standards described in Appendix I of this part.
* * * * *
    (3) In all other cases, engines at or above 56 kW and at or below
560 kW must meet the appropriate Tier 3 standards described in Appendix
I of this part. Engines below 56 kW and engines above 560 kW must meet
the appropriate Tier 2 standards described in Appendix I of this part.
* * * * *
    (g) * * *
    (1) * * *
    (vi) The number of units in each power category you have sold in
years for which the Tier 2 and Tier 3 standards apply.
* * * * *
    (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 Sec.
1039.250(a). Exempt engines must meet the emission standards in
paragraph (e) of this section and you must meet all the requirements of
40 CFR 1068.265, except that engines produced under the provisions of
paragraph (a)(2) of this section must be identical in all material
respects to engines previously certified under this part 1039. If you
show under 40 CFR 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 Sec.  1039.135, as applicable, with the
following exceptions:
    (1) Add the following statement instead of the compliance statement
in Sec.  1039.135(c)(12): 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.
* * * * *
0
182. Amend Sec.  1039.626 by revising paragraph (b)(1)(iv) to read as
follows:

Sec.  1039.626  What special provisions apply to equipment imported
under the equipment-manufacturer flexibility program?

* * * * *
    (b) * * *
    (1) * * *
    (iv) The number of units in each power category you have imported
in years for which the Tier 2 and Tier 3 standards apply.
* * * * *
0
183. Amend Sec.  1039.655 by revising paragraphs (a)(2) and (b) to read
as follows:

Sec.  1039.655  What special provisions apply to engines sold in Guam,
American Samoa, or the Commonwealth of the Northern Mariana Islands?

    (a) * * *
    (2) The engine meets the latest applicable emission standards in
Appendix I of this part.
* * * * *
    (b) If you introduce an engine into commerce in the United States
under this section, you must meet the labeling requirements in Sec.
1039.135, but add the following statement instead of the compliance
statement in Sec.  1039.135(c)(12): THIS ENGINE DOES NOT COMPLY WITH
U.S. EPA TIER 4 EMISSION REQUIREMENTS. IMPORTING THIS ENGINE INTO THE
UNITED STATES OR ANY TERRITORY OF THE UNITED STATES EXCEPT GUAM,
AMERICAN SAMOA, OR THE COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS MAY
BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.
* * * * *
0
184. Amend Sec.  1039.740 by revising paragraph (b) to read as follows:

Sec.  1039.740  What restrictions apply for using emission credits?

* * * * *
    (b) Emission credits from earlier tiers of standards. (1) For
purposes of ABT under this subpart, you may not use emission credits
generated from engines subject to emission standards identified in
Appendix I of this part, except as specified in Sec.  1039.102(d)(1) or
the following table:

------------------------------------------------------------------------
                                      And it was
                                   certified to the    Then you may use
   If the maximum power of the         following         those banked
 credit-generating engine is . .       standards        credits for the
                .                    identified in     following Tier 4
                                  Appendix I of this     engines . . .
                                      part . . .
------------------------------------------------------------------------
(i) kW<9........................  Tier 2............  kW<9.
(ii) 19<=kW<37..................  Tier 2............  kW>=19.
(iii) 37<=kW<=560...............  Tier 3............  kW>=19.
(iv) kW>560.....................  Tier 2............  kW>=19.
------------------------------------------------------------------------

    (2) Emission credits generated from marine engines certified to the
standards identified in Appendix I of this part for land-based engines
may not be used under this part.
* * * * *
0
185. Amend Sec.  1039.801 by:
0
a. Revising the definition for ``Low-hour'';
0
b. Revising paragraph (5)(ii) for the definition of ``Model year''; and
0
c. Revising the definitions for ``Small-volume engine manufacturer'',
``Tier 1'', ``Tier 2'', and ``Tier 3''.
    The revisions read as follows.

Sec.  1039.801  What definitions apply to this part?

* * * * *
    Low-hour means relating to an engine with stabilized emissions and
represents the undeteriorated emission level. This would generally
involve less than 125 hours of operation for engines at or below 560 kW
and less than 300 hours of operation for engines above 560 kW.
* * * * *
    Model year means one of the following things:
* * * * *
    (5) * * *
    (ii) For imported engines described in paragraph (5)(ii) of the
definition of ``new nonroad engine,'' model year means the calendar
year in which the engine is modified.
* * * * *
    Small-volume engine manufacturer means an engine manufacturer with
1000 or fewer employees that has had annual U.S.-directed production
volume of no more than 2,500 units. For manufacturers owned by a parent
company, these limits apply to the total number of employees and
production volume from the parent company and all its subsidiaries.
* * * * *
    Tier 1 means relating to the Tier 1 emission standards identified
in Appendix I of this part.
    Tier 2 means relating to the Tier 2 emission standards identified
in Appendix I of this part.
    Tier 3 means relating to the Tier 3 emission standards identified
in Appendix I of this part.
* * * * *
0
186. Add Appendix I to part 1039 to read as follows:

Appendix I to Part 1039--Summary of Previous Emission Standards

    The following standards, which EPA originally adopted under 40
CFR part 89, apply to nonroad compression-ignition engines produced
before the model years specified in Sec.  1039.1:
    (a) Tier 1 standards apply as summarized in the following table:

                                               Table 1 to Appendix I--Tier 1 Emission Standards (g/kW-hr)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Starting model
                    Rated power (kW)                           year             NOX             HC           NOX+NMHC           CO              PM
--------------------------------------------------------------------------------------------------------------------------------------------------------
kW<8....................................................            2000  ..............  ..............            10.5             8.0             1.0
8<=kW<19................................................            2000  ..............  ..............             9.5             6.6            0.80
19<=kW<37...............................................            1999  ..............  ..............             9.5             5.5            0.80
37<=kW< 75..............................................            1998             9.2  ..............  ..............  ..............  ..............
75<=kW<130..............................................            1997
130<=kW<560.............................................            1996             9.2             1.3  ..............            11.4            0.54
kW>560..................................................            2000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (b) Tier 2 standards apply as summarized in the following table:
    [GRAPHIC] [TIFF OMITTED] TP12MY20.072

    (c) Tier 3 standards apply as summarized in the following table:

                           Table 3 to Appendix I--Tier 3 Emission Standards (g/kW-hr)
----------------------------------------------------------------------------------------------------------------
                                                  Starting model
                Rated power (kW)                       year          NOX+NMHC           CO              PM
----------------------------------------------------------------------------------------------------------------
37<=kW<75.......................................            2008             4.7             5.0            0.40

75<=kW<130......................................            2007             4.0             5.0            0.30
130<=kW<=560....................................            2006             4.0             3.5            0.20
----------------------------------------------------------------------------------------------------------------

    (d) Tier 1 through Tier 3 standards applied only for discrete-
mode steady-state testing. There were no not-to-exceed standards or
transient testing.

PART 1042--CONTROL OF EMISSIONS FROM NEW AND IN-USE MARINE
COMPRESSION-IGNITION ENGINES AND VESSELS

0
187. The authority statement for part 1042 continues to read as
follows:

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

0
188. Amend Sec.  1042.1 by:
0
a. Revising paragraphs (b) and (c); and
0
b. Removing and reserving paragraph (d).
    The revisions read as follows:

Sec.  1042.1  Applicability.

* * * * *
    (b) New engines with maximum engine power below 37 kW and
originally manufactured and certified before the model years identified
in Table 1 to this section are subject to emission standards as
specified in Appendix I of this part. The provisions of this part 1042
do not apply for such engines, except as follows beginning June 29,
2010:
    (1) The allowances of this part apply.
    (2) The definitions of ``new marine engine'' and ``model year''
apply.
    (c) Marine engines originally meeting Tier 1 or Tier 2 standards as
specified in Appendix I of this part remain subject to those standards.
This includes uncertified engines that meet standards under 40 CFR
1068.265. Those engines remain subject to recall provisions as
specified in 40 CFR part 1068, subpart F, throughout the useful life
corresponding to the original certification. Also, tampering and
defeat-device prohibitions continue to apply for those engines as
specified in 40 CFR 1068.101. The remanufacturing provisions in subpart
I of this part may apply for remanufactured engines originally
manufactured in model years before the model years identified in Table
1 to this section.
* * * * *
0
189. Amend Sec.  1042.101 by revising paragraphs (a)(6), (c)(2), and
(e)(2) to read as follows:

Sec.  1042.101  Exhaust emission standards for Category 1 and Category
2 engines.

    (a) * * *
    (6) Interim Tier 4 PM standards apply for 2014 and 2015 model year
engines between 2000 and 3700 kW as specified in this paragraph (a)(6).
These engines are considered Tier 4 engines.
    (i) For Category 1 engines, the Tier 3 PM standards from Table 1 to
this section continue to apply. PM FELs for these engines may not be
higher than the applicable Tier 2 PM standards specified in Appendix I
of this part.
    (ii) For Category 2 engines with per-cylinder displacement below
15.0 liters, the Tier 3 PM standards from Table 2 to this section
continue to apply. PM FELs for these engines may not be higher than
0.27 g/kW-hr.
    (iii) For Category 2 engines with per-cylinder displacement at or
above 15.0 liters, the PM standard is 0.34 g/kW-hr for engines at or
above 2000 kW and below 3300 kW, and 0.27 g/kW-hr for engines at or
above 3300 kW and below 3700 kW. PM FELs for these engines may not be
higher than 0.50 g/kW-hr.
* * * * *
    (c) * * *
    (2) Determine the applicable NTE zone and subzones as described in
Sec.  1042.515. Determine NTE multipliers for specific zones and
subzones and pollutants as follows:
    (i) For marine engines certified using the duty cycle specified in
Sec.  1042.505(b)(1), except for variable-speed propulsion marine
engines used with controllable-pitch propellers or with electrically
coupled propellers, apply the following NTE multipliers:
    (A) Subzone 1: 1.2 for Tier 3 NOX+HC standards.
    (B) Subzone 1: 1.5 for Tier 4 standards and Tier 3 PM and CO
standards.
    (C) Subzone 2: 1.5 for Tier 4 NOX and HC standards and
for Tier 3 NOX+HC standards.
    (D) Subzone 2: 1.9 for PM and CO standards.
    (ii) For recreational marine engines certified using the duty cycle
specified in Sec.  1042.505(b)(2), except for variable-speed marine
engines used with controllable-pitch propellers or with electrically
coupled propellers, apply the following NTE multipliers:
    (A) Subzone 1: 1.2 for Tier 3 NOX+HC standards.
    (B) Subzone 1: 1.5 for Tier 3 PM and CO standards.
    (C) Subzones 2 and 3: 1.5 for Tier 3 NOX+HC standards.
    (D) Subzones 2 and 3: 1.9 for PM and CO standards.
    (iii) For variable-speed marine engines used with controllable-
pitch propellers or with electrically coupled propellers that are
certified using the duty cycle specified in Sec.  1042.505(b)(1), (2),
or (3), apply the following NTE multipliers:
    (A) Subzone 1: 1.2 for Tier 3 NOX+HC standards.
    (B) Subzone 1: 1.5 for Tier 4 standards and Tier 3 PM and CO
standards.
    (C) Subzone 2: 1.5 for Tier 4 NOX and HC standards and
for Tier 3 NOX+HC standards.
    (D) Subzone 2: 1.9 for PM and CO standards. However, there is no
NTE standard in Subzone 2b for PM emissions if the engine family's
applicable standard for PM is at or above 0.07 g/kW-hr.
    (iv) For constant-speed engines certified using a duty cycle
specified in Sec.  1042.505(b)(3) or (4), apply the following NTE
multipliers:
    (A) Subzone 1: 1.2 for Tier 3 NOX+HC standards.
    (B) Subzone 1: 1.5 for Tier 4 standards and Tier 3 PM and CO
standards.
    (C) Subzone 2: 1.5 for Tier 4 NOX and HC standards and
for Tier 3 NOX+HC standards.
    (D) Subzone 2: 1.9 for PM and CO standards. However, there is no
NTE standard for PM emissions if the engine family's applicable
standard for PM is at or above 0.07 g/kW-hr.
    (v) For variable-speed auxiliary marine engines certified using the
duty cycle specified in Sec.  1042.505(b)(5)(ii) or (iii):
    (A) Subzone 1: 1.2 for Tier 3 NOX+HC standards.
    (B) Subzone 1: 1.5 for Tier 4 standards and Tier 3 PM and CO
standards.
    (C) Subzone 2: 1.2 for Tier 3 NOX+HC standards.
    (D) Subzone 2: 1.5 for Tier 4 standards and Tier 3 PM and CO
standards. However, there is no NTE standard for PM emissions if the
engine family's applicable standard for PM is at or above 0.07 g/kW-hr.
* * * * *
    (e) * * *
    (2) Specify a longer useful life in hours for an engine family
under either of two conditions:

    (i) If you design your engine to operate longer than the minimum
useful life. Indicators of design life include your recommended
overhaul interval and may also include your advertising and marketing
materials.
    (ii) If your basic mechanical warranty is longer than the minimum
useful life.
* * * * *
0
190. Amend Sec.  1042.104 by revising paragraphs (a)(2) and (c) to read
as follows:

Sec.  1042.104  Exhaust emission standards for Category 3 engines.

