[Code of Federal Regulations]
[Title 40, Volume 31]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR1039.104]

[Page 488-494]
 
                   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 B_Emission Standards and Related Requirements
 
Sec.  1039.104  Are there interim provisions that apply only for a limited time?

    The provisions in this section apply instead of other provisions in 
this part. This section describes when these interim provisions apply.
    (a) Incentives for early introduction. This paragraph (a) allows you 
to reduce the number of engines subject to the applicable standards in 
Sec.  1039.101 or Sec.  1039.102, when some of your engines are 
certified to the specified levels earlier than otherwise required. The 
engines that are certified early are considered offset-generating 
engines. The provisions of this paragraph (a), which describe the 
requirements applicable to offset-generating engines, apply beginning in 
model year 2007. These offset generating engines may generate additional 
allowances for equipment manufacturers under the incentive program 
described in Sec.  1039.627; you may instead use these offsets under 
paragraph (a)(2) of this section in some cases.
    (1) For early-compliant engines to generate offsets for use either 
under this paragraph (a) or under Sec.  1039.627, you must meet the 
following general provisions:
    (i) You may not generate offsets from engines below 19 kW.
    (ii) You must begin actual production of engines covered by the 
corresponding certificate by the following dates:
    (A) For engines at or above 19 kW and below 37 kW: September 1, 
2012.
    (B) For engines at or above 37 kW and below 56 kW: September 1, 2012 
if you choose Option 1 in Table 3 of Sec.  1039.102, or 
September 1, 2011 if you do not choose Option 1 in Table 3 of 
Sec.  1039.102.
    (C) For engines in the 56-130 kW power category: September 1, 2011.
    (D) For engines in the 130-560 kW power category: September 1, 2010.
    (E) For engines above 560 kW: September 1, 2014.
    (iii) Engines you produce after December 31 of the year shown in 
paragraph (a)(1)(ii) of this section may not generate offsets.
    (iv) You may not use ABT credits to certify offset-generating 
engines.
    (v) Offset-generating engines must be certified to the Tier 4 
standards and requirements under this part 1039.
    (2) If equipment manufacturers decline offsets for your offset-
generating engines under Sec.  1039.627, you may not generate ABT 
credits with these engines, but you may reduce the number of engines 
that are required to meet the standards in Sec.  1039.101 or 1039.102 as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                      You may reduce the
                                                        That are       number of engines
                                   With maximum     certified to the   in the same power
        For every . . .          engine power . .      applicable      category that are   In later model years
                                        .           standards in . .   required to meet          by . . .
                                                           .               the . . .

----------------------------------------------------------------------------------------------------------------
(i) 2 engines.................  19 <= kW < 37....  Table 2 of Sec.  PM standard in      3 engines.
                                                    1039.102 \1\.      Table 2 of Sec.  
                                                                       1039.102
                                                                       applicable to
                                                                       model year 2013
                                                                       or 2014 engines
                                                                       or the PM
                                                                       standard in Table
                                                                       1 of Sec.  
                                                                       1039.101.
(ii) 2 engines................  56 <= kW <= 560..  Table 4, 5, or 6   Phase-out           3 engines.
                                                    of Sec.  standards in
                                                    1039.102 for       Tables 4 through
                                                    Phase-out          6 of Sec.  
                                                    engines.           1039.102.
(iii) 2 engines...............  kW =    Table 1 of Sec.  Standards in        3 engines.\2\
                                 19.                1039.101.          Tables 2 through
                                                                       7 of Sec.  
                                                                       1039.102 or
                                                                       standards in
                                                                       Table 1 of Sec.  
                                                                       1039.101.
(iv) 1 engine.................  kW =    Table 1 of Sec.  Standards in        2 engines.\2\
                                 19.                1039.101 + 0.20    Tables 2 through
                                                    g/kW-hr NOX        7 of Sec.  
                                                    standard.          1039.102 or
                                                                       standards in
                                                                       Table 1 of Sec.  
                                                                       1039.101.
----------------------------------------------------------------------------------------------------------------
\1\ The engine must be certified to the PM standard applicable to model year 2013 engines, and to the NOX+NMHC
  and CO standards applicable to model year 2012 engines.

