a. By removing the introductory text.
    b. By removing and reserving paragraph (a).
    c. By removing paragraph (b) introductory text.
    d. By removing and reserving paragraphs (b)(1) through (2).
    e. By removing paragraph (b)(3) introductory text.
    f. By removing and reserving paragraphs (b)(3)(i) through (v).
    g. By removing paragraph (b)(3)(vi) introductory text.
    h. By removing and reserving paragraphs (b)(3)(vi)(A) through (D).
    i. By removing paragraphs (b)(3)(vii), (b)(4) through (7), and (c)
through (h).

Sec.  86.098-26  [Amended]

    70. Section 86.098-26 is amended as follows:
    a. By removing the introductory text.
    b. By removing and reserving paragraphs (a)(1) through (2).
    c. By removing the text of paragraphs (a)(3) introductory text and
(a)(3)(i) introductory text.
    d. By removing and reserving paragraphs (a)(3)(i)(A) through (B).
    e. By removing paragraph (a)(3)(i)(D).
    f. By removing paragraph (a)(3)(ii) introductory text.
    g. By removing and reserving paragraphs (a)(3)(ii)(A) through (B).
    h. By removing paragraphs (a)(3)(ii)(D) and (a)(4) through (11).
    i. By removing and reserving paragraph (b).
    j. By removing paragraphs (c) through (d).

Sec.  86.098-28  [Amended]

    71. Section 86.098-28 is amended as follows:
    a. By removing the introductory text.
    b. By removing and reserving paragraphs (a)(1) through (a)(3).
    c. By removing the text of paragraph (a)(4)(i) introductory text.
    d. By removing and reserving paragraphs (a)(4)(i)(A) through (B)
and (a)(4)(ii)(A).
    e. By removing paragraphs (a)(4)(iii) through (iv).
    f. By removing and reserving paragraphs (a)(5) through (6),
(a)(7)(i) through (ii), and (b).
    g. By removing paragraphs (c) through (h).

Sec.  86.098-30  [Amended]

    72. Section 86.098-30 is amended as follows:
    a. By removing the introductory text.
    b. By removing and reserving paragraphs (a)(1) through (18),
(b)(1), and (b)(3).
    c. By removing paragraph (b)(4) introductory text.
    d. By removing and reserving paragraphs (b)(4)(i) and
(b)(4)(ii)(A).
    e. By removing paragraphs (b)(5) through (f).

Sec.  86.099-8  [Amended]

    73. Section 86.099-8 is amended as follows:
    a. By removing the introductory text.
    b. By removing paragraph (a)(1) introductory text.
    c. By removing and reserving paragraphs (a)(1)(i) through (ii),
(b)(5), and (c).
    d. By removing paragraphs (e) through (k).

Sec.  86.099-9  [Amended]

    74. Section 86.099-9 is amended as follows:
    a. By removing the introductory text.
    b. By removing paragraph (a)(1) introductory text.
    c. By removing and reserving paragraphs (a)(1)(i) through (iii).
    d. By removing paragraph (c) through (k).

Subpart B--[Amended]

    75. Section 86.138-96 is amended by revising paragraph (k) to read
as follows:

Sec.  86.138-96  Hot soak test.

* * * * *
    (k) For the supplemental two-diurnal test sequence (see Sec.
86.130-96), perform a hot soak test as described in this section,
except that the test shall be conducted within seven minutes after
completion of the hot start exhaust test and temperatures throughout
the hot soak measurement period must be between 68[deg] and 86 [deg]F.
This hot soak test is followed by two consecutive diurnal heat builds,
described in Sec.  86.133-96(p).
* * * * *
    76. Section 86.144-94 is amended by revising paragraph (c)(7)(ii)
to read as follows:

Sec.  86.144-94  Calculations; exhaust emissions.

* * * * *
    (c) * * *
    (7) * * *
    (ii) For methanol-fueled vehicles, where fuel composition is
CxHyOz as measured, or calculated, for
the fuel used:
[GRAPHIC] [TIFF OMITTED] TP28AU09.008

* * * * *

Subpart E--[Amended]

    77. Section 86.415-78 is amended by revising paragraph (b) to read
as follows:

Sec.  86.415-78  Production vehicles.

* * * * *
    (b) Any manufacturer obtaining certification shall notify the
Administrator of the number of vehicles of each engine family-engine
displacement-emission control system-fuel system-transmission type-
inertial mass category combination produced for sale in the United
States during the preceding year. This report must be submitted every
year within 45 days after the end of the model year.
* * * * *

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

    78. The heading for subpart G is revised as set forth above.
    79. Section 86.601-84 is amended by revising the introductory text
to read as follows:

Sec.  86.601-84  Applicability.

    The provisions of this subpart apply to light-duty vehicles, light-
duty trucks, and heavy-duty vehicles. References to ``light-duty
vehicle'' or ``LDT'' in this subpart G shall be deemed to include
light-duty trucks and heavy-duty vehicles as appropriate.
* * * * *
    80. Subpart K is revised to read as follows:

Subpart K--Selective Enforcement Auditing of New Heavy-Duty Engines

Sec.  86.1001  Applicability.

    The selective enforcement auditing program described in 40 CFR part
1068, subpart E, applies for all heavy-duty engines. In addition, the
provisions of 40 CFR 1068.10 and 1068.20 apply for any selective
enforcement audits of these engines.

Subpart N--[Amended]

    81. Section 86.1305-2010 is amended by revising paragraph (h)(2) to
read as follows:

Sec.  86.1305-2010  Introduction; structure of subpart.

* * * * *
    (h) * * *
    (2) Follow the provisions of 40 CFR 1065.342 to verify the
performance of any sample dryers in your system. Correct your
measurements according to 40 CFR 1065.659, except use the value of
Kw in Sec.  86.1342-90(i) as the value of (1--
xH2Oexh) in Equation 1065.659-1.
* * * * *

Subpart T--[Amended]

    82. Section 86.1910 is amended by revising paragraph (d) to read as
follows:

Sec.  86.1910  How must I prepare and test my in-use engines?

* * * * *
    (d) You must test the selected engines while they remain installed
in the vehicle. Use portable emission sampling equipment and field-
testing procedures referenced in Sec.  86.1375. Measure emissions of
THC, NMHC (by any method specified in 40 CFR part 1065, subpart J), CO,
NOx, PM (as appropriate), and CO2. Measure or
determine O2 emissions using good engineering judgment.
* * * * *

PART 1027-- FEES FOR ENGINE, VEHICLE, AND EQUIPMENT COMPLIANCE
PROGRAMS

    83. The authority citation for part 1027 continues to read as
follows:

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

    84. Section 1027.101 is amended by revising paragraphs (a)(2)(iii)
and (d) and adding paragraph (a)(4) to read as follows:

Sec.  1027.101  To whom do these requirements apply?

    (a) * * *
    (2) * * *
    (iii) Marine compression-ignition engines we regulate under 40 CFR
part 94, or 1042, or 1043.
* * * * *
    (4) Portable fuel containers we certify under 40 CFR part 59,
subpart F.
* * * * *
    (d) Paragraph (a) of this section identifies the parts of the CFR
that define emission standards and other requirements for particular
types of engines, vehicles, and fuel-system components. This part 1027
refers to each of these other parts generically as the ``standard-
setting part.'' For example, 40 CFR part 1051 is always the standard-
setting part for recreational vehicles. For some nonroad engines, we
allow for certification related to evaporative emissions separate from
exhaust emissions. In this case, 40 CFR part 1060 is the standard-
setting part for the equipment or fuel system components you produce.
* * * * *
    85. Section 1027.105 is amended by revising paragraph (b)(3) to
read as follows:

Sec.  1027.105  How much are the fees?

* * * * *
    (b) * * *
    (3) The following fees apply for nonroad and stationary engines,
vehicles, equipment, and components:

------------------------------------------------------------------------
             Category                 Certificate type          Fee
------------------------------------------------------------------------
(i) Locomotives and locomotive      All.................            $826
 engines.
(ii) Marine compression-ignition    All, including Annex             826
 engines and stationary              VI.
 compression-ignition engines with
 per-cylinder displacement at or
 above 10 liters.
(iii) Other nonroad compression-    All.................           1,822
 ignition engines and stationary
 compression-ignition engines with
 per-cylinder displacement below
 10 liters.
(iv) Large SI engines.............  All.................             826
(v) Stationary spark-ignition       All.................             826
 engines above 19 kW.
(vi) Marine SI engines and small    Exhaust only........             826
 SI engines.
(vii) Stationary spark-ignition     Exhaust only........             826
 engines at or below 19 kW.
(viii) Recreational vehicles......  Exhaust (or combined             826
                                     exhaust and evap).
(ix) Equipment and fuel-system      Evap (where separate             241
 components associated with          certification is
 nonroad and stationary spark-       required).
 ignition engines, including
 portable fuel containers.
------------------------------------------------------------------------

* * * * *
    86. Section 1027.150 is amended by revising the definition of
``Annex VI'' to read as follows:

Sec.  1027.150  What definitions apply to this subpart?

* * * * *
    Annex VI means MARPOL Annex VI, which is an annex to the
International Convention on the Prevention of Pollution from Ships,
1973, as modified by the protocol of 1978 relating thereto. Note that
40 CFR part 1043 contains regulations implementing portions of Annex
VI, including certain certification provisions.
* * * * *

PART 1033--CONTROL OF EMISSIONS FROM LOCOMOTIVES

    87. The authority citation for part 1033 continues to read as
follows:

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

Subpart A--[Amended]

    88. Section 1033.15 is amended by revising paragraph (a) to read as
follows:

Sec.  1033.15  Other regulation parts that apply for locomotives?

    (a) Part 1065 of this chapter describes procedures and equipment
specifications for testing engines to measure exhaust emissions.
Subpart F of this part 1033 describes how to apply the provisions of
part 1065 of this chapter to test locomotives to determine whether they
meet the exhaust emission standards in this part.
* * * * *
    89. A new Sec.  1033.30 is added to subpart A to read as follows:

Sec.  1033.30  Submission of information.

    (a) This part includes various requirements to record data or other
information. Refer to Sec.  1033.925 and 40 CFR 1068.25 regarding
recordkeeping requirements. If recordkeeping requirements are not
specified, store these records in any format and on any media and keep
them readily available for one year after you send an associated
application for certification, or one year after you generate the data
if they do not support an application for certification. You must
promptly send us organized, written records in English if we ask for
them. We may review them at any time.
    (b) The regulations in Sec.  1033.255 and 40 CFR 1068.101 describe
your obligation to report truthful and complete information and the
consequences of failing to meet this obligation. This includes
information not related to certification.
    (c) Send all reports and requests for approval to the Designated
Compliance Officer (see Sec.  1033.901).
    (d) Any written information we require you to send to or receive
from another company is deemed to be a required record under this
section. Such records are also deemed to be submissions to EPA. We may
require you to send us these records whether or not you are a
certificate holder.

Subpart B--[Amended]

    90. Section 1033.101 is amended by revising paragraph (d) to read
as follows:

Sec.  1033.101  Exhaust emission standards.