    (a) * * *
    (2) NOX standards apply based on the engine's model year
and maximum in-use engine speed as shown in the following table:

               Table 1 to Sec.   1042.104--NOX Emission Standards for Category 3 Engines (g/kW-hr)
----------------------------------------------------------------------------------------------------------------
                                                                            Maximum in-use engine speed
                                                                 -----------------------------------------------
          Emission standards                   Model year          Less than<PHONE_NUMBER> RPM
                                                                        RPM             \a\        Over 2000 RPM
----------------------------------------------------------------------------------------------------------------
Tier 1................................  2004-2010...............            17.0  45.0[middot]n(-            9.8
                                                                                0.20)
Tier 2................................  2011-2015...............            14.4  44.0[middot]n(-            7.7
                                                                                0.23)
Tier 3 \b\............................  2016 and later..........             3.4  9.0[middot]n(-             2.0
                                                                                0.20)
----------------------------------------------------------------------------------------------------------------
\a\ Applicable standards are calculated from n (maximum in-use engine speed, in RPM, as specified in Sec.
  1042.140). Round the standards to one decimal place.
\b\ For engines designed with on-off controls as specified in Sec.   1042.115(g), the Tier 2 standards continue
  to apply any time the engine has disabled its Tier 3 NOX emission controls.

* * * * *
    (c) Mode caps. Measured NOX emissions from Tier 3
engines may not exceed the cap specified in this paragraph (c) for any
applicable duty-cycle test modes with power greater than 10 percent
maximum engine power. Calculate the mode cap by multiplying the
applicable Tier 3 NOX standard by 1.5 and rounding to the
nearest 0.1 g/kW-hr. Note that mode caps do not apply for pollutants
other than NOX and do not apply for any modes of operation
outside of the applicable duty cycles in Sec.  1042.505. Category 3
engines are not subject to not-to-exceed standards.
* * * * *
0
191. Amend Sec.  1042.115 by revising paragraph (g) to read as follows:

Sec.  1042.115  Other requirements.

* * * * *
    (g) On-off controls for engines on Category 3 vessels.
Manufacturers may equip Category 3 propulsion engines with features
that disable Tier 3 NOX emission controls subject to the
provisions of this paragraph (g). For auxiliary engines allowed to use
on-off controls as specified in Sec.  1042.650(d), read ``Tier 2'' to
mean ``IMO Tier II'' and read ``Tier 3'' to mean ``IMO Tier III''.
    (1) Features that disable Tier 3 NOX emission controls
are considered to be AECDs whether or not they meet the definition of
an AECD. For example, manually operated on-off features are AECDs under
this paragraph (g). The features must be identified in your application
for certification as AECDs. For purposes of this paragraph (g), the
term ``features that disable Tier 3 emission controls'' includes (but
is not limited to) any combination of the following that cause the
engine's emissions to exceed any Tier 3 emission standard:
    (i) Bypassing of exhaust aftertreatment.
    (ii) Reducing or eliminating flow of reductant to an SCR system.
    (iii) Modulating engine calibration in a manner that increases
engine-out emissions of a regulated pollutant.
    (2) You must demonstrate that the AECD will not disable
NOX emission controls while operating shoreward of the
boundaries of the North American ECA and the U.S. Caribbean Sea ECA.
You must demonstrate that the AECD will not disable emission control
while operating in these waters. (Note: See the regulations in 40 CFR
part 1043 for requirements related to operation in ECAs, including
foreign ECAs.) Compliance with this paragraph will generally require
that the AECD operation be based on Global Positioning System (GPS)
inputs. We may consider any relevant information to determine whether
your AECD conforms to this paragraph (g).
    (3) The onboard computer log must record in nonvolatile computer
memory all incidents of engine operation with the Tier 3 NOX
emission controls disabled.
    (4) The engine must comply with the Tier 2 NOX standard
when the Tier 3 NOX emission controls are disabled.
0
192. Amend Sec.  1042.125 by revising paragraph (e) to read as follows:

Sec.  1042.125  Maintenance instructions.

* * * * *
    (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 or fuel-water separator
cartridges or elements, and adjusting idle speed, governor, engine bolt
torque, valve lash, or injector lash. You may not perform this
nonemission-related maintenance on emission-data engines more often
than the least frequent intervals that you recommend to the ultimate
purchaser.
* * * * *
0
193. Amend Sec.  1042.135 by revising paragraph (c)(13) to read as
follows:

Sec.  1042.135  Labeling.

* * * * *
    (c) * * *
    (13) For engines above 130 kW that are intended for installation on
domestic or public vessels, include the following statement: ``THIS
ENGINE DOES NOT COMPLY WITH INTERNATIONAL MARINE REGULATIONS UNLESS IT
IS ALSO COVERED BY AN EIAPP CERTIFICATE.''
* * * * *
0
194. Amend Sec.  1042.145 by:
0
a. Removing and reserving paragraphs (b), (c), (e), (h), and (i); and
0
b. Revising paragraph (j).
    The revision reads as follows:

Sec.  1042.145  Interim provisions.

* * * * *
    (j) Installing land-based engines in marine vessels. Vessel
manufacturers and marine equipment manufacturers may apply the
provisions of Sec. Sec.  1042.605 and 1042.610 to land-based engines
with maximum engine power at or above 37 kW and at or below 560 kW if
they meet the Tier 3 emission

standards in Appendix I of 40 CFR part 1039 as specified in 40 CFR
1068.265. All the provisions of Sec.  1042.605 or Sec.  1042.610 apply
as if those engines were certified to emission standards under 40 CFR
part 1039. Similarly, engine manufacturers, vessel manufacturers, and
marine equipment manufacturers must comply with all the provisions of
40 CFR part 1039 as if those engines were installed in land-based
equipment. The following provisions apply for engine manufacturers
shipping engines to vessel manufacturers or marine equipment
manufacturers under this paragraph (j):
    (1) You must label the engine as described in 40 CFR 1039.135, but
identify the engine family name as it was last certified under 40 CFR
part 1039 and include the following alternate compliance statement:
``THIS ENGINE MEETS THE TIER 3 STANDARDS FOR LAND-BASED NONROAD DIESEL
ENGINES UNDER 40 CFR PART 1039. THIS ENGINE MAY BE USED ONLY IN A
MARINE VESSEL UNDER THE DRESSING PROVISIONS OF 40 CFR 1042.605 OR 40
CFR 1042.610.''
    (2) You must use the provisions of 40 CFR 1068.262 for shipping
uncertified engines under this section to secondary engine
manufacturers.
0
195. Amend Sec.  1042.225 by revising paragraph (e) to read as follows:

Sec.  1042.225  Amending applications for certification.

* * * * *
    (e) The amended application applies starting with the date you
submit the amended application, as follows:
    (1) For engine families already covered by a certificate of
conformity, you may start producing the new or modified engine
configuration anytime after you send us your amended application and
before we make a decision under paragraph (d) of this section. However,
if we determine that the affected engines do not meet applicable
requirements, we will notify you to cease production of the engines and
may require you to recall the engines at no expense to the owner.
Choosing to produce engines under this paragraph (e) is deemed to be
consent to recall all engines that we determine do not meet applicable
emission standards or other requirements and to remedy the
nonconformity at no expense to the owner. If you do not provide
information required under paragraph (c) of this section within 30 days
after we request it, you must stop producing the new or modified
engines.
    (2) If you amend your application to make the amended application
correct and complete, these changes do not apply retroactively. Also,
if we determine that your amended application is not correct and
complete, or otherwise does not conform to the regulation, we will
notify you and describe how to address the error.
* * * * *
0
196. Amend Sec.  1042.235 by revising paragraph (d)(3) to read as
follows:

Sec.  1042.235  Emission testing related to certification.

* * * * *
    (d) * * *
    (3) The data show that the emission-data engine would meet all the
requirements that apply to the engine family covered by the application
for certification. For engines originally tested to demonstrate
compliance with Tier 1 or Tier 2 standards, you may consider those test
procedures to be equivalent to the procedures we specify in subpart F
of this part.
* * * * *
0
197. Revise Sec.  1042.255 to read as follows:

Sec.  1042.255  EPA decisions.

    (a) If we determine an application is complete and shows that the
engine family meets all the requirements of this part and the Clean Air
Act, we will issue a certificate of conformity for the engine family
for that model year. We may make the approval subject to additional
conditions.
    (b) We may deny an application for certification if we determine
that an engine family fails to comply with emission standards or other
requirements of this part or the Clean Air Act. We will base our
decision on all available information. If we deny an application, we
will explain why in writing.
    (c) In addition, we may deny your application or suspend or revoke
a certificate of conformity if you do any of the following:
    (1) Refuse to comply with any testing or reporting requirements.
    (2) Submit false or incomplete information. This includes doing
anything after submitting an application that causes submitted
information to be false or incomplete.
    (3) Cause any test data to become inaccurate.
    (4) Deny us from completing authorized activities (see 40 CFR
1068.20). This includes a failure to provide reasonable assistance.
    (5) Produce engines for importation into the United States at a
location where local law prohibits us from carrying out authorized
activities.
    (6) Fail to supply requested information or amend an application to
include all engines being produced.
    (7) Take any action that otherwise circumvents the intent of the
Clean Air Act or this part, with respect to an engine family.
    (d) We may void a certificate of conformity for an engine family if
you fail to keep records, send reports, or give us information as
required under this part or the Clean Air Act. Note that these are also
violations of 40 CFR 1068.101(a)(2).
    (e) We may void a certificate of conformity for an engine family if
we find that you intentionally submitted false or incomplete
information. This includes doing anything after submitting an
application that causes submitted information to be false or incomplete
after submission.
    (f) If we deny an application or suspend, revoke, or void a
certificate, you may ask for a hearing (see Sec.  1042.920).
0
198. Amend Sec.  1042.302 by revising paragraph (a) to read as follows:

Sec.  1042.302  Applicability of this subpart for Category 3 engines.

* * * * *
    (a) You must test each Category 3 engine at the sea trial of the
vessel in which it is installed or within the first 300 hours of
operation, whichever occurs first. This may involve testing a fully
assembled production engine before it is installed in the vessel. For
engines with on-off controls, you may omit testing to demonstrate
compliance with Tier 2 standards if the engine does not rely on
aftertreatment when Tier 3 emission controls are disabled. Since you
must test each engine, the provisions of Sec. Sec.  1042.310 and
1042.315(b) do not apply for Category 3 engines. If we determine that
an engine failure under this subpart is caused by defective components
or design deficiencies, we may revoke or suspend your certificate for
the engine family as described in Sec.  1042.340. If we determine that
an engine failure under this subpart is caused only by incorrect
assembly, we may suspend your certificate for the engine family as
described in Sec.  1042.325. If the engine fails, you may continue
operating only to complete the sea trial and return to port. It is a
violation of 40 CFR 1068.101(b)(1) to operate the vessel further until
you remedy the cause of failure. Each two-hour period of such operation
constitutes a separate offense. A violation lasting less than two hours
constitutes a single offense.
* * * * *

0
199. Amend Sec.  1042.605 by revising paragraphs (a), (b), (c),
(d)(1)(ii), (d)(2), (d)(3)(ii), (f), and (h) to read as follows:

Sec.  1042.605  Dressing engines already certified to other standards
for nonroad or heavy-duty highway engines for marine use.