[[Page 489]]


\2\ For engines above 560 kW, 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.

    (3) Example: If you produce 100 engines in the 56-130 kW power 
category in model year 2008 that are certified to the 56-130 kW 
standards listed in Sec.  1039.101, and you produced 10,000 engines in 
this power category in model year 2015, then only 9,850 of these model 
year 2015 engines would need to comply with the standards listed in 
Sec.  1039.101. The 100 offset-generating engines in model year 2008 
could not use or generate ABT credits.
    (4) Offset-using engines (that is, those not required to certify to 
the standards of Sec.  1039.101 or Sec.  1039.102 under paragraph (a)(2) 
of this section) are subject to the following provisions:
    (i) If the offset is being used under paragraph (a)(2)(i) of this 
section for an engine that would otherwise be certified to the model 
year 2013 or 2014 standards in Table 2 of Sec.  1039.102 or the 
standards in Table 1 of Sec.  1039.101, this engine must be certified to 
the standards and requirements of this part 1039, except that the only 
PM standard that applies is the steady-state PM standard that applies 
for model year 2012. Such an engine may not generate ABT credits.
    (ii) If the offset is being used under paragraph (a)(2)(ii) of this 
section for an engine that would otherwise be certified to the phase-out 
standards in Tables 4 through 6 of Sec.  1039.102, this engine must be 
certified to the standards and requirements of this part 1039, except 
that the PM standard is the Tier 3 PM standard that applies for this 
engine's maximum power. Such an engine will be treated as a phase-out 
engine for purposes of determining compliance with percentage phase-in 
requirements. Such an engine may not generate ABT credits.
    (iii) All other offset-using engines must meet the standards and 
other provisions that apply in model year 2011 for engines in the 19-130 
kW power categories, in model year 2010 for engines in the 130-560 kW 
power category, or in model year 2014 for engines above 560 kW. Show 
that engines meet these emission standards by meeting all the 
requirements of Sec.  1068.265. You must meet the labeling requirements 
in Sec.  1039.135, but add the following statement instead of the 
compliance statement in Sec.  1039.135(c)(12): ``THIS ENGINE MEETS U.S. 
EPA EMISSION STANDARDS UNDER 40 CFR 1039.104(a).'' For power categories 
with a percentage phase-in, these engines should be treated as phase-in 
engines for purposes of determining compliance with phase-in 
requirements.
    (5) If an equipment manufacturer claims offsets from your engine for 
use under Sec.  1039.627, the engine generating the offset must comply 
with the requirements of paragraph (a)(1) of this section. You may not 
generate offsets for use under paragraphs (a)(2) and (5) of this section 
for these engines. You may generate ABT credits from these engines as 
follows:
    (i) To generate emission credits for NOX, 
NOX+NMHC, and PM, the engine must be certified to FELs at or 
below the standards in paragraph (a)(2) of this section.
    (ii) Calculate credits according to Sec.  1039.705 but use as the 
applicable standard the numerical value of the standard to which the 
engine would have otherwise been subject if it had not been certified 
under this paragraph (a).
    (iii) For the production volume, use the number of engines certified 
under this paragraph (a) for which you do not claim offsets under 
paragraph (a)(2) of this section.
    (6) You may include engines used to generate offsets under this 
paragraph (a) and engines used to generate offsets under Sec.  1039.627 
in the same engine family, subject to the provisions of Sec.  1039.230. 
The engine must be certified to FELs, as specified in paragraph 
(a)(5)(i) of this section. The FELs must be below the standard levels 
specified in paragraph (a)(2) of this section and those specified in 
Sec.  1039.627. In the reports required in Sec.  1039.730, include the 
following information for each model year:
    (i) The total number of engines that generate offsets under this 
paragraph (a).

