[Federal Register: May 13, 1999 (Volume 64, Number 92)]
[Proposed Rules]
Page 26103-26142]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13my99-30]
Control of Air Pollution From New Motor Vehicles: Proposed Tier 2
Motor Vehicle Emissions Standards and Gasoline Sulfur Control
Requirements
[[Continued from page 26102]]
public hearings, we ask that you notify the contact person listed above
two weeks before the date of the hearing at which you plan to testify.
You should include in this notification the date of the hearing at
which the testimony will be presented, an estimate of the time required
for the presentation, and any need for audio/visual equipment. We also
suggest that sufficient copies of the statement or material to be
presented be made available to the audience. In addition, it is helpful
if the contact person receives a copy of the testimony or material
before the hearing.
The hearings will be conducted informally, and technical rules of
evidence will not apply. A sign-up sheet will be available at the
hearings for scheduling the order of testimony. At the scheduled two
day hearing, we suggest that testimony that primarily pertains to the
proposed fuel requirements be presented on the first day of the
hearings and that testimony that primarily pertains to the proposed
vehicle standards (and/or other aspects of this proposal) be presented
on the second day of the hearings. Written transcripts of the hearings
will be prepared. The official record of the hearings will be kept open
for 30 days after the hearing dates to allow submittal of supplementary
information.
VIII. Administrative Requirements
A. Administrative Designation and Regulatory Analysis
Under Executive Order 12866 (58 FR 51735, Oct. 4, 1993), the Agency
is required to determine whether this regulatory action would be
``significant'' and therefore subject to review by the Office of
Management and Budget (OMB) and the requirements of the Executive
Order. The order defines a ``significant regulatory action'' as any
regulatory action that is likely to result in a rule that may:
Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities;
<bullet> Create a serious inconsistency or otherwise interfere with
an action taken or planned by another agency;
<bullet> Materially alter the budgetary impact of entitlements,
grants, user fees, or loan programs or the rights and obligations of
recipients thereof; or,
<bullet> Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
Pursuant to the terms of Executive Order 12866, EPA has determined
that this proposal is a ``significant regulatory action'' because the
proposed vehicle standards, gasoline sulfur standards, and other
proposed regulatory provisions, if implemented, would have an annual
effect on the economy in excess of $100 million. Accordingly, a Draft
Regulatory Impact Analysis (RIA) has been prepared and is available in
the docket for this rulemaking. This action was submitted to the Office
of Management and Budget (OMB) for review as required by Executive
Order 12866. Written comments from OMB on today's action and responses
from EPA to OMB comments are in the public docket for this rulemaking.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601-612, was amended by
the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104-121, to ensure that concerns regarding small
entities are adequately considered during the development of new
regulations that affect them. In response to the provisions of this
statute, EPA has identified industries subject to this proposed rule
and has provided information to, and received comment from, small
entities and representatives of small entities in these industries. An
Initial Regulatory Flexibility Analysis (RFA) has been prepared by the
Agency to evaluate the economic impacts of today's proposal on small
entities.<SUP>108</SUP> The key elements of the Initial RFA include:
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\108\ The Initial RFA is contained in Chapter 8 of the
Regulatory Impact Analysis.
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<bullet> The number of affected small entities;
<bullet> The projected reporting, record keeping, and other
compliance requirements of the proposed rule, including the classes of
small entities that would be affected and the type of professional
skills necessary for preparation of the report or record;
<bullet> Other federal rules that may duplicate, overlap, or
conflict with the proposed rule; and,
<bullet> Any significant alternatives to the proposed rule that
accomplish the stated objectives of applicable statutes and that
minimize significant economic impacts of the proposed rule on small
entities.
The Agency convened a Small Business Advocacy Review Panel (the
Panel) under section 609(b) of the Regulatory Flexibility Act as added
by SBREFA. The purpose of the Panel was to collect the advice and
recommendations of representatives of small entities that could be
affected by today's proposed rule and to report on those comments and
the Panel's findings as to issues related to the key elements of the
Initial Regulatory Flexibility Analysis under section 603 of the
Regulatory Flexibility Act. The report of the Panel has been placed in
the rulemaking record.<SUP>109</SUP>
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\109\ Report of the Small Business Advocacy Panel on Tier 2
Light-Duty Vehicle and Light-Duty Truck Emission Standards, Heavy-
Duty Gasoline Engine Standards, and Gasoline Sulfur Standards,
October 1998.
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The contents of today's proposal and the Initial Regulatory
Flexibility Analysis reflect the recommendations in the Panel's report.
We summarize our outreach to small entities and our responses to the
recommendations of the Panel below. The Agency continues to be
interested in the potential impacts of the proposed rule on small
entities and welcomes additional comments during the rulemaking process
on issues related to such impacts.
1. Potentially Affected Small Businesses
The Initial Regulatory Flexibility Analysis identified small
businesses from the industries in the following table as subject to the
provisions of today's proposed rule:
Table VIII.1.--Industries Containing Small Businesses Potentially Affected by Today's Proposed Rule
----------------------------------------------------------------------------------------------------------------
Industry NAICS <SUP>a</SUP> codes SIC <SUP>b</SUP> codes Defined by SBA as a small business if: <SUP>c</SUP>
----------------------------------------------------------------------------------------------------------------
Motor Vehicle Manufacturers........ 336111 3711 <1000 employees.
336112
336120
Alternative Fuel Vehicle Converters 336311 3592 <500 employees.
541690 8931
336312 3714 <750 employees.
[[Page 26104]]
422720 5172 <100 employees.
454312 5984 <$5 million annual sales.
811198 7549
541514 8742
Independent Commercial Importers of 811112 7533 <$5 million annual sales.
Vehicles and Vehicle Components. 811198 7549
541514 8742
Petroleum Refiners................. 324110 2911 <1500 employees.
Petroleum Marketers and 422710 5171 <100 employees.
Distributors. 422720 5172
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<SUP>a</SUP> North American Industry Classification System.
<SUP>b</SUP> Standard Industrial Classification system.
<SUP>c</SUP> According to SBA's regulations (13 CFR 121), businesses with no more than the listed number of employees or
dollars in annual receipts are considered ``small entities'' for purposes of a regulatory flexibility
analysis.
The Initial RFA identified about 15 small petroleum refiners,
several hundred small petroleum marketers, and about 15 small
certifiers of covered vehicles (belonging to the other categories in
the above table) that would be subject to the proposed rule.
2. Small Business Advocacy Review Panel and the Evaluation of
Regulatory Alternatives
The Small Business Advocacy Review Panel was convened by EPA on
August 27, 1998. The Panel consisted of representatives of the Small
Business Administration (SBA), the Office of Management and Budget
(OMB), and EPA. During the development of today's proposal, EPA and the
Panel were in contact with representatives from the small businesses
that would be subject to the provisions in today's proposal. In
addition to verbal comments from industry noted by the Panel at
meetings and teleconferences, written comments were received from each
of the affected industry segments or their representatives. These
comments, alternatives suggested by the Panel to mitigate adverse
impacts on small businesses, and issues the Panel requested EPA take
additional comment on are contained in the report of the Panel and are
summarized below. Today's proposal incorporates or requests comment on
the alternatives and issues suggested by the Panel.
Fuel-Related Small Business Issues
Most of the small refiners stated that if they were required to
achieve 30 ppm sulfur levels on average with an 80 ppm per-gallon cap
without some regulatory relief, they would be forced out of business.
Thus, the Panel devoted much attention to regulatory alternatives to
address this concern. Most small refiners strongly supported delaying
mandatory compliance for their facilities. On the other hand, most
small refiners stated that a phase-in of gasoline sulfur standards
would not be helpful because it would be more cost-effective for them
to install the maximum technology required for the most stringent
sulfur levels that would ultimately be imposed.
The Society of Independent Gasoline Marketers of America (SIGMA)
commented that EPA should consider giving relief not only to refiners
that meet the SBA definition of small refiner but also to refineries
with relatively small production capacity that are owned by large
refining companies. This was because a refinery with a small production
capacity would operate essentially as an SBA-defined small refiner
would. SIGMA also noted that small gasoline marketers would be affected
by the closure of any refinery with small production capacity, whether
it was owned by a large company or an SBA-defined small refining
company.
The Panel recommended that small refiners be given a four to six
year period of relief during which less stringent gasoline sulfur
requirements would apply. The Panel also advised that EPA specifically
request comment on an alternative duration of ten years for the relief
period. Small refiners would be assigned interim sulfur standards
during this relief period based on their current individual refinery
sulfur levels. Following this relief period, small refiners would be
required to meet the industry-wide standard, although temporary
hardship relief would be available on a case-by-case basis. The
additional time provided to small refiners before compliance with the
industry-wide standard was required would allow (1) new sulfur-
reduction technologies to be proven-out by larger refiners, (2) the
costs of advanced technology units to drop as the volume of their sales
increases, (3) industry engineering and construction resources to be
freed-up, and (4) the acquisition of the necessary capital by small
refiners. The provisions that EPA is proposing for small refiners and
our requests for specific comments are found in Section IV.C.3.b.above.
The Panel concluded that adding gasoline sulfur to the fuel parameters
already being sampled and tested by gasoline marketers would likely
result in little, if any, additional burden. Therefore, the Panel did
not recommend any special provision for gasoline marketers.
Vehicle-Related Small Business Issues
Independent commercial importers of vehicles (ICIs) suggested that
the new emissions standards be phased-in with the phase-in schedule
based on the small vehicle manufacturer's annual production volume.
Secondly, the ICIs requested that small testing laboratories be
permitted to use older technology dynamometers than proposed for use by
the Agency. Finally, the ICIs commented that the certification process
should be waived for certain foreign vehicles. Small-volume vehicle
manufacturers (SVMs) stated that a phase-in of Tier-2 emissions
standards is essential. They further stated that SVMs should not be
required to comply until the end of the phase-in period, which should
not be before model year 2007. The SVMs also stated that a case-by-case
hardship relief provision should be provided for their members. SVMs
requested that a credit program be established with incentives for
larger manufacturers to make credits available to SVMs in meeting their
compliance goals.
Based on the above comments, the Panel advised that EPA consider
several
[[Page 26105]]
alternatives, individually or in combination, for the potential relief
that they might provide to small certifiers of vehicles. Our requests
for comments on these alternatives are found in Section V.A.8 above.
The Initial Regulatory Flexibility Analysis evaluates the financial
impacts of the proposed vehicle standards and fuel controls on small
entities. EPA believes that the regulatory alternatives considered in
today's document will provide substantial relief to small business from
the potential adverse economic impacts of complying with today's
proposed rule.
C. Paperwork Reduction Act
The information collection requirements (ICR) in this proposed rule
have been submitted for approval to the Office of Management and Budget
(OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The
Agency may not conduct or sponsor an information collection, and a
person is not required to respond to a request for information unless
the information collection request displays a currently valid OMB
control number. The OMB control numbers for EPA's regulations are
listed in 40 CFR part 9 and 48 CFR chapter 15.
The information collection requirements associated with today's
proposed rule belong to two distinct categories: (1) Those that pertain
to the proposed amendments to the vehicle certification requirements,
and (2) those that pertain to the proposed requirements for the control
of gasoline sulfur content. The information collection requirements are
contained in two separate ICR documents according to the category to
which they belong.<SUP>110</SUP>
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\110\ The information collection requirements associated with
the proposed amendments to the requirements for vehicle
certification are contained in the Information Collection Request
entitled ``Amendments to the Reporting and Recordkeeping
Requirements for Motor Vehicle Certification Under the Proposed Tier
2 Rule''. The information collection requirements associated with
the proposed gasoline sulfur control program are contained in the
Information Collection Request entitled ``Recordkeeping and
Reporting Requirements Regarding the Sulfur Content of Motor Vehicle
Gasoline Under the Tier 2 Rule''.
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The Paperwork Reduction Act stipulates that ICR documents estimate
the burden of activities that would be required of regulated parties
within a three year time period. Consequently, the ICR documents that
accompany today's proposed rule provide burden estimates for the
activities that would be required under the first three years of the
proposed program.
ICRs Pertaining to the Proposed Amendments to Vehicle Certification
Requirements
The information collection burden to vehicle certifiers associated
with the proposed amendments to the vehicle certification requirements
in today's document pertain to the proposed fleet-average
NO<INF>X</INF> standard and emission credits provisions. These proposed
requirements are very similar to those under the voluntary National Low
Emission Vehicle (NLEV) program, which includes a fleet-average
standard for nonmethane hydrocarbon organic gases (NMOG) and associated
emission credits provisions. The hours spent annually by a given
vehicle certifier on the information collection activities associated
with the proposed recordkeeping and reporting requirements depends upon
certifier-specific variables, including: the scope/variety of their
product line as reflected in the number of test groups and strategy
used to comply with the proposed fleet-average NO<INF>X</INF> standard,
the extent they utilize the proposed emissions credits provisions, and
whether they opted into the NLEV program. Vehicle certifiers that use
the proposed provisions for early banking of emission credits would be
subject to the associated information collection requirements as early
as September 1, 2000.<SUP>111</SUP> All vehicle certifiers would be
required to comply with the information collection requirements
associated with the amendments to the vehicle certification program
beginning September 1, 2003.<SUP>112</SUP> The ICR document for the
proposed amendments to the vehicle certification program provides
burden estimates for all of the associated information collection
requirements. The total information collection burden associated with
the proposed amendments to the vehicle certification requirements is
estimated at 8,361 hours and $564,172 annually for the certifiers of
light-duty vehicles and light-duty trucks.
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\111\ These ICRs would become effective on the date that model
year 2001 vehicles are introduced into commerce. EPA assumes that
September 1, 2000 is the earliest date that model year 2001 vehicles
will be marketed.
\112\ Assuming model year 2004 vehicles are introduced into
commerce on this date.
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ICRs Pertaining to the Proposed Requirements for Gasoline Sulfur
Control
The information collection burden to gasoline refiners, importers,
marketers, distributors, retailers and wholesale purchaser-consumers
(WPCs), and users of research and development (R&D) gasoline pertain to
the proposed gasoline sulfur control requirements. The scope of the
recordkeeping and reporting requirements for each regulated party, and
therefore the cost to that party, reflects the party's opportunity to
create, control, or alter the sulfur content of gasoline. As a result,
refiners and importers would have significant requirements, which are
necessary both for their own tracking, and that of downstream parties,
and for EPA enforcement. Parties downstream from the gasoline
production or import point, such as retailers, would have minimal
burdens that are primarily associated with the transfer and retention
of product transfer documents. Many of the reporting and recordkeeping
requirements for refiners and importers regarding the sulfur content of
gasoline on which the proposed rule would rely currently exist under
EPA's Reformulated Gasoline (RFG) and Anti-Dumping programs. The ICR
for the RFG program covered start up costs associated with reporting
gasoline sulfur content under the RFG program. Consequently, much of
the cost of the information collection requirements under the proposed
gasoline sulfur control program has already been accounted for under
the RFG program ICR.
The information collection requirements under the proposed sulfur
control program would evolve over time as the program is phased-in.
Beginning July 1, 2000, certain requirements would apply to parties
that voluntarily opt to generate credits for early sulfur reduction
under the proposed average banking and trading (ABT) provisions. Many
of the requirements would not become applicable until the beginning of
the sulfur control program on October 1, 2003, when all refiners would
be required to meet the proposed standards. The information collection
requirements under the proposed program would become stable after
January 1, 2008, when the optional small refiner provisions would
expire.<SUP>113</SUP>
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\113\ A refiner could petition EPA for an extension of the small
refiner provisions beyond January 1, 2008, based on hardship.
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The ICR document for the proposed gasoline sulfur control program
provides burden estimates for the activities that would be required
under the first three years of the sulfur control program, from July 1,
2000 through June 30, 2003. The burden associated with activities that
would be required after June 30, 2003 will be estimated in later ICRs.
The initial ICR for the gasoline sulfur control program, however, does
[[Page 26106]]
provide a qualitative characterization of all of the required
activities and associated burdens for the various regulated parties as
they develop, and until they become stable after January 1, 2008.
We estimate that the total burden of the information collection
requirements that would be applicable during the first three years of
the proposed gasoline sulfur control program would be 42,479 hours and
$2,149,865 annually. The estimated annual burden for the various
regulated entities under the initial three year period of the proposed
gasoline sulfur control program are as follows:
--Refiners: 31,231 hours, $1,879,822
--Importers: 40 hours, $2,067
--Pipelines: 85 hours, $2,785
--Terminals: 1,700 hours, $55,700
--Truckers: 3,333 hours, $118,000
--Retailers/WPCs: 6,087 hours, $ 91,298
--R&D Gasoline Users: 3 hours, $193
Total Burden of the Proposed ICRs
We estimate that the total burden of the recordkeeping and
reporting requirements associated with the proposed vehicle
certification and gasoline sulfur control requirements would be at
50,840 hours and $2,714,037 annually over the first three years that
these requirements would be in effect.
Comments on EPA's Burden Estimates
We request comments on the Agency's need for the information
proposed to be collected, the accuracy of our estimates of the
associated burdens, and any suggested methods for minimizing the
burden, including the use of automated techniques for the collection of
information. Comments on the ICR should be sent to: the Office of
Policy, Regulatory Information Division, U.S. Environmental Protection
Agency (Mail Code 2136), 401 M Street, SW., Washington, DC 20460,
marked ``Attention: Director of OP;'' and to the Office of Information
and Regulatory Affairs, Office of Management and Budget, 725 17th
Street, NW., Washington, DC 20503, marked ``Attention: Desk Officer for
EPA.'' Include the ICR number in any such correspondence. OMB is
required to make a decision concerning the ICR between 30 and 60 days
after publication of a proposed rule. Therefore, comments to OMB on the
ICR are most useful if received within 30 days of the publication date
of today's document. Any comments from OMB and from the public on the
information collection requirements in today's proposal will be placed
in the docket and addressed by EPA in the final rule.
Copies of the ICR documents can be obtained from Sandy Farmer,
Office of Policy, Regulatory Information Division, U.S. Environmental
Protection Agency (Mail Code 2137), 401 M Street, SW., Washington, DC
20460, or by calling (202) 260-2740. Insert the ICR title and/or OMB
control number in any correspondence. Copies may also be downloaded
from the internet at http://www.epa.gov.icr.
D. Intergovernmental Relations
1. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for federal agencies to assess the
effects of their regulatory actions on state, local, and tribal
governments, and the private sector. Under section 202 of the UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``federal mandates'' that
may result in expenditures to state, local, and tribal governments, in
the aggregate, or to the private sector, of $100 million or more for
any single year. Before promulgating a rule, for which a written
statement is needed, section 205 of the UMRA generally requires EPA to
identify and consider a reasonable number of regulatory alternatives
and adopt the least costly, most cost-effective, or least burdensome
alternative that achieves the objectives of the rule. The provisions of
section 205 do not apply when they are inconsistent with applicable
law. Moreover, section 205 allows EPA to adopt an alternative that is
not the least costly, most cost-effective, or least burdensome
alternative if EPA provides an explanation in the final rule of why
such an alternative was adopted.
Before we establish any regulatory requirement that may
significantly or uniquely affect small governments, including tribal
governments, we must develop a small government plan pursuant to
section 203 of the UMRA. Such a plan must provide for notifying
potentially affected small governments, and enabling officials of
affected small governments to have meaningful and timely input in the
development of our regulatory proposals with significant federal
intergovernmental mandates. The plan must also provide for informing,
educating, and advising small governments on compliance with the
regulatory requirements.
This proposed rule contains no federal mandates for state, local,
or tribal governments as defined by the provisions of Title II of the
UMRA. The rule imposes no enforceable duties on any of these
governmental entities. Nothing in the proposed rule would significantly
or uniquely affect small governments.
EPA has determined that this rule contains federal mandates that
may result in expenditures of more than $100 million to the private
sector in any single year. EPA believes that the proposed program
represents the least costly, most cost-effective approach to achieve
the air quality goals of the proposed rule. The cost-benefit analysis
required by the UMRA is discussed in Section IV.D. above and in the
Draft RIA. See the ``Administrative Designation and Regulatory
Analysis'' section in today's preamble (VIII.A.) for further
information regarding these analyses.
2. Executive Order 12875: Enhancing Intergovernmental Partnerships
Under Executive Order 12875, EPA may not issue a regulation that is
not required by statute and that creates a mandate upon a state, local
or Tribal government, unless the federal government provides the funds
necessary to pay the direct compliance costs incurred by those
governments, or EPA consults with those governments. If EPA complies by
consulting, Executive Order 12875 requires EPA to provide to the Office
of Management and Budget a description of the extent of EPA's prior
consultation with representatives of affected state, local and tribal
governments, the nature of their concerns, copies of any written
communications from the governments, and a statement supporting the
need to issue the regulation. In addition, Executive Order 12875
requires EPA to develop an effective process permitting elected
officials and other representatives of state, local and Tribal
governments ``to provide meaningful and timely input in the development
of regulatory proposals containing significant unfunded mandates.''
Today's proposed rule would not create a mandate on state, local or
Tribal governments. The proposed rule would not impose any enforceable
duties on these entities. Accordingly, the requirements of section 1(a)
of Executive Order 12875 do not apply to this rule.
3. Executive Order 13084: Consultation and Coordination With Indian
Tribal Governments
Under Executive Order 13084, EPA may not issue a regulation that is
not required by statute, that significantly or uniquely affects the
communities of Indian Tribal governments, and that imposes substantial
direct compliance
[[Page 26107]]
costs on those communities, unless the federal government provides the
funds necessary to pay the direct compliance costs incurred by the
tribal governments, or EPA consults with those governments. If EPA
complies by consulting, Executive Order 13084 requires EPA to provide
to the Office of Management and Budget, in a separately identified
section of the preamble to the rule, a description of the extent of
EPA's prior consultation with representatives of affected tribal
governments, a summary of the nature of their concerns, and a statement
supporting the need to issue the regulation. In addition, Executive
Order 13084 requires EPA to develop an effective process permitting
elected officials and other representatives of Indian tribal
governments ``to provide meaningful and timely input in the development
of regulatory policies on matters that significantly or uniquely affect
their communities.''
Today's rule does not significantly or uniquely affect the
communities of Indian Tribal governments. The proposed motor vehicle
emissions, motor vehicle fuel, and other related requirements for
private businesses in today's document would have national
applicability, and thus would not uniquely affect the communities of
Indian Tribal Governments. Further, no circumstances specific to such
communities exist that would cause an impact on these communities
beyond those discussed in the other sections of today's document. Thus,
EPA's conclusions regarding the impacts from the implementation of
today's proposed rule discussed in the other sections of today's
document are equally applicable to the communities of Indian Tribal
governments. Accordingly, the requirements of section 3(b) of Executive
Order 13084 do not apply to this rule.
E. National Technology Transfer and Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (NTTAA), Section 12(d) of Public Law 104-113, directs EPA
to use voluntary consensus standards in its regulatory activities
unless it would be inconsistent with applicable law or otherwise
impractical. Voluntary consensus standards are technical standards
(e.g., materials specifications, test methods, sampling procedures, and
business practices) developed or adopted by voluntary consensus
standards bodies. The NTTAA directs EPA to provide Congress, through
OMB, explanations when the Agency decides not to use available and
applicable voluntary consensus standards.
This proposed rule references technical standards adopted by the
Agency through previous rulemakings. No new technical standards are
proposed in today's document. The standards referenced in today's
proposed rule involve the measurement of gasoline fuel parameters and
motor vehicle emissions. The measurement standards for gasoline fuel
parameters referenced in today's proposal are all voluntary consensus
standards. The motor vehicle emissions measurement standards referenced
in today's proposed rule are government-unique standards that were
developed by the Agency through previous rulemakings. These standards
have served the Agency's emissions control goals well since their
implementation and have been well accepted by industry. EPA is not
aware of any voluntary consensus standards for the measurement of motor
vehicle emissions. Therefore, the Agency proposes to use the existing
EPA-developed standards found in 40 CFR part 86 for the measurement of
motor vehicle emissions.
EPA welcomes comments on this aspect of the proposed rulemaking
and, specifically, invites the public to identify potentially-
applicable voluntary consensus standards and to explain why such
standards should be used in this regulation.
F. Executive Order 13045: Children's Health Protection
Executive Order (E.O.) 13045, ``Protection of Children from
Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23,
1997) applies to any rule that (1) is determined to be ``economically
significant'' as defined under E.O. 12866, and (2) concerns an
environmental health or safety risk that EPA has reason to believe may
have a disproportionate effect on children. If the regulatory action
meets both criteria, section 5-501 of the Order directs the Agency to
evaluate the environmental health or safety effects of the planned rule
on children, and explain why the planned regulation is preferable to
other potentially effective and reasonably feasible alternatives
considered by the Agency.
This proposed rule is subject to the Executive Order because it is
an economically significant regulatory action as defined by E.O. 12866
and it concerns in part an environmental health or safety risk that EPA
has reason to believe may have a disproportionate effect on children.
This rulemaking will achieve significant reductions of various
emissions from passenger cars and light trucks, primarily
NO<INF>X</INF>, but also NMOG and PM. These pollutants raise concerns
regarding environmental health or safety risks that EPA has reason to
believe may have a disproportionate effect on children, such as impacts
from ozone, PM and certain toxic air pollutants. See Section III of
this proposal and the RIA for a further discussion of these issues.
The effects of ozone and PM on children's health were addressed in
detail in EPA's rulemaking to establish the NAAQS for these pollutants,
and EPA is not revisiting those issues here. EPA believes, however,
that the emission reductions from the strategies proposed in this
rulemaking will further reduce air toxics and the related adverse
impacts on children's health. EPA will be addressing the issues raised
by air toxics from motor vehicles and their fuels in a separate
rulemaking that EPA will initiate in the near future under section
202(l) of the Act. That rulemaking will address the emissions of
hazardous air pollutants from vehicles and fuels, and the appropriate
level of control of HAPs from these sources.
In this proposal, EPA has evaluated several regulatory strategies
for reductions in emissions from passenger cars and light trucks. (See
sections IV, V, and VI of this proposal as well as the RIA.) For the
reasons described there, EPA believes that the strategies proposed are
preferable under the Clean Air Act to other potentially effective and
reasonably feasible alternatives considered by the Agency, for purposes
of reducing emissions from these sources as a way of helping areas
achieve and maintain the NAAQS for ozone and PM. Moreover, EPA believes
that it has selected for proposal the most stringent and effective
control reasonably feasible at this time, in light of the technology
and cost requirements of the Act.
IX. Statutory Provisions and Legal Authority
Statutory authority for the vehicle controls proposed in today's
document can be found in sections 202, 206, 207, 208, and 301 of the
Clean Air Act (CAA), as amended, 42 U.S.C. sections 7521, 7525, 7541,
and 7601.
Statutory authority for the fuel controls proposed in today's
document comes from section 211(c) of the CAA, which allows EPA to
regulate fuels that either contribute to air pollution which endangers
public health or welfare or which impair emission control equipment.
Both criteria are satisfied for
[[Page 26108]]
the proposed gasoline sulfur controls. Additional support for the
procedural and enforcement-related aspects of the fuel's controls in
today's proposal, including the proposed record keeping requirements,
comes from sections 114(a) and 301(a) of the CAA.
List of Subjects
40 CFR Part 80
Environmental protection, Administrative practice and procedure,
Fuel Additives, Gasoline, Imports, Labeling, Motor vehicle pollution,
Penalties, Reporting and recordkeeping requirements.
40 CFR Part 85
Environmental protection, Confidential business information,
Imports, Labeling, Motor vehicle pollution, Penalties, Reporting and
recordkeeping requirements, Research, Warranties.
40 CFR Part 86
Environmental protection, Administrative practice and procedure,
Confidential business information, Labeling, Motor vehicle pollution,
Penalties, Reporting and recordkeeping requirements.
Dated: May 1, 1999.
Carol M. Browner,
Administrator.
For the reasons set forth in the preamble, we propose to amend
parts 80, 85 and 86 of title 40, of the Code of Federal Regulations as
follows:
PART 80--REGULATION OF FUELS AND FUEL ADDITIVES
1. The authority citation for part 80 continues to read as follows:
Authority: Secs. 114, 211, and 301(a) of the Clean Air Act, as
amended (42 U.S.C. 7414, 7545 and 7601(a)).
2. Section 80.2 is amended by removing and reserving paragraph (aa)
and revising paragraphs (h), (s), (w) and (gg) to read as follows:
Sec. 80.2 Definitions.
* * * * *
(h) Refinery means any facility, including but not limited to, a
plant, tanker truck, or vessel where gasoline or diesel fuel is
produced, including any facility at which blendstocks are combined to
produce gasoline or diesel fuel, or at which blendstock is added to
gasoline or diesel fuel.
* * * * *
(s) Gasoline blending stock, blendstock, or component means any
liquid compound which is blended with other liquid compounds to produce
gasoline.
