPA test sequence for locomotives and locomotive engines may be performed once, with gaseous, particulate and smoke measurements performed simultaneously, or it may be performed twice with gaseous, and particulate measurements performed during one test sequence and smoke measurements performed during the other test sequence. The minimum time in notch is three minutes for test sequences in which only smoke is measured.

151. Section 92.126 is amended by revising paragraph ( b)( 3) to read as follows: § 92.126 Test run. * * * * * ( b)* * * ( 3) Fuel flow rate shall be measured continuously. The value reported for the fuel flow rate shall be a one minute average of the instantaneous fuel flow measurements taken during the last minute of the minimum sampling period listed in Table B124 1 in § 92.124; except for testing during idle modes, where it shall be a three minute average of the instantaneous fuel flow measurements taken during the last three minutes of the minimum sampling period listed in Table B124 1 in § 92.124. Sampling periods greater than one minute are allowed, consistent with good engineering practice. Fuel flow averaging periods should generally 64 match the emission sampling periods as closely as is practicable.

152. Section 92.131 is amended by revising paragraph ( b)( 3) to read as follows: § 92.131 Smoke, data analysis. * * * * * ( b)* * * ( 3) The " steady state" value is either: ( i) The highest reading occurring more than two minutes after the notch change ( excluding peaks lasting less than 5 seconds, caused by such random events as the cycling of an air compressor) if opacity measurements are recorded graphically; or ( ii) The average of the second by second values between 120 and 180 seconds after the notch change if opacity measurements are recorded digitally. * * * * *

153. Section 92.132 is amended by revising paragraphs ( b)( 3)( iii)( D)( 2) and ( d) to read as follows: § 92.132 Calculations. * * * * * ( b)* * * ( 3)* * * ( iii) * * * ( D) * * * ( 2) If a CO instrument that meets the criteria specified in 40 CFR part 1065, subpart C, is used without a sample dryer according to 40 CFR 1065.145, CO em must be substituted directly for CO e and CO dm must be substituted directly for CO d. * * * * * ( d) NOx correction factor. ( 1) NOx emission rates ( M NOx mode) shall be adjusted to account for the effects of humidity and temperature by multiplying each emission rate by K NOx , which is calculated from the following equations: K NOx = ( K)( 1 + ( 0.25( logK) 2) ½ )

K = ( K H)( K T)

K H = [ C 1+ C 2 exp(( 0.0143)( 10.714))]/[ C 1+ C 2 exp(( 0.0143)( 1000H))]

C 1 =  8.7 + 164.5exp( 0.0218( A/ F) wet)

C 2 = 130.7 + 3941exp( 0.0248( A/ F) wet)

Where: ( A/ F) wet = Mass of moist air intake divided by mass of fuel intake. K T = 1/[ 1 0.0107( T 30 T A)] for tests conducted at ambient temperatures below 30  C. K T = 1.00 for tests conducted at ambient temperatures at or above 30  C. T 30 = The measured intake manifold air temperature in the locomotive when operated at 65 30  C ( or 100  C, where intake manifold air temperature is not available). T A = The measured intake manifold air temperature in the locomotive as tested ( or the ambient temperature (  C), where intake manifold air temperature is not available). * * * * *

154. Section 92.203 is amended by revising paragraph ( d)( 1)( i) to read as follows: § 92.203 Application for certification. * * * * * ( d) Required content. Each application must include the following information: ( 1)( i) A description of the basic engine design including, but not limited to, the engine family specifications, the provisions of which are contained in § 92.204; * * * * *

155. Section 92.204 is amended by revising paragraph ( a) to read as follows: § 92.204 Designation of engine families. * * * * * ( a) Manufacturers and remanufacturers shall divide their locomotives and locomotive engines into groupings of locomotives and locomotive engines which are expected to have similar emission characteristics throughout their useful life. Each group shall be defined as a separate engine family. Freshly manufactured locomotives may not be included in the same engine family as remanufactured locomotives. Freshly manufactured engines may be included in the same engine family as remanufactured locomotives, provided such engines are used as replacement engines for locomotive models included in the engine family. * * * * *

156. Section 92.205 is amended by revising paragraph ( a) to read as follows: § 92.205 Prohibited controls, adjustable parameters. ( a) Any system installed on, or incorporated in, a new locomotive or new locomotive engine to enable such locomotive or locomotive engine to conform to standards contained in this part: * * * * *

157. Section 92.208 is amended by revising paragraphs ( a) and ( b) to read as follows: § 92.208 Certification. ( a) Paragraph ( a) of this section applies to manufacturers of new locomotives and new locomotive engines. If, after a review of the application for certification, test reports and data acquired from a freshly manufactured locomotive or locomotive engine or from a development data engine, and any other information required or obtained by EPA, the Administrator determines that the application is complete and that the engine family meets the requirements of the Act and this part, he/ she will issue a certificate of conformity with respect to such engine family except as provided by paragraph ( c)( 3) of this section. The certificate of conformity is valid for each engine family from the date of issuance by EPA until 31 December of the model year or calendar year for which it is issued and upon such terms and conditions as the Administrator deems necessary or appropriate to assure that the production locomotives or engines covered by the certificate will 66 meet the requirements of the Act and of this part. ( b) This paragraph ( b) applies to remanufacturers of locomotives and locomotive engines. If, after a review of the application for certification, test reports and data acquired from a remanufactured locomotive or locomotive engine or from a development data engine, and any other information required or obtained by EPA, the Administrator determines that the engine family meets the requirements of the Act and of this subpart, he/ she will issue a certificate of conformity with respect to such engine family except as provided by paragraph ( c)( 3) of this section. The certificate of conformity is valid for each engine family from the date of issuance by EPA until 31 December of the model year or calendar year for which it is issued and upon such terms and conditions as the Administrator deems necessary or appropriate to assure that the production locomotives or engines covered by the certificate will meet the requirements of the Act and of this part. * * * * *

158. Section 92.210 is amended by revising paragraphs ( b)( 1), ( b)( 2), ( d)( 2), and ( d)( 3) to read as follows: § 92.210 Amending the application and certificate of conformity. * * * * * ( b) A manufacturer's or remanufacturer's request to amend the application or the existing certificate of conformity shall include the following information: ( 1) A full description of the change to be made in production, or of the locomotives or engines to be added; ( 2) Engineering evaluations or data showing that the locomotives or engines as modified or added will comply with all applicable emission standards; and * * * * * ( d)* * * ( 2) If the Administrator determines that the change or new locomotive( s) or engine( s) meets the requirements of this part and the Act, the appropriate certificate of conformity shall be amended. ( 3) If the Administrator determines that the changed or new locomotive( s) or engine( s) does not meet the requirements of this part and the Act, the certificate of conformity will not be amended. The Administrator shall provide a written explanation to the manufacturer or remanufacturer of the decision not to amend the certificate. The manufacturer or remanufacturer may request a hearing on a denial. * * * * *

159. Section 92.212 is amended by revising paragraphs ( b)( 2)( ii), ( b)( 2)( v)( A), ( b)( 2)( v)( G), ( c)( 2)( v)( A), and( c)( 2)( v)( D)( 2) to read as follows: § 92.212 Labeling. * * * * * ( b)* * * ( 2)* * * ( ii) The label shall be attached to a locomotive chassis part necessary for normal operation 67 and not normally requiring replacement during the service life of the locomotive. This label may not be attached to the engine. * * * * * ( v)* * * ( A) The label heading: Original Locomotive Emission Control Information. Manufacturers and remanufacturers may add a subheading to distinguish this label from the engine label described in paragraph ( c) of this section.

* * * * * ( G) The standards and/ or FELs to which the locomotive was certified. ( c) * * * ( 2)* * * ( v)* * * ( A) The label heading: Engine Emission Control Information. Manufacturers and remanufacturers may add a subheading to distinguish this label from the locomotive label described in paragraph ( b) of this section. * * * * * ( D) * * * ( 2) This locomotive and locomotive engine conform to U. S. EPA regulations applicable to locomotives and locomotive engines originally manufactured on or after January 1, 2002 and before January 1, 2005; or * * * * *

160. Section 92.215 is amended by revising paragraphs ( a)( 2)( i)( A) and ( b) to read as follows: § 92.215 Maintenance of records; submittal of information; right of entry. ( a) * * * ( 2)* * * ( i) * * * ( A) In the case where a current production engine is modified for use as a certification engine or in a certification locomotive, a description of the process by which the engine was selected and of the modifications made. In the case where the certification locomotive or the engine for a certification locomotive is not derived from a current production engine, a general description of the buildup of the engine ( e. g., whether experimental heads were cast and machined according to supplied drawings). In the cases in the previous two sentences, a description of the origin and selection process for fuel system components, ignition system components, intake air pressurization and cooling system components, cylinders, pistons and piston rings, exhaust smoke control system components, and exhaust aftertreatment devices as applicable, shall be included. The required descriptions shall specify the steps taken to assure that the certification locomotive or certification locomotive engine, with respect to its engine, drivetrain, fuel system, emission control system components, exhaust aftertreatment devices, exhaust smoke control system components or any other devices or components as applicable, that can reasonably be expected to influence exhaust emissions will be representative of production locomotives or locomotive engines and that either: all components and/ or locomotive or engine, construction processes, 68 component inspection and selection techniques, and assembly techniques employed in constructing such locomotives or engines are reasonably likely to be implemented for production locomotives or engines; or that they are as close as practicable to planned construction and assembly process. * * * * * ( b) The manufacturer or remanufacturer of any locomotive or locomotive engine subject to any of the standards prescribed in this part shall submit to the Administrator, at the time of issuance by the manufacturer or remanufacturer, copies of all instructions or explanations regarding the use, repair, adjustment, maintenance, or testing of such locomotive or engine, relevant to the control of crankcase, or exhaust emissions issued by the manufacturer or remanufacturer, for use by other manufacturers or remanufacturers, assembly plants, distributors, dealers, owners and operators. Any material not translated into the English language need not be submitted unless specifically requested by the Administrator. * * * * *

161. Section 92.216 is amended by removed by removing and reserving paragraph ( a)( 2).

162. Section 92.403 is amended by revising paragraph ( b) to read as follows: § 92.403 Emission defect information report. * * * * * ( b) Defect information reports required under paragraph ( a) of this section must be submitted not more than 15 working days after the same emission related defect is found to affect 10 or more locomotives or locomotive engines. Information required by paragraph ( c) of this section that is either not available within 15 working days or is significantly revised must be submitted as it becomes available.

