Section

[Code of Federal Regulations]
[Title 40, Volume 30]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR1039.627]

[Page 515-517]

TITLE 40--PROTECTION OF ENVIRONMENT

CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)

PART 1039_CONTROL OF EMISSIONS FROM NEW AND IN-USE NONROAD
COMPRESSION-IGNITION ENGINES--Table of Contents

Subpart G_Special Compliance Provisions

Sec. 1039.627 What are the incentives for equipment manufacturers to
use cleaner engines?

This section allows equipment manufacturers to generate additional
allowances under the provisions of Sec. 1039.625 by producing equipment
using engines at or above 19 kW certified to specified levels earlier
than otherwise required.
(a) For early-compliant engines to generate offsets for use under
this section, the following general provisions apply:
(1) The engine manufacturer must comply with the provisions of Sec.
1039.104(a)(1) for the offset-generating engines.
(2) Engines you install in your equipment after December 31 of the
years specified in Sec. 1039.104(a)(1) do not generate allowances under
this section, even if the engine manufacturer generated offsets for that
engine under Sec. 1039.104(a).
(3) Offset-generating engines must be certified to the following
standards under this part 1039:

[[Page 516]]

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You may reduce
the number of
Certified early engines in the
If the engine's maximum And you install . . . to the . . . same power In later model
power is . . . category that years by . . .
are required to
meet the . . .
----------------------------------------------------------------------------------------------------------------
(i) kW = 19..... One engine................. Emissions Standards in One engine.
standards in Tables 2
Sec. through 7 of
1039.101. Sec.
1039.102 or in
Sec.
1039.101.
(ii) 56 <= kW < 130........ Two engines................ NOX standards Standards in One engine.
in Sec. Tables 2
1039.102(d)(1) through 7 of
, and NMHC Sec.
standard of 1039.102 or in
0.19 g/kW-hr, Sec.
a PM standard 1039.101.
of 0.02 g/kW-
hr, and a CO
standard of
5.0 g/kW-hr.
(iii) 130 <= kW < 560...... Two engines................ NOX standards Standards in One engine.
in Sec. Tables 2
1039.102(d)(2) through 7 of
, an NMHC Sec.
standard of 1039.102 or in
0.19 g/kW-hr, Sec.
a PM standard 1039.101.
of 0.02 g/kW-
hr, and a CO
standard of
3.5 g/kW-hr.
----------------------------------------------------------------------------------------------------------------

[[Page 517]]

(b) Using engine offsets. (1) You may use engine offsets generated
under paragraph (a) of this section to generate additional allowances
under Sec. 1039.625, as follows:
(i) For each engine offset, you may increase the number of available
allowances under Sec. 1039.625(b) for that power category by one engine
for the years indicated.
(ii) For engines in 56-560 kW power categories, you may transfer
engine offsets across power categories within this power range.
Calculate the number of additional allowances by scaling the number of
generated engine offsets according to the ratio of engine power for
offset and allowance engines. Make this calculation for all your offset
engines for which you will transfer offsets under this paragraph
(b)(1)(ii), then round the result to determine the total number of
available power-weighted allowances. For example, if you generate engine
offsets for 75 500-kW engines, you may generate up to 37,500 kW-engines
of power-weighted allowances. You may apply this to 375 100-kW engines
or any other combination that totals 37,500 kW-engines.
(2) You may decline to use the offsets. If you decline, the engine
manufacturer may use the provisions of Sec. 1039.104(a)(1).
(c) Limitation on offsets for engines above 560 kW. For engines
above 560 kW, you must track how many engines you install in generator
sets and how many you install in other applications under the provisions
of this section. Offsets from generator-set engines may be used only for
generator-set engines. Offsets from engines for other applications may
be used only for other applications besides generator sets.
(d) Reporting. When you submit your first annual report under Sec.
1039.625(g), include the following additional information related to the
engines you use to generate offsets under this section:
(1) The name of each engine family involved.
(2) The number of engines from each power category.
(3) The maximum engine power of each engine.
(4) For engines above 560 kW, whether you use engines certified to
the standards for generator-set engines.
(e) In-use fuel. If the engine manufacturer certifies using ultra
low-sulfur diesel fuel, you must take steps to ensure that the in-use
engines in the family will use diesel fuel with a sulfur concentration
no greater than 15 ppm. For example, selling equipment only into
applications where the operator commits to a central-fueling facility
with ultra low-sulfur diesel fuel throughout its lifetime would meet
this requirement.