[Code of Federal Regulations]
[Title 40, Volume 17]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR86.094-15]
[Page 255-258]
TITLE 40--PROTECTION OF ENVIRONMENT
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
PART 86_CONTROL OF EMISSIONS FROM NEW AND IN-USE HIGHWAY VEHICLES AND
ENGINES--Table of Contents
Subpart A_General Provisions for Emission Regulations for 1977 and Later
Sec. 86.094-15 NOX and particulate averaging, trading, and
banking for heavy-duty engines.
(a)(1) Heavy-duty engines eligible for NOX and
particulate averaging, trading and banking programs are described in the
applicable emission standards sections in this subpart. All heavy-duty
engine families which include any engines labeled for use in clean-fuel
vehicles as specified in 40 CFR part 88 are not eligible for these
programs. Participation in these programs is voluntary.
(2)(i) Engine families with FELs exceeding the applicable standard
shall obtain emission credits in a mass amount sufficient to address the
shortfall. Credits may be obtained from averaging, trading, or banking,
within the averaging set restrictions described in this section.
(ii) Engine families with FELs below the applicable standard will
have emission credits available to average, trade, bank or a combination
thereof. Credits may not be used for averaging or trading to offset
emissions that exceed an FEL. Credits may not be used to remedy an in-
use nonconformity determined by a Selective Enforcement Audit or by
recall testing. However, credits may be used to allow subsequent
production of engines for the family in question if the manufacturer
elects to recertify to a higher FEL.
(iii) Credits scheduled to expire in the earliest model year shall
be used, prior to using other available credits, to offset emissions of
engine families with FELs exceeding the applicable standard.
(b) Participation in the NOX and/or particulate
averaging, trading, and banking programs shall be done as follows.
(1) During certification, the manufacturer shall:
(i) Declare its intent to include specific engine families in the
averaging, trading and/or banking programs. Separate declarations are
required for each program and for each pollutant (i.e., NOX
and particulate).
(ii) Declare an FEL for each engine family participating in one or
more of these three programs.
(A) The FEL must be to the same level of significant digits as the
emission standard (one-tenth of a gram per brake horsepower for
NOX emissions and one-hundredth of a gram per brake
horsepower-hour for particulate emissions).
(B) In no case may the FEL exceed the upper limit prescribed in the
section concerning the applicable heavy-duty engine NOX and
particulate emission standards.
(iii) Calculate the projected emission credits (+/-) based on
quarterly production projections for each participating family and for
each pollutant (NOX and particulate), using the applicable
equation in paragraph (c) of this section and the applicable factors for
the specific engine family.
(iv)(A) Determine and state the source of the needed credits
according to quarterly projected production for engine families
requiring credits for certification.
[[Page 256]]
(B) State where the quarterly projected credits will be applied for
engine families generating credits.
(C) Credits may be obtained from or applied to only engine families
within the same averaging set as described in paragraphs (d) and (e) of
this section. Credits available for averaging, trading, or banking as
defined in Sec. 86.090-2, may be applied exclusively to a given engine
family, or reserved as defined in Sec. 86.091-2.
(2) Based on this information each manufacturer's certification
application must demonstrate:
(i) That at the end of model year production, each engine family has
a net emissions credit balance of zero or more using the methodology in
paragraph (c) of this section with any credits obtained from averaging,
trading or banking.
(ii) The source of the credits to be used to comply with the
emission standard if the FEL exceeds the standard, or where credits will
be applied if the FEL is less than the emission standard. In cases where
credits are being obtained, each engine family involved must state
specifically the source (manufacturer/engine family) of the credits
being used. In cases where credits are being generated/supplied, each
engine family involved must state specifically the designated use
(manufacturer/engine family or reserved) of the credits involved. All
such reports shall include all credits involved in averaging, trading or
banking.
(3) During the model year manufacturers must:
(i) Monitor projected versus actual production to be certain that
compliance with the emission standards is achieved at the end of the
model year.
(ii) Provide the end-of-model year reports required under Sec.
86.091-23.
(iii) For manufacturers participating in emission credit trading,
maintain the quarterly records required under Sec. 86.091-7(c)(8).
(4) Projected credits based on information supplied in the
certification application may be used to obtain a certificate of
conformity. However, any such credits may be revoked based on review of
end-of-model year reports, follow-up audits, and any other compliance
measures deemed appropriate by the Administrator.