163. Section 92.508 is amended by revising paragraph ( e) to read as follows: § 92.508 Calculation and reporting of test results. * * * * * ( e) Within 45 calendar days of the end of each quarter, each manufacturer or remanufacturer must submit to the Administrator a report which includes the following information: * * * * * 164. Section 92.511 is amended by revising paragraph ( g) to read as follows: § 92.511 Remanufactured locomotives: installation audit requirements. * * * * * ( g) Within 45 calendar days of the end of each quarter, each remanufacturer must submit to the Administrator a report which includes the following information: * * * * *

165. Section 92.512 is amended by revising paragraph ( e) to read as follows: § 92.512 Suspension and revocation of certificates of conformity. * * * * * ( e) The Administrator shall notify the manufacturer or remanufacturer in writing of any 69 suspension or revocation of a certificate of conformity in whole or in part; a suspension or revocation is effective upon receipt of such notification or thirty days from the time an engine family is deemed to be in noncompliance under § § 92.508( d), 92.510( a), 92.510( b) or 92.511( f), whichever is earlier, except that the certificate is immediately suspended with respect to any failed locomotives or locomotive engines as provided for in paragraph ( a) of this section. * * * * *

166. A new § 92.806 is added to read as follows: § 92.806 Importation of partially complete engines. The provisions of 40 CFR 1068.330 apply for importation of partially complete engines, or engines that will be modified for applications other than those covered by this part 92.

167. Section 92.906 is amended by revising paragraph ( a) introductory text to read as follows: § 92.906 Manufacturer owned, remanufacturer owned exemption and display exemption. ( a) Any manufacturer owned or remanufacturer owned locomotive or locomotive engine is exempt from § 92.1103, without application, if the manufacturer complies with the following terms and conditions: * * * * *

168. Section 92.907 is amended by revising paragraphs ( a)( 3) and ( b)( 3) to read as follows: § 92.907 Non locomotive specific engine exemption. ( a) * * * ( 3) The number of such engines exempted under this paragraph ( a) does not exceed: ( i) 50 per manufacturer in any calendar year, where EPA determines that the use of the non locomotive specific engines will result in a significantly greater degree of emission control over the lifetime of the locomotive than using remanufactured engines certified under this part 92; or ( ii) 25 per manufacturer in any calendar year, where EPA has not determined that the use of the non locomotive specific engines will result in a significantly greater degree of emission control over the lifetime of the locomotive than using remanufactured engines certified under this part 92; * * * * * ( b)* * * ( 3) The number of such locomotives sold or leased by the locomotive manufacturer within any three year period, and exempted under this paragraph ( b) does not exceed 30; and * * * * *

169. A new § 92.912 is added to subpart J to read as follows: § 92.912 Staged assembly exemption. You may ask us to provide a temporary exemption to allow you to complete production of your engines at different facilities, as long as you maintain control of the engines until they are in their certified configuration. We may require you to take specific steps to ensure that such engines are 70 in their certified configuration before reaching the ultimate purchaser. You may request an exemption under this section in your application for certification, or in a separate submission.

170. Section 92.1106 is amended by revising paragraphs ( a)( 1), ( a)( 2), ( a)( 5), and ( c)( 1) and adding paragraph ( a)( 6) to read as follows: § 92.1106 Penalties. ( a) * * * ( 1) A person who violates § 92.1103 ( a)( 1), ( a)( 4), or ( a)( 5), or a manufacturer, remanufacturer, dealer or railroad who violates § 92.1103( a)( 3)( i) or ( iii) is subject to a civil penalty of not more than $ 32,500 for each violation. ( 2) A person other than a manufacturer, remanufacturer, dealer, or railroad who violates § 92.1103( a)( 3)( i) or any person who violates § 92.1103( a)( 3)( ii) is subject to a civil penalty of not more than $ 2,750 for each violation. * * * * * ( 5) A person who violates § 92.1103( a)( 2) is subject to a civil penalty of not more than $ 32,500 per day of violation. ( 6) The maximum penalty values listed in this section are shown for calendar year 2004. Maximum penalty limits for later years may be adjusted based on the Consumer Price Index. The specific regulatory provisions for changing the maximum penalties, published in 40 CFR part 19, reference the applicable U. S. Code citation on which the prohibited action is based. * * * * * ( c) * * * ( 1) Administrative penalty authority. In lieu of commencing a civil action under paragraph ( b) of this section, the Administrator may assess any civil penalty prescribed in paragraph ( a) of this section, except that the maximum amount of penalty sought against each violator in a penalty assessment proceeding shall not exceed $ 270,000, unless the Administrator and the Attorney General jointly determine that a matter involving a larger penalty amount is appropriate for administrative penalty assessment. Any such determination by the Administrator and the Attorney General is not subject to judicial review. Assessment of a civil penalty shall be by an order made on the record after opportunity for a hearing held in accordance with the procedures found at part 22 of this chapter. The Administrator may compromise, or remit, with or without conditions, any administrative penalty which may be imposed under this section. * * * * *

171. Appendix IV to part 92 is amended by revising paragraph ( d)( 1) to read as follows: Appendix IV to Part 92  Guidelines for Determining Equivalency Between Emission Measurement Systems * * * * * ( d) Minimum number of tests. The recommended minimum number of tests with each system necessary to determine equivalency is: ( 1) Four locomotive or locomotive engine tests, conducted in accordance with the provisions of Subpart B of this part; or * * * * * 71 PART 94   CONTROL OF AIR POLLUTION FROM MARINE COMPRESSIONIGNITION ENGINES 172. The authority citation for part 94 is revised to read as follows: Authority: 42 U. S. C. 7401  7671q.

173. Section 94.2 is amended in paragraph ( b) by removing the definitions of Auxiliary engine and Propulsion engine, revising the definitions of Marine engine, Marine vessel, and United States, and adding a definition of Amphibious vehicle in alphabetical order to read as follows: § 94.2 Definitions. * * * * * Amphibious vehicle means a vehicle with wheels or tracks that is designed primarily for operation on land and secondarily for operation in water. * * * * * Marine engine means a nonroad engine that is installed or intended to be installed on a marine vessel. This includes a portable auxiliary marine engine only if its fueling, cooling, or exhaust system is an integral part of the vessel. There are two kinds of marine engines: ( 1) Propulsion marine engine means a marine engine that moves a vessel through the water or directs the vessel's movement. ( 2) Auxiliary marine engine means a marine engine not used for propulsion. Marine vessel has the meaning given in 1 U. S. C. 3, except that it does not include amphibious vehicles. The definition in 1 U. S. C. 3 very broadly includes every craft capable of being used as a means of transportation on water. * * * * * United States means the States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, and the U. S. Virgin Islands. * * * * *

174. Section 94.9 is amended by revising paragraph ( a)( 3) to read as follows: § 94.9 Compliance with emission standards. ( a) * * * ( 3) Manufacturers may request in the application for certification that we approve a shorter useful life for an engine family. We may approve a shorter useful life, in hours of engine operation but not in years, if we determine that these engines will rarely operate longer than the shorter useful life. If engines identical to those in the engine family have already been produced and are in use, the demonstration must include documentation from such in use engines. In other cases, the demonstration must include an engineering analysis of information equivalent to such in use data, such as data from research engines or similar engine models 72 that are already in production. The demonstration must also include recommended overhaul intervals, any mechanical warranty offered for the engine or its components, and any relevant customer design specifications. The demonstration may include any other relevant information. The useful life value may not be shorter than any of the following: ( i) 1,000 hours of operation. ( ii) The recommended overhaul interval. ( iii) The mechanical warranty for the engine. * * * * *

175. Section 94.12 is amended by revising paragraph ( h) to read as follows: § 94.12 Interim provisions. * * * * * ( h) Flexibility for small volume boat builders. Notwithstanding the other provisions of this part, manufacturers may sell uncertified recreational engines to small volume boat builders during the first five years for which the emission standards in § 94.8 apply, subject to the following provisions: ( 1) The U. S. directed production volume of boats from any small volume boat builder using uncertified engines during the total five year period may not exceed 80 percent of the manufacturer's average annual production for the three years prior to the general applicability of the recreational engine standards in § 94.8, except as allowed in paragraph ( h)( 2) of this section. ( 2) Small volume boat builders may exceed the production limits in paragraph ( h)( 1) of this section, provided they do not exceed 20 boats during the five year period or 10 boats in any single calendar year. This does not apply to boats powered by engines with displacement greater than 2.5 liters per cylinder. ( 3) Small volume boat builders must keep records of all the boats and engines produced under this paragraph ( h), including boat and engine model numbers, serial numbers, and dates of manufacture. Records must also include information verifying compliance with the limits in paragraph ( h)( 1) or ( 2) of this section. Keep these records until at least two full years after you no longer use the provisions in this paragraph ( h). ( 4) Manufacturers must add a permanent, legible label, written in block letters in English, to a readily visible part of each engine exempted under this paragraph ( h). This label must include at least the following items: ( i) The label heading " EMISSION CONTROL INFORMATION". ( ii) Your corporate name and trademark. ( iii) Engine displacement ( in liters), rated power, and model year of the engine or whom to contact for further information. ( iv) The statement " THIS ENGINE IS EXEMPT UNDER 40 CFR 94.12( h) FROM EMISSION STANDARDS AND RELATED REQUIREMENTS.".