* * * * *
    (d) Averaging, banking, and trading. You may generate or use
emission credits under the averaging, banking, and trading (ABT)
program as described in subpart H of this part to comply with the
NOX and/or PM standards of this part. You may also use ABT
to comply with the Tier 4 HC standards of this part as described in
paragraph (j) of this section. Generating or using emission credits
requires that you specify a family emission limit (FEL) for each
pollutant you include in the ABT program for each engine family. These
FELs serve as the emission standards for the engine family with respect
to all required testing instead of the standards specified in
paragraphs (a) and (b) of this section. FELs may not be higher than the
following limits:
    (1) FELs for Tier 0 and Tier 1 locomotives originally manufactured
before 2002 may have any value.
    (2) FELs for Tier 1 locomotives originally manufactured 2002
through 2004 may not exceed 9.5 g/bhp-hr for NOX emissions
or 0.60 g/bhp-hr for PM emissions measured over the line-haul duty
cycle. FELs for these locomotives may not exceed 14.4 g/bhp-hr for
NOX emissions or 0.72 g/bhp-hr for PM emissions measured
over the switch duty cycle.
    (3) FELs for Tier 2 and Tier 3 locomotives may not exceed the Tier
1 standards of this section.
    (4) FELs for Tier 4 locomotives may not exceed the Tier 3 standards
of this section.
* * * * *
    91. Section 1033.120 is amended by revising paragraph (c) to read
as follows:

Sec.  1033.120  Emission-related warranty requirements.

* * * * *
    (c) Components covered. The emission-related warranty covers all
components whose failure would increase a locomotive's emissions of any
regulated pollutant. This includes components listed in 40 CFR part
1068, Appendix I, and components from any other system you develop to
control emissions. The emission-related warranty covers the components
you sell even if another company produces the component. Your emission-
related warranty does not cover components whose failure would not
increase a locomotive's emissions of any regulated pollutant. For
remanufactured locomotives, your emission-related warranty is required
to cover only those parts that you supply or those parts for which you
specify allowable part manufacturers. It does not need to cover used
parts that are not replaced during the remanufacture.
* * * * *
    92. Section 1033.150 is amended by revising paragraph (a)(4) to
read as follows:

Sec.  1033.150  Interim provisions.

* * * * *
    (a) * * *
    (4) Estimate costs as described in this paragraph (a)(4).
    (i) The cost limits described in paragraph (a)(1) of this section
are specified in terms of 2007 dollars. Adjust these values for future
years according to the following equation:

Actual Limit = (2007 Limit) x [(0.6000) x (Commodity Index) + (0.4000)
x (Earnings Index)

Where:

2007 Limit = The value specified in paragraph (a)(1) of this section
($250,000 or $125,000).
Commodity Index = The U.S. Bureau of Labor Statistics Producer Price
Index for Industrial Commodities Less Fuel (Series WPU03T15M05) for
the month prior to the date you submit your application divided by
173.1.
Earnings Index = The U.S. Bureau of Labor Statistics Estimated
Average Hourly Earnings of Production Workers for Durable
Manufacturing (Series CES3100000008) for the month prior to the date
you submit your application divided by 18.26.

    (ii) Calculate all costs in current dollars (for the month prior to
the date you submit your application). Calculate fuel costs based on a
fuel price adjusted by the Association of American Railroads' monthly
railroad fuel price index (P), which is available at https: //
www.aar.org/~/media/AAR/RailCostIndexes/Index_MonthlyFuelPrices.ashx.
(Use the value for the column in which P equals 539.8 for November
2007.) Calculate a new fuel price using the following equation:

Fuel Price = ($2.76 per gallon) x (P/539.8)
* * * * *

Subpart C--[Amended]

    93. Section 1033.220 is amended by revising the introductory text
and paragraph (a) to read as follows:

Sec.  1033.220  Amending maintenance instructions.

    You may amend your emission-related maintenance instructions after
you submit your application for certification, as long as the amended
instructions remain consistent with the provisions of Sec.  1033.125.
You must send the Designated Compliance Officer a request to amend your
application for certification for an engine family if you want to
change the emission-related maintenance instructions in a way that
could affect emissions. In your request, describe the proposed changes
to the maintenance instructions. If owners/operators follow the
original maintenance instructions rather than the newly specified
maintenance, this does not allow you to disqualify those locomotives
from in-use testing or deny a warranty claim.
    (a) If you are decreasing or eliminating any of the specified
maintenance, you may distribute the new maintenance instructions to
your customers 30 days after we receive your request, unless we
disapprove your request. This would generally include replacing one
maintenance step with another. We may approve a shorter time or waive
this requirement.
* * * * *
    94. Section 1033.225 is amended by revising paragraphs (b)(2), (e),
and (f) to read as follows:

Sec.  1033.225  Amending applications for certification.

* * * * *
    (b) * * *
    (2) Include engineering evaluations or data showing that the
amended engine family complies with all applicable requirements. You
may do this by showing that the original emission-data locomotive is
still appropriate for showing that the amended family complies with all
applicable requirements.
* * * * *
    (e) For engine families already covered by a certificate of
conformity, you may start producing the new or modified locomotive
anytime after you send us your amended application, before we make a
decision under paragraph (d) of this section. However, if we determine
that the affected locomotives do not meet applicable requirements, we
will notify you to cease production of the locomotives and may require
you to recall the locomotives at no expense to the owner. Choosing to
produce locomotives under this paragraph (e) is deemed to be consent to
recall all locomotives 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
locomotives.
    (f) You may ask us to approve a change to your FEL in certain cases
after the start of production. The changed FEL may not apply to
locomotives 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 include the new FEL on the emission
control information label for all locomotives produced after the
change. You may ask us to approve a change to your FEL in the following
cases:
    (1) You may ask to raise your FEL for your engine family at any
time. In your request, you must show that you will still be able to
meet the emission standards as specified in subparts B and H of this
part. If you amend your application by submitting new test data to
include a newly added or modified locomotive, as described in paragraph
(b)(3) of this section, use the appropriate FELs with corresponding
production volumes to calculate emission credits for the model year, as
described in subpart H of this part. In all other circumstances, you
must use the higher FEL for the entire family to calculate emission
credits under subpart H of this part.
    (2) You may ask to lower the FEL for your emission family only if
you have test data from production locomotives showing that emissions
are below the proposed lower FEL. The lower FEL applies only to engines
or fuel-system components you produce after we approve the new FEL. Use
the appropriate FELs with corresponding production volumes to calculate
emission credits for the model year, as described in subpart H of this
part.
    95. Section 1033.235 is amended by revising paragraphs (c) and (d)
introductory text to read as follows:

Sec.  1033.235  Emission testing required for certification.

* * * * *
    (c) We may measure emissions from any of your emission-data
locomotives or other locomotives from the engine family.
    (1) We may decide to do the testing at your plant or any other
facility. If we do this, you must deliver the locomotive to a test
facility we designate. 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 from one of your locomotives, the
results of that testing become the official emission results for the
locomotive. Unless we later invalidate these data, we may decide not to
consider your data in determining if your engine family meets
applicable requirements.
    (3) Before we test one of your locomotives, we may set its
adjustable parameters to any point within the adjustable ranges (see
Sec.  1033.115(b)).
    (4) Before we test one of your locomotives, we may calibrate it
within normal production tolerances for anything we do not consider an
adjustable parameter. For example, this would apply where we determine
that an engine parameter is not an adjustable parameter (as defined in
Sec.  1042.901) but that it is subject to production variability.
    (d) You may ask to use carryover emission data from a previous
model year instead of doing new tests if all the following are true:
* * * * *
    96. Section 1033.240 is amended by revising paragraph (b)
introductory text to read as follows:

Sec.  1033.240  Demonstrating compliance with exhaust emission
standards.

* * * * *
    (b) Your engine family is deemed not to comply if any emission-data
locomotive representing that family has test results showing a
deteriorated emission level for any pollutant that is above an
applicable emission standard . Use the following steps to determine the
deteriorated emission level for the test locomotive:
* * * * *
    97. Section 1033.255 is amended by revising paragraph (b) to read
as follows:

Sec.  1033.255  EPA decisions.

* * * * *
    (b) We may deny your application for certification if we determine
that your engine family fails to comply with emission standards or
other requirements of this part or the Clean Air Act. We will base our
decision on all available information. If we deny

your application, we will explain why in writing.
* * * * *

Subpart D--[Amended]

    98. Section 1033.325 is amended by revising paragraph (d) to read
as follows:

Sec.  1033.325  Maintenance of records; submittal of information.

* * * * *
    (d) Nothing in this section limits our authority to require you to
establish, maintain, keep or submit to us information not specified by
this section. We may also ask you to send less information.
* * * * *

Subpart F--[Amended]

    99. Section 1033.501 is amended by revising paragraph (i) to read
as follows:

Sec.  1033.501  General provisions.

* * * * *
    (i) For passenger locomotives that can generate hotel power from
the main propulsion engine, the locomotive must comply with the
emission standards when in non-hotel setting. For hotel mode, the
locomotive is subject to the notch cap provisions of Sec.  1033.101 and
the defeat device prohibition of Sec.  1033.115.
* * * * *
    100. Section 1033.530 is amended by revising paragraph (h) to read
as follows:

Sec.  1033.530  Duty cycles and calculations.

* * * * *
    (h) Calculation adjustments for energy-saving design features. The
provisions of this paragraph (h) apply for locomotives equipped with
new energy-saving locomotive design features. They do not apply for
features that only improve the engine's brake-specific fuel
consumption. They also do not apply for features that were commonly
incorporated in locomotives before 2008.
    (1) Manufacturers/remanufacturers choosing to adjust emissions
under this paragraph (h) must do all of the following for
certification:
    (i) Describe the energy-saving features in your application for
certification.
    (ii) Describe in your installation instruction and/or maintenance
instructions all steps necessary to utilize the energy-saving features.
    (2) If your design feature will also affect the locomotives' duty
cycle, you must comply with the requirements of paragraph (g) of this
section.
    (3) Calculate the energy savings as described in this paragraph
(h)(3).
    (i) Estimate the expected mean in-use fuel consumption rate (on a
BTU per ton-mile basis) with and without the energy saving design
feature, consistent with the specifications of paragraph (h)(4) of this
section. The energy savings is the ratio of fuel consumed from a
locomotive operating with the new feature to fuel consumed from a
locomotive operating without the feature under identical conditions.
Include an estimate of the 80 percent confidence interval for your
estimate of the mean, and other statistical parameters we specify.
    (ii) Your estimate must be based on in-use operating data,
consistent with good engineering judgment. Where we have previously
certified your design feature under this paragraph (h), we may require
you to update your analysis based on all new data that are available.
You must obtain preliminary approval before you begin collecting
operational data for this purpose.
    (iii) We may allow you to consider the effects of your design
feature separately for different route types, regions, or railroads. We
may require that you certify these different locomotives in different
engine families and may restrict their use to the specified
applications.
    (iv) Design your test plan so that the operation of the locomotives
with and without is as similar as possible in all material aspects
(other than the design feature being evaluated). Correct all data for
any relevant differences, consistent with good engineering judgment.
    (v) Do not include any brake-specific energy savings in your
calculated values. If it is not possible to exclude such effects from
your data gathering, you must correct for these effects, consistent
with good engineering judgment.
    (4) Calculate adjustment factors as described in this paragraph
(h)(4). If the energy savings will apply broadly, calculate and apply
the adjustment on a cycle-weighted basis. Otherwise, calculate and
apply the adjustment separately for each notch. To apply the
adjustment, multiply the emissions (either cycle-weighted or notch-
specific, as applicable) by the adjustment. Use the lower bound of the
80 percent confidence interval of the estimate of the mean as your
estimated energy savings rate. We may cap your energy savings rate for
this paragraph (h)(4) at 80 percent of the estimate of the mean.
Calculate the emission adjustment factors as:
    AF = 1.000 - (energy savings rate)
    (5) We may require you to collect and report data from locomotives
we allow you to certify under this paragraph (h) and to recalculate the
adjustment factor for future model years based on such data.

Subpart G--[Amended]

    101. Section 1033.601 is amended by revising paragraph (a) to read
as follows:

Sec.  1033.601  General compliance provisions.