* * * * *
(w) Previously certified gasoline means gasoline or RBOB that
previously has been included in a batch for purposes of complying with
the standards for reformulated gasoline, conventional gasoline or
gasoline sulfur, as appropriate.
* * * * *
(aa) [Reserved]
* * * * *
(gg) Batch of gasoline means a quantity of gasoline that is
homogeneous with regard to those properties that are specified for
conventional or reformulated gasoline.
* * * * *
3. Section 80.46 is amended by revising paragraphs (a) and (h) to
read as follows:
Sec. 80.46 Measurement of reformulated gasoline fuel parameters.
(a) Sulfur. Sulfur content must be determined by using one of the
following methods:
(1) Primary method. American Society for Testing and Materials
(ASTM) standard method D-2622-98, entitled ``Standard Test Method for
Sulfur in Petroleum Products by Wavelength Dispersive X-ray
Fluorescence Spectrometry.''
(2) Alternative method. ASTM D-5453-93, entitled ``Standard Test
Method for Determination of Total Sulfur in Light Hydrocarbons, Motor
fuels and Oils by Ultraviolet Fluorescence.''
* * * * *
(h) Incorporations by reference. ASTM standard methods D-2622-98,
D-5453-93, D-3606-92, D-1319-93, D-4815-93, and D-86-90 with the
exception of the degrees Fahrenheit figures in Table 9 of D-86-90, are
incorporated by reference. These incorporations by reference were
approved by the Director of the Federal Register in accordance with 5
U.S.C. 552(a) and 1 CFR part 51. Copies may be obtained from the
American Society for Testing and Materials, 100 Barr Harbor Dr., West
Conshohocken, PA 19428. Copies may be inspected at the Air Docket
Section (LE-131), room M-1500, U.S. Environmental Protection Agency,
Docket No. A-97-03, 401 M Street, SW., Washington, DC 20460, or at the
Office of the Federal Register, 800 North Capitol Street, NW., Suite
700, Washington, DC.
4. Subpart H is added to read as follows:
Subpart H--Gasoline Sulfur
General Information
Sec.
80.180 What are the implementation dates for the gasoline sulfur
program?
80.185 [Reserved]
80.190 Am I required to register with EPA under the sulfur program?
Gasoline Sulfur Standards
80.195 What are the gasoline sulfur standards for refiners and
importers?
80.200 What gasoline is subject to the sulfur standards?
80.205 How is compliance with the annual average sulfur level
determined?
80.210 What sulfur standards apply to gasoline downstream from
refineries and importers?
80.215 What requirements apply to oxygenate blenders?
80.220 [Reserved]
Small Refiner Provisions
80.225 What is the definition of a small refiner?
80.230 Who is not eligible for the small refiner provisions?
80.235 How does a refiner obtain approval as a small refiner?
80.240 What are the small refiner gasoline sulfur standards?
80.245 How does small refiner apply for a sulfur baseline?
80.250 How is the small refiner sulfur baseline determined?
80.255 [Reserved]
80.260 What are the procedures and requirements for obtaining a
hardship extension?
80.265 How will the EPA approve or disapprove of my hardship
extension application?
80.270-80.275 [Reserved]
Sulfur Averaging, Banking, Trading--General Information
80.280 What is the sulfur Averaging, Banking and Trading (ABT)
program?
80.285 Who may participate in the sulfur ABT program?
Sulfur ABT Program--Baseline
80.290 How do I apply for a sulfur baseline?
80.295 How is a refinery or importer sulfur baseline determined?
80.300 What if I did not produce or import gasoline during 1997 or
1998?
Sulfur ABT Program--Credit Generation
80.305 How are credits generated during the time period 2001
through 2003?
80.310 How are credits generated beginning in 2004?
Sulfur ABT Program--Credit Use
80.315 How are credits used?
80.320 What are the reporting requirements for the sulfur ABT
program?
80.325 [Reserved]
Sampling, Testing and Retention Requirements for Refiners and Importers
80.330 What are the sampling and testing requirements for refiners
and importers?
[[Page 26109]]
80.335 What gasoline sample retention requirements apply to
refiners and importers?
80.340 What alternative standards, sampling and testing
requirements apply to refiners producing gasoline by blending
blendstocks into previously certified gasoline (PCG)?
80.345 [Reserved]
80.350 What alternative sulfur standards, sampling and testing
requirements apply to importers who transport gasoline by truck?
80.355 [Reserved]
Recordkeeping and Reporting Requirements
80.360 What are the product transfer document requirements?
80.365 What records must be kept?
80.370 What are the annual reporting requirements?
Exemptions
80.375 What requirements apply to California gasoline?
80.380 What are the requirements for obtaining an exemption for
gasoline used for research, development or testing purposes?
Violation Provisions
80.385 What acts are prohibited under the gasoline sulfur program?
80.390 What evidence may be used to determine compliance with the
prohibitions and requirements of this subpart and liability for
violations of this subpart?
80.395 Who is liable for violations under the gasoline sulfur
program?
80.400 What defenses apply to persons deemed liable for a violation
of a prohibited act?
80.405 What penalties am I subject to?
Provisions for Foreign Refiners With Individual Sulfur Baselines
80.410 What are the additional requirements for gasoline produced
at foreign refineries having individual small refiner sulfur
baselines?
Attest Engagements
80.415 What are the attest engagement requirements for gasoline
sulfur compliance?
Subpart H--Gasoline Sulfur
General Information
Sec. 80.180 What are the implementation dates for the gasoline sulfur
program?
(a) July 1, 2000. Deadline for submittal of sulfur baseline
determinations for averaging, banking and trading program per
Sec. 80.290.
(b) June 1, 2002. Deadline for small refiner applications per
Sec. 80.235.
(c) October 1, 2003. Per-gallon caps apply, per Sec. 80.195 or
Sec. 80.240, as applicable.
(d) January 1, 2004. Refinery and importer average standards apply
and corporate pool average gasoline standards apply, per Sec. 80.195.
Small refinery average standards apply per Sec. 80.240.
(e) February 1, 2004. Downstream caps apply, per Sec. 80.210.
(f) January 1, 2005. Corporate pool average standards and per-
gallon caps are made more stringent per Sec. 80.195.
(g) January 1, 2006. Corporate pool average gasoline standards no
longer apply. Per-gallon caps are made more stringent per Sec. 80.195.
(h) June 30, 2007. Deadline for small refiner hardship extension
applications per Sec. 80.260.
(i) January 1, 2008. With the exception of gasoline produced by
small refiners with approved hardship extensions, every batch of
gasoline is subject to the 80 ppm cap. With the exception of small
refiners with approved hardship extensions, refinery and importer
average gasoline sulfur standards apply, per Sec. 80.195.
(j) January 1, 2010. Every batch of gasoline is subject to the 80
ppm cap. Refinery and importer average gasoline sulfur standards apply,
per Sec. 80.195.
Sec. 80.185 [Reserved]
Sec. 80.190 Am I required to register with EPA under the sulfur
program?
(a) Each refiner and importer must register with EPA according to
the procedures specified in this section.
(b) Refiners and importers subject to the standards in Sec. 80.195
who are registered by EPA under Sec. 80.76(a) are deemed to be
registered for purposes of this subpart. Refiners and importers subject
to the standards in Sec. 80.195 who are not registered by EPA under
Sec. 80.76(a) must provide to EPA the information required by
Sec. 80.76 by November 1, 2003 or not later than three months in
advance of the first date that such person produces or imports
gasoline, whichever is later.
(c) Refiners and individual refineries that are registered by EPA
under Sec. 80.76(a) and have established small refiner individual
refinery standards status under Sec. 80.235(f) are deemed to be
registered for purposes of this subpart. Refiners having any refinery
subject to the standards in Sec. 80.240 who are not registered by EPA
under Sec. 80.76(a) must provide to EPA the information required by
Sec. 80.76 by June 1, 2002.
(d) Any refiner or importer who plans to generate credits in any
year prior to 2004 must register with us no later than November 1 of
the year prior to the first year of credit generation.
Gasoline Sulfur Standards
Sec. 80.195 What are the gasoline sulfur standards for refiners and
importers?
(a)(1) The gasoline sulfur standards for refiners and importers,
excluding small refiners subject to the standards at Sec. 80.240, are
shown in Table 1 of this section.
(2) The averaging period is January 1 through December 31 of each
year. For each averaging period, a refiner's or importer's average
sulfur level must be no greater than the levels specified in Table 1 of
this section, as follows:
Table 1.--Gasoline Sulfur Standards
----------------------------------------------------------------------------------------------------------------
For the averaging period beginning
--------------------------------------------------------------
January 1, 2004 January 1, 2005 January 1, 2006+
----------------------------------------------------------------------------------------------------------------
Refinery or Importer Average, ppm................ 30 30 30
Corporate Pool Average, ppm...................... 120 90 (<SUP>b</SUP>)
Per-Gallon Cap, ppm.............................. <SUP>a</SUP>300 180 80
----------------------------------------------------------------------------------------------------------------
<SUP>a</SUP> This per-gallon cap standard must be met beginning October 1, 2003.
<SUP>b</SUP> Not applicable.
(b) The refinery or importer average gasoline sulfur standard.
(1) The refinery or importer average gasoline sulfur standard is
the maximum average sulfur level, measured in parts per million (ppm),
allowed for the combined reformulated and conventional gasoline
produced at a refinery or imported by an importer
[[Page 26110]]
during each calendar year starting January 1, 2004.
(2) The annual average sulfur level is calculated as specified in
section Sec. 80.205.
(3) The refinery or importer average gasoline sulfur standard may
be met using credits according to Sec. 80.315, or any other potential
sources of credits or allowances, if applicable.
(c) The corporate pool average gasoline sulfur standard applicable
in 2004 and 2005 is the maximum average sulfur level, in ppm, allowed
for a refiner's or importer's combined reformulated and conventional
gasoline production from all of a refiner's refineries and all gasoline
imported by an importer in a calendar year. The corporate pool average
is determined by volume-weighting each refinery's and importer's actual
annual average sulfur levels by their respective production or import
volumes, as specified in Sec. 80.205.
(d) The per-gallon cap standard specified in Table 1 of this
section for the averaging period beginning January 1, 2004, must be met
beginning October 1, 2003.
Sec. 80.200 What gasoline is subject to the sulfur standards?
All gasoline is subject to the standards in this subpart, with the
following exceptions:
(a) Gasoline that is used to fuel aircraft, racing vehicles or
racing boats that are used only in sanctioned racing events, provided
that:
(1) Product transfer documents associated with such gasoline, and
any pump stand from which such gasoline is dispensed, identify the
gasoline either as gasoline that is restricted for use in aircraft, or
as gasoline that is restricted for use in racing motor vehicles or
racing boats that are used only in sanctioned racing events;
(2) The gasoline is completely segregated from all other gasoline
throughout production, distribution and sale to the ultimate consumer;
and
(3) The gasoline is not made available for use as motor vehicle
gasoline, or dispensed for use in motor vehicles.
(b) California gasoline as defined in Sec. 80.81(a)(2).
(c) Gasoline that is exported for sale outside the U.S.
Sec. 80.205 How is compliance with the annual average sulfur level
determined?
(a) The refinery or importer average gasoline sulfur level is
calculated as follows:
[GRAPHIC] [TIFF OMITTED] TP13MY99.005
Where:
S<INF>a</INF> = The refinery or importer annual average sulfur value.
V<INF>i</INF> = The volume of gasoline produced or imported in batch i.
S<INF>i</INF> = The sulfur content of batch i as determined in
accordance with the requirements of Sec. 80.330.
n = The number of batches of gasoline produced or imported during the
averaging period.
i = Individual batch of gasoline produced or imported during the
averaging period.
(b) A refiner or importer may include oxygenate added downstream
from the refinery or import facility when calculating the sulfur
content, provided the following requirements are met:
(1) For oxygenate added to conventional gasoline, the refiner or
importer must comply with the requirements of Sec. 80.101(d)(4)(ii).
(2) For oxygenate added to RBOB, the refiner or importer must
comply with the requirements of Sec. 80.69(a).
(c) Refiners and importers must exclude from compliance
calculations all of the following:
(1) Gasoline that was not produced at the refinery or was not
imported by the importer (or that was imported as Certified Sulfur-
FRGAS).
(2) Blending stocks or gasoline that have been included in another
refiner's compliance calculations.
(3) Gasoline exempted from standards under Sec. 80.200.
(d) Compliance deficit. A refinery or importer may exceed the
refinery or importer annual average sulfur standard specified in
Sec. 80.195 under the following conditions:
(1) In the calendar year following the year the standard is not
met, the refinery or importer achieves compliance with the refinery or
importer annual average sulfur standard specified in Sec. 80.195; and
(2) In the calendar year following the year the standard is not
met, and after achieving compliance with the refinery or importer
annual average sulfur standard specified in Sec. 80.195, the refinery
or importer must have sufficient additional credits and/or actual
reduction in sulfur levels to equal the compliance deficit of the
previous year.
Sec. 80.210 What sulfur standards apply to gasoline downstream from
refineries and importers?
(a) Definition. S-RGAS means gasoline produced by a domestic
refinery that is subject to the standards in Sec. 80.240, and to
Certified Sulfur-FRGAS, as defined in Sec. 80.410, except that no batch
of gasoline may be classified as S-RGAS if the actual sulfur content is
less than the national refinery cap standard specified in Sec. 80.195.
(b) The sulfur cap standard for gasoline at any point in the
gasoline distribution system downstream from refineries and import
facilities, including gasoline at facilities of distributors, carriers,
retailers and wholesale purchaser-consumers, is as follows:
(1) The following standards apply to gasoline except where product
transfer documents indicate the presence of any S-RGAS:
------------------------------------------------------------------------
National
Downstream
During the Period Sulfur Cap
Standard
(ppm)
------------------------------------------------------------------------
February 1, 2004, through January 31, 2005................ <ls-thn-eq>3
26
February 1, 2005, through January 31, 2006................ <ls-thn-eq>2
01
February 1, 2006, and thereafter.......................... <ls-thn-eq>9
5
------------------------------------------------------------------------
(2) For gasoline, including a mixture of gasoline batches from
different refineries, where product transfer documents indicate the
presence of any S-RGAS, the downstream cap standard for the gasoline is
the highest downstream cap standard applicable to any gasoline in the
mixture, except that if a test result indicates the sulfur content of
the mixture is less than or equal to the applicable national downstream
cap standard, the gasoline is subject to the national downstream cap
standard.
Sec. 80.215 What requirements apply to oxygenate blenders?
Oxygenate blenders, as defined by Sec. 80.2(mm), are subject to the
requirements of this subpart except for the reporting requirements of
Sec. 80.370 and the requirements under Sec. 80.330 to sample and test
each batch of gasoline produced.
Sec. 80.220 [Reserved]
Small Refiner Provisions
Sec. 80.225 What is the definition of a small refiner?
(a) A small refiner is defined as any person, as defined by 42
U.S.C. 7602(e), which, as of January 1, 1999:
[[Page 26111]]
(1) Produced gasoline at a refinery by processing crude oil through
refinery processing units; and
(2)(i) Employed no more than 1500 people, including subsidiaries,
and in the case of a refiner who operates a refinery as a joint venture
with other refiners, including the total number of employees of all
corporate entities in the venture; or
(ii) Is a subsidiary, in which case the employees of the parent
company and any wholly-owned subsidiaries of the parent company must be
included in determining if the 1,500 employee limit is exceeded.
(b) This definition applies to domestic and foreign refiners.
(c) If, without merger with or acquisition of another business
unit, a company with approved small refiner status exceeds 1500
employees after January 1, 1999, it will be considered a small refiner
for the duration of the small refiner program.
(d) A refiner that was not in operation as of January 1, 1999, that
begins operation before January 1, 2001, and meets all other criteria
of this subpart, may apply for small refiner status according to
Sec. 80.235.
Sec. 80.230 Who is not eligible for the small refiner provisions?
(a) The following are not eligible for the small refiner
provisions:
(1) Refineries built or started up after January 1, 1999, unless
the criteria of Sec. 80.225(d) are met; or
(2) Persons that employ more than 1500 people on January 1, 1999,
but employ fewer than 1500 people after that date; or
(3) Importers; or
(4) Refiners employing 1500 or fewer people which were part of a
larger corporation as of January 1, 1999 but subsequently were sold to
form a new company.
(b) Disqualification as a small refiner. (1) Refiners who qualify
as small under Sec. 80.225, and subsequently employ more than 1500
people as a result of merger with or acquisition of another entity, are
disqualified as small refiners and must meet the standards in
Sec. 80.195 beginning on January 1 of the first calendar year following
such merger or acquisition.
(2) If a small refiner is no longer eligible for small refiner
status or elects to change the status of any refinery operating under a
small refiner individual refinery standard to subject the refinery to
the standards in Sec. 80.195, the refiner must notify EPA in writing
within 20 days of the disqualifying event or, in the case of a
voluntary election, no later than November 15 prior to the year that
the change will occur. Each refinery of the small refiner no longer
eligible for small refiner status must meet the standards inSec. 80.195
for the next averaging period.
Sec. 80.235 How does a refiner obtain approval as a small refiner?
(a) A refiner must apply to EPA for small refiner status by June 1,
2002.
(b) Applications for small refiner status must be sent to: U.S.
EPA--FED, Gasoline Sulfur Small Refiner Status, 2000 Traverwood, Ann
Arbor, MI 48105.
(c) The small refiner status application must contain the following
information:
(1) A listing of the name and address of each location where any
employee of the refiner worked on January 1, 1999, the total number of
employees at each location, and the type of business activities carried
out at each location.
(2) A letter signed by the president, chief operating or chief
executive officer of the company, or his/her designee, stating that the
information contained in the application is true to the best of his/her
knowledge.
(3) Name, address, phone number, facsimile number and E-mail
address of a corporate contact person.
(d) For joint ventures, the total employee count includes the
combined employee count of all corporate entities in the venture.
(e) For government-owned refiners, the total employee count
includes all government employees.
(f) Refiners who apply for small refiner status based on the number
of employees after January 1, 1999 but before January 1, 2001, as
permitted under Sec. 80.225(d), must comply with paragraphs (a) through
(c) of this section.
(g) EPA will notify a refiner of approval or disapproval of small
refiner status by letter.
(1) If approved, EPA will notify the refiner of each refinery's
approved baseline, refinery per-gallon cap, and downstream per-gallon
cap standard under Sec. 80.210.
(2) If disapproved, the refiner must comply with the standards in
Sec. 80.195.
Sec. 80.240 What are the small refiner gasoline sulfur standards?
(a) The gasoline sulfur standards for an approved small refiner
depend on the refinery baseline sulfur level, and are shown in Table 1
of this section, as follows:
Table 1.--Gasoline Sulfur Standards for Approved Small Refiners
------------------------------------------------------------------------
Refinery annual average and per-
gallon (``cap'') sulfur
Refinery baseline sulfur level (ppm) standards (ppm) that apply
during 2004-2007
------------------------------------------------------------------------
0 to 30............................... Refinery average: 30.
Cap: 80.
31 to 80.............................. Refinery average: no
requirement.
Cap: 80.
81 to 200............................. Refinery average: baseline
level.
Cap: Factor of 2 above the
baseline.
201 and above......................... Refinery average: 200 ppm or 50%
of baseline, whichever is
higher, but in no event greater
than 300 ppm.
Cap: Factor of 1.5 above
baseline level.
------------------------------------------------------------------------
(b) The average standards specified in Table 1 of this section
apply to the combined reformulated and conventional gasoline produced
at a refinery.
(c) The refinery average sulfur standards specified in Table 1 of
this section must be met on an annual calendar year basis for each
refinery owned by a small refiner.
(d) The per-gallon cap standards specified in Table 1 of this
section for the averaging period beginning January 1, 2004 must be met
beginning October 1, 2003.
(e) Volume limitation. (1) The refinery average standards specified
in Table 1 of this section apply to the volume of gasoline produced by
a small refiner's refinery up to the lesser of:
(i) 105% of the baseline gasoline volume; or
(ii) The volume of gasoline produced at that refinery during the
average period by processing crude oil.
(2) If a refiner exceeds the volume limitation in paragraph (e)(1)
of this section during the calendar year, the annual average sulfur
standard is calculated as follows:
[GRAPHIC] [TIFF OMITTED] TP13MY99.007
Where:
S<INF>sr</INF> = Small refiner annual average sulfur standard.
V<INF>b</INF> = Applicable volume under paragraph (e)(1) of this
section.
V<INF>a</INF> = Averaging period gasoline volume.
S<INF>b</INF> = Small refiner sulfur baseline.
(3) The applicable volume from paragraph (e)(1) of this section
excludes volumes of gasoline blending stocks used in the small
refinery's gasoline
[[Page 26112]]
production that were received from external sources, unless such
blending stocks are substantially transformed through the refinery's
processing operations and have not been included in any other refiner's
or importer's compliance determination.
(4) The applicable per-gallon cap standards in Table 1 of this
section apply to all gasoline produced by small refiners.
(f) Withdrawal of small refiner status. Refiners that receive
notification from EPA under Sec. 80.235(f) of their qualification as
small refiners will have that status withdrawn if EPA finds that the
refiner provided false or inaccurate information on its application for
small refiner status. Such refiners will be subject to the standards in
Sec. 80.195 beginning on January 1, 2004.
Sec. 80.245 How does a small refiner apply for a sulfur baseline?
(a) A refiner seeking small refiner status must establish an
individual sulfur baseline for every refinery covered by the small
refiner status application by June 1, 2002
(1) If a sulfur baseline was submitted for the refinery under
Sec. 80.290, the refiner does not need to resubmit that information.
(2) If no sulfur baseline was previously submitted, the refiner
must submit a sulfur baseline for every refinery according to
Sec. 80.250.
(b) The sulfur baselines must be submitted to the address specified
in Sec. 80.235(b).
Sec. 80.250 How is the small refiner sulfur baseline determined?
(a) The small refiner sulfur baseline is determined as follows:
[GRAPHIC] [TIFF OMITTED] TP13MY99.008
Where:
S<INF>b</INF> = Sulfur baseline value.
V<INF>i</INF> = Volume of gasoline batch i.
S<INF>i</INF> = Sulfur content of batch i.
n = Total number of batches of conventional gasoline produced from
January 1, 1997 through December 31, 1998.
i = Individual batch of conventional gasoline produced from January 1,
1997 through December 31, 1998.
(b) Foreign small refiners must also comply with the baseline
establishment requirements in Sec. 80.410(b).
(c) An approved small refiner may not aggregate the gasoline
volumes and sulfur levels of its refineries for compliance with the
applicable standards specified in Sec. 80.240.
(d) If at any time a small refinery baseline is determined to be
incorrect, the corrected baseline applies ab initio and the annual
average standards and cap standards are deemed to be those applicable
under the corrected information.
(e) If a small refiner does not have the data specified in
paragraph (a) of this section to generate a sulfur baseline, or if any
refineries owned by that refiner were not operating in 1997-1998, EPA
will assign each refinery a baseline average sulfur level of 150 ppm
sulfur and a baseline CG volume equivalent to the annual gasoline
volume capability of the refinery at the time it applies for small
refiner status.
Sec. 80.255 [Reserved].
Sec. 80.260 What are the procedures and requirements for obtaining a
hardship extension?
(a) An approved small refiner may apply to EPA for a hardship
extension of the small refiner standards for calendar years 2008 and
2009. The application must be submitted no later than June 30, 2007 to
U.S. EPA-FED, Small Refiner Hardship Extension, 2000 Traverwood, Ann
Arbor, MI 48105.
(b) The application must provide a detailed discussion regarding
the inability of the refinery to produce gasoline meeting the
requirements of Sec. 80.195. Such an application must include, at a
minimum, the following information:
(1) A detailed analysis of the reasons the refinery is unable to
produce gasoline meeting the requirements of Sec. 80.195 in 2008,
including costs, specification of equipment still needed, potential
equipment suppliers, and efforts already completed to obtain the
necessary equipment;
(2) If unavailability of equipment is part of the reason for the
inability to comply, a discussion of other options considered, and the
reasons these other options are not feasible;
(3) If relevant, a demonstration that a needed or lower cost
technology is immediately unavailable, but will be available in the
near future, and full information regarding when and from what sources
it will be available;
(4) Schematic drawings of the refinery configuration as of January
1, 1997 and as of the date of the hardship extension application, and
any planned future additions or changes;
(5) If relevant, a demonstration that a temporary unavailability
exists of engineering or construction resources necessary for design or
installation of the needed equipment;
(6) If sources of crude oil lower in sulfur than what the refiner
is currently using are available, full information regarding the
availability of these different crude sources, the sulfur content of
those crude sources, the cost of the different crude sources over the
past five years, and an estimate of gasoline sulfur levels achievable
by your refinery if the lower sulfur crude sources were used;
(7) A discussion of any sulfur reductions that can be achieved from
current levels;
(8) The date the refiner anticipates compliance with the standards
in Sec. 80.195 can be achieved at its refinery;
(9) An analysis of the economic impact of compliance on the
refiner's business (including financial statements from the last 5
years, or for any time period up to 10 years, at EPA's request); and
(10) Any other information regarding other strategies considered,
including strategies, or components of strategies, that do not involve
installation of equipment, and why meeting the standards in Sec. 80.195
beginning in 2008 is infeasible.
(c) The hardship extension application must contain a letter signed
by the president, chief operating or chief executive officer, of the
company, or his/her designee, stating that the information contained in
the application is true to the best of his/her knowledge.
Sec. 80.265 How will the EPA approve or disapprove of my hardship
extension application?
(a) EPA will evaluate each application for hardship extension on a
case-by-case basis. An extension will be granted for a refinery if the
small refiner who owns the refinery adequately demonstrates that severe
economic hardship would result if compliance with the standards in
Sec. 80.195 is required in 2008 and/or 2009.
(b) EPA may request more information, if necessary, for evaluation
of the application. If requested information is not submitted within
the time specified in EPA's request, or any extensions granted, the
application may be denied.
(c) EPA will notify the refiner of approval or disapproval of
hardship extension by letter.
(1) If approved, EPA will also notify the refiner of the date that
full compliance with the standards specified at Sec. 80.195 must be
achieved or what interim sulfur levels or schedules apply, if any.
[[Page 26113]]
(2) If disapproved, beginning January 1, 2008, the refinery is
subject to the requirements in Sec. 80.195.
Sec. 80.270-80.275 [Reserved]
Sulfur Averaging, Banking, Trading-General Information
Sec. 80.280 What is the sulfur Averaging, Banking and Trading (ABT)
program?
(a) The sulfur averaging, banking and trading program is a
voluntary program which allows eligible, participating refiners and
importers to generate, bank, trade and use credits.
(b) Beginning in 2000, refiners and importers may generate credits
by producing or importing gasoline with sulfur levels below the
applicable baseline as calculated under Sec. 80.295.
(c) Beginning in 2004, sulfur credits may be:
(1) Used by the refiner or importer who generated the credits;
(2) Banked for later use or transfer; or
(3) Traded or sold to another refiner or importer.
(d) This subpart contains specific requirements for the following:
(1) Using, generating, selling and trading credits; and
(2) The duration of the ABT program.
(e) The gasoline sulfur ABT program is summarized in Table 1 of
this section as follows:
BILLING CODE 6560-50-P
[GRAPHIC] [TIFF OMITTED] TP13MY99.009
BILLING CODE 6560-50-C
Sec. 80.285 Who may participate in the sulfur ABT program?
(a) Any refiner or importer of gasoline, may participate in the
program, except that participation by small refiners is limited under
paragraph (d) of this section.
(b) Refiners and importers who choose to generate credits in the
ABT program must establish a sulfur baseline under Sec. 80.290.
(c) Oxygenate blenders may not participate in the program.
(d) Small refiners with any refinery subject to the standards
specified in Sec. 80.240:
(1) May not use sulfur credits to meet the average standard
applicable to the refinery.
(2) May generate early credits under Sec. 80.305 and bank and trade
such sulfur credits throughout the duration of the sulfur ABT program.
Sulfur ABT Program--Baseline
Sec. 80.290 How do I apply for a sulfur baseline?
(a) Each refiner or importer who wishes to generate ABT program
credits during 2000-2003 must submit a sulfur baseline notification to
EPA by July 1, 2000.
(b) The sulfur baseline notification must be sent to: U.S. EPA-FED,
ABT Sulfur Baseline, 2000 Traverwood, Ann Arbor, MI 48105.
(c) The sulfur baseline notification must include the following
information:
(1) A listing of the names and addresses of all refineries and/or
import facilities owned by the corporation;
(2) The conventional gasoline sulfur baseline value, calculated as
specified in Sec. 80.295(a), for each refinery and import facility of
the corporation.
(3) The conventional gasoline baseline volume, calculated as
specified in Sec. 80.295(c), for each refinery and import facility of
the corporation.
