[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: 40CFR1039.701]

[Page 520]
 
                   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 H_Averaging, Banking, and Trading for Certification
 
Sec. 1039.701  General provisions.


    (a) You may average, bank, and trade (ABT) emission credits for 
purposes of certification as described in this subpart to show 
compliance with the standards of this part. Participation in this 
program is voluntary.
    (b) Section 1039.740 restricts the use of emission credits to 
certain averaging sets.
    (c) The definitions of Subpart I of this part apply to this subpart. 
The following definitions also apply:
    (1) Actual emission credits means emission credits you have 
generated that we have verified by reviewing your final report.
    (2) Averaging set means a set of engines in which emission credits 
may be exchanged only with other engines in the same averaging set.
    (3) Broker means any entity that facilitates a trade of emission 
credits between a buyer and seller.
    (4) Buyer means the entity that receives emission credits as a 
result of a trade.
    (5) Reserved emission credits means emission credits you have 
generated that we have not yet verified by reviewing your final report.
    (6) Seller means the entity that provides emission credits during a 
trade.
    (7) Standard means the emission standard that applies under subpart 
B of this part for engines not participating in the ABT program of this 
subpart.
    (8) Trade means to exchange emission credits, either as a buyer or 
seller.
    (d) You may not use emission credits generated under this subpart to 
offset any emissions that exceed an FEL or standard. This applies for 
all testing, including certification testing, in-use testing, selective 
enforcement audits, and other production-line testing. However, if 
emissions from an engine exceed an FEL or standard (for example, during 
a selective enforcement audit), you may use emission credits to 
recertify the engine family with a higher FEL that applies only to 
future production.
    (e) Engine families that use emission credits for one or more 
pollutants may not generate positive emission credits for another 
pollutant.
    (f) Emission credits may be used in the model year they are 
generated or in future model years. Emission credits may not be used for 
past model years.
    (g) You may increase or decrease an FEL during the model year by 
amending your application for certification under Sec. 1039.225. The 
new FEL may apply only to engines you have not already introduced into 
commerce. Each engine's emission control information label must include 
the applicable FELs.