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LEGI-SLATE Report for the 106th Congress     Mon, August 16, 1999  8:00am (EDT) 
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           Q U I C K   F E D E R A L   R E G I S T E R  ( T E X T )             
                                  On 09/30/94                                   
                                                                                
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On 09/30/94                                                                     
[L-S document 503718, 59 FR 50042, 4476 lines]                                  
                                                                                
  ENVIRONMENTAL PROTECTION AGENCY                                               
                                                                                
  40 CFR Parts 9, 86 and 88                                                     
                                                                                
  [AMS-FRL-5002-7]                                                              
                                                                                
  Emission Standards for Clean-Fuel Vehicles and Engines, Requirements for      
  Clean-Fuel Vehicle Conversions, and California Pilot Test Program             
                                                                                
  AGENCY: Environmental Protection Agency (EPA).                                
                                                                                
  ACTION: Final rule.                                                           
                                                                                
  ----------------------------------------------------------------------------- 
                                                                                
  SUMMARY: The 1990 Clean Air Act Amendments require the establishment of two   
  clean-fuel vehicle programs: a Clean Fuel Fleet Program and a California      
  Pilot Test Program. Under the Clean Fuel Fleet Program, a percentage of new   
  vehicles acquired by certain fleet owners located in covered areas will be    
  required to meet clean-fuel fleet vehicle emission standards. Fleet owners    
  can comply with this requirement by purchasing new clean-fuel fleet vehicles, 
  by converting conventional vehicles to clean-fuel fleet vehicles, or by       
  acquiring "credits" pursuant to a credits program. Affected states are        
  required to revise their State Implementation Plans to implement the fleet    
  program, including provisions to implement a credit program and exempt clean- 
  fuel fleet vehicles from certain transportation control measures. Regulations 
  have already been promulgated for the credit program and transportation       
  control measures exemptions. Also, definitions of terms used with the Clean   
  Fuel Fleet program have recently been finalized. The other Clean Air Act      
  clean-fuel vehicle program is the California Pilot Test program. This program 
  requires manufacturers to sell light-duty clean-fuel vehicles in the state of 
  California. EPA has established a credit program for the California Pilot     
  Test Program in a separate rulemaking.                                        
                                                                                
    This action promulgates the statutory requirements that have not been       
  implemented to date. These include the emission standards for light-duty and  
  heavy-duty clean-fuel vehicles, regulations for the conversion of             
  conventional vehicles to clean-fuel fleet vehicles, manufacturer California   
  clean-fuel vehicles sales requirements under the California Pilot Test        
  Program, and a state opt-in program for the California Pilot Test Program.    
  The part of the conversion provisions addressing the sales volume limit       
  beyond which special small-volume manufacturer provisions will not apply,     
  will not become effective sooner than 60 days after publication and then only 
  if no adverse comment is received within 30 days of publication. If adverse   
  comment is received within 30 days of publication, EPA will withdraw this     
  part of the rule pending a full notice and comment process on this topic.     
                                                                                
  DATES: This regulation is effective October 31, 1994, except that 40 CFR      
  88.306-94(b)(3) will become effective on November 29, 1994, unless notice is  
  received on or before October 31, 1994, that adverse or critical comments     
  will be submitted. EPA will publish a timely document in the Federal Register 
  if the effective date is delayed for this reason. The effective date may also 
  be delayed if the information collection requirements contained in this       
  section have not been approved by the Office of Management and Budget. In     
  that case, EPA will publish a timely document in the Federal Register         
  delaying the effective date. The incorporation by reference of certain        
  publications listed in the regulations is approved by the Director of the     
  Federal Register as of October 31, 1994, except as specified elsewhere in     
  this DATES section. Sections 40 CFR 88.104-94 (b) and (d), 88.201-94 through  
  88.206-94, and 88.306-94(b) (1), (2), and (4) are not effective until the     
  Office of Management and Budget approves the information collection           
  requirements contained in them. EPA will publish a document in the Federal    
  Register once the information collection requirements are approved.           
                                                                                
  ADDRESSES: Comments on 40 CFR 88.306-94(b)(3) may be submitted to Docket No.  
  A-92-30 at the following address. Materials relevant to this proposal have    
  been placed in Docket Nos. A-92-30 (Clean Fuel Fleet Program) and A-92-69     
  (California Pilot Test Program) by EPA. The docket is located at: Air and     
  Radiation Docket and Information Center, Room M-1500, Waterside Mall, U.S.    
  Environmental Protection Agency, 401 M Street SW., Washington, DC 20460.      
  These dockets may be inspected between 8:30 a.m. and noon, and between 1:30   
  and 3:30 p.m. on weekdays. EPA may charge a reasonable fee for copying docket 
  materials. In addition, copies of the Summary and Analysis of Comments        
  document, which develops certain issues relevant to this final rulemaking,    
  may be obtained by request from the contact person below. This document       
  contains the Agency's response to the public comments received in regard to   
  the two Notices of Proposed Rulemaking (NPRM).                                
    Electronic copies of the preamble, regulations, Regulatory Impact Analysis, 
  Regulatory Support Document for heavy-duty clean-fuel vehicles, and the       
  Summary and Analysis of Comments for this rulemaking are available on the     
  Office of Air Quality Planning and Standards (OAQPS) Technology Transfer      
  Network Bulletin Board System (TTNBBS). Instructions for accessing TTNBBS and 
  downloading the above rulemaking files are described under SUPPLEMENTARY      
  INFORMATION in section I.A.                                                   
                                                                                
  FOR FURTHER INFORMATION CONTACT: Mr. Bryan Manning, U.S. EPA (SRPB-12),       
  Regulatory Development and Support Division, 2565 Plymouth Rd, Ann Arbor, MI  
  48105. Telephone (313) 741-7832.                                              
                                                                                
  SUPPLEMENTARY INFORMATION:                                                    
                                                                                
  I. Introduction                                                               
                                                                                
  A. Accessing Electronic Copies of Rulemaking Documents through the Technology 
  Transfer Network Bulletin Board System (TTNBBS)                               
                                                                                
    TTNBBS can be accessed using a dial-in telephone line (919-541-5742) and a  
  1200, 2400, 9600, or 14,400 bps modem. The parity of the modem should be set  
  to N or none, the data bits to 8, and the stop bits to 1. When first signing  
  on to the bulletin board, the user will be required to answer some basic      
  informational questions to register into the system. After registering,       
  proceed through the following options from a series of menus:                 
                                                                                
  OMS;                                                                          
  Rulemaking and Reporting;                                                     
  Alternative Fuels/Fleets;                                                     
  Clean Fuel Fleets or California Pilot Program.                                
                                                                                
    A list of ".ZIP" files will be displayed, all of which relate to the Clean  
  Fuel Fleet or California Pilot Program rulemakings. The above five documents  
  for the Emission Standards for Clean-Fuel Vehicles and Engines, Requirements  
  for Clean-Fuel Vehicle Conversions, and California Pilot Test Program         
  rulemaking will be listed in the form of ".ZIP" files and are identified by   
  the following titles:                                                         
                                                                                
  "CFF-PRE.ZIP" (Preamble)                                                      
  "CFF-REG.ZIP" (Regulations)                                                   
  "CFF-COM.ZIP" (Summary and Analysis of Comments)                              
  "CFF-RIA.ZIP" (Regulatory Impact Analysis)                                    
  "CFF-RSD.ZIP" (Regulatory Support Document for heavy-duty CFVs)               
                                                                                