176. Section 94.105 is amended by revising paragraph ( b) before the table to read as follows: § 94.105 Duty cycles. 73 * * * * * ( b) General cycle. Propulsion engines that are used with ( or intended to be used with) fixed pitch propellers, propeller law auxiliary engines, and any other engines for which the other duty cycles of this section do not apply, shall be tested using the duty cycle described in the following Table B   1: * * * * *

177. Section 94.106 is amended by revising paragraph ( b)( 3)( i) to read as follows: § 94.106 Supplemental test procedures for Category 1 and Category 2 marine engines. * * * ( b) * * * ( 3) * * * ( i) The Not to Exceed zone is the region above the curve power = 0.85 × SPD4, excluding all operation below 25% of maximum power at rated speed and excluding all operation below 63% of maximum test * * * * *

178. Section 94.107 is amended by revising paragraph ( b) to read as follows: § 94.107 Determination of maximum test speed. * * * * * ( b) Generation of lug curve. Prior to beginning emission testing, generate maximum measured brakepower versus engine speed data points using the applicable method specified in 40 CFR 1065.510. These data points form the lug curve. It is not necessary to generate the entire lug curve. For the portion of the curve where power increases with increasing speed, it is not necessary to generate points with power less than 90 percent of the maximum power value. For the portion of the curve where power decreases with increasing speed, it is not necessary to generate points with power less than 75 percent of the maximum power value. * * * * *

179. Section 94.109 is amended by revising paragraph ( b) to read as follows: § 94.109 Test procedures for Category 3 marine engines. * * * * * ( b) Analyzers meeting the specifications of either 40 CFR part 1065, subpart C, or ISO 8178   1 ( incorporated by reference in § 94.5) shall be used to measure THC and CO. * * * * *

180. Section 94.211 is amended by revising paragraph ( k) to read as follows: § 94.211 Emission related maintenance instructions for purchasers. * * * * * ( k) For Category 3 engines, the manufacturer must provide the ultimate purchaser with a 74 Technical File meeting the specifications of section 2.4 of the Annex VI Technical Code ( incorporated by reference in § 94.5). The maintenance instructions required by this part to be provided by manufacturer may be included in this Technical File. The manufacturer must provide a copy of this Technical File to EPA upon request. * * * * *

181. Section 94.212 is amended by revising paragraph ( b)( 6) and ( b)( 7) to read as follows: § 94.212 Labeling. * * * * * ( b) * * * ( 6) A prominent unconditional statement of compliance with U. S. Environmental Protection Agency regulations that apply to marine compression ignition engines. ( 7) The useful life of the engine, unless the applicable useful life is based on the provisions of § 94.9( a)( 1). * * * * *

182. A new § 94.806 is added to read as follows: § 94.806 Importation of partially complete engines. The provisions of 40 CFR 1068.330 apply for importation of partially complete engines, or engines that will be modified for applications other than those covered by this part 94.

183. Section 94.904 is amended by revising paragraph ( a) and adding a new paragraph ( c) to read as follows: § 94.904 Exemptions. ( a) Except as specified otherwise in this subpart, the provisions of § § 94.904 through 94.913 exempt certain new engines from the standards, other requirements, and prohibitions of this part, except for the requirements of this subpart and the requirements of § 94.1104. Additional requirements may apply for imported engines; these are described in subpart I of this part. * * * * * ( c) If you want to take an action with respect to an exempted or excluded engine that is prohibited by the exemption or exclusion, such as selling it, you need to certify the engine. We will issue a certificate of conformity if you send us an application for certification showing that you meet all the applicable requirements from this part 94 and pay the appropriate fee. Also, in some cases, we may allow manufacturers to modify the engine as needed to make it identical to engines already covered by a certificate. We would base such an approval on our review of any appropriate documentation. These engines must have emission control information labels that accurately describe their status.

184. Section 94.907 is revised to read as follows: § 94.907 Engine dressing exemption. ( a) General provisions. If you are an engine manufacturer, this section allows you to introduce 75 new marine engines into commerce if they are already certified to the requirements that apply to compression ignition engines under 40 CFR parts 85 and 86 or 40 CFR part 89, 92 or 1039 for the appropriate model year. If you comply with all the provisions of this section, we consider the certificate issued under 40 CFR part 86, 89, 92, or 1039 for each engine to also be a valid certificate of conformity under this part 94 for its model year, without a separate application for certification under the requirements of this part 94. ( b) Boat builder provisions. If you are not an engine manufacturer, you may install an engine certified for the appropriate model year under 40 CFR part 86, 89, 92, or 1039 in a marine vessel as long as you do not make any of the changes described in paragraph ( d)( 3) of this section and you meet the requirements of paragraph ( e) of this section. If you modify the non marine engine in any of the ways described in paragraph ( d)( 3) of this section, we will consider you a manufacturer of a new marine engine. Such engine modifications prevent you from using the provisions of this section. ( c) Liability. Engines for which you meet the requirements of this section are exempt from all the requirements and prohibitions of this part, except for those specified in this section. Engines exempted under this section must meet all the applicable requirements from 40 CFR parts 85 and 86 or 40 CFR part 89, 92, or 1039. This paragraph ( c) applies to engine manufacturers, boat builders who use such an engine, and all other persons as if the engine were used in its originally intended application. The prohibited acts of § 94.1103( a)( 1) apply to these new engines and vessels; however, we consider the certificate issued under 40 CFR part 86, 89, 92, or 1039 for each engine to also be a valid certificate of conformity under this part 94 for its model year. If we make a determination that these engines do not conform to the regulations during their useful life, we may require you to recall them under this part 94 or under 40 CFR part 85, 89, 92, or 1039. ( d) Specific requirements. If you are an engine manufacturer and meet all the following criteria and requirements regarding your new marine engine, the engine is eligible for an exemption under this section: ( 1) You must produce it by marinizing an engine covered by a valid certificate of conformity from one of the following programs: ( i) Heavy duty highway engines ( 40 CFR part 86). ( ii) Land based nonroad diesel engines ( 40 CFR part 89 or 1039). ( iii) Locomotive engines ( 40 CFR part 92). ( 2) The engine must have the label required under 40 CFR part 86, 89, 92, or 1039. ( 3) You must not make any changes to the certified engine that could reasonably be expected to increase its emissions. For example, if you make any of the following changes to one of these engines, you do not qualify for the engine dressing exemption: ( i) Change any fuel system parameters from the certified configuration, or change, remove, or fail to properly install any other component, element of design, or calibration specified in the engine manufacturer's application for certification. This includes aftertreatment devices and all related components. ( ii) Replacing an original turbocharger, except that small volume manufacturers of recreational engines may replace an original turbocharger with one that matches the performance of the original turbocharger. ( iii) Modify or design the marine engine cooling or aftercooling system so that temperatures or heat rejection rates are outside the original engine manufacturer's specified ranges. 76 ( 4) You must show that fewer than 50 percent of the engine family's total sales in the United States are used in marine applications. This includes engines used in any application, without regard to which company manufactures the vessel or equipment. Show this as follows: ( i) If you are the original manufacturer of the engine, base this showing on your sales information. ( ii) In all other cases, you must get the original manufacturer of the engine to confirm this based on its sales information. ( e) If you are an engine manufacturer or boat builder using this exemption, you must do all of the following: ( 1) Make sure the original engine label will remain clearly visible after installation in the vessel. ( 2) Add a permanent supplemental label to the engine in a position where it will remain clearly visible after installation in the vessel. In your engine label, do the following: ( i) Include the heading: " Marine Engine Emission Control Information". ( ii) Include your full corporate name and trademark. ( iii) State: " This engine was marinized without affecting its emission controls." ( iv) State the date you finished marinizing the engine ( month and year). ( 3) Send a signed letter to the Designated Officer by the end of each calendar year ( or less often if we tell you) with all the following information: ( i) Identify your full corporate name, address, and telephone number. ( ii) List the engine models for which you expect to use this exemption in the coming year and describe your basis for meeting the sales restrictions of paragraph ( d)( 4) of this section. ( iii) State: " We prepare each listed engine model for marine application without making any changes that could increase its certified emission levels, as described in 40 CFR 94.907." ( f) Engine inventories. In general you may use up your inventory of engines that are not certified to new marine emission standards if they were originally manufactured before the date of the new standards. However, stockpiling these engines is a violation of § 94.1103( a)( 1)( i)( A). ( g) Failure to comply. If your engines do not meet the criteria listed in paragraph ( d) of this section, they will be subject to the standards, requirements, and prohibitions of this part 94 and the certificate issued under 40 CFR part 86, 89, 92, or 1039 will not be deemed to also be a certificate issued under this part 94. Introducing these engines into commerce without a valid exemption or certificate of conformity under this part violates the prohibitions in 40 CFR 94.1103( a)( 1). ( h) Data submission. ( 1) If you are the original manufacturer and marinizer of an exempted engine, you must send us emission test data on the appropriate marine duty cycles. You can include the data in your application for certification or in the letter described in paragraph ( e)( 3) of this section. ( 2) If you are the original manufacturer of an exempted engine that is marinized by a post manufacture marinizer, you may be required to send us emission test data on the appropriate marine duty cycles. If such data are requested you will be allowed a reasonable amount of time to collect the data. ( i) Participation in averaging, banking and trading. Engines adapted for marine use under this 77 section may not generate or use emission credits under this part 94. These engines may generate credits under the ABT provisions in 40 CFR part 86, 89, 92, or 1039, as applicable. These engines must use emission credits under 40 CFR part 86, 89, 92, or 1039 as applicable if they are certified to an FEL that exceeds an applicable standard. ( j) Operator requirements. The requirements for vessel manufacturers, owners, and operators in subpart K of this part apply to these engines whether they are certified under this part 94 or another part as allowed by this section.