(5) Compliance under averaging, banking, and trading will be
determined at the end of the model year. Engine families without an
adequate amount of NOX and/or particulate emission credits
will violate the conditions of the certificate of conformity. The
certificates of conformity may be voided ab initio for engine families
exceeding the emission standard.
(6) If EPA or the manufacturer determines that a reporting error
occurred on an end-of-year report previously submitted to EPA under this
section, the manufacturer's credits and credit calculations will be
recalculated. Erroneous positive credits will be void. Erroneous
negative balances may be adjusted by EPA for retroactive use.
(i) If EPA review of a manufacturer's end-of-year report indicates a
credit shortfall, the manufacturer will be permitted to purchase the
necessary credits to bring the credit balance for that engine family to
zero, at the ratio of 1.2 credits purchased for every credit needed to
bring the balance to zero. If sufficient credits are not available to
bring the credit balance for the engine family in question to zero, EPA
may void the certificate for that engine family ab initio.
(ii) If within 180 days of receipt of the manufacturer's end-of-year
report, EPA review determines a reporting error in the manufacturer's
favor (i.e. resulting in a positive credit balance) or if the
manufacturer discovers such an error within 180 days of EPA receipt of
the end-of-year report, the credits will be restored for use by the
manufacturer.
(c)(1) For each participating engine family, NOX and
particulate emission credits (positive or negative) are to be calculated
according to one of the following equations and rounded, in accordance
with ASTM E29-67, to the nearest one-tenth of a Megagram (Mg).
Consistent units are to be used throughout the equation.
For determining credit need for all engine families and credit
availability for engine families generating credits for averaging
programs only:
[[Page 257]]
Emission credits = (Std FEL) x (CF) x (UL) x (Production) x
(10-6)
For determining credit availability for engine families generating
credits for trading or banking programs:
Emission credits = (Std FEL) x (CF) x (UL) x (Production) x
(10-6) x (0.8)
Where:
Std = the current and applicable heavy-duty engine NOX or
particulate emission standard in grams per brake horsepower hour or
grams per Megajoule.
FEL = the NOX or particulate family emission limit for the
engine family in grams per brake horsepower-hour or grams per Megajoule.
CF = a transient cycle conversion factor in BHP-hr/mi or MJ/mi, as given
in paragraph (c)(2) of this section.
UL = the useful life, or alternative life as described in paragraph (f)
of Sec. 86.090-21, for the given engine family in miles.
Production = the number of engines produced for U.S. sales within the
given engine family during the model year. Quarterly production
projections are used for initial certification. Actual production is
used for end-of-year compliance determination.
0.8 = a one-time discount applied to all credits to be banked or traded
within the model year generated. Banked credits traded in a subsequent
model year will not be subject to an additional discount. Banked credits
used in a subsequent model year's averaging program will not have the
discount restored.
(2) The transient cycle conversion factor is the total (integrated)
cycle brake horsepower- hour or Megajoules, divided by the equivalent
mileage of the applicable transient cycle. For Otto-cycle-heavy duty
engines, the equivalent mileage is 6.3 miles. For diesel heavy-duty
engines, the equivalent mileage is 6.5 miles. When more than one
configuration is chosen by EPA to be tested in the certification of an
engine family (as described in Sec. 86.085-24), the conversion factor
used is to be based upon the configuration generating the highest
conversion factor when determining credit need for a family and the
lowest conversion factor when determining credit availability from a
family for banking, trading and averaging.
(d) Averaging sets for NOx emission credits: The averaging and
trading of NOX emission credits will only be allowed between
heavy-duty engine families in the same averaging set and in the same
regional category. Engines produced for sale in California constitute a
separate regional category than engines produced for sale in the other
49 states. Banking and trading are not applicable to engines sold in
California. The averaging sets for the averaging and trading of
NOX emission credits for heavy-duty engines are defined as
follows:
(1) For Otto-cycle heavy-duty engines:
(i) Otto-cycle heavy-duty engines constitute an averaging set.
Averaging and trading among all Otto-cycle heavy-duty engine families is
allowed. There are no subclass restrictions.
