[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: 40CFR94.306]

[Page 633-634]
 
                   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. 94.306  Certification.

    (a) In the application for certification a manufacturer must:
    (1) Declare its intent to include specific engine families in the 
averaging, banking, and/or trading programs. Separate declarations are 
required for each pollutant (THC+NOX and PM).
    (2) Declare FELs for each engine family participating in 
certification averaging, banking, and/or trading.
    (i) The FELs must be to the same number of significant digits as the 
emission standard.
    (ii) In no case may the FEL exceed the upper limit prescribed in 
Sec. 94.304(m).
    (3) Conduct and submit detailed calculations of projected emission 
credits (positive or negative) based on quarterly production projections 
for each participating family and for each pollutant, using the 
applicable equation in Sec. 94.305 and the applicable values of the 
terms in the equation for the specific family.
    (i) If the engine family is projected to have negative emission 
credits, state specifically the source (manufacturer/engine family) of 
the credits necessary to offset the credit deficit according to 
quarterly projected production.
    (ii) If the engine family is projected to generate credits, state 
specifically where the quarterly projected credits will be applied 
(manufacturer/engine family or reserved).
    (4) Submit a statement that the engines for which certification is 
requested will not, to the best of the manufacturer's belief, cause the 
manufacturer to have a negative credit balance when all credits are 
calculated for all the manufacturer's engine families participating in 
the averaging, banking, and trading program.
    (b) Based on this information, each manufacturer's certification 
application must demonstrate:
    (1) That at the end of model year production, each engine family has 
a net emissions credit balance equal to or greater than zero for any 
pollutant and program for which participation in certification under 
averaging, banking, and/or trading is being sought. The equation in 
section Sec. 94.305 shall be used in this calculation for each engine 
family.
    (2) That the manufacturer will obtain sufficient credits to be used 
to comply with the emission standard for any engine family with an FEL 
that exceeds the applicable emission standard, or where credits will be 
applied if the FEL is less than the emission standard. In cases where 
credits are being obtained, for each engine family involved the 
manufacturer must identify specifically the source of the credits being 
used (manufacturer/engine family). All such reports shall include all 
credits involved in certification averaging, banking, or trading.
    (3) That in cases where credits are being generated/supplied, the 
use of such credits is specifically designated (manufacturer/engine 
family or reserved). All such reports shall include all credits involved 
in certification averaging, banking, or trading.
    (c) Manufacturers must monitor projected versus actual production 
throughout the model year to ensure that compliance with emission 
standards is achieved at the end of the model year.
    (d) At the end of the model year, the manufacturer must provide the 
end-of-year reports required under Sec. 94.309.
    (1) Projected credits based on the information supplied in the 
certification application may be used to obtain a certificate of 
conformity. However, any such projected credits must be validated based 
on review of the end of model year reports and may be revoked

[[Page 634]]

at a later time based on follow-up audits or any other verification 
measure deemed appropriate by the Administrator.
    (2) Compliance for engine families using averaging, banking, or 
trading will be determined at the end of the model year. Manufacturers 
that have certified engine families with credit balances for 
THC+NOX and/or PM that do not equal or exceed zero shall be 
in violation of the conditions of the certificate of conformity for such 
engine families. The certificate of conformity may be voided ab initio 
for those engine families.
    (e) Other conditions of certification.
    (1) All certificates issued are conditional upon compliance by the 
manufacturer with the provisions of this subpart both during and after 
the calendar year of production.
    (2) Failure to comply with all provisions of this subpart will be 
considered to be a failure to satisfy the conditions upon which the 
certificate was issued, and the certificate may be deemed void ab 
initio.
    (3) The manufacturer bears the burden of establishing to the 
satisfaction of the Administrator that the conditions upon which the 
certificate was issued were satisfied or waived.