185. A new § 94.912 is added to subpart J to read as follows: § 94.912 Optional certification to land based standards for auxiliary marine engines. This section applies to auxiliary marine engines that are identical to certified land based engines. See § 94.907 for provisions that apply to propulsion marine engines or auxiliary marine engines that are modified for marine applications. ( a) General provisions. If you are an engine manufacturer, this section allows you to introduce new marine engines into commerce if they are already certified to the requirements that apply to compression ignition engines under 40 CFR part 89 or 1039 for the appropriate model year. If you comply with all the provisions of this section, we consider the certificate issued under 40 CFR part 86 or 1039 for each engine to also be a valid certificate of conformity under this part 94 for its model year, without a separate application for certification under the requirements of this part 94. ( b) Boat builder provisions. If you are not an engine manufacturer, you may install an engine certified for land based applications in a marine vessel as long as you meet all the qualifying criteria and requirements specified in paragraphs ( d) and ( e) of this section. If you modify the non marine engine, we will consider you a manufacturer of a new marine engine. Such engine modifications prevent you from using the provisions of this section. ( c) Liability. Engines for which you meet the requirements of this section are exempt from all the requirements and prohibitions of this part, except for those specified in this section. Engines exempted under this section must meet all the applicable requirements from 40 CFR part 89 or 1039. This paragraph ( c) applies to engine manufacturers, boat builders who use such an engine, and all other persons as if the engine were used in its originally intended application. The prohibited acts of § 94.1103( a)( 1) apply to these new engines and vessels; however, we consider the certificate issued under 40 CFR part 89 or 1039 for each engine to also be a valid certificate of conformity under this part 94 for its model year. If we make a determination that these engines do not conform to the regulations during their useful life, we may require you to recall them under this part 94 or under 40 CFR part 89 or 1068. ( d) Qualifying criteria. If you are an engine manufacturer and meet all the following criteria and requirements regarding your new marine engine, the engine is eligible for an exemption under this section: ( 1) The marine engine must be identical in all material respects to a land based engine covered by a valid certificate of conformity for the appropriate model year showing that it meets emission standards for engines of that power rating under 40 CFR part 89 or 1039. ( 2) The engines may not be used as propulsion marine engines. ( 3) You must show that the number of auxiliary marine engines from the engine family must be smaller than the number of land based engines from the engine family sold in the 78 United States, as follows: ( i) If you are the original manufacturer of the engine, base this showing on your sales information. ( ii) In all other cases, you must get the original manufacturer of the engine to confirm this based on its sales information. ( e) Specific requirements. If you are an engine manufacturer or boat builder using this exemption, you must do all of the following: ( 1) Make sure the original engine label will remain clearly visible after installation in the vessel. This label or a supplemental label must identify that the original certification is valid for marine auxiliary applications. ( 2) Send a signed letter to the Designated Officer by the end of each calendar year ( or less often if we tell you) with all the following information: ( i) Identify your full corporate name, address, and telephone number. ( ii) List the engine models you expect to produce under this exemption in the coming year. ( iii) State: " We produce each listed engine model for marine application without making any changes that could increase its certified emission levels, as described in 40 CFR 94.907." ( 3) If you are the certificate holder, you must describe in your application for certification how you plan to produce engines for both land based and auxiliary marine applications, including projected sales of auxiliary marine engines to the extent this can be determined. If the projected marine sales are substantial, we may ask for the year end report of production volumes to include actual auxiliary marine engine sales. ( f) Failure to comply. If your engines do not meet the criteria listed in paragraph ( d) of this section, they will be subject to the standards, requirements, and prohibitions of this part 94 and the certificate issued under 40 CFR part 89 or 1039 will not be deemed to also be a certificate issued under this part 94. Introducing these engines into commerce without a valid exemption or certificate of conformity under this part violates the prohibitions in 40 CFR 94.1103( a)( 1). ( g) Participation in averaging, banking and trading. Engines using this exemption may not generate or use emission credits under this part 94. These engines may generate credits under the ABT provisions in 40 CFR part 89 or 1039, as applicable. These engines must use emission credits under 40 CFR part 89 or 1039 as applicable if they are certified to an FEL that exceeds an applicable standard. ( h) Operator requirements. The requirements for vessel manufacturers, owners, and operators in subpart K of this part apply to these engines whether they are certified under this part 94 or another part as allowed by this section.

186. A new § 94.913 is added to subpart J to read as follows: § 94.913 Staged assembly exemption. You may ask us to provide a temporary exemption to allow you to complete production of your engines at different facilities, as long as you maintain control of the engines until they are in their certified configuration. We may require you to take specific steps to ensure that such engines are in their certified configuration before reaching the ultimate purchaser. You may request an exemption under this section in your application for certification, or in a separate submission to 79 the Designated Officer.

187. Section 94.1004 is amended by revising paragraphs ( b) and ( c) introductory text to read as follows: § 94.1004 Maintenance, repair, adjustment, and recordkeeping. * * * * * ( b) Unless otherwise approved by the Administrator, all maintenance, repair, adjustment, and alteration of Category 3 engines subject to the provisions of this part performed by any owner, operator or other maintenance provider that is not covered by paragraph ( a) of this section shall be performed, using good engineering judgment, in such a manner that the engine continues ( after the maintenance, repair, adjustment or alteration) to meet the emission standards it was certified as meeting prior to the need for service. Adjustments are limited to the range specified by the engine manufacturer in the approved application for certification. ( c) A Category 3 engine may not be adjusted or altered contrary to the requirements of § 94.11 or paragraph ( b) of this section, except as allowed by § 94.1103( b)( 2). If such an adjustment or alteration occurs, the engine must be returned to a configuration allowed by this part within two hours of operation. Each two hour period during which there is noncompliance is a separate violation. The following provisions apply to adjustments or alterations made under § 94.1103( b)( 2): * * * * *

188. Section 94.1103 is amended by revising paragraph ( b)( 3) and adding paragraphs ( a)( 8) and ( b)( 4) to read as follows: § 94.1103 Prohibited acts. ( a) The following acts and the causing thereof are prohibited: * * * ( 8) For an owner or operator of a vessel installing a replacement engine under the provisions of paragraph ( b)( 4) of this section to make modifications to significantly increase the value of the vessel within six months after installing the replacement engine. ( b) * * * ( 3) Where the Administrator determines that no engine that is certified to the requirements of this part is produced by any manufacturer with the appropriate physical or performance characteristics to repower a vessel, the Administrator may allow an engine manufacturer to introduce into commerce a replacement engine without complying with all of the otherwise applicable requirements of this part. Such engine shall not be subject to the prohibitions of paragraph ( a)( 1) of this section, subject to all the following provisions: ( i) The engine requiring replacement is not certified or is certified to emission standards that are less stringent than those in effect when the replacement engine is built. ( ii) The engine manufacturer or its agent takes ownership and possession of the engine being replaced or confirms that the engine has been destroyed. ( iii) If the engine being replaced was not certified to any emission standards under this part, the replacement engine must have a permanent label with your corporate name and trademark and the following language, or similar alternate language 80 approved by the Administrator: THIS ENGINE DOES NOT COMPLY WITH U. S. EPA MARINE EMISSION REQUIREMENTS. SELLING OR INSTALLING THIS ENGINE FOR ANY PURPOSE OTHER THAN TO REPLACE A MARINE ENGINE BUILT BEFORE JANUARY 1, [ Insert appropriate year reflecting when the earliest tier of standards began to apply to engines of that size and type] MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY. ( iv) If the engine being replaced was certified to emission standards less stringent than those in effect when you produce the replacement engine, the replacement engine must have a permanent label with your corporate name and trademark and the following language, or similar alternate language approved by the Administrator: THIS ENGINE COMPLIES WITH U. S. EPA MARINE EMISSION REQUIREMENTS FOR [ Insert appropriate year reflecting when the Tier 1 or Tier 2 standards for the replaced engine began to apply] ENGINES UNDER 40 CFR 94.1103( b)( 3). SELLING OR INSTALLING THIS ENGINE FOR ANY PURPOSE OTHER THAN TO REPLACE A MARINE ENGINE BUILT BEFORE JANUARY 1, [ Insert appropriate year reflecting when the next tier of emission standards began to apply] MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY. ( v) Where the replacement engine is intended to replace an engine that is certified to emission standards that are less stringent than those in effect when the replacement engine is built, the replacement engine shall be identical in all material respects to a certified configuration of the same or later model year as the engine being replaced. ( vi) Engines sold pursuant to the provisions of this paragraph will neither generate nor use emission credits and will not be part of any accounting under the averaging, banking and trading program. ( vii) In cases where an engine is to be imported for replacement purposes under the provisions of this paragraph ( b)( 3) of this section, the term " engine manufacturer" shall not apply to an individual or other entity that does not possess a current Certificate of Conformity issued by EPA under this part; and ( viii) The provisions of this section may not be used to circumvent emission standards that apply to new engines under this part. ( 4) An engine manufacturer may make the determination related to replacement engines described in paragraph ( b)( 3) of this section instead of the Administrator, if the new engine is needed to replace an engine that has experienced catastrophic failure. The engine manufacturer must consider whether certified engines are available from its own product lineup or that of the manufacturer of the engine being replaced ( if different). The engine manufacturer must keep records explaining why a certified engine was not available and make these records available upon request. 81 189. Section 94.1106 is amended by revising the introductory text and paragraphs ( a)( 1), ( a)( 2 ), ( c)( 1), and ( d) to read as follows: § 94.1106 Penalties. This section specifies actions that are prohibited and the maximum civil penalties that we can assess for each violation. The maximum penalty values listed in paragraphs ( a) and ( c) of this section are shown for calendar year 2004. As described in paragraph ( d) of this section, maximum penalty limits for later years are set forth in 40 CFR part 19. ( a) * * * ( 1) A person who violates § 94.1103( a)( 1), ( a)( 4), ( a)( 5), ( a)( 6), or ( a)( 7)( iv) or a manufacturer or dealer who violates § 94.1103( a)( 3)( i) or ( iii) or § 94.1103( a)( 7) is subject to a civil penalty of not more than $ 32,500 for each violation. ( 2) A person other than a manufacturer or dealer who violates § 94.1103( a)( 3) ( i) or ( iii) or § 94.1103( a)( 7) ( i), ( ii), or ( iii) or any person who violates § 94.1103( a)( 3)( ii) is subject to a civil penalty of not more than $ 2,750 for each violation. * * * * * ( c) * * * ( 1) Administrative penalty authority. Subject to 42 U. S. C. 7524( c), in lieu of commencing a civil action under paragraph ( b) of this section, the Administrator may assess any civil penalty prescribed in paragraph ( a) of this section, except that the maximum amount of penalty sought against each violator in a penalty assessment proceeding shall not exceed $ 270,000, unless the Administrator and the Attorney General jointly determine that a matter involving a larger penalty amount is appropriate for administrative penalty assessment. Any such determination by the Administrator and the Attorney General is not subject to judicial review. Assessment of a civil penalty shall be by an order made on the record after opportunity for a hearing held in accordance with the procedures found at part 22 of this chapter. The Administrator may compromise, or remit, with or without conditions, any administrative penalty which may be imposed under this section. * * * * * ( d) The maximum penalty values listed in paragraphs ( a) and ( c) of this section are shown for calendar year 2004. Maximum penalty limits for later years may be adjusted based on the Consumer Price Index. The specific regulatory provisions for changing the maximum penalties, published in 40 CFR part 19, reference the applicable U. S. Code citation on which the prohibited action is based.

PART 1039   CONTROL OF EMISSIONS FROM NEW AND IN USE NONROAD COMPRESSION IGNITION ENGINES 190. The authority citation for part 1039 is revised to read as follows: Authority: 42 U. S. C. 7401  7671q.