[[Page 490]]

    (ii) The number of engines used to generate offsets under paragraph 
(a)(2) of this section.
    (iii) The names of equipment manufacturers that intend to use your 
offsets under Sec.  1039.627 and the number of offsets involved for each 
equipment manufacturer.
    (b) In-use compliance limits. For purposes of determining compliance 
after title or custody has transferred to the ultimate purchaser, 
calculate the applicable in-use compliance limits by adjusting the 
applicable standards or FELs. This applies only for engines at or above 
19 kW. The NOX adjustment applies only for engines with a 
NOX FEL no higher than 2.1 g/kW-hr The PM adjustment applies 
only for engines with a PM FEL no higher than the PM standard in Sec.  
1039.101 for the appropriate power category. Add the following 
adjustments to the otherwise applicable standards or FELs (steady-state, 
transient, and NTE) for NOX and PM:

----------------------------------------------------------------------------------------------------------------
                                                                                                      The PM
                                         If your engine's maximum    The NOX adjustment in g/kW-   adjustment in
         In model years . . .                 power is . . .                 hr is . . .          g/kW-hr is . .
                                                                                                         .
----------------------------------------------------------------------------------------------------------------
2013-2014............................  19 <= kW < 56..............  not allowed.................            0.01
2012-2016............................  56 <= kW < 130.............  0.16 for operating hours <=             0.01
                                                                     2000.
                                                                    0.25 for operating hours
                                                                     2001 to 3400.
                                                                    0.34 for operating hours  3400.
2011-2015............................  130 <= kW < 560............  0.16 for operating hours <=             0.01
                                                                     2000.
                                                                    0.25 for operating hours
                                                                     2001 to 3400.
                                                                    0.34 for operating hours  3400.
2011-2016............................  kW  560.........  0.16 for operating hours <=             0.01
                                                                     2000.
                                                                    0.25 for operating hours
                                                                     2001 to 3400.
                                                                    0.34 for operating hours  3400.
----------------------------------------------------------------------------------------------------------------

    (c) Provisions for small-volume manufacturers. Special provisions 
apply if you are a small-volume engine manufacturer subject to the 
requirements of this part. You must notify us in writing before January 
1, 2008 if you intend to use these provisions.
    (1) You may delay complying with certain otherwise applicable Tier 4 
emission standards and requirements as described in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                        Until model   Before that model year the
 If your engine's maximum power is . . .   You may delay meeting . . .   year . . .  engine must comply with . .
                                                                                                  .
----------------------------------------------------------------------------------------------------------------
kW < 19..................................  The standards and                   2011  The standards and
                                            requirements of this part.                requirements in 40 CFR
                                                                                      part 89.
19 <= kW < 37............................  The Tier 4 standards and            2016  The Tier 4 standards and
                                            requirements of this part                 requirements that apply
                                            that would otherwise be                   for model year 2008.
                                            applicable in model year
                                            2013.
37 <= kW < 56............................     See paragraph (c)(2) of this section for special provisions that
                                                          apply for engines in this power category.
56 <= kW < 130...........................  The standards and                   2015  The standards and
                                            requirements of this part.                requirements in 40 CFR
                                                                                      part 89.
----------------------------------------------------------------------------------------------------------------

    (2) To use the provisions of this paragraph (c) for engines at or 
above 37 kW and below 56 kW, choose one of the following:
    (i) If you comply with the 0.30 g/kW-hr PM standard in Sec.  
1039.102 in all model years from 2008 through 2012 without using PM 
credits, you may continue meeting that standard through 2015.
    (ii) If you do not choose to comply with paragraph (c)(2)(i) of this 
section, you may continue to comply with the standards and requirements 
in 40 CFR part 89 for model years through 2012, but you must begin 
complying in 2013 with Tier 4 standards and requirements specified in 
Table 3 of Sec.  1039.102 for model years 2013 and later.
    (3) After the delays indicated in paragraph (c)(1) and (2) of this 
section, you must comply with the same Tier 4 standards and requirements 
as all other manufacturers.