* * * * *
    (a) Meaning of terms. When used in 40 CFR part 1068, apply meanings
for specific terms as follows:
    (1) ``Manufacturer'' means manufacturer and/or remanufacturer.
    (2) ``Date of manufacture'' means date of original manufacture for
freshly manufactured locomotives and the date on which a remanufacture
is completed for remanufactured engines.
* * * * *
    102. Section 1033.625 is amended by revising paragraphs (a)(1),
(b), and (c) to read as follows:

Sec.  1033.625  Special certification provisions for non-locomotive-
specific engines.

* * * * *
    (a) * * *
    (1) Before being installed in the locomotive, the engines were
covered by a certificate of conformity issued under 40 CFR Part 1039
(or part 89) that is effective for the calendar year in which the
manufacture or remanufacture occurs. You may use engines certified
during the previous years if they were subject to the same standards.
You may not make any modifications to the engines unless we approve
them.
* * * * *
    (b) To certify your locomotives by design under this section,
submit your application as specified in Sec.  1033.205, with the
following exceptions:
    (1) Include the following instead of the locomotive test data
otherwise required by Sec.  1033.205:
    (i) A description of the engines to be used, including the name of
the engine manufacturer and engine family identifier for the engines.
    (ii) A brief engineering analysis describing how the engine's
emission controls will function when installed in the locomotive
throughout the locomotive's useful life.
    (iii) The emission data submitted under 40 CFR part 1039 (or part
89).
    (2) You may separately submit some of the information required by
Sec.  1033.205, consistent with the provisions of Sec.  1033.1(d). For
example, this may be an appropriate way to submit detailed information
about proprietary engine software. Note that this allowance to
separately submit some of the information required by

Sec.  1033.205 is also available for applications not submitted under
this section.
    (c) Locomotives certified under this section are subject to all the
requirements of this part except as specified in paragraph (b) of this
section. The engines used in such locomotives are not considered to be
included in the otherwise applicable engines family of 40 CFR part 1039
(or part 89).
* * * * *
    103. A new Sec.  1033.652 is added to read as follows:

Sec.  1033.652  Special provisions for exported locomotives.

    (a) Uncertified locomotives. Locomotives covered by an export
exemption under 40 CFR 1068.230 may be introduced into U.S. commerce
prior to being exported, but may not be used in any revenue generating
service in the U.S. Locomotives covered by this paragraph (a) may not
include any EPA emission control information label. Such locomotives
may include emission control information labels for the country to
which they are being exported.
    (b) Locomotives covered by export-only certificates. Locomotives
may be certified for export under 40 CFR 1068.230. Such locomotives may
be introduced into U.S. commerce prior to being exported, but may not
be used in any revenue generating service in the U.S.
    (c) Locomotives included in a certified engine family. Except as
specified in paragraph (d) of this section, locomotives included in a
certified engine family may be exported without restriction. Note that
Sec.  1033.705 requires that exported locomotives be excluded from
emission credit calculations in certain circumstances.
    (d) Locomotives certified to FELs above the standards. The
provisions of this paragraph (d) apply for locomotive configurations
included in engine families certified to one or more FELs above any
otherwise applicable standard. Individual locomotives that will be
exported may be excluded from an engine family if they are unlabeled.
For locomotives that were labeled during production, you may remove the
emission control information labels prior to export. All unlabeled
locomotives that will be exported are subject to the provisions of
paragraph (a) of this section. Locomotives that are of a configuration
included in an engine family certified to one of more FELs above any
otherwise applicable standard that includes an EPA emission control
information label when exported are considered to be part of the engine
family and must be included in credit calculations under Sec.
1033.705. Note that this requirement does not apply for locomotives
that do not have EPA emission control information labels, but that do
have other labels (such as an export-only label).

Subpart H--[Amended]

    104. Section 1033.705 is amended by revising paragraph (b)
introductory text to read as follows:

Sec.  1033.705  Calculating emission credits.

* * * * *
    (b) For each participating engine family, calculate positive or
negative emission credits relative to the otherwise applicable emission
standard. For the end of year report, round the sum of emission credits
to the nearest one hundredth of a megagram (0.01 Mg). Round your end of
year emission credit balance to the nearest megagram (Mg). Use
consistent units throughout the calculation. When useful life is
expressed in terms of megawatt-hrs, calculate credits for each engine
family from the following equation:
* * * * *
    105. Section 1033.715 is revised to read as follows:

Sec.  1033.715  Banking emission credits.

    (a) Banking is the retention of emission credits by the
manufacturer/remanufacturer generating the emission credits (or owner/
operator, in the case of transferred credits) for use in future model
years for averaging, trading, or transferring. You may use banked
emission credits only as allowed by Sec.  1033.740.
    (b) You may designate any emission credits you plan to bank in the
reports you submit under Sec.  1042.730. During the model year and
before the due date for the final report, you may designate your
reserved emission credits for averaging, trading, or transferring.
    (c) Reserved credits become actual emission credits when you submit
your final report. However, we may revoke these emission credits if we
are unable to verify them after reviewing your reports or auditing your
records.
    106. Section 1033.725 is amended by revising paragraph (b)(2) to
read as follows:

Sec.  1033.725  Requirements for your 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 a negative credit balance
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.
    107. Section 1033.730 is amended by revising paragraphs (b)(3) and
(b)(5) to read as follows:

Sec.  1033.730  ABT reports.

* * * * *
    (b) * * *
    (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 under each FEL.
* * * * *
    (5) Rated power for each locomotive configuration, and the average
locomotive power weighted by U.S.-directed production volumes for the
engine family.
* * * * *
    108. Section 1033.735 is amended by revising paragraphs (b), (d),
and (e) to read as follows:

Sec.  1033.735  Required records.

* * * * *
    (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 if you do not keep all the records
required under this section. You must therefore keep these records to
continue to bank valid credits. Store these records in any format and
on any media, as long as you can promptly send us organized, written
records in English if we ask for them. You must keep these records
readily available. We may review them at any time.
* * * * *
    (d) Keep records of the engine identification number for each
locomotive you produce that generates or uses emission credits under
the ABT program. If you change the FEL after the start of production,
identify the date you started using each FEL and the range of engine
identification numbers associated with each FEL. You must also be able
to identify the purchaser and destination for each engine you produce.
    (e) We may require you to keep additional records or to send us
relevant information not required by this section in accordance with
the Clean Air Act.

Subpart J--[Amended]

    109. Section 1033.901 is amended by revising the definitions for
``Carryover'', ``Total hydrocarbon'', ``Total hydrocarbon equivalent'',
and ``Useful life'' and adding a new definition for ``Alcohol-fueled
locomotive'' in alphabetical order to read as follows:

Sec.  1033.901  Definitions.

* * * * *
    Alcohol-fueled locomotive means a locomotive with an engine that is
designed to run using an alcohol fuel. For purposes of this definition,
alcohol fuels do not include fuels with a nominal alcohol content below
25 percent by volume.
* * * * *
    Carryover means relating to certification based on emission data
generated from an earlier model year as described in Sec.  1033.235(d).
This generally requires that the locomotives in the engine family do
not differ in any aspect related to emissions.
* * * * *
    Total hydrocarbon has the meaning given in 40 CFR 1065.1001. This
generally means the combined mass of organic compounds measured by the
specified procedure for measuring total hydrocarbon, expressed as a
hydrocarbon with a hydrogen-to-carbon mass ratio of 1.85:1.
    Total hydrocarbon equivalent has the meaning given in 40 CFR
1065.1001. This generally means the sum of the carbon mass
contributions of non-oxygenated hydrocarbons, alcohols and aldehydes,
or other organic compounds that are measured separately as contained in
a gas sample, expressed as exhaust hydrocarbon from petroleum-fueled
locomotives. The hydrogen-to-carbon mass ratio of the equivalent
hydrocarbon is 1.85:1.
* * * * *
    Useful life means the period during which the locomotive engine is
designed to properly function in terms of reliability and fuel
consumption, without being remanufactured, specified as work output or
miles. It is the period during which a locomotive is required to comply
with all applicable emission standards. See Sec.  1033.101(g).
* * * * *
    110. A new Sec.  1033.925 is added to subpart J to read as follows:

Sec.  1033.925  Reporting and recordkeeping requirements.

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq), the
Office of Management and Budget approves the reporting and
recordkeeping specified in the applicable regulations. The following
items illustrate the kind of reporting and recordkeeping we require for
engines regulated under this part:
    (a) We specify the following requirements related to engine
certification in this part 1033:
    (1) In Sec.  1033.150 we state the requirements for interim
provisions.
    (2) In subpart C of this part we identify a wide range of
information required to certify engines.
    (3) In Sec.  1033.325 we specify certain records related to
production-line testing.
    (4) In subpart G of this part we identify several reporting and
recordkeeping items for making demonstrations and getting approval
related to various special compliance provisions.
    (5) In Sec. Sec.  1033.725, 1033.730, and 1033.735 we specify
certain records related to averaging, banking, and trading.
    (6) In subpart I of this part we specify certain records related to
meeting requirements for remanufactured engines.
    (b) We specify the following requirements related to testing in 40
CFR part 1065:
    (1) In 40 CFR 1065.2 we give an overview of principles for
reporting information.
    (2) In 40 CFR 1065.10 and 1065.12 we specify information needs for
establishing various changes to published test procedures.
    (3) In 40 CFR 1065.25 we establish basic guidelines for storing
test information.
    (4) In 40 CFR 1065.695 we identify data that may be appropriate for
collecting during testing of in-use engines using portable analyzers.
    (c) We specify the following requirements related to the general
compliance provisions in 40 CFR part 1068:
    (1) In 40 CFR 1068.5 we establish a process for evaluating good
engineering judgment related to testing and certification.
    (2) In 40 CFR 1068.25 we describe general provisions related to
sending and keeping information.
    (3) In 40 CFR 1068.27 we require manufacturers to make engines
available for our testing or inspection if we make such a request.
    (4) In 40 CFR 1068.105 we require vessel manufacturers to keep
certain records related to duplicate labels from engine manufacturers.
    (5) In 40 CFR 1068.120 we specify recordkeeping related to
rebuilding engines.
    (6) In 40 CFR part 1068, subpart C, we identify several reporting
and recordkeeping items for making demonstrations and getting approval
related to various exemptions.
    (7) In 40 CFR part 1068, subpart D, we identify several reporting
and recordkeeping items for making demonstrations and getting approval
related to importing engines.
    (8) In 40 CFR 1068.450 and 1068.455 we specify certain records
related to testing production-line engines in a selective enforcement
audit.
    (9) In 40 CFR 1068.501 we specify certain records related to
investigating and reporting emission-related defects.
    (10) In 40 CFR 1068.525 and 1068.530 we specify certain records
related to recalling nonconforming engines.

PART 1039--CONTROL OF EMISSIONS FROM NEW AND IN-USE NONROAD
COMPRESSION-IGNITION ENGINES

    111. The authority citation for part 1039 continues to read as
follows:

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

Subpart A--[Amended]

    112. Section 1039.5 is amended by revising paragraph (a) to read as
follows:

Sec.  1039.5  Which engines are excluded from this part's requirements?