    To download these files, type the instructions below and transfer according 
  to the appropriate software on your computer: <D</=ownload, <P</=rotocol,     
  <E</=xamine, <N</=ew, <L</=ist, <H</=elp or <ENTER</= to exit: D filename.ZIP 
    The user needs to choose a file transfer protocol appropriate for the       
  user's computer from the options listed on the terminal. The user's computer  
  is then ready to receive the file by invoking the user's resident file        
  transfer software. Programs and instructions for de-archiving compressed      
  files can be found under <S</=ystems Utilities from the top menu, under       
  <A</=rchivers/de-archivers.                                                   
    TTNBBS is available 24 hours a day, 7 days a week except Monday morning     
  from 8-12 EST, when the system is down for maintenance and backup. For help   
  in accessing the system, call the systems operator at 919-541-5384 in         
  Research Triangle Park, North Carolina, during normal business hours EST.     
                                                                                
  B. Background                                                                 
                                                                                
    The Clean Air Act (CAA) Amendments of 1990 (Public Law 101-549) added part  
  C to Title II of the CAA entitled, "Clean Fuel Vehicles". Under part C,       
  states are to establish clean fuel fleet programs (collectively called the    
  Clean Fuel Fleet (or CFF) program) in certain nonattainment areas and EPA is  
  to establish a clean-fuel vehicle (CFV) pilot program in the State of         
  California (the California Pilot Test program or Pilot program).              
    The purpose of the Clean Fuel Fleet Program is to introduce light- and      
  heavy-duty CFVs in specified "covered areas" with air quality problems. CAA   
  section 246(a)(2) defines a "covered area" for purposes of the fleet program  
  as an area having a 1980 population of 250,000 or more that is also (1) a     
  serious, severe, or extreme ozone nonattainment area (based on 1987-1989      
  data), or (2) a carbon monoxide (CO) nonattainment area with a CO design      
  value at or above 16.0 parts per million (based on 1988-1989 data).           
  Currently, there are 22 such areas in 19 states (Table 1).                    
                                                                                
           Table 1.--States and Areas Affected by the Clean-Fuel Fleet          
                                     Program                                    
                                                                                
               Affected area                            State(s)                
                                                                                
   1. Atlanta                             Georgia.                              
   2. Baltimore                           Maryland.                             
   3. Baton Rouge                         Louisiana.                            
   4. Beaumont-Port Arthur                Texas.                                
   5. Boston-Lawrence-Worcester (Eastern  Massachusetts, New Hampshire.         
    Massachusetts)                                                              
   6. Chicago-Gary-Lake County            Illinois, Indiana.                    
   7. Denver-Boulder                      Colorado.                             
   8. El Paso                             Texas.                                
   9. Greater Connecticut                 Connecticut.                          
   10. Houston-Galveston-Brazoria         Texas.                                
   11. Los Angeles-South Coast Air Basin  California.                           
   12. Milwaukee-Racine                   Wisconsin.                            
   13. New York-Northern New Jersey-Long  Connecticut, New Jersey, New York.    
    Island                                                                      
   14. Philadelphia-Wilmington-Trenton    Delaware, Maryland, New Jersey,       
                                           Pennsylvania.                        
   15. Providence (All Rhode Island)      Rhode Island.                         
   16. Sacramento Metro                   California.                           
   17. San Diego                          California.                           
   18. San Joaquin Valley                 California.                           
   19. Southeast Desert Modified AQMA     California.                           
   20. Springfield (Western               Massachusetts.                        
    Massachusetts)                                                              
   21. Ventura County                     California.                           
   22. Washington (District of Columbia)  Maryland, Virginia, District of       
                                           Columbia.                            
                                                                                
    These states are required to revise their State Implementation Plans (SIPs) 
  to ensure that "covered fleet" owners will include, through purchase or       
  lease, a minimum percentage of CFVs among the new vehicles they purchase for  
  their fleets. (A "covered fleet" is defined in CAA section 241 as a fleet of  
  ten or more motor vehicles which are owned or operated, leased, or otherwise  
  controlled by a single person.) Both private business and government          
  (federal, state, and local) fleets are subject to the statute. However,       
  certain fleets and vehicles are exempt from the regulations, including fleets 
  with vehicles that cannot be fueled at a central location, vehicles that are  
  normally garaged at a personal residence, or vehicles that belong to vehicle  
  classes without applicable CFV standards. (See the Definitions Rule: 58 FR    
  64679, December 9, 1993). In their SIP revisions, states must include         
  provisions to require that CFVs used in the clean fuel fleet program operate  
  on fuels on which they comply with the CFV standards.                         
    Covered fleet operaters can also meet the requirements by converting        
  conventional vehicles to CFVs, or by obtaining credits. CAA section 246(a)(3) 
  requires that all states containing all or part of an ozone and/or CO         
  nonattainment area described above that is reclassified in the future as a    
  serious, severe, or extreme ozone nonattainment area, or has a CO design      
  value at or above 16.0 parts per million, must prepare revised SIPs           
  implementing the CFF program within one year of reclassification.             
    Three vehicle classes are included in the CFF program: light-duty vehicles  
  (LDVs) and light-duty trucks (LDTs) up to 8,500 lbs GVWR,/1/ and heavy-duty   
  vehicles (HDVs) between 8,500 lbs and 26,000 lbs GVWR./2/ To qualify as a     
  CFV, a vehicle must meet one of three sets of increasingly stringent          
  standards. These are referred to as low-emission vehicle (LEV) standards,     
  ultra low-emission vehicle (ULEV) standards, and zero-emission vehicle (ZEV)  
  standards.                                                                    
    Note /1/ Gross Vehicle Weight Rating.                                       
    Note /2/ HDVs over 26,000 lbs GVWR are not included in the mandatory        
  program.                                                                      
                                                                                
    CAA section 242(a) requires EPA to promulgate CFV emission standards for    
  purposes of compliance with the CFF program and the Pilot program (LEV        
  standards). In addition, section 246(f)(4) requires EPA to promulgate         
  emission standards for purposes of the CFF program credit program (ULEV and   
  ZEV standards). Under section 249(d)(3), the CFF credit program standards     
  will also apply to the Pilot credit program. Therefore, vehicles that meet    
  ULEV or ZEV standards are eligible for vehicle purchase credits under the CFF 
  program and for manufacturers' credits under the Pilot program.               
    The CAA Amendments of 1990 require EPA to promulgate a Pilot program for    
  the sale of CFVs in the State of California. Whereas the CFF program will be  
  run by individual states, the Pilot program is a federal program that will be 
  administered in California. Manufacturers with motor vehicle sales in         
  California are required to sell a minimum number of light-duty CFVs (CFVs up  
  to 8,500 lbs. GVWR) in California on an annual basis. Manufacturers may meet  
  their share of required sales by selling the required number of CFVs or by    
  using earned credits or credits they have acquired from other manufacturers.  
  (EPA established the credits program in a previous rulemaking (57 FR 60038;   
  December 17, 1992)). To earn credits, a manufacturer may sell more CFVs than  
  required or sell CFVs which meet stricter exhaust emission standards. Except  
  for heavy LDTs, for model years 1996 through 2001, the compliance standards   
  for the Pilot program are known as the TLEV standards and credits are         
  available for LEV, ULEV and ZEV purchases. Beginning in 2001, the compliance  
  vehicle shifts to the LEV standards, and credits are only available for ULEV  
  and ZEV purchases. This provision commences in the 1998 model year for heavy  
  LDTs.                                                                         
    The CAA also directs EPA to establish a voluntary opt in program for states 
  that want to adopt the Pilot program. States which contain all or part of any 
  ozone nonattainment areas classified under subpart D of Title II as serious,  
  severe, or extreme are eligible to participate. To do so, states are to       
  revise their state implementation plans (SIPs) to include incentives for the  
  sale and use of CFVs as well as the production and distribution of clean      
  alternative fuels. States may not establish CFV sales or production mandates, 
  however.                                                                      
    The remainder of today's action covers light- and heavy-duty CFV exhaust    
  emission standards, requirements for vehicle conversions to CFVs, and the     
  Pilot program, as well as regulatory impacts of the CFF and Pilot programs.   
  In addition, EPA has included several technical amendments and clarifications 
  related to the Definitions rule (58 FR 64679) and the rulemaking for the CFF  
  credits program and transportation control measure exemptions (58 FR 11888;   
  March 1, 1993).                                                               
                                                                                