[[Page 491]]

    (4) For engines not in the 19-56 kW power category, if you delay 
compliance with any standards under this paragraph (c), you must do all 
the following things for the model years when you are delaying 
compliance with the otherwise applicable standards:
    (i) Produce engines that meet all the emission standards and other 
requirements under 40 CFR part 89 applicable for that model year, except 
as noted in this paragraph (c).
    (ii) Meet the labeling requirements in 40 CFR 89.110, but use the 
following compliance statement instead of the compliance statement in 40 
CFR 89.110(b)(10): ``THIS ENGINE COMPLIES WITH U.S. EPA REGULATIONS FOR 
[CURRENT MODEL YEAR] NONROAD COMPRESSION-IGNITION ENGINES UNDER 40 CFR 
1039.104(c).''.
    (iii) Notify the equipment manufacturer that the engines you produce 
under this section are excluded from the production volumes associated 
with the equipment-manufacturer allowance program in Sec.  1039.625.
    (5) For engines in the 19-56 kW power category, if you delay 
compliance with any standards under this paragraph (c), you must do all 
the following things for the model years when you are delaying 
compliance with the otherwise applicable standards:
    (i) Produce engines in those model years that meet all the emission 
standards and other requirements that applied for your model year 2008 
engines in the same power category.
    (ii) Meet the labeling requirements in Sec.  1039.135, but use the 
following compliance statement instead of the compliance statement in 
Sec.  1039.135: ``THIS ENGINE COMPLIES WITH U.S. EPA REGULATIONS FOR 
[CURRENT MODEL YEAR] NONROAD COMPRESSION-IGNITION ENGINES UNDER 40 CFR 
1039.104(c).''.
    (iii) Notify the equipment manufacturer that the engines you produce 
under this section are excluded from the production volumes associated 
with the equipment-manufacturer allowance program in Sec.  1039.625.
    (6) The provisions of this paragraph (c) may not be used to 
circumvent the requirements of this part.
    (d) Deficiencies for NTE standards. You may ask us to accept as 
compliant an engine that does not fully meet specific requirements under 
the applicable NTE standards. Such deficiencies are intended to allow 
for minor deviations from the NTE standards under limited conditions. We 
expect your engines to have functioning emission-control hardware that 
allows you to comply with the NTE standards.
    (1) Request our approval for specific deficiencies in your 
application for certification, or before you submit your application. We 
will not approve deficiencies retroactively to cover engines already 
certified. In your request, identify the scope of each deficiency and 
describe any auxiliary emission-control devices you will use to control 
emissions to the lowest practical level, considering the deficiency you 
are requesting.
    (2) We will approve a deficiency only if compliance would be 
infeasible or unreasonable considering such factors as the technical 
feasibility of the given hardware and the applicable lead time and 
production cycles--including schedules related to phase-in or phase-out 
of engines. We may consider other relevant factors.
    (3) Our approval applies only for a single model year and may be 
limited to specific engine configurations. We may approve your request 
for the same deficiency in the following model year if correcting the 
deficiency would require unreasonable hardware or software modifications 
and we determine that you have demonstrated an acceptable level of 
effort toward complying.
    (4) You may ask for any number of deficiencies in the first three 
model years during which NTE standards apply for your engines. For the 
next four model years, we may approve up to three deficiencies per 
engine family. Deficiencies of the same type that apply similarly to 
different power ratings within a family count as one deficiency per 
family. We may condition approval of any such additional deficiencies 
during these four years on any additional conditions we determine to be 
appropriate. We will not approve deficiencies after the seven-year 
period specified in this paragraph (d)(4).
    (e) Diesel test fuels and corresponding labeling requirements. For 
diesel-fueled engines in 2011 and later model years,