* * * * *
    (a) Locomotive engines. (1) The following locomotive engines are
not subject to the provisions of this part 1039:
    (i) Engines in locomotives subject to the standards of 40 CFR part
92 or 1033.
    (ii) Engines in locomotives that are exempt from the standards of
40 CFR part 1033 pursuant to the provisions of 40 CFR part 1033 or 1068
(except for the provisions of 40 CFR 1033.150(e)).
    (iii) Engines in locomotives that are exempt from the standards of
40 CFR part 92 pursuant to the provisions of 40 CFR part 92 (except for
the provisions of 40 CFR 92.907). For example, an engine that is exempt
under 40 CFR 92.906 because it is in a manufacturer-owned locomotive is
not subject to the provisions of this part 1039.
    (2) The following locomotive engines are subject to the provisions
of this part 1039:
    (i) Engines in locomotives exempt from 40 CFR part 92 or 1033
pursuant to the provisions of 40 CFR 92.907 or 1033.150(e).
    (ii) Locomotive engines excluded from the definition of locomotive
in 40 CFR 1033.901.
* * * * *
    113. Section 1039.15 is amended by revising paragraph (a) to read
as follows:

Sec.  1039.15  Do any other regulation parts apply to me?

    (a) Part 1065 of this chapter describes procedures and equipment
specifications for testing engines to measure exhaust emissions.
Subpart F of this part 1039 describes how to apply the provisions of
part 1065 of this chapter to determine whether engines meet the exhaust
emission standards in this part.
* * * * *
    114. A new Sec.  1039.30 is added to subpart A to read as follows:

Sec.  1039.30  Submission of information.

    (a) This part includes various requirements to record data or other
information. Refer to Sec.  1039.825 and 40 CFR 1068.25 regarding
recordkeeping requirements. If recordkeeping requirements are not
specified, store these records in any format and on any media and keep
them readily available for one year after you send an associated
application for certification, or one year after you generate the data
if they do not support an application for certification. You must
promptly send us organized, written records in English if we ask for
them. We may review them at any time.
    (b) The regulations in Sec.  1039.255 and 40 CFR 1068.101 describe
your obligation to report truthful and complete information and the
consequences of failing to meet this obligation. This includes
information not related to certification.
    (c) Send all reports and requests for approval to the Designated
Compliance Officer (see Sec.  1039.801).
    (d) Any written information we require you to send to or receive
from another company is deemed to be a required record under this
section. Such records are also deemed to be submissions to EPA. We may
require you to send us these records whether or not you are a
certificate holder.

Subpart B--[Amended]

    115. Section 1039.120 is amended by revising paragraph (c) to read
as follows:

Sec.  1039.120  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 cover components whose failure would not increase an
engine's emissions of any regulated pollutant.
* * * * *
    116. Section 1039.125 is amended by revising paragraphs
(a)(1)(iii), (c), and (d) and adding paragraph (a)(5) to read as
follows:

Sec.  1039.125  What maintenance instructions must I give to buyers?

* * * * *
    (a) * * *
    (1) * * *
    (iii) You provide the maintenance free of charge and clearly say so
in your maintenance instructions.
* * * * *
    (5) You may ask us to approve a maintenance interval shorter than
that specified in paragraphs (a)(2) and (a)(3) of this section under
Sec.  1039.210, including emission-related components that were not in
widespread use with nonroad compression-ignition engines before 2011.
In your request you must describe the proposed maintenance step,
recommend the maximum feasible interval for this maintenance, include
your rationale with supporting evidence to support the need for the
maintenance at the recommended interval, and demonstrate that the
maintenance will be done at the recommended interval on in-use engines.
In considering your request, we will evaluate the information you
provide and any other available information to establish alternate
specifications for maintenance intervals, if appropriate.
* * * * *
    (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. 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. 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.
    (d) Noncritical emission-related maintenance. Subject to the
provisions of this paragraph (d), you may schedule any amount of
emission-related inspection or maintenance that is not covered by
paragraph (a) of this section (that is, maintenance that is neither
explicitly identified as critical emission-related maintenance, nor
that we approve as critical emission-related maintenance). Noncritical
emission-related maintenance generally includes maintenance on the
components we specify in 40 CFR part 1068, Appendix I, that is not
covered in paragraph (a) of this section. You must state in the owners
manual that these steps are not necessary to keep the emission-related
warranty valid. If operators fail to do this maintenance, this does not
allow you to disqualify those engines from in-use testing or deny a
warranty claim. Do not take these inspection or maintenance steps
during service accumulation on your emission-data engines.
* * * * *
    117. Section 1039.135 is amended by revising paragraphs (c)(6) and
(c)(8) to read as follows:

Sec.  1039.135  How must I label and identify the engines I produce?

* * * * *
    (c) * * *
    (6) State the date of manufacture [DAY (optional), MONTH, and
YEAR]; however, you may omit this from the label if you stamp, engrave,
or otherwise permanently identify it elsewhere on the engine, in which
case you must also describe in your application for certification where
you will identify the date on the engine.
* * * * *
    (8) Identify the emission-control system. Use terms and
abbreviations as described in 40 CFR 1068.45. You may omit this
information from the label if there is not enough room for it and you
put it in the owners manual instead.
* * * * *

Subpart C--[Amended]

    118. Section 1039.201 is amended by adding paragraph (h) to read as
follows:

Sec.  1039.201  What are the general requirements for obtaining a
certificate of conformity?

* * * * *
    (h) For engines that become new after being placed into service,
such as engines converted to nonroad use after being used in motor
vehicles, we may specify alternate certification provisions consistent
with the intent of this part. See the definition of ``new nonroad
engine'' in Sec.  1039.801.
    119. Section 1039.220 is revised to read as follows:

Sec.  1039.220  How do I amend the maintenance instructions in my
application?

    You may amend your emission-related maintenance instructions after
you submit your application for certification as long as the amended
instructions remain consistent with the provisions of Sec.  1039.125.
You must send the Designated Compliance Officer a written request to
amend your application for certification for an engine family if you
want to change the emission-related maintenance instructions in a way
that could affect emissions. In your request, describe the proposed
changes to the maintenance instructions. If operators follow the
original maintenance instructions rather than the newly specified
maintenance, this does not allow you to disqualify those engines from
in-use testing or deny a warranty claim.
    (a) If you are decreasing or eliminating any specified maintenance,
you may distribute the new maintenance instructions to your customers
30 days after we receive your request, unless we disapprove your
request. This would generally include replacing one maintenance step
with another. We may approve a shorter time or waive this requirement.
    (b) If your requested change would not decrease the specified
maintenance, you may distribute the new maintenance instructions
anytime after you send your request. For example, this paragraph (b)
would cover adding instructions to increase the frequency of filter
changes for engines in severe-duty applications.
    (c) You need not request approval if you are making only minor
corrections (such as correcting typographical mistakes), clarifying
your maintenance instructions, or changing instructions for maintenance
unrelated to emission control. We may ask you to send us copies of
maintenance instructions revised under this paragraph (c).
    120. Section 1039.225 is amended by revising paragraphs (b)(2),
(e), and (f) to read as follows:

Sec.  1039.225  How do I amend my application for certification to
include new or modified engines or to change an FEL?

* * * * *
    (b) * * *
    (2) Include engineering evaluations or data showing that the
amended engine family complies with all applicable requirements. You
may do this by showing that the original emission-data engine is still
appropriate for showing that the amended family complies with all
applicable requirements.
* * * * *
    (e) 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.
    (f) You may ask us to approve a change to your FEL 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 include the new FEL on the emission control
information label for all engines produced after the change. You may
ask us to approve a change to your FEL in the following cases:
    (1) You may ask to raise your FEL for your engine family at any
time. In your request, you must show that you will still be able to
meet the emission standards as specified in subparts B and H of this
part. If you amend your application by submitting new test data to
include a newly added or modified engine, as described in paragraph
(b)(3) of this section, use the appropriate FELs with corresponding
production volumes to calculate emission credits for the model year, as
described in subpart H of this part. In all other circumstances, you
must use the higher FEL for the entire engine family to calculate
emission credits under subpart H of this part.
    (2) You may ask to lower the FEL for your engine family only if you
have test data from production engines showing that emissions are below
the proposed lower FEL. The lower FEL applies only to engines you
produce after we approve the new FEL. Use the appropriate FELs with
corresponding production volumes to calculate emission credits for the
model year, as described in subpart H of this part.
    121. Section 1039.230 is amended by revising paragraphs (b) and (d)
to read as follows:

Sec.  1039.230  How do I select engine families?

* * * * *
    (b) Group engines in the same engine family if they are the same in
all the following aspects:
    (1) The combustion cycle and fuel.
    (2) The cooling system (water-cooled vs. air-cooled).
    (3) Method of air aspiration.
    (4) Method of exhaust aftertreatment (for example, catalytic
converter or particulate trap).
    (5) Combustion chamber design.
    (6) Bore and stroke.
    (7) Cylinder arrangement (for engines with aftertreatment devices
only).
    (8) Method of control for engine operation other than governing
(i.e., mechanical or electronic).
    (9) Power category.
    (10) Numerical level of the emission standards that apply to the
engine.
* * * * *
    (d) In unusual circumstances, you may group engines that are not
identical with respect to the things listed in paragraph (b) of this
section in the same engine family if you show that their emission
characteristics during the useful life will be similar.
* * * * *
    122. Section 1039.235 is amended by revising paragraphs (c) and (d)
introductory text to read as follows:

Sec.  1039.235  What emission testing must I perform for my application
for a certificate of conformity?

* * * * *
    (c) We may measure emissions from any of your emission-data engines
or other engines from the engine 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.
Unless we later invalidate these data, we may decide not to consider
your data in determining if your engine family meets applicable
requirements.
    (3) Before we test one of your engines, we may set its adjustable
parameters to any point within the physically adjustable ranges (see
Sec.  1039.115(e)).

    (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 where we determine
that an engine parameter is not an adjustable parameter (as defined in
Sec.  1039.801) but that it is subject to production variability.
    (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:
* * * * *
    123. Section 1039.240 is amended by revising paragraphs (a), (b),
and (c)(1) to read as follows:

Sec.  1039.240  How do I demonstrate that my engine family complies
with exhaust emission standards?

    (a) For purposes of certification, your engine family is considered
in compliance with the emission standards in Sec.  1039.101(a) and (b),
Sec.  1039.102(a) and (b), Sec.  1039.104, and Sec.  1039.105 if all
emission-data engines representing that family have test results
showing deteriorated emission levels at or below these standards. This
includes all test points over the course of the durability
demonstration. 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 a deteriorated
emission level for any pollutant that is above an applicable emission
standard. Similarly, your engine family is deemed not to comply if any
emission-data engine representing that family has test results showing
any emission level above the applicable not-to-exceed emission standard
for any pollutant. This includes all test points over the course of the
durability demonstration.
    (c) * * *
    (1) Additive deterioration factor for exhaust emissions. Except as
specified in paragraph (c)(2) of this section, use an additive
deterioration factor for exhaust emissions. An additive deterioration
factor is the difference between exhaust emissions at the end of the
useful life and exhaust emissions at the low-hour test point. In these
cases, adjust the official emission results for each tested engine at
the selected test point by adding the factor to the measured emissions.
If the factor is less than zero, use zero. Additive deterioration
factors must be specified to one more decimal place than the applicable
standard.
* * * * *
    124. Section 1039.245 is amended by revising the introductory text
to read as follows:

Sec.  1039.245  How do I determine deterioration factors from exhaust
durability testing?

    This section describes how to determine deterioration factors,
either with an engineering analysis, with pre-existing test data, or
with new emission measurements. Apply these deterioration factors to
determine whether your engines will meet the duty-cycle emission
standards throughout the useful life as described in Sec.  1039.240.
* * * * *
    125. Section 1039.250 is amended by revising paragraphs (a)
introductory text and (c) and removing paragraph (e) to read as
follows:

Sec.  1039.250  What records must I keep and what reports must I send
to EPA?