191. Section 1039.1 is amended by revising paragraph ( c) to read as follows: § 1039.1 Does this part apply for my engines? * * * * * 82 ( c) The definition of nonroad engine in 40 CFR 1068.30 excludes certain engines used in stationary applications. These engines are not required to comply with this part, except for the requirements in § 1039.20. In addition, if these engines are uncertified, the prohibitions in 40 CFR 1068.101 restrict their use as nonroad engines. * * * * *

192. Section 1039.5 is amended by revising paragraphs ( b)( 1)( iii) and ( b)( 2) to read as follows: § 1039.5 Which engines are excluded from this part's requirements? * * * * * ( b) Marine engines. ( 1) * * * ( iii) Engines that are exempt from the standards of 40 CFR part 94 pursuant to the provisions of 40 CFR part 94 ( except for the provisions of 40 CFR 94.907 or 94.912). For example, an engine that is exempt under 40 CFR 94.906 because it is a manufacturer owned engine is not subject to the provisions of this part 1039. * * * * * ( 2) Marine engines are subject to the provisions of this part 1039 if they are exempt from 40 CFR part 94 based on the engine dressing provisions of 40 CFR 94.907 or the common family provisions of 40 CFR 94.912. * * * * *

193. Section 1039.10 is amended by revising the introductory text to read as follows: § 1039.10 How is this part organized? The regulations in this part 1039 contain provisions that affect both engine manufacturers and others. However, the requirements of this part are generally addressed to the engine manufacturer. The term " you" generally means the engine manufacturer, as defined in § 1039.801. This part 1039 is divided into the following subparts: * * * * *

194. Section 1039.101 is amended by revising paragraph ( g)( 2) to read as follows: § 1039.101 What exhaust emission standards must my engines meet after the 2014 model year? * * * * * ( g) * * * ( 2) You may request in your application for certification that we approve a shorter useful life for an engine family. We may approve a shorter useful life, in hours of engine operation but not in years, if we determine that these engines will rarely operate longer than the shorter useful life. If engines identical to those in the engine family have already been produced and are in use, your demonstration must include documentation from such in use engines. In other cases, your demonstration must include an engineering analysis of information equivalent to such in use data, such as data from research engines or similar engine models that are already in production. Your demonstration must also include any 83 overhaul interval that you recommend, any mechanical warranty that you offer for the engine or its components, and any relevant customer design specifications. Your demonstration may include any other relevant information. The useful life value may not be shorter than any of the following: ( i) 1,000 hours of operation. ( ii) Your recommended overhaul interval. ( iii) Your mechanical warranty for the engine. * * * * *

195. Section 1039.104 is amended by revising paragraph ( a)( 4)( iii) to read as follows: § 1039.104 Are there interim provisions that apply only for a limited time? * * * * * ( a) * * * ( 4) * * * ( iii) All other offset using engines must meet the standards and other provisions that apply in model year 2011 for engines in the 19 130 kW power categories, in model year 2010 for engines in the 130 560 kW power category, or in model year 2014 for engines above 560 kW. Show that engines meet these emission standards by meeting all the requirements of § 1068.265. You must meet the labeling requirements in § 1039.135, but add the following statement instead of the compliance statement in § 1039.135( c)( 12): " THIS ENGINE MEETS U. S. EPA EMISSION STANDARDS UNDER 40 CFR 1039.104( a)." For power categories with a percentage phase in, these engines should be treated as phase in engines for purposes of determining compliance with phase in requirements. * * * * *

196. Section 1039.120 is amended by revising paragraph ( b) before the table to read as follows: § 1039.120 What emission related warranty requirements apply to me? * * * * * ( b) Warranty period. Your emission related warranty must be valid for at least as long as the minimum warranty periods listed in this paragraph ( b) in hours of operation and years, whichever comes first. You may offer an emission related warranty more generous than we require. The emission related warranty for the engine may not be shorter than any published warranty you offer without charge for the engine. Similarly, the emission related warranty for any component may not be shorter than any published warranty you offer without charge for that component. If an engine has no hour meter, we base the warranty periods in this paragraph ( b) only on the engine's age ( in years). The warranty period begins when the engine is placed into service. The minimum warranty periods are shown in the following table: * * * * *

197. Section 1039.125 is amended by revising paragraph ( g) introductory text to read as follows: § 1039.125 What maintenance instructions must I give to buyers? 84 * * * * * ( g) Payment for scheduled maintenance. Owners are responsible for properly maintaining their engines. This generally includes paying for scheduled maintenance. However, manufacturers must pay for scheduled maintenance during the useful life if it meets all the following criteria: * * * * *

198. Section 1039.130 is amended by revising paragraph ( b)( 3) to read as follows: § 1039.130 What installation instructions must I give to equipment manufacturers? * * * * * ( b) * * * ( 3) Describe the instructions needed to properly install the exhaust system and any other components. Include instructions consistent with the requirements of § 1039.205( u). * * * * *

199. Section 1039.225 is amended by revising the section heading and adding paragraphs ( a)( 3) and ( f) to read as follows: § 1039.225 How do I amend my application for certification to include new or modified engines or to change an FEL? * * * * * ( a) * * * ( 3) Modify an FEL for an engine family, as described in paragraph ( f) of this section. * * * * * ( f) You may ask to change your FEL in the following cases: ( 1) You may ask to raise your FEL after the start of production. You may not apply the higher FEL to engines you have already introduced into commerce. Use the appropriate FELs with corresponding sales volumes to calculate your average emission level, as described in subpart H of this part. In your request, you must demonstrate that you will still be able to comply with the applicable average emission standards as specified in subparts B and H of this part. ( 2) You may ask to lower the FEL for your engine family after the start of production only when you have test data from production engines indicating that your engines comply with the lower FEL. You may create a separate subfamily with the lower FEL. Otherwise, you must use the higher FEL for the family to calculate your average emission level under subpart H of this part. ( 3) If you change the FEL during production, you must include the new FEL on the emission control information label for all engines produced after the change.

200. Section 1039.240 is amended by revising paragraphs ( a) and ( b) to read as follows: § 1039.240 How do I demonstrate that my engine family complies with exhaust emission standards? ( a) For purposes of certification, your engine family is considered in compliance with the applicable numerical emission standards in § 1039.101( a) and ( b), § 1039.102( a) and ( b), 85 § 1039.104, and § 1039.105 if all emission data engines representing that family have test results showing deteriorated emission levels at or below these standards. ( Note: if you participate in the ABT program in subpart H of this part, your FELs are considered to be the applicable emission standards with which you must comply.) ( b) Your engine family is deemed not to comply if any emission data engine representing that family has test results showing a deteriorated emission level above an applicable FEL or emission standard from § 1039.101, § 1039.102, § 1039.104, or § 1039.105 for any pollutant. * * * * *

201. Section 1039.260 is removed.

202. Section 1039.501 is amended by revising paragraph ( a) to read as follows: § 1039.501 How do I run a valid emission test? ( a) Use the equipment and procedures for compression ignition engines in 40 CFR part 1065 to determine whether engines meet the duty cycle emission standards in § 1039.101( a) and ( b). Measure the emissions of all the pollutants we regulate in § 1039.101 as specified in 40 CFR part 1065. Use the applicable duty cycles specified in § § 1039.505 and 1039.510. * * * * *

203. Section 1039.510 is amended by removing paragraphs ( c) and ( d).

204. Section 1039.605 is amended by revising the section heading and adding paragraph ( g) to read as follows: § 1039.605 What provisions apply to engines certified under the motor vehicle program? * * * * * ( g) Participation in averaging, banking and trading. Engines adapted for nonroad use under this section may not generate or use emission credits under this part 1039. These engines may generate credits under the ABT provisions in 40 CFR part 86. These engines must use emission credits under 40 CFR part 86 if they are certified to an FEL that exceeds an applicable standard under 40 CFR part 86.

205. Section 1039.610 is amended by revising the section heading and adding paragraph ( g) to read as follows: § 1039.610 What provisions apply to vehicles certified under the motor vehicle program? * * * * * ( g) Participation in averaging, banking and trading. Vehicles adapted for nonroad use under this section may not generate or use emission credits under this part 1039. These vehicles may generate credits under the ABT provisions in 40 CFR part 86. These vehicles must be included in the calculation of the applicable fleet average in 40 CFR part 86. 86 206. Section 1039.625 is amended by revising the last entry in Table 1 and paragraph ( j) to read as follows: § 1039.625 What requirements apply under the program for equipment manufacturer flexibility? * * * * * ( a) * * * ( 1) * * *

Table 1 of § 1039.625   General availability of allowances Power Category Calendar Years * * * * * * *

kW > 560 2011  2017 * * * * * ( j) Provisions for engine manufacturers. As an engine manufacturer, you may produce exempted engines as needed under this section. You do not have to request this exemption for your engines, but you must have written assurance from equipment manufacturers that they need a certain number of exempted engines under this section. Send us an annual report of the engines you produce under this section, as described in § 1039.250( a). For engines produced under the provisions of paragraph ( a)( 2) of this section, you must certify the engines under this part 1039. For all other exempt engines, the engines must meet the emission standards in paragraph ( e) of this section and you must meet all the requirements of § 1068.265. If you show under § 1068.265( c) that the engines are identical in all material respects to engines that you have previously certified to one or more FELs above the standards specified in paragraph ( e) of this section, you must supply sufficient credits for these engines. Calculate these credits under subpart H of this part using the previously certified FELs and the alternate standards. You must meet the labeling requirements in 40 CFR 89.110, but add the following statement instead of the compliance statement in 40 CFR 89.110( b)( 10): THIS ENGINE MEETS U. S. EPA EMISSION STANDARDS UNDER 40 CFR 1039.625. SELLING OR INSTALLING THIS ENGINE FOR ANY PURPOSE OTHER THAN FOR THE EQUIPMENT FLEXIBILITY PROVISIONS OF 40 CFR 1039.625 MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY. * * * * *

207. Section 1039.655 is amended by revising paragraph ( a)( 3) to read as follows: § 1039.655 What special provisions apply to engines sold in Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands? ( a) * * * ( 3) You meet all the requirements of § 1068.265. * * * * * 87 208. Section 1039.740 amended by adding paragraph ( b)( 4) to read as follows: § 1039.740 What restrictions apply for using emission credits? * * * * * ( b) * * * ( 4) If the maximum power of an engine generating credits under the Tier 2 standards in 40 CFR part 89 is at or above 37 kW and below 75 kW, you may use those credits for certifying engines under the Option # 1 standards in § 1039.102. * * * * *