  II. Description of Action                                                     
                                                                                
  A. Clean-Fuel Vehicle Emission Standards                                      
                                                                                
    CAA section 242 requires EPA to promulgate regulations setting emission     
  standards and other requirements for CFVs. For LDVs and LDTs, EPA is required 
  to adopt the standards set forth in sections 242 and 243 unless it finds that 
  the standards of the California Air Resources Board LEV program are, in the   
  aggregate, at least as protective of public health and welfare as the federal 
  standards that would apply to CFVs. EPA cannot make such a finding at this    
  time so today's regulations adopt the standards set forth in the CAA.         
                                                                                
  1. Light-Duty Vehicle and Light-Duty Truck Clean-Fuel Vehicle Standards       
                                                                                
    a. Requirements of the CAA. Clean Air Act section 241(7) defines a CFV as a 
  vehicle that meets the emission standards applicable under part C of Title II 
  of the CAA. As discussed later in this preamble, CFVs will satisfy the        
  requirements of both the Pilot program and the CFF program. The CFV emission  
  standards for LDVs and LDTs are set forth in sections 242 and 243. (Standards 
  for heavy-duty CFVs under section 245 of the Act are discussed in II.A.2      
  below.) Any LDV, LDT, or HDV that can operate on only one fuel and that meets 
  these standards will be classified as a CFV regardless of the fuel that is    
  used to meet the CFV standards. However, a CFV in the CFF program must        
  operate on clean alternative fuels, as defined in section 241(2) of the Act,  
  when operating in the covered area.                                           
    Subsections 243(a) through (d) specify LDV and LDT exhaust emission         
  standards (50K and 100K miles) /3/ for the following pollutants: non-methane  
  organic gas (NMOG), carbon monoxide (CO), oxides of nitrogen (NOX), diesel    
  particulate matter (PM) (only for the 100,000 mile point), and formaldehyde   
  (HCHO). These standards are prescribed in two phases for LDVs and light LDTs  
  (up to 5,750 pounds loaded vehicle weight (LVW) and 6,000 pounds GVWR). Phase 
  I applies only to the Pilot program and takes effect with the 1996 model year 
  (MY), the first year of required sales under the Pilot program. These         
  statutory Phase I standards are numerically identical to those which define   
  the California Transitional Low Emission Vehicle (TLEV)./4/ The Phase I       
  standards apply to the Pilot program in MYs 1996 through 2001. Phase II       
  standards are identical to those which define the California Low Emission     
  Vehicle (LEV)./5/ The Phase II standards apply to the CFF program in MY 1998  
  and to the Pilot program beginning in MY 2001. Only one set of exhaust        
  emission standards applies to heavy LDTs (above 6,000 lbs. GVWR). These       
  standards take effect in MY 1998 and apply to both the CFF and the Pilot      
  program. Table 2 contains the TLEV and LEV standards for LDV and LDT CFVs.    
    Note /3/ The intermediate useful life for LDV and LDTs is 50,000 (50K)      
  miles. The full useful life for such vehicles is 100,000 (100K) miles.        
    Note /4/ The California TLEV standards are effective in model years 1994    
  through 1996.                                                                 
    Note /5/ The California LEV standards are effective in model years 1997     
  through 2003.                                                                 
                                                                                
    CAA part C section 241 specifies that definitions contained in part A,      
  section 216, shall apply to the CFV programs. The heavy LDT subcategories     
  (i.e., above 6,000 lbs. GVWR) shown in Table 2 are based on test weight. CAA  
  section 216(8) defines "test weight", or "TW", as the sum of the curb weight  
  and the GVWR divided by two:                                                  
                                                                                
  TW = (Curb weight + GVWR)/2 = ALVW                                            
                                                                                
  This definition was established in 40 CFR 86.129-94 by the federal Tier 1     
  rulemaking (56 FR 25724; June 5, 1991) and is referred to as "adjusted loaded 
  vehicle weight", or "ALVW". The Agency chose to use ALVW, as opposed to TW,   
  to minimize confusion with the term "equivalent test weight", which is used   
  interchangeably with "test weight" throughout current EPA motor vehicle       
  regulations and test procedures. Therefore, "test weight" defined in CAA      
  section 216(8) is referred to as ALVW in this Final Rule, which is consistent 
  with its definition established in the Tier 1 regulations.                    
                                                                                
        Table 2.-- Phase I and II LDV and LDT Clean Fuel Vehicle Emission       
                                    Standards                                   
                                                                                
                                                   Pollutant (grams/mile)       
                                                                                
         Standards (Effective Dates)          NMOG   CO     NOX    HCHO   PM/1/ 
                                                                                
  All LDVs; LDTs </=3750 lbs LVW; </=6000                                       
   lbs GVWR:                                                                    
                                                                                
  Phase I (1996 MY):                                                            
                                                                                
    50,000 miles                              0.125  3.4      0.4  0.015    ... 
    100,000 miles                             0.156  4.2      0.6  0.018   0.08 
                                                                                
  Phase II (1998 MY for CFFP; 2001 MY for Pilot program):                       
                                                                                
    50,000 miles                              0.075  3.4      0.2  0.015    ... 
    100,000 miles                             0.090  4.2      0.3  0.018   0.08 
  LDTs </=3750 and </=K5750 lbs LVW; </=6000                                    
   lbs GVWR:                                                                    
                                                                                
  Phase I (1996 MY):                                                            
                                                                                
    50,000 miles                              0.160  4.4      0.7  0.018    ... 
    100,000 miles                             0.200  5.5      0.9  0.023   0.08 
                                                                                
  Phase II (1998 MY for CFFP; 2001 MY for Pilot program):                       
                                                                                
    50,000 miles                              0.100  4.4      0.4  0.018    ... 
    100,000 miles                             0.130  5.5      0.5  0.023   0.08 
                                                                                
  LDTs </=6000 lbs GVWR (1998 MY):                                              
   </=3750 lbs ALVW:                                                            
    50,000 miles                              0.125  3.4   /2/0.4  0.015    ... 
    120,000 miles                             0.180  5.0      0.6  0.022   0.08 
   3750< LDTs </=65750 lbs ALVW:                                                
    50,000 miles                              0.160  4.4  /2/ 0.7  0.018    ... 
    120,000 miles                             0.230  6.4      1.0  0.027   0.10 
   5750< LDTs </=8500 lbs ALVW: /3/                                             
    50,000 miles                              0.195  5.0   /2/1.1  0.022    ... 
    120,000 miles                             0.280  7.3      1.5  0.032   0.12 
                                                                                
