[Code of Federal Regulations]
[Title 40, Volume 20]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR89.203]
[Page 69-72]
TITLE 40--PROTECTION OF ENVIRONMENT
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
PART 89_CONTROL OF EMISSIONS FROM NEW AND IN-USE NONROAD
COMPRESSION-IGNITION ENGINES--Table of Contents
Subpart C_Averaging, Banking, and Trading Provisions
Sec. 89.203 General provisions.
(a) The averaging, banking, and trading programs for NOX.
NMHC+NOX. and PM emissions from eligible nonroad engines are
described in this subpart. Participation in these programs is voluntary.
(b) Requirements for Tier 1 engines rated at or above 37 kW. (1) A
nonroad engine family is eligible to participate in the averaging,
banking, and trading program for NOX emissions and the
banking and trading program for PM emissions if it is subject to
regulation under subpart B of this part with certain exceptions
specified in paragraph (b)(2) of this section. No averaging, banking,
and trading program is available for meeting the Tier 1 HC, CO, or smoke
emission standards specified in subpart B of this part. No averaging
program is available for meeting the Tier 1 PM emission standards
specified in subpart B of this part.
(2) Nonroad engines may not participate in the averaging, banking,
and trading programs if they are exported or are sold as Blue Sky Series
engines as described in Sec. 89.112(f). Nonroad engines certified on a
special test procedure under Sec. 89.114(a), may not participate in the
averaging, banking and trading programs unless the manufacturer has
requested that the engines be included in the averaging, banking, and
trading programs at the time the request for the special test procedure
is made and has been granted approval by the Administrator for inclusion
in the averaging, banking, and trading programs.
(3) A manufacturer may certify one or more nonroad engine families
at NOX family emission limits (FELs) above or below the Tier
1 NOX emission standard, provided the summation of the
manufacturer's projected balance of all NOX credit
transactions in a given model year is greater than or equal to zero, as
determined under Sec. 89.207(a). A manufacturer may certify one or more
nonroad engine families at PM FELs below the Tier 2 PM emission standard
that will be applicable to those engine families.
(i) FELs for NOX may not exceed the Tier 1 upper limit
specified in Sec. 89.112(d).
(ii) An engine family certified to an FEL is subject to all
provisions specified in this part, except that the applicable FEL
replaces the emission standard for the family participating in the
averaging, banking, and trading program.
(iii) A manufacturer of an engine family with a NOX FEL
exceeding the Tier 1 NOX emission standard must obtain
NOX emission credits sufficient to address the associated
credit shortfall via averaging, banking, or trading.
(iv) An engine family with a NOX FEL below the applicable
Tier 1 standard may generate emission credits for averaging, banking,
trading, or a combination thereof. An engine family
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with a PM FEL below the Tier 2 standard that will be applicable to that
engine family may generate emission credits for banking, trading, or a
combination thereof. Emission credits may not be used to offset an
engine family's emissions that exceed its applicable FEL. Credits may
not be used to remedy nonconformity determined by a Selective
Enforcement Audit (SEA) or by recall (in-use) testing. However, in the
case of an SEA failure, credits may be used to allow subsequent
production of engines for the family in question if the manufacturer
elects to recertify to a higher FEL.
(4) NOX credits generated in a given model year may be
used to address credit shortfalls with other engines during that model
year or in any subsequent model year except as noted under paragraph
(b)(5)(ii) of this section. PM credits may be used to address credit
shortfalls with Tier 2 and later engines greater than or equal to 37 kW
and Tier 1 and later engines less than 37 kW and greater than or equal
to 19 kW. Credits generated in one model year may not be used for prior
model years.
(5) The following provisions apply to the use of Tier 1
NOX credits for showing compliance with the Tier 2 or Tier 3
NMHC+NOX standards.
(i) A manufacturer may use NOX credits from engines
subject to the Tier 1 NOX standard to address
NMHC+NOX credit shortfalls with engines in the same averaging
set subject to Tier 1 NMHC+NOX or Tier 2 NMHC+NOX
emission standards.
(ii) A manufacturer may not use NOX credits from engines
subject to the Tier 1 standards to address NMHC+NOX credit
shortfalls with engines subject to the Tier 3 NMHC+NOX
emission standards.
(c) Requirements for Tier 2 and later engines rated at or above 37
kW and Tier 1 and later engines rated under 37 kW. (1) A nonroad engine
family is eligible to participate in the averaging, banking, and trading
programs for NMHC+NOX emissions and PM emissions if it is
subject to regulation under subpart B of this part with certain
exceptions specified in paragraph (c)(2) of this section. No averaging,
banking, and trading program is available for meeting the CO or smoke
emission standards specified in subpart B of this part.
(2) Nonroad engines may not participate in the averaging, banking,
and trading programs if they are exported or are sold as Blue Sky Series
engines as described in Sec. 89.112(f). Nonroad engines certified on a
special test procedure under Sec. 89.114(a), may not participate in the
averaging, banking and trading programs unless the manufacturer has
requested that the engines be included in the averaging, banking, and
trading programs at the time the request for the special test procedure
is made and has been granted approval by the Administrator for inclusion
in the averaging, banking, and trading programs.