209. Section 1039.801 is amended by revising the definitions for Aftertreatment, Brake power, Constant speed operation, Exempted, Good engineering judgment, Marine engine, Marine vessel, Maximum test speed, Motor vehicle, Revoke, Suspend, United States, and Void and adding a definition for Amphibious vehicle to read as follows: § 1039.801 What definitions apply to this part? * * * * * Aftertreatment means relating to a catalytic converter, particulate filter, or any other system, component, or technology mounted downstream of the exhaust valve ( or exhaust port) whose design function is to decrease emissions in the engine exhaust before it is exhausted to the environment. Exhaust gas recirculation ( EGR) and turbochargers are not aftertreatment. * * * * * Amphibious vehicle means a vehicle with wheels or tracks that is designed primarily for operation on land and secondarily for operation in water. * * * * * Brake power means the usable power output of the engine, not including power required to fuel, lubricate, or heat the engine, circulate coolant to the engine, or to operate aftertreatment devices. * * * * * Constant speed operation means engine operation with a governor that controls the operator input to maintain an engine at a reference speed, even under changing load. For example, an isochronous governor changes reference speed temporarily during a load change, then returns the engine to its original reference speed after the engine stabilizes. Isochronous governors typically allow speed changes up to 1.0 %. Another example is a speed droop governor, which has a fixed reference speed at zero load and allows the reference speed to decrease as load increases. With speed droop governors, speed typically decreases ( 3 to 10) % below the reference speed at zero load, such that the minimum reference speed occurs near the engine's point of maximum power. * * * * * Exempted has the meaning we give in 40 CFR 1068.30. * * * * * Good engineering judgment has the meaning we give in 40 CFR 1068.30. See 40 CFR 1068.5 for the administrative process we use to evaluate good engineering judgment. * * * * * Marine engine means a nonroad engine that is installed or intended to be installed on a marine vessel. This includes a portable auxiliary marine engine only if its fueling, cooling, or 88 exhaust system is an integral part of the vessel. There are two kinds of marine engines: ( 1) Propulsion marine engine means a marine engine that moves a vessel through the water or directs the vessel's movement. ( 2) Auxiliary marine engine means a marine engine not used for propulsion. Marine vessel has the meaning given in 1 U. S. C. 3, except that it does not include amphibious vehicles. The definition in 1 U. S. C. 3 very broadly includes every craft capable of being used as a means of transportation on water. * * * * * Maximum test speed has the meaning we give in 40 CFR 1065.1001. * * * * * Motor vehicle has the meaning we give in 40 CFR 85.1703( a). * * * * * Revoke has the meaning we give in 40 CFR 1068.30. * * * * * Suspend has the meaning we give in 40 CFR 1068.30. * * * * * United States has the meaning we give in 40 CFR 1068.30. * * * * * Void has the meaning we give in 40 CFR 1068.30. * * * * *

210. Appendix VI to part 1039 is amended in the table by adding a footnote to read as follows: Appendix VI to Part 1039   Nonroad Compression ignition Composite Transient Cycle Time( s) Normalized speed ( percent) Normalized torque ( percent) 1 * * * * * * *

1 The percent torque is relative to maximum torque at the commanded engine speed..

PART 1048   CONTROL OF EMISSIONS FROM NEW, LARGE NONROAD SPARKIGNITION ENGINES 211. The authority citation for part 1048 is revised to read as follows: Authority: 42 U. S. C. 7401  7671q.

212. The heading for subpart A is revised to read as follows: Subpart A   Overview and Applicability 213. Section 1048.1 is revised to read as follows: § 1048.1 Does this part apply to me? ( a) The regulations in this part 1048 apply for all new, spark ignition nonroad engines ( defined in § 1048.801) with maximum engine power above 19 kW, except as provided in § 1048.5. 89 ( b) This part 1048 applies for engines built on or after January 1, 2004. You need not follow this part for engines you produce before January 1, 2004. See § § 1048.101 through 1048.115, § 1048.145, and the definition of model year in § 1048.801 for more information about the timing of new requirements. ( c) The definition of nonroad engine in 40 CFR 1068.30 excludes certain engines used in stationary applications. These engines are not required to comply with this part, except for the requirements in § 1048.20. In addition, if these engines are uncertified, the prohibitions in 40 CFR 1068.101 restrict their use as nonroad engines. ( d) In certain cases, the regulations in this part 1048 apply to engines with maximum engine power at or below 19 kW that would otherwise be covered by 40 CFR part 90. See 40 CFR 90.913 for provisions related to this allowance.

214. Section 1048.5 is revised to read as follows: § 1048.5 Which engines are excluded from this part's requirements? This part does not apply to the following nonroad engines: ( a) Engines that are certified to meet the requirements of 40 CFR part 1051, or are otherwise subject to 40 CFR part 1051 ( for example, engines used in snowmobiles and all terrain vehicles). ( b) Propulsion marine engines. See 40 CFR part 91. This part applies with respect to auxiliary marine engines.

215. Section 1048.10 is revised to read as follows: § 1048.10 How is this part organized? The regulations in this part 1048 contain provisions that affect both engine manufacturers and others. However, the requirements of this part are generally addressed to the engine manufacturer. The term " you" generally means the engine manufacturer, as defined in § 1048.801. This part 1048 is divided into the following subparts: ( a) Subpart A of this part defines the applicability of part 1048 and gives an overview of regulatory requirements. ( b) Subpart B of this part describes the emission standards and other requirements that must be met to certify engines under this part. Note that § 1048.145 discusses certain interim requirements and compliance provisions that apply only for a limited time. ( c) Subpart C of this part describes how to apply for a certificate of conformity. ( d) Subpart D of this part describes general provisions for testing production line engines. ( e) Subpart E of this part describes general provisions for testing in use engines. ( f) Subpart F of this part describes how to test your engines ( including references to other parts of the Code of Federal Regulations). ( g) Subpart G of this part and 40 CFR part 1068 describe requirements, prohibitions, and other provisions that apply to engine manufacturers, equipment manufacturers, owners, operators, rebuilders, and all others. ( h) [ Reserved] ( i) Subpart I of this part contains definitions and other reference information. 90 216. Section 1048.15 is revised to read as follows: § 1048.15 Do any other regulation parts affect me? ( a) Part 1065 of this chapter describes procedures and equipment specifications for testing engines. Subpart F of this part 1048 describes how to apply the provisions of part 1065 of this chapter to determine whether engines meet the emission standards in this part. ( b) The requirements and prohibitions of part 1068 of this chapter apply to everyone, including anyone who manufactures, imports, installs, owns, operates, or rebuilds any of the engines subject to this part 1048, or equipment containing these engines. Part 1068 of this chapter describes general provisions, including these seven areas: ( 1) Prohibited acts and penalties for engine manufacturers, equipment manufacturers, and others. ( 2) Rebuilding and other aftermarket changes. ( 3) Exclusions and exemptions for certain engines. ( 4) Importing engines. ( 5) Selective enforcement audits of your production. ( 6) Defect reporting and recall. ( 7) Procedures for hearings. ( c) Other parts of this chapter apply if referenced in this part.

217. Section 1048.20 is revised to read as follows: § 1048.20 What requirements from this part apply to excluded stationary engines? ( a) You must add a permanent label or tag to each new engine you produce or import that is excluded under § 1048.1( c) as a stationary engine. To meet labeling requirements, you must do the following things: ( 1) Attach the label or tag in one piece so no one can remove it without destroying or defacing it. ( 2) Secure it to a part of the engine needed for normal operation and not normally requiring replacement. ( 3) Make sure it is durable and readable for the engine's entire life. ( 4) Write it in English. ( 5) Follow the requirements in § 1048.135( g) regarding duplicate labels if the engine label is obscured in the final installation. ( b) Engine labels or tags required under this section must have the following information: ( 1) Include the heading " EMISSION CONTROL INFORMATION". ( 2) Include your full corporate name and trademark. You may instead include the full corporate name and trademark of another company you choose to designate. ( 3) State the engine displacement ( in liters) and maximum engine power. ( 4) State: " THIS ENGINE IS EXCLUDED FROM THE REQUIREMENTS OF 40 CFR PART 1048 AS A " STATIONARY ENGINE." INSTALLING OR USING THIS ENGINE IN ANY OTHER APPLICATION MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.".

218. Section 1048.101 is amended by revising the introductory text and paragraphs ( a), ( b), ( c), 91 ( e), ( g), and ( h) to read as follows: § 1048.101 What exhaust emission standards must my engines meet? The exhaust emission standards of this section apply by model year. You may certify engines earlier than we require. The Tier 1 standards apply only to steady state testing, as described in paragraph ( b) of this section. The Tier 2 standards apply to steady state, transient, and field testing, as described in paragraphs ( a), ( b), and ( c) of this section. ( a) Emission standards for transient testing. Starting in the 2007 model year, transient exhaust emissions from your engines may not exceed the Tier 2 emission standards, as follows: ( 1) Measure emissions using the applicable transient test procedures described in subpart F of this part. ( 2) The Tier 2 HC+ NOx standard is 2.7 g/ kW hr and the Tier 2 CO standard is 4.4 g/ kWhr For severe duty engines, the Tier 2 HC+ NOx standard is 2.7 g/ kW hr and the Tier 2 CO standard is 130.0 g/ kW hr. The following engines are not subject to the transient standards in this paragraph ( a): ( i) High load engines. ( ii) Engines with maximum engine power above 560 kW. ( iii) Engines with maximum test speed above 3400 rpm. ( 3) You may optionally certify your engines according to the following formula instead of the standards in paragraph ( a)( 1) of this section: ( HC+ NOx) × CO0.784< 8.57. The HC+ NOx and CO emission levels you select to satisfy this formula, rounded to the nearest 0.1 g/ kW hr, become the emission standards that apply for those engines. You may not select an HC+ NOx emission standard higher than 2.7 g/ kW hr or a CO emission standard higher than 20.6 g/ kW hr. The following table illustrates a range of possible values under this paragraph ( a)( 3):

Table 1 of § 1048.101   Examples of Possible Tier 2 Duty cycle Emission Standards HC+ NOx ( g/ kW hr) CO ( g/ kW hr)

2.7 4.4 2.2 5.6 1.7 7.9 1.3 11.1 1.0 15.5 0.8 20.6 ( b) Standards for steady state testing. Except as we allow in paragraph ( d) of this section, steadystate exhaust emissions from your engines may not exceed emission standards, as follows: ( 1) Measure emissions using the applicable steady state test procedures described in subpart F of this part: ( 2) The following table shows the Tier 1 exhaust emission standards that apply to engines 92 from 2004 through 2006 model years:

Table 2 of § 1048.101   Tier 1 Emission Standards ( g/ kW hr)