  /1/ Applicable to diesel-fueled vehicles only.                                
                                                                                
  /2/ Standards not applicable to diesel-fueled vehicles.                       
                                                                                
  /3/ Option of certifying HDEs in vehicles up to 10,000 lbs GVWR using the LDT 
  standards.                                                                    
                                                                                
    CAA section 242(c) lists the useful life and in-use testing limitations for 
  purposes of determining in-use compliance with the standards in section 243.  
  The useful life for CFVs is the same as adopted in EPA's regulations for 1994 
  and later model year LDVs and LDTs, commonly called Tier 1 standards (56 FR   
  25724, June 5, 1991). For LDVs and LDTs, the standards in section 243 are     
  established at the intermediate useful life of five years or 50,000 miles     
  (5/50,000), whichever occurs first, and a full useful life of 10 years or     
  100,000 miles (10/100,000), whichever occurs first (see Table 2). With        
  respect to in-use testing, however, section 242(c) provides that such testing 
  for these vehicle classes would not be done beyond seven years or 75,000      
  miles, whichever occurs first. The analogous intermediate and full useful     
  life levels for heavy LDTs are 5/50,000 and 11/120,000, respectively (see     
  Table 2). Similarly, section 242(c) provides that the in-use testing for      
  these vehicles would not be done beyond seven years or 90,000 miles,          
  whichever occurs first.                                                       
    While the standards described above apply to single fuel CFVs, subsection   
  243(d) also establishes different CFV NMOG standards for dual and flexible    
  fuel LDVs and LDTs./6/ These vehicles are to be certified to two sets of NMOG 
  standards (Table 3). One set contains the same NMOG levels that apply to      
  single fuel CFVs; dual and flexible fuel vehicles must meet this standard     
  when operating on the clean alternative fuel on which they are certified      
  (section 243(d)(2)). The second set of NMOG standards applies to flexible and 
  dual fuel vehicles when operated on conventional fuel for which they are      
  certified (section 243(d)(3))./7/ This second set of standards is, in effect, 
  equivalent to the next less stringent set of standards for the applicable     
  vehicle category and model year. For example, the Phase I NMOG standard for   
  flexible or dual fuel CFVs using conventional fuel is equivalent to the Tier  
  I non-methane hydrocarbon (NMHC) emissions standard./8/ The Phase II NMOG     
  standard for flexible or dual fuel CFVs using conventional fuel is equivalent 
  to the Phase I standard for single fuel CFVs. The NMOG standards for flexible 
  and dual fuel vehicles are listed in Table 3. Flexible or dual fuel vehicles  
  must comply with all other CFV exhaust standards shown in Table 2 and with    
  all other applicable requirements of Title II.                                
    Note /6/ Dual fuel vehicle is defined as any motor vehicle or motor vehicle 
  engine engineered and designed to be operated on two different fuels, but not 
  on a mixture of the fuels. The term "bi-fuel" is often used for this type of  
  design. Flexible fuel vehicle is defined as any motor vehicle or motor        
  vehicle engine engineered and designed to be operated on any mixture of two   
  or more different fuels. The term "variable-fuel" is often used for this type 
  of design. These definitions are contained in section Sec. 88.102-94 of the   
  regulatory text.                                                              
    Note /7/ CAA section 241 requires that dual and flexible fuel vehicles are  
  to operate on the fuels on which they are certified. As discussed in the CFF  
  credit program and TCM exemptions rulemaking (58 FR 11888, March 1, 1993),    
  dual and flexible fuel vehicles shall operate only on the clean alternative   
  fuel on which they are certified to the CFV standards when operating in a     
  covered area, as provided in section 246(a)(2).                               
    Note /8/ NMOG and NMHC emissions are essentially equivalent when the fuel   
  combusted is conventional gasoline.                                           
                                                                                
                Table 3.--NMOG Standards for Flexible- and Dual-                
                                 Fueled Vehicles                                
                                                                                
                                                Standard/1/ (g/mi)              
                                                                                
                   Vehicle subclass           50,000mi     100,000mi            
                                                                                
            LDVs, LDTs (</=6000 lbs GVWR):                                      
                                                                                
            Beginning MY 1996 for Pilot program:                                
                                                                                
              LDTs (0-3,750 lbs. LVW), LDTs   0.125/0.25   0.156/0.31           
              LDTs (3,751-5,750 lbs. LVW)     0.160/0.32   0.200/0.40           
                                                                                
            Beginning MY 1998 for CFFP; MY 2001 for Pilot program:              
                                                                                
              LDTs (0-3,750 lbs. LVW), LDVs  0.075/0.125  0.090/0.156           
              LDTs (3,751-5,750 lbs. LVW)    0.100/0.160  0.130/0.200           
            LDTs (</=6,000 lbs GVWR):                                           
                                                                                
            Beginning MY 1998:                                                  
                                                                                
              LDTs (0-3,750 lbs. ALVW)        0.125/0.25   0.180/0.36           
              LDTs (3,751-5,750 lbs. ALVW)    0.160/0.32   0.230/0.46           
              LDTs (</=5,750 lbs. ALVW)       0.195/0.39   0.280/0.56           
                                                                                
            /1/ The standards are presented for flexible- and dual-             
            fueled CFVs when operating on clean alternative fuel and            
            conventional fuel in the format "x/y" where x represents            
            the NMOG standard when the vehicle is operated on a clean           
            alternative fuel and y represents the NMOG standard when            
            the vehicle is operated on a conventional fuel.                     
                                                                                
    CAA section 246(f)(4) directs EPA to establish additional CFV standards for 
  ULEVs and ZEVs (discussed earlier). These standards, shown in Table 4, should 
  be more stringent than the CFV standards in section 243. Vehicles meeting     
  these more stringent standards are eligible to earn credits which may be used 
  toward compliance under the CFF program or the Pilot program, as specified in 
  sections 246(f) and 249(d)(3), respectively. The Act requires EPA to set      
  these more stringent standards for LDVs and LDTs so that they conform "as     
  closely as possible" to the ULEV and ZEV standards established by California  
  for vehicles in the same class. The California ULEV and ZEV standards are     
  described below in section A.1.b. in this preamble.                           
                                                                                
        Table 4.--LDV and LDT Clean Fuel Vehicle ULEV Emission Standards        
                                                                                
                                                    Pollutant (grams/mile)      
                                                                                
                                                                            PM  
               Vehicle category                NMOG   CO     NOX    HCHO   /1/  
                                                                                
  LDVs & LDTs </=3750 lbs LVW; </=6000 lbs                                      
   GVWR                                                                         
    50,000 miles                               0.040  1.7      0.2  0.008  0.08 
    100,000 miles                              0.055  2.1      0.3   .011  0.04 
  LDTs >3750 and </=5750 lbs LVW; </=6000 lbs                                   
   GVWR:                                                                        
    50,000 miles                               0.050  2.2      0.4  0.009  0.08 
    100,000 miles                              0.070  2.8      0.5  0.013  0.04 
  LDTs </=6000 lbs GVWR (1998 MY):                                              
   </=3750 lbs ALVW:                                                            
    50,000 miles                               0.075  1.7      0.2  0.008       
    120,000 miles                              0.107  2.5  /2/ 0.3  0.012  0.04 
  3750< LDTs </=5750 lbs ALVW:                                                  
    50,000 miles                               0.100  2.2      0.4  0.009       
    120,000 miles                              0.143  3.2  /2/ 0.5  0.013  0.05 
  5750< LDTs </=8500 lbs ALVW: /3/                                              
    50,000 miles                               0.117  2.5      0.6  0.011       
    120,000 miles                              0.167  3.7  /2/ 0.8  0.016  0.06 
                                                                                