(4) A letter signed by the president, chief operating or chief
executive officer, of the company, or his/her delegate, stating that
the information contained in the sulfur baseline determination is true
to the best of his/her knowledge.
(5) Name, address, phone number, facsimile number and E-mail
address of a corporate contact person.
(d)(1) A refiner or importer may generate credits as specified in
Sec. 80.305, beginning in calendar year 2000, based on the sulfur
baseline submitted to EPA according to paragraph (c) of this section.
(2) If at any time the baseline submitted in accordance with the
requirements of this section is determined to be incorrect, the
corrected baseline applies. Credits
[[Page 26114]]
generated, banked, used or traded will be adjusted to reflect the
correction.
Sec. 80.295 How is a refinery or importer sulfur baseline determined?
(a) A refinery's or importer's conventional gasoline sulfur
baseline is calculated using the following equation:
[GRAPHIC] [TIFF OMITTED] TP13MY99.010
Where:
S<INF>BCG</INF> = Conventional gasoline sulfur baseline value.
V<INF>i</INF> = Volume of conventional gasoline batch i.
S<INF>i</INF> = Sulfur content of conventional gasoline batch i.
n = Total number of batches of conventional gasoline produced or
imported during January 1, 1997 through December 31, 1998.
i = Individual batch of conventional gasoline produced or imported
during January 1, 1997 through December 31, 1998.
(b) The individual sulfur baseline for summer reformulated gasoline
is 150 ppm.
(c) The individual sulfur baseline for winter reformulated gasoline
is equivalent to the conventional gasoline sulfur baseline calculated
under paragraph (a) of this section.
(d) The baseline volumes are as follows:
(1) The conventional gasoline baseline volume is one half of the
total 1997 and 1998 volume of conventional gasoline produced or
imported.
(2) There is no baseline volume for either summer or winter RFG
produced or imported.
(e) Any refiner or importer who, under Sec. 80.65 or
Sec. 80.101(d)(4), included oxygenate blended downstream in
conventional gasoline compliance calculations for 1997-1998 must
include this oxygenate in the baseline calculations for sulfur content
and volume under paragraphs (a) and (d) of this section.
(f) The baseline calculations for sulfur content and volume under
paragraphs (a) and (d) of this section for non-oxygenated blendstock,
such as natural gasoline or butane, that is blended into gasoline must
be calculated using the sulfur content and volume of the blendstock
only.
Sec. 80.300 What if I did not produce or import gasoline during 1997
or 1998?
A refiner or importer who did not produce or import gasoline during
1997 or 1998 is assigned a baseline sulfur level of 150 ppm for
conventional gasoline and RFG (winter and summer).
Sulfur ABT Program--Credit Generation
Sec. 80.305 How are credits generated during the time period 2000
through 2003?
(a) General. (1) Sulfur credits may be generated annually during
calendar years 2000-2003.
(2) Credits must be calculated separately for Conventional gasoline
and RFG. Credits must be calculated by multiplying the volume of
gasoline for which credits are generated under paragraphs (b) and (c)
of this section by the amount of sulfur reduction in ppm below the
refiner's or importer's applicable sulfur baseline. The refiner or
importer may include any oxygenates included in its RFG or Conventional
gasoline volume under Secs. 80.65 and 80.101(d)(4), respectively, for
the purpose of generating credits.
(3) A refiner's or importer's total credit generation is the sum of
the separate credit calculations for Conventional gasoline and RFG.
(4) Credits under this program are in units of ``ppm-gallons''.
(5) Credits must be identified by the year of creation, the year of
transfer (if any), and the year of use (as specified in Sec. 80.315).
Records relating to credit generation, use, and transfer, including the
applicable years, must be maintained pursuant to Sec. 80.365.
(b) Calculation of credits for conventional gasoline. (1) Refiners
and importers may generate credits for conventional gasoline produced
or imported during an averaging period only if the annual average
sulfur level for the conventional gasoline produced during the
averaging period is less than 150 ppm.
(2) Refiners and importers whose conventional gasoline volume for
the averaging period is less than or equal to 105% of its baseline
volume for conventional gasoline, must calculate credits as follows:
CR<INF>CG</INF> = (V<INF>CG</INF>) x
S<INF>BCG</INF>-S<INF>ACG</INF>)
Where:
CR<INF>CG</INF> = Credits generated for conventional gasoline.
V<INF>CG</INF> = Volume of conventional gasoline produced or imported
during the averaging period.
S<INF>BCG</INF> = Sulfur baseline value for conventional gasoline or
150, whichever is greater .
S<INF>ACG</INF> = Annual average sulfur level for conventional gasoline
produced or imported during the averaging period.
(3) Refiners and importers whose conventional gasoline volume for
the averaging period is greater than 105% of the baseline volume for
conventional gasoline, must calculate credits as follows:
CR<INF>CG</INF> = (V<INF>BCG</INF> x 1.05) x
(S<INF>BCG</INF>-S<INF>ACG</INF>) + (V<INF>CG</INF>-(1.05 x
V<INF>BCG</INF>)) x (150-S<INF>ACG</INF>)
Where:
CR<INF>CG</INF> = Credits generated for conventional gasoline.
V<INF>BCG</INF> = Baseline volume of conventional gasoline.
S<INF>BCG</INF> = Sulfur baseline value for conventional gasoline or
150, whichever is greater.
S<INF>ACG</INF> = Annual average sulfur level for conventional gasoline
produced or imported during the averaging period.
V<INF>CG</INF> = Volume of conventional gasoline produced or imported
during the averaging period.
(c) Calculation of credits for RFG. (1) Refiners and importers may
generate credits for summer RFG produced or imported during an
averaging period only if the average sulfur level for the summer RFG
produced or imported during the averaging period is less than 150 ppm.
Summer RFG credits are calculated as follows:
CR<INF>SRFG</INF> = (V<INF>SRFG</INF>) x (150-S<INF>SRFG</INF>)
Where:
CR<INF>SRFG</INF> = Credits generated for summer reformulated gasoline.
V<INF>SRFG</INF> = Volume of summer RFG produced or imported during the
averaging period.
S<INF>SRFG</INF> = Average sulfur level for summer RFG produced or
imported during the averaging period.
(2) Refiners and importers may generate credits for winter RFG
produced or imported during an averaging period only if the average
sulfur level for the winter RFG produced or imported during the
averaging period is less than 150 ppm. Winter RFG credits calculated as
follows:
CR<INF>WRFG</INF> = (V<INF>WRFG</INF>) x
(S<INF>BCG</INF>-S<INF>WRFG</INF>)
Where:
CR<INF>WRFG</INF> = Credits generated for winter reformulated gasoline.
V<INF>WRFG</INF> = Volume of winter RFG produced or imported during the
averaging period.
S<INF>BCG</INF> = Sulfur baseline value for conventional gasoline or
150, whichever is greater.
S<INF>WRFG</INF> = Average sulfur level for winter RFG produced or
imported during the averaging period.
[[Page 26115]]
Sec. 80.310 How are credits generated beginning in 2004?
(a) A refiner, for any refinery owned by it, or an importer may
generate credits for annual average sulfur reductions if the annual
average sulfur level for the combined RFG and conventional gasoline
produced by any refinery owned by the refiner or imported by the
importer for the averaging period is less than 30 ppm.
(b) Credits calculated as follows:
CR<INF>A</INF> = (V<INF>A</INF>) x (30-S<INF>A</INF>)
Where:
CR<INF>A</INF> = Credits generated for the averaging period.
V<INF>A</INF> = Total annual combined volume of RFG and conventional
gasoline produced in a refinery or imported during the averaging
period.
S<INF>A</INF> = Annual average sulfur level of RFG and conventional
gasoline produced in a refinery or imported during the averaging
period.
(c) Credits must be identified by the year of creation, the year of
transfer (if any), and the year of use (as specified in Sec. 80.315).
Records relating to credit generation, use, and transfer, including the
applicable years, must be maintained pursuant to Sec. 80.365.
Sulfur ABT Program-Credit Use
Sec. 80.315 How are credits used?
(a) Credits may be used, beginning with the 2004 averaging period,
to meet the applicable annual average sulfur standard of 30 ppm,
provided that:
(1) Sulfur credits used were generated pursuant to the requirements
of this subpart; and
(2) The requirements of paragraphs (b) and (e) of this section are
met.
(b) Credits may not be used to meet the applicable corporate pool
average under Sec. 80.195.
(c) Credit transfers. (1) Credits obtained from other persons may
be used to meet the annual averaged 30 ppm standard specified in
Sec. 80.195 if all the following conditions are met:
(i) The credits are generated and reported according to the
requirements of this subpart.
(ii) The credits are used in compliance with the limitations
regarding the appropriate periods for credit use in this subpart.
(iii) Any credit transfer takes place no later than the last day of
February following the calendar year averaging period when the credits
are used.
(iv) Only the refiner or importer who generates the credits
transfers them, and only a refiner or importer who uses the credits to
achieve its compliance with the averaged standards obtains them from
the transferor refiner or importer.
(v) The credit transferor must apply any credits necessary to meet
the transferor's applicable average standard, including credits
generated during 2000, 2001, 2002 and 2003, before transferring credits
to any other refiner or importer. No credits may be transferred that
would result in the transferor having a negative credit balance.
(vi) The transferor must supply to the transferee records
indicating the year(s) the credits were generated.
(2) In the case of credits that have been calculated or created
improperly, or are otherwise determined to be invalid in violation of
the requirements of this subpart, the following provisions apply:
(i) Invalid credits cannot be used to achieve compliance with the
transferee's averaging standard, regardless of the transferee's good
faith belief that the credits were valid.
(ii) The refiner or importer who used the credits, and any
transferor of the credits, must adjust its sulfur calculations to
reflect the proper credits.
(iii) Any properly created credits existing in the transferor's
credit balance after correcting the credit balance, and after the
transferor applies credits as needed to meet the average standard at
the end of the compliance year, must first be applied to correct the
invalid transfers before the transferor trades or banks the credits.
(d) Limitations on credit use. (1) Credits generated prior to 2004
must be used or transferred no later than 2007.
(2) Credits generated in 2004 or later must be used or transferred
within five years of generation.
(3) Credits transferred must be used by the transferee within five
years of transfer, or no more than ten years of the year of generation,
whichever is less.
(4) A refiner possessing credits must use all credits prior to
falling into compliance deficit, as defined under Sec. 80.205(d) (2).
(e) If the recordkeeping requirements of Sec. 80.365(d) are not
met, credits used under this subpart are invalid.
Sec. 80.320 What are the reporting requirements for the sulfur ABT
program?
(a) A refiner or importer who generates, uses, or transfers credits
under the sulfur ABT program must file an annual report with EPA which
must be submitted with the refiner's or importer's annual compliance
report under Sec. 80.370.
(b) The report must include the following information:
(1) For credits generated in 2000, 2001, 2002 and 2003, the
applicable Conventional gasoline sulfur content baseline, in ppm, and
Conventional gasoline baseline;
(2) The actual annual average sulfur content, in ppm, before the
application of credits, separately for Conventional gasoline and
separately, the average sulfur content, in ppm, for winter RFG and for
summer RFG;
(3) For refiners, the annual volume of conventional gasoline
produced, and for importers, the annual volume of Non-Certified S-FRGAS
imported, in gallons;
(4) The number of credits used in ppm-gallons, in the averaging
period;
(5) The number of credits banked, credits transferred and credits
acquired, in ppm-gallons;
(6) The identity of the refiners and importers involved in these
transactions, including their registration numbers, under Sec. 80.190,
and the number of credits in ppm-gallons in each transaction; and
(7) The number of credits, if any, for which the refiner is
deficient, as defined under Sec. 80.205 (d), and the use of credits in
the following year to cure the deficiency under Sec. 80.205(d)(2).
Sec. 80.325 [Reserved].
Sampling, Testing and Retention Requirements for Refiners and
Importers
Sec. 80.330 What are the sampling and testing requirements for
refiners and importers?
(a) Sample and test each batch of gasoline. (1) Refiners and
importers of gasoline must collect a representative sample from each
batch of gasoline produced or imported and test each sample to
determine its sulfur content for compliance with requirements under
this subpart prior to the gasoline leaving the refinery or import
facility, using the sampling and testing methods provided in this
section.
(2) The requirements of this section apply beginning October 1,
2003, or January 1 of the first year of credit generation for refiners
and importers generating early credits under Sec. 80.305.
(b) Sampling methods. Refiners and importers must sample each batch
of gasoline by using one of the following methods:
(1) Manual sampling of tanks and pipelines must be performed
according to the applicable procedures specified in one of the two
following methods:
(i) American Society for Testing and Materials (ASTM) method D
4057-95, entitled ``Standard Practice for Manual Sampling of Petroleum
and Petroleum Products.''
(ii) Samples collected under the applicable procedures in ASTM D
5842-95, entitled ``Standard Practice for Sampling and Handling of
Fuels for Volatility Measurement,'' may be used
[[Page 26116]]
for measuring sulfur content if you assure that there is no
contamination present that could affect the sulfur test result.
(2) Automatic sampling of petroleum products in pipelines must be
performed according to the applicable procedures specified in ASTM
method D 4177-95, entitled ``Standard Practice for Automatic Sampling
of Petroleum and Petroleum Products.''
(c) Test method for measuring the sulfur content of gasoline.
Refiners and importers must use the method provided in Sec. 80.46(a) to
measure the sulfur content of gasoline they produce or import.
(d) Test method for sulfur in Butane. The sulfur content of butane
must be determined by ASTM D-5623-94, entitled ``Standard Test Method
for Sulfur Compounds in Light Petroleum Liquids by Gas Chromatography
and Sulfur Selective Detection.''
(e) Incorporations by reference. ASTM standard practices D 4057-95,
D 4177-95 and D 5842-95, and ASTM standard method D 5623-94 are
incorporated by reference. These incorporations by reference were
approved by the Director of the Federal Register in accordance with 5
U.S.C. 552(a) and 1 CFR part 51. Copies may be obtained from the
American Society for Testing and Materials, 100 Barr Harbor Dr., West
Conshohocken, PA 19428. Copies may be inspected at the Air Docket
Section (LE-131), room M-1500, U.S. Environmental Protection Agency,
Docket No. A-97-03, 401 M Street, SW., Washington, DC 20460, or at the
Office of the Federal Register, 800 North Capitol Street, NW., suite
700, Washington, DC.
Sec. 80.335 What gasoline sample retention requirements apply to
refiners and importers?
(a) For each batch of gasoline produced or imported, refiners and
importers must:
(1) Retain a representative sample of at least 330 ml, collected
from the batch and keep the sample for a period not less than 30 days
from the date the batch was collected.
(2) Comply with the gasoline sample handling and storage procedures
found in the sampling procedures specified in Sec. 80.330 for each
sample retained.
(3) Provide the sample retained under paragraph (a) of this section
to the Administrator's authorized representative upon request by EPA,
and if requested by EPA, ship the sample to EPA within two working days
by an overnight shipping service or comparable means, following the
procedures specified by EPA when the request is made.
(4) Include with each annual report filed under Sec. 80.370, the
following statement, signed and dated by the same person who signs the
annual report:
I certify that I have made inquiries that are sufficient to give
me knowledge of the procedures to collect and store gasoline
samples, and I further certify that the procedures meet the
requirements of the ASTM procedures required under Sec. 80.330.
(b) The requirements of this section apply beginning October 1,
2003, or January 1 of the first year of credit generation for refiners
and importers generating early credits under Sec. 80.305.
Sec. 80.340 What alternative standards, sampling and testing
requirements apply to refiners producing gasoline by blending
blendstocks into previously certified gasoline (PCG)?
(a) Any refiner who produces gasoline by blending blendstock into
PCG must meet the requirement of Sec. 80.330 to sample and test every
batch of gasoline as follows:
(1)(i) Sample and test to determine the volume and sulfur content
of the PCG prior to blendstock blending;
(ii) Sample and test to determine the volume and sulfur content of
the gasoline subsequent to blendstock blending;
(iii) Calculate the volume and sulfur content of the blendstock,
which is a batch for purposes of compliance calculations and reporting,
by subtracting the volume and sulfur content of the PCG from the volume
and sulfur content of the gasoline subsequent to blendstock blending.
(2) In the alternative, and provided every batch of blendstock used
at a refinery during an averaging period has a sulfur content that is
equal to or less than the applicable per-gallon cap standard under
Sec. 80.195, a refiner may sample and test each batch of blendstock
when received at the refinery to determine the volume and sulfur
content, and treat each blendstock receipt as a separate batch for
purposes of compliance calculations for the annual average sulfur
standard and for reporting.
(b) Refiners that blend only butane into PCG may meet the sampling
and testing requirements by using sulfur test results of the butane
supplier, provided that the following requirements are also met:
(1) The sulfur content of the butane received from the butane
supplier must not exceed 30 ppm on a per-gallon basis.
(2) The butane supplier must demonstrate that the sulfur content of
each load of butane supplied does not exceed the per-gallon sulfur
standard of 30 ppm through test results of samples of the butane
contained in the storage tank from which the butane blender is
supplied.
(i) Testing for the sulfur content of the butane by the supplier
must be subsequent to each time butane is supplied to the supplier's
storage tank, or the testing must be immediately before transfer of
butane to the butane blender.
(ii) The testing must be performed by the method specified in
Sec. 80.330(d).
(iii) The butane blender must obtain a copy of the butane
supplier's test results, at the time of each transfer of butane to the
butane blender, that reflect the sulfur content of each load of butane
supplied to the butane blender.
(3) The sulfur content and volume of each batch of gasoline
produced must be that of the butane the refiner blends into gasoline
for purposes of calculating compliance with the standards in
Sec. 80.195.
(4) The refiner must conduct a quality assurance program of
sampling and testing for each butane supplier that demonstrates the
butane sulfur content does not exceed 30 ppm. The frequency of butane
sampling and testing, for each butane supplier, must be one sample for
every 500,000 gallons of butane received, or one sample every 3 months,
whichever results in more frequent sampling.
(5) If any of the requirements of this section are not met, in
whole or in part, for any butane blended into gasoline, that butane is
deemed in violation of the gasoline sulfur standards in Sec. 80.195.
Sec. 80.345 [Reserved]
Sec. 80.350 What alternative sulfur standards, sampling and testing
requirements apply to importers who transport gasoline by truck?
Importers who import gasoline into the United States by truck, as
an alternative to the requirements to sample and test every batch of
gasoline under Sec. 80.330(a), and the annual sulfur average and per-
gallon cap standards otherwise applicable to importers under
Sec. 80.195, may instead comply with the following requirements:
(a) Per-gallon standard. The imported gasoline must meet a sulfur
standard of 30 ppm on a per-gallon basis.
(b) Terminal testing. The terminal operator must demonstrate the
gasoline does not exceed 30 ppm sulfur on a per-gallon basis, through
testing of the gasoline contained in the storage tank from which the
trucks used to transport gasoline into the United States are loaded.
[[Page 26117]]
(1) This sampling and testing must be performed after each receipt
of gasoline into the storage tank, or immediately before each transfer
of gasoline to the importer's truck.
(2) The sampling and testing must be performed using the methods
specified in Sec. 80.330.
(3) At the time of each transfer of gasoline to the importer's
truck, the importer must obtain a copy of the terminal test result that
indicates the sulfur content of each truck load of gasoline that is
imported into the United States.
(c) Quality assurance program. The importer must conduct a quality
assurance program, as specified in this paragraph, for each truck
loading terminal.
(1) Quality assurance samples must be obtained from the truck-
loading terminal and tested by the importer, or by an independent
laboratory, and the terminal operator must not know in advance when
samples are to be collected.
(2) The sampling and testing must be performed using the methods
specified in Sec. 80.330.
(3) The quality assurance test results for sulfur must be within 12
ppm of the terminal's test results.
(4) The frequency of the quality assurance sampling and testing
must be at least one sample for each fifty of an importer's trucks that
are loaded at a terminal, or one sample per month, whichever is more
frequent.
(d) Instead of conducting the quality assurance program specified
in paragraph (c) of this section an importer may meet the quality
assurance program requirement if the sampling and testing requirements
of paragraph (b) of this section are conducted by an independent
laboratory that meets the requirements in Sec. 80.65(f)(2)(iii).
(e) The importer must treat each truck load of imported gasoline as
a separate batch for purposes of assigning batch numbers and
maintaining records under Sec. 80.365, and reporting under Sec. 80.370.
(f) EPA inspectors or auditors, and auditors conducting attest
engagements under Sec. 80.415, must be given full and immediate access
to the truck-loading terminal and any laboratory at which samples of
gasoline collected at the terminal are analyzed, and must be allowed to
conduct inspections, review records, collect gasoline samples, and
perform audits. These inspections or audits may be either announced or
unannounced.
(g) This section does not apply to Certified Sulfur-FRGAS.
(h) If any of the requirements of this section are not met, all
gasoline imported by the truck importer during the time any
requirements are not met is deemed in violation of the gasoline sulfur
average and per-gallon cap standards in Sec. 80.195. In addition, the
truck importer may not in the future use the sampling and testing
provisions in this section in lieu of the provisions in Sec. 80.330.
Sec. 80.355 [Reserved]
Recordkeeping and Reporting Requirements
Sec. 80.360 What are the product transfer document requirements?
(a) On each occasion that any person transfers custody of or title
to S-RGAS, as defined in Sec. 80.210, other than when S-RGAS is sold or
dispensed for use in motor vehicles at a retail outlet or wholesale
purchaser-consumer facility, the product transfer documents must
include a statement identifying the gasoline as S-RGAS and the
applicable downstream cap under Sec. 80.210(b).
(b) Except for transfers to truck carriers, retailers and wholesale
purchaser-consumers, product codes may be used to convey the
information required by this section if such codes are clearly
understood by each transferee.
Sec. 80.365 What records must be kept?
(a) Records that must be kept. Beginning January 1, 2004, any
person who sells, offers for sale, dispenses, distributes, supplies,
offers for supply, stores, or transports gasoline, must keep the
following records:
(1) The product transfer documents required under Secs. 80.106,
80.77 and 80.360;
(2) For any sampling and testing for sulfur content conducted:
(i) The location, date, time and storage tank or truck
identification for each sample collected;
(ii) The name and title of the person who collected the sample and
the person who performed the testing;
(iii) The results of the tests for sulfur content and the test
volume; and
(3) Reasonable business records documenting the actions you took to
stop the sale or distribution of any gasoline found not to be in
compliance with the sulfur standards specified in this subpart, and the
actions you took to identify the cause of any noncompliance and prevent
future instances of noncompliance.
(b) Additional records that refiners and importers must keep.
Beginning October 1, 2003, or January 1 of the first year of early
credit generation for refiners and importers generating credits under
Sec. 80.305, refiners and importers must keep records that include the
following information:
(1) The volume of each batch of gasoline produced or imported;
(2) For credit generation, the information required by paragraph
(a)(2) of this section as well as the information required under
Sec. 80.305(a)(5) and Sec. 80.310(c);
(3) The batch number assigned to each batch of gasoline under
Sec. 80.65(d)(3); however, if composite samples that represent multiple
batches of conventional gasoline for anti-dumping purposes are used, a
separate batch number must be assigned to each batch for purposes of
this subpart;
(4) The date of production or importation of each batch of gasoline
produced or imported;
(5) The calculations and records used in making the calculations to
determine compliance with the applicable sulfur standard on average,
including compliance with the debit provision of this subpart and
records regarding the generation, use, transfer, and banking of credits
under Secs. 80.195, 80.305, 80.310 and 80.315; and
(6) A copy of all reports and other documents submitted to the EPA
pursuant to the requirements of this subpart.
(c) Additional records importers must keep. Importers must maintain
documentation which verifies the source of each batch of certified
Sulfur-FRGAS and non-certified Sulfur-FRGAS imported.
(d) Length of time records must be kept. The records required in
paragraphs (a), (b) and (c) of this section must be maintained for five
years from the date they were created, except for the following:
(1) For any person who generates credits, and/or uses the credits
so generated, the records required by paragraphs (a), (b) and (c) of
this section must be retained for five years from the date the credits
were used, and in no case must the records be retained for more than
ten years from the year they were generated.
(2) In the case of credits that were transferred between two
parties, both parties must retain records of those credits for ten
years from the date the credits were generated.
(e) Make records available to EPA. The records required in
paragraphs (a), (b) and (c) of this section must be made available to
the Administrator or the Administrator's authorized representative upon
request.
Sec. 80.370 What are the annual reporting requirements?
Beginning with the 2004 averaging period, or the first year of
credit
[[Page 26118]]
generation for refiners and importers generating early credits under
Sec. 80.305, and continuing for each averaging period thereafter,
refiners and importers must submit to the Administrator a report that
contains the information required in this section and such other
information as EPA may require. A refiner's annual reports for 2004 and
2005 must include the refiner's RFG and conventional gasoline
production for all refineries during the averaging period. Beginning in
2006 and thereafter, a refiner must submit a separate annual report for
each refinery that produced gasoline during the averaging period. An
importer must submit a report for all of the gasoline imported during
the averaging period no later than the last day of February following
the previous year's averaging period.
(a) Information required in a refiner's report. For refiners, the
annual sulfur averaging report must include the following information:
(1) The EPA refiner and refinery facility registration numbers;
(2) The total gallons of gasoline (winter reformulated, summer
reformulated, and conventional) produced at the refinery or aggregation
of refineries;
(3) The annual average sulfur content of the gasoline (winter
reformulated, summer reformulated, and conventional) produced at the
refinery, or aggregation of refineries, in parts per million;
(4) For each batch of gasoline produced during the averaging
period:
(i) The batch number assigned under Sec. 80.65(d)(3); however, if
composite samples that represent multiple batches of conventional
gasoline are tested for conventional gasoline, a separate batch number
must be assigned to each batch, using the batch numbering procedures
specified in Sec. 80.65(d)(3);
(ii) The date the batch was produced;
(iii) The volume of the batch;
(iv) The sulfur content of the batch as determined under
Sec. 80.330;
(v) The information on individual batches submitted to EPA under
Sec. 80.75(a)(2) and 80.105(a)(5) satisfies the requirements of this
paragraph (a)(4) unless compositing of samples is used for anti-dumping
rule batch reporting under Sec. 80.105(a)(5);
(5) A refiner's annual report for 2004 and 2005 must include the
refiner's winter reformulated RFG, summer RFG, and conventional
gasoline for all refineries during the averaging period;
(6) Beginning in 2006 and thereafter, a refiner must submit a
separate annual report for each of its refineries that produced
gasoline during the averaging period.
(b) Information required in an importer's report. An importer must
submit a report for all the gasoline it imported during the averaging
period. The report must include the following information:
(1) The EPA importer registration number;
(2) The total gallons of gasoline (reformulated and conventional)
imported during the averaging period, excluding certified Sulfur-FRGAS;
(3) The annual average sulfur content of the gasoline (reformulated
and conventional) imported during the averaging period, excluding
certified Sulfur-FRGAS, in parts per million;
(4) For gasoline imported during the averaging period from any
small foreign refiner who has an EPA approved individual baseline under
the small refiner provisions at Sec. 80.410, include the following
information:
(i) The EPA refiner and refinery registration numbers of each such
small foreign refiner and refinery facility; and
(ii) The total gallons of certified Sulfur-FRGAS and non-certified
Sulfur-FRGAS imported from each such small foreign refiner;
(5) The batch information required in paragraph (a)(4) of this
section.
(c) Sulfur credit program activity. Refiners and importers who
generate, bank, transfer, or use sulfur credits must submit to EPA an
annual report in accordance with the provisions of Sec. 80.320.
(d) The report must state the debit for the current year, as
applicable, and credits applied to the previous compliance year's
debit, as applicable.
(e) Report submission. Each annual report required under this
section must be:
(1) Signed and certified as meeting all of the applicable
requirements of this subpart H by the owner or a responsible corporate
officer of the refiner or importer; and
(2) Submitted to EPA no later than the last day of February for the
prior calendar year averaging period.
(f) Attest reports. Attest reports for refiner and importer attest
engagements must be submitted to the Administrator by May 30 of each
year under Sec. 80.415.
Exemptions
Sec. 80.375 What requirements apply to California gasoline?
(a) Definition. For purposes of this subpart, California gasoline
is defined under Sec. 80.81(a)(2).
(b) California gasoline exemptions. California gasoline is exempt
from all requirements of this subpart with the exception of the
segregation requirement described in paragraph (c) of this section and
the product transfer document requirements described in paragraph (d)
of this section.
(c) Segregation requirement. California gasoline produced at a
refinery located outside of the state of California must be kept
segregated from all gasoline that is not California gasoline at all
points in the distribution system.
(d) Product transfer documents. For California gasoline produced at
a refinery located outside the state of California, the transferors and
transferees must comply with the product transfer document requirements
in Sec. 80.81(g).