[[Page 492]]

the diesel test fuel is ultra low-sulfur diesel fuel specified in 40 CFR 
part 1065. For diesel-fueled engines in 2010 and earlier model years, 
use test fuels and meet labeling requirements as follows:
    (1) Use the following test fuels in 2010 and earlier model years:
    (i) Unless otherwise specified, the diesel test fuel is low-sulfur 
diesel fuel specified in 40 CFR part 1065.
    (ii) In model years 2007 through 2010, you may use ultra low-sulfur 
diesel fuel as the test fuel for any engine family that employs sulfur-
sensitive technology if you can demonstrate that in-use engines in the 
family will use diesel fuel with a sulfur concentration no greater than 
15 ppm.
    (iii) You may use ultra low-sulfur diesel fuel as the test fuel for 
engine families in any power category below 56 kW, as long as none of 
the engines in your engine family employ sulfur-sensitive technologies, 
you ensure that ultimate purchasers of equipment using these engines are 
informed that ultra low-sulfur diesel fuel is recommended, and you 
recommend to equipment manufacturers that a label be applied at the fuel 
inlet recommending 15 ppm fuel.
    (iv) For the engines described in Sec.  1039.101(c) that are 
certified to the 0.60 g/kW-hr PM standard in Table 1 of Sec.  1039.102 
in the 2010 model year, you may test with the ultra low-sulfur fuel 
specified in 40 CFR part 1065.
    (2) Meet the labeling requirements of this paragraph (e)(2) (or 
other labeling requirements we approve) to identify the applicable test 
fuels specified in paragraph (e)(1) of this section. Provide 
instructions to equipment manufacturers to ensure that they are aware of 
these labeling requirements.
    (i) For engines certified under the provisions of paragraph 
(e)(1)(i) of this section, include the following statement on the 
emission control information label and the fuel-inlet label specified in 
Sec.  1039.135: ``LOW SULFUR FUEL OR ULTRA LOW SULFUR FUEL ONLY''.
    (ii) For engines certified under the provisions of paragraph 
(e)(1)(ii) of this section, include the following statement on the 
emission control information label and the fuel-inlet label specified in 
Sec.  1039.135: ``ULTRA LOW SULFUR FUEL ONLY''.
    (iii) For engines certified under the provisions of paragraph 
(e)(1)(iii) of this section, include the following statement on the 
emission control information label specified in Sec.  1039.135: ``ULTRA 
LOW SULFUR FUEL RECOMMENDED''.
    (3) For model years 2010 and earlier, we will use the test fuel that 
you use under paragraph (e)(1) of this section, subject to the 
conditions of paragraph (e)(1) of this section.
    (f) Requirements for equipment manufacturers. If you produce 
equipment with engines certified to Tier 3 standards under Option 
2 of Table 3 of Sec.  1039.102 during model years from 2008 
through 2011, then a minimum number of pieces of equipment you produce 
using 2012 model year engines must have engines certified to the Option 
2 standards, as follows:
    (1) For equipment you produce with 2012 model year engines at or 
above 37 kW and below 56 kW, determine the minimum number of these 
engines that must be certified to the Option 2 standards in 
Table 3 of Sec.  1039.102 as follows:
    (i) If all the equipment you produce using 2008 through 2011 model 
year engines use engines certified to Tier 3 standards under Option 
2 of Table 3 of Sec.  1039.102, then all the 2012 model year 
engines you install must be certified to the Option 2 standards 
of Table 3 of Sec.  1039.102.
    (ii) If you produce equipment using 2008 through 2011 model year 
engines with some engines certified to Option 1 standards of 
Table 3 of Sec.  1039.102 and some engines certified to Tier 3 standards 
under Option 2 standards of Table 3 of Sec.  1039.102, 
calculate the minimum number of 2012 model year engines you must install 
that are certified to the Option 2 standards of Table 3 of 
Sec.  1039.102 from the following equation:

Minimum number = [(T-O1-F)/(T-F)-0.05] x P

Where:

T = The total number of 2008-2010 model year engines at or above 37 kW 
and below 56 kW that you use in equipment you produce.
O1 = The number of engines from the 2008-2010 model years 
certified under Option 1

[[Page 493]]

of Table 3 of Sec.  1039.102 that you use in equipment you produce.
F = The number of 2008-2010 model year engines at or above 37 kW and 
below 56 kW that you use in equipment you produce under the flexibility 
provisions of Sec.  1039.625.
P = The total number of 2012 model year engines at or above 37 kW and 
below 56 kW that you use in equipment you produce.