  /1/ Applies to diesel vehicles only.                                          
                                                                                
  /2/ Does not apply to diesel vehicles.                                        
                                                                                
  /3/ Option of certifying HDEs in vehicles up to 10,000 lbs GVWR using the LDT 
  standards.                                                                    
                                                                                
    CAA section 242(b) states that CFVs up to 8,500 lbs. GVWR "shall comply     
  with all motor vehicle requirements of this title (i.e., on-board             
  diagnostics, evaporative emissions, etc.) which are applicable to             
  conventional gasoline-fueled vehicles of the same category and model year,    
  except as provided in section 244 with respect to administration and          
  enforcement, and except to the extent that any such requirement is in         
  conflict with the provisions of" part C. These include, but are not limited   
  to, standards for cold temperature CO exhaust emissions (cold CO), on-board   
  diagnostics (OBD), evaporative emission controls (evap), and onboard          
  refueling vapor recovery (ORVR). Previous requirements such as crankcase      
  controls and vehicle labeling also apply.                                     
    CAA section 243(e) directs EPA to apply the standards of the California Air 
  Resources Board (CARB) LEV program in lieu of the standards otherwise         
  applicable to CFVs under sections 242 and 243 if the CARB standards are, in   
  the aggregate, at least as protective of public health and welfare as the     
  federal standards that apply to CFVs. Section 243(e)(1) addresses the         
  replacement of CAA standards if CARB promulgates a single set of standards    
  while section 243(e)(2) addresses the replacement if CARB promulgates         
  multiple sets of standards. CARB's LEV program contains multiple sets of      
  standards to which vehicles can certify (i.e., LEV, ULEV, and ZEV);           
  therefore, section 243(e)(2) is the appropriate language for consideration    
  and is provided below:                                                        
                                                                                
    Section 243(e)(2): If the State of California promulgates regulations       
  establishing and implementing several different sets of standards applicable  
  in California pursuant to a waiver approved under section 209 to any category 
  of vehicles referred to in subsection (a), (b), (c), or (d) of this section   
  and each of such sets of California standards is, in the aggregate, at least  
  as protective of public health and welfare as the otherwise applicable        
  standards set forth in section 242 and subsection (a), (b), (c), or (d) of    
  this section, such standards shall be treated as 'qualifying California       
  standards' for purposes of this paragraph. Where more than one set of         
  qualifying standards are established and administered by the State of         
  California, the least stringent set of qualifying California standards shall  
  apply to the clean-fuel vehicles concerned in lieu of the standards otherwise 
  applicable to such vehicles under section 242 and this section.               
                                                                                
    EPA believes that the required comparison between the federal and CARB      
  standards is not limited to the CFV exhaust emission standards of sections    
  242 and 243 but must also include the other Title II standards referred to in 
  CAA section 242 (i.e., OBD, evap, etc.) and any California counterparts.      
  Thus, EPA is required to compare the standards in CAA sections 242(b) and 243 
  with the CARB standards to determine whether the CARB standards should        
  replace the federal standards.                                                
    As is discussed below in Section II.c., EPA cannot at this time make the    
  determination that each set of CARB standards is, in the aggregate, at least  
  as protective as the federal standards that apply to CFVs. Therefore, this    
  final rule promulgates the emission standards and requirements for CFVs found 
  in sections 242 and 243 of the CAA. EPA's reasoning to support this           
  conclusion is included in Section II.c.                                       
    Finally, CAA section 244 provides requirements regarding the administration 
  and enforcement of CFV exhaust emission standards. In the event that          
  numerical emission standards for CFVs up to 8,500 lbs. GVWR are the same      
  under the federal and California LEV program, EPA is to administer and        
  enforce those standards in the same manner and with the same flexibility as   
  CARB does under the California LEV program. This requires utilizing the same  
  interpretations and policy judgments including, but not limited to,           
  requirements regarding certification, production-line testing, and in-use     
  compliance. The application of California's administration and enforcement    
  practices does not depend on whether EPA replaces federal requirements with   
  California requirements under section 243(e). If the Administrator determines 
  that adopting California's administration and enforcement approaches would    
  not meet the criteria for a waiver under section 209, then federal            
  administration and enforcement procedures and interpretations would apply.    
    b. CARB's Low-Emission Vehicle Standards. Pursuant to CAA section 209, the  
  State of California applied to EPA for a waiver on October 4, 1991 for its    
  "Low-Emission Vehicle and Clean Fuels Regulations". EPA granted the waiver on 
  January 7, 1993 (58 FR 4166, January 13, 1993). (Although states are          
  generally preempted by CAA section 209 from adopting their own motor vehicle  
  standards, California may adopt its own standards provided that EPA waivers   
  the preemption provision of section 209.)                                     
    California's regulations establish four new levels of vehicle emission      
  standards, termed "vehicle emission categories", for LDVs, LDTs, and medium-  
  duty trucks (MDTs)./9/ These new standards are effective with 1994 model year 
  vehicles./10/ The California emission categories are, in order of increasing  
  stringency: TLEV (Transitional Low Emission Vehicle); LEV (Low Emission       
  Vehicle); ULEV (Ultra Low Emission Vehicle); and ZEV (Zero Emission Vehicle). 
  The TLEV exhaust emission standards for NMOG, CO, NOX, PM, and HCHO are       
  identical to the federal Phase I CFV standards described above. The LEV       
  exhaust emission standards are identical to the federal Phase II CFV          
  standards. The California ULEV and ZEV standards are the same as the federal  
  ULEV and ZEV categories, established for purposes of the CFF and Pilot        
  program credit programs. CARB defines a ZEV as:                               
                                                                                
    Note /9/ The medium-duty truck class is a vehicle class unique to CARB and  
  includes trucks between 6,000 and 14,000 lbs GVWR.                            
    Note /10/ See CARB's Proposed Regulations for Low-Emission Vehicles and     
  Clean Fuels, Staff Report, available in EPA Air Docket A-91-23.               
                                                                                
    * * * any vehicle which is certified * * * to produce zero emissions of any 
  criteria pollutants under any and all possible operational modes and          
  conditions. A ZEV may be equipped with a fuel fired heater provided that the  
  fuel fired heater cannot be operated at ambient temperatures above 40 degrees 
  Fahrenheit and the heater is demonstrated to have zero evaporative emissions  
  under any and all possible operational modes and conditions./11/              
    Note /11/ California Code of Regualtions, Title 13, Definitions Section,    
  Paragraph 15.                                                                 
                                                                                