    (a) Within 45 days after the end of the model year, send the
Designated Compliance Officer a report describing the following
information about engines you produced during the model year:
* * * * *
    (c) Keep data from routine emission tests (such as test cell
temperatures and relative humidity readings) for one year after we
issue the associated certificate of conformity. Keep all other
information specified in this section for eight years after we issue
your certificate.
* * * * *
    126. Section 1039.255 is amended by revising paragraph (b) to read
as follows:

Sec.  1039.255  What decisions may EPA make regarding my certificate of
conformity?

* * * * *
    (b) We may deny your application for certification if we determine
that your engine family fails to comply with emission standards or
other requirements of this part or the Clean Air Act. We will base our
decision on all available information. If we deny your application, we
will explain why in writing.
* * * * *

Subpart G--[Amended]

    127. Section 1039.605 is amended by revising paragraph (d)(3)
introductory text to read as follows:

Sec.  1039.605  What provisions apply to engines certified under the
motor-vehicle program?

* * * * *
    (d) * * *
    (3) You must show that fewer than 50 percent of the engine family's
total sales in the United States are used in nonroad applications. This
includes engines used in any application without regard to which
company manufactures the vehicle or equipment. Show this as follows:
* * * * *
    128. Section 1039.610 is amended by revising paragraph (d)(3)
introductory text to read as follows:

Sec.  1039.610  What provisions apply to vehicles certified under the
motor-vehicle program?

* * * * *
    (d) * * *
    (3) You must show that fewer than 50 percent of the engine family's
total sales in the United States are used in nonroad applications. This
includes any type of vehicle, without regard to which company completes
the manufacturing of the nonroad equipment. Show this as follows:
* * * * *

Subpart H--[Amended]

    129. Section 1039.705 is amended by revising paragraph (b) before
the equation to read as follows:

Sec.  1039.705  How do I generate and calculate emission credits?

* * * * *
    (b) For each participating family, calculate positive or negative
emission credits relative to the otherwise applicable emission
standard. Calculate positive emission credits for a family that has an
FEL below the standard. Calculate negative emission credits for a
family that has an FEL above the standard. Sum your positive and
negative credits for the model year before rounding. Round the sum of
emission credits to the nearest kilogram (kg), using consistent units
throughout the following equation:
* * * * *
    130. Section 1039.715 is revised to read as follows:

Sec.  1039.715  How do I bank emission credits?

    (a) Banking is the retention of emission credits by the
manufacturer generating the emission credits for use in future model
years for averaging or trading.
    (b) You may designate any emission credits you plan to bank in the
reports you submit under Sec.  1039.730. During the model year and
before the due date for the final report, you may designate your
reserved emission credits for averaging or trading.
    (c) Reserved credits become actual emission credits when you submit
your final report. However, we may revoke

these emission credits if we are unable to verify them after reviewing
your reports or auditing your records.
    131. Section 1039.720 is amended by revising paragraph (b) to read
as follows:

Sec.  1039.720  How do I trade emission credits?

* * * * *
    (b) You may trade actual emission credits as described in this
subpart. You may also trade reserved emission credits, but we may
revoke these emission credits based on our review of your records or
reports or those of the company with which you traded emission credits.
You may trade banked credits within an averaging set to any certifying
manufacturer.
* * * * *
    132. Section 1039.725 is amended by revising paragraph (b)(2) to
read as follows:

Sec.  1039.725  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 a negative credit balance
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.
    133. Section 1039.730 is amended by revising paragraphs (b)(3),
(b)(5), and (f) to read as follows:

Sec.  1039.730  What ABT reports must I send to EPA?

* * * * *
    (b) * * *
    (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 under each FEL.
* * * * *
    (5) Maximum engine power for each engine configuration, and the
average engine power weighted by U.S.-directed production volumes for
the engine family.
* * * * *
    (f) Correct errors in your end-of-year report or final report as
follows:
    (1) You may correct any errors in your end-of-year report when you
prepare the final report, as long as you send us the final report by
the time it is due.
    (2) If you or we determine within 270 days after the end of the
model year that errors mistakenly decreased your balance of emission
credits, you may correct the errors and recalculate the balance of
emission credits. You may not make these corrections for errors that
are determined more than 270 days after the end of the model year. If
you report a negative balance of emission credits, we may disallow
corrections under this paragraph (f)(2).
    (3) If you or we determine anytime that errors mistakenly increased
your balance of emission credits, you must correct the errors and
recalculate the balance of emission credits.
    134. Section 1039.735 is amended by revising paragraphs (b), (d),
and (e) to read as follows:

Sec.  1039.735  What records must I keep?

* * * * *
    (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 if you do not keep all the records
required under this section. You must therefore keep these records to
continue to bank valid credits. Store these records in any format and
on any media, as long as you can promptly send us organized, written
records in English if we ask for them. You must keep these records
readily available. We may review them at any time.
* * * * *
    (d) Keep records of the engine identification number for each
engine you produce that generates or uses emission credits under the
ABT program. You may identify these numbers as a range. If you change
the FEL after the start of production, identify the date you started
using each FEL and the range of engine identification numbers
associated with each FEL. You must also be able to identify the
purchaser and destination for each engine you produce.
    (e) We may require you to keep additional records or to send us
relevant information not required by this section in accordance with
the Clean Air Act.

Subpart I--[Amended]

    135. Section 1039.801 is amended by revising the definitions for
``Model year'', ``New nonroad engine'', ``Total hydrocarbon'', ``Total
hydrocarbon equivalent'', and ``Useful life and adding definitions for
``Alcohol-fueled engine'', ``Carryover'', and ``Date of manufacture''
in alphabetical order to read as follows:

Sec.  1039.801  What definitions apply to this part?

* * * * *
    Alcohol-fueled engine means an engine that is designed to run using
an alcohol fuel. For purposes of this definition, alcohol fuels do not
include fuels with a nominal alcohol content below 25 percent by
volume.
* * * * *
    Carryover means relating to certification based on emission data
generated from an earlier model year as described in Sec.  1042.235(d).
This generally requires that the engines in the engine family do not
differ in any aspect related to emissions.
* * * * *
    Date of manufacture has the meaning given in 40 CFR 1068.30.
* * * * *
    Model year means one of the following things:
    (1) For freshly manufactured equipment and engines (see definition
of ``new nonroad engine,'' paragraph (1)), model year means one of the
following:
    (i) Calendar year.
    (ii) Your annual new model production period if it is different
than the calendar year. This must include January 1 of the calendar
year for which the model year is named. It may not begin before January
2 of the previous calendar year and it must end by December 31 of the
named calendar year.
    (2) For an engine that is converted to a nonroad engine after being
placed into service as a stationary engine, or being certified and
placed into service as a motor vehicle engine, model year means the
calendar year in which the engine was originally produced. For a motor
vehicle engine that is converted to be a nonroad engine without having
been certified, model year means the calendar year in which the engine
becomes a new nonroad engine. (See definition of ``new nonroad
engine,'' paragraph (2).)
    (3) For a nonroad engine excluded under Sec.  1039.5 that is later
converted to operate in an application that is not excluded, model year
means the calendar year in which the engine was originally produced
(see definition of ``new nonroad engine,'' paragraph (3)).
    (4) For engines that are not freshly manufactured but are installed
in new nonroad equipment, model year means the calendar year in which
the engine is installed in the new nonroad equipment (see definition of
``new nonroad engine,'' paragraph (4)).
    (5) For imported engines:
    (i) For imported engines described in paragraph (5)(i) of the
definition of

[[Continued on page 44541]]

]

[[pp. 44541-44590]] Control of Emissions From New Marine Compression-Ignition Engines
at or Above 30 Liters per Cylinder

[[Continued from page 44540]]

``new nonroad engine,'' model year has the meaning given in paragraphs
(1) through (4) of this definition.
    (ii) For imported engines described in paragraph (5)(ii) of the
definition of ``new nonroad engine,'' model year has the meaning given
in 40 CFR 89.602 for independent commercial importers.
    (iii) For imported engines described in paragraph (5)(iii) of the
definition of ``new nonroad engine,'' model year means the calendar
year in which the engine is assembled in its imported configuration,
unless specified otherwise in this part or in 40 CFR part 1068.
* * * * *
    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.  1039.5, when that engine is
installed in a piece of equipment that is covered by this part 1039.
The engine is no longer new when it is placed into nonroad service
covered by this part 1039. For example, this would apply to marine
diesel 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 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, but only if it was produced on or after the dates
shown in the following table. This addresses uncertified engines and
equipment initially placed into service that someone seeks to import
into the United States. Importation of this kind of engine (or
equipment containing such an engine) is generally prohibited by 40 CFR
part 1068. However, the importation of such an engine is not prohibited
if the engine has a model year before 2004, since it is not subject to
standards.

     Applicability of Emission Standards for Nonroad Diesel Engines
------------------------------------------------------------------------
                                              Initial date of emission
           Maximum engine power                       standards
------------------------------------------------------------------------
kW < 19...................................  January 1, 2000.
19 <= kW < 37.............................  January 1, 1999.
37 <= kW < 75.............................  January 1, 1998.
75 <= kW < 130............................  January 1, 1997.
130 <= kW <= 560..........................  January 1, 1996.
kW > 560..................................  January 1, 2000.
------------------------------------------------------------------------

* * * * *
    Total hydrocarbon has the meaning given in 40 CFR 1065.1001. This
generally means the combined mass of organic compounds measured by the
specified procedure for measuring total hydrocarbon, expressed as a
hydrocarbon with a hydrogen-to-carbon mass ratio of 1.85:1.
    Total hydrocarbon equivalent has the meaning given in 40 CFR
1065.1001. This generally means the sum of the carbon mass
contributions of non-oxygenated hydrocarbons, alcohols and aldehydes,
or other organic compounds that are measured separately as contained in
a gas sample, expressed as exhaust hydrocarbon from petroleum-fueled
engines. The hydrogen-to-carbon mass ratio of the equivalent
hydrocarbon is 1.85:1.
* * * * *
    Useful life means the period during which the engine is designed to
properly function in terms of reliability and fuel consumption, without
being remanufactured, specified as a number of hours of operation or
calendar years, whichever comes first. It is the period during which a
nonroad engine is required to comply with all applicable emission
standards. See Sec.  1039.101(g).
* * * * *

Sec.  1039.810--[Removed]

    136. Section 1039.810 is removed.

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

    137. The authority citation for part 1042 continues to read as
follows:

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

Subpart A--[Amended]

    138. Section 1042.1 is revised to read as follows:

Sec.  1042.1  Applicability.

    Except as provided in Sec.  1042.5, the regulations in this part
1042 apply for all new compression-ignition marine engines (including
new engines deemed to be compression-ignition engines under this
section) and vessels containing such engines. See Sec.  1042.901 for
the definitions of engines and vessels considered to be new. This part
1042 applies as follows:
    (a) This part 1042 applies for freshly manufactured marine engines
starting with the model years noted in the following tables:

                         Table 1 to Sec.   1042.1--Part 1042 Applicability by Model Year
----------------------------------------------------------------------------------------------------------------
                                                           Maximum engine   Displacement (L/cyl)
                    Engine category                          power \a\         or application       Model year
----------------------------------------------------------------------------------------------------------------
Category 1.............................................             kW <75            disp.< 0.9        \b\ 2009

                                                            75 <=kW <=3700            disp.< 0.9            2012
                                                         .................     0.9 <=disp. < 1.2            2013
                                                         .................     1.2 <=disp. < 2.5            2014
                                                         .................     2.5 <=disp. < 3.5            2013
                                                         .................      3.5 <=disp.< 7.0            2012
                                                                 kW > 3700            disp.< 7.0            2014
Category 2.............................................          kW <=3700    7.0 <=disp. < 15.0            2013
                                                                 kW > 3700    7.0 <=disp. < 15.0            2014
                                                                       All       15 <=disp. < 30            2014
Category 3.............................................                All            disp. > 30            2011
----------------------------------------------------------------------------------------------------------------
\a\ See Sec.   1042.140, which describes how to determine maximum engine power.
\b\ See Table 1 of Sec.   1042.101 for the first model year in which this part 1042 applies for engines with
  maximum engine power below 75 kW and displacement at or above 0.9 L/cyl.