    (a) General provisions. If you are an engine manufacturer
(including someone who marinizes a land-based engine), this section
allows you to introduce new marine engines into U.S. 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 1033 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, 1033, or 1039 for each engine to also be a valid
certificate of conformity under this part 1042 for its model year,
without a separate application for certification under the requirements
of this part 1042. This section does not apply for Category 3 engines.
    (b) Vessel-manufacturer provisions. If you are not an engine
manufacturer, you may install an engine certified for the appropriate
model year under 40 CFR part 86, 1033, 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 1033 or 1039. This paragraph (c)
applies to engine manufacturers, vessel manufacturers that use such an
engine, and all other persons as if the engine were used in its
originally intended application. The prohibited acts of 40 CFR
1068.101(a)(1) apply to these new engines and vessels; however, we
consider the certificate issued under 40 CFR part 86, 1033, or 1039 for
each engine to also be a valid certificate of conformity under this
part 1042 for its model year. If we make a determination that these
engines do not conform to the regulations during their useful life, we
may require you to recall them under 40 CFR part 85 or 1068.
    (d) * * *
    (1) * * *
    (ii) Land-based compression-ignition nonroad engines (40 CFR part
1039).
* * * * *
    (2) The engine must have the label required under 40 CFR part 86,
1033, or 1039.
    (3) * * *
    (ii) Replacing an original turbocharger, except that small-volume
engine manufacturers may replace an original turbocharger on a
recreational engine with one that matches the performance of the
original turbocharger.
* * * * *
    (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 1042 and the
certificate issued under 40 CFR part(s) 86, 1033, or 1039 will not be
deemed to also be a certificate issued under this part 1042.
Introducing these engines into U.S. commerce as marine engines without
a valid exemption or certificate of conformity under this part violates
the prohibitions in 40 CFR 1068.101(a)(1).
* * * * *
    (h) Participation in averaging, banking and trading. Engines
adapted for marine use under this section may not generate or use
emission credits under this part 1042. These engines may generate
credits under the ABT provisions in 40 CFR part(s) 86, 1033, or 1039,
as applicable. These engines must use emission credits under 40 CFR
part(s) 86, 1033, or 1039 as applicable if they are certified to an FEL
that exceeds an emission standard.
* * * * *
0
200. Amend Sec.  1042.610 by revising paragraphs (a), (c), (d)(1), (f),
and (g) to read as follows:

Sec.  1042.610  Certifying auxiliary marine engines to land-based
standards.

* * * * *
    (a) General provisions. If you are an engine manufacturer, this
section allows you to introduce new marine engines into U.S. commerce
if they are already certified to the requirements that apply to
compression-ignition engines under 40 CFR part 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 1039 for each engine
to also be a valid certificate of conformity under this part 1042 for
its model year, without a separate application for certification under
the requirements of this part 1042.
* * * * *
    (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 1039. This paragraph (c) applies to engine manufacturers,
vessel manufacturers that use such an engine, and all other persons as
if the engine were used in its originally intended application. The
prohibited acts of 40 CFR 1068.101(a)(1) apply to these new engines and
vessels; however, we consider the certificate issued under 40 CFR part
1039 for each engine to also be a valid certificate of conformity under
this part 1042 for its model year. If we make a determination that
these engines do not conform to the regulations during their useful
life, we may require you to recall them under 40 CFR part 1068.
    (d) * * *
    (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 1039.
* * * * *
    (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 1042 and the
certificate issued under 40 CFR part 1039 will not be deemed to also be
a certificate issued under this part 1042. Introducing these engines
into U.S. commerce as marine engines without a valid exemption or
certificate of conformity under this part 1042 violates the
prohibitions in 40 CFR 1068.101(a)(1).
    (g) Participation in averaging, banking and trading. Engines using
this exemption may not generate or use emission credits under this part
1042. These engines may generate credits under the ABT provisions in 40
CFR part 1039, as applicable. These engines must use emission credits
under 40 CFR part 1039 as applicable if they are certified to an FEL
that exceeds an emission standard.
* * * * *
0
201. Amend Sec.  1042.615 by revising paragraph (a) introductory text,
paragraphs (a)(1), and (3) and adding paragraphs (f) and (g) to read as
follows:

Sec.  1042.615  Replacement engine exemption.

* * * * *
    (a) This paragraph (a) applies instead of the provisions of 40 CFR
1068.240(b)(2) for installing new marine engines in vessels that are
not ``new vessels''. The prohibitions in 40 CFR 1068.101(a)(1) do not
apply to a new replacement engine if all the following conditions are
met:
    (1) You use good engineering judgment to determine that no engine
certified to the current requirements of this part is produced by any
manufacturer with the appropriate physical or performance
characteristics to repower the vessel. We have determined that Tier 4
engines with aftertreatment technology do not have the appropriate
physical or performance characteristics to replace uncertified engines
or engines certified to emission standards that are less stringent than
the Tier 4 standards.
* * * * *
    (3) Send us a report by September 30 of each year describing your
engine shipments under this section from the preceding calendar year.
Your report must include all the following things and be signed by an
authorized representative of your company:
    (i) Identify the number of Category 1 and Category 2 exempt
replacement engines that meet Tier 1, Tier 2, or Tier 3 standards, or
that meet no EPA standards. Count engines separately for each tier of
standards.
    (ii) Identify the number of engines that have been shipped
(directly or indirectly) to a vessel owner. This includes engines
shipped to anyone intending to install engines on behalf of a specific
engine owner. Also include commercial Tier 3 engines with maximum
engine power at or above 600 kW even if they have not been shipped to
or designated for a specific vessel owner in the specified time frame.
    (iii) Describe how you made the determinations described in
paragraph (a)(1) of this section for each Category 1 and Category 2
exempt replacement engine for each vessel during the preceding year.
For Tier 3 replacement engines at or above 600 kW, describe why any
engines certified to Tier 4 standards without aftertreatment are not
suitable.
    (iv) Identify the number of Category 3 exempt replacement engines.
We may require you to describe how you made the determinations
described in paragraph (a)(1) of this section for each engine.
    (v) Include the following statement:
    I certify that the statements and information in the enclosed
document are true, accurate, and complete to the best of my knowledge.
I am aware that there are significant civil and criminal penalties for
submitting false statements and information, or omitting required
statements and information.
* * * * *
    (f) The provisions of 40 CFR 1068.240(c) allow you to ship a
limited number of exempt replacement engines to vessel owners or
distributors without making the determinations described in paragraph
(a) of this section. Note that such engines do not count toward the
production limits of 40 CFR 1068.240(c) if you meet all the
requirements of 40 CFR 1068.240(b) and this section by the due date for
the annual report. You may count Tier 3 commercial marine replacement
engines at or above 600 kW as tracked engines under 40 CFR 1068.240(b)
even if they have not been shipped to or designated for a specific
vessel owner in the specified time frame.
    (g) In unusual circumstances, you may ask us to allow you to apply
the replacement engine exemption of this section for repowering a
vessel that becomes a ``new vessel'' under Sec.  1042.901 as a result
of modifications, as follows:
    (1) You must demonstrate that no manufacturer produces an engine
certified to Tier 4 standards with the appropriate physical or
performance characteristics to repower the vessel. We will consider
concerns about the size of the replacement engine and its compatibility
with vessel components relative to the overall scope of the project.
    (2) Exempt replacement engines under this paragraph (g) must meet
the Tier 3 standards specified in Sec.  1042.101 (or the Tier 2
standards if there are no Tier 3 standards).
    (3) We will not approve a request for an exemption from the Tier 3
standards for any engines.
    (4) You may not use the exemption provisions for untracked
replacement engines under 40 CFR 1068.240(c) for repowering a vessel
that becomes a ``new vessel'' under Sec.  1042.901 as a result of
modifications.
0
202. Amend Sec.  1042.650 by revising the introductory text and
paragraph (b)(4) to read as follows:

Sec.  1042.650  Migratory vessels.

    The provisions of paragraphs (a) through (c) of this section apply
for Category 1 and Category 2 engines, including auxiliary engines
installed on vessels with Category 3 propulsion engines; these
provisions do not apply for any Category 3 engines. All engines
exempted under this section must comply with the applicable
requirements of 40 CFR part 1043.
* * * * *
    (b) * * *
    (4) Operating a vessel containing an engine exempted under this
paragraph (b) violates the prohibitions in 40 CFR 1068.101(a)(1) if the
vessel is not in full compliance with applicable requirements for
international safety specified in paragraph (b)(1)(i) of this section.
* * * * *
0
203. Amend Sec.  1042.655 by revising the paragraph (b) to read as
follows:

Sec.  1042.655  Special certification provisions for Category 3 engines
with aftertreatment.

* * * * *
    (b) Required testing. The emission-data engine must be tested as
specified in subpart F of this part. Testing engine-out emissions to
simulate operation with disabled Tier 3 emission controls must simulate
backpressure and other parameters as needed to represent in-use
operation with an SCR catalyst. The catalyst material or other
aftertreatment device must be tested under conditions that accurately
represent actual engine conditions for the test points. This catalyst
or aftertreatment testing may be performed on a bench scale.
* * * * *

Sec.  1042.701  [Amended]

0
204. Amend Sec.  1042.701 by removing and reserving paragraph (j).
0
205. Amend Sec.  1042.801 by revising paragraph (f)(1) to read as
follows:

Sec.  1042.801  General provisions.

* * * * *
    (f) * * *
    (1) Only fuel additives registered under 40 CFR part 79 may be used
under this paragraph (f).
* * * * *
0
206. Amend Sec.  1042.836 by revising the introductory text and
paragraph (c) to read as follows:

Sec.  1042.836  Marine certification of locomotive remanufacturing
systems.

    If you certify a Tier 0, Tier 1, or Tier 2 remanufacturing system
for locomotives under 40 CFR part 1033, you may also certify the system
under this part 1042, according to the provisions of this section.
* * * * *
    (c) Systems that were certified to the standards of 40 CFR part 92
are subject to the following restrictions:
    (1) Tier 0 locomotive systems may not be used for any Category 1
engines or Tier 1 or later Category 2 engines.
    (2) Where systems certified to the standards of 40 CFR part 1033
are also

available for an engine, you may not use a system certified to the
standards of 40 CFR part 92.
0
207. Amend Sec.  1042.901 by revising paragraph (3) of the definition
for ``Model year'' to read as follows:

Sec.  1042.901  Definitions.

* * * * *
    Model year means * * *
* * * * *
    (3) For an uncertified marine engine excluded under Sec.  1042.5
that is later subject to this part 1042 as a result of being installed
in a different vessel, model year means the calendar year in which the
engine was installed in the non-excluded vessel. For a marine engine
excluded under Sec.  1042.5 that is later subject to this part 1042 as
a result of reflagging the vessel, model year means the calendar year
in which the engine was originally manufactured. For a marine engine
that becomes new under paragraph (7) of the definition of ``new marine
engine,'' model year means the calendar year in which the engine was
originally manufactured. (See definition of ``new marine engine,''
paragraphs (3) and (7).)
* * * * *
0
208. Revise Sec.  1042.910 to read as follows:

Sec.  1042.910  Incorporation by reference.

    (a) Certain material is incorporated by reference into this part
with the approval of the Director of the Federal Register under 5
U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that
specified in this section, the Environmental Protection Agency must
publish a document in the Federal Register and the material must be
available to the public. All approved material is available for
inspection at EPA Docket Center, WJC West Building, Room 3334, 1301
Constitution Avenue, NW, Washington, DC 20004, www.epa.gov/dockets,
(202) 202-1744, and is available from the sources listed below. It is
also available for inspection at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, email<EMAIL_ADDRESS>or go to:
www.archives.gov/federal-register/cfr/ibr-locations.html.
    (b) The International Maritime Organization, 4 Albert Embankment,
London SE1 7SR, United Kingdom, or www.imo.org, or 44-(0)20-7735-7611.
    (1) MARPOL Annex VI, Regulations for the Prevention of Air
Pollution from Ships, Fourth Edition, 2017, and NOX
Technical Code 2008.
    (i) Revised MARPOL Annex VI, Regulations for the Prevention of
Pollution from Ships, Fourth Edition, 2017 (``2008 Annex VI''); IBR
approved for Sec.  1042.901.
    (ii) NOX Technical Code 2008, Technical Code on Control
of Emission of Nitrogen Oxides from Marine Diesel Engines, 2017
Edition, (``NOX Technical Code''); IBR approved for
Sec. Sec.  1042.104(g), 1042.230(d), 1042.302(c) and (e), 1042.501(g),
and 1042.901.
    (2) [Reserved]
0
209. Amend Appendix I to part 1042 by revising paragraph (a)
introductory text, paragraph (b) introductory text, and paragraph
(b)(3) to read as follows:

Appendix I to Part 1042--Summary of Previous Emission Standards

* * * * *
    (a) Engines below 37 kW. Tier 1 and Tier 2 standards for engines
below 37 kW originally adopted under 40 CFR part 89 apply as
follows:
* * * * *
    (b) Engines at or above 37 kW. Tier 1 and Tier 2 standards for
engines at or above 37 kW originally adopted under 40 CFR part 94
apply as follows:
* * * * *
    (3) Tier 2 supplemental standards. Not-to-exceed emission
standards apply for all engines subject to the Tier 2 standards
described in paragraph (b)(2) of this appendix.

PART 1043--CONTROL OF NOX, SOX, AND PM EMISSIONS FROM MARINE
ENGINES AND VESSELS SUBJECT TO THE MARPOL PROTOCOL

0
210. The authority statement for part 1043 continues to read as
follows:

    Authority:  33 U.S.C. 1901-1912.

0
211. Amend Sec.  1043.41 by revising paragraph (a) to read as follows:

Sec.  1043.41  EIAPP certification process.