    CARB is allowing the use of intermediate in-use compliance standards that   
  are intended to facilitate compliance by vehicle manufacturers. These in-use  
  standards are numerically half way between the certification standards of the 
  new emission category and the old emission category (e.g., half way between   
  TLEV and LEV standards). These intermediate standards will be effective       
  through MY 1995 for TLEVs and through MY 1998 for LEVs and ULEVs.             
    c. Comparison of CAA and CARB Requirements. As discussed above, CAA section 
  243(e) provides that CARB's standards shall replace the federal CFV and other 
  motor vehicle standards if the CARB standards are, in the aggregate, at least 
  as protective of public health and welfare as the CAA standards. While EPA    
  believes that Congress preferred that the statutory standards be replaced     
  with the CARB standards, EPA cannot at this time make the determination that  
  CARB standards are, in the aggregate, at least as protective as the federal   
  standards. Therefore, as mentioned earlier, EPA is at this time establishing  
  federal standards that will apply to CFVs in the CFF and Pilot program.       
    As stated in the proposal, EPA believes that section 243(e)(2) requires a   
  separate comparison of federal Phase I and Phase II standards to CARB         
  standards. For the least stringent set of federal CFV standards (the Phase I  
  standards), the appropriate comparison is to the least stringent set of       
  California CFV standards (the TLEV standards). Similarly, the appropriate     
  comparison for the federal Phase II standards is with the California LEV      
  standards.                                                                    
    The Phase I standards will apply to the Pilot program in the 1996 MY. The   
  phase II standards will apply to the CFF program in the 1998 MY, and to the   
  Pilot program in the 2001 MY. Therefore, the federal Phase I standards will   
  not apply to any federal CFV program after MY 2001. For this reason, EPA      
  considers the California LEV standards to be the least stringent set of       
  qualifying California standards after MY 2001, and currently intends to apply 
  the California LEV standard to the CFF and Pilot programs at that time if     
  replacement of the federal Phase II standards is warranted under section      
  243(e)(2). EPA requested comment in the proposal on this interpretation of    
  the CAA and no adverse comments were received.                                
    EPA must also compare CARB standards to the following federal requirements  
  that apply to CFVs to assess whether "each of such sets of California         
  standards is, in the aggregate, at least as protective" as the federal        
  standards: cold CO emissions, evaporative emissions, onboard refueling vapor  
  recovery, on-board diagnostics, total hydrocarbons, and non-methane           
  hydrocarbon standards. These standards are compared individually below.       
    i. Cold CO emissions. The currently waived California program does not have 
  a cold CO standard which corresponds to the federal cold CO standard. It is   
  not yet possible for EPA to consider CARB's cold CO standards in its          
  comparison of the respective mobile source programs since California has not  
  yet requested nor received a waiver.                                          
    In vehicles using liquid fuel, the difficult process of vaporizing cold     
  liquid fuel for combustion contributes significantly to cold start emissions. 
  Gasoline vehicles are most susceptible to this phenomenon in cold conditions. 
  On July 17, 1992, EPA promulgated a cold CO standard (57 FR 31888, 40 CFR     
  86.201) in order to control CO emissions from gasoline-powered vehicles when  
  operating in cold temperatures./12/ These regulations became effective for MY 
  1994. Although these regulations cover only gasoline-fueled vehicles, CAA     
  section 242(b) extends the regulations to all CFVs regardless of fuel type by 
  requiring that CFVs meet all federal requirements of Title II of the CAA that 
  apply to gasoline vehicles of the same category and model year.               
    Note /12/ CAA Section 202(j) contains provisions for cold CO requirements.  
                                                                                
    On January 14, 1993, CARB approved a cold CO standard which became          
  effective in September 1993. CARB's regulations include gasoline-fueled, LPG, 
  and alcohol-fueled vehicles, but do not cover other fuels. EPA is not able at 
  this time to consider the CARB cold CO regulations because CARB has not       
  requested nor received a waiver of federal preemption for its cold CO         
  requirements.                                                                 
    ii. Evaporative emissions. The currently waived CARB evaporative emission   
  standards and test procedures are not comparable to the recently promulgated  
  federal evaporative emission standards and test procedures. Current federal   
  regulations for evaporative emissions testing are effective through MY 1995,  
  after which new federal regulations will be phased in. California has two     
  sets of new evaporative emissions regulations: one set will be implemented    
  only for 10 percent of California's MY 1995 vehicles and the second set,      
  which CARB is in the process of finalizing at this time, will be phased in    
  beginning in MY 1996. Indications are that CARB will seek a waiver for their  
  1996 evaporative emission regulations once they are finalized. EPA cannot yet 
  consider CARB's revised evaporative emission regulations applicable to the    
  1995 and later model years because CARB has not yet received a waiver for     
  them.                                                                         
    iii. Refueling emissions. Based on the currently waived California program, 
  EPA cannot at this time conclude that CARB's refueling emission control       
  regulations are as stringent as the federal onboard refueling vapor recovery  
  (ORVR) standards. The currently waived California Program does not have a     
  mobile source component which addresses refueling emissions. Federal Title II 
  standards for ORVR will be required on certain vehicles beginning in MY 1998  
  (59 FR 16262; April 6, 1994)./13/ CARB, which currently requires the use of   
  Stage II vapor recovery equipment at most service stations in California, has 
  held two workshops to discuss the proper application of refueling control     
  (November 2, 1993 and March 15, 1994). CARB considered three options:         
  adopting the federal ORVR regulations,; adopting a California-specific ORVR   
  rule, test, or standard; or maintaining that California's current motor       
  vehicle control program is, in the aggregate, at least as protective as the   
  federal program notwithstanding the lack of ORVR controls. In a recent CARB   
  mailout (94-27) dated May 27, 1994, ARB staff announced their proposal to     
  allow the certification of ORVR-equipped vehicles for sale in California.     
  However, the ARB staff did not address the equipped vehicles for sale in      
  California. However, the ARB staff did not address the specific issue of      
  whether ARB will require ORVR controls for certification. California's final  
  determination regarding ORVR control must ultimately be approved by the Air   
  Resources Board.                                                              
    Note /13/ The phase-in schedule requires that ORVR standards apply to 40    
  percent of each manufacturer's LDV sales volume in MY 1998, 80 percent in     
  1999, and 100 percent in MY 2000. The same phase-in schedule applies to LDTs  
  up to 8,500 lbs. GVWR but will not begin until MY 2001 for LDTs up to 6,000   
  lbs. GVWR and in MY 2004 for LDTs between 6,001 and 8,500 lbs. GVWR. The      
  requirements do not apply to vehicles above 8,500 lbs. GVWR.                  
                                                                                