     (b) The requirements of subpart I of this part apply to
remanufactured Category 1 and Category 2 engines beginning July 7,
2008.
    (c) See 40 CFR part 94 for requirements that apply to engines with
maximum engine power at or above 37 kW not yet subject to the
requirements of this part 1042. See 40 CFR part 89 for requirements
that apply to engines with maximum engine power below 37 kW not yet
subject to the requirements of this part 1042.
    (d) The provisions of Sec. Sec.  1042.620 and 1042.901 apply for
new engines used solely for competition beginning January 1, 2009.
    (e) The marine engines listed in this paragraph (e) are subject to
all the requirements of this part even if they do not meet the
definition of ``compression-ignition'' in Sec.  1042.901. The following
engines are deemed to be compression-ignition engines for the purposes
of this subchapter:
    (1) Marine engines powered by natural gas or other gaseous fuels
with maximum engine power at or above 250 kW. Note that gaseous-fueled
engines with maximum engine power below 250 kW may or may not meet the
definition of ``compression-ignition'' in Sec.  1042.901.
    (2) Marine gas turbine engines.
    (3) Other marine internal combustion engines that do not meet the
definition of ``spark-ignition'' in Sec.  1042.901.
    (f) Some of the provisions of this part may apply for other engines
as specified in 40 CFR part 1043.
    139. Section 1042.5 is amended by adding paragraph (c) to read as
follows:

Sec.  1042.5  Exclusions.

* * * * *
    (c) Recreational gas turbine engines. The requirements and
prohibitions of this part do not apply to gas turbine engines installed
on recreational vessels, as defined in Sec.  1042.901.
    140. Section 1042.15 is revised to read as follows:

Sec.  1042.15  Do any other regulation parts apply to me?

    (a) Part 1043 of this chapter describes requirements related to
international pollution prevention that apply for some of the engines
subject to this part.
    (b) The evaporative emission requirements of part 1060 of this
chapter apply to vessels that include installed engines fueled with a
volatile liquid fuel as specified in Sec.  1042.107. (Note:
Conventional diesel fuel is not considered to be a volatile liquid
fuel.)
    (c) Part 1065 of this chapter describes procedures and equipment
specifications for testing engines to measure exhaust emissions.
Subpart F of this part 1042 describes how to apply the provisions of
part 1065 of this chapter to determine whether engines meet the exhaust
emission standards in this part.
    (d) The requirements and prohibitions of part 1068 of this chapter
apply to everyone, including anyone who manufactures, imports,
installs, owns, operates, or rebuilds any of the engines subject to
this part 1042, or vessels containing these engines. Part 1068 of this
chapter describes general provisions, including these seven areas:
    (1) Prohibited acts and penalties for engine manufacturers, vessel
manufacturers, and others.
    (2) Rebuilding and other aftermarket changes.
    (3) Exclusions and exemptions for certain engines.
    (4) Importing engines.
    (5) Selective enforcement audits of your production.
    (6) Defect reporting and recall.
    (7) Procedures for hearings.
    (e) Other parts of this chapter apply if referenced in this part.
    141. A new Sec.  1042.30 is added to subpart A to read as follows:

Sec.  1042.30  Submission of information.

    (a) This part includes various requirements to record data or other
information. Refer to Sec.  1042.925 and 40 CFR 1068.25 regarding
recordkeeping requirements. If recordkeeping requirements are not
specified, store these records in any format and on any media and keep
them readily available for one year after you send an associated
application for certification, or one year after you generate the data
if they do not support an application for certification. You must
promptly send us organized, written records in English if we ask for
them. We may review them at any time.
    (b) The regulations in Sec.  1042.255 and 40 CFR 1068.101 describe
your obligation to report truthful and complete information and the
consequences of failing to meet this obligation. This includes
information not related to certification.
    (c) Send all reports and requests for approval to the Designated
Compliance Officer (see Sec.  1042.901).
    (d) Any written information we require you to send to or receive
from another company is deemed to be a required record under this
section. Such records are also deemed to be submissions to EPA. We may
require you to send us these records whether or not you are a
certificate holder.

Subpart B--[Amended]

    142. Section 1042.101 is amended by revising the section heading,
Table 1 in paragraph (a)(3), and paragraph (d)(1)(iii) to read as
follows:

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

    (a) * * *
    (3) * * *

[GRAPHIC] [TIFF OMITTED] TP28AU09.004

* * * * *
    (d) * * *
    (1) * * *
    (iii) Diesel-fueled and all other engines not described in
paragraph (d)(1)(i) or (ii) of this section must comply with Tier 3 HC
standards based on THC emissions and with Tier 4 standards based on
NMHC emissions.
* * * * *
    143. A new Sec.  1042.104 is added to subpart B to read as follows:

Sec.  1042.104  Exhaust emission standards for Category 3 engines.

    (a) Duty-cycle standards. Exhaust emissions from your engines may
not exceed emission standards, as follows:
    (1) Measure emissions using the test procedures described in
subpart F of this part. Note that while no PM standards apply for
Category 3 engines, PM emissions must be measured and reported.
    (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 130
                                                                      RPM       130-2000 RPM \a\   Over 2000 RPM
----------------------------------------------------------------------------------------------------------------
Tier 1...............................  2004-2010 \b\..........            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...............................  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), rounded to one decimal place.
\b\ Tier 1 NOx standards apply as specified in 40 CFR part 94 for engines originally manufactured in model years
  2004 through 2010. They are shown here only for reference.

     (3) The HC standard for Tier 2 and later engines is 2.0 g/kW-hr.
This standard applies as follows:
    (i) Alcohol-fueled engines must comply with HC standards based on
THCE emissions.
    (ii) Natural gas-fueled engines must comply with HC standards based
on NMHC emissions.
    (iii) Diesel-fueled and all other engines not described in
paragraph (a)(3)(i) or (ii) of this section must comply with HC
standards based on THC emissions.
    (4) The CO standard for Tier 2 and later engines is 5.0 g/kW-hr.
    (b) Averaging, banking, and trading. Category 3 engines are not
eligible for participation in the averaging, banking, and trading (ABT)
program as described in subpart H of this part.
    (c) Mode caps. Measured NOX emissions 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 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.
    (d) Useful life. Your engines must meet the exhaust emission
standards of this section over their full useful life, expressed as a
period in years or hours of engine operation, whichever comes first.
    (1) The minimum useful life value is 3 years or 10,000 hours of
operation.
    (2) Specify a longer useful life in hours for an engine family
under either of two conditions:
    (i) If you design, advertise, or market your engine to operate
longer than the minimum useful life (your recommended hours until
rebuild indicates a longer design life).
    (ii) If your basic mechanical warranty is longer than the minimum
useful life.
    (e) Applicability for testing. The duty-cycle emission standards in
this section apply to all testing performed according to the procedures
in Sec.  1042.505, including certification, production-line, and in-use
testing. See paragraph (g) of this section for standards that apply for
certain other test procedures, such as some production-line testing.
    (f) Domestic engines. Engines installed on vessels excluded from 40
CFR part 1043 because they operate only domestically may not be
certified for use with residual fuels.
    (g) Alternate installed-engine standards. NOX emissions
may not exceed the standard specified in this paragraph (g) for test of
engines installed on vessels when you are unable to operate the engine
at the test points for the specified duty cycle, and you approximate
these points consistent with the specifications of section 6 of
Appendix 8 to the NOX Technical Code. Calculate the
alternate installed-engine standard by multiplying the applicable
NOX standard by 1.1 and rounding to the nearest 0.1 g/kW-hr.
    144. Section 1042.110 is amended by revising paragraph (a)(2) and
adding paragraphs (a)(3) and (d) to read as follows:

Sec.  1042.110  Recording reductant use and other diagnostic functions.

    (a) * * *
    (2) The onboard computer log must record in nonvolatile computer
memory all incidents of engine operation with inadequate reductant
injection or reductant quality. Use good engineering judgment to ensure
that the operator can readily access the information to submit the
report required by Sec.  1042.660. For example, you may meet this
requirement by documenting the incident in a text file that can be
downloaded or printed by the operator.
    (3) SCR systems on Category 3 engines must also conform to the
provisions of paragraph (d) of this section if they are equipped with
on-off controls as allowed under Sec.  1042.115(g).
* * * * *
    (d) For Category 3 engines equipped with on-off controls (as
allowed by Sec.  1042.115(g)), you must also equip your engine to
continuously monitor NOX concentrations in the exhaust. Use
good engineering judgment to alert operators if measured NOX
concentrations indicate malfunctioning emission controls. Record any
such operation in nonvolatile computer memory. You are not required to
monitor NOX concentrations during operation for which the
emission controls may be disabled under Sec.  1042.115(g).
    For the purpose of this paragraph (d), ``malfunctioning emission
controls'' means any condition in which the measured NOX
concentration exceeds the value expected when the engine is in
compliance with the at-sea standard of Sec.  1042.104(g). Determine
these expected values during production-line testing of the engine,
using linear interpolation between test points. You may also use
additional intermediate test points measured during the production-line
test. Note that the provisions of paragraph (a) of this section also
apply for SCR systems covered by this paragraph (d). For engines
subject to both the provisions of paragraph (a) of this section and
this paragraph (d), use good engineering judgment to integrate
diagnostic features to comply with both paragraphs.
    145. Section 1042.115 is amended by revising paragraphs (d)(2)
introductory text, (f) introductory text, and adding paragraphs (f)(4)
and (g) to read as follows:

Sec.  1042.115  Other requirements.

* * * * *
    (d) * * *
    (2) Category 2 and Category 3 engines that have adjustable
parameters must meet all the requirements of this part for any
adjustment in the specified adjustable range. You must specify in your
application for certification the adjustable range of each adjustable
parameter on a new engine to-
* * * * *

    (f) Defeat devices. You may not equip your engines with a defeat
device. A defeat device is an auxiliary emission control device that
reduces the effectiveness of emission controls under conditions that
the engine may reasonably be expected to encounter during normal
operation and use. (Note that this means emissions control for
operation outside of and between the official test modes is generally
expected to be similar to the emissions control demonstrated at the
test modes for engines.) This does not apply to auxiliary emission
control devices you identify in your certification application if any
of the following is true:
* * * * *
    (4) The engine is a Category 3 engine and the AECD conforms to the
requirements of paragraph (g) of this section.
    (g) On-off controls for Category 3 engines. Manufacturers may equip
Category 3 engines with features that disable Tier 3 emission controls
subject to the following provisions:
    (1) Features that disable Tier 3 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.
    (2) If IMO has not established an ECA for U.S. waters, you must
demonstrate that the AECD will not disable emission controls while
operating in areas where emissions could reasonably be expected to
adversely affect U.S. air quality. If ECAs have been established for
U.S. waters, then you must demonstrate that the AECD will not disable
emission control while operating in waters within the outer boundaries
of the ECAs. (Note: See the regulations in 40 CFR part 1043 for
requirements related to operation in other 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 emission
controls disabled.
    (4) The engine must comply fully with the Tier 2 standards when the
Tier 3 emission controls are disabled.
    146. Section 1042.120 is amended by adding paragraph (b)(2) and
revising paragraph (c) to read as follows:

Sec.  1042.120  Emission-related warranty requirements.