Testing General emission standards Alternate emission standards for severe duty engines HC+ NOx CO HC+ NOx CO Certification and production line testing 4.0 50.0 4.0 130.0 In use testing 5.4 50.0 5.4 130.0 ( 3) Starting in the 2007 model year, steady state exhaust emissions from your engines may not exceed the numerical emission standards in paragraph ( a) of this section. See paragraph ( d) of this section for alternate standards that apply for certain engines. ( c) Standards for field testing. Starting in 2007, exhaust emissions may not exceed field testing standards, as follows: ( 1) Measure emissions using the field testing procedures in subpart F of this part: ( 2) The HC+ NOx standard is 3.8 g/ kW hr and the CO standard is 6.5 g/ kW hr. For severe duty engines, the HC+ NOx standard is 3.8 g/ kW hr and the CO standard is 200.0 g/ kW hr. For natural gas fueled engines, you are not required to measure nonmethane hydrocarbon emissions or total hydrocarbon emissions for testing to show that the engine meets the emission standards of this paragraph ( c); that is, you may assume HC emissions are equal to zero. ( 3) You may apply the following formula to determine alternate emission standards that apply to your engines instead of the standards in paragraph ( c)( 1) of this section: ( HC+ NOx) × CO0.791 < 16.78. HC+ NOx emission levels may not exceed 3.8 g/ kW hr and CO emission levels may not exceed 31.0 g/ kW hr. The following table illustrates a range of possible values under this paragraph ( c)( 2): 93 Table 3 of § 1048.101   Examples of Possible Tier 2 Field testing Emission Standards HC+ NOx ( g/ kW hr) CO ( g/ kW hr)

3.8 6.5 3.1 8.5 2.4 11.7 1.8 16.8 1.4 23.1 1.1 31.0 * * * * * ( e) Fuel types. The exhaust emission standards in this section apply for engines using each type of fuel specified in 40 CFR part 1065, subpart H, on which the engines in the engine family are designed to operate, except for engines certified under § 1048.625. For engines certified under § 1048.625, the standards of this section apply to emissions measured using the specified test fuel. You must meet the numerical emission standards for hydrocarbons in this section based on the following types of hydrocarbon emissions for engines powered by the following fuels: ( 1) Gasoline and LPG fueled engines: THC emissions. ( 2) Natural gas fueled engines: NMHC emissions. ( 3) Alcohol fueled engines: THCE emissions. * * * * * ( g) Useful life. Your engines must meet the exhaust emission standards in paragraphs ( a) through ( c) of this section over their full useful life. For severe duty engines, the minimum useful life is 1,500 hours of operation or seven years, whichever comes first. For all other engines, the minimum useful life is 5,000 hours of operation or seven years, whichever comes first. ( 1) Specify a longer useful life in hours for an engine family under either of two conditions: ( i) If you design, advertise, or market your engine to operate longer than the minimum useful life ( your recommended hours until rebuild may indicate a longer design life). ( ii) If your basic mechanical warranty is longer than the minimum useful life. ( 2) You may request in your application for certification that we approve a shorter useful life for an engine family. We may approve a shorter useful life, in hours of engine operation but not in years, if we determine that these engines will rarely operate longer than the shorter useful life. If engines identical to those in the engine family have already been produced and are in use, your demonstration must include documentation from such in use engines. In other cases, your demonstration must include an engineering analysis of information equivalent to such in use data, such as data from research engines or similar engine models that are already in production. Your demonstration must also include any 94 overhaul interval that you recommend, any mechanical warranty that you offer for the engine or its components, and any relevant customer design specifications. Your demonstration may include any other relevant information. The useful life value may not be shorter than any of the following: ( i) 1,000 hours of operation. ( ii) Your recommended overhaul interval. ( iii) Your mechanical warranty for the engine. ( h) Applicability for testing. The emission standards in this subpart apply to all testing, including certification, production line, and in use testing. For production line testing, you must perform duty cycle testing as specified in § § 1048.505 and 1048.510. The field testing standards of this section apply for those tests. You need not do additional testing of production line engines to show that your engines meet the field testing standards.

219. Section 1048.105 is amended by revising the section heading and adding introductory text to read as follows: § 1048.105 What evaporative emission standards and requirements apply? The requirements of this section apply to all engines that are subject to this part, except auxiliary marine engines. * * * * *

220. Section 1048.115 is amended by removing and reserving paragraph ( d) and revising the introductory text and paragraphs ( a), ( b), ( e), and ( g) to read as follows: § 1048.115 What other requirements must my engines meet? Engines subject to this part must meet the following requirements: ( a) Crankcase emissions. Crankcase emissions may not be discharged directly into the ambient atmosphere from any engine throughout its useful life, except as follows: ( 1) Engines may discharge crankcase emissions to the ambient atmosphere if the emissions are added to the exhaust emissions ( either physically or mathematically) during all emission testing. If you take advantage of this exception, you must do the following things: ( i) Manufacture the engines so that all crankcase emissions can be routed into the applicable sampling systems specified in 40 CFR part 1065. ( ii) Account for deterioration in crankcase emissions when determining exhaust deterioration factors. ( 2) For purposes of this paragraph ( a), crankcase emissions that are routed to the exhaust upstream of exhaust aftertreatment during all operation are not considered to be discharged directly into the ambient atmosphere. ( b) Torque broadcasting. Electronically controlled engines must broadcast their speed and output shaft torque ( in newton meters). Engines may alternatively broadcast a surrogate value for determining torque. Engines must broadcast engine parameters such that they can be read with a remote device, or broadcast them directly to their controller area networks. This information is necessary for testing engines in the field ( see § 1048.515). This requirement applies beginning in the 2007 model year. Small volume engine manufacturers may omit this requirement. 95 * * * * * ( e) Adjustable parameters. Engines that have adjustable parameters must meet all the requirements of this part for any adjustment in the physically adjustable range. An operating parameter is not considered adjustable if you permanently seal it or if it is not normally accessible using ordinary tools. We may require that you set adjustable parameters to any specification within the adjustable range during any testing, including certification testing, selective enforcement auditing, or in use testing. * * * * * ( g) Defeat devices. You may not equip your engines with a defeat device. A defeat device is an auxiliary emission control device that reduces the effectiveness of emission controls under conditions that the engine may reasonably be expected to encounter during normal operation and use. This does not apply to auxiliary emission control devices you identify in your certification application if any of the following is true: ( 1) The conditions of concern were substantially included in the applicable test procedures described in subpart F of this part. ( 2) You show your design is necessary to prevent engine ( or equipment) damage or accidents. ( 3) The reduced effectiveness applies only to starting the engine.

221. Section 1048.120 is revised to read as follows: § 1048.120 What emission related warranty requirements apply to me? ( a) General requirements. You must warrant to the ultimate purchaser and each subsequent purchaser that the new nonroad engine, including all parts of its emission control system, meets two conditions: ( 1) It is designed, built, and equipped so it conforms at the time of sale to the ultimate purchaser with the requirements of this part. ( 2) It is free from defects in materials and workmanship that may keep it from meeting these requirements. ( b) Warranty period. Your emission related warranty must be valid for at least 50 percent of the engine's useful life in hours of operation or at least three years, whichever comes first. In the case of a high cost warranted part, the warranty must be valid for at least 70 percent of the engine's useful life in hours of operation or at least five years, whichever comes first. You may offer an emission related warranty more generous than we require. The emission related warranty for the engine may not be shorter than any published warranty you offer without charge for the engine. Similarly, the emission related warranty for any component may not be shorter than any published warranty you offer without charge for that component. If an engine has no hour meter, we base the warranty periods in this paragraph ( b) only on the engine's age ( in years). The warranty period begins when the engine is placed into service. ( c) Components covered. The emission related warranty covers all components whose failure would increase an engine's emissions of any pollutant. This includes components listed in 40 CFR part 1068, Appendix I, and components from any other system you develop to control emissions. The emission related warranty covers these components even if another company produces the component. Your emission related warranty does not cover components whose failure would not increase an engine's emissions of any pollutant. 96 ( d) Limited applicability. You may deny warranty claims under this section if the operator caused the problem through improper maintenance or use, as described in 40 CFR 1068.115. ( e) Owners manual. Describe in the owners manual the emission related warranty provisions from this section that apply to the engine.