    EPA is likely to consider California's lack of an ORVR aspect of its        
  program in the next section 209 waiver proceeding for CARB regulations        
  applicable to model years 1998 and later. EPA will likely decide in that      
  context whether California's motor vehicle program absent ORVR is at least as 
  protective of California as the federal program.                              
    iv. Volatile organic compound emissions. EPA and California use different   
  approaches to regulate emissions of volatile organic compounds (VOCs) from    
  vehicles. Therefore, EPA believes it is useful to compare California VOC      
  emission standards to the analogous federal standards on a fuel-by-fuel       
  basis, as presented below. For gasoline- and diesel-fueled vehicles, EPA      
  concludes that the CARB VOC emission standards are individually at least as   
  stringent as the federal standards. However, EPA cannot make this comparison  
  for gaseous and alcohol fuels at this time because CARB has not yet finalized 
  RAFs (reactivity adjustment factors) for these fuels.                         
    v. Fuel-by-fuel comparison. As stated above, EPA and CARB use different     
  approaches to establish VOC emission standards. Traditionally, federal        
  organic emissions controls have been based on total hydrocarbon (THC)         
  emissions where mass of THC emissions is measured by a flame ionization       
  detector (FID), implicitly assuming that all hydrocarbon emissions behave     
  similarly with respect to ozone reactivity and FID response. This approach is 
  not used for methanol-fueled vehicles because emissions from these vehicles   
  consist primarily of methanol and formaldehyde, and a FID will only detect    
  about 70 to 80 percent of the methanol and very little of the formaldehyde.   
  For methanol-fueled vehicles, the methanol and formaldehyde emissions are     
  sampled separately and measured chromatographically while other emissions are 
  measured by a FID. The oxygen mass is factored out of the methanol and        
  formaldehyde emissions resulting in "equivalent hydrocarbon emissions", which 
  are then summed with the other FID-measured hydrocarbons to yield organic     
  material (or total) hydrocarbon equivalent (OMHCE or THCE) mass. A third      
  approach involves separately measuring methane and subtracting it from the    
  THC to result in a non-methane hydrocarbon (NMHC) mass. For methanol-fueled   
  vehicles, NMHC is equivalent to OMNMHCE (organic material non-methane         
  hydrocarbon equivalent) or NMHCE (non-methane hydrocarbon equivalent).        
    The CAA has established THC and NMHC exhaust emission standards for         
  conventional light-duty gasoline and diesel vehicles (0.41 g/mile for THC and 
  0.25 g/mile for NMHC). EPA has also established OMHCE and OMNMHCE standards   
  for methanol-fueled vehicles (0.41 and 0.25 g/mile, respectively), an NMHC    
  standard for CNG-fueled vehicles (0.25 g/mile), and THC and NMHC standards    
  for LPG-fueled vehicles identical to the gasoline THC and NMHC standards./14/ 
    Note /14/ EPA Gaseous Fuels Rule: "Standards for Emissions from Natural     
  Gas-Fueled, and Liquified Petroleum Gas-Fueled Motor Vehicles and Motor       
  Vehicle Engines and Certification Procedures for Aftermarket Conversion       
  Hardware." (Published in the Federal Register on September 21, 1994).         
                                                                                
    CARB measures VOC emissions as non-methane organic gases (NMOG). Under this 
  approach, the mass of each organic compound except methane is measured and    
  adjusted according to its ozone-forming reactivity relative to gasoline       
  emissions. The sum of these adjusted masses is the amount of NMOG emitted     
  from the vehicle. An alternative CARB NMOG method involves measuring the      
  total mass of organic emissions and multiplying this mass by a single RAF for 
  the particular fuel used. A RAF is equivalent to the ratio of the ozone-      
  forming potential of emissions from a given fuel and the ozone-forming        
  potential of conventional gasoline emissions. CARB determines a RAF for each  
  fuel. Therefore, the relative stringency of the CARB and EPA standards for    
  organic emissions should be compared for each fuel individually.              
                                                                                
  Gasoline and Diesel Fuel                                                      
                                                                                
    For gasoline- and diesel-fueled vehicles, NMHC and NMOG standards are       
  equivalent since CARB has established a RAF of 1.0 for these fuels. In        
  addition, since the methane fraction of the THC emissions from these vehicles 
  is very low,/15/ and since CARB's TLEV and LEV NMOG standards (.125 and .075  
  g/mile, respectively) are well below the federal THC standard (0.41 g/mile),  
  vehicles designed to meet the CARB NMOG standard will not exceed the federal  
  THC standard. Thus, for gasoline- and diesel-fueled vehicles, the CARB NMOG   
  standards are at least as stringent as the federal THC and NMHC standards.    
    Note /15/ U.S. Environmental Protection Agency, Office of Mobile Sources,   
  "Specifications for S.A.I. Runs," Memorandum from Chris Lindhjem, Penny       
  Carey, and Joe Somers to the Record, April 24, 1992.                          
                                                                                
  CNG Fuel                                                                      
                                                                                
    The equivalency of CARB's NMOG standard with the federal NMHC standards     
  cannot be strictly determined at this point for natural gas vehicles since    
  CARB has not finalized a RAF for natural gas. Indications are that CARB may   
  enact a CNG RAF between 0.5 and 0.6. If CARB adopts a RAF of 0.5 or more,     
  then EPA expects that the CARB TLEV NMOG standard of 0.125 grams/mile         
  (representing the least stringent set of CARB standards) will be at least as  
  stringent as the 0.25 grams/mile federal NMHC standard. A RAF of 0.3 or more  
  would make the CARB LEV NMOG standard of 0.075 grams/mile equivalent to the   
  federal NMHC standard.                                                        
    CNG vehicles being certified as CFVs for use in the CFF and Pilot program   
  will not be subject to the federal THC standard, therefore, a comparison of   
  the relative stringency between the federal THC and the CARB NMOG standard is 
  not appropriate. In the Pilot program NPRM (58 FR 34727, June 29, 1993), EPA  
  requested comment on the appropriateness of applying a THC standard to        
  natural gas CFVs even though a THC standard is not applied to other natural   
  gas vehicles. EPA believes that requiring CNG vehicles to meet the federal    
  THC standard would exclude CNG vehicles from participating in the CFF and     
  Pilot programs. CNG vehicles do produce high methane emissions; however,      
  these emissions have a very low ozone reactivity and are therefore not a      
  significant contributor to ozone formation, which is a primary objective of   
  both programs./16/ In addition, CNG vehicles typically produce lower NMHC     
  emissions than gasoline-fueled vehicles. Therefore, although a THC standard   
  would strictly limit the amount of methane emissions a CNG vehicle could      
  emit, this result would be contrary to the ozone-reduction goals of the       
  programs when methane reactivity and lower NMHC emissions of CNG vehicles     
  relative to gasoline-fueled vehicles are considered. A further consideration  
  in deciding whether to apply a THC standard to CNG CFVs was the Agency's      
  desire to maintain consistency with its Gaseous Fuels rule whenever possible; 
  that rule also does not apply THC standards to CNG vehicles. Commenters were  
  not supportive of CNG vehicles, including CFVs, being subject to a THC        
  standard.                                                                     
    Note /16/ See CAA sections 246, 247, and 248.                               
                                                                                
  LPG Fuel                                                                      
                                                                                
    CARB has not finalized a RAF for LPG fuel. Therefore, EPA cannot at this    
  time strictly compare the CARB NMOG standard to the federal NMHC standard for 
  LPG vehicles. However, as with CNG, if CARB adopts a RAF of at least 0.5, EPA 
  expects that the CARB TLEV and LEV NMOG standard will be individually at      
  least as stringent as the federal NMHC standard.                              
                                                                                