    (b) * * *
    (2) For Category 3 engines, your emission-related warranty must be
valid throughout the engine's full useful life as specified in Sec.
1042.104(d).
* * * * *
    (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 for freshly manufactured
marine engines covers these components even if another company produces
the component. Your emission-related warranty does not cover components
whose failure would not increase an engine's emissions of any regulated
pollutant. For remanufactured engines, your emission-related warranty
is required to cover only those parts that you supply or those parts
for which you specify allowable part manufacturers. It does not need to
cover used parts that are not replaced during the remanufacture.
* * * * *
    147. Section 1042.125 is amended by revising the heading,
introductory text, and paragraphs (a)(1)(iii) and (d) to read as
follows:

Sec.  1042.125  Maintenance instructions.

    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.  1042.245 and in 40 CFR part 1065. The
restrictions specified in paragraphs (a) through (e) of this section
related to allowable maintenance apply only to Category 1 and Category
2 engines. Manufacturers may specify any maintenance for Category 3
engines.
    (a) * * *
    (1) * * *
    (iii) You provide the maintenance free of charge and clearly say so
in your maintenance instructions.
* * * * *
    (d) Noncritical emission-related maintenance. Subject to the
provisions of this paragraph (d), you may schedule any amount of
emission-related inspection or maintenance that is not covered by
paragraph (a) of this section (that is, maintenance that is neither
explicitly identified as critical emission-related maintenance, nor
that we approve as critical emission-related maintenance). Noncritical
emission-related maintenance generally includes maintenance on the
components we specify in 40 CFR part 1068, Appendix I that is not
covered in paragraph (a) of this section. You must state in the owners
manual that these steps are not necessary to keep the emission-related
warranty valid. If operators fail to do this maintenance, this does not
allow you to disqualify those engines from in-use testing or deny a
warranty claim. Do not take these inspection or maintenance steps
during service accumulation on your emission-data engines.
* * * * *
    148. Section 1042.135 is amended by revising paragraphs (c)(5),
(c)(8), (c)(9), and (c)(11) and adding paragraph (c)(12) to read as
follows:

Sec.  1042.135  Labeling.

* * * * *
    (c) * * *
    (5) State the date of manufacture [DAY (optional), MONTH, and
YEAR]; however, you may omit this from the label if you stamp, engrave,
or otherwise permanently identify it elsewhere on the engine, in which
case you must also describe in your application for certification where
you will identify the date on the engine.
* * * * *
    (8) State the useful life for your engine family if the applicable
useful life is based on the provisions of Sec.  1042.101(e)(2) or (3),
or Sec.  1042.104(d)(2).
    (9) Identify the emission control system. Use terms and
abbreviations as described in 40 CFR 1068.45. You may omit this
information from the label if there is not enough room for it and you
put it in the owners manual instead.
* * * * *
    (11) For a Category 1 or Category 2 engine that can be modified to
operate on residual fuel, but has not been certified to meet the
standards on such a fuel, include the statement: ``THIS ENGINE IS
CERTIFIED FOR OPERATION ONLY WITH DIESEL FUEL. MODIFYING THE ENGINE TO
OPERATE ON RESIDUAL OR INTERMEDIATE FUEL MAY BE A VIOLATION OF FEDERAL
LAW SUBJECT TO CIVIL PENALTIES.''
    (12) For an engine equipped with on-off emissions controls as
allowed by Sec.  1042.115, include the statement: ``THIS ENGINE IS
CERTIFIED WITH ON-OFF EMISSION CONTROLS. OPERATION OF THE ENGINE
CONTRARY TO 40 CFR 1042.115(g) IS A VIOLATION OF FEDERAL LAW SUBJECT TO
CIVIL PENALTIES.''
* * * * *

    149. Section 1042.140 is amended by revising the heading and
introductory text and adding paragraph (g) to read as follows:

Sec.  1042.140  Maximum engine power, displacement, power density, and
maximum in-use engine speed.

    This section describes how to determine the maximum engine power,
displacement, and power density of an engine for the purposes of this
part. Note that maximum engine power may differ from the definition of
``maximum test power'' in Sec.  1042.901. This section also specifies
how to determine maximum in-use engine speed for Category 3 engines.
* * * * *
    (g) Calculate a maximum test speed for the nominal power curve as
specified in 40 CFR 1065.610. This is the maximum in-use engine speed
used for calculating the NOX standard in Sec.  1042.104 for
Category 3 engines. Alternatively, you may use a lower value if engine
speed will be limited in actual use to that lower value.
    150. Section 1042.145 is amended by revising paragraph (a) and the
heading of paragraph (c) introductory text and adding paragraph (h) to
read as follows:

Sec.  1042.145  Interim provisions.

    (a) General. The provisions in this section apply instead of other
provisions in this part. This section describes when these interim
provisions expire. Only the provisions of paragraph (h) of this section
apply for Category 3 engines.
* * * * *
    (c) Part 1065 test procedures for Category 1 and Category 2
engines. * * *
* * * * *
    (h) The following interim provisions apply for Category 3 engines:
    (1) Applicability of Tier 3 standards to Category 3 engines
operating in Alaska, Hawaii, and U.S. Pacific territories. (i) Category
3 engines are not required to comply with the Tier 3 NOX
standard when operating in areas of Guam, American Samoa, or the
Commonwealth of the Northern Mariana Islands. Category 3 engines are
also not required to comply with the Tier 3 NOX standards
when operating in the waters of the smallest Hawaiian islands or in the
waters of Alaska west of Kodiak. For the purpose of this paragraph
(h)(1), ``the smallest Hawaiian islands'' includes all Hawaiian islands
other than Hawaii, Kahoolawe, Kauai, Lanai, Maui, Molokai, Niihau, and
Oahu. Engines must comply fully with the appropriate Tier 2
NOX standard and all other applicable requirements when
operating in the areas identified in this paragraph (h)(1).
    (ii) The provisions of paragraph (h)(1)(i) of this section do not
apply for areas included in an ECA. The Tier 3 standards apply in full
for any area included in an ECA.
    (2) Part 1065 test procedures. You must generally use the test
procedures specified in subpart F of this part for Category 3 engines,
including the applicable test procedures in 40 CFR part 1065. You may
use a combination of the test procedures specified in this part and the
test procedures specified in 40 CFR part 94 before January 1, 2016
without request. After this date, you must use test procedures only as
specified in subpart F of this part.

Subpart C--[Amended]

    151. Section 1042.201 is amended by revising paragraph (h) to read
as follows:

Sec.  1042.201  General requirements for obtaining a certificate of
conformity.

* * * * *
    (h) For engines that become new after being placed into service,
such as engines installed on imported vessels, we may specify alternate
certification provisions consistent with the intent of this part. See
the definition of ``new marine engine'' in Sec.  1042.901.
    152. Section 1042.205 is amended by adding paragraph (b)(12) and
revising paragraphs (i), (o), and (s)(5) to read as follows:

Sec.  1042.205  Application requirements.

* * * * *
    (b) * * *
    (12) Include any other information required by this part with
respect to AECDs. For example, see Sec.  1042.115 for requirements
related to on-off technologies.
* * * * *
    (i) Include the maintenance and warranty instructions you will give
to the ultimate purchaser of each new engine (see Sec. Sec.  1042.120
and 1042.125). Describe your plan for meeting warranty obligations
under Sec.  1042.120.
* * * * *
    (o) Present emission data for HC, NOX, PM, and CO on an
emission-data engine to show your engines meet emission standards as
specified in Sec. Sec.  1042.101 or 1042.104. Note that you must submit
PM data for all engines, whether or not a PM standard applies. Show
emission figures before and after applying adjustment factors for
regeneration and deterioration factors for each pollutant and for each
engine. If we specify more than one grade of any fuel type (for
example, high-sulfur and low-sulfur diesel fuel), you need to submit
test data only for one grade, unless the regulations of this part
specify otherwise for your engine. Include emission results for each
mode for Category 3 engines or for other engines if you do discrete-
mode testing under Sec.  1042.505. Note that Sec. Sec.  1042.235 and
1042.245 allows you to submit an application in certain cases without
new emission data.
* * * * *
    (s) * * *
    (5) For Category 2 and Category 3 engines, propose a range of
adjustment for each adjustable parameter, as described in Sec.
1042.115(d). Include information showing why the limits, stops, or
other means of inhibiting adjustment are effective in preventing
adjustment of parameters on in-use engines to settings outside your
proposed adjustable ranges.
* * * * *
    153. Section 1042.220 is revised to read as follows:

Sec.  1042.220  Amending maintenance instructions.

    You may amend your emission-related maintenance instructions after
you submit your application for certification as long as the amended
instructions remain consistent with the provisions of Sec.  1042.125.
You must send the Designated Compliance Officer a written request to
amend your application for certification for an engine family if you
want to change the emission-related maintenance instructions in a way
that could affect emissions. In your request, describe the proposed
changes to the maintenance instructions. If operators follow the
original maintenance instructions rather than the newly specified
maintenance, this does not allow you to disqualify those engines from
in-use testing or deny a warranty claim.
    (a) If you are decreasing or eliminating any specified maintenance,
you may distribute the new maintenance instructions to your customers
30 days after we receive your request, unless we disapprove your
request. This would generally include replacing one maintenance step
with another. We may approve a shorter time or waive this requirement.
    (b) If your requested change would not decrease the specified
maintenance, you may distribute the new maintenance instructions
anytime after you send your request. For example, this paragraph (b)
would cover adding instructions to increase the frequency of filter
changes for engines in severe-duty applications.

    (c) You need not request approval if you are making only minor
corrections (such as correcting typographical mistakes), clarifying
your maintenance instructions, or changing instructions for maintenance
unrelated to emission control. We may ask you to send us copies of
maintenance instructions revised under this paragraph (c).
    154. Section 1042.225 is amended by revising paragraphs (b)(2),
(e), and (f) to read as follows:

Sec.  1042.225  Amending applications for certification.

* * * * *
    (b) * * *
    (2) Include engineering evaluations or data showing that the
amended engine family complies with all applicable requirements. You
may do this by showing that the original emission-data engine is still
appropriate for showing that the amended family complies with all
applicable requirements.
* * * * *
    (e) 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.
    (f) You may ask us to approve a change to your FEL 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 include the new FEL on the emission control
information label for all engines produced after the change. You may
ask us to approve a change to your FEL in the following cases:
    (1) You may ask to raise your FEL for your engine family at any
time. In your request, you must show that you will still be able to
meet the emission standards as specified in subparts B and H of this
part. If you amend your application by submitting new test data to
include a newly added or modified engine, as described in paragraph
(b)(3) of this section, use the appropriate FELs with corresponding
production volumes to calculate emission credits for the model year, as
described in subpart H of this part. In all other circumstances, you
must use the higher FEL for the entire family to calculate emission
credits under subpart H of this part.
    (2) You may ask to lower the FEL for your engine family only if you
have test data from production engines showing that emissions are below
the proposed lower FEL. The lower FEL applies only to engines you
produce after we approve the new FEL. Use the appropriate FELs with
corresponding production volumes to calculate emission credits for the
model year, as described in subpart H of this part.
    155. Section 1042.230 is amended by revising paragraphs (a), (b),
(f) introductory text, and (g) and adding paragraph (d) to read as
follows:

Sec.  1042.230  Engine families.