(e) Use of California test methods and off site sampling
procedures. Any refiner of gasoline produced in California or importer
of gasoline imported into California whose gasoline is used outside of
California may:
(1) Use the sampling and testing methods approved in Title 13 of
the California Code of Regulations, as permitted under Sec. 80.81(h)(1)
as an alternative to the sampling and testing methods required by
Sec. 80.330; and
(2) Determine the sulfur content of gasoline at off site tankage as
permitted in Sec. 80.81(h)(2).
Sec. 80.380 What are the requirements for obtaining an exemption for
gasoline used for research, development or testing purposes?
(a) R&D application. Any person may request an exemption from the
provisions of this subpart for gasoline used for research, development
or testing (``R&D'') purposes by submitting an application that
includes all the information listed in paragraph (c) of this section
to:
Director (6406J), Fuels and Energy Division, U.S. Environmental
Protection Agency, 401 M Street SW, Washington, DC 20460; and
Director (2242A), Air Enforcement Division, U.S. Environmental
Protection Agency, 401 M Street, SW, Washington, DC 20460.
(b) Criteria for an R&D exemption. For an R&D exemption to be
granted, the proposed test program must:
(1) Have a purpose that constitutes an appropriate basis for
exemption;
(2) Necessitate the granting of an exemption;
(3) Be reasonable in scope; and
(4) Have a degree of control consistent with the purpose of the
program and EPA's monitoring requirements.
(c) Information required to be submitted. To demonstrate each of
the four elements in paragraphs (b)(1) through (4) of this section, the
[[Page 26119]]
application required under paragraph (a) of this section must include
the following information:
(1) A concise statement of the purpose of the program demonstrating
that the program has an appropriate R&D purpose.
(2) An explanation of why the stated purpose of the program cannot
be achieved in a practicable manner without performing one or more of
the prohibited acts under Sec. 80.385.
(3) To demonstrate the reasonableness of the scope of the program:
(i) An estimate of the program's duration;
(ii) An estimate of the maximum number of vehicles or engines
involved in the program;
(iii) The time or mileage duration of the program;
(iv) The range of sulfur content of the gasoline expected to be
used in the program, in ppm; and
(v) The quantity of gasoline which exceeds the applicable sulfur
standard that is expected to be used in the program.
(4) With regard to control, a demonstration that the program
affords EPA a monitoring capability, including at a minimum:
(i) The technical nature of the program;
(ii) The site(s) of the program (including street address, city,
county, State, and zip code);
(iii) The manner in which information on vehicles and engines used
in the program will be recorded and made available to the
Administrator;
(iv) The manner in which results of the program will be recorded
and made available to the Administrator;
(v) The manner in which information on the gasoline used in the
program (including quantity, sulfur content, name, address, telephone
number and contact person of the supplier, and the date received from
the supplier), will be recorded and made available to the
Administrator;
(vi) The manner in which distribution pumps will be labeled to
insure proper use of the gasoline;
(vii) The name, address, telephone number and title of the
person(s) in the organization requesting an exemption from whom further
information on the application may be obtained; and
(viii) The name, address, telephone number and title of the
person(s) in the organization requesting an exemption who is
responsible for recording and making available the information
specified in paragraphs (b)(4)(iii), (iv) and (v) of this section, and
the location in which such information will be maintained.
(d) Additional requirements. (1) The product transfer documents
associated with R&D gasoline must identify the gasoline as such, and
must state that the gasoline is to be used only for research,
development, or testing purposes.
(2) The R&D gasoline must be kept segregated from non-exempt
gasoline at all points in distribution of the gasoline.
(3) The R&D gasoline must not be sold, distributed, offered for
sale or distribution, dispensed, supplied, offered for supply,
transported to or from, or stored by a gasoline retail outlet, or by a
wholesale purchaser-consumer facility, unless the wholesale purchaser-
consumer facility is associated with the R&D program that uses the
gasoline.
(e) Memorandum of exemption. The Administrator will grant an R&D
exemption upon a demonstration that the requirements of this section
have been met. The R&D exemption will be granted in the form of a
memorandum of exemption signed by the applicant and the Administrator
(or delegate), which will include such terms and conditions as the
Administrator determines necessary to monitor the exemption and to
carry out the purposes of this section. Any violation of such a term or
condition of the exemption or any requirement under this section will
cause the exemption to be void ab initio.
Violation Provisions
Sec. 80.385 What acts are prohibited under the gasoline sulfur
program?
No person may:
(a) Produce or import gasoline that does not comply with the
applicable sulfur average standards at Sec. 80.195 or Sec. 80.240.
(b) Produce, import, sell, offer for sale, dispense, supply, offer
for supply, store or transport gasoline that does not comply with the
applicable sulfur cap standards at Sec. 80.195, Sec. 80.210 or
Sec. 80.240.
(c) Cause another person to commit an act in violation of paragraph
(b) of this section.
(d) Cause gasoline that does not comply with an applicable refiner/
importer or downstream cap standard under Sec. 80.195, Sec. 80.210 or
Sec. 80.240 to be in the gasoline distribution system.
Sec. 80.390 What evidence may be used to determine compliance with the
prohibitions and requirements of this subpart and liability for
violations of this subpart?
(a) Compliance with the sulfur standards of this subpart must be
determined based on the sulfur level of the gasoline, measured using
the methodologies specified in Sec. 80.330. Any evidence or
information, including the exclusive use of such evidence or
information, may be used to establish the sulfur level of gasoline if
the evidence or information is relevant to whether the sulfur level of
gasoline would have been in compliance with the standards if the
appropriate sampling and testing methodology had been correctly
performed. Such evidence may be obtained from any source or location
and may include, but is not limited to, test results using methods
other than those specified in Sec. 80.330, business records, and
commercial documents.
(b) Determination of compliance with the requirements of this
subpart other than the sulfur standards, and determination of liability
for any violation of this subpart, are based on probative evidence or
information obtained from any source or location. Such evidence may
include, but is not limited to, business records and commercial
documents.
Sec. 80.395 Who is liable for violations under the gasoline sulfur
program?
(a) Persons liable for violations of prohibited acts. (1) Any
refiner or importer who violates Sec. 80.385(a) is liable for the
violation.
(2) Any refiner, importer, distributor, reseller, carrier, retailer
or wholesale purchaser-consumer who owned, leased, operated, controlled
or supervised a facility where a violation of Sec. 80.385(b) occurred,
is deemed in violation of Sec. 80.385(b).
(3) Any refiner, importer, distributor, reseller, retailer, or
wholesale purchaser-consumer who produced, imported, sold, offered for
sale, dispensed, supplied, offered for supply, stored, transported, or
caused the transportation or storage of gasoline that is the subject of
a violation of Sec. 80.385(b), is deemed in violation of
Sec. 80.385(c).
(4) Any refiner or importer whose corporate, trade, or brand name,
or whose marketing subsidiary's corporate, trade, or brand name
appeared at a facility where a violation of Sec. 80.385(b) occurred, is
deemed in violation of Sec. 80.385(b).
(5) Any carrier who dispensed, supplied, stored, or transported
gasoline which is the subject of a violation of Sec. 80.385(b), is
deemed in violation of Sec. 80.385(c) provided that EPA demonstrates,
by reasonably specific showing by direct or circumstantial evidence,
that any such carrier caused the violation.
(6) Any refiner, importer, distributor, reseller, or carrier who
owned, leased, operated, controlled or supervised a facility from which
gasoline that does
[[Page 26120]]
not comply with an applicable refiner/importer or downstream sulfur cap
standard at Sec. 80.195, Sec. 80.210 or Sec. 80.240 was released into
the distribution system, is deemed in violation of Sec. 80.385(d).
(7) Any person who caused another party to violate Sec. 80.385(a),
is liable for causing a violation of Sec. 80.385(a).
(b) Persons liable for failure to meet other requirements of this
subpart. (1) Any person who failed to meet a requirement of this
subpart not addressed in paragraph (a) of this section is liable for a
violation of that requirement.
(2) Any person who caused another person to fail to meet a
requirement of this subpart not addressed in paragraph (a) of this
section is liable for causing a violation of that requirement.
Sec. 80.400 What defenses apply to persons deemed liable for a
violation of a prohibited act?
(a) Any person deemed liable for a violation of a prohibition under
Sec. 80.395(a), will not be deemed in violation if the person
demonstrates:
(1) That the violation was not caused by the person or the person's
employee or agent; and
(2) That the person conducted a quality assurance sampling and
testing program, as described in paragraph (d) of this section. A
carrier may rely on the quality assurance program carried out by
another party, including the party who owns the gasoline in question,
provided that the quality assurance program is carried out properly.
Retailers and wholesale purchaser-consumers are not required to conduct
quality assurance programs.
(b) In the case of a violation found at a facility operating under
the corporate, trade or brand name of a refiner or importer, or a
refiner's or importer's marketing subsidiary, the refiner or importer
must show, in addition to the defense elements required by paragraph
(a) of this section, that the violation was caused by:
(1) An act in violation of law (other than the Clean Air Act or
this Part 80), or an act of sabotage or vandalism;
(2) The action of any refiner, importer, retailer, distributor,
reseller, carrier, retailer or wholesale purchaser-consumer in
violation of a contractual agreement between the branded refiner or
importer and the person designed to prevent such action, and despite
periodic sampling and testing by the branded refiner or importer to
ensure compliance with such contractual obligation; or
(3) The action of any carrier or other distributor not subject to a
contract with the refiner or importer, but engaged for transportation
of gasoline, despite specifications or inspections of procedures and
equipment which are reasonably calculated to prevent such action.
(c) Under paragraph (a) of this section, for any person to show
that the violation was not caused by it, or under paragraph (b) of this
section, to show that the violation was caused by any of the specified
actions, the person must demonstrate by reasonably specific showing, by
direct or circumstantial evidence, that the violation was caused or
must have been caused by another person and that the person asserting
the defense did not contribute to that other person's causation.
(d) Quality assurance program. To demonstrate an acceptable quality
assurance program under paragraph (a)(2) of this section, a person must
present evidence of the following:
(1) A periodic sampling and testing program to ensure the gasoline
the person sold, dispensed, supplied, stored, or transported, meets the
applicable sulfur standard;
(2) On each occasion when gasoline is found not in compliance with
the applicable sulfur standard:
(i) The person immediately ceases selling, offering for sale,
dispensing, supplying, offering for supply, storing or transporting the
non-complying product; and
(ii) The person promptly remedies the violation and the factors
that caused the violation (for example, by removing the non-complying
product from the distribution system until the applicable standard is
achieved and taking steps to prevent future violations of a similar
nature from occurring); and
(3) Any carrier who transports gasoline in a tank truck, the
quality assurance program required under this paragraph (d) of this
section is not required to include periodic sampling and testing of
gasoline in the tank truck, but instead of such sampling and testing,
the carrier must present evidence of an oversight program relating to
the transport or storage of gasoline by tank truck, such as appropriate
guidance to drivers regarding compliance with the applicable sulfur
standard and product transfer document requirements, and the periodic
review of records received in the ordinary course of business
concerning gasoline quality and delivery.
Sec. 80.405 What Penalties Am I Subject To?
(a) Any person liable for a violation under Sec. 80.395, is subject
to a civil penalty of not more than $27,500 for every day of each such
violation and the amount of economic benefit or savings resulting from
each violation.
(b) Any person liable under Sec. 80.395(a) for a violation of the
applicable sulfur average standard or causing another party to violate
that standard during any averaging period, is subject to a separate day
of violation for each and every day in the averaging period. Any person
liable under Sec. 80.395(b) for a failure to fulfill any credit
creation or transfer requirement, is subject to a separate day of
violation for each and every day in the averaging period.
(c)(1) Any person liable under Sec. 80.395(a) for causing gasoline
that does not comply with an applicable refiner/importer or downstream
sulfur cap standard to be in the gasoline distribution system in
violation of Sec. 80.385(d), is subject to a separate day of violation
for each and every day that the non-complying gasoline remains any
place in the gasoline distribution system.
(2) For purposes of paragraph (c) of this section, the length of
time the gasoline in question remained in the gasoline distribution
system is deemed to be twenty-five days, unless a person subject to
liability or EPA demonstrates by reasonably specific showings, by
direct or circumstantial evidence, that the non-complying gasoline
remained in the gasoline distribution system for fewer than or more
than twenty-five days.
(d) Any person liable under Sec. 80.395(b) for failure to meet, or
causing a failure to meet, a requirement of this subpart is liable for
a separate day of violation for each and every day such requirement
remains unfulfilled.
Provisions for Foreign Refiners With Individual Sulfur Baselines
Sec. 80.410 What are the additional requirements for gasoline produced
at foreign refineries having individual small refiner sulfur baselines?
(a) Definitions. (1) A foreign refinery is a refinery that is
located outside the United States, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands (collectively referred to in this section as
``the United States'').
(2) A foreign refiner is a person who meets the definition of
refiner under Sec. 80.2(i) for foreign refinery.
(3) A small foreign refiner is a refiner that meets the definition
of a small refiner under Sec. 80.225.
(4) ``Sulfur-FRGAS'' means gasoline produced at a foreign refinery
that has been assigned an individual refinery
[[Page 26121]]
sulfur baseline and that is imported into the United States.
(5) ``Non-Sulfur-FRGAS'' means gasoline that is produced at a
foreign refinery that has not been assigned an individual refinery
sulfur baseline, gasoline produced at a foreign refinery with an
individual refinery sulfur baseline that is not imported into the
United States, and gasoline produced at a foreign refinery with an
individual sulfur baseline during a year when the foreign refiner has
opted to not participate in the Sulfur-FRGAS program under paragraph
(c)(3) of this section.
(6) ``Certified Sulfur-FRGAS'' means Sulfur-FRGAS the foreign
refiner intends to include in the foreign refinery's sulfur compliance
calculations under Sec. 80.205, and does include in these compliance
calculations when reported to EPA.
(7) ``Non-Certified Sulfur-FRGAS'' means Sulfur-FRGAS that is not
Certified Sulfur-FRGAS.
(b) Baseline establishment. Any foreign refiner that meets the
definition of small under Sec. 80.225, may submit to a petition to the
Administrator for an individual refinery sulfur baseline, under
Sec. 80.235 by June 1, 2002.
(1) The baseline for a foreign refinery must reflect only the
volume and properties of gasoline produced in 1997 and 1998 that was
imported into the United States.
(2) In making determinations for foreign refinery baselines EPA
will consider all information supplied by a foreign refiner, and in
addition may rely on any and all appropriate assumptions necessary to
make such a determination.
(3) Where a foreign refiner submits a petition that is incomplete
or inadequate to establish an accurate baseline, and the refiner fails
to cure this defect after a request for more information, then EPA will
not assign an individual refinery sulfur baseline.
(c) General requirements for foreign refiners with individual
refinery sulfur baselines. A foreign refiner of a refinery that has
been assigned an individual sulfur baseline under paragraph (b) of this
section must designate all gasoline produced at the foreign refinery
that is exported to the United States as either Certified Sulfur-FRGAS
or as Non-Certified Sulfur-FRGAS, except as provided in paragraph
(c)(3) of this section.
(1) In the case of Certified Sulfur-FRGAS, the foreign refiner must
meet all requirements that apply to refiners under this subpart.
(2) In the case of Non-Certified Sulfur-FRGAS, the foreign refiner
must meet all the following requirements:
(i) The designation requirements in this section.
(ii) The recordkeeping requirements in Secs. 80.360 and 80.365.
(iii) The reporting requirements in Sec. 80.370 and this section.
(iv) The product transfer document requirements in this section.
(v) The prohibitions in this section and Sec. 80.385.
(vi) The independent audit requirements in Sec. 80.415 and
paragraph (h) of this section.
(3)(i) Any foreign refiner that has been assigned an individual
sulfur baseline for a foreign refinery under paragraph (b) of this
section may elect to classify no gasoline imported into the United
States as Sulfur-FRGAS, provided the foreign refiner notifies EPA of
the election no later than November 1 of the prior calendar year.
(ii) An election under paragraph (c)(3)(i) of this section must:
(A) Be for an entire calendar year averaging period and apply to
all gasoline produced during the calendar year at the foreign refinery
that is used in the United States; and
(B) Remain in effect for each succeeding calendar year averaging
period, unless and until the foreign refiner notifies EPA of a
termination of the election. The change in election takes effect at the
beginning of the next calendar year.
(d) Designation, product transfer documents, and foreign refiner
certification. (1) Any foreign refiner of a foreign refinery that has
been assigned an individual sulfur baseline must designate each batch
of Sulfur-FRGAS as such at the time the gasoline is produced, unless
the refiner has elected to classify no gasoline exported to the United
States as Sulfur-FRGAS under paragraph (c)(3)(i) of this section.
(2) On each occasion when any person transfers custody or title to
any Sulfur-FRGAS prior to its being imported into the United States,
they must include the following information as part of the product
transfer document information in this section:
(i) Identification of the gasoline as Certified Sulfur-FRGAS or as
Non-Certified Sulfur-FRGAS; and
(ii) The name and EPA refinery registration number of the refinery
where the Sulfur-FRGAS was produced.
(3) On each occasion when Sulfur-FRGAS is loaded onto a vessel or
other transportation mode for transport to the United States, the
foreign refiner must prepare a certification for each batch of the
Sulfur-FRGAS that meets the following requirements:
(i) The certification must include the report of the independent
third party under paragraph (f) of this section, and the following
additional information:
(A) The name and EPA registration number of the refinery that
produced the Sulfur-FRGAS;
(B) The identification of the gasoline as Certified Sulfur-FRGAS or
Non-Certified Sulfur-FRGAS, and for Certified Sulfur-FRGAS the
information required by Sec. 80.360;
(C) The volume of Sulfur-FRGAS being transported, in gallons;
(D) A declaration that the Sulfur-FRGAS is being included in the
compliance baseline calculations under Sec. 80.250 for the refinery
that produced the Sulfur-FRGAS; and
(E) In the case of Certified Sulfur-FRGAS:
(1) The sulfur content as determined under paragraph (f) of this
section; and
(2) A declaration that the Sulfur-FRGAS is being included in the
compliance calculations under Sec. 80.205 for the refinery that
produced the Sulfur-FRGAS.
(ii) The certification must be made part of the product transfer
documents for the Sulfur-FRGAS.
(e) Transfers of Sulfur-FRGAS to non-United States markets. The
foreign refiner is responsible to ensure that all gasoline classified
as Sulfur-FRGAS is imported into the United States. A foreign refiner
may remove the Sulfur-FRGAS classification, and the gasoline need not
be imported into the United States, but only if:
(1)(i) The foreign refiner excludes:
(A) The volume of gasoline from the refinery's compliance baseline
calculations under Sec. 80.250; and
(B) In the case of Certified Sulfur-FRGAS, the volume and sulfur
content of the gasoline from the compliance calculations under
Sec. 80.205;
(ii) The exclusions under paragraph (e)(1)(i) of this section must
be on the basis of the parameter and volumes determined under paragraph
(f) of this section; and
(2) The foreign refiner obtains sufficient evidence in the form of
documentation that the gasoline was not imported into the United
States.
(f) Load port independent sampling, testing and refinery
identification. (1) On each occasion Sulfur-FRGAS is loaded onto a
vessel for transport to the United States a foreign refiner must have
an independent third party:
(i) Inspect the vessel prior to loading and determine the volume of
any tank bottoms;
(ii) Determine the volume of Sulfur-FRGAS loaded onto the vessel
(exclusive of any tank bottoms present before vessel loading);
[[Page 26122]]
(iii) Obtain the EPA-assigned registration number of the foreign
refinery;
(iv) Determine the name and country of registration of the vessel
used to transport the Sulfur-FRGAS to the United States; and
(v) Determine the date and time the vessel departs the port serving
the foreign refinery.
(2) On each occasion Certified Sulfur-FRGAS is loaded onto a vessel
for transport to the United States a foreign refiner must have an
independent third party:
(i) Collect a representative sample of the Certified Sulfur-FRGAS
from each vessel compartment subsequent to loading on the vessel and
prior to departure of the vessel from the port serving the foreign
refinery;
(ii) Prepare a volume-weighted vessel composite sample from the
compartment samples, and determine the value for sulfur using the
methodology specified in Sec. 80.330 by:
(A) The third party analyzing the sample; or
(B) The third party observing the foreign refiner analyze the
sample;
(iii) Review original documents that reflect movement and storage
of the certified Sulfur-FRGAS from the refinery to the load port, and
from this review determine:
(A) The refinery at which the Sulfur-FRGAS was produced; and
(B) That the Sulfur-FRGAS remained segregated from:
(1) Non-Sulfur-FRGAS and Non-Certified Sulfur-FRGAS; and
(2) Other Certified Sulfur-FRGAS produced at a different refinery.
(3) The independent third party must submit a report:
(i) To the foreign refiner containing the information required
under paragraphs (f)(1) and (2) of this section, to accompany the
product transfer documents for the vessel; and
(ii) To the Administrator containing the information required under
paragraphs (f)(1) and (2) of this section, within thirty days following
the date of the independent third party's inspection. This report must
include a description of the method used to determine the identity of
the refinery at which the gasoline was produced, assurance that the
gasoline remained segregated as specified in paragraph (n)(1) of this
section, and a description of the gasoline's movement and storage
between production at the source refinery and vessel loading.
(4) The independent third party must:
(i) Be approved in advance by EPA, based on a demonstration of
ability to perform the procedures required in this paragraph (f);
(ii) Be independent under the criteria specified in
Sec. 80.65(f)(2)(iii); and
(iii) Sign a commitment that contains the provisions specified in
paragraph (i) of this section with regard to activities, facilities and
documents relevant to compliance with the requirements of this
paragraph (f).
(g) Comparison of load port and port of entry testing. (1)(i) Any
foreign refiner and any United States importer of Certified Sulfur-
FRGAS must compare the results from the load port testing under
paragraph (f) of this section, with the port of entry testing as
reported under paragraph (o) of this section, for the volume of
gasoline and the sulfur value; except that
(ii) Where a vessel transporting Certified Sulfur-FRGAS off loads
this gasoline at more than one United States port of entry, and the
conditions of paragraph (g)(2)(i) of this section are met at the first
United States port of entry, the requirements of paragraph (g)(2) of
this section do not apply at subsequent ports of entry if the United
States importer obtains a certification from the vessel owner, that
meets the requirements of paragraph(s) of this section, that the vessel
has not loaded any gasoline or blendstock between the first United
States port of entry and the subsequent port of entry.
(2)(i) The requirements of this paragraph (g)(2) apply if:
(A) The temperature-corrected volumes determined at the port of
entry and at the load port differ by more than one percent; or
(B) The sulfur value determined at the port of entry is higher than
the sulfur value determined at the load port, and the amount of this
difference is greater than the reproducibility amount specified for the
port of entry test result by the American Society of Testing and
Materials (ASTM).
(ii) The United States importer and the foreign refiner must treat
the gasoline as Non-Certified Sulfur-FRGAS, and the foreign refiner
must:
(A) Exclude the gasoline volume and properties from its gasoline
sulfur compliance calculations under Sec. 80.205; and
(B) Include the gasoline volume in its compliance baseline
calculation under Sec. 80.250.
(h) Attest requirements. The following additional procedures must
be carried out by any foreign refiner of Sulfur-FRGAS as part of the
attest engagement for each foreign refinery under Sec. 80.415:
(1) The inventory reconciliation analysis under Sec. 80.128(b) and
the tender analysis under Sec. 80.128(c) must include Non-Sulfur-FRGAS
in addition to the gasoline types listed in Sec. 80.128(b) and (c).
(2) Obtain separate listings of all tenders of Certified Sulfur-
FRGAS, and of Non-Certified Sulfur-FRGAS. Agree the total volume of
tenders from the listings to the gasoline inventory reconciliation
analysis in Sec. 80.128(b), and to the volumes determined by the third
party under paragraph (f)(1) of this section.
(3) For each tender under paragraph (h)(2) of this section where
the gasoline is loaded onto a marine vessel, report as a finding the
name and country of registration of each vessel, and the volumes of
Sulfur-FRGAS loaded onto each vessel.
(4) Select a sample from the list of vessels identified in
paragraph (h)(3) of this section used to transport Certified Sulfur-
FRGAS, in accordance with the guidelines in Sec. 80.127, and for each
vessel selected perform the following:
(i) Obtain the report of the independent third party, under
paragraph (f) of this section, and of the United States importer under
paragraph (o) of this section.
(A) Agree the information in these reports with regard to vessel
identification, gasoline volumes and test results.
(B) Identify, and report as a finding, each occasion the load port
and port of entry parameter and volume results differ by more than the
amounts allowed in paragraph (g) of this section, and determine whether
the foreign refiner adjusted its refinery calculations as required in
paragraph (g) of this section.
(ii) Obtain the documents used by the independent third party to
determine transportation and storage of the Certified Sulfur-FRGAS from
the refinery to the load port, under paragraph (f) of this section.
Obtain tank activity records for any storage tank where the Certified
Sulfur-FRGAS is stored, and pipeline activity records for any pipeline
used to transport the Certified Sulfur-FRGAS, prior to being loaded
onto the vessel. Use these records to determine whether the Certified
Sulfur-FRGAS was produced at the refinery that is the subject of the
attest engagement, and whether the Certified Sulfur-FRGAS was mixed
with any Non-Certified Sulfur-FRGAS, Non-Sulfur-FRGAS, or any Certified
Sulfur-FRGAS produced at a different refinery.
(5) Select a sample from the list of vessels identified in
paragraph (h)(3) of this section used to transport certified and Non-
Certified Sulfur-FRGAS, in accordance with the guidelines in
Sec. 80.127, and for each vessel selected perform the following:
[[Page 26123]]
(i) Obtain a commercial document of general circulation that lists
vessel arrivals and departures, and that includes the port and date of
departure of the vessel, and the port of entry and date of arrival of
the vessel.
(ii) Agree the vessel's departure and arrival locations and dates
from the independent third party and United States importer reports to
the information contained in the commercial document.
(6) Obtain separate listings of all tenders of Non-Sulfur-FRGAS,
and perform the following:
(i) Agree the total volume of tenders from the listings to the
gasoline inventory reconciliation analysis in Sec. 80.128(b).
(ii) Obtain a separate listing of the tenders under this paragraph
(h)(6) where the gasoline is loaded onto a marine vessel. Select a
sample from this listing in accordance with the guidelines in
Sec. 80.127, and obtain a commercial document of general circulation
that lists vessel arrivals and departures, and that includes the port
and date of departure and the ports and dates where the gasoline was
off loaded for the selected vessels. Determine and report as a finding
the country where the gasoline was off loaded for each vessel selected.
(7) In order to complete the requirements of this paragraph (h) an
auditor must:
(i) Be independent of the foreign refiner;
(ii) Be licensed as a Certified Public Accountant in the United
States and a citizen of the United States, or be approved in advance by
EPA based on a demonstration of ability to perform the procedures
required in Sec. 80.125 through 130 and this paragraph (h); and
(iii) Sign a commitment that contains the provisions specified in
paragraph (i) of this section with regard to activities and documents
relevant to compliance with the requirements of Sec. 80.125 through
80.130 and this paragraph (h).
(i) Foreign refiner commitments. Any foreign refiner must commit to
and comply with the provisions contained in this paragraph (i) as a
condition to being assigned an individual refinery sulfur baseline.
(1) Any United States Environmental Protection Agency inspector or
auditor must be given full, complete and immediate access to conduct
inspections and audits of the foreign refinery.
(i) Inspections and audits may be either announced in advance by
EPA, or unannounced.
(ii) Access must be provided to any location where:
(A) Gasoline is produced;
(B) Documents related to refinery operations are kept;
(C) Gasoline or blendstock samples are tested or stored; and
(D) Sulfur-FRGAS is stored or transported between the foreign
refinery and the United States, including storage tanks, vessels and
pipelines.
(iii) Inspections and audits may be by EPA employees or contractors
to EPA.
(iv) Any documents requested that are related to matters covered by
inspections and audits must be provided to an EPA inspector or auditor
on request.
(v) Inspections and audits by EPA may include review and copying of
any documents related to:
(A) Refinery baseline establishment, including the volume and
sulfur content, and transfers of title or custody, of any gasoline or
blendstocks, whether Sulfur-FRGAS or Non-Sulfur-FRGAS, produced at the
foreign refinery during the period January 1, 1997 through the date of
the refinery baseline petition or through the date of the inspection or
audit if a baseline petition has not been approved, and any work papers
related to refinery baseline establishment;
(B) The volume and sulfur content of Sulfur-FRGAS;
(C) The proper classification of gasoline as being Sulfur-FRGAS or
as not being Sulfur-FRGAS, or as Certified Sulfur-FRGAS or as Non-
Certified Sulfur-FRGAS;
(D) Transfers of title or custody to Sulfur-FRGAS;
(E) Sampling and testing of Sulfur-FRGAS;
(F) Worked performed and reports prepared by independent third
parties and by independent auditors under the requirements of this
section and Sec. 80.415, including work papers; and
(G) Reports prepared for submission to EPA, and any work papers
related to such reports.