(ii) Gasoline-fueled heavy-duty vehicles certified under the
provisions of Sec. 86.085-1 (b) may not average or trade credits with
gasoline fueled heavy-duty Otto-cycle engines, but may average or trade
credits with light-duty trucks.
(2) For diesel cycle heavy-duty engines:
(i) Each of the three primary intended service classes for heavy-
duty diesel engines, as defined in Sec. 86.090-2, constitute an
averaging set. Averaging and trading among all diesel-cycle engine
families within the same primary service class is allowed.
(ii) Urban buses are treated as members of the primary intended
service class where they otherwise would fall.
(e) Averaging sets for particulate emission credits. The averaging
and trading of particulate emission credits will only be allowed between
diesel cycle heavy-duty engine families in the same averaging set and in
the same regional category. Engines produced for sale in California
constitute a separate regional category than engines produced for sale
in the other 49 states. Banking and trading are not applicable to
engines sold in California. The averaging sets for the averaging and
trading of particulate emission credits for diesel cycle heavy-duty
engines are defined as follows:
(1) Engines intended for use in urban buses constitute a separate
averaging set from all other heavy-duty engines. Averaging and trading
between diesel cycle bus engine families is allowed.
(2) For heavy-duty engines, exclusive of urban bus engines, each of
the three
[[Page 258]]
primary intended service classes for heavy-duty diesel cycle engines, as
defined in Sec. 86.090-2, constitute an averaging set. Averaging and
trading between diesel-cycle engine families within the same primary
service class is allowed.
(3) Otto cycle engines may not participate in particulate averaging,
trading, or banking.
(f) Banking of NOX and particulate emission credits:
(1) Credit deposits. (i) NOX and particulate emission
credits may be banked from engine families produced in any model year.
(ii) Manufacturers may bank credits only after the end of the model
year and after actual credits have been reported to EPA in the end-of-
year report. During the model year and before submittal of the end-of-
year report, credits originally designated in the certification process
for banking will be considered reserved and may be redesignated for
trading or averaging.
(2) Credit withdrawals. (i) After being generated, banked credits
shall be available for use within three model years following the model
year in which they were generated. Credits not used within the period
specified above shall be forfeited.
(ii) Manufacturers withdrawing banked emission credits shall
indicate so during certification and in their credit reports, as
described in Sec. 86.091-23.
(3) Use of banked emission credits. The use of banked credits shall
be within the averaging set and other restrictions described in
paragraphs (d) and (e) of this section, and only for the following
purposes:
(i) Banked credits may be used in averaging, or in trading, or in
any combination thereof, during the certification period. Credits
declared for banking from the previous model year but not reported to
EPA may also be used. However, if EPA finds that the reported credits
can not be proven, they will be revoked and unavailable for use.
(ii) Banked credits may not be used for NOX or
particulate averaging and trading to offset emissions that exceed an
FEL. Banked credits may not be used to remedy an in-use nonconformity
determined by a Selective Enforcement Audit or by recall testing.
However, banked credits may be used for subsequent production of the
engine family if the manufacturer elects to recertify to a higher FEL.
(g)(1) The following paragraphs assume NOX and
particulate nonconformance penalties (NCPs) will be available for the
1991 and later model year HDEs.
(2) Engine families using NOX and/or particulate NCPs but
not involved in averaging:
(i) May not generate either NOX or particulate credits
for banking and trading.
(ii) May not use either NOX or particulate credits from
banking and trading.
(3) If a manufacturer has any engine family to which application of
NCPs and banking and trading credits is desired, that family must be
separated into two distinct families. One family, whose FEL equals the
standard, must use NCPs only while the other, whose FEL does not equal
the standard, must use credits only.
(4) If a manufacturer has any engine family in a given averaging set
which is using NOX and/or particulate NCPs, none of that
manufacturer's engine families in that averaging set may generate
credits for banking and trading.
(h) In the event of a negative credit balance in a trading
situation, both the buyer and the seller would be liable.
(i) Certification fuel used for credit generation must be of a type
that is both available in use and expected to be used by the engine
purchaser. Therefore, upon request by the Administrator, the engine
manufacturer must provide information acceptable to the Administrator
that the designated fuel is readily available commercially and would be
used in customer service.
[55 FR 30627, July 26, 1990, as amended at 59 FR 14110, Mar. 25, 1994;
59 FR 50073, Sept. 30, 1994]