    (2) As needed for the calculation required by this paragraph (f), 
keep records of all equipment you produce using 2008-2012 model year 
engines at or above 37 kW and below 56 kW. If you fail to keep these 
records, you may not use any 2012 model year engines certified to Option 
1 standards in your equipment.
    (3) If you fail to comply with the provisions of this paragraph (f), 
then using 2012 model year engines certified under Option 1 of 
Table 3 of Sec.  1039.102 (or certified to less stringent standards) in 
such equipment violates the prohibitions in Sec.  1068.101(a)(1).
    (g) Alternate FEL caps. You may certify a limited number of engines 
from your U.S.-directed production volume to the FEL caps in Table 1 of 
this section instead of the otherwise applicable FEL caps in Sec.  
1039.101(d)(1), Sec.  1039.102(e), or Sec.  1039.102(g)(2), subject to 
the following provisions:
    (1) The provisions of this paragraph (g) apply during the model 
years shown in Table 1 of this section. During this period, the number 
of engines certified to the FEL caps in Table 1 of this section must not 
exceed 20 percent in any single model year in each power category. The 
sum of percentages over the four-year period must not exceed a total of 
40 percent in each power category. If you certify an engine under an 
alternate FEL cap in this paragraph (g) for any pollutant, count it 
toward the allowed percentage of engines certified to the alternate FEL 
caps.
    (2) If your engine is not certified to transient emission standards 
under the provisions of Sec.  1039.102(a)(1)(iii), you must adjust your 
FEL upward by a temporary compliance adjustment factor (TCAF) before 
calculating your negative emission credits under Sec.  1039.705, as 
follows:
    (i) The temporary compliance adjustment factor for NOX is 
1.1.
    (ii) The temporary compliance adjustment factor for PM is 1.5.
    (iii) The adjusted FEL (FELadj) for calculating emission 
credits is determined from the steady-state FEL (FELss) using 
the following equation:

FELadj = (FELss) x (TCAF)

    (iv) The unadjusted FEL (FELss) applies for all purposes 
other than credit calculation.
    (3) These alternate FEL caps may not be used for phase-in engines.
    (4) Do not apply TCAFs to gaseous emissions for phase-out engines 
that you certify to the same numerical standards (and FELs if the 
engines are certified using ABT) for gaseous pollutants as you certified 
under the Tier 3 requirements of 40 CFR part 89.

                                 Table 1 of Sec.  1039.104--Alternate FEL Caps
----------------------------------------------------------------------------------------------------------------
                                                                    Model years                     Model years
                                                  PM FEL cap, g/      for the     NOX FEL cap, g/     for the
              Maximum engine power                     kW-hr       alternate PM        kW-hr       alternate NOX
                                                                      FEL cap                         FEL cap
----------------------------------------------------------------------------------------------------------------
19 <= kW < 56...................................            0.30   \1\ 2012-2015  ..............  ..............
56 <= kW < 130 \2\..............................            0.30   \3\ 2012-2015             3.8   \3\ 2014-2015
130 <= kW <= 560................................            0.20       2011-2014             3.8            2014
kW  560 \4\..........................            0.10       2015-2018             3.5      2015-2018
----------------------------------------------------------------------------------------------------------------
\1\ For manufacturers certifying engines under Option 1 of Table 3 of Sec.  1039.102, these alternate
  FEL caps apply for model years from 2013 through 2016.
\2\ For engines below 75 kW, the FEL caps are 0.40 g/kW-hr for PM emissions and 4.4 g/kW-hr for NOX emissions.
\3\ For engines certified under the provisions of Sec.  1039.102(d)(2) or (e)(1)(ii), the alternate NOX FEL cap
  in the table applies only for the 2015 model year.
\4\ For engines above 560 kW, the provision for alternate NOX FEL caps is limited to generator-set engines. For
  example, if you produce 1,000 generator-set engines above 560 kW in 2015, up to 200 of them may be certified
  to the alternate NOX FEL caps.


[[Page 494]]


[69 FR 39213, June 29, 2004, as amended at 70 FR 40462, July 13, 2005]