(vi) Inspections and audits by EPA may include taking samples of
gasoline or blendstock, and interviewing employees.
(vii) Any employee of the foreign refiner must be made available
for interview by the EPA inspector or auditor, on request, within a
reasonable time period.
(viii) English language translations of any documents must be
provided to an EPA inspector or auditor, on request, within 10 working
days.
(ix) English language interpreters must be provided to accompany
EPA inspectors and auditors, on request.
(2) An agent for service of process located in the District of
Columbia must be named, and service on this agent constitutes service
on the foreign refiner or any employee of the foreign refiner for any
action by EPA or otherwise by the United States related to the
requirements of this subpart.
(3) The forum for any civil or criminal enforcement action related
to the provisions of this section for violations of the Clean Air Act
or regulations promulgated thereunder are governed by the Clean Air
Act, including the EPA administrative forum where allowed under the
Clean Air Act.
(4) United States substantive and procedural laws apply to any
civil or criminal enforcement action against the foreign refiner or any
employee of the foreign refiner related to the provisions of this
section.
(5) Submitting a petition for an individual refinery sulfur
baseline, producing and exporting gasoline under an individual refinery
sulfur baseline, and all other actions to comply with the requirements
of this subpart relating to the establishment and use of an individual
refinery sulfur baseline constitute actions or activities that satisfy
the provisions of 28 U.S.C. 1605(a)(2), but solely with respect to
actions instituted against the foreign refiner, its agents and
employees in any court or other tribunal in the United States for
conduct that violates the requirements applicable to the foreign
refiner under this subpart, including conduct that violates 18 U.S.C.
1001 and Clean Air Act section 113(c)(2).
(6) The foreign refiner, or its agents or employees, must not
detain or impose civil or criminal remedies against EPA inspectors or
auditors, whether EPA employees or EPA contractors, for actions
performed within the scope of EPA employment related to the provisions
of this section.
(7) The commitment required by this paragraph (i) must be signed by
the owner or president of the foreign refiner business.
(8) In any case where Sulfur-FRGAS produced at a foreign refinery
is stored or transported by another company between the refinery and
the vessel that transports the Sulfur-FRGAS to the United States, the
foreign refiner must obtain from each such other company a commitment
that meets the requirements specified in paragraphs (i)(1) through (7)
of this section, and these commitments must be included in the foreign
refiner's baseline petition.
(j) Sovereign immunity. By submitting a petition for an individual
foreign refinery baseline under this section, or by producing and
exporting gasoline to the United States under an individual refinery
sulfur baseline under this section, the foreign refiner, its agents
[[Page 26124]]
and employees, without exception, become subject to the full operation
of the administrative and judicial enforcement powers and provisions of
the United States without limitation based on sovereign immunity, with
respect to actions instituted against the foreign refiner, its agents
and employees in any court or other tribunal in the United States for
conduct that violates the requirements applicable to the foreign
refiner under this subpart, including conduct that violates 18 U.S.C.
1001 and Clean Air Act section 113(c)(2).
(k) Bond posting. Any foreign refiner must meet the requirements of
this paragraph (k) as a condition to being assigned an individual
refinery sulfur baseline.
(1) The foreign refiner must post a bond of the amount calculated
using the following equation:
Bond = G x $0.01
Where:
Bond = Amount of the bond in U. S. dollars.
G = The largest volume of gasoline produced at the foreign refinery and
exported to the United States, in gallons, during a single calendar
year among the most recent of the following calendar years, up to a
maximum of five calendar years: the calendar year immediately preceding
the date the baseline petition is submitted, the calendar year the
baseline petition is submitted, and each succeeding calendar year.
(2) Bonds must be posted by:
(i) Paying the amount of the bond to the Treasurer of the United
States;
(ii) Obtaining a bond in the proper amount from a third party
surety agent that is payable to satisfy United States administrative or
judicial judgments against the foreign refiner, provided EPA agrees in
advance as to the third party and the nature of the surety agreement;
or
(iii) An alternative commitment that results in assets of an
appropriate liquidity and value being readily available to the United
States, provided EPA agrees in advance as to the alternative
commitment.
(3) If the bond amount for a foreign refinery increases the foreign
refiner must increase the bond to cover the shortfall within 90 days of
the date the bond amount changes. If the bond amount decreases, the
foreign refiner may reduce the amount of the bond beginning 90 days
after the date the bond amount changes.
(4) Bonds posted under this paragraph (k) must be used to satisfy
any judicial judgment that results from an administrative or judicial
enforcement action for conduct in violation of this subpart, including
where such conduct violates 18 U.S.C. 1001 and Clean Air Act section
113(c)(2).
(5) On any occasion a foreign refiner bond is used to satisfy any
judgment, the foreign refiner must increase the bond to cover the
amount used within 90 days of the date the bond is used.
(l) [Reserved]
(m) English language reports. Any report or other document
submitted to EPA by an foreign refiner must be in English language, or
must include an English language translation.
(n) Prohibitions. (1) No person may combine Certified Sulfur-FRGAS
with any Non-Certified Sulfur-FRGAS or Non-Sulfur-FRGAS, and no person
may combine Certified Sulfur-FRGAS with any Certified Sulfur-FRGAS
produced at a different refinery, except as provided in paragraph (e)
of this section.
(2) No foreign refiner or other person may cause another person to
commit an action prohibited in paragraph (n)(1) of this section, or
that otherwise violates the requirements of this section.
(o) United States importer requirements. Any United States importer
must meet the following requirements:
(1) Each batch of imported gasoline must be classified by the
importer as being Sulfur-FRGAS or as Non-Sulfur-FRGAS, and each batch
classified as Sulfur-FRGAS must be further classified as Certified
Sulfur-FRGAS or as Non-certified Sulfur-FRGAS.
(2) Gasoline must be classified as Certified Sulfur-FRGAS or as
Non-Certified Sulfur-FRGAS according to the designation by the foreign
refiner if this designation is supported by product transfer documents
prepared by the foreign refiner as required in paragraph (d) of this
section, unless the gasoline is classified as Non-Certified Sulfur-
FRGAS under paragraph (g) of this section.
(3) For each gasoline batch classified as Sulfur-FRGAS, any United
States importer must perform the following procedures:
(i) In the case of both Certified and Non-Certified Sulfur-FRGAS,
have an independent third party:
(A) Determine the volume of gasoline in the vessel;
(B) Use the foreign refiner's Sulfur-FRGAS certification to
determine the name and EPA-assigned registration number of the foreign
refinery that produced the Sulfur-FRGAS;
(C) Determine the name and country of registration of the vessel
used to transport the Sulfur-FRGAS to the United States; and
(D) Determine the date and time the vessel arrives at the United
States port of entry.
(ii) In the case of Certified Sulfur-FRGAS, have an independent
third party:
(A) Collect a representative sample from each vessel compartment
subsequent to the vessel's arrival at the United States port of entry
and prior to off loading any gasoline from the vessel;
(B) Prepare a volume-weighted vessel composite sample from the
compartment samples; and
(C) Determine the sulfur value using the methodologies specified in
Sec. 80.330, by:
(1) The third party analyzing the sample; or
(2) The third party observing the importer analyze the sample.
(4) Any importer must submit reports within thirty days following
the date any vessel transporting Sulfur-FRGAS arrives at the United
States port of entry:
(i) To the Administrator containing the information determined
under paragraph (o)(3) of this section; and
(ii) To the foreign refiner containing the information determined
under paragraph (o)(3)(ii) of this section.
(5) Any United States importer must meet the requirements specified
in Sec. 80.195 for any imported gasoline that is not classified as
Certified Sulfur-FRGAS under paragraph (o)(2) of this section.
(p) [Reserved]
(q) Withdrawal or suspension of a foreign refinery's baseline EPA
may withdraw or suspend a baseline that has been assigned to a foreign
refinery where:
(1) A foreign refiner fails to meet any requirement of this
section;
(2) A foreign government fails to allow EPA inspections as provided
in paragraph (i)(1) of this section;
(3) A foreign refiner asserts a claim of, or a right to claim,
sovereign immunity in an action to enforce the requirements in this
subpart; or
(4) A foreign refiner fails to pay a civil or criminal penalty that
is not satisfied using the foreign refiner bond specified in paragraph
(k) of this section.
(r) Any refiner whose Sulfur-FRGAS is transported into the United
States by truck may petition EPA to use alternative procedures to meet
the requirements for certification under paragraph (d)(5) of this
section, load port and port of entry sampling and testing under
paragraphs (f) and (g) of this section, attest under paragraph (h) of
this section and importer testing under paragraph (o)(3) of this
section.
[[Page 26125]]
These alternative procedures must ensure Certified Sulfur-FRGAS remains
segregated from Non-Certified Sulfur-FRGAS and from Non-Sulfur-FRGAS
until it is imported into the United States. The petition will be
evaluated based on whether it adequately addresses the following:
(1) Provisions for monitoring pipeline shipments, if applicable,
from the refinery, that ensure segregation of Certified Sulfur-FRGAS
from that refinery from all other gasoline.
(2) Contracts with any terminals and/or pipelines that receive and/
or transport Certified Sulfur-FRGAS, that prohibit the commingling of
Certified Sulfur-FRGAS with any of the following:
(i) Other Certified Sulfur-FRGAS from other refineries.
(ii) All Non-Certified Sulfur-FRGAS.
(iii) All Non-Sulfur-FRGAS.
(3) Procedures for obtaining and reviewing truck loading records
and United States import documents for Certified Sulfur-FRGAS to ensure
that such gasoline is only loaded into trucks making deliveries to the
United States.
(4) Attest procedures to be conducted annually by an independent
third party that review loading records and import documents based on
volume reconciliation, or other criteria, to confirm that all Certified
Sulfur-FRGAS remains segregated throughout the distribution system and
is only loaded into trucks for import into the United States.
(5) The petition required by this section must be submitted to EPA
along with the application for small refiner status and individual
refinery sulfur baseline and standards under Sec. 80.235 and this
section.
(s) Additional requirements for petitions, reports and
certificates. Any petition for a refinery baseline under paragraph (b)
of this section, any alternative procedures under paragraph (r) of this
section, any report or other submission required by paragraphs (c),
(f)(2), or (i) of this section, and any certification under paragraph
(d)(3) of this section must be:
(1) Submitted in accordance with procedures specified by the
Administrator, including use of any forms that may specified by the
Administrator.
(2) Be signed by the president or owner of the foreign refiner
company, or by that person's immediate designee, and must contain the
following declaration:
I hereby certify: (1) that I have actual authority to sign on
behalf of and to bind [insert name of foreign refiner] with regard
to all statements contained herein; (2) that I am aware that the
information contained herein is being certified, or submitted to the
United States Environmental Protection Agency, under the
requirements of 40 CFR Part 80, subpart H and that the information
is material for determining compliance under these regulations; and
(3) that I have read and understand the information being certified
or submitted, and this information is true, complete and correct to
the best of my knowledge and belief after I have taken reasonable
and appropriate steps to verify the accuracy thereof.
I affirm that I have read and understand the provisions of 40
CFR Part 80, subpart H, including 40 CFR Sec. 80.410 [insert name of
foreign refiner]. Pursuant to Clean Air Act section 113(c) and Title
18, United States Code, section 1001, the penalty for furnishing
false, incomplete or misleading information in this certification or
submission is a fine of up to $10,000, and/or imprisonment for up to
five years.
Attest Engagements
Sec. 80.415 What are the attest engagement requirements for gasoline
sulfur compliance?
Refiners and importers, for each annual averaging period, must
arrange to have an attest engagement performed of the underlying
documentation that forms the basis of any report required under this
section. The attest engagement must comply with the procedures and
requirements that apply to refiners and importers under Secs. 80.125
through 80.130, and must be submitted to the Administrator of EPA by
May 30 of each year.
PART 85--CONTROL OF AIR POLLUTION FROM MOBILE SOURCES
5. The authority citation for part 85 continues to read as follows:
Authority: 42 U.S.C. 7521, 7522, 7524, 7525, 7541, 7542,
7601(a).
6. Section 85.1515 is amended by redesignating the existing
paragraph (c) as paragraph (c)(1) and adding new paragraphs (c)(2),
(c)(3), (c)(4) and (c)(5) to read as follows:
Sec. 85.1515 Emission standards and test procedures applicable to
imported nonconforming motor vehicles and motor vehicle engines.
* * * * *
(c)(1) * * *
(2) The provisions of paragraph (c)(1) of this section
notwithstanding, nonconforming light duty vehicles or light light-duty
trucks (LDV/LLDTs) modified in model years 2004, 2005 or 2006 must meet
the interim FTP exhaust and evaporative emission standards for light
duty vehicles and light light-duty trucks specified in 40 CFR 86.1811-
04(l) and 86.1811-04(e)(5). Nonconforming LDT3s and LDT4s (HLDTs)
modified in model years 2004 through 2008 must meet the interim non-
Tier 2 FTP exhaust and evaporative standards for HLDTs specified in 40
CFR 86.1811-04(l) and 86.1811-04(e)(5). Optionally, independent
commercial importers may elect to meet the Tier 2 FTP exhaust and
evaporative emission standards set forth in 40 CFR 86.1811-04(c) and
(e) during those years. ICIs are exempt from the Tier 2 and the interim
non-Tier 2 phase-in percentage requirements described in 40 CFR
86.1811-04.
(3) Nonconforming light duty vehicles and light light-duty trucks
(LDV/LLDTs) modified in model years 2007 or later must meet the exhaust
and evaporative emission requirements set forth for all 2007 and later
model year LDV/LLDTs in 40 CFR 86.1811-04.
(4) Nonconforming heavy light-duty trucks (HLDTs) modified in model
years 2009 or later must meet the exhaust and evaporative emission
requirements set forth for all 2009 and later model year HLDTs in 40
CFR 86.1811-04.
(5) The requirements of 40 CFR 86.1811-04 related to fleet average
NO<INF>X</INF> standards and requirements to comply with such standards
do not apply to vehicles modified under this subpart.
* * * * *
PART 86--CONTROL OF EMISSIONS FROM NEW AND IN-USE HIGHWAY VEHICLES
AND ENGINES
7. The authority citation for part 86 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
8. Section 86.1 is amended by revising the entry for ``California
Regulatory Requirements Applicable to the National Low Emission Vehicle
Program, October, 1996'', and by adding an entry in alphabetical order
in the table in paragraph (b)(4) to read as follows:
Sec. 86.1 Reference materials.
* * * * *
(b) * * *
(4) * * *
[[Page 26126]]
----------------------------------------------------------------------------------------------------------------
Document No. and name 40 CFR part 86 reference
----------------------------------------------------------------------------------------------------------------
* * * * * *
*
California Regulatory Requirements Applicable to the 86.1830-01; 86.1806-01; 86.1810-01; 86.1811-04; 86.1844-
``LEV II'' Program, including 01.
1. Amendments to California Exhaust and Evaporative
Emission Standards and Test Procedures for
Passenger Cars, Light-duty Trucks and Medium-duty
Vehicles and Amendments to California Motor
Vehicle Certification, Assembly-line and In-use
Test Requirements ``CAP 2000''.
2. California Zero-Emission and Hybrid Electric
Vehicle Exhaust Emission Standards and Test
Procedures for 2003 and Subsequent Model Passenger
Cars, Light-duty Trucks and Medium-duty Vehicles.
3. California Exhaust Emission Standards and Test
Procedures for 2001 and Subsequent Model Passenger
Cars, Light-duty Trucks and Medium-duty Vehicles.
4. California Non-Methane Organic Gas Test
Procedures.
5. California Evaporative Emission Standards and
Test Procedures for 2001 and Subsequent Model
Motor Vehicles.
6. California Refueling Emission Standards and Test
Procedures for 2001 and Subsequent Model Motor
Vehicles.
California Regulatory Requirements Applicable to the 86.113-004; 86.612-97; 86.1012-97; 86.1702-99; 86.1708-
National Low Emission Vehicle Program, October 1996. 99; 86.1709-99; 86.1717-99; 86.1735-99; 86.1771-99;
86.1775-99; 86.1776-99; 86.1777-99; Appendix XVI;
Appendix XVII.
----------------------------------------------------------------------------------------------------------------
* * * * *
Subpart B--Emission Regulations for 1997 and Later Model Year New
Light-duty Vehicles and New Light-duty Trucks; Test Procedures
9. Section 86.113-04 is added to read as follows:
Sec. 86.113-04 Fuel Specifications.
This section includes text that specifies requirements that differ
from Sec. 86.113-94. Where a paragraph in Sec. 86.113-94 is identical
and applicable to this section, this will be indicated by specifying
the corresponding paragraph and the statement ``[Reserved]. For
guidance see Sec. 86.113-94.''
(a) Gasoline fuel. (1) Gasoline having the following specifications
will be used by the Administrator in exhaust and evaporative emission
testing of petroleum-fueled Otto-cycle vehicles. Gasoline having the
following specification or substantially equivalent specifications
Approved by the Administrator, must be used by the manufacturer in
exhaust and evaporative testing except that octane specifications do
not apply:
----------------------------------------------------------------------------------------------------------------
Item ASTM test method No. Value
----------------------------------------------------------------------------------------------------------------
Octane, Research, Min................... D2699 93.
Sensitivity, Min........................ ........................ .7.5
Lead (organic), maximum: g/U.S. gal. (g/ D3237 0.050 (0.013).
liter).
Distillation Range...................... D86 ............................................
IBP \1\: deg. F (deg. C)............ ........................ 75-95 (23.9-35).
10 pct. point: deg.F (deg.C)........ ........................ 120-135 (48.9-57.2).
50 pct. point: deg.F. (deg.C)....... ........................ 200-230 (93.3-110).
90 pct. point: deg.F (deg.C)........ ........................ 300-325 (148.9-162.8).
EP, max: deg.F (deg.C)D86........... ........................ 415 (212.8).
Sulfur, weight pct...................... D1266 0.003-0.008.
Phosphorous, max. g/U.S. gal (g/liter).. D3231 0.005 (0.0013).
RVP <SUP>2</SUP> <SUP>3</SUP>................................. D3231 8.7-9.2 (60.0-63.4).
Hydrocarbon composition................. D1319 ............................................
Olefins, max. pct................... ........................ 10.
Aromatics, max, pct................. ........................ 35.
Saturates........................... ........................ Remainder.
----------------------------------------------------------------------------------------------------------------
\1\ For testing at altitudes above 1,219 m (4000 feet), the specified range is 75-105 deg. F (23.9-40.6 deg. C).
\2\ For testing which is unrelated to evaporative emission control, the specified range is 8.0-9.2 psi (55.2-
63.4 kPa).
\3\ For testing at altitudes above 1,219 m (4000 feet), the specified range is 7.6-8.0 psi (52-55 kPa).
(2) For light-duty vehicles and light-duty trucks certified for 50
state sale, ``California Phase 2'' gasoline having the specifications
listed in the table in this section may be used in exhaust emission
testing as an option to the specifications in paragraph (a)(1) of this
section. If a manufacturer elects to utilize this option, exhaust
emission testing must be conducted by the manufacturer with gasoline
having the specifications listed in the table in this paragraph (a)(2)
and the Administrator must also conduct exhaust emission testing with
gasoline having the specifications listed in the table in this
paragraph (a)(2), except that the Administrator may use or require the
use of test fuel meeting the specifications in paragraph (a)(1) of this
section for selective enforcement auditing and in-use testing. All fuel
property test methods for this fuel are contained in Chapter 4 of the
California
[[Page 26127]]
Regulatory Requirements Applicable to the National Low Emission Vehicle
Program (October, 1996). These requirements are incorporated by
reference (see Sec. 86.1). The table follows:
------------------------------------------------------------------------
Fuel property Limit
------------------------------------------------------------------------
Octane, (R+M)/2 (min).................. 91.
Sensitivity (min)...................... 7.5.
Lead, g/gal (max) (No lead added)...... 0-0.01.
Distillation Range, deg.F
10 pct. point,......................... 130-150.
50 pct. point,......................... 200-210.
90 pct. point,......................... 290-300.
EP, maximum............................ 390.
Residue, vol% (max).................... 2.0.
Sulfur, ppm by wt...................... 30-40.
Phosphorous, g/gal (max)............... 0.005.
RVP, psi............................... 6.7-7.0.
Olefins, vol %......................... 4.0-6.0.
Total Aromatic Hydrocarbons (vol%)..... 22-25.
Benzene, vol %......................... 0.8-1.0.
Multi-Substituted Alkyl Aromatic 12-14.
Hydrocarbons, vol%.
MTBE, vol%............................. 10.8-11.2.
Additives.............................. See Chapter 4 of the California
Regulatory Requirements
Applicable to the National Low
Emission Vehicle Program
(October, 1996). These
procedures are incorporated by
reference (see Sec. 86.1).
Copper Corrosion....................... No. 1.
Gum, Washed, mg/100 ml (max)........... 3.0.
Oxidation Stability, minutes (min).... 1000.
Specific Gravity....................... No limit; report to purchaser
required.
Heat of Combustion..................... No limit; report to purchaser
required.
Carbon, wt%............................ No limit; report to purchaser
required.
Hydrogen, wt%.......................... No limit; report to purchaser
required.
------------------------------------------------------------------------
(3)(i) Unless otherwise approved by the Administrator, unleaded
gasoline representative of commercial gasoline that will be generally
available through retail outlets must be used in service accumulation.
Unless otherwise approved by the Administrator, where the vehicle is to
be used for evaporative emission durability demonstration, such fuel
must contain ethanol as required by Sec. 86.1824-01(a)(2)(iii). Leaded
gasoline must not be used in service accumulation.
(ii) The octane rating of the gasoline used must be no higher than
1.0 Research octane number above the minimum recommended by the
manufacturer and have a minimum sensitivity of 7.5 octane numbers,
where sensitivity is defined as the Research octane number minus the
Motor octane number.
(iii) The Reid Vapor Pressure of the gasoline used must be
characteristic of the motor fuel used during the season in which the
service accumulation takes place.
(4) The specification range of the gasoline to be used under
paragraph (a) of this section must be reported in accordance with
Secs. 86.094-21(b)(3) and 86.1844-01.
(b) through (g) ``[Reserved]. For guidance see Sec. 86.113-94.''
6. Section 86.129-00 is amended by adding a new paragraph
(f)(1)(ii)(C) to read as follows:
Sec. 86.129-00 Road load power, test weight, and inertia weight class
determination.
* * * * *
(f) * * *
(1) * * *
(ii) * * *
(C) Regardless of other requirements in this section relating to
the testing of heavy light duty trucks, for Tier 2 heavy light duty
trucks, the test weight basis for FTP and SFTP testing (both US06 and
SC03) is the vehicle curb weight plus 300 pounds.
* * * * *
Subpart C--Emission Regulations for 1994 and Later Model Year
Gasoline-Fueled New Light-duty Vehicles and New Light-duty Trucks;
Cold Temperature Test Procedures
10. Section 86.213-04 is added to read as follows:
Sec. 86.213-04 Fuel specifications.
Gasoline having the following specifications will be used by the
Administrator. Gasoline having the specifications set forth in the
table in this section may be used by the manufacturer except that the
octane specification does not apply. In lieu of using gasoline having
these specifications, the manufacturer may, for certification testing,
use gasoline having the specifications specified in Sec. 86.113-04
provided the cold CO emissions are not decreased. Documentation showing
that cold CO emissions are not decreased must be maintained by the
manufacturer and must be made available to the Administrator upon
request. The table listing the cold CO fuel specifications described in
the text in this section follows:
[[Page 26128]]
Table--Cold CO Fuel Specifications
----------------------------------------------------------------------------------------------------------------
Cold CO low octane value or
Item ------------------------------------------- Cold CO high octane \1\ value or
ASTM test Range range
----------------------------------------------------------------------------------------------------------------
(RON+MON)/2, min............... D2699 87.8<plus-minus>.3..... 92.3<plus-minus>0.5.
Sensitivity, min............... D2699 7.5.................... 7.5.
Distillation range:
IBP, deg.F................. D86 76-96.................. 76-96.
10% point, deg.F........... D86 98-118................. 105-125.
50% point, deg.F........... D86 179-214................ 195-225.
90% point, deg.F........... D86 316-346................ 316-346.
EP, max, deg.F............. D86 413.................... 413.
Sulfur, wt. %.................. D3120 0.003-0.008............ 0.003-0.008.
Phosphorous, g/U.S gal, max.... D3231 0.005.................. 0.005.
Lead, g/gal, max............... ................ 0.01................... 0.01.
RVP, psi....................... D4953 11.5<plus-minus>.3..... 11.5<plus-minus>.3.
Hydrocarbon composition........ D1319
Olefins, vol. pct.......... ................ 12.5<plus-minus>5.0.... 10.0<plus-minus>5.0.
Aromatics, vol. pct........ ................ 26.4<plus-minus>4.0.... 32.0<plus-minus>4.0.
Saturates.................. ................ Remainder.............. Remainder.
----------------------------------------------------------------------------------------------------------------
\1\ Gasoline having these specifications may be used for vehicles which are designed for the use of high-octane
premium fuel.
Subpart R--General Provisions for the Voluntary National Low
Emission Vehicle Program for Light-duty Vehicles and Light-duty
Trucks
11. Section 86.1701-99 is amended by adding paragraph (f) to read
as follows:
Sec. 86.1701-99 General applicability.
* * * * *
(f) The provisions of this subpart are not applicable to 2004 or
later model year vehicles, except where specific references to
provisions of this subpart are made in conjunction with provisions
applicable to such vehicles.
Subpart S--General Compliance Provisions for Control of Air
Pollution From New and In-use Light-duty Vehicles and Light-duty
Trucks
12. Section 86.1801-01 is amended by revising the first sentence of
paragraph (a) and the first sentence of paragraph (e) and adding
paragraphs (f) and (g) to read as follows:
Sec. 86.1801-01 Applicability.
(a) Except as otherwise indicated, the provisions of this subpart
apply to new 2001 and later model year Otto-cycle and diesel cycle
light duty vehicles and light duty trucks, including alternative
fueled, hybrid electric, and zero emission vehicles.* * *
* * * * *
(e) National Low Emission Vehicle Program for light-duty vehicles
and light light-duty trucks. A manufacturer may elect to certify 2001-
2003 model year light duty vehicles and light light-duty trucks (LDV/
LLDTs) to the provisions of the National Low Emission Vehicle Program
contained in Subpart R of this part. * * *
(f) ``Early'' Tier 2 LDV/Ts. Any LDV/LLDT which is certified to
Tier 2 FTP exhaust standards prior to the 2004 model year, or any HLDT
which is certified to the Tier 2 FTP exhaust standards prior to the
2008 model year, to utilize alternate phase-in schedules and/or for
purposes of generating and banking NO<INF>X</INF> credits, must comply
with all the exhaust emission requirements applicable to Tier 2 LDV/Ts
under this subpart.
(g) Interim non-Tier 2 LDV/Ts. Model year 2004-2008 LDV/Ts, that do
not comply with the Tier 2 FTP exhaust emission requirements (interim
non-Tier 2 LDV/Ts) as permitted under the phase-in requirements of
Sec. 86.1811-04(k) must comply with all interim non-Tier 2 exhaust
emission requirements contained in this subpart, including FTP exhaust
emission requirements for all interim non-Tier 2 LDV/Ts found at
Sec. 86.1811-04(l). Separate emission requirements are provided for
interim non-Tier 2 LDV/LLDTs and interim non-Tier 2 HLDTs.
13. Section 86.1803-01 is amended by adding the following
definitions in alphabetical order to read as follows:
Sec. 86.1803-01 Definitions.
* * * * *
Bin or emission bin means a set of emission standards applicable to
exhaust pollutants measured on the Federal Test Procedure (FTP). A bin
is equivalent to a horizontal row of FTP standards in the various
charts shown in this subpart. Manufacturers are generally free to
choose the bin of standards that will apply to a certain test group of
vehicles, provided that on a sales weighted average of those bins, all
of their vehicles meet a specified fleet average standard for a
particular pollutant.
* * * * *
CalLEV II or California LEV II refers to California's second phase
of its low emission vehicle (LEV) program. This program was adopted at
the hearing of the California Air Resources Board held on November 5,
1998.
* * * * *
Fleet average NO<INF>X</INF> standard means, for light-duty
vehicles and light-duty trucks, a NO<INF>X</INF> standard imposed over
an individual manufacturer's total U.S. sales (or a fraction of total
U.S. sales during phase-in years), as ``U.S. sales'' is defined in this
subpart, of light duty vehicles and trucks of a given model year.