* * * * *
    (a) You must send the Designated Certification Officer a separate
application for an EIAPP certificate for each engine family. An EIAPP
certificate is valid starting with the indicated effective date and is
valid for any production until such time as the design of the engine
family changes or more stringent emission standards become applicable,
whichever comes first. Note that an EIAPP certificate demonstrating
compliance with Tier I or Tier II standards (but not the Tier III
standard) is only a limited authorization to install engines on
vessels. For example, you may produce such Tier I or Tier II engines,
but those engines may not be installed in vessels that are subject to
Tier III standards. You may obtain preliminary approval of portions of
the application under 40 CFR 1042.210.
* * * * *
0
212. Revise Sec.  1043.100 to read as follows:

Sec.  1043.100  Incorporation by reference.

    (a) Certain material is incorporated by reference into this part
with the approval of the Director of the Federal Register under 5
U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that
specified in this section, the Environmental Protection Agency must
publish a document in the Federal Register and the material must be
available to the public. All approved material is available for
inspection at EPA Docket Center, WJC West Building, Room 3334, 1301
Constitution Avenue NW, Washington, DC 20004, www.epa.gov/dockets,
(202) 202-1744, and is available from the sources listed below. It is
also available for inspection at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, email<EMAIL_ADDRESS>or go to:
www.archives.gov/federal-register/cfr/ibr-locations.html.
    (b) The International Maritime Organization, 4 Albert Embankment,
London SE1 7SR, United Kingdom, or www.imo.org, or 44-(0)20-7735-7611.
    (1) MARPOL Annex VI, Regulations for the Prevention of Air
Pollution from Ships, Fourth Edition, 2017, and NOX
Technical Code 2008.
    (i) Revised MARPOL Annex VI, Regulations for the Prevention of
Pollution from Ships, Fourth Edition, 2017 (``2008 Annex VI''); IBR
approved for Sec. Sec.  1043.1 introductory text, 1043.20, 1043.30(f),
1043.60(c), and 1043.70(a).
    (ii) NOX Technical Code 2008, Technical Code on Control
of Emission of Nitrogen Oxides from Marine Diesel Engines, 2017
Edition, (``NOX Technical Code''); IBR approved for
Sec. Sec.  1043.20, 1043.41(b) and (h), and 1043.70(a).
    (2) [Reserved]

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

0
213. The authority statement for part 1045 continues to read as
follows:

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

0
214. Amend Sec.  1045.1 by revising paragraph (c) to read as follows:

Sec.  1045.1  Does this part apply for my products?

* * * * *
    (c) Outboard and personal watercraft engines originally meeting the
standards specified in Appendix I remain subject to those standards.
Those engines remain subject to recall provisions as specified in 40
CFR part 1068, subpart F, throughout the useful life

corresponding to the original certification. Also, tampering and
defeat-device prohibitions continue to apply for those engines as
specified in 40 CFR 1068.101.
* * * * *
0
215. Amend Sec.  1045.145 by removing and reserving paragraphs (a)
through (g), (i) through (k), and (m) and revising paragraph (n) to
read as follows:

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

* * * * *
    (n) Continued use of 40 CFR part 91 test data. You may continue to
use test data based on the test procedures that applied for engines
built before the requirements of this part 1045 started to apply if we
allow you to use carryover emission data under 40 CFR 1045.235(d) for
your engine family. You may also use those test procedures for
production-line testing with any engine family whose certification is
based on testing with those procedures. For any EPA testing, we will
rely on the procedures described in subpart F of this part, even if you
used carryover data based on older test procedures as allowed under
this paragraph (n).
* * * * *
0
216. Amend Sec.  1045.235 by revising paragraph (d)(3) to read as
follows:

Sec.  1045.235  What testing requirements apply for certification?

* * * * *
    (d) * * *
    (3) The data show that the emission-data engine would meet all the
requirements that apply to the engine family covered by the application
for certification.
* * * * *
0
217. Revise Sec.  1045.255 to read as follows:

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

    (a) If we determine an application is complete and shows that the
engine family meets all the requirements of this part and the Clean Air
Act, we will issue a certificate of conformity for the engine family
for that model year. We may make the approval subject to additional
conditions.
    (b) We may deny an application for certification if we determine
that an engine family fails to comply with emission standards or other
requirements of this part or the Clean Air Act. We will base our
decision on all available information. If we deny an application, we
will explain why in writing.
    (c) In addition, we may deny your application or suspend or revoke
a certificate of conformity if you do any of the following:
    (1) Refuse to comply with any testing or reporting requirements.
    (2) Submit false or incomplete information. This includes doing
anything after submitting an application that causes submitted
information to be false or incomplete.
    (3) Cause any test data to become inaccurate.
    (4) Deny us from completing authorized activities (see 40 CFR
1068.20). This includes a failure to provide reasonable assistance.
    (5) Produce engines for importation into the United States at a
location where local law prohibits us from carrying out authorized
activities.
    (6) Fail to supply requested information or amend an application to
include all engines being produced.
    (7) Take any action that otherwise circumvents the intent of the
Clean Air Act or this part, with respect to an engine family.
    (d) We may void a certificate of conformity for an engine family if
you fail to keep records, send reports, or give us information as
required under this part or the Clean Air Act. Note that these are also
violations of 40 CFR 1068.101(a)(2).
    (e) We may void a certificate of conformity for an engine family if
we find that you intentionally submitted false or incomplete
information. This includes doing anything after submitting an
application that causes submitted information to be false or incomplete
after submission.
    (f) If we deny an application or suspend, revoke, or void a
certificate, you may ask for a hearing (see Sec.  1045.820).
0
218. Amend Sec.  1045.310 by revising paragraph (a)(1) introductory
text and paragraph (a)(1)(iv) to read as follows:

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

    (a) * * *
    (1) For engine families with projected U.S.-directed production
volume of at least 1,600, the test periods are consecutive quarters (3
months). However, if your annual production period is not 12 months
long, you may take the following alternative approach to define
quarterly test periods:
* * * * *
    (iv) If your annual production period is 301 days or longer, divide
the annual production period evenly into four test periods. For
example, if your annual production period is 392 days (56 weeks),
divide the annual production period into four test periods of 98 days
(14 weeks).
* * * * *
0
219. Amend Sec.  1045.501 by revising paragraph (c) to read as follows:

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

* * * * *
    (c) Fuels. Use the fuels and lubricants specified in 40 CFR part
1065, subpart H, for all the testing we require in this part, except as
specified in Sec.  1045.515.
    (1) Use gasoline meeting the specifications described in 40 CFR
1065.710(c) for general testing. For service accumulation, use the test
fuel or any commercially available fuel that is representative of the
fuel that in-use engines will use.
    (2) You may alternatively use ethanol-blended gasoline meeting the
specifications described in 40 CFR 1065.710(b) for general testing
without our advance approval. If you use the ethanol-blended fuel for
certifying a given engine family, you may also use it for production-
line testing or any other testing you perform for that engine family
under this part. If you use the ethanol-blended fuel for certifying a
given engine family, we may use the ethanol-blended fuel or the
specified neat gasoline test fuel with that engine family.
* * * * *
0
220. Revise Appendix 1 to part 1045 to read as follows:

Appendix I to Part 1045--Summary of Previous Emission Standards

    (a) The following standards, which EPA originally adopted under
40 CFR part 91, apply to outboard and personal watercraft engines
produced from model year 2006 through 2009:
    (1) For engines at or below 4.3 kW, the HC + NOX
standard is 81.00 g/kW-hr.
    (2) For engines above 4.3 kW, the following HC + NOX
standard applies:

HC + NOX standard = (151 + 557/P\0.9\) [middot] 0.250 +
6.00

Where:

STD = The HC + NOX emission standard, in g/kW-hr.
P = The average power of an engine family, in kW.

    (b) Table 1 of this appendix describes the phase-in standards
for outboard and personal watercraft engines for model years 1998
through 2005. For engines with maximum engine power above 4.3 kW,
the standard is expressed by the following formula, in g/kW-hr, with
constants for each year identified in Table 1 of this appendix:

[GRAPHIC] [TIFF OMITTED] TP12MY20.073

         Table 1 of Appendix I--HC + NOX Phase-In Standards for Outboard and Personal Watercraft Engines
----------------------------------------------------------------------------------------------------------------
                                                                                Maximum engine power >4.3 kW
                           Model year                             Maximum engine -------------------------------
                                                                   power <4.3 kW         A               B
----------------------------------------------------------------------------------------------------------------
1998............................................................          278.00           0.917            2.44
1999............................................................          253.00           0.833            2.89
2000............................................................          228.00           0.750            3.33
2001............................................................          204.00           0.667            3.78
2002............................................................          179.00           0.583            4.22
2003............................................................          155.00           0.500            4.67
2004............................................................          130.00           0.417            5.11
2005............................................................          105.00           0.333            5.56
----------------------------------------------------------------------------------------------------------------

PART 1048--CONTROL OF EMISSIONS FROM NEW, LARGE NONROAD SPARK-
IGNITION ENGINES

0
221. The authority statement for part 1048 continues to read as
follows:

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

0
222. Revise Sec.  1048.145 to read as follows:

Sec.  1048.145  Are there interim provisions that apply only for a
limited time?

    The provisions in this section apply instead of other provisions in
this part. This section describes when these interim provisions expire.
    (a)-(f) [Reserved]
    (g) Small-volume provisions. If you qualify for the hardship
provisions in Sec.  1068.250 of this chapter, we may approve extensions
of up to four years total.
0
223. Revise Sec.  1048.255 to read as follows:

Sec.  1048.255  What decisions may EPA make regarding a certificate of
conformity?

    (a) If we determine an application is complete and shows that the
engine family meets all the requirements of this part and the Act, we
will issue a certificate of conformity for the engine family for that
model year. We may make the approval subject to additional conditions.
    (b) We may deny an application for certification if we determine
that an engine family fails to comply with emission standards or other
requirements of this part or the Clean Air Act. We will base our
decision on all available information. If we deny an application, we
will explain why in writing.
    (c) In addition, we may deny your application or suspend or revoke
a certificate of conformity if you do any of the following:
    (1) Refuse to comply with any testing or reporting requirements.
    (2) Submit false or incomplete information. This includes doing
anything after submitting an application that causes submitted
information to be false or incomplete.
    (3) Cause any test data to become inaccurate.
    (4) Deny us from completing authorized activities (see 40 CFR
1068.20). This includes a failure to provide reasonable assistance.
    (5) Produce engines for importation into the United States at a
location where local law prohibits us from carrying out authorized
activities.
    (6) Fail to supply requested information or amend an application to
include all engines being produced.
    (7) Take any action that otherwise circumvents the intent of the
Act or this part, with respect to an engine family.
    (d) We may void a certificate of conformity for an engine family if
you fail to keep records, send reports, or give us information as
required under this part or the Act. Note that these are also
violations of 40 CFR 1068.101(a)(2).
    (e) We may void a certificate of conformity for an engine family if
we find that you intentionally submitted false or incomplete
information. This includes doing anything after submitting an
application that causes submitted information to be false or incomplete
after submission.
    (f) If we deny an application or suspend, revoke, or void a
certificate, you may ask for a hearing (see Sec.  1048.820).
0
224. Amend Sec.  1048.501 by revising paragraph (c) to read as follows:

Sec.  1048.501  How do I run a valid emission test?

* * * * *
    (c) Use the fuels and lubricants specified in 40 CFR part 1065,
subpart H, to perform valid tests for all the testing we require in
this part, except as noted in Sec.  1048.515.
    (1) Use gasoline meeting the specifications described in 40 CFR
1065.710(c) for general testing. For service accumulation, use the test
fuel or any commercially available fuel that is representative of the
fuel that in-use engines will use.
    (2) You may alternatively use ethanol-blended gasoline meeting the
specifications described in 40 CFR 1065.710(b) for general testing
without our advance approval. If you use the ethanol-blended fuel for
certifying a given engine family, you may also use it for production-
line testing or any other testing you perform for that engine family
under this part. If you use the ethanol-blended fuel for certifying a
given engine family, we may use the ethanol-blended fuel or the
specified neat gasoline test fuel with that engine family.
* * * * *

PART 1051--CONTROL OF EMISSIONS FROM RECREATIONAL ENGINES AND
VEHICLES

0
225. The authority statement for part 1051 continues to read as
follows:

    Authority:  42 U.S.C. 7401-7671q.
0
226. Revise Sec.  1051.145 to read as follows:

Sec.  1051.145  What provisions apply only for a limited time?

    (a) Apply the provisions in this section instead of others in this
part for the periods and circumstances specified in this section.
    (b) [Reserved]
0
227. Revise Sec.  1051.255 to read as follows:

Sec.  1051.255  What decisions may EPA make regarding a certificate of
conformity?