222. Section 1048.125 is revised to read as follows: § 1048.125 What maintenance instructions must I give to buyers? Give the ultimate purchaser of each new nonroad engine written instructions for properly maintaining and using the engine, including the emission control system. The maintenance instructions also apply to service accumulation on your emission data engines, as described in 40 CFR part 1065. ( a) Critical emission related maintenance. Critical emission related maintenance includes any adjustment, cleaning, repair, or replacement of critical emission related components. This may also include additional emission related maintenance that you determine is critical if we approve it in advance. You may schedule critical emission related maintenance on these components if you meet the following conditions: ( 1) You demonstrate that the maintenance is reasonably likely to be done at the recommended intervals on in use engines. We will accept scheduled maintenance as reasonably likely to occur if you satisfy any of the following conditions: ( i) You present data showing that, if a lack of maintenance increases emissions, it also unacceptably degrades the engine's performance. ( ii) You present survey data showing that at least 80 percent of engines in the field get the maintenance you specify at the recommended intervals. ( iii) You provide the maintenance free of charge and clearly say so in maintenance instructions for the customer. ( iv) You otherwise show us that the maintenance is reasonably likely to be done at the recommended intervals. ( 2) You may not schedule critical emission related maintenance more frequently than the following minimum intervals, except as specified in paragraphs ( a)( 3), ( b) and ( c) of this section: ( i) For catalysts, fuel injectors, electronic control units, superchargers, and turbochargers: the useful life of the engine family. ( ii) For gaseous fuel system components ( cleaning without disassembly only) and oxygen sensors: 2,500 hours. ( 3) If your engine family has an alternate useful life under § 1048.101( g) that is shorter than the period specified in paragraph ( a)( 2)( ii) of this section, you may not schedule critical emission related maintenance more frequently than the alternate useful life, except as specified in paragraph ( c) of this section. ( b) Recommended additional maintenance. You may recommend any additional amount of maintenance on the components listed in paragraph ( a) of this section, as long as you state clearly that these maintenance steps are not necessary to keep the emission related warranty valid. If operators do the maintenance specified in paragraph ( a) of this section, but not the recommended additional maintenance, this does not allow you to disqualify those engines from in use testing or deny a warranty claim. Do not take these maintenance steps during service accumulation on your 97 emission data engines. ( c) Special maintenance. You may specify more frequent maintenance to address problems related to special situations, such as substandard fuel or atypical engine operation. For example, you may specify more frequent cleaning of fuel system components for engines you have reason to believe will be using fuel that causes substantially more engine performance problems than commercial fuels of the same type that are generally available across the United States. You must clearly state that this additional maintenance is associated with the special situation you are addressing. ( d) Noncritical emission related maintenance. You may schedule any amount of emission related inspection or maintenance that is not covered by paragraph ( a) of this section, as long as you state in the owners manual that these steps are not necessary to keep the emission related warranty valid. If operators fail to do this maintenance, this does not allow you to disqualify those engines from in use testing or deny a warranty claim. Do not take these inspection or maintenance steps during service accumulation on your emission data engines. ( e) Maintenance that is not emission related. For maintenance unrelated to emission controls, you may schedule any amount of inspection or maintenance. You may also take these inspection or maintenance steps during service accumulation on your emission data engines, as long as they are reasonable and technologically necessary. This might include adding engine oil, changing air, fuel, or oil filters, servicing engine cooling systems, and adjusting idle speed, governor, engine bolt torque, valve lash, or injector lash. You may perform this nonemission related maintenance on emission data engines at the least frequent intervals that you recommend to the ultimate purchaser ( but not the intervals recommended for severe service). ( f) Source of parts and repairs. State clearly on the first page of your written maintenance instructions that a repair shop or person of the owner's choosing may maintain, replace, or repair emission control devices and systems. Your instructions may not require components or service identified by brand, trade, or corporate name. Also, do not directly or indirectly condition your warranty on a requirement that the engine be serviced by your franchised dealers or any other service establishments with which you have a commercial relationship. You may disregard the requirements in this paragraph ( f) if you do one of two things: ( 1) Provide a component or service without charge under the purchase agreement. ( 2) Get us to waive this prohibition in the public's interest by convincing us the engine will work properly only with the identified component or service. ( g) Payment for scheduled maintenance. Owners are responsible for properly maintaining their engines. This generally includes paying for scheduled maintenance. However, manufacturers must pay for scheduled maintenance during the useful life if it meets all the following criteria: ( 1) Each affected component was not in general use on similar engines before January 1, 2004. ( 2) The primary function of each affected component is to reduce emissions. ( 3) The cost of the scheduled maintenance is more than 2 percent of the price of the engine. ( 4) Failure to perform the maintenance would not cause clear problems that would significantly degrade the engine's performance. ( h) Owners manual. Explain the owner's responsibility for proper maintenance in the owners manual. 98 223. Section 1048.130 is amended by revising paragraphs ( a), ( b)( 3), ( b)( 7), and ( b)( 8); and adding paragraph ( d) to read as follows: § 1048.130 What installation instructions must I give to equipment manufacturers? ( a) If you sell an engine for someone else to install in a piece of nonroad equipment, give the engine installer instructions for installing it consistent with the requirements of this part. Include all information necessary to ensure that an engine will be installed in its certified configuration. ( b) * * * ( 3) Describe the instructions needed to properly install the exhaust system and any other components. Include instructions consistent with the requirements of § 1048.205( v). * * * * * ( 7) Describe any other instructions to make sure the installed engine will operate according to design specifications in your application for certification. This may include, for example, instructions for installing aftertreatment devices when installing the engines. ( 8) State: " If you install the engine in a way that makes the engine's emission control information label hard to read during normal engine maintenance, you must place a duplicate label on the equipment, as described in 40 CFR 1068.105.". * * * * * ( d) Provide instructions in writing or in an equivalent format. For example, you may post instructions on a publicly available website for downloading or printing. If you do not provide the instructions in writing, explain in your application for certification how you will ensure that each installer is informed of the installation requirements.

224. Section 1048.135 is revised to read as follows: § 1048.135 How must I label and identify the engines I produce? ( a) Assign each engine a unique identification number and permanently affix, engrave, or stamp it on the engine in a legible way. ( b) At the time of manufacture, affix a permanent and legible label identifying each engine. The label must be   ( 1) Attached in one piece so it is not removable without being destroyed or defaced. ( 2) Secured to a part of the engine needed for normal operation and not normally requiring replacement. ( 3) Durable and readable for the engine's entire life. ( 4) Written in English. ( c) The label must   ( 1) Include the heading " EMISSION CONTROL INFORMATION". ( 2) Include your full corporate name and trademark. You may identify another company and use its trademark instead of yours if you comply with the provisions of § 1048.635. ( 3) Include EPA's standardized designation for the engine family ( and subfamily, where applicable). ( 4) State the engine's displacement ( in liters); however, you may omit this from the label if all the engines in the engine family have the same per cylinder displacement and total displacement. ( 5) State the date of manufacture [ MONTH and YEAR]. You may omit this from the label if you keep a record of the engine manufacture dates and provide it to us upon 99 request. ( 6) Identify the emission control system. Use terms and abbreviations consistent with SAE J1930 ( incorporated by reference in § 1048.810). You may omit this information from the label if there is not enough room for it and you put it in the owners manual instead. ( 7) State: " THIS ENGINE IS CERTIFIED TO OPERATE ON [ specify operating fuel or fuels].". ( 8) Identify any requirements for fuel and lubricants. You may omit this information from the label if there is not enough room for it and you put it in the owners manual instead. ( 9) List specifications and adjustments for engine tuneups; show the proper position for the transmission during tuneup and state which accessories should be operating. You may omit this information from the label if there is not enough room for it and you put it in the owners manual instead. ( 10) State the useful life for your engine family if it has a longer useful life under § 1048.101( g)( 1) or a shortened useful life under § 1048.101( g)( 2). ( 11) Identify the emission standards to which you have certified the engine. ( 12) State: " THIS ENGINE COMPLIES WITH U. S. EPA REGULATIONS FOR [ MODEL YEAR] LARGE NONROAD SI ENGINES.". ( 13) If your engines are certified only for constant speed operation, state: " USE IN CONSTANT SPEED APPLICATIONS ONLY". ( 14) If your engines are certified only for variable speed operation, state: " USE IN VARIABLE SPEED APPLICATIONS ONLY". ( 15) If your engines are certified only for high load engines, state: " THIS ENGINE IS NOT INTENDED FOR OPERATION AT LESS THAN 75 PERCENT OF FULL LOAD.". ( 16) If you certify your engines under § 1048.101( d) ( and show in your application for certification that in use engines will experience infrequent high load operation), state: " THIS ENGINE IS NOT INTENDED FOR OPERATION AT MORE THAN __ PERCENT OF FULL LOAD.". Specify the appropriate percentage of full load based on the nature of the engine protection. You may add other statements to discourage operation in engine protection modes. ( 17) If your engines are certified to the voluntary standards in § 1048.140, state: " BLUE SKY SERIES". ( d) You may add information to the emission control information label to identify other emission standards that the engine meets or does not meet ( such as California standards). You may also add other information to ensure that the engine will be properly maintained and used. ( e) You may ask us to approve modified labeling requirements in this part 1048 if you show that it is necessary or appropriate. We will approve your request if your alternate label is consistent with the requirements of this part. ( f) If you obscure the engine label while installing the engine in the equipment such that the label will be hard to read during normal maintenance, you must place a duplicate label on the equipment. If others install your engine in their equipment in a way that obscures the engine label, we require them to add a duplicate label on the equipment ( see 40 CFR 1068.105); in that case, give them the number of duplicate labels they request and keep the following records for at least five years: 100 ( 1) Written documentation of the request from the equipment manufacturer. ( 2) The number of duplicate labels you send and the date you sent them.

225. Section 1048.140 is amended by revising paragraph ( c) to read as follows: § 1048.140 What are the provisions for certifying Blue Sky Series engines? * * * * * ( c) For any model year, to receive a certificate of conformity as a " Blue Sky Series" engine family must meet all the requirements in this part while certifying to one of the sets of exhaust emission standards in the following table:

Table 1 of § 1048.140   Long term Standards for Blue Sky Series Engines ( g/ kW hr)

Standards for steady state and transient test procedures Standards for field testing procedures HC+ NOx CO HC+ NOx CO 0.80 4.4 1.10 6.6 0.60 4.4 0.84 6.6 0.40 4.4 0.56 6.6 0.20 4.4 0.28 6.6 0.10 4.4 0.14 6.6 * * * * *

226. Section 1048.145 is amended by revising the section heading and paragraph ( a) and removing and reserving paragraph( c) to read as follows: § 1048.145 Are there interim provisions that apply only for a limited time?

* * * * * ( a) Family banking. This paragraph ( a) allows you to reduce the number of engines subject to the Tier 2 standards by certifying some of your engines earlier than otherwise required, as follows: ( 1) For early compliant engines to generate offsets under this paragraph ( a), you must meet the following general provisions: ( i) You must begin actual production of early compliant engines by September 1, 2006. ( ii) Engines you produce after December 31, 2006 may not generate offsets. ( iii) Offset generating engines must be certified to the Tier 2 standards and requirements under this part 1048. ( iv) If you certify engines under the voluntary standards of § 1048.140, you may not use them in your calculation under this paragraph ( a). ( 2) For every offset generating engine certified to the Tier 2 standards, you may reduce the number of engines with the same maximum engine power that are required to meet the Tier 2 standards in later model years by one engine. You may calculate power weighted 101 offsets based on actual U. S. directed sales volumes. For example, if you produce a total of 1,000 engines in 2005 and 2006 with an average maximum power of 60 kW certified to the Tier 2 standards, you may delay certification to that tier of standards for up to 60,000 kW engine years in any of the following ways: ( i) Delay certification of up to 600 engines with an average maximum power of 100 kW for one model year. ( ii) Delay certification of up to 200 engines with an average maximum power of 100 kW for three consecutive model years. ( iii) Delay certification of up to 400 engines with an average maximum power of 100 kW for one model year and up to 50 engines with an average maximum power of 200 kW for two model years. ( 3) Offset using engines ( that is, those not required to certify to the Tier 2 standards) must be certified to the Tier 1 standards and requirements of this part 1048. You may delay compliance for up to three model years. ( 4) By January 31 of each year in which you use the provisions of this paragraph ( a), send us a report describing how many offset generating or offset using engines you produced in the preceding model year. * * * * *

227. Section 1048.201 is revised to read as follows: § 1048.201 What are the general requirements for obtaining a certificate of conformity? ( a) You must send us a separate application for a certificate of conformity for each engine family. A certificate of conformity is valid from the indicated effective date until December 31 of the model year for which it is issued. ( b) The application must contain all the information required by this part and must not include false or incomplete statements or information ( see § 1048.255). ( c) We may ask you to include less information than we specify in this subpart, as long as you maintain all the information required by § 1048.250. ( d) You must use good engineering judgment for all decisions related to your application ( see 40 CFR 1068.5). ( e) An authorized representative of your company must approve and sign the application. ( f) See § 1048.255 for provisions describing how we will process your application. ( g) We may require you to deliver your test engines to a facility we designate for our testing ( see § 1048.235( c)).