Manufacturers determine their compliance with such a standard by
averaging, on a sales weighted basis, the individual NO<INF>X</INF>
standards they choose for the fleet of light duty vehicles and trucks
they sell of that model year.
* * * * *
Interim non-Tier 2 vehicle or interim non-Tier 2 LDV/T or interim
vehicle means any 2004 or later model year light duty vehicle or light
duty truck not certified to Tier 2 FTP exhaust emission standards
during the Tier 2 phase-in period.
* * * * *
LDV/T means light duty vehicles and light duty trucks collectively,
without regard to category.
* * * * *
Non-methane organic gases (NMOG) means the sum of oxygenated and
non-oxygenated hydrocarbons contained in a gas sample as measured in
accordance with the California Non-Methane Organic Gas Test Procedures.
These
[[Page 26129]]
requirements are incorporated by reference (see Sec. 86.1).
* * * * *
Periodically regenerating trap oxidizer system means a trap
oxidizer that utilizes, during normal driving conditions, an automated
regeneration mode for cleaning the trap, the operation of which can be
easily detected.
* * * * *
Point of first sale means the location where the completed light
duty vehicle or light duty truck is first purchased. This term is
synonymous with final product purchase location. The point of first
sale may be a retail customer, dealer, distributor, fleet operator,
broker, secondary manufacturer, or any other entity which purchases a
vehicle from a manufacturer. In cases where the end user purchases the
completed vehicle directly from the manufacturer, the end user is the
point of first sale.
* * * * *
Round, rounded or rounding means, unless otherwise specified, that
numbers will be rounded according to ASTM-E29-93a, which is
incorporated by reference in this part pursuant to Sec. 86.1.
* * * * *
Tier 2 standards means those FTP exhaust emission standards
applicable to new light-duty vehicles and light light duty trucks and
that begin a phase-in in the 2004 model year, and those exhaust
emission standards applicable to heavy light duty trucks that begin a
phase-in in the 2008 model year. These standards are found in
Sec. 86.1811-04.
Tier 2 vehicle or Tier 2 LDV/T means any light duty vehicle or
light duty truck, including HEVs and ZEVs, of the 2004 or later model
year certified to comply with the Tier 2 FTP exhaust standards
contained in Sec. 86.1811-04. The term Tier 2 vehicle also includes any
light duty vehicle or truck, of any model year, which is certified to
Tier 2 FTP exhaust standards for purposes of generating or banking
early NO<INF>X</INF> credits for averaging under Tier 2 requirements as
allowed in this subpart.
* * * * *
U.S. sales means, unless otherwise specified, sales in any state of
the United States except for California or a state that has adopted
California motor vehicle standards for that model year pursuant to
section 177 of the Clean Air Act. This definition applies only to those
regulatory requirements addressing Tier 2 and interim non-Tier 2 LDV/
Ts.
* * * * *
14. Section 86.1804-01 is amended by adding the following acronyms
and abbreviations, in alphabetical order, to read as follows:
Sec. 86.1804-01 Acronyms and abbreviations.
* * * * *
HCHO--Formaldehyde.
* * * * *
HEV--Hybrid electric vehicle.
* * * * *
HLDT--Heavy light duty truck. Includes only those trucks over
6000 pounds GVWR (LDT3s and LDT4s).
* * * * *
LDV/LLDT--Light duty vehicles and light light-duty trucks.
Includes only those trucks rated at 6000 pounds GVWR or less (LDT1s
and LDT2s).
LDV/T--Light duty vehicles and light duty trucks. This term is
used collectively to include, or to show that a provision applies
to, all light duty vehicles and all categories of light duty trucks,
i.e.
LDT1, LDT2, LDT3 and LDT4.
LEV--Low Emission Vehicle.
* * * * *
NLEV--Refers to the National Low Emission Vehicle Program.
Regulations governing this program are found at subpart R of this
part.
* * * * *
NMOG--Non-methane organic gases.
* * * * *
RAF--Reactivity adjustment factor.
* * * * *
SULEV--Super Ultra Low Emission Vehicle.
* * * * *
TLEV--Transitional Low Emission Vehicle.
* * * * *
ULEV--Ultra Low Emission Vehicle.
* * * * *
ZEV--Zero Emission Vehicle.
* * * * *
15. Section 86.1805-04 is added to read as follows:
Sec. 86.1805-04 Useful life.
(a) Except as required under paragraph (b) of this section or
permitted under paragraphs (d) and (e) of this section, the full useful
life for all LDVs, LDT1s and LDT2s is a period of use of 10 years or
120,000 miles, whichever occurs first. For all HLDTs, full useful life
is a period of 11 years or 120,000 miles, whichever occurs first. This
full useful life applies to exhaust, evaporative and refueling emission
requirements except for standards which are specified to only be
applicable at the time of certification.
(b) Manufacturers may elect to optionally certify a test group to
the Tier 2 exhaust emission standards for 150,000 miles to gain
additional NO<INF>X</INF> credits, as permitted in Sec. 86.1860-04(g).
In such cases, useful life is a period of use of 15 years or 150,000
miles, whichever occurs first, for all exhaust, evaporative and
refueling emission requirements except for cold CO standards and
standards which are applicable only at the time of certification.
(c) Where intermediate useful life exhaust emission standards are
applicable, such standards are applicable for five years or 50,000
miles, whichever occurs first.
(d)(1) Manufacturers may petition the Administrator to provide
alternative useful life periods for idle CO requirements for light duty
trucks when they believe that the useful life period described in this
section is significantly unrepresentative for one or more test groups
(either too long or too short). This petition must include the full
rationale behind the request, together with any supporting data and
other evidence. Based on this or other information, the Administrator
may assign an alternative useful life period. Any petition should be
submitted in a timely manner to allow adequate time for a thorough
evaluation.
(2) Where cold CO standards are applicable, the useful life
requirement for compliance with the cold CO standard only, is 5 years
or 50,000 miles whichever occurs first.
(e) Where LDVs, LDT1s and LDT2s of the 2003 or earlier model years
are certified to Tier 2 exhaust emission standards for purposes of
generating early NO<INF>X</INF> credits, manufacturers may certify
those vehicles to full useful lives of 100,000 miles in lieu of the
otherwise required 120,000 mile full useful lives, as provided under
Sec. 86.1861-04(c)(4).
16. Section 86.1806-01 is amended by adding paragraph (b)(8) to
read as follows:
Sec. 86.1806-01 On-board diagnostics.
* * * * *
(b)* * *
(8) For Tier 2 and interim non-Tier 2 hybrid electric vehicles
(HEVs) only. Unless added to HEVs in compliance with other requirements
of this section, or unless otherwise approved by the Administrator:
(i) The manufacturer must equip each HEV with a maintenance
indicator consisting of a light that must activate automatically by
illuminating the first time the minimum performance level is observed
for each battery system component. Possible battery system components
requiring monitoring are: battery water level, temperature control,
pressure control, and other parameters critical for determining battery
condition.
(ii) The manufacturer must equip ``off-vehicle charge capable
HEVs'' with a useful life indicator for the battery
[[Page 26130]]
system consisting of a light that must illuminate the first time the
battery system is unable to achieve an all-electric operating range
(starting from a full state-of-charge) which is at least 75 percent of
the range determined for the vehicle in the Urban Driving Schedule
portion of the All-Electric Range Test (see the California Zero-
Emission and Hybrid Electric Vehicle Exhaust Emission Standards and
Test Procedures for 2003 and Subsequent Model Year Passenger Cars,
Light-Duty Trucks and Medium Duty Vehicles. These requirements are
incorporated by reference (see Sec. 86.1)
(iii) The manufacturer must equip each HEV with a separate odometer
or other device subject to the approval of the Administrator that can
accurately measure the mileage accumulation on the engines used in
these vehicles.
* * * * *
17. Section 86.1807-01 is amended by revising paragraph (a)(3)(vi)
to read as follows:
Sec. 86.1807-01 Vehicle labeling.
(a) * * *
(3) * * *
(vi) The exhaust emission standards to which the test group is
certified, and for test groups having different in-use standards, the
corresponding exhaust emission standards that the test group must meet
in use. In lieu of this requirement, manufacturers may use the
standardized test group name designated by EPA;
* * * * *
18. Section 86.1809-01 is amended by adding paragraph (e) to read
as follows:
Sec. 86.1809-01 Prohibition of defeat devices.
* * * * *
(e) For each test group of Tier 2 and interim non-Tier 2 LDV/Ts,
the manufacturer must submit, with the Part II certification
application, an engineering evaluation demonstrating to the
satisfaction of the Administrator that a discontinuity in emissions of
non-methane organic gases, carbon monoxide, oxides of nitrogen and
formaldehyde measured on the Federal Test Procedure (subpart B of this
part) does not occur in the temperature range of 20 to 86 degrees F.
For diesel vehicles, the engineering evaluation must also include
particulate emissions.
19. Section 86.1810-01 is amended by adding two new sentences to
the end of the introductory text; by adding a new sentence to the end
of paragraph (i)(6); and by adding new paragraphs (i)(13), (i)(14), (o)
and (p) to read as follows:
Sec. 86.1810-01 General standards; increase in emissions; unsafe
conditions; waivers.
* * * For Tier 2 and interim non-Tier 2 LDV/Ts, this section also
applies to hybrid electric vehicles and zero emission vehicles. Unless
otherwise specified, requirements and provisions of this subpart
applicable to methanol fueled vehicles are also applicable to Tier 2
and interim non-Tier 2 ethanol fueled LDV/Ts.
* * * * *
(i) * * *
(6) * * * For Tier 2 and interim non-Tier 2 LDV/Ts, this provision
does not apply to enrichment that occurs upon cold start, warm-up
conditions and rapid-throttle motion conditions (``tip-in'' or ``tip-
out'' conditions).
* * * * *
(13) A/C-on specific calibrations. (i) For Tier 2 and interim non-
Tier 2 LDV/Ts, A/C-on specific calibrations (e.g. air to fuel ratio,
spark timing, and exhaust gas recirculation), may be used which differ
from A/C-off calibrations for given engine operating conditions (e.g.,
engine speed, manifold pressure, coolant temperature, air charge
temperature, and any other parameters).
(ii) Such calibrations must not unnecessarily reduce the
NMHC+NO<INF>X</INF> emission control effectiveness during A/C-on
operation when the vehicle is operated under conditions which may
reasonably be expected to be encountered during normal operation and
use.
(iii) If reductions in control system NMHC+NO<INF>X</INF>
effectiveness do occur as a result of such calibrations, the
manufacturer must, in the Application for Certification, specify the
circumstances under which such reductions do occur, and the reason for
the use of such calibrations resulting in such reductions in control
system effectiveness.
(iv) A/C-on specific ``open-loop'' or ``commanded enrichment'' air-
fuel enrichment strategies (as defined below), which differ from A/C-
off ``open-loop'' or ``commanded enrichment'' air-fuel enrichment
strategies, may not be used, with the following exceptions: Cold-start
and warm-up conditions, or, subject to Administrator approval,
conditions requiring the protection of the vehicle, occupants, engine,
or emission control hardware. Other than these exceptions, such
strategies which are invoked based on manifold pressure, engine speed,
throttle position, or other engine parameters must use the same engine
parameter criteria for the invoking of this air-fuel enrichment
strategy and the same degree of enrichment regardless of whether the A/
C is on or off. ``Open-loop'' or ``commanded'' air-fuel enrichment
strategy is defined as enrichment of the air to fuel ratio beyond
stoichiometry for the purposes of increasing engine power output and
the protection of engine or emissions control hardware. However,
``closed-loop biasing,'' defined as small changes in the air-fuel ratio
for the purposes of optimizing vehicle emissions or driveability, must
not be considered an ``open-loop'' or ``commanded'' air-fuel enrichment
strategy. In addition, ``transient'' air-fuel enrichment strategy (or
``tip-in'' and ``tip-out'' enrichment), defined as the temporary use of
an air-fuel ratio rich of stoichiometry at the beginning or duration of
rapid throttle motion, must not be considered an ``open-loop'' or
``commanded'' air-fuel enrichment strategy.
(14) ``Lean-on-cruise'' calibration strategies. (i) For Tier 2 and
interim non-Tier 2 LDV/Ts, the manufacturer must state in the
Application for Certification whether any ``lean-on-cruise'' strategies
are incorporated into the vehicle design. A ``lean-on-cruise'' air-fuel
calibration strategy is defined as the use of an air-fuel ratio
significantly greater than stoichiometry, during non-deceleration
conditions at speeds above 40 mph. ``Lean-on-cruise'' air-fuel
calibration strategies must not be employed during vehicle operation in
normal driving conditions, including A/C usage, unless at least one of
the following conditions is met:
(A) Such strategies are substantially employed during the FTP or
SFTP;
(B) Such strategies are demonstrated not to significantly reduce
vehicle NMHC+NO<INF>X</INF> emission control effectiveness over the
operating conditions in which they are employed; or
(C) Such strategies are demonstrated to be necessary to protect the
vehicle occupants, engine, or emission control hardware.
(ii) If the manufacturer proposes to use a ``lean-on-cruise''
calibration strategy, the manufacturer must specify the circumstances
under which such a calibration would be used, and the reason or reasons
for the proposed use of such a calibration.
* * * * *
(o) Unless otherwise approved by the Administrator, manufacturers
must measure NMOG emissions in accordance with the California Non-
Methane Organic Gas Test Procedures. These procedures are incorporated
by reference (see Sec. 86.1).
(p) For diesel vehicles, manufacturers may measure non-methane
hydrocarbons in lieu of NMOG.
[[Page 26131]]
20. Section 86.1811-01 is amended by adding a sentence to the end
of the introductory text to read as follows:
Sec. 86.1811-01 Emission standards for light-duty vehicles.
* * * This section does not apply to 2004 and later model year
vehicles, except as specifically referenced by Sec. 86.1811-04.
* * * * *
21. Section 86.1811-04 is added to read as follows:
Sec. 86.1811-04 Emission standards for light duty vehicles and light
duty trucks.
(a) Applicability. (1) This section contains regulations
implementing emission standards for all light duty vehicles and light
duty trucks (LDV/Ts). This section applies to 2004 and later model year
LDV/Ts fueled by gasoline, diesel, methanol, ethanol, natural gas and
liquefied petroleum gas fuels, except as noted. Additionally, this
section contains provisions applicable to hybrid electric vehicles
(HEVs) and zero emission vehicles (ZEVs). Multi-fueled vehicles must
comply with all requirements established for each consumed fuel.
(2)(i) This section also applies to LDV/LLDTs of model years prior
to 2004, when manufacturers certify such vehicles to Tier 2 exhaust
emission requirements to utilize alternate phase-in schedules, as
allowed under paragraph (k)(6) of this section, and/or to earn
NO<INF>X</INF> credits for use in complying with the Tier 2 fleet
average NO<INF>X</INF> standard which takes effect in the 2004 model
year for LDV/LLDTs.
(ii) This section also applies to HLDTs of model years prior to
2004, when manufacturers certify such vehicles to Tier 2 exhaust
emission requirements to utilize alternate phase-in schedules as
allowed under paragraph (k)(6) of this section.
(3) Except where otherwise specified, this section applies instead
of Secs. 86.1811-01, 86.1812-01, 86.1813-01, 86.1814-01, 86.1814-02,
86.1815-01, and 86.1815-02.
(4) Except where otherwise specified, the provisions of this
section apply equally to LDVs and all categories of LDTs, as reflected
by the use of the term LDV/T.
(5) The exhaust emission standards and evaporative emission
standards of this section apply equally to certification and in-use
LDV/Ts unless otherwise specified.
(b) Test weight. (1) Except as required in paragraph (b)(2) of this
section, emission testing of all LDV/Ts to determine compliance with
any exhaust or evaporative emission standard set forth in this part
must be on a loaded vehicle weight (LVW) basis, as that term is defined
in this subpart.
(2) Interim non-Tier 2 HLDTs tested to Tier 1 SFTP standards, must
be tested on an adjusted loaded vehicle weight (ALVW) basis, as that
term is defined in this subpart, during the SC03 element of the SFTP.
(c) Tier 2 FTP exhaust emission standards. Exhaust emissions from
Tier 2 LDV/Ts must not exceed the standards in Table S04-1 of this
section at full useful life when tested over the Federal Test Procedure
(FTP) described in subpart B of this part. Exhaust emissions from Tier
2 LDV/Ts must not exceed the standards in Table S04-2 of this section
at intermediate useful life, if applicable, when tested over the FTP.
Manufacturers of LDV/Ts must meet these standards according to the
phase-in schedules shown in Tables S04-6 and S04-7 of this section.
(1) For a given test group a manufacturer desires to certify to
operate only on one fuel, the manufacturer must select a set of
standards from the same bin (line or row) in Table S04-1 of this
section for non-methane organic gases (NMOG), carbon monoxide (CO),
oxides of nitrogen (NO<INF>X</INF>), formaldehyde (HCHO) and
particulate matter (PM). The manufacturer must certify the test group
to meet those standards, subject to all the applicable provisions of
this subpart. The manufacturer must also certify the test group to meet
the intermediate useful life standards (if any) in Table S04-2 of this
section having the same EPA bin reference number as the chosen full
useful life standards.
(2) For a given test group of flexible-fueled, bi-fuel or dual fuel
vehicles when operated on the alcohol or gaseous fuel they are designed
to use, manufacturers must select a bin of standards from Table S04-1
of this section and the corresponding bin in Table S04-2, if any. When
these flexible-fueled, bi-fuel or dual fuel vehicles are certified to
operate on gasoline or diesel fuel, the manufacturer may choose to
comply with the next numerically higher NMOG standard above the bin
which contains the standards selected for certification on the gaseous
or alcohol fuel.
(3) The bin 7 NMOG value may be used by alternative fueled vehicles
when operated on gasoline or diesel fuel when such vehicles are
certified to bin 6 standards on the gaseous or alcohol fuel on which
they are designed to operate.
(4) In addition to the bins shown in Tables S04-1 and 2 of this
section, manufacturers may also use the applicable interim non-Tier 2
bins for Tier 2 vehicles. These bins are shown in Tables S04-8 and 9 of
this section for LDV/LLDTs and Tables S04-10 and 11 of this section for
HLDTs. These bins may only be used through the last model year of the
duration of the applicable interim program, i.e. 2006 for LDV/LLDTs and
2008 for HLDTs. In a given model year, an individual vehicle may not be
included in both the Tier 2 program and an interim program.
(5) Tables S04-1 and S04-2 follow:
Table S04-1.--Tier 2 Light Duty Full Useful Life Exhaust Mass Emission Standards
[Grams per mile]
----------------------------------------------------------------------------------------------------------------
EPA bin No. NMOG CO HCHO NO<INF>X</INF> PM
----------------------------------------------------------------------------------------------------------------
7............................... <SUP>a</SUP> 0.156 .............. .............. .............. ..............
7............................... 0.125 4.2 .018 0.20 0.02
6............................... 0.090 4.2 0.018 0.15 0.02
5............................... 0.090 4.2 0.018 0.07 0.01
4............................... 0.055 2.1 0.011 0.07 0.01
3............................... 0.070 2.1 0.011 0.04 0.01
2............................... 0.010 2.1 0.004 0.02 0.01
1............................... 0.000 0.0 0.000 0.00 0.0
----------------------------------------------------------------------------------------------------------------
<SUP>a</SUP> Applicable only to flexible-fueled and dual-fuel bin 7 vehicles when certifying for operation on gasoline.
[[Page 26132]]
Table S04-2.--Tier 2 Light Duty Intermediate Useful Life Exhaust Mass Emission Standards
[Grams per mile]
----------------------------------------------------------------------------------------------------------------
EPA bin No. NMOG CO HCHO NO<INF>X</INF> PM <SUP>b</SUP>
----------------------------------------------------------------------------------------------------------------
7............................... <SUP>a</SUP> 0.125 .............. .............. .............. ..............
7............................... 0.100 3.4 0.015 0.14 ..............
6............................... 0.075 3.4 0.015 0.11 ..............
5............................... 0.075 3.4 0.015 0.05 ..............
4............................... 0.040 1.7 0.008 0.05 ..............
----------------------------------------------------------------------------------------------------------------
<SUP>a</SUP> Applicable only to flexible-fueled and dual-fuel bin 7 vehicles when certifying for operation on gasoline.
<SUP>b</SUP> The full useful life PM standards from Table S04-1 also apply at intermediate useful life.
(d) Fleet average NO<INF>X</INF> Standards. (1) For a given
individual model year's sales of Tier 2 LDV/Ts, including model years
during the phase-in years of the Tier 2 standards, manufacturers must
comply with a fleet average oxides of nitrogen (NO<INF>X</INF>)
standard of 0.07 grams per mile. The manufacturer must calculate its
fleet average NO<INF>X</INF> emission level(s) as described in
Sec. 86.1860-04. Up through and including model year 2008,
manufacturers must calculate separate fleet average NO<INF>X</INF>
emission levels for LDV/LLDTs and HLDTs as described in Sec. 86.1860-
04.
(2) For Early Tier 2 LDV/LLDTs. For model years prior to 2004,
where the manufacturer desires to bank early Tier 2 NO<INF>X</INF>
credits as permitted under Sec. 86.1861(c), the manufacturer must
comply with a fleet average standard of 0.07 grams per mile for its
Tier 2 LDV/LLDTs. Manufacturers must determine compliance with the
NO<INF>X</INF> fleet average standard according to regulations in
Sec. 86.1860-04.
(3) For Early Tier 2 HLDTs. For model years prior to 2008, where
the manufacturer desires to bank early Tier 2 NO<INF>X</INF> credits as
permitted under Sec. 86.1861(c), the manufacturer must comply with a
fleet average standard of 0.07 grams per mile for its Tier 2 HLDTs.
Manufacturers must determine compliance with the NO<INF>X</INF> fleet
average standard according to regulations in Sec. 86.1860-04.
(e) Evaporative emission standards. Consistent with the phase-in
requirements in paragraph (k) of this section, evaporative emissions
from gasoline-fueled, natural gas-fueled, liquefied petroleum gas-
fueled, ethanol-fueled and methanol-fueled LDV/Ts must not exceed the
standards in this paragraph. The standards apply equally to
certification and in-use LDV/Ts, except that the spitback standard
applies only to newly assembled LDV/Ts.
(1) Diurnal-plus-hot soak evaporative hydrocarbon standards.
Hydrocarbons for LDV/Ts must not exceed the diurnal plus hot soak
standards shown in Table S04-3 for the full three diurnal test sequence
and for the supplemental two diurnal test sequence. Table S04-3
follows:
Table S04-3.--Light-Duty Diurnal Plus Hot Soak Evaporative Emission
Standards
[Grams per test]
------------------------------------------------------------------------
Supplemental
3 day 2 day
Vehicle category diurnal + diurnal +
hot Soak hot soak
------------------------------------------------------------------------
LDVs, LDT1s and LDT2s......................... 0.95 1.2
LDT3s and LDT4s............................... 1.2 1.5
------------------------------------------------------------------------
(2) Running loss standard. Hydrocarbons for LDV/Ts measured on the
running loss test must not exceed 0.05 grams per mile.
(3) Refueling emission standards. Refueling emissions must not
exceed the following standards:
(i) For gasoline-fueled, diesel-fueled and methanol-fueled LDV/Ts:
0.20 grams hydrocarbon per gallon (0.053 grams per liter) of fuel
dispensed.
(ii) For liquefied petroleum gas-fueled LDV/Ts: 0.15 grams
hydrocarbon per gallon (0.04 grams per liter) of fuel dispensed.
(iii) Refueling standards for LDT3s and LDT4s are subject to the
phase-in requirements found in Sec. 86.1810-01(k).
(4) Spitback standards. For gasoline and methanol fueled LDV/Ts,
hydrocarbons measured on the fuel dispensing spitback test must not
exceed 1.0 grams hydrocarbon (carbon if methanol-fueled) per test.
(5) Vehicles not certified to meet the evaporative emission
standards in this paragraph (e) as permitted under the phase-in
schedule of paragraph (k) of this section, must meet applicable
evaporative emission standards in Secs. 86.1811-01, 86.1812-01,
86.1813-01, 86.1814-02 or 86.1815-02 except that all LDV/Ts must meet
the refueling emission standards in paragraph (e)(3) of this section.
(f) Supplemental exhaust emission standards for LDV/Ts. (1)
Supplemental exhaust emissions from gasoline-fueled and diesel fueled
LDV/Ts must not exceed the standards in Table S04-4 at full useful
life. Supplemental exhaust emission standards are not applicable to
alternative fueled LDV/Ts, or flexible fueled LDV/Ts when operated on a
fuel other than gasoline or diesel. Table S04-4 follows:
Table S04-4.-- Full Useful Life Supplemental Emission Standards (SFTP Standards) for LDV/Ts
[Grams/mile]
----------------------------------------------------------------------------------------------------------------
Vehicle category USO6 NMHC+NO<INF>X</INF> USO6 CO SCO3 NMHC+NO<INF>X</INF> SCO3 CO
----------------------------------------------------------------------------------------------------------------
LDV/LDT1........................................ 0.20 11.1 0.26 4.2
LDT2............................................ 0.37 14.6 0.39 5.5
LDT3............................................ 0.53 16.9 0.44 6.4
LDT4............................................ 0.78 19.3 0.62 7.3
----------------------------------------------------------------------------------------------------------------
(2) Gasoline-fueled LDV/Ts, diesel-fueled LDV/Ts and flexible
fueled LDV/Ts when operated on gasoline or diesel fuel, and subject to
intermediate useful life FTP standards, must not exceed the
intermediate useful life supplemental emission standards in Table S04-
5, as follows:
[[Page 26133]]
Table S04-5.--Intermediate Useful Life Supplemental Emission Standards (SFTP Standards) for LDV/Ts
[Grams/mile]
----------------------------------------------------------------------------------------------------------------
Vehicle category USO6 NMHC+NO<INF>X</INF> USO6 CO SCO3 NMHC+NO<INF>X</INF> SCO3 CO
----------------------------------------------------------------------------------------------------------------
LDV/LDT1........................................ 0.16 9.0 0.22 3.0
LDT2............................................ 0.30 11.6 0.32 3.9
LDT3............................................ 0.45 11.6 0.36 3.9
LDT4............................................ 0.67 13.2 0.51 4.4
----------------------------------------------------------------------------------------------------------------
(3) For interim non-Tier 2 gasoline, diesel and flexible-fueled
LDT3s and LDT4s, manufacturers may, at their option, meet the gasoline
SFTP standards found in Secs. 86.1814-02 and 86.1815-02, respectively.
(4) Interim non-Tier 2 gasoline, diesel and flexible-fueled LDV/
LLDTs certified to bin 5 FTP exhaust emission standards from Table S04-
8 in this section may meet the gasoline Tier 1 SFTP requirements found
at Sec. 86.1811-01(b).
(g) Cold temperature exhaust emission standards for LDV/Ts. These
standards are applicable only to gasoline fueled LDV/Ts. For cold
temperature exhaust emission standards, a useful life of 50,000 miles
applies.
(1) For LDVs and LDT1s, the standard is 10.0 grams per mile CO.
(2) For LDT2s, LDT3s and LDT4s, the standard is 12.5 grams per mile
CO.
(h) Certification short test exhaust emission standards for LDV/Ts.
Certification short test emissions from all gasoline-fueled otto cycle
LDV/Ts must not exceed the following standards:
(1) Hydrocarbons: 100 ppm as hexane, for certification and SEA
testing; 220 ppm as hexane, for in-use testing.
(2) Carbon monoxide: 0.5% for certification and SEA testing; 1.2%
for in-use testing.
(i) Idle exhaust emission standards for light duty trucks. Exhaust
emissions of carbon monoxide from gasoline, methanol, natural gas, and
liquefied petroleum gas-fueled light duty trucks must not exceed 0.5%
of exhaust gas flow at curb idle for the useful life of the trucks as
defined in this part. This standard does not apply to light duty
vehicles.
(j) Highway NO<INF>X</INF> exhaust emission standard for LDV/Ts.
The maximum projected NO<INF>X</INF> emissions measured on the federal
Highway Fuel Economy Test in 40 CFR part 600, subpart B, must not be
greater than 1.33 times the applicable FTP NO<INF>X</INF> standard to
which the manufacturer certifies the test group. Both the projected
emissions and the product of the NO<INF>X</INF> standard and 1.33 must
be rounded to the nearest 0.01 g/mi before being compared.
