[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: 40CFR89.206] [Page 73] 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. 89.206 Trading. (a) Requirements for Tier 1 engines rated at or above 37 kW. (1) A nonroad engine manufacturer may exchange emission credits with other nonroad engine manufacturers within the same averaging set in trading. (2) Credits for trading can be obtained from credits banked in a previous model year or credits generated during the model year of the trading transaction. (3) Traded credits can be used for averaging, banking, or further trading transactions within the restrictions described in Sec. 89.204(c). (b) 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 manufacturer may exchange emission credits with other nonroad engine manufacturers within the same averaging set in trading. (2) Credits for trading can be obtained from credits banked in previous model years that have not expired or credits generated during the model year of the trading transaction. (3) Traded credits can be used for averaging, banking, or further trading transactions within the restrictions described in Sec. 89.204(c) and paragraph (b)(4) of this section. (4) Emission credits generated from engines rated at or above 19 kW utilizing indirect fuel injection may not be traded to other manufacturers. (c) In the event of a negative credit balance resulting from a transaction, both the buyer and the seller are liable, except in cases deemed involving fraud. Certificates of all engine families participating in a negative trade may be voided ab initio under Sec. 89.126(c). [63 FR 57008, Oct. 23, 1998]