    (a) If we determine an application is complete and shows that the
engine family meets all the requirements of this part and the Act, we
will issue a certificate of conformity for the engine family for that
model year. We may make the approval subject to additional conditions.
    (b) We may deny an application for certification if we determine
that an engine family fails to comply with emission standards or other
requirements of this part or the Clean Air Act. We will base our
decision on all available information. If we deny an application, we
will explain why in writing.
    (c) In addition, we may deny your application or suspend or revoke
a certificate of conformity if you do any of the following:
    (1) Refuse to comply with any testing or reporting requirements.
    (2) Submit false or incomplete information. This includes doing
anything after submitting an application that causes submitted
information to be false or incomplete.
    (3) Cause any test data to become inaccurate.
    (4) Deny us from completing authorized activities (see 40 CFR
1068.20). This includes a failure to provide reasonable assistance.
    (5) Produce engines for importation into the United States at a
location where local law prohibits us from carrying out authorized
activities.
    (6) Fail to supply requested information or amend an application to
include all engines being produced.
    (7) Take any action that otherwise circumvents the intent of the
Act or this part, with respect to an engine family.
    (d) We may void a certificate of conformity for an engine family if
you fail to keep records, send reports, or give us information as
required under this part or the Clean Air Act. Note that these are also
violations of 40 CFR 1068.101(a)(2).
    (e) We may void a certificate of conformity for an engine family if
we find that you intentionally submitted false or incomplete
information. This includes doing anything after submitting an
application that causes submitted information to be false or incomplete
after submission.
    (f) If we deny an application or suspend, revoke, or void a
certificate, you may ask for a hearing (see Sec.  1051.820).
0
228. Amend Sec.  1051.310 by revising paragraph (a)(1) introductory
text and paragraph (a)(1)(iv) to read as follows:

Sec.  1051.310  How must I select vehicles or engines for production-
line testing?

    (a) * * *
    (1) For engine families with projected U.S.-directed production
volume of at least 1,600, the test periods are consecutive quarters (3
months). However, if your annual production period is not 12 months
long, you may take the following alternative approach to define
quarterly test periods:
* * * * *
    (iv) If your annual production period is 301 days or longer, divide
the annual production period evenly into four test periods. For
example, if your annual production period is 392 days (56 weeks),
divide the annual production period into four test periods of 98 days
(14 weeks).
* * * * *
0
229. Amend Sec.  1051.501 by revising paragraph (d) to read as follows:

Sec.  1051.501  What procedures must I use to test my vehicles or
engines?

* * * * *
    (d) Fuels. Use the fuels meeting the following specifications:
    (1) Exhaust. Use the fuels and lubricants specified in 40 CFR part
1065, subpart H, for all the exhaust testing we require in this part.
For service accumulation, use the test fuel or any commercially
available fuel that is representative of the fuel that in-use engines
will use. The following provisions apply for using specific fuel types:
    (i) For gasoline-fueled engines, use the grade of gasoline
specified in 40 CFR 1065.710(c) for general testing. You may
alternatively use ethanol-blended gasoline meeting the specifications
described in 40 CFR 1065.710(b) for general testing without our advance
approval. If you use the ethanol-blended fuel for certifying a given
engine family, you may also use it for production-line testing or any
other testing you perform for that engine family under this part. If
you use the ethanol-blended fuel for certifying a given engine family,
we may use the ethanol-blended fuel or the specified neat gasoline test
fuel with that engine family.
    (ii) For diesel-fueled engines, use either low-sulfur diesel fuel
or ultra low-sulfur diesel fuel meeting the specifications in 40 CFR
1065.703. If you use sulfur-sensitive technology as defined in 40 CFR
1039.801 and you measure emissions using ultra low-sulfur diesel fuel,
you must add a permanent label near the fuel inlet with the following
statement: ``ULTRA LOW SULFUR FUEL ONLY''.
    (2) Fuel Tank Permeation. (i) For the preconditioning soak
described in Sec.  1051.515(a)(1) and fuel slosh durability test
described in Sec.  1051.515(d)(3), use the fuel specified in 40 CFR
1065.710(b), or the fuel specified in 40 CFR 1065.710(c) blended with
10 percent ethanol by volume. As an alternative, you may use Fuel CE10,
which is Fuel C as specified in ASTM D 471-98 (see 40 CFR 1060.810)
blended with 10 percent ethanol by volume.
    (ii) For the permeation measurement test in Sec.  1051.515(b), use
the fuel specified in 40 CFR 1065.710(c). As an alternative, you may
use any of the fuels specified in paragraph (d)(2)(i) of this section.
    (3) Fuel Hose Permeation. Use the fuel specified in 40 CFR
1065.710(b), or the fuel specified in 40 CFR 1065.710(c) blended with
10 percent ethanol by volume for permeation testing of fuel lines. As
an alternative, you may use Fuel CE10, which is Fuel C as specified in
ASTM D 471-98 (see 40 CFR 1060.810) blended with 10 percent ethanol by
volume.
* * * * *

PART 1054--CONTROL OF EMISSIONS FROM NEW, SMALL NONROAD SPARK-
IGNITION ENGINES AND EQUIPMENT

0
230. The authority statement for part 1054 continues to read as
follows:

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

0
231. Amend Sec.  1054.1 by revising paragraphs (a)(1) and (5), (c), and
(d) to read as follows:

Sec.  1054.1  Does this part apply for my engines and equipment?

    (a) * * *
    (1) The requirements of this part related to exhaust emissions
apply to new, nonroad spark-ignition engines with maximum engine power
at or below 19 kW. This includes auxiliary marine spark-ignition
engines.
* * * * *
    (5) We specify provisions in Sec.  1054.145(f) and in Sec.
1054.740 that allow for meeting the requirements of this part before
the dates shown in Table 1 to this section. Engines, fuel-system
components, or equipment certified to these standards are subject to
all the requirements of this part as if these optional standards were
mandatory.
* * * * *
    (c) Engines originally meeting Phase 1 or Phase 2 standards as
specified in Appendix I remain subject to those standards. Those
engines remain subject to recall provisions as specified in 40 CFR part
1068, subpart F, throughout

the useful life corresponding to the original certification. Also,
tampering and defeat-device prohibitions continue to apply for those
engines as specified in 40 CFR 1068.101.
    (d) The regulations in this part 1054 optionally apply to engines
with maximum engine power at or below 30 kW and with displacement at or
below 1,000 cubic centimeters that would otherwise be covered by 40 CFR
part 1048. See 40 CFR 1048.615 for provisions related to this
allowance.
* * * * *
0
232. Revise Sec.  1054.2 to read as follows:

Sec.  1054.2  Who is responsible for compliance?

    (a) The requirements and prohibitions of this part apply to
manufacturers of engines and equipment, as described in Sec.  1054.1.
The requirements of this part are generally addressed to manufacturers
subject to this part's requirements. The term ``you'' generally means
the certifying manufacturer. For provisions related to exhaust
emissions, this generally means the engine manufacturer, especially for
issues related to certification (including production-line testing,
reporting, etc.). For provisions related to certification with respect
to evaporative emissions, this generally means the equipment
manufacturer. Note that for engines that become new after being placed
into service (such as engines converted from highway or stationary
use), the requirements that normally apply for manufacturers of freshly
manufactured engines apply to the importer or any other entity we allow
to obtain a certificate of conformity.
    (b) Equipment manufacturers must meet applicable requirements as
described in Sec.  1054.20. Engine manufacturers that assemble an
engine's complete fuel system are considered to be the equipment
manufacturer with respect to evaporative emissions (see 40 CFR 1060.5).
Note that certification requirements for component manufacturers are
described in 40 CFR part 1060.
0
233. Revise Sec.  1054.30 to read as follows:

Sec.  1054.30  Submission of information.

    Unless we specify otherwise, send all reports and requests for
approval to the Designated Compliance Officer (see Sec.  1054.801). See
Sec.  1054.825 for additional reporting and recordkeeping provisions.
0
234. Amend Sec.  1054.103 by revising paragraph (c) introductory text
to read as follows:

Sec.  1054.103  What exhaust emission standards must my handheld
engines meet?

* * * * *
    (c) Fuel types. The exhaust emission standards in this section
apply for engines using the fuel type on which the engines in the
emission family are designed to operate. You must meet the numerical
emission standards for hydrocarbon in this section based on the
following types of hydrocarbon emissions for engines powered by the
following fuels:
* * * * *
0
235. Amend Sec.  1054.105 by revising paragraph (c) introductory text
to read as follows:

Sec.  1054.105  What exhaust emission standards must my nonhandheld
engines meet?

* * * * *
    (c) Fuel types. The exhaust emission standards in this section
apply for engines using the fuel type on which the engines in the
emission family are designed to operate. You must meet the numerical
emission standards for hydrocarbon in this section based on the
following types of hydrocarbon emissions for engines powered by the
following fuels:
* * * * *
0
236. Amend Sec.  1054.110 by revising paragraph (b) to read as follows:

Sec.  1054.110  What evaporative emission standards must my handheld
equipment meet?

* * * * *
    (b) Tank permeation. Fuel tanks must meet the permeation
requirements specified in 40 CFR 1060.103. These requirements apply for
handheld equipment starting in the 2010 model year, except that they
apply starting in the 2011 model year for structurally integrated nylon
fuel tanks, in the 2012 model year for handheld equipment using
nonhandheld engines, and in the 2013 model year for all small-volume
emission families. For nonhandheld equipment using engines at or below
80 cc, the requirements of this paragraph (b) apply starting in the
2012 model year. You may generate or use emission credits to show
compliance with the requirements of this paragraph (b) under the
averaging, banking, and trading program as described in subpart H of
this part. FEL caps apply as specified in Sec.  1054.112(b)(1) through
(3) starting in the 2015 model year.
* * * * *
0
237. Amend Sec.  1054.120 by revising paragraph (c) to read as follows:

Sec.  1054.120  What emission-related warranty requirements apply to
me?

* * * * *
    (c) Components covered. The emission-related warranty covers all
components whose failure would increase an engine's emissions of any
regulated pollutant, including 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 need to cover components whose failure would not
increase an engine's emissions of any regulated pollutant.
* * * * *
0
238. Amend Sec.  1054.125 by revising the introductory text and
paragraphs (c) and (e) to read as follows:

Sec.  1054.125  What maintenance instructions must I give to buyers?

    Give the ultimate purchaser of each new engine written instructions
for properly maintaining and using the engine, including the emission
control system as described in this section. The maintenance
instructions also apply to service accumulation on your emission-data
engines as described in Sec.  1054.245 and in 40 CFR part 1065.
* * * * *
    (c) Special maintenance. You may specify more frequent maintenance
to address problems related to special situations, such as atypical
engine operation. You must clearly state that this additional
maintenance is associated with the special situation you are
addressing. You may also address maintenance of low-use engines (such
as recreational or stand-by engines) by specifying the maintenance
interval in terms of calendar months or years in addition to your
specifications in terms of engine operating hours. All special
maintenance instructions must be consistent with good engineering
judgment. We may disapprove your maintenance instructions if we
determine that you have specified special maintenance steps to address
engine operation that is not atypical, or that the maintenance is
unlikely to occur in use. For example, this paragraph (c) does not
allow you to design engines that require special maintenance for a
certain type of expected operation. If we determine that certain
maintenance items do not qualify as special maintenance under this
paragraph (c), you may identify this as recommended additional

maintenance under paragraph (b) of this section.
* * * * *
    (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 fuel or oil filters,
servicing engine-cooling systems, and adjusting idle speed, governor,
engine bolt torque, valve lash, or injector lash. You may not perform
this nonemission-related maintenance on emission-data engines more
often than the least frequent intervals that you recommend to the
ultimate purchaser.
* * * * *
0
239. Amend Sec.  1054.130 by revising paragraphs (b)(2) and (5) to read
as follows:

Sec.  1054.130  What installation instructions must I give to equipment
manufacturers?

* * * * *
    (b) * * *
    (2) State: ``Failing to follow these instructions when installing a
certified engine in a piece of equipment violates federal law (40 CFR
1068.105(b)), subject to fines or other penalties as described in the
Clean Air Act.''
* * * * *
    (5) Describe how your certification is limited for any type of
application. For example, if you certify engines only for rated-speed
applications, tell equipment manufacturers that the engine must not be
installed in equipment involving intermediate-speed operation. Also, if
your wintertime engines are not certified to the otherwise applicable
HC+NOX standards, tell equipment manufacturers that the
engines must be installed in equipment that is used only in wintertime.
* * * * *
0
240. Amend Sec.  1054.135 by revising paragraphs (c)(2) and (e)(1) to
read as follows:

Sec.  1054.135  How must I label and identify the engines I produce?

* * * * *
    (c) * * *
    (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 branding provisions of 40 CFR 1068.45.
* * * * *
    (e) * * *
    (1) You may identify other emission standards that the engine meets
or does not meet (such as California standards), as long as this does
not cause you to omit any of the information described in paragraph (c)
of this section. You may include this information by adding it to the
statement we specify or by including a separate statement.
* * * * *
0
241. Revise Sec.  1054.145 to read as follows:

Sec.  1054.145  Are there interim provisions that apply only for a
limited time?