(k) Phase-in of the Tier 2 FTP exhaust and evaporative
requirements; small volume manufacturer flexibilities. (1)
Manufacturers must comply with the phase-in requirements in Tables S04-
6 and S04-7 of this section for the Tier 2 FTP exhaust emission
requirements specified in paragraph (c) of this section. Separate
phase-in schedules are provided for LDV/LLDTs and HLDTs. These
requirements specify the minimum percentage of the manufacturer's LDV/
LLDT and HLDT U.S. sales, by model year, that must meet the Tier 2
requirements for their full useful lives. Tables S04-6 and S04-7
follow:
Table S04-6.--Phase-In Percentages for LDV/LLDT Tier 2 Requirements
------------------------------------------------------------------------
Percentage of
LDV/LLDTs that
Model year must meet tier
2 requirements
------------------------------------------------------------------------
2004.................................................... 25
2005.................................................... 50
2006.................................................... 75
2007 and subsequent..................................... 100
------------------------------------------------------------------------
Table S04-7.--Phase-In Percentages for HLDT Tier 2 Requirements
------------------------------------------------------------------------
Percentage
of HLDTs
Model year that must
meet tier 2
requirements
------------------------------------------------------------------------
2008...................................................... 50
2009 and subsequent....................................... 100
------------------------------------------------------------------------
(2) Manufacturers must also comply with the phase-in requirements
in Tables S04-6 and S04-7 of this section for the evaporative emission
requirements contained in paragraph (e) of this section.
(3) Manufacturers may opt to use different LDV/LLDTs and HLDTs to
meet the phase-in requirements for evaporative emissions and FTP
exhaust emissions, provided that the manufacturer meets the minimum
phase-in requirements in Table S04-6 and Table S04-7 of this section
for both FTP exhaust and evaporative emissions. A LDV or LDT counted
toward compliance with any phase-in requirement for FTP exhaust or
evaporative standards, must comply with all applicable Tier 2 exhaust
requirements or all evaporative requirements, as applicable, described
in this section.
(4) LDVs and LDTs not certified to meet the Tier 2 FTP exhaust
requirements during model years 2004-2008, as allowed under this
subpart, are subject to the provisions of paragraph (l) of this
section. LDVs and LDTs not certified to meet the evaporative
requirements in paragraph (e) of this section during model years 2004-
2008, as allowed under this subpart, must meet all evaporative
requirements found in Secs. 86.1811-01, 86.1812-01, 86.1813-01,
86.1814-02 and 86.1815-02 as applicable, and the refueling requirements
found in paragraph (e)(3) of this section.
(5)(i) Small volume manufacturers, as defined in this part, are
exempt from the LDV/LLDT phase-in requirements for model years 2004,
2005 and 2006 in Table S04-6, but must comply with the 100% requirement
for the 2007 and later model years.
(ii) Small volume manufacturers, as defined in this part, are
exempt from the HLDT phase-in requirement for model year 2008 in Table
S04-7 of this section and the interim fleet average NO<INF>X</INF>
standard and the phase-in of the HLDT interim non-Tier 2 FTP exhaust
standards for the 2004, 2005 and 2006 model years.
(iii) Small volume manufacturers must comply with the interim non-
Tier 2 FTP exhaust emission standards of bin 5 or lower from Tables
S04-10 and 11 of this section for HLDTs of model years 2004, 2005 and
2006; the interim non-Tier 2 FTP exhaust standards from Tables S04-10
and 11 and the 0.20 g/mi fleet average NO<INF>X</INF> standard for the
2007 and 2008 model year; and the Tier 2 FTP exhaust standards,
evaporative standards, and the 0.07 g/mi fleet average NO<INF>X</INF>
standard for the 2009 and later model years.
[[Page 26134]]
(6)(i) A manufacturer may elect an alternate phase-in schedule that
results in 100% phase-in for LDV/LLDTs by 2007 . Alternate phase-in
schedules must produce a sum of at least 250% when the percentages of
LDV/LLDTs certified to Tier 2 requirements for each model year from
2001 through 2007 are summed. As an example, a 10/25/50/65/100 percent
phase-in that began in 2003 would have a sum of 250 percent would be
acceptable. However, a 10/25/40/70/100 percent phase-in that began the
same year would have a sum of 245 percent and would not be acceptable.
(ii) A manufacturer electing this option for LDV/LLDTs may
calculate its compliance with the evaporative standards in paragraph
(e)(1) of this section separately from its compliance with Tier 2
exhaust standards, provided that the phase-in schedules for each
separately produce a sum of at least 250 percent when calculated as
described in paragraph (k)(6)(i) of this section. A vehicle counted
towards compliance with any phase-in requirement for the Tier 2 exhaust
standards or the evaporative standards in paragraph (e)(1) of this
section, must comply with all applicable Tier 2 exhaust standards or
all evaporative standards, as applicable, described in this section.
(iii) In addition to the requirements of paragraph (k)(6)(i) and
(ii) of this section, a manufacturer of LDV/LLDTs electing to use an
alternate phase-in schedule for compliance with the Tier 2 exhaust
standards or the evaporative standards in paragraph (e)(1) of this
section must ensure that the sum of the percentages of vehicles from
model years 2001 through 2004, meeting such exhaust or evaporative
standards, as applicable, is at least 25%.
(iv) A manufacturer may elect an alternate phase-in schedule that
results in 100% phase-in for HLDTs by 2009. The requirements of
paragraph (k)(6)(i) through (k)(6)(iii) of this section apply, except
that for HLDTs, the calculation described in paragraph (k)(6)(i) of
this section may cover model years 2001 through 2009 and must produce a
sum of at least 150%.
(7)(i) Sales percentages for the purpose of determining compliance
with the phase-in of the Tier 2 requirements and the phase-in of the
evaporative standards in paragraph (e)(1) of this section, must be
based upon projected U.S. sales of LDV/LLDTs and HLDTs of the
applicable model year by the manufacturer to the point of first sale.
Such sales percentages must be rounded to the nearest one tenth of a
percent, and must not include vehicles and trucks projected to be sold
to points of first sale in California or a state that has adopted
California requirements for that model year as permitted under section
177 of the Act.
(ii) Alternatively, the manufacturer may petition the Administrator
to allow actual volume produced for U.S. sales to be used in lieu of
projected U.S. sales for purposes of determining compliance with the
phase-in percentage requirements under this section. The manufacturer
must submit its petition within 30 days of the end of the model year to
the Vehicle Programs and Compliance Division. For EPA to approve the
use of actual volume produced for U.S. sales, the manufacturer must
establish to the satisfaction of the Administrator, that actual
production volume is functionally equivalent to actual sales volume of
LDV/LLDTs and HLDTs sold in states other than California and states
that have adopted California standards.
(iii) Manufacturers must submit information showing compliance with
all phase-in requirements of this section with its Part I application
as required by Sec. 86.1844(d)(13).
(l) FTP exhaust standards for interim non-Tier 2 LDV/LLDTs and
HLDTs. (1) FTP exhaust emission standards for interim non-Tier 2 LDV/
LLDTs. (i) LDV/LLDTs that are not certified to meet Tier 2 FTP exhaust
emission requirements during the Tier 2 phase-in period (model years
2004-2006) must comply with the full useful life FTP exhaust emission
standards listed in Table S04-8 of this section and, the corresponding
intermediate useful life standards, if any, in Table S04-9 of this
section. Manufacturers may choose the bin of full useful life standards
to which they certify a test group of vehicles, subject to the
requirements in paragraph (l)(3)(i) of this section. In addition to the
bins shown in Tables S04-8 and S04-9 of this section, manufacturers may
also use the Tier 2 bins shown in Tables S04-1 and S04-2 of this
section. Manufacturers may include LDV/LLDTs in the interim program
that are not used to meet the Tier 2 corporate average NO<INF>X</INF>
standard or the phase-in percentage requirements in the Tier 2 program
or to generate Tier 2 NO<INF>X</INF> credits. More simply, a
manufacturer may use the Tier 2 bins for interim non-Tier 2 vehicles;
but, in a given model year, an individual vehicle may not be included
in both the Tier 2 program and an interim program. Tables S04-8 and
S04-9 follow:
Table S04-8.--Full Useful Life Interim Exhaust Mass Emission Standards for LDV/LLDTs
[Grams per mile]
----------------------------------------------------------------------------------------------------------------
EPA Bin No. NMOG CO NO<INF>X</INF> HCHO PM
----------------------------------------------------------------------------------------------------------------
5............................... 0.156 4.2 0.60 0.018 0.06
4............................... 0.090 4.2 0.30 0.018 0.06
3............................... 0.055 2.1 0.30 0.011 0.04
2............................... 0.090 4.2 0.07 0.018 0.01
1............................... 0.000 0.0 0.00 0.000 0.0
----------------------------------------------------------------------------------------------------------------
Table S04-9.--Intermediate Useful Life Interim Exhaust Mass Emission Standards for LDV/LLDTs
[Grams per mile]
----------------------------------------------------------------------------------------------------------------
EPA Bin No. NMOG CO NO<INF>X</INF> HCHO PM
----------------------------------------------------------------------------------------------------------------
5............................... 0.125 3.4 0.40 0.015
4............................... 0.075 3.4 0.20 0.015
3............................... 0.040 1.7 0.20 0.008
2............................... 0.075 3.4 0.05 0.015
----------------------------------------------------------------------------------------------------------------
(ii) Manufacturers must select a set of standards from the same bin
in Table S04-8 of this section and the corresponding bin in Table S04-
9, if any, for a given test group of flexible-fueled, dual fuel or
multi-fuel LDV/LLDTs, when operated
[[Page 26135]]
on the alcohol or gaseous fuel they are designed to use. When these
flexible-fueled, dual fuel or multi fuel LDV/Ts are certified to
operate on gasoline, the manufacturer may choose to comply with the
next numerically higher NMOG standard (if there is one) above the bin
which contains the standards selected for certification on the gaseous
or alcohol fuel.
(2) FTP exhaust emission standards for interim non-Tier 2 HLDTs.
(i) HLDTs of model years 2004-2008 that are not certified to meet the
Tier 2 FTP exhaust standards in paragraph (c) of this section must
comply with the interim non-Tier 2 FTP exhaust emission standards in
Tables S04-10 and S04-11 of this section.
(ii) HLDTs of model years 2004-2008 that are not certified to meet
the Tier 2 FTP exhaust standards in paragraph (c) of this section must
also comply with the fleet average NO<INF>X</INF> standard described in
paragraph (l)(3)(ii) of this section subject to the phase-in schedule
in paragraph (l)(2)(iv) of this section, i.e. 25 percent of the HLDTs
must meet the fleet average standard of 0.20 g/mi in 2004, 50 percent
in 2005, and so on.
(iii) Manufacturers may choose the bin of full useful life
standards to which they certify a test group of HLDTs, subject to the
requirements in paragraph (l)(3)(ii) of this section. In addition to
the bins shown in Tables S04-10 and S04-11 of this section,
manufacturers may also use the Tier 2 bins shown in Tables S04-1 and
S04-2 of this section. Therefore, manufacturers may include HLDTs in
the interim program that are not used to meet the Tier 2 corporate
average NO<INF>X</INF> standard or the phase-in percentage requirements
in the Tier 2 program or to generate Tier 2 NO<INF>X</INF> credits.
More simply, a manufacturer may use the Tier 2 bins for interim non-
Tier 2 vehicles; but, in a given model year, an individual vehicle may
not be included in both the Tier 2 program and an interim program.
Tables S04-10 and S04-11 follow:
Table S04-10.--Full Useful Life Interim Exhaust Mass Emission Standards for HLDTs
[Grams/mile]
----------------------------------------------------------------------------------------------------------------
EPA Bin No. NMOG CO NO<INF>X</INF> HCHO PM
----------------------------------------------------------------------------------------------------------------
5............................... 0.230 4.2 0.60 0.018 0.06
4............................... 0.180 4.2 0.30 0.018 0.06
3............................... 0.156 4.2 0.20 0.018 0.02
2............................... 0.090 4.2 0.07 0.018 0.01
1............................... 0.000 0.0 0.00 0.000 0.0
----------------------------------------------------------------------------------------------------------------
Table S04-11.--Intermediate Useful Life Interim Exhaust Mass Emission Standards for HLDTs
[Grams per mile]
----------------------------------------------------------------------------------------------------------------
EPA Bin No. NMOG CO NO<INF>X</INF> HCHO PM
----------------------------------------------------------------------------------------------------------------
5......................................... 0.160 3.4 0.40 0.015 ....
4......................................... 0.140 3.4 0.20 0.015 ....
3......................................... 0.125 3.4 0.14 0.015 ....
2......................................... 0.075 3.4 0.05 0.015 ....
----------------------------------------------------------------------------------------------------------------
(iv) Phase-in schedule for interim non-Tier 2 HLDT standards. Table
S04-12 of this section specifies the minimum percentage of the
manufacturer's non-Tier 2 HLDT U.S. sales, by model year, that must
comply with the fleet average NO<INF>X</INF> standard described in
paragraph (l)(3(ii) of this section. Table S04-12 follows:
Table S04-12.--Phase-in Percentages for Interim Non-Tier 2 Fleet Average
NO<INF>X</INF> Standard for HLDTs
------------------------------------------------------------------------
Percentage of
non-tier 2
HLDTs that
must meet
Model year interim non-
tier 2 fleet
average NO<INF>X</INF>
standard
------------------------------------------------------------------------
2004.................................................... 25
2005.................................................... 50
2006.................................................... 75
2007 and 2008........................................... 100
------------------------------------------------------------------------
(v) A manufacturer may elect an alternate phase-in schedule,
beginning as early as the 2001 model year, that results in 100%
compliance by 2007 with the fleet average NO<INF>X</INF> standard for
HLDTs described in paragraph (1)(3)(ii) of this section. The
requirements of paragraph (k)(6)(i) of this section apply to the
selection of an alternate phase-in schedule.
(vi) Manufacturers must select a set of standards from the same bin
in Table S04-10 of this section and the corresponding bin in Table S04-
11, if any (or Tables S04-1 and S04-2 of this section), for a given
test group of flexible-fueled, dual fuel or multi-fuel HLDTs, when
operated on the alcohol or gaseous fuel they are designed to use. When
these flexible-fueled, dual fuel or multi fuel HLDTs are certified to
operate on gasoline, the manufacturer may choose to comply with the
next numerically higher NMOG standard (if there is one) above the bin
which contains the standards selected for certification on the gaseous
or alcohol fuel.
(3) Fleet average NO<INF>X</INF> standards for interim non-Tier 2
LDV/Ts. (i) Manufacturers must comply with a fleet average full useful
life NO<INF>X</INF> standard for their interim non-Tier 2 LDV/LLDTs, on
an annual basis, of 0.30 grams per mile.
(ii) Manufacturers must comply with a fleet average full useful
life NO<INF>X</INF> standard for their interim non-Tier 2 HLDTs,
excluding those HLDTs not yet covered by the phase-in requirement
described in paragraph (l)(2)(ii) of this section, on an annual basis,
of 0.20 grams per mile.
(iii) Manufacturers must determine their compliance with these
interim fleet average NO<INF>X</INF> standards for each model year by
separately computing the sales weighted average NO<INF>X</INF> level of
all interim non-Tier 2 LDV/LLDTs and all interim non-Tier 2 HLDTs
(excluding those not yet phased in as described in paragraph (l)(2)(ii)
of this section), using the methodology in Sec. 86.1860.
[[Page 26136]]
(iv) Manufacturers may generate, bank, average, trade and use
interim non-Tier 2 NO<INF>X</INF> credits based on their NO<INF>X</INF>
fleet average as determined under paragraph (l)(3)(iii) of this
section. Unless waived or modified by the Administrator, the provisions
of Sec. 86.1861 apply to the generation, banking, averaging, trading
and use of credits generated by interim non-Tier 2 LDV/Ts.
NO<INF>X</INF> credits generated by interim non-Tier 2 LDV/Ts are not
subject to any discount.
(m) NMOG standards for diesel, flexible fueled and dual-fueled LDV/
Ts. (1) For diesel fueled LDV/Ts, the term ``NMOG'' in both the Tier 2
and interim non-Tier 2 standards means non-methane hydrocarbons.
(2) Flexible-fueled and dual-fuel Tier 2 LDV/Ts and interim non-
Tier 2
LDV/Ts must be certified to NMOG exhaust emission standards both for
operation on gasoline and on any alternate fuel they are designed to
use.
(n) Hybrid electric vehicle (HEV) and Zero Emission Vehicle (ZEV)
requirements. For FTP and SFTP exhaust emissions, and unless otherwise
approved by the Administrator, manufacturers must measure emissions
from all HEVs and ZEVs according to the requirements and test
procedures found in the document entitled California Zero-Emission and
Hybrid Electric Vehicle Exhaust Emission Standards and Test Procedures
for 2003 and Subsequent Model Passenger Cars, Light-duty Trucks and
Medium-duty Vehicles. This document is incorporated by reference (see
Sec. 86.1) . Requirements and procedures in this document that are
relevant only to complying with the California ZEV mandate, computing
partial and full ZEV allowance credits, or generating and using ZEV
credits, are not relevant to the federal program and may be
disregarded. Discussion in that document relevant to fleet average NMOG
standards and NMOG credits may also be disregarded.
(o) NMOG measurement. (1) Manufacturers must measure NMOG emissions
in accordance with Part G of the California Non-Methane Organic Gas
Test Procedures. These requirements are incorporated by reference (see
Sec. 86.1).
(2) Manufacturers must not apply reactivity adjustment factors
(RAFs) to NMOG measurements. See Sec. 86.1841.
(p) In-use standards for Tier 2 LDV/Ts. (1) Table S04-13 of this
section contains in-use emission standards applicable only to Tier 2
LDV/Ts certified to the bins shown in the table. These standards apply
to in-use testing performed by the manufacturer pursuant to regulations
at Secs. 1845-01, 1845-04 and 1846-01 and to in-use testing performed
by EPA. These standards do not apply to certification or Selective
Enforcement Auditing.
(2) These standards apply only to Tier 2 LDV/LLDTs produced up
through the 2008 model year, and Tier 2 HLDTs produced up through the
2010 model year. These standards are subject to other limitations
described in paragraph (p)(3) of this section.
(3) For the first model year and also for the next model year after
that, in which a test group of Tier 2 vehicles is certified to a bin of
standards to which it has not previously been certified, the standards
in Table S04-13 of this section apply for purposes of in-use testing
only. The standards apply equally to Tier 2 LDV/Ts produced before,
during and after the applicable Tier 2 phase-in period, subject to the
model year limitation in paragraph (p)(2) of this section. Table S04-13
follows:
Table S04-13.--In-Use Compliance Standards for Tier 2 Vehicles (g/mi)
[Certification standards shown for reference purposes]
----------------------------------------------------------------------------------------------------------------
Durability NO<INF>X</INF>
Bin No. period (miles) NO<INF>X</INF> in-use certification NMOG in-use NMOG certification
----------------------------------------------------------------------------------------------------------------
5,4......................... 50,000 0.07 0.05 n/a 0.075, 0.04
5,4......................... 120,000 0.10 0.07 n/a 0.090, 0.055
3........................... 120,000 0.06 0.04 n/a 0.070
2........................... 120,000 0.03 0.02 0.02 0.010
----------------------------------------------------------------------------------------------------------------
22. Section 86.1812-01 is amended by adding the following sentence
to the end of the introductory text to read as follows:
Sec. 86.1812-01 Emission standards for light-duty trucks 1.
* * * This section does not apply to 2004 and later model year
vehicles, except as specifically referenced by Sec. 86.1811-04.
* * * * *
23. Section 86.1813-01 is amended by adding the following sentence
to the end of the introductory text to read as follows:
Sec. 86.1813-01 Emission standards for light-duty trucks 2.
* * * This section does not apply to 2004 and later model year
vehicles, except as specifically referenced by Sec. 86.1811-04.
* * * * *
24. Section 86.1814-02 is amended by adding the following sentence
to the end of the introductory text to read as follows:
Sec. 86.1814-02 Emission standards for light-duty trucks 3.
* * * This section does not apply to 2004 and later model year
vehicles, except as specifically referenced by Sec. 86.1811-04.
* * * * *
Sec. 86.1814-04 [Removed]
25. Section 86.1814-04 is removed.
26. Section 86.1815-02 is amended by adding the following sentence
to the end of the introductory text to read as follows:
Sec. 86.1815-02 Emission standards for light-duty trucks 4.
* * * This section does not apply to 2004 and later model year
vehicles, except as specifically referenced by Sec. 86.1811-04.
* * * * *
Sec. 86.1815-04 [Removed]
27. Section 86.1815-04 is removed.
28. Section 86.1824-01 is amended by adding paragraphs (a)(2)(iii)
and (a)(2)(iv) to read as follows:
Sec. 86.1824-01 Durability demonstration procedures for evaporative
emissions.
* * * * *
(a) * * *
(2) * * *
(iii) For gasoline fueled LDV/Ts certified to meet the evaporative
emission standards set forth in Sec. 86.1811-04(e)(1), any service
accumulation method for evaporative emissions must employ gasoline fuel
for the entire service accumulation period which contains ethanol in,
at least, the highest concentration permissible in gasoline under
federal law and that is
[[Page 26137]]
commercially available in any state in the United States. Unless
otherwise approved by the Administrator, the manufacturer must
determine the appropriate ethanol concentration by selecting the
highest legal concentration commercially available during the calendar
year before the one in which the manufacturer begins its service
accumulation. The manufacturer must also provide information acceptable
to the Administrator to indicate that the service accumulation method
is of sufficient design, duration and severity to stabilize the
permeability of all non-metallic fuel and evaporative system components
to the service accumulation fuel constituents.
(iv) For flexible-fueled, dual-fueled, multi-fueled, ethanol-fueled
and methanol-fueled LDV/Ts certified to meet the evaporative emission
standards set forth in Sec. 86.1811-04(e)(1), any service accumulation
method must employ fuel for the entire service accumulation period
which the vehicle is designed to use and which the Administrator
determines will have the greatest impact upon the permeability of
evaporative and fuel system components. The manufacturer must also
provide information acceptable to the Administrator to indicate that
the service accumulation method is of sufficient design, duration and
severity to stabilize the permeability of all non-metallic fuel and
evaporative system components to service accumulation fuel
constituents.
* * * * *
29. Section 86.1827-01 is amended by adding paragraph (e) to read
as follows:
Sec. 86.1827-01 Test group determination.
* * * * *
(e) Unless otherwise approved by the Administrator, a manufacturer
of hybrid electric vehicles must create separate test groups based on
both the type of battery technology employed by the HEV and upon
features most related to their exhaust emission characteristics.
30. Section 86.1829-01 is amended by adding paragraph (d) to read
as follows:
Sec. 86.1829-01 Durability and emission testing requirements; waivers.
* * * * *
(d)(1) Beginning in the 2004 model year, the exhaust emissions must
be measured from all exhaust emission data vehicles tested in
accordance with the federal Highway Fuel Economy Test (HWFET; 40 CFR
part 600, subpart B). The oxides of nitrogen emissions measured during
such tests must be multiplied by the oxides of nitrogen deterioration
factor computed in accordance with Sec. 86.1824-01 and subsequent model
year provisions, and then rounded and compared with the applicable
emission standard in Sec. 86.1811-04. All data obtained from the
testing required under this paragraph (d) must be reported in
accordance with the procedures for reporting other exhaust emission
data required under this subpart.
(2) In the event that one or more emission data vehicles fail the
applicable HWFET standard in Sec. 86.1811-04, the manufacturer may
submit to the Administrator engineering data or other evidence showing
that the system is capable of complying with the standard. If the
Administrator finds, on the basis of an engineering evaluation, that
the system can comply with the HWFET standard, he or she may accept the
information supplied by the manufacturer in lieu of the test data.
31. Section 86.1837-01 is amended by designating the existing text
as paragraph (a) and by adding paragraph (b) to read as follows:
Sec. 86.1837-01 Rounding of emission measurements.
* * * * *
(b) Fleet average NO<INF>X</INF> value calculations, where
applicable, must be rounded to one more decimal place than that of the
applicable fleet average standard before comparing with the applicable
fleet average NO<INF>X</INF> standard to determine credit generation or
credit needs.
32. Section 86.1838-01 is amended by revising paragraph (c)(2)(iii)
to read as follows:
Sec. 86.1838-01 Small volume manufacturer certification procedures.
* * * * *
(c) * * *
(2) * * *
(iii) The provisions of Sec. 86.1845-01(c)(2) and Sec. 86.1845-
04(c)(2) that require one vehicle of each test group during high
mileage in-use verification testing to have a minimum odometer mileage
of 75 percent of the full useful life mileage for Tier 1 and NLEV LDV/
Ts, or 90,000 (or 105,000) miles for Tier 2 and interim non-Tier 2 LDV/
Ts, do not apply.
* * * * *
33. Section 86.1840-01 is amended by adding paragraph (c) to read
as follows:
Sec. 86.1840-01 Special test procedures.
* * * * *
(c) Manufacturers of LDV/Ts equipped with periodically regenerating
trap oxidizer systems must propose a procedure for testing and
certifying such LDV/Ts including SFTP testing for the review and
approval of the Administrator. The manufacturer must submit its
proposal before it begins any service accumulation or emission testing.
The manufacturer must provide with its submittal, sufficient
documentation and data for the Administrator to fully evaluate the
operation of the trap oxidizer system and the proposed certification
and testing procedure.
34. Section 86.1841-01 is amended by revising paragraph (a)(1)(iii)
and adding paragraph (e) to read as follows:
Sec. 86.1841-01 Compliance with emission standards for the purpose of
certification.
(a) * * *
(1) * * *
(iii) For the SFTP composite standard of NMHC+NO<INF>X</INF>, the
measured results of NMHC and NO<INF>X</INF> must each be adjusted by
their corresponding deterioration factors before the composite
NMHC+NO<INF>X</INF> certification level is calculated. Where the
applicable FTP exhaust hydrocarbon emission standard is an NMOG
standard, the applicable NMOG deterioration factor must be used in
place of the NMHC deterioration factor, unless otherwise approved by
the Administrator.
* * * * *
(e) Unless otherwise approved by the Administrator, manufacturers
must not use Reactivity Adjustment Factors (RAFs) in their calculation
of the certification levels of any pollutant, regardless of the fuel
used in the test vehicle.
35. Section 86.1844-01 is amended by adding a new paragraph
(d)(15), a new paragraph (e)(6) and a new paragraph (i) to read as
follows:
Sec. 86.1844-01 Information requirements: Application for
certification and submittal of information upon request.
* * * * *
(d) * * *
(15) For HEVs, unless otherwise approved by the Administrator, the
information required by the ``California Zero-Emission and Hybrid
Electric Vehicle Standards and Test Procedures for 2003 and Subsequent
Model Year Passenger Cars, Light-Duty Trucks and Medium-duty Vehicles''
must be supplied. These procedures are incorporated by reference (see
Sec. 86.1).
(e) * * *
(6) The NMOG/NMHC and formaldehyde to NMHC ratios established
according to Sec. 86.1845-04.
* * * * *
(i) For exhaust emission testing for Tier 2 and interim non-Tier 2
LDV/Ts, if approved by the Administrator in advance, manufacturers may
submit exhaust emission test data generated
[[Page 26138]]
under California test procedures to comply with any certification and
in-use testing requirements under this subpart. The Administrator may
require supporting information to establish that differences between
California and Federal exhaust testing procedures and fuels will not
produce significant differences in emission results. The Administrator
may require that in-use testing be performed using Federal test fuels
as specified in Sec. 86.113-04(a)(1).
36. Section 86.1845-04 is amended by redesignating the text of
paragraph (a) after the paragraph heading as paragraph (a)(1), adding
paragraph (a)(2), revising paragraph (c)(2) and adding paragraph (f) to
read as follows:
Sec. 86.1845-04 Manufacturer in-use verification testing requirements.
(a) General requirements. (1) * * *
(2) Unless otherwise approved by the Administrator, no emission
measurements made under the requirements of this section may be
adjusted by Reactivity Adjustment Factors (RAFs).
* * * * *
(c) * * *
(2) Vehicle mileage:
(i) All test vehicles must have a minimum odometer mileage of
50,000 miles. At least one vehicle of each test group must have a
minimum odometer mileage of 75 percent of the full useful life mileage.
See Sec. 86.1838-01(c)(2) for small volume manufacturer mileage
requirements; or
(ii) For engine families certified for a useful life of 150,000
miles, at least one vehicle must have a minimum odometer mileage of
105,000 miles. See Sec. 86.1838-01(c)(2) for small volume manufacturer
mileage requirements.
* * * * *
(f)(1) As an alternative to measuring the NMOG content, the
Administrator may approve, upon submission of supporting data by a
manufacturer, the use of NMOG to NMHC ratios. To request the use of
NMOG to NMHC ratios, a manufacturer must establish during certification
testing the ratio of measured NMOG exhaust emissions to measured NMHC
exhaust emissions for each emission data vehicle for the applicable
test group. The results must be submitted to the Administrator in the
Part II application for certification. A manufacturer may conduct in-
use testing on the test group by measuring NMHC exhaust emissions
rather than NMOG exhaust emissions. After approval by the
Administrator, the measured NMHC exhaust emissions must be multiplied
by the NMOG to NMHC ratio submitted in the application for
certification for the test group to determine the equivalent NMOG
exhaust emission values for the test vehicle. The equivalent NMOG
exhaust emission value must be used in place of the measured NMOG
exhaust emission value in determining the exhaust NMOG results. The
equivalent NMOG exhaust emission values must be compared to the NMOG
exhaust emission standard from the emission bin to which the test group
was certified.