(3)(i) A manufacturer may certify one or more nonroad engine
families at FELs above or below the applicable NMHC+NOX
emission standard and PM emission standard, provided the summation of
the manufacturer's projected balance of all NMHC+NOX credit
transactions and the summation of the manufacturer's projected balance
of all PM credit transactions in a given model year in a given averaging
set is greater than or equal to zero, as determined under Sec.
89.207(b).
(A) FELs for NMHC+NOX and FELs for PM may not exceed the
upper limits specified in Sec. 89.112(d).
(B) An engine family certified to an FEL is subject to all
provisions specified in this part, except that the applicable FEL
replaces the emission standard for the family participating in the
averaging, banking, and trading program.
(C) A manufacturer of an engine family with an FEL exceeding the
applicable emission standard must obtain emission credits sufficient to
address the associated credit shortfall via averaging, banking, or
trading, within the restrictions described in Sec. 89.204(c) and Sec.
89.206(b)(4).
(D) An engine family with an FEL below the applicable standard may
generate emission credits for averaging, banking, trading, or a
combination thereof. Emission credits may not be used to offset an
engine family's emissions that exceed its applicable FEL. Credits may
not be used to remedy
[[Page 71]]
nonconformity determined by a Selective Enforcement Audit (SEA) or by
recall (in-use) testing. However, in the case of an SEA failure, credits
may be used to allow subsequent production of engines for the family in
question if the manufacturer elects to recertify to a higher FEL.
(ii)(A) In lieu of generating credits under paragraph (c)(3)(i) of
this section, a manufacturer may certify one or more nonroad engine
families rated under 37 kW at family emission limits (FELs) above or
below the applicable NMHC+NOX emission standard and PM
emission standard. The summation of the manufacturer's projected balance
of all NMHC+NOX credit transactions and the summation of the
manufacturer's projected balance of all PM credit transactions in a
given model year, as determined under Sec. 89.207(b), are each allowed
to be less than zero. Separate calculations shall be required for the
following two categories of engines: engines rated under 19 kW and
engines rated at or above 19 kW and under 37 kW.
(B) For each calendar year a negative credit balance exists as of
December 31, a penalty equal to ten percent of the negative credit
balance as of December 31 of the calendar year shall be added to the
negative credit balance. The resulting negative credit balance shall be
carried into the next calendar year.
(C) For engines rated under 19 kW, a manufacturer will be allowed to
carry over a negative credit balance until December 31, 2003. For
engines rated at or above 19 kW and under 37 kW, a manufacturer will be
allowed to carry over a negative credit balance until December 31, 2002.
As of these dates, the summation of the manufacturer's projected balance
of all NMHC+NOX credit transactions and the summation of the
manufacturer's projected balance of all PM credit transactions must each
be greater than or equal to zero.
(D) FELs for NMHC+NOX and FELs for PM may not exceed the
upper limits specified in Sec. 89.112(d).
(E) An engine family certified to an FEL is subject to all
provisions specified in this part, except that the applicable
NMHC+NOX FEL or PM FEL replaces the NMHC+NOX
emission standard or PM emission standard for the family participating
in the averaging and banking program.
(F) A manufacturer of an engine family with an FEL exceeding the
applicable emission standard must obtain emission credits sufficient to
address the associated credit shortfall via averaging or banking. The
exchange of emission credits generated under this program with other
nonroad engine manufacturers in trading is not allowed.
(G) An engine family with an FEL below the applicable standard may
generate emission credits for averaging, banking, or a combination
thereof. Emission credits may not be used to offset an engine family's
emissions that exceed its applicable FEL. Credits may not be used to
remedy nonconformity determined by a Selective Enforcement Audit (SEA)
or by recall (in-use) testing. However, in the case of an SEA failure,
credits may be used to allow subsequent production of engines for the
family in question if the manufacturer elects to recertify to a higher
FEL.
(4)(i) Except as noted in paragraphs (c)(4)(ii), (c)(4)(iii), and
(c)(4)(iv) of this section, credits generated in a given model year may
be used during that model year or used in any subsequent model year.
Except as allowed under paragraph (c)(3)(ii) of this section, credits
generated in one model year may not be used for prior model years.
(ii) Credits generated from engines rated under 19 kW prior to the
implementation date of the applicable Tier 2 standards, shall expire on
December 31, 2007.
(iii) Credits generated from engines rated under 19 kW under the
provisions of paragraph (c)(3)(ii) shall expire on December 31, 2003.
(iv) Credits generated from engines rated at or above 19 kW and
under 37 kW under the provisions of paragraph (c)(3)(ii) of this section
shall expire on December 31, 2002.
(5) Except as provided in paragraph (b)(3) of this section, engine
families may not generate credits for one pollutant while also using
credits for another pollutant in the same model year.
[[Page 72]]
(6) Model year 2008 and 2009 engines rated under 8 kW that are
allowed to certify under this part because they meet the criteria in 40
CFR 1039.101(c) may not generate emission credits.
(d) Manufacturers must demonstrate compliance under the averaging,
banking, and trading programs for a particular model year within 270
days of the end of the model year. Except as allowed under paragraph
(c)(3)(ii) of this section, 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 standards 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
under Sec. 89.126(c) for those engine families.
[63 FR 57006, Oct. 23, 1998, as amended at 69 FR 39213, June 29, 2004]