    The provisions in this section apply instead of other provisions in
this part. This section describes how and when these interim provisions
apply.
    (a)-(b) [Reserved]
    (c) Special provisions for handheld engines. Handheld engines
subject to Phase 3 emission standards must meet the standards at or
above barometric pressures of 96.0 kPa in the standard configuration
and are not required to meet emission standards at lower barometric
pressures. This is intended to allow testing under most weather
conditions at all altitudes up to 1,100 feet above sea level. In your
application for certification, identify the altitude above which you
rely on an altitude kit and describe your plan for making information
and parts available such that you would reasonably expect that altitude
kits would be widely used at all such altitudes.
    (d) Alignment of model years for exhaust and evaporative standards.
Evaporative emission standards generally apply based on the model year
of the equipment, which is determined by the equipment's date of final
assembly. However, in the first year of new emission standards,
equipment manufacturers may apply evaporative emission standards based
on the model year of the engine as shown on the engine's emission
control information label. For example, for the fuel line permeation
standards starting in 2012, equipment manufacturers may order a batch
of 2011 model year engines for installation in 2012 model year
equipment, subject to the anti-stockpiling provisions of 40 CFR
1068.105(a). The equipment with the 2011 model year engines would not
need to meet fuel line permeation standards, as long as the equipment
is fully assembled by December 31, 2012.
    (e) [Reserved]
    (f) Early banking for evaporative emission standards--handheld
equipment manufacturers. You may earn emission credits for handheld
equipment you produce before the evaporative emission standards of
Sec.  1054.110 apply. To do this, your equipment must use fuel tanks
with a family emission limit below 1.5 g/m\2\/day (or 2.5 g/m\2\/day
for testing at 40 [deg]C). Calculate your credits as described in Sec.
1054.706 based on the difference between the family emission limit and
1.5 g/m\2\/day (or 2.5 g/m\2\/day for testing at 40 [deg]C).
    (g) through (i) [Reserved]
    (j) Continued use of 40 CFR part 90 test data. You may continue to
use data based on the test procedures that apply for engines built
before the requirements of this part 1054 start to apply if we allow
you to use carryover emission data under 40 CFR 1054.235(d) for your
emission family. You may also use those test procedures for measuring
exhaust emissions for production-line testing with any engine family
whose certification is based on testing with those procedures. For any
EPA testing, we will rely on the procedures described in subpart F of
this part, even if you used carryover data based on older test
procedures as allowed under this paragraph (j).
    (k)-(m) [Reserved]
    (n) California test fuel. You may perform testing with a fuel
meeting the requirements for certifying the engine in California
instead of the fuel specified in Sec.  1054.501(b)(2), as follows:
    (1) You may certify individual engine families using data from
testing conducted with California Phase 2 test fuel through model year
2019. Any EPA testing with such an engine family may use either this
same certification fuel or the test fuel specified in Sec.  1054.501.
    (2) Starting in model year 2013, you may certify individual engine
families using data from testing conducted with California Phase 3 test
fuel. Any EPA testing with such an engine family may use either this
same certification fuel or the test fuel specified in Sec.  1054.501,
unless you certify to the more stringent CO standards specified in this
paragraph (n)(2). If you meet these alternate CO standards, we will
also use California Phase 3 test fuel for any testing we perform with
engines from that engine family. The following alternate CO standards
apply instead of the CO standards specified in Sec.  1054.103 or Sec.
1054.105:

   Table 1 to Sec.   1054.145--Alternate CO Standards for Testing With
                      California Phase 3 Test Fuel
                                [g/kW-hr]
------------------------------------------------------------------------
                                                           Alternate CO
                      Engine type                            standard
------------------------------------------------------------------------
Class I................................................              549
Class II...............................................              549
Class III..............................................              536
Class IV...............................................              536

Class V................................................              536
Marine generators......................................              4.5
------------------------------------------------------------------------

0
242. Amend Sec.  1054.205 by revising paragraphs (o)(1), (p)(1), (v),
and (x) to read as follows:

Sec.  1054.205  What must I include in my application?

* * * * *
    (o) * * *
    (1) Present emission data for hydrocarbon (such as THC, THCE, or
NMHC, as applicable), NOX, and CO on an emission-data engine
to show your engines meet the applicable exhaust emission standards as
specified in Sec.  1054.101. Show emission figures before and after
applying deterioration factors for each engine. Include test data from
each applicable duty cycle specified in Sec.  1054.505(b). If we
specify more than one grade of any fuel type (for example, low-
temperature and all-season gasoline), you need to submit test data only
for one grade, unless the regulations of this part specify otherwise
for your engine.
* * * * *
    (p) * * *
    (1) Report all valid test results involving measurement of
pollutants for which emission standards apply. Also indicate whether
there are test results from invalid tests or from any other tests of
the emission-data engine, whether or not they were conducted according
to the test procedures of subpart F of this part. We may require you to
report these additional test results. We may ask you to send other
information to confirm that your tests were valid under the
requirements of this part and 40 CFR parts 1060 and 1065.
* * * * *
    (v) Provide the following information about your plans for
producing and selling engines:
    (1) Identify the estimated initial and final dates for producing
engines from the engine family for the model year.
    (2) Identify the estimated date for initially introducing certified
engines into U.S. commerce under this certificate. We will not release
or share any information from your application for certification before
this date unless we learn separately that you have already introduced
certified engines into U.S. commerce.
    (3) Include good-faith estimates of U.S.-directed production
volumes. Include a justification for the estimated production volumes
if they are substantially different than actual production volumes in
earlier years for similar models. Also indicate whether you expect the
engine family to contain only nonroad engines, only stationary engines,
or both.
* * * * *
    (x) Include the information required by other subparts of this
part. For example, include the information required by Sec.  1054.725
if you participate in the ABT program and include the information
required by Sec.  1054.690 if you need to post a bond under that
section.
* * * * *
0
243. Amend Sec.  1054.220 by revising the section heading to read as
follows.

Sec.  1054.220  How do I amend my maintenance instructions?

* * * * *
0
244. Amend Sec.  1054.225 by:
0
a. Revising the section heading, paragraphs (b), (e), and paragraph (f)
introductory text; and
0
b. Adding paragraph (g).
    The revisions and addition read as follows:

Sec.  1054.225  How do I amend my application for certification?

* * * * *
    (b) To amend your application for certification, send the relevant
information to the Designated Compliance Officer.
    (1) Describe in detail the addition or change in the model or
configuration you intend to make.
    (2) Include engineering evaluations or data showing that the
amended emission family complies with all applicable requirements. You
may do this by showing that the original emission-data engine or
emission-data equipment is still appropriate for showing that the
amended family complies with all applicable requirements.
    (3) If the original emission-data engine for the engine family is
not appropriate to show compliance for the new or modified engine
configuration, include new test data showing that the new or modified
engine configuration meets the requirements of this part.
    (4) Include any other information needed to make your application
correct and complete.
* * * * *
    (e) The amended application applies starting with the date you
submit the amended application, as follows:
    (1) For emission families already covered by a certificate of
conformity, you may start producing a new or modified configuration
anytime after you send us your amended application and before we make a
decision under paragraph (d) of this section. However, if we determine
that the affected configurations do not meet applicable requirements,
we will notify you to cease production of the configurations and may
require you to recall the engine or equipment at no expense to the
owner. Choosing to produce engines under this paragraph (e) is deemed
to be consent to recall all engines or equipment that we determine do
not meet applicable emission standards or other requirements and to
remedy the nonconformity at no expense to the owner. If you do not
provide information required under paragraph (c) of this section within
30 days after we request it, you must stop producing the new or
modified engine or equipment.
    (2) If you amend your application to make the amended application
correct and complete, these changes do not apply retroactively. Also,
if we determine that your amended application is not correct and
complete, or otherwise does not conform to the regulation, we will
notify you and describe how to address the error.
    (f) You may ask us to approve a change to your FEL with respect to
exhaust emissions in certain cases after the start of production. The
changed FEL may not apply to engines you have already introduced into
U.S. commerce, except as described in this paragraph (f). If we approve
a changed FEL after the start of production, you must identify the
month and year for applying the new FEL. You may ask us to approve a
change to your FEL in the following cases:
* * * * *
    (g) You may produce engines as described in your amended
application for certification and consider those engines to be in a
certified configuration if we approve a new or modified engine
configuration during the model year under paragraph (d) of this
section. Similarly, you may modify in-use engines as described in your
amended application for certification and consider those engines to be
in a certified configuration if we approve a new or modified engine
configuration at any time under paragraph (d) of this section.
Modifying a new or in-use engine to be in a certified configuration
does not violate the tampering prohibition of 40 CFR 1068.101(b)(1), as
long as this does not involve changing

to a certified configuration with a higher family emission limit.
0
245. Amend Sec.  1054.235 by revising the section heading and
paragraphs (a), (b), (c), and (d) to read as follows:

Sec.  1054.235  What testing requirements apply for certification?

* * * * *
    (a) Select an emission-data engine from each engine family for
testing as described in 40 CFR 1065.401. Select a configuration and set
adjustable parameters in a way that is most likely to exceed the HC+NOX
standard, using good engineering judgment. Configurations must be
tested as they will be produced, including installed governors, if
applicable.
    (b) Test your emission-data engines using the procedures and
equipment specified in subpart F of this part. In the case of dual-fuel
engines, measure emissions when operating with each type of fuel for
which you intend to certify the engine. In the case of flexible-fuel
engines, measure emissions when operating with the fuel mixture that is
most likely to cause the engine to exceed the applicable
HC+NOX emission standard, though you may ask us to instead
perform tests with both fuels separately if you can show that
intermediate mixtures are not likely to occur in use.
    (c) We may perform confirmatory testing by measuring emissions from
any of your emission-data engines or other engines from the emission
family, as follows:
    (1) We may decide to do the testing at your plant or any other
facility. If we do this, you must deliver the engine to a test facility
we designate. The engine you provide must include appropriate
manifolds, aftertreatment devices, electronic control units, and other
emission-related components not normally attached directly to the
engine block. If we do the testing at your plant, you must schedule it
as soon as possible and make available the instruments, personnel, and
equipment we need.
    (2) If we measure emissions on one of your engines, the results of
that testing become the official emission results for the engine.
    (3) We may set the adjustable parameters of your engine to any
point within the physically adjustable ranges (see Sec.  1054.115(b)).
    (4) Before we test one of your engines, we may calibrate it within
normal production tolerances for anything we do not consider an
adjustable parameter. For example, this would apply for a parameter
that is subject to production variability because it is adjustable
during production, but is not considered an adjustable parameter (as
defined in Sec.  1054.801) because it is permanently sealed.
    (d) You may ask to use carryover emission data from a previous
model year instead of doing new tests, but only if all the following
are true:
    (1) The emission family from the previous model year differs from
the current emission family only with respect to model year, items
identified in Sec.  1054.225(a), or other characteristics unrelated to
emissions. We may waive this criterion for differences we determine not
to be relevant.
    (2) The emission-data engine from the previous model year remains
the appropriate emission-data engine under paragraph (b) of this
section.
    (3) The data show that the emission-data engine would meet all the
requirements that apply to the emission family covered by the
application for certification.
* * * * *
0
246. Amend Sec.  1054.240 by revising paragraphs (a), (b), (c), and (d)
to read as follows:

Sec.  1054.240  How do I demonstrate that my emission family complies
with exhaust emission standards?

    (a) For purposes of certification, your emission family is
considered in compliance with the emission standards in Sec.
1054.101(a) if all emission-data engines representing that family have
test results showing official emission results and deteriorated
emission levels at or below these standards. This also applies for all
test points for emission-data engines within the family used to
establish deterioration factors. Note that your FELs are considered to
be the applicable emission standards with which you must comply if you
participate in the ABT program in subpart H of this part.
    (b) Your engine family is deemed not to comply if any emission-data
engine representing that family has test results showing an official
emission result or a deteriorated emission level for any pollutant that
is above an applicable emission standard. This also applies for all
test points for emission-data engines within the family used to
establish deterioration factors.
    (c) Determine a deterioration factor to compare emission levels
from the emission-data engine with the applicable emission standards.
Section 1054.245 specifies how to test engines to develop deterioration
factors that represent the expected deterioration in emissions over
your engines' full useful life. Calculate a multiplicative
deterioration factor as described in Sec.  1054.245(b). If the
deterioration factor is less than one, use one. Specify the
deterioration factor to one more significant figure than the emission
standard. In the case of dual-fuel and flexible-fuel engines, apply
deterioration factors separately for each fuel type. You may use
assigned deterioration factors that we establish for up to 10,000
nonhandheld engines from small-volume emission families in each model
year, except that small-volume engine manufacturers may use assigned
deterioration factors for any or all of their engine families.
    (d) Determine the official emission result for each pollutant to at
least one more decimal place than the applicable standard. Apply the
deterioration factor to the official emission result, as described in
Sec.  1054.245(b), then round the adjusted figure to the same number of
decimal places as the emission standard. Compare the rounded emission
levels to the emission standard for each emission-data engine. In the
case of HC+NOX standards, add the official emission results
and apply the deterioration factor to the sum of the pollutants before
rounding. However, if your deterioration factors are based on emission
measurements that do not cover the engine's full useful life, apply
deterioration factors to each pollutant and then add the results before
rounding.
* * * * *
0
247. Amend Sec.  1054.245 by:
0
a. Revising paragraphs (a), (b)(1), (b)(3), (b)(5), and (c); and
0
b. Adding paragraph (d).
    The revisions and addition read as follows:

Sec.  1054.245  How do I determine deterioration factors from exhaust
durability testing?