(2) For flexible-fueled LDV/Ts certified to NMOG standards, the
manufacturer may request from the Administrator the use of a methanol
(M85) or ethanol (E85) NMOG exhaust emission to gasoline NMHC exhaust
emission ratio which must be established during certification for each
emission data vehicle for the applicable test group. The results must
be submitted to the Administrator in the Part II application for
certification. After approval by the Administrator, the measured
gasoline NMHC exhaust emissions must be multiplied by the M85 or E85
NMOG to gasoline NMHC ratio submitted in the application for
certification for the test group to determine the equivalent NMOG
exhaust emission values for the test vehicle. The equivalent NMOG
exhaust emission value must be used in place of the measured NMOG
exhaust emission value in determining the exhaust NMOG results. The
equivalent NMOG exhaust emission values must be compared to the NMOG
exhaust emission standard from the vehicle emission standard bin to
which the test group was certified.
(3) As an alternative to measuring the HCHO content, the
Administrator may approve, upon submission of supporting data by a
manufacturer, the use of HCHO to NMHC ratios. To request the use of
HCHO to NMHC ratios, the manufacturer must establish during
certification testing the ratio of measured HCHO exhaust emissions to
measured NMHC exhaust emissions for each emission data vehicle for the
applicable test group. The results must be submitted to the
Administrator with the Part II application for certification. Following
approval of the application for certification, the manufacturer may
conduct in-use testing on the test group by measuring NMHC exhaust
emissions rather than HCHO exhaust emissions. The measured NMHC exhaust
emissions must be multiplied by the HCHO to NMHC ratio submitted in the
application for certification for the test group to determine the
equivalent HCHO exhaust emission values for the test vehicle. The
equivalent HCHO exhaust emission values must be compared to the HCHO
exhaust emission standard applicable to the test group.
37. Section 86.1846-01 is amended by redesignating paragraph (a) as
paragraph (a)(1) and adding paragraph (a)(2) to read as follows:
Sec. 86.1846-01 Manufacturer in-use confirmatory testing requirements.
(a)(1) * * *
(2) Except for vehicles certified under the NLEV provisions of
subpart R of this part or unless otherwise approved by the
Administrator, no emission measurements made under the requirements of
this section may be adjusted by Reactivity Adjustment Factors (RAFs).
* * * * *
38. Section 86.1848-01 is amended by adding paragraph (c)(7) to
read as follows:
Sec. 86.1848-01 Certification.
* * * * *
(c) * * *
(7) For Tier 2 LDV/Ts and interim non-Tier 2 LDV/Ts, all
certificates of conformity issued are conditional upon compliance with
all provisions of Secs. 86.1811-04, 86.1860-04, 86.1861-04 and 86.1862-
04 both during and after model year production.
(i) Failure to meet the fleet average NO<INF>X</INF> requirements
of 0.07g/mi, 0.30
g/mi or 0.20 g/mi, as applicable, will be considered to be a failure to
satisfy the terms and conditions upon which the certificate(s) was
(were) issued and the LDV/Ts sold in violation of the fleet average
NO<INF>X</INF> standard will not be covered by the certificate(s).
(ii) Failure to comply fully with the prohibition against selling
credits that it has not generated or that are not available, as
specified in Sec. 86.1861-04, will be considered to be a failure to
satisfy the terms and conditions upon which the certificate(s) was
(were) issued and the LDV/Ts sold in violation of this prohibition will
not be covered by the certificate(s).
(iii) Failure to comply fully with the phase-in requirements of
Sec. 86.1811-04, will be considered to be a failure to satisfy the
terms and conditions upon which the certificate(s) was (were) issued
and the LDV/Ts sold which do not comply with Tier 2 or interim non-Tier
2 requirements, up to the number needed to comply, will not be covered
by the certificate(s).
(iv) For paragraphs (c)(7) (i) through (iii) of this section:
(A) The manufacturer must bear the burden of establishing to the
satisfaction of the Administrator that the terms and conditions upon
which the certificate(s) was (were) issued were satisfied.
[[Page 26139]]
(B) For recall and warranty purposes, LDV/Ts not covered by a
certificate of conformity will continue to be held to the standards
stated or referenced in the certificate that otherwise would have
applied to the LDV/Ts
* * * * *
Secs. 86.1854 through 86.1859 [Reserved]
39. Sections 86.1854 through 86.1859 are added and reserved.
40. Section 86.1860-04 is added to read as follows:
Sec. 86.1860-04 How to comply with the Tier 2 and interim non-Tier 2
fleet average NO<INF>X</INF> standards.
(a) The fleet average standards referred to in this section are the
corporate fleet average standards for FTP exhaust NO<INF>X</INF>
emissions set forth in: Sec. 86.1811-04(d) for Tier 2 LDV/Ts (0.07 g/
mi); Sec. 86.1811-04(l)(3) for interim non-Tier 2 LDV/LLDTs (0.30 g/
mi); and, Sec. 86.1811-04(l)(3) for interim non-Tier 2 HLDTs (0.20 g/
mi). Unless otherwise indicated in this section, the provisions of this
section apply to all three corporate fleet average standards, except
that the interim non-Tier 2 fleet average NO<INF>X</INF> standards do
not apply to a manufacturer whose U.S. LDV/T sales are 100% Tier 2 LDV/
Ts.
(b) Each manufacturer must comply with the applicable fleet average
NO<INF>X</INF> standard, or standards, on a sales weighted average
basis, at the end of each model year, using the procedure described in
this section.
(c)(1)(i) Each manufacturer must separately compute the sales
weighted averages of the individual NO<INF>X</INF> emission standards
to which it certified all its Tier 2 LDV/Ts, interim non-Tier 2 LDV/
LLDTs, and interim non-Tier 2 HLDTs of a given model year as described
in Sec. 86.1804(l)(2). The averages must be rounded to the same number
of decimal places as those of the standard plus one additional decimal
place.
(ii) For model years up to and including 2008, manufacturers must
compute separate NO<INF>X</INF> fleet averages for Tier 2 LDV/LLDTs and
Tier 2 HLDTs.
(2)(i) For model years up to and including 2008, if a manufacturer
certifies its entire U.S. sales of Tier 2 or interim non-Tier 2 LDV/
LLDTs or interim non-Tier 2 HLDTs, to full useful life bins having
NO<INF>X</INF> standards at or below the applicable fleet average
NO<INF>X</INF> standard, that manufacturer may elect not to compute a
fleet average NO<INF>X</INF> level for that category of vehicles. A
manufacturer making such an election must not generate NO<INF>X</INF>
credits for that category of vehicles for that model year.
(ii) For model years after 2008, if a manufacturer certifies its
entire U.S. sales of Tier 2 vehicles to full useful life bins having
NO<INF>X</INF> standards at or below 0.07 gpm, that manufacturer may
elect not to compute a fleet average NO<INF>X</INF> level for its Tier
2 vehicles. A manufacturer making such an election must not generate
NO<INF>X</INF> credits for that model year.
(d) The sales weighted NO<INF>X</INF> fleet averages determined
pursuant to paragraph (c) of this section must be compared with the
applicable fleet average standard; 0.07 g/mi for NO<INF>X</INF> for
Tier 2 LDV/Ts, 0.30 g/mi for NO<INF>X</INF> for interim non-Tier 2 LDV/
LLDTs, and 0.20 g/mi for NO<INF>X</INF> for interim non-Tier 2 HLDTs.
Each manufacturer must comply on an annual basis with the fleet average
standards by:
(1) showing that its sales weighted average NO<INF>X</INF>
emissions of its LDV/LLDTs, HLDTs or LDV/Ts, as applicable, are at or
below the applicable fleet average standard; or
(2) if the sales weighted average is not at or below the applicable
fleet average standard, obtaining and applying sufficient Tier 2
NO<INF>X</INF> credits, interim non-Tier 2 LDV/LLDT NO<INF>X</INF>
credits or interim non-Tier 2 HLDT NO<INF>X</INF> credits as permitted
under Sec. 86.1861-04 of this part. Manufacturers may not use NMOG
credits generated under the NLEV program in subpart R of this part to
meet any Tier 2 or interim non-Tier 2 NO<INF>X</INF> fleet average
standard. Tier 2 NO<INF>X</INF> credits may not be used to meet any
fleet average interim non-Tier 2 NO<INF>X</INF> standard. Interim non-
Tier 2 NO<INF>X</INF> credits may not be used to meet the Tier 2
corporate average NO<INF>X</INF> standard. Interim non-Tier 2
NO<INF>X</INF> credits from HLDTs may not be used to meet the fleet
average NO<INF>X</INF> standard for interim non-Tier 2 LDV/LLDTs, and
interim non-Tier 2 credits from LDV/LLDTs may not be used to meet the
fleet average NO<INF>X</INF> standard for interim non-Tier 2 HLDTs.
(e) Manufacturers that can not meet the requirements of paragraph
(d) of this section, may carry forward a credit deficit for one model
year, but may not carry a deficit forward in two consecutive model
years, except that manufacturers may carry forward a credit deficit for
interim non-Tier 2 LDV/LLDTs or interim non-Tier 2 HLDTs for more than
one year but must cover the LDV/LLDT credit deficit with interim non-
Tier 2 LDV/LLDT NO<INF>X</INF> credits by the end of model year 2006,
and any interim non-Tier 2 HLDT deficit with interim non-Tier 2 HLDT
NO<INF>X</INF> credits by the end of model year 2008. No deficit from
interim non-Tier 2 LDV/LLDTs of any model year may be carried forward
into the 2007 model year. No deficit from interim non-Tier 2 HLDTs may
be carried forward into the 2009 model year.
(f) Computing fleet average NO<INF>X</INF> emissions. (1)
Manufacturers must separately compute these fleet NO<INF>X</INF>
averages using the equation contained in paragraph (f)(2) of this
section:
(i) Their Tier 2 LDV/LLDT and Tier 2 HLDT fleet average
NO<INF>X</INF> emissions for each model year through 2008;
(ii) Their Tier 2 LDV/T fleet average NO<INF>X</INF> emissions for
each model year after 2008;
(iii) Their interim non-Tier 2 LDV/LDT fleet average NO<INF>X</INF>
emissions for each model year through 2006; and
(iv) Their interim non-Tier 2 HLDT fleet average NO<INF>X</INF>
emissions for each model year through 2008.
(2) The equation for computing fleet average NO<INF>X</INF>
emissions is as follows:
[GRAPHIC] [TIFF OMITTED] TP13MY99.011
Where:
N = The number of LDV/Ts sold in the applicable category that were
certified for each corresponding NO<INF>X</INF> emission bin. N must be
based on LDV/Ts counted to the point of first sale.
Emission standard = The individual full useful life NO<INF>X</INF>
emission standard for each bin for which the manufacturer had sales.
(3) The results of the calculation in paragraph (f)(2) of this
section must be rounded to one more decimal place than the number of
decimal places of the fleet average NO<INF>X</INF> standard.
(4) When approved in advance by the Administrator, the numerator in
the equation in paragraph (f)(2) of this section may be adjusted
downward by the product of the number of HEVs from each NO<INF>X</INF>
emission bin times a HEV NO<INF>X</INF> contribution factor determined
through mathematical estimation of the reduction in NO<INF>X</INF>
emissions over the
[[Page 26140]]
test procedure used to certify the HEVs. The reduction in
NO<INF>X</INF> emissions must be determined using good engineering
judgement and reflect the relation in actual full useful life
NO<INF>X</INF> emissions to the full useful life NO<INF>X</INF>
standards for the certification bin applicable to the LDV/Ts. The
Administrator may require that calculation of the HEV NO<INF>X</INF>
contribution factor include vehicle parameters such as vehicle weight,
portion of time during the test procedure that the HEV operates with
zero exhaust emissions, zero emission range, NO<INF>X</INF> emissions
from fuel-fired heaters and NO<INF>X</INF> emissions from electricity
production and storage.
(g) Additional credits for LDV/Ts certified to 150,000 mile useful
lives. A manufacturer may certify any Tier 2 test group to an optional
useful life of 150,000 miles. For any test group certified to the
optional 150,000 mile useful life, the manufacturer, when calculating
its fleet average by the procedure in paragraph (f) of this section,
may substitute an adjusted NO<INF>X</INF> standard for the applicable
NO<INF>X</INF> standards from the full useful life certification bin.
The adjusted standard must be equal to the applicable full useful life
NO<INF>X</INF> standard multiplied by 0.85 and rounded to the same
number of decimal places as the applicable full useful life
NO<INF>X</INF> standard.
41. Section 86.1861-04 is added to read as follows:
Sec. 86.1861-04 How do the Tier 2 and interim non-Tier 2
NO<INF>X</INF> averaging, banking and trading programs work?
(a) General provisions for Tier 2 credits and debits. (1) A
manufacturer whose Tier 2 fleet average NO<INF>X</INF> emissions
exceeds the 0.07 g/mile standard must complete the calculation at
paragraph (b) of this section to determine the size of its
NO<INF>X</INF> credit deficit. A manufacturer whose Tier 2 fleet
average NO<INF>X</INF> emissions is less than or equal to the 0.07 g/
mile standard must complete the calculation in paragraph (b) of this
section if it desires to generate NO<INF>X</INF> credits. In either
case, the number of credits or debits determined in the calculation at
paragraph (b) of this section must be rounded to the nearest whole
number.
(2) Credits generated according to the calculation in paragraph
(b)(1) of this section may be banked for future use or traded to
another manufacturer.
(3) NO<INF>X</INF> credits are not subject to any discount or
expiration date.
(4) If a manufacturer calculates that it has negative credits
(debits or a credit deficit) for a given model year, it must obtain
sufficient credits from LDV/Ts produced by itself or another
manufacturer in a model year no later than the one following the model
year for which it calculated the credit deficit. (Example: if a
manufacturer calculates that it has a NO<INF>X</INF> credit deficit for
the 2008 model year, it must obtain sufficient NO<INF>X</INF> credits
to offset that deficit from its own production or that of other
manufacturers' 2009 or earlier model year LDV/Ts.)
(5) A manufacturer must not have a NO<INF>X</INF> credit deficit
for any two consecutive model years. (Example: A manufacturer that has
a NO<INF>X</INF> credit deficit at the end of the 2008 model year from
its 2008 production that it can not offset with NO<INF>X</INF> credits
from 2008 or earlier model year LDV/Ts as allowed under this subpart,
must not also have a NO<INF>X</INF> credit deficit at the end of the
2009 model year.)
(6) Manufacturers may not use NO<INF>X</INF> credits generated in
the Tier 2 program to comply with the NLEV requirements of subpart R of
this part. Manufacturers may not use NMOG credits generated by vehicles
certified to the NLEV requirements of subpart R of this part to comply
with any NO<INF>X</INF> requirements of this subpart. Manufacturers may
not use NO<INF>X</INF> credits generated by interim non-Tier 2 LDV/Ts
to comply with the corporate average NO<INF>X</INF> standard for Tier 2
LDV/Ts. Manufacturers may not use NO<INF>X</INF> credits generated by
Tier 2 LDV/Ts to comply with any corporate average NO<INF>X</INF>
standard for interim non-Tier 2 LDV/Ts. Manufacturers may not use
NO<INF>X</INF> credits generated by interim non-Tier 2 LDV/LLDTs to
comply with the corporate average NO<INF>X</INF> standard for interim
non-Tier 2 HLDTs. Manufacturers may not use NO<INF>X</INF> credits
generated by interim non-Tier 2 HLDTs to comply with the corporate
average NO<INF>X</INF> standard for interim non-Tier 2 LDV/LLDTs.
(7) Manufacturers may bank Tier 2 NO<INF>X</INF> credits for later
use to meet the Tier 2 corporate average NO<INF>X</INF> standard or
trade them to another manufacturer. Credits are earned on the last day
of the model year. Before trading or carrying over credits to the next
model year, a manufacturer must apply available credits to offset any
credit deficit, where the deadline to offset that credit deficit has
not yet passed.
(8) There are no property rights associated with NO<INF>X</INF>
credits generated under this subpart. Credits are a limited
authorization to emit the designated amount of emissions. Nothing in
this part or any other provision of law should be construed to limit
EPA's authority to terminate or limit this authorization through a
rulemaking.
(b) Calculating Tier 2 credits and debits. (1) Manufacturers that
achieve fleet average NO<INF>X</INF> values from the calculation in
Sec. 86.1860-04(f), lower than the applicable fleet average
NO<INF>X</INF> standard, may generate credits for a given model year,
in units of vehicle-g/mi NO<INF>X</INF>, determined in this equation:
[(Fleet Average NO<INF>X</INF> Standard)-(Manufacturer's Fleet Average
NO<INF>X</INF> Value)] x (Total number of Tier 2 LDV/Ts Sold,
Including ZEVs and HEVs)
Where: The number of Tier 2 LDV/Ts sold is based on the point of first
sale and does not include vehicles sold in California or a state that
adopts, and has in effect for that model year, California emission
requirements.
(2) Where the result of the calculation in paragraph (b)(1) of this
section is a negative number, the manufacturer must generate negative
NO<INF>X</INF> credits (debits).
(c) Early banking. (1)(i) Manufacturers may certify LDV/LLDTs to
the Tier 2 FTP exhaust standards in Sec. 86.1811-04 for model years
2001-2003 in order to bank credits for use in the 2004 and later model
years. Such vehicles must also meet SFTP exhaust emission standards
specified in Sec. 86.1811-04.
(ii) Manufacturers may certify HLDTs to the Tier 2 FTP exhaust
standards in Sec. 86.1811-04 for model years 2004-2007 in order to bank
credits for use in the 2008 and later model years. Such vehicles must
also meet SFTP exhaust emission standards specified in Sec. 86.1811-04.
(iii) This process is referred to as ``early banking'' and the
resultant credits are referred to as ``early credits''. In order to
bank early credits, a manufacturer must comply with all exhaust
emission standards and requirements applicable to Tier 2 LDV/LLDTs and/
or HLDTs, as applicable, except as allowed under paragraph (c)(4) of
this section.
(2) To generate early credits, a manufacturer must separately
compute the sales weighted NO<INF>X</INF> average of the LDV/LLDTs and
HLDTs it certifies to the Tier 2 exhaust requirements and separately
compute credits using the calculations in this section and in
Sec. 86.1860-04.
(3) Early HLDT credits may not be applied to LDV/LLDTs before the
2009 model year. Early LDV/LLDT credits may not be applied to HLDTs
before the 2009 model year.
(4) Manufacturers may generate early Tier 2 credits from LDVs,
LDT1s and LDT2s that are certified to a full useful life of 100,000
miles, provided that the credits are prorated by a multiplicative
factor of 0.833 (the quotient of 100,000/120,000). Where a manufacturer
has
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both 100,000 and 120,000 mile full useful life vehicles for which it
desires to bank early credits, it must compute the credits from each
group of vehicles separately and then add them together.
(5) Manufacturers may bank early credits for later use to meet the
Tier 2 corporate average NO<INF>X</INF> standard or trade them to
another manufacturer subject to the restriction in paragraph (c)(3) of
this section.
(6) Early credits may not be used to comply with the corporate
average NO<INF>X</INF> standards for interim non-Tier 2 LDV/Ts.
(d) Reporting and recordkeeping for Tier 2 NO<INF>X</INF> credits
including early credits. Each manufacturer must comply with the
reporting and recordkeeping requirements of Sec. 86.1862-04.
(e) Fleet average NO<INF>X</INF> debits. (1) Manufacturers must
offset any debits for a given model year by the fleet average
NO<INF>X</INF> reporting deadline for the model year following the
model year in which the debits were generated. Manufacturers may offset
debits by generating credits or acquiring credits generated by another
manufacturer.
(2)(i) Failure to meet the requirements of paragraphs (a) through
(d) of this section within the required timeframe for offsetting debits
will be considered to be a failure to satisfy the conditions upon which
the certificate(s) was issued and the individual noncomplying LDV/Ts
not covered by the certificate must be determined according to this
section.
(ii) If debits are not offset within the specified time period, the
number of LDV/Ts not meeting the fleet average NO<INF>X</INF> standards
and not covered by the certificate must be calculated by dividing the
total amount of debits for the model year by the fleet average
NO<INF>X</INF> standard applicable for the model year in which the
debits were first incurred.
(iii) EPA will determine the LDV/Ts for which the condition on the
certificate was not satisfied by designating LDV/Ts in those engine
families with the highest certification NO<INF>X</INF> emission values
first and continuing until a number of LDV/Ts equal to the calculated
number of noncomplying LDV/Ts as determined above is reached. If this
calculation determines that only a portion of LDV/Ts in an engine
family contribute to the debit situation, then EPA will designate
actual LDV/Ts in that engine family as not covered by the certificate,
starting with the last vehicle produced and counting backwards.
(3) If a manufacturer ceases production of LDV/Ts or is purchased
by, merges with or otherwise combines with another manufacturer, the
manufacturer continues to be responsible for offsetting any debits
outstanding within the required time period. Any failure to offset the
debits will be considered to be a violation of paragraph (e)(1) of this
section and may subject the manufacturer to an enforcement action for
sale of LDV/Ts not covered by a certificate, pursuant to paragraph
(e)(2) of this section.
(4) For purposes of calculating the statute of limitations, a
violation of the requirements of paragraph (e)(1) of this section, a
failure to satisfy the conditions upon which a certificate(s) was
issued and hence a sale of LDV/Ts not covered by the certificate, all
occur upon the expiration of the deadline for offsetting debits
specified in paragraph (e)(1) of this section.
(f) NO<INF>X</INF> credit transfers. (1) EPA may reject
NO<INF>X</INF> credit transfers if the involved manufacturers fail to
submit the credit transfer notification in the annual report.
(2) A manufacturer may not sell credits that are not available for
sale pursuant to the provisions in paragraphs (a)(2) and (a)(7) of this
section.
(3) In the event of a negative credit balance resulting from a
transaction, both the buyer and seller are liable, except in cases
involving fraud. EPA may void ab initio the certificates of conformity
of all engine families participating in such a trade.
(4)(i) If a manufacturer transfers a credit that it has not
generated pursuant to paragraph (b) of this section or acquired from
another party, the manufacturer will be considered to have generated a
debit in the model year that the manufacturer transferred the credit.
The manufacturer must offset such debits by the deadline for the annual
report for that same model year.
(ii) Failure to offset the debits within the required time period
will be considered a failure to satisfy the conditions upon which the
certificate(s) was issued and will be addressed pursuant to paragraph
(e) of this section.
(g) Interim non-Tier 2 NO<INF>X</INF> credits and debits; Interim
non-Tier 2 averaging, banking and trading. Interim non-Tier 2
NO<INF>X</INF> credits must be generated, calculated, tracked,
averaged, banked, traded, accounted for and reported upon separately
from Tier 2 credits. The provisions of this section applicable to Tier
2 NO<INF>X</INF> credits and debits and Tier 2 averaging banking and
trading are applicable to interim non-Tier 2 LDV/Ts with the following
exceptions:
(1) Provisions for early banking under paragraph (c) of this
section do not apply.
(2) The fleet average NO<INF>X</INF> standard used for calculating
credits is 0.30 grams per mile for interim non-Tier 2 LDV/LLDTs and
0.20 g/mi for interim non-Tier 2 HLDTs. (The interim non-Tier 2
NO<INF>X</INF> standard of 0.30 (or 0.20)
g/mi replaces 0.07 in the text and calculation in this section.)
(3) Interim non-Tier 2 NO<INF>X</INF> credit deficits may be
carried forward for more than one year, except that all credit deficits
must be reduced to zero for interim non-Tier 2 LDV/LLDTs by the end of
the 2006 model year, and by the end of the 2008 model year for interim
non-Tier 2 HLDTs.
42. Section 86.1862-04 is added to read as follows:
Sec. 86.1862-04 Maintenance of records and submittal of information
relevant to compliance with fleet average NO<INF>X</INF> standards.
(a) Maintenance of records. (1) The manufacturer producing any
light-duty vehicles and/or light-duty trucks subject to the provisions
in this subpart must establish, maintain, and retain the following
information in adequately organized and indexed records for each model
year:
(i) Model year;
(ii) Applicable fleet average NO<INF>X</INF> standard: 0.07g/mi for
Tier 2 LDV/Ts; 0.30 g/mi for interim non-Tier 2
LDV/LLDTs; or 0.20 g/mi for interim non-Tier 2 HLDTs;
(iii) Fleet average NO<INF>X</INF> value achieved; and
(iv) All values used in calculating the fleet average
NO<INF>X</INF> value achieved.
(2) The manufacturer producing any LDV/Ts subject to the provisions
in this subpart must establish, maintain, and retain the following
information in adequately organized and indexed records for each LDV/T
subject to this subpart:
(i) Model year;
(ii) Applicable fleet average NO<INF>X</INF> standard;
(iii) EPA test group;
(iv) Assembly plant;
(v) Vehicle identification number;
(vi) NO<INF>X</INF> standard to which the
LDV/T is certified; and
(vii) Information on the point of first sale, including the
purchaser, city, and state.
(3) The manufacturer must retain all records required to be
maintained under this section for a period of eight years from the due
date for the annual report. Records may be retained as hard copy or
reduced to microfilm, ADP diskettes, and so forth, depending on the
manufacturer's record retention procedure; provided, that in every case
all information contained in the hard copy is retained.
(4) Nothing in this section limits the Administrator's discretion
to require the
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manufacturer to retain additional records or submit information not
specifically required by this section.
(5) Pursuant to a request made by the Administrator, the
manufacturer must submit to the Administrator the information that the
manufacturer is required to retain.
(6) EPA may void ab initio a certificate of conformity for a LDV/T
certified to emission standards as set forth or otherwise referenced in
this subpart for which the manufacturer fails to retain the records
required in this section or to provide such information to the
Administrator upon request.
(b) Reporting. (1) Each covered manufacturer must submit an annual
report. Except as provided in paragraph (b)(2) of this section, the
annual report must contain, for each applicable fleet average
NO<INF>X</INF> standard, the fleet average NO<INF>X</INF> value
achieved, all values required to calculate the NO<INF>X</INF> value,
the number of credits generated or debits incurred, and all the values
required to calculate the credits or debits. The annual report must
contain the resulting balance of credits or debits.
(2) When a manufacturer calculates compliance with the fleet
average NO<INF>X</INF> standard using the provisions in Sec. 86.1860-
04(c)(2), then the annual report must state that the manufacturer has
elected to use such provision and must contain the fleet average
NO<INF>X</INF> standard as the fleet average NO<INF>X</INF> value for
that model year.
(3) For each applicable fleet average NO<INF>X</INF> standard, the
annual report must also include documentation on all credit
transactions the manufacturer has engaged in since those included in
the last report. Information for each transaction must include:
(i) Name of credit provider;
(ii) Name of credit recipient;
(iii) Date the transfer occurred;
(iv) Quantity of credits transferred; and
(v) Model year in which the credits were earned.
(4) Unless a manufacturer reports the data required by this section
in the annual production report required under Sec. 86.1844-01(e) and
subsequent model year provisions, a manufacturer must submit an annual
report for each model year after production ends for all affected
vehicles and trucks produced by the manufacturer subject to the
provisions of this subpart and no later than May 1 of the calendar year
following the given model year. Annual reports must be submitted to:
Director, Vehicle Programs and Compliance Division, U.S. Environmental
Protection Agency, 2000 Traverwood, Ann Arbor, Michigan 48105.
(5) Failure by a manufacturer to submit the annual report in the
specified time period for all vehicles and trucks subject to the
provisions in this section is a violation of section 203(a)(1) of the
Clean Air Act for each subject vehicle and truck produced by that
manufacturer.
(6) If EPA or the manufacturer determines that a reporting error
occurred on an annual report previously submitted to EPA, the
manufacturer's credit or debit calculations will be recalculated. EPA
may void erroneous credits, unless transferred, and must adjust
erroneous debits. In the case of transferred erroneous credits, EPA
must adjust the manufacturer's credit or debit balance to reflect the
sale of such credits and any resulting generation of debits.
(c) Notice of opportunity for hearing. Any voiding of the
certificate under paragraph (a)(6) of this section will be made only
after EPA has offered the manufacturer concerned an opportunity for a
hearing conducted in accordance with Sec. 86.614 for light-duty
vehicles or Sec. 86.1014 for light-duty trucks and, if a manufacturer
requests such a hearing, will be made only after an initial decision by
the Presiding Officer.
[FR Doc. 99-11384 Filed 5-6-99; 11:03 am]
BILLING CODE 6560-50-P