    (a) For purposes of certification, divide your product line into
families of engines that are expected to have similar emission
characteristics throughout the useful life as described in this
section. You may not group engines in different engine categories in
the same family. Your engine family is limited to a single model year.
    (b) For Category 1 engines, group engines in the same engine family
if they are the same in all the following aspects:
    (1) The combustion cycle and the fuel with which the engine is
intended or designed to be operated.
    (2) The cooling system (for example, raw-water vs. separate-circuit
cooling).
    (3) Method of air aspiration.
    (4) Method of exhaust aftertreatment (for example, catalytic
converter or particulate trap).
    (5) Combustion chamber design.
    (6) Nominal bore and stroke.
    (7) Cylinder arrangement (for engines with aftertreatment devices
only).
    (8) Method of control for engine operation other than governing
(i.e., mechanical or electronic).
    (9) Application (commercial or recreational).
    (10) Numerical level of the emission standards that apply to the
engine, except as allowed under paragraphs (f) and (g) of this section.
* * * * *
    (d) For Category 3 engines, group engines into engine families
based on the criteria specified in Section 4.3 of the Annex VI
Technical Code (incorporated by reference in Sec.  1042.910), except as
allowed in paragraphs (e) and (f) of this section.
* * * * *
    (f) You may group engines that are not identical with respect to
the things listed in paragraph (b), (c), or (d) of this section in the
same engine family, as follows:
* * * * *
    (g) If you combine engines that are subject to different emission
standards into a single engine family under paragraph (f) of this
section, you must certify the engine family to the more stringent set
of standards for that model year. For Category 3 engine families that
include a range of maximum in-use engine speeds, use the highest value
of maximum in-use engine speed to establish the applicable
NOX emission standard.
    156. Section 1042.235 is amended by revising the introductory text
and paragraphs (a), (c), and (d) introductory text to read as follows:

Sec.  1042.235  Emission testing required for a certificate of
conformity.

    This section describes the emission testing you must perform to
show compliance with the emission standards in Sec.  1042.101(a) or
Sec.  1042.104. See Sec.  1042.205(p) regarding emission testing
related to the NTE standards. See Sec. Sec.  1042.240 and 1042.245 and
40 CFR part 1065, subpart E, regarding service accumulation before
emission testing. See Sec.  1042.655 for special testing provisions
available for Category 3 engines subject to Tier 3 standards.
    (a) Select an emission-data engine from each engine family for
testing. For engines at or above 560 kW, you may use a development
engine that is equivalent in design to the engine being certified. For
Category 3 engines, you may use a single-cylinder version of the
engine. Using good engineering judgment, select the engine
configuration most likely to exceed an applicable emission standard
over the useful life, considering all exhaust emission constituents and
the range of installation options available to vessel manufacturers.
* * * * *
    (c) We may measure emissions from any of your emission-data engines
or other engines from the engine 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 from one of your engines, the results
of that testing become the official emission results for the engine.
Unless we later invalidate these data, we may decide not to consider
your data in determining if your engine family meets applicable
requirements.
    (3) Before we test one of your engines, we may set its adjustable
parameters to any point within the specified adjustable ranges (see
Sec.  1042.115(d)).
    (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 where we determine
that an engine parameter is not an adjustable parameter (as defined in
Sec.  1042.901) but that it is subject to production variability.
    (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:
* * * * *
    157. Section 1042.240 is amended by revising paragraphs (a), (b),
and (c) introductory text and adding paragraphs (e) and (f) to read as
follows:

Sec.  1042.240  Demonstrating compliance with exhaust emission
standards.

    (a) For purposes of certification, your engine family is considered
in compliance with the emission standards in Sec.  1042.101(a) or Sec.
1042.104 if all emission-data engines representing that family have
test results showing deteriorated emission levels at or below these
standards. This includes all test points over the course of the
durability demonstration. See paragraph (f) of this section for
provisions related to demonstrating compliance with non-duty-cycle
standards, such as NTE standards.. 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 a deteriorated
emission level for any pollutant that is above an applicable emission
standard. Similarly, your engine family is deemed not to comply if any
emission-data engine representing that family has test results showing
any emission level above the applicable not-to-exceed emission standard
for any pollutant. This includes all test points over the course of the
durability demonstration.
    (c) To compare emission levels from the emission-data engine with
the applicable emission standards, apply deterioration factors to the
measured emission levels for each pollutant. Section 1042.245 specifies
how to test your Category 1 or Category 2 engine to develop
deterioration factors that represent the deterioration expected in
emissions over your engines' full useful life. See paragraph (e) of
this section for determining deterioration factors for Category 3
engines. Your deterioration factors must take into account any
available data from in-use testing with similar engines. Small-volume
engine manufacturers and post-manufacture marinizers may use assigned
deterioration factors that we establish. Apply deterioration factors as
follows:
* * * * *
    (e) For Category 3 engines, determine a deterioration factor based
on an engineering analysis. The engineering analysis must describe how
the measured emission levels from the emission-data engine show that
engines comply with applicable emission standards throughout the useful
life. Include this analysis in your application for certification and
add a statement that all data, analyses, evaluations, and other
information you used are available for our review upon request.
    (f) For NTE standards and mode caps, use good engineering judgment
to demonstrate compliance based on testing of low-hour engines. You
may, but are not required to, apply the same deterioration factors used
to show compliance with the applicable duty-cycle standards. We will
deny your application for certification if we determine that your low-
hour test data show that your engines would exceed one or more NTE
standard or mode cap during their useful lives.
    158. Section 1042.245 is amended by revising the introductory text
and paragraph (a) to read as follows:

Sec.  1042.245  Deterioration factors.

    This section describes how to determine deterioration factors for
Category 1 and Category 2 engines, either with an engineering analysis,
with pre-existing test data, or with new emission measurements. Apply
these deterioration factors to determine whether your engines will meet
the duty-cycle emission standards throughout the useful life as
described in Sec.  1042.240. This section does not apply for Category 3
engines.
    (a) You may ask us to approve deterioration factors for an engine
family with established technology based on engineering analysis
instead of testing. Engines certified to a NOx+HC standard
or FEL greater than the Tier 3 NOx+HC standard are
considered to rely on established technology for control of gaseous
emissions, except that this does not include any engines that use
exhaust-gas recirculation or aftertreatment. In most cases,
technologies used to meet the Tier 1 and Tier 2 emission standards
would qualify as established technology. We must approve your plan to
establish a deterioration factor under this paragraph (a) before you
submit your application for certification.
* * * * *
    159. Section 1042.250 is amended by revising paragraphs (a) and (c)
and removing paragraph (e) to read as follows:

Sec.  1042.250  Recordkeeping and reporting.

    (a) Send the Designated Compliance Officer information related to
your U.S.-directed production volumes as described in Sec.  1042.345.
In addition, within 45 days after the end of the model year, you must
send us a report describing information about engines you produced
during the model year as follows:
    (1) State the total production volume for each engine family that
is not subject to reporting under Sec.  1042.345.
    (2) State the total production volume for any engine family for
which you produce engines after completing the reports required in
Sec.  1042.345.
* * * * *
    (c) Keep data from routine emission tests (such as test cell
temperatures and relative humidity readings) for one year after we
issue the associated certificate of conformity. Keep all other
information specified in this section for eight years after we issue
your certificate.
* * * * *
    160. Section 1042.255 is amended by revising paragraph (b) to read
as follows:

Sec.  1042.255  EPA decisions.

* * * * *
    (b) We may deny your application for certification if we determine
that your engine family fails to comply with emission standards or
other requirements of this part or the Clean Air Act. We will base our
decision on all available information. If we deny your application, we
will explain why in writing.
* * * * *

Subpart D--[Amended]

    161. Section 1042.301 is amended by revising paragraphs (a)(2),
(c), (e), and (f) to read as follows:

Sec.  1042.301  General provisions.

    (a) * * *
    (2) We may exempt Category 1 engine families with a projected U.S.-
directed production volume below 100 engines from routine testing under
this subpart. Request this exemption in your application for
certification and include your basis for projecting a production volume
below 100 units. We will approve your request if we agree that you have
made good-faith estimates of your production volumes. Your exemption is
approved when we grant your certificate. You must promptly notify us if
your actual production exceeds 100 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).
* * * * *
    (c) Other regulatory provisions authorize us to suspend, revoke, or
void your certificate of conformity, or order recalls for engine
families, without regard to whether they have passed these production-
line testing requirements. The requirements of this subpart do not
affect our ability to do selective enforcement audits, as described in
40 CFR part 1068. Individual engines in families that pass these
production-line testing requirements must also conform to all
applicable regulations of this part and 40 CFR part 1068.
* * * * *
    (e) If you certify a Category 1 or Category 2 engine family with
carryover emission data, as described in Sec.  1042.235(d), and these
equivalent engine families consistently pass the production-line
testing requirements over the preceding two-year period, you may ask
for a reduced testing rate for further production-line testing for that
family. The minimum testing rate is one engine per engine family. If we
reduce your testing rate, we may limit our approval to any number of
model years. In determining whether to approve your request, we may
consider the number of engines that have failed the emission tests.
    (f) We may ask you to make a reasonable number of production-line
engines available for a reasonable time so we can test or inspect them
for compliance with the requirements of this part. For Category 3
engines, you are not required to deliver engines to us, but we may
inspect and test your engines at any facility at which they are
assembled or installed in vessels.
    162. A new Sec.  1042.302 is added to subpart D to read as follows:

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

    If you produce Category 3 engines that are subject to the
requirements of this part, you must test them as described in this
subpart, except as specified in this section.
    (a) You must test each engine at the sea trial of the vessel in
which it is installed or within the first 300 hours of operation,
whichever occurs first. 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.
    (b) You are only required to measure NOX emissions. You
do not need to measure HC, CO or PM emissions under this subpart.
    (c) If you are unable to operate the engine at the test points for
the specified duty cycle, you may approximate these points consistent
with the specifications of section 6 of Appendix 8 to the
NOX Technical Code and show compliance with the alternate
installed-engine standard of Sec.  1042.104(g). You must obtain EPA
approval of your test procedure prior to testing the engine. Include in
your request a description of your basis for concluding that the engine
cannot be tested at the actual test points of the specified duty-cycle.
    (d) You may measure NOX emissions at additional test
points for the purposes of the continuous NOX monitoring
requirements of Sec.  1042.110(d). If you do, you must report these
values along with your other test results. Describe in your application
for certification how you plan to use these values for continuous
NOX monitoring.
    (e) You may ask to measure emissions according to the Direct
Measurement and Monitoring method specified in section 6.4 of the
NOX Technical Code.
    163. Section 1042.305 is amended by revising paragraphs (a), (d)
introductory text, (d)(2), (e)(2), and (g) to read as follows:

Sec.  1042.305  Preparing and testing production-line engines.

* * * * *
    (a) Test procedures. Test your production-line engines using the
applicable testing procedures in subpart F of this part to show you
meet the duty-cycle emission standards in subpart B of this part. For
Category 1 and Category 2 engines, the not-to-exceed standards apply
for this testing of Category 1 and Category 2 engines, but you need not
do additional testing to show that production-line engines meet the
not-to-exceed standards. The mode cap standards apply for the testing
of Category 3 engines.
* * * * *
    (d) Setting adjustable parameters. Before any test, we may require
you to adjust any adjustable parameter on a Category 1 engine to any
setting within its physically adjustable range. We may adjust or
require you to adjust any adjustable parameter on a Category 2 or
Category 3 engine to any setting within its specified adjustable range.
* * * * *
    (2) We may specify adjustments within the physically adjustable
range or the specified adjustable range by considering their effect on
emission levels. We may also consider how likely it is that someone
will make such an adjustment with in-use engines.
    (e) * * *
    (2) For Category 2 or Category 3 engines, you may ask us to approve
a Green Engine Factor for each regulated pollutant for each engine
family. Use the Green Engine Factor to adjust measured emission levels