[Code of Federal Regulations]
[Title 40, Volume 18]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR94.304]

[Page 631-632]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 94--CONTROL OF EMISSIONS FROM MARINE COMPRESSION-IGNITION ENGINES--
Table of Contents
 
   Subpart D Certification Averaging, Banking, and Trading Provisions
 
Sec. 94.304  Compliance requirements.

    (a) Manufacturers wishing to participate in certification averaging, 
banking and trading programs shall select a FEL for each engine family 
they wish to include. The level of the FEL shall be selected by the 
manufacturer, subject to the upper limits described in paragraph (m) of 
this section. An engine family certified to an FEL is subject to all 
provisions specified in this part, except that the applicable FEL 
replaces the applicable THC+NOX and PM emission standard for 
the family participating in the averaging, banking, and trading program.
    (b) A manufacturer may certify one or more engine families at FELs 
above or below the applicable emission standard, provided the summation 
of the manufacturer's projected balance of all credit transactions in a 
given calendar year is greater than or equal to zero, as calculated for 
each family under Sec. 94.305 and reported under Sec. 94.309.
    (c) Manufacturers certifying engine families with FELs exceeding the 
applicable emission standard shall obtain emission credits in amounts 
sufficient to address the shortfall. Credits may be obtained from 
averaging, banking, or trading, subject to the restrictions described in 
this subpart.
    (d) Manufacturers certifying engine families with FELs below the 
applicable emission standard may generate emission credits to average, 
bank, or trade, or a combination thereof.
    (e) An engine family may not generate credits for one pollutant 
while also using credits for another pollutant in the same model year.
    (f) Credits may only be used for certification; they may not be used 
to remedy a violation of the FEL determined by production line or in-use 
testing. Credits may be used to allow subsequent production of engines 
for an engine family failing production line testing if the manufacturer 
elects to recertify to a higher FEL.
    (g) [Reserved].
    (h) If an FEL is changed after initial certification in any given 
model year, the manufacturer must conduct production line testing to 
verify that the emission levels are achieved, with one exception: when 
an FEL is changed immediately after (and because of) a production line 
testing failure, additional verification testing is not required.
    (i) Manufacturers participating in the averaging, banking and 
trading program must demonstrate compliance with the applicable emission 
standards

[[Page 632]]

at the end of the model year. Manufacturers that have certified engine 
families to FELs above the applicable emission standards and do not have 
sufficient emission credits to offset the difference between the 
emission standard and the FEL for such engine families will be in 
violation of the conditions of the certificate of conformity for such 
engine families. The certificates of conformity may be voided ab initio 
for those engine families.
    (j) In the event of a negative credit balance resulting from a 
credit trade, both the buyer(s) and the seller(s) are liable, except in 
cases involving fraud. Certificates of all engine families participating 
in a negative trade may be voided ab initio.
    (1) Where a buyer of credits is not responsible for causing the 
negative credit balance, the buyer is only liable to supply additional 
credits equivalent to any amount of invalid credits that the buyer used 
for its engine family(ies).
    (2) Credit holders responsible for the credit shortfall may be 
subject to the requirements of Sec. 94.309(g)(3).
    (k) The following provisions limit credit exchanges between 
different types of engines:
    (1) Credits generated by Category 1 engine families may be used for 
compliance by Category 1 or Category 2 engine families. Credits 
generated from Category 1 engine families for use by Category 2 engine 
families must be discounted by 25 percent.
    (2) Credits generated by Category 2 engine families may be used for 
compliance only by Category 2 engine families.
    (3) Credits may not be exchanged between recreational and commercial 
engines.
    (l) Credit life shall be unlimited.
    (m) Upper limits. The FELs for THC+NOX and PM for new 
engines certified for participation in this averaging, banking and 
trading program may not exceed the following values:
    (1) For Category 1 engines, the FEL may not exceed the levels 
contained in Table D-1, which follows:

                      Table D-1--Category 1 Upper Limits for Tier 2 Family Emission Limits
----------------------------------------------------------------------------------------------------------------
                                                                            Model year  THC+NOX FEL   PM FEL  g/
                       Subcategory liters/cylinder                             \1\        g/kW-hr       kW-hr
----------------------------------------------------------------------------------------------------------------
Power [ge] 37 kW disp. < 0.9.............................................         2005         11.5          1.2
0.9 [le] disp. < 1.2.....................................................         2004         11.5          1.2
1.2 [le] disp. < 2.5.....................................................         2004         10.5         0.54
2.5 [le] disp. < 5.0.....................................................         2007         10.5         0.54
----------------------------------------------------------------------------------------------------------------
\1\ The model years listed indicate the model years for which the specified standards start.

    (2) For Category 2 engines, the FEL may not exceed the applicable 
standard by more than 25 percent.

[64 FR 73331, Dec. 29, 1999, as amended at 67 FR 68346, Nov. 8, 2002]