* * * * *
    (a) You may ask us to approve deterioration factors for an emission
family based on emission measurements from similar engines if you have
already given us these data for certifying other engines in the same or
earlier model years. Use good engineering judgment to decide whether
the two engines are similar. We will approve your request if you show
us that the emission measurements from other engines reasonably
represent in-use deterioration for the engine family for which you have
not yet determined deterioration factors.
    (b) * * *
    (1) Measure emissions from the emission-data engine at a low-hour
test point, at the midpoint of the useful life, and at the end of the
useful life, except as specifically allowed by this paragraph (b). You
may test at

additional evenly spaced intermediate points. Collect emission data
using measurements to at least one more decimal place than the emission
standard.
* * * * *
    (3) In the case of dual-fuel or flexible-fuel engines, you may
accumulate service hours on a single emission-data engine using the
type or mixture of fuel expected to have the highest combustion and
exhaust temperatures; you may ask us to approve a different fuel
mixture for flexible-fuel engines if you demonstrate that a different
criterion is more appropriate. For dual-fuel engines, you must measure
emissions on each fuel type at each test point, either with separate
engines dedicated to a given fuel, or with different configurations of
a single engine.
* * * * *
    (5) Calculate your deterioration factor using a linear least-
squares fit of your test data, but treat the low-hour test point as
occurring at hour zero. Your deterioration factor is the ratio of the
calculated emission level at the point representing the full useful
life to the calculated emission level at zero hours, expressed to one
more decimal place than the applicable standard.
* * * * *
    (c) If you qualify for using assigned deterioration factors under
Sec.  1054.240, determine the deterioration factors as follows:
    (1) For two-stroke engines without aftertreatment, use a
deterioration factor of 1.1 for HC, NOX, and CO. For four-
stroke engines without aftertreatment, use deterioration factors of 1.4
for HC, 1.0 for NOX, and 1.1 for CO for Class 2 engines, and
use 1.5 for HC and NOX, and 1.1 for CO for all other
engines.
    (2) For Class 2 engines with aftertreatment, use a deterioration
factor of 1.0 for NOX. For all other cases involving engines
with aftertreatment, calculate separate deterioration factors for HC,
NOX, and CO using the following equation:
[GRAPHIC] [TIFF OMITTED] TP12MY20.074

Where:

NE = engine-out emission levels (pre-catalyst) from the low-hour
test result for a given pollutant, in g/kW-hr.
EDF = the deterioration factor specified in paragraph (c)(1) of this
section for the type of engine for a given pollutant.
CC = the catalyst conversion from the low-hour test, in g/kW-hr.
This is the difference between the official emission result and NE.
F = 1.0 for NOX and 0.8 for HC and CO.

    (3) Combine separate deterioration factors for HC and
NOX from paragraph (c)(2) of this section into a combined
deterioration factor for HC+NOX using the following
equation:
[GRAPHIC] [TIFF OMITTED] TP12MY20.075

    (d) Include the following information in your application for
certification:
    (1) If you determine your deterioration factors based on test data
from a different emission family, explain why this is appropriate and
include all the emission measurements on which you base the
deterioration factor.
    (2) If you do testing to determine deterioration factors, describe
the form and extent of service accumulation, including the method you
use to accumulate hours.
    (3) If you calculate deterioration factors under paragraph (c) of
this section, identify the parameters and variables you used for the
calculation.
0
248. Amend Sec.  1054.250 by:
0
a. Removing and reserving paragraph (a)(3); and
0
b. Revising paragraphs (b)(3)(iv) and (c).
    The revisions read as follows:

Sec.  1054.250  What records must I keep and what reports must I send
to EPA?

* * * * *
    (b) * * *
    (3) * * *
    (iv) All your emission tests (valid and invalid), including the
date and purpose of each test and documentation of test parameters as
specified in part 40 CFR part 1065.
* * * * *
    (c) Keep required data from emission tests and all other
information specified in this section for eight years after we issue
your certificate. If you use the same emission data or other
information for a later model year, the eight-year period restarts with
each year that you continue to rely on the information.
* * * * *
0
249. Revise Sec.  1054.255 to read as follows:

Sec.  1054.255  What decisions may EPA make regarding a certificate of
conformity?

    (a) If we determine an application is complete and shows that the
emission family meets all the requirements of this part and the Clean
Air Act, we will issue a certificate of conformity for the emission
family for that model year. We may make the approval subject to
additional conditions.
    (b) We may deny an application for certification if we determine
that an emission family fails to comply with emission standards or
other requirements of this part or the Clean Air Act. We will base our
decision on all available information. If we deny an application, we
will explain why in writing.
    (c) In addition, we may deny your application or suspend or revoke
a certificate of conformity if you do any of the following:
    (1) Refuse to comply with any testing, reporting, or bonding
requirements.
    (2) Submit false or incomplete information. This includes doing
anything after submitting an application that causes submitted
information to be false or incomplete.
    (3) Cause any test data to become inaccurate.
    (4) Deny us from completing authorized activities (see 40 CFR
1068.20). This includes a failure to provide reasonable assistance.
    (5) Produce engines or equipment for importation into the United
States at a location where local law prohibits us from carrying out
authorized activities.
    (6) Fail to supply requested information or amend an application to
include all engines or equipment being produced.
    (7) Take any action that otherwise circumvents the intent of the
Clean Air Act or this part, with respect to an emission family.
    (d) We may void a certificate of conformity for an emission family
if you fail to keep records, send reports, or give us information as
required under this part or the Clean Air Act. Note that these are also
violations of 40 CFR 1068.101(a)(2).
    (e) We may void a certificate of conformity for an emission family
if we find that you intentionally submitted false or incomplete
information. This includes doing anything after submitting your
application that causes the submitted information to be false or
incomplete.

    (f) If we deny an application or suspend, revoke, or void a
certificate of conformity, you may ask for a hearing (see Sec.
1054.820).
0
250. Amend Sec.  1054.301 by revising paragraph (a)(2) to read as
follows:

Sec.  1054.301  When must I test my production-line engines?

    (a) * * *
    (2) We may exempt small-volume emission families from routine
testing under this subpart. Submit your request for approval as
described in Sec.  1054.210. In your request, describe your basis for
projecting a production volume below 5,000 units. We will approve your
request if we agree that you have made good-faith estimates of your
production volumes. You must promptly notify us if your actual
production exceeds 5,000 units during the model year. If you exceed the
production limit or if there is evidence of a nonconformity, we may
require you to test production-line engines under this subpart, or
under 40 CFR part 1068, subpart E, even if we have approved an
exemption under this paragraph (a)(2).
* * * * *
0
251. Amend Sec.  1054.310 by revising paragraph (a)(1) introductory
text, paragraphs (a)(1)(iv), and (c)(2) introductory text to read as
follows:

Sec.  1054.310  How must I select engines for production-line testing?

    (a) * * *
    (1) For engine families with projected U.S.-directed production
volume of at least 1,600, the test periods are consecutive quarters (3
months). However, if your annual production period is not 12 months
long, you may take the following alternative approach to define
quarterly test periods:
* * * * *
    (iv) If your annual production period is 301 days or longer, divide
the annual production period evenly into four test periods. For
example, if your annual production period is 392 days (56 weeks),
divide the annual production period into four test periods of 98 days
(14 weeks).
* * * * *
    (c) * * *
    (2) Calculate the standard deviation, [sigma], for the test sample
using the following formula:
* * * * *
0
252. Amend Sec.  1054.315 by revising paragraph (a)(1) to read as
follows:

Sec.  1054.315  How do I know when my engine family fails the
production-line testing requirements?

* * * * *
    (a) * * *
    (1) Initial and final test results. Calculate and round the test
results for each engine. If you do multiple tests on an engine in a
given configuration (without modifying the engine), calculate the
initial results for each test, then add all the test results together
and divide by the number of tests. Round this final calculated value
for the final test results on that engine.
* * * * *
0
253. Amend Sec.  1054.320 by adding paragraph (c) to read as follows:

Sec.  1054.320  What happens if one of my production-line engines fails
to meet emission standards?

* * * * *
    (c) Use test data from a failing engine for the compliance
demonstration under Sec.  1054.315 as follows:
    (1) Use the original, failing test results as described in Sec.
1054.315, whether or not you modify the engine or destroy it.
    (2) Do not use test results from a modified engine as final test
results under Sec.  1054.315, unless you change your production process
for all engines to match the adjustments you made to the failing
engine. If this occurs, count the modified engine as the next engine in
the sequence, rather than averaging the results with the testing that
occurred before modifying the engine.
0
254. Amend Sec.  1054.501 by revising paragraphs (b)(1) and (2), and
paragraph (b)(4) introductory text to read as follows:

Sec.  1054.501  How do I run a valid emission test?

* * * * *
    (b) * * *
    (1) Measure the emissions of all exhaust constituents subject to
emission standards as specified in Sec.  1054.505 and 40 CFR part 1065.
Measure CO2, N2O, and CH4 as described
in Sec.  1054.235. See Sec.  1054.650 for special provisions that apply
for variable-speed engines (including engines shipped without
governors).
    (2) Use the appropriate fuels and lubricants specified in 40 CFR
part 1065, subpart H, for all the testing we require in this part.
Gasoline test fuel must meet the specifications in 40 CFR 1065.710(c),
except as specified in Sec.  1054.145(n), 40 CFR 1065.10, and 40 CFR
1065.701. Use gasoline specified for general testing except as
specified in paragraph (d) of this section. For service accumulation,
use the test fuel or any commercially available fuel that is
representative of the fuel that in-use engines will use. Note that
Sec.  1054.145(n) allows for testing with gasoline test fuels specified
by the California Air Resources Board for any individual engine family.
* * * * *
    (4) The provisions of 40 CFR 1065.405 describe how to prepare an
engine for testing. However, you may consider emission levels stable
without measurement after 12 hours of engine operation, except for the
following special provisions that apply for engine families with a
useful life of 300 hours or less:
* * * * *
0
255. Amend Sec.  1054.505 by revising paragraph (b)(2) to read as
follows:

Sec.  1054.505  How do I test engines?

* * * * *
    (b) * * *
    (2) For nonhandheld engines, use the six-mode duty cycle or the
corresponding ramped-modal cycle described in paragraph (b) of Appendix
II of this part. Control engine speeds and torques during idle mode as
specified in paragraph (c) of this section. Control engine speed during
the full-load operating mode as specified in paragraph (d) of this
section. For all other modes, control engine speed to within 5 percent
of the nominal speed specified in paragraph (d) of this section or let
the installed governor (in the production configuration) control engine
speed. For all modes except idle, control torque as needed to meet the
cycle-validation criteria in paragraph (a)(1) of this section. The
governor may be adjusted before emission sampling to target the nominal
speed identified in paragraph (d) of this section, but the installed
governor must control engine speed throughout the emission-sampling
period whether the governor is adjusted or not. Note that ramped-modal
testing involves continuous sampling, so governor adjustments may not
occur during such a test. Note also that our testing may involve
running the engine with the governor in the standard configuration even
if you adjust the governor as described in this paragraph (b)(2) for
certification or production-line testing.
* * * * *
0
256. Amend Sec.  1054.601 by adding paragraph (d) to read as follows:

Sec.  1054.601  What compliance provisions apply?

* * * * *
    (d) Subpart C of this part describes how to test and certify dual-
fuel and flexible-fuel engines. Some multi-fuel engines may not fit
either of those defined terms. For such engines, we will determine
whether it is most appropriate to treat them as single-fuel engines,
dual-fuel engines, or flexible-

fuel engines based on the range of possible and expected fuel mixtures.
0
257. Amend Sec.  1054.612 by revising the introductory text to read as
follows:

Sec.  1054.612  What special provisions apply for equipment
manufacturers modifying certified nonhandheld engines?

