[Code of Federal Regulations]

[Title 40, Volume 31]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 40CFR1068.255]



[Page 833-835]

 

                   TITLE 40--PROTECTION OF ENVIRONMENT

 

         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)

 

PART 1068_GENERAL COMPLIANCE PROVISIONS FOR NONROAD PROGRAMS--Table of 

Contents

 

                   Subpart C_Exemptions and Exclusions

 

Sec.  1068.255  What are the provisions for exempting engines for 

hardship for equipment manufacturers and secondary engine manufacturers?



    This section describes how, in unusual circumstances, we may exempt 

certain engines to prevent a hardship to an equipment manufacturer or a 

secondary engine manufacturer. This section does not apply to products 

that are subject to vehicle-based emission standards.

    (a) Equipment exemption. As an equipment manufacturer, you may ask 

for approval to produce exempted equipment for up to 12 months. We will 

generally limit this to the first year that new or revised emission 

standards apply. Send the Designated Officer a written request for an 

exemption before you are in violation. In your request, you must show 

you are not at fault for the impending violation and



[[Page 834]]



that you would face serious economic hardship if we do not grant the 

exemption. This exemption is not available under this paragraph (a) if 

you manufacture the engine you need for your own equipment or if 

complying engines are available from other engine manufacturers that 

could be used in your equipment, unless we allow it elsewhere in this 

chapter. We may impose other conditions, including provisions to use an 

engine meeting less stringent emission standards or to recover the lost 

environmental benefit. In determining whether to grant the exemptions, 

we will consider all relevant factors, including the following:

    (1) The number of engines to be exempted.

    (2) The size of your company and your ability to endure the 

hardship.

    (3) The amount of time you had to redesign your equipment to 

accommodate a complying engine.

    (4) Whether there was any breach of contract by an engine supplier.

    (5) The potential for market disruption.

    (b) Engine exemption. As an engine manufacturer, you may produce 

nonconforming engines for the equipment we exempt in paragraph (a) of 

this section. You do not have to request this exemption for your 

engines, but you must have written assurance from equipment 

manufacturers that they need a certain number of exempted engines under 

this section. Add a permanent, legible label, written in block letters 

in English, to a readily visible part of each exempted engine. This 

label must include at least the following items:

    (1) The label heading ``EMISSION CONTROL INFORMATION''.

    (2) Your corporate name and trademark.

    (3) Engine displacement (in liters), rated power, and model year of 

the engine or whom to contact for further information.

    (4) One of the following statements:

    (i) If the engine does not meet any emission standards: ``THIS 

ENGINE IS EXEMPT UNDER 40 CFR 1068.255 FROM EMISSION STANDARDS AND 

RELATED REQUIREMENTS.''.

    (ii) If the engine meets alternate emission standards as a condition 

of an exemption under this section, we may specify a different statement 

to identify the alternate emission standards.

    (c) Secondary engine manufacturers. As a secondary engine 

manufacturer, you may ask for approval to produce exempted engines under 

this section for up to 12 months. We may require you to certify your 

engines to compliance levels above the emission standards that apply. 

For example, the in the case of multiple tiers of emission standards, we 

may require you to meet the standards from the previous tier.

    (1) For the purpose of this section, a secondary engine manufacturer 

is a manufacturer that produces an engine by modifying an engine that is 

made by a different manufacturer for a different type of application. 

This includes, for example, automotive engines converted for use in 

industrial applications, or land-based engines converted for use in 

marine applications. This applies whether the secondary engine 

manufacturer is modifying a complete or partially complete engine and 

whether the engine was previously certified to emission standards or 

not. To be a secondary engine manufacturer, you must not be controlled 

by the manufacturer of the base engine (or by an entity that also 

controls the manufacturer of the base engine). In addition, equipment 

manufacturers that substantially modify engines become secondary engine 

manufacturers. For the purpose of this definition, ``substantially 

modify'' means changing an engine in a way that could change its 

emission characteristics.

    (2) The provisions in paragraph (a) of this section that apply to 

equipment manufacturers requesting an exemption apply equally to you, 

except that you may manufacture the engines. Before we can approve the 

exemption under this section, you must commit to a plan to make up the 

lost environmental benefit.

    (i) If you produce uncertified engines under this exemption, we will 

calculate the lost environmental benefit based on our best estimate of 

uncontrolled emission rates for your engines.

    (ii) If you produce engines under this exemption that are certified 

to a compliance level less stringent than the



[[Page 835]]



emission standards that would otherwise apply, we will calculate the 

lost environmental benefit based on the compliance level you select for 

your engines.

    (3) The labeling requirements in paragraph (b) of this section apply 

to your exempted engines; however, if you certify engines to specific 

compliance levels, state on the label the compliance levels that apply 

to each engine.



[67 FR 68347, Nov. 8, 2002, as amended at 69 FR 39268, June 29, 2004; 70 

FR 40514, July 13, 2005]