[Code of Federal Regulations]
[Title 40, Volume 16]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR86.007-15]

[Page 76-77]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 86--CONTROL OF EMISSIONS FROM NEW AND IN-USE HIGHWAY VEHICLES AND ENGINES--Table of Contents
 
  Subpart A--General Provisions for Emission Regulations for 1977 and 
 
Sec. 86.007-15  NOX and particulate averaging, trading, and banking for heavy-duty engines.

    Section 86.007-15 includes text that specifies requirements that 
differ from Sec. 86.004-15. Where a paragraph in Sec. 86.004-15 is 
identical and applicable to Sec. 86.007-15, this may be indicated by 
specifying the corresponding paragraph and the statement ``[Reserved]. 
For guidance see Sec. 86.004-15.''
    (a) through (l) [Reserved]. For guidance see Sec. 86.004-15.
    (m) The following provisions apply for model year 2007 and later 
engines (including engines certified during years 2007-2009 under the 
phase-in provisions of Sec. 86.007-11(g)(1), Sec. 86.005-10(a), or 
Sec. 86.008-10(f)(1)). These provisions apply instead of the provisions 
of paragraphs Sec. 86.004-15 (a) through (k) to the extent that they are 
in conflict.
    (1) Manufacturers of Otto-cycle engines may participate in an NMHC 
averaging, banking and trading program to show compliance with the 
standards specified in Sec. 86.008-10. The generation and use of NMHC 
credits are subject to the same provisions in paragraphs Sec. 86.004-15 
(a) through (k) that apply for NOX plus NMHC credits, except 
as otherwise specified in this section.
    (2) Credits are calculated as NOX or NMHC credits for 
engines certified to separate NOX and NMHC standards. 
NOX plus NMHC credits (including banked credits and credits 
that are generated during years 2007-2009 under the phase-in provisions 
of Sec. 86.007-11(g)(1), Sec. 86.005-10(a), or Sec. 86.008-10(f)(1)) may 
be used to show compliance with 2007 or later NOX standards ( 
NOX or NMHC standards for Otto-cycle engines), subject to an 
0.8 discount factor (e.g., 100 grams of NOX plus NMHC credits 
is equivalent to 80 grams of NOX credits).
    (3) NOX or NMHC (or NOX plus NMHC) credits may 
be exchanged between heavy-duty Otto-cycle engine families certified to 
the engine standards of this subpart and heavy-duty Otto-cycle engine 
families certified to the chassis standards of subpart S of this part, 
subject to an 0.8 discount factor (e.g., 100 grams of NOX (or 
NOX plus NMHC) credits generated from engines would be 
equivalent to 80 grams of NOX credits if they are used in the 
vehicle program of subpart S, and vice versa).
    (4) Credits that were previously discounted when they were banked 
according to paragraph (c) of Sec. 86.004-15, are subject to an 
additional discount factor of 0.888 instead of the 0.8 discount factor 
otherwise required by paragraph (m)(2) or (m)(3) of this section. This 
results in a total discount factor of 0.8 (0.9 x 0.888 = 0.8).
    (5) For diesel engine families, the combined number of engines 
certified to FELs higher than 0.50 g/bhp-hr using banked NOX 
(and/or NOX plus NMHC) credits in any given model year may 
not exceed 10 percent of the manufacturer's U.S.-directed production of 
engines in all heavy-duty diesel engine families for that model year.
    (6) The FEL must be expressed to the same number of decimal places 
as the standard (generally, one-hundredth of a gram per brake 
horsepower-hour). For engines certified to standards expressed only one-
tenth of a gram per brake horsepower-hour, if the FEL is below 1.0, then 
add a zero to the standard in the second decimal place and express the 
FEL to nearest one-hundredth of a gram per brake horsepower-hour.
    (7) Credits are to be rounded to the nearest one-hundredth of a 
Megagram using ASTM E29-93a (Incorporated by reference at Sec. 86.1).
    (8) Credits generated for 2007 and later model year diesel engine 
families, or generated for 2008 and later model year Otto-cycle engine 
families are not discounted (except as specified in paragraph (m)(2) or 
(m)(3) of this section), and do not expire.
    (9) For the purpose of using or generating credits during a phase-in 
of new standards, a manufacturer may elect to split an engine family 
into two subfamilies (e.g., one which uses credits and one which 
generates credits). The manufacturer must indicate in the application 
for certification that the engine family is to be split, and may assign 
the numbers and configurations of

[[Page 77]]

engines within the respective subfamilies at any time prior to the 
submission of the end-of-year report required by Sec. 86.001-23.
    (i) Manufacturers certifying a split diesel engine family to both 
the Phase 1 and Phase 2 standards with equally sized subfamilies may 
exclude the engines within that split family from end-of-year 
NOX (or NOX+NMHC) ABT calculations, provided that 
neither subfamily generates credits for use by other engine families, or 
uses banked credits, or uses averaging credits from other engine 
families. All of the engines in that split family must be excluded from 
the phase-in calculations of Sec. 86.007-11(g)(1) (both from the number 
of engines complying with the standards being phased-in and from the 
total number of U.S.-directed production engines.)
    (ii) Manufacturers certifying a split Otto-cycle engine family to 
both the Phase 1 and Phase 2 standards with equally sized subfamilies 
may exclude the engines within that split family from end-of-year 
NOX (or NOX+NMHC) ABT calculations, provided that 
neither subfamily generates credits for use by other engine families, or 
uses banked credits, or uses averaging credits from other engine 
families. All of the engines in that split family must be excluded from 
the phase-in calculations of Sec. 86.008-10(f)(1) (both from the number 
of engines complying with the standards being phased-in and from the 
total number of U.S.-directed production engines.)
    (iii) Manufacturers certifying a split engine family may label all 
of the engines within that family with a single NOX or 
NOX+NMHC FEL. The FEL on the label will apply for all SEA or 
other compliance testing.
    (iv) Notwithstanding the provisions of paragraph (m)(9)(iii) of this 
section, for split families, the NOX FEL shall be used to 
determine applicability of the provisions of Sec. 86.007-11(a)(3)(ii), 
(a)(4)(i)(B), and (h)(1), and Sec. 86.008-10(g).
    (10) For model years 2007 through 2009, to be consistent with the 
phase-in provisions of Sec. 86.007-11(g)(1), credits generated from 
engines in one diesel engine service class (e.g., light-heavy duty 
diesel engines) may be used for averaging by engines in a different 
diesel engine service class, provided the credits are calculated for 
both engine families using the conversion factor and useful life of the 
engine family using the credits, and the engine family using the credits 
is certified to the standards listed in Sec. 86.007-11(a)(1). Banked or 
traded credits may not be used by any engine family in a different 
service class than the service class of the engine family generating the 
credits.

[66 FR 5163, Jan. 18, 2001]