    The provisions of this section are limited to small-volume emission
families.
* * * * *
0
258. Amend Sec.  1054.620 by revising paragraph (c)(2) to read as
follows:

Sec.  1054.620  What are the provisions for exempting engines used
solely for competition?

* * * * *
    (c) * * *
    (2) Sale of the equipment in which the engine is installed must be
limited to professional competition teams, professional competitors, or
other qualified competitors. Engine manufacturers may sell loose
engines to these same qualified competitors, and to equipment
manufacturers supplying competition models for qualified competitors.
* * * * *

Sec.  Sec.  1054.625 and 1054.626  [Removed]

0
259. Remove Sec. Sec.  1054.625 and 1054.626.

Sec.  1054.635  [Amended]

0
260. Amend Sec.  1054.635 by removing and reserving paragraph (c)(6).

Sec.  1054.640  [Removed]

0
261. Remove Sec.  1054.640.
0
262. Revise Sec.  1054.655 to read as follows:

Sec.  1054.655  What special provisions apply for installing and
removing altitude kits?

    An action for the purpose of installing or modifying altitude kits
and performing other changes to compensate for changing altitude is not
considered a prohibited act under 40 CFR 1068.101(b) if it is done
consistent with the manufacturer's instructions.
0
263. Amend Sec.  1054.690 by revising paragraphs (f) and (i) to read as
follows:

Sec.  1054.690  What bond requirements apply for certified engines?

* * * * *
    (f) If you are required to post a bond under this section, you must
get the bond from a third-party surety that is cited in the U.S.
Department of Treasury Circular 570, ``Companies Holding Certificates
of Authority as Acceptable Sureties on Federal Bonds and as Acceptable
Reinsuring Companies'' (https://www.fiscal.treasury.gov/surety-bonds/circular-570.html). You must maintain this bond for every year in which
you sell certified engines. The surety agent remains responsible for
obligations under the bond for two years after the bond is cancelled or
expires without being replaced.
* * * * *
    (i) If you are required to post a bond under this section, you must
note that in your application for certification as described in Sec.
1054.205. Your certification is conditioned on your compliance with
this section. Your certificate is automatically suspended if you fail
to comply with the requirements of this section. This suspension
applies with respect to all engines in your possession as well as all
engines being imported or otherwise introduced into U.S. commerce. For
example, if you maintain a bond sufficient to cover 500 engines, you
may introduce into U.S. commerce only 500 engines under your
certificate; your certificate would be automatically suspended for any
additional engines. Introducing such additional engines into U.S.
commerce would violate 40 CFR 1068.101(a)(1). For importation, U.S.
Customs may deny entry of engines lacking the necessary bond. This
would apply if there is no bond, or if the value of the bond is not
sufficient for the appropriate production volumes. We may also revoke
your certificate.
* * * * *
0
264. Amend Sec.  1054.701 by revising paragraph (c)(2), paragraph (i)
introductory text, and paragraph (i)(1) to read as follows:

Sec.  1054.701  General provisions.

* * * * *
    (c) * * *
    (2) Handheld engines and nonhandheld engines are in separate
averaging sets with respect to exhaust emissions except as specified in
Sec.  1054.740(e). You may use emission credits generated with Phase 2
engines for Phase 3 handheld engines only if you can demonstrate that
those credits were generated by handheld engines, except as specified
in Sec.  1054.740(e). Similarly, you may use emission credits generated
with Phase 2 engines for Phase 3 nonhandheld engines only if you can
demonstrate that those credits were generated by nonhandheld engines,
subject to the provisions of Sec.  1054.740.
* * * * *
    (i) As described in Sec.  1054.730, compliance with the
requirements of this subpart is determined at the end of the model year
based on actual U.S.-directed production volumes. Do not include any of
the following engines or equipment to calculate emission credits:
    (1) Engines or equipment with a permanent exemption under subpart G
of this part or under 40 CFR part 1068.
* * * * *
0
265. Amend Sec.  1054.710 by revising paragraph (c) to read as follows:

Sec.  1054.710  How do I average emission credits?

* * * * *
    (c) If you certify a family to an FEL that exceeds the otherwise
applicable standard, you must obtain enough emission credits to offset
the family's deficit by the due date for the final report required in
Sec.  1054.730. The emission credits used to address the deficit may
come from your other families that generate emission credits in the
same model year, from emission credits you have banked from previous
model years, or from emission credits generated in the same or previous
model years that you obtained through trading.
0
266. Amend Sec.  1054.715 by revising paragraph (b) to read as follows:

Sec.  1054.715  How do I bank emission credits?

* * * * *
    (b) You may designate any emission credits you plan to bank in the
reports you submit under Sec.  1054.730 as reserved credits. During the
model year and before the due date for the final report, you may
designate your reserved emission credits for averaging or trading.
* * * * *
0
267. Amend Sec.  1054.725 by revising paragraph (b)(2) to read as
follows:

Sec.  1054.725  What must I include in my application for
certification?

* * * * *
    (b) * * *
    (2) Detailed calculations of projected emission credits (positive
or negative) based on projected production volumes. We may require you
to include similar calculations from your other engine families to
demonstrate that you will be able to avoid negative credit balances for
the model year. If you project negative emission credits for a family,
state the source of positive emission credits you expect to use to
offset the negative emission credits.
0
268. Amend Sec.  1054.730 by revising paragraphs (b)(1), (b)(3),
(b)(4), (d)(1)(iii), and (d)(2)(iii) to read as follows:

Sec.  1054.730  What ABT reports must I send to EPA?

* * * * *
    (b) * * *

    (1) Family designation and averaging set.
* * * * *
    (3) The FEL for each pollutant. If you change the FEL after the
start of production, identify the date that you started using the new
FEL and/or give the engine identification number for the first engine
covered by the new FEL. In this case, identify each applicable FEL and
calculate the positive or negative emission credits as specified in
Sec.  1054.225.
    (4) The projected and actual U.S.-directed production volumes for
the model year as described in Sec.  1054.701(i). For fuel tanks, state
the production volume in terms of surface area and production volume
for each fuel tank configuration and state the total surface area for
the emission family. If you changed an FEL during the model year,
identify the actual U.S.-directed production volume associated with
each FEL.
* * * * *
    (d) * * *
    (1) * * *
    (iii) The averaging set corresponding to the families that
generated emission credits for the trade, including the number of
emission credits from each averaging set.
    (2) * * *
    (iii) How you intend to use the emission credits, including the
number of emission credits you intend to apply for each averaging set.
* * * * *
0
269. Amend Sec.  1054.735 by revising paragraphs (a) and (b) to read as
follows:

Sec.  1054.735  What records must I keep?

    (a) You must organize and maintain your records as described in
this section.
    (b) Keep the records required by this section for at least eight
years after the due date for the end-of-year report. You may not use
emission credits for any engines or equipment if you do not keep all
the records required under this section. You must therefore keep these
records to continue to bank valid credits.
* * * * *
0
270. Amend Sec.  1054.740 by revising paragraph (c) and removing and
reserving paragraph (d) to read as follows:

Sec.  1054.740  What special provisions apply for generating and using
emission credits?

* * * * *
    (c) You may not use emission credits generated by nonhandheld
engines certified to Phase 2 emission standards to demonstrate
compliance with the Phase 3 exhaust emission standards in 2014 and
later model years.
* * * * *
0
271. Amend Sec.  1054.801 by:
0
a. Revising the definition for ``Designated Compliance Officer''.
0
b. Removing the definition for ``Dual-fuel engine''.
0
c. Adding a definition for ``Dual-fuel'' in alphabetical order.
0
d. Revising the definition for ``Engine configuration'' and ``Equipment
manufacturer''.
0
e. Removing the definition for ``Flexible-fuel engine''.
0
f. Adding a definition for ``Flexible-fuel'' in alphabetical order.
0
g. Revising the definitions for ``Fuel type'', ``Handheld'', ``New
nonroad engine'', ``New nonroad equipment'', ``Nonmethane
hydrocarbon''. ``Nonroad engine'', ``Phase 1'', ``Phase 2'', and
``Placed into service''.
0
h. Removing the definition for ``Pressurized oil system''.
0
i. Revising the definitions for ``Small-volume emission family'',
``Small-volume equipment manufacturer'', ``Total hydrocarbon'', and
``Total hydrocarbon equivalent''.
    The new and revised definitions read as follows:

Sec.  1054.801  What definitions apply to this part?

* * * * *
    Designated Compliance Officer means the Director, Gasoline Engine
Compliance Center, U.S. Environmental Protection Agency, 2000
Traverwood Drive, Ann Arbor, MI 48105<EMAIL_ADDRESS>* * * * *
    Dual-fuel means relating to an engine designed for operation on two
different fuels but not on a continuous mixture of those fuels (see
Sec.  1054.601(d)). For purposes of this part, such an engine remains a
dual-fuel engine even if it is designed for operation on three or more
different fuels.
* * * * *
    Engine configuration means a unique combination of engine hardware
and calibration within an emission family. Engines within a single
engine configuration differ only with respect to normal production
variability or factors unrelated to emissions.
* * * * *
    Equipment manufacturer means a manufacturer of nonroad equipment.
All nonroad equipment manufacturing entities under the control of the
same person are considered to be a single nonroad equipment
manufacturer.
* * * * *
    Flexible-fuel means relating to an engine designed for operation on
any mixture of two or more different fuels (see Sec.  1054.601(d)).
* * * * *
    Fuel type means a general category of fuels such as gasoline or
natural gas. There can be multiple grades within a single fuel type,
such as premium gasoline, regular gasoline, or low-level ethanol-
gasoline blends.
* * * * *
    Handheld means relating to equipment that meets any of the
following criteria:
    (1) It is carried by the operator throughout the performance of its
intended function.
    (2) It is designed to operate multi-positionally, such as upside
down or sideways, to complete its intended function.
    (3) It has a combined engine and equipment dry weight under 16.0
kilograms, has no more than two wheels, and at least one of the
following attributes is also present:
    (i) The operator provides support or carries the equipment
throughout the performance of its intended function. Carry means to
completely bear the weight of the equipment, including the engine.
Support means to hold a piece of equipment in position to prevent it
from falling, slipping, or sinking, without carrying it.
    (ii) The operator provides support or attitudinal control for the
equipment throughout the performance of its intended function.
Attitudinal control involves regulating the horizontal or vertical
position of the equipment.
    (4) It is an auger with a combined engine and equipment dry weight
under 22.0 kilograms.
    (5) It is used in a recreational application with a combined total
vehicle dry weight under 20.0 kilograms.
    (6) It is a hand-supported jackhammer or rammer/compactor. This
does not include equipment that can remain upright without operator
support, such as a plate compactor.
* * * * *
    New nonroad engine means any of the following things:
    (1) A freshly manufactured nonroad engine for which the ultimate
purchaser has never received the equitable or legal title. This kind of
engine might commonly be thought of as ``brand new.'' In the case of
this paragraph (1), the engine is new from the time it is produced
until the ultimate purchaser receives the title or the product is
placed into service, whichever comes first.
    (2) An engine originally manufactured as a motor vehicle engine or
a stationary

engine that is later used or intended to be used in a piece of nonroad
equipment. In this case, the engine is no longer a motor vehicle or
stationary engine and becomes a ``new nonroad engine.'' The engine is
no longer new when it is placed into nonroad service. This paragraph
(2) applies if a motor vehicle engine or a stationary engine is
installed in nonroad equipment, or if a motor vehicle or a piece of
stationary equipment is modified (or moved) to become nonroad
equipment.
    (3) A nonroad engine that has been previously placed into service
in an application we exclude under Sec.  1054.5, when that engine is
installed in a piece of equipment that is covered by this part 1054.
The engine is no longer new when it is placed into nonroad service
covered by this part 1054. For example, this would apply to a marine-
propulsion engine that is no longer used in a marine vessel but is
instead installed in a piece of nonroad equipment subject to the
provisions of this part.
    (4) An engine not covered by paragraphs (1) through (3) of this
definition that is intended to be installed in new nonroad equipment.
This generally includes installation of used engines in new equipment.
The engine is no longer new when the ultimate purchaser receives a
title for the equipment or the product is placed into service,
whichever comes first.
    (5) An imported nonroad engine, subject to the following
provisions:
    (i) An imported nonroad engine covered by a certificate of
conformity issued under this part that meets the criteria of one or
more of paragraphs (1) through (4) of this definition, where the
original engine manufacturer holds the certificate, is new as defined
by those applicable paragraphs.
    (ii) An imported engine that will be covered by a certificate of
conformity issued under this part, where someone other than the
original engine manufacturer holds the certificate (such as when the
engine is modified after its initial assembly), is a new nonroad engine
when it is imported. It is no longer new when the ultimate purchaser
receives a title for the engine or it is placed into service, whichever
comes first.
    (iii) An imported nonroad engine that is not covered by a
certificate of conformity issued under this part at the time of
importation is new. This addresses uncertified engines and equipment