  Alcohol Fuels                                                                 
                                                                                
    CARB has finalized a RAF of 0.41 for M85 vehicles and EPA's analysis        
  indicates that the CARB NMOG standard is individually as protective as the    
  federal NMHC equivalent standard for M85 fuel. However, CARB has not          
  established a RAF for E85 and M100 fuel. EPA thus cannot determine at this    
  time whether the CARB NMOG standards are individually as protective of public 
  health and welfare as the federal NMHC equivalent standards for all alcohol-  
  fueled vehicles.                                                              
    Regarding THC, methane emissions from alcohol-fueled vehicles, as with      
  gasoline- and diesel-fueled vehicles, are generally low enough that vehicles  
  meeting the CARB NMOG standards would also comply with the federal THC        
  standards. Therefore, EPA concludes that the CARB NMOG standards are          
  individually at least as stringent as the federal THC standard.               
    vi. Onboard diagnostics. The currently waived California onboard diagnostic 
  I (OBD I) regulation is not comparable to the recently promulgated federal    
  OBD regulation ( 58 FR 9468, February 19, 1993). The recently promulgated     
  federal OBD regulation is comparable to the recently revised California OBD   
  II regulation. In fact, EPA has decided that vehicles demonstrating           
  compliance with CARB onboard diagnostic (OBD) regulations will be deemed to   
  satisfy federal OBD requirements through the 1998 model year. However, EPA    
  cannot properly consider California's OBD II regulations under section 243(e) 
  of the CAA because California has not yet received a waiver of federal        
  preemption for them. Thus, in subsequent model years after 1998, vehicle OBD  
  systems must comply with the federal OBD requirements.                        
    vii. Summary. While the basic CFV exhaust standards are identical to CARB   
  standards, EPA is not able to find that each set of currently waived CARB     
  standards are as protective as the federal standards. By comparison to the    
  federal program established for CFVs today pursuant to section 242 and 243,   
  the California program lacks comparable components for at least the federal   
  cold CO standards, recently promulgated evaporative emission standards and    
  on-board diagnostics, as well as mobile source control for vehicle refueling  
  vapor recovery. Since EPA cannot at this time make the required determination 
  under section 243(e)(2), EPA is promulgating federal standards and            
  requirements in this final rule that will apply to CFVs. The CAA exhaust      
  standards will apply to clean fuel vehicles, and will be administered and     
  enforced according to CARB practices under CAA section 244, which is          
  discussed later under "Administration and Enforcement".                       
    Pursuant to section 242(b), federal requirements for cold CO, evaporative   
  emissions, refueling emissions, OBD (onboard diagnostics), NMHC, and, with    
  certain exceptions, THC will also apply to CFVs. As proposed, EPA is waiving  
  testing requirements for the cold CO standards for gaseous-fueled, diesel-    
  fueled and electric CFVs when manufacturers demonstrate compliance with the   
  cold CO standard through engineering analysis or test data./17/ EPA does not  
  expect problematic cold temperature CO emissions from gaseous-fueled CFVs     
  since they do not generally use fuel enrichment strategies to aid with cold   
  starts. Because of efficient combustion in diesel-fueled vehicles and the     
  minimal emissions inherent with electric vehicles, EPA does not expect        
  problematic cold CO emissions from these vehicles either. Also as discussed   
  above, EPA will not require CNG vehicles to meet the THC standard due to the  
  conflict with provisions of part C of the Act and other factors.              
    Note /17/ This provision is similar to the requirements for Otto-cycle      
  vehicles which must show compliance with a PM standard in the Tier 1          
  rulemaking (56 FR 25730).                                                     
                                                                                
    In the NPRM, EPA had anticipated that the regulatory processes underway     
  would allow EPA to conclude at the time of this final rule that each set of   
  California standards is, in the aggregate, at least as protective of public   
  health and welfare as the otherwise applicable standards set forth in section 
  242 and 243. The Agency still believes that such a conclusion may be possible 
  in the future. EPA will continue to monitor developments on these issues and, 
  if changing circumstances warrant, EPA intends to revisit this rule and       
  propose replacing the federal CFV standards with CARB standards under section 
  243(e)(2). In such a situation, the Agency will supplement the record and     
  provide an opportunity for comment as appropriate.                            
    d. Credit Generating Standards. As mentioned previously, the CAA requires   
  EPA to establish standards for Ultra-Low Emission Vehicles (ULEVs) and Zero   
  Emission Vehicles (ZEVs) which are more stringent than the standards that     
  otherwise apply to CFVs. Section 246(f)(4) of the CAA states that, "[t]he     
  standards established by the Administrator under this paragraph for vehicles  
  under 8,500 lbs. GVWR or greater shall conform as closely as possible to      
  standards which are established by the State of California for ULEV and ZEV   
  vehicles in the same class". As proposed, EPA is promulgating the ULEV and    
  ZEV standards established by CARB in the California LEV program as the        
  federal ULEV and ZEV standards. Section 249(d)(3) specifies that these and    
  other requirements established for purposes of the credit program for the     
  Clean Fuel Fleet program shall also apply for purposes of issuing credits in  
  the Pilot Program.                                                            
    A ZEV (e.g., an electric vehicle) is defined as a vehicle that complies     
  with the applicable ZEV standards (40 CFR 88.101). Like CARB, EPA will        
  determine compliance with the ZEV standard through engineering analysis       
  rather than by testing. As per section 244 of the CAA, the federal ZEV        
  standards will be administered and enforced in accordance with applicable     
  CARB procedures for LDVs and LDTs.                                            
    Consistent with the CARB, EPA is establishing ZEV standards which require   
  zero emissions of the following pollutants: NMOG, NOx, CO, particulates, and  
  HCHO. (Emissions from non-fuel sources, like tires, seats, paint, etc., will  
  likely exist as they do for conventional vehicles and other CFVs.) Compliance 
  with this requirement may be assessed through engineering analysis. This      
  analysis will include a description and analysis of all primary or auxiliary  
  equipment and engines which concludes that no emissions of the stated         
  pollutants is possible. The engineering analysis will determine that the      
  vehicle fuel system(s) does not contain either carbon or nitrogen compounds   
  (including air) which, when burned, form the above regulated exhaust          
  emissions. Such criteria will also assure that evaporative emissions will not 
  occur. Emission testing will not be necessary. When applicable, compliance    
  testing on ZEVs may be performed according to the testing requirements of CFR 
  Part 86 and 88 (Federal Test Procedure) at EPA's discretion. As with other    
  CFVs, ZEVs will be subject to the standards of part 88 which will be          
  administered per CARB's procedures for LDVs and LDTs and which are            
  incorporated by reference.                                                    
    Like CARB, EPA will consider a vehicle with an auxiliary heater to be a ZEV 
  if the heater will not operate at ambient temperatures above 40 degrees       
  Fahrenheit and the heater's power and/or fuel source does not have any        
  evaporative emissions in use. Commenters responding to this issue supported   
  this definition, on which EPA requrested comment in the NPRM. This auxiliary  
  heater will not be subject to the cold CO standard (contained in 40 CFR Part  
  86.201-94) because the cold CO regulations do not require the testing of      
  heaters. In addition, CARB has provided a specific exemption for ZEVs from    
  the CARB cold CO requirements (whether or not the vehicle is equipped with an 
  auxiliary heater); thus EPA's action on this issue is consistent with CARB's  
  approach. EPA may reconsider subjecting ZEV auxiliary heaters to the federal  
  cold CO requirement through regulation if circumstances warrant in the        
  future. Any vehicle with additional power system(s) or auxiliary engine(s)    
  that might produce regulated pollutants (e.g., a hybrid vehicle or electric   
  vehicle with an auxiliary power source to run other vehicle systems) will be  
  subject to the standards of 40 CFR Part 88 (administered per CARB procedures, 
  which are incorporated by reference) or future applicable regulations and     
  might not qualify as a ZEV. One respondent requested that EPA establish ZEV   
  exhaust emission standards above zero such that hybrid electric vehicles may  
  qualify as ZEVs. EPA has not promulgated a test procedure for such vehicles   
  and therefore standards have not been established.                            
    e. Administration and Enforcement Per California Practice. As proposed in   
  the NPRM, EPA will administer and enforce the numerical CFV exhaust emission  
  standards in the same manner as does the state of California. Section 244 of  
  the Act directs EPA to administer and enforce the numerical CFV emission      
  standards in the same manner as CARB does for vehicles less than 8,500 lbs.   
  GVWR. Specifically, section 244 states that when the applicable CAA and CARB  
  numerical standards are the same,                                             
                                                                                
    Such standards shall be administered and enforced by the Administrator (1)  
  in the same manner and with the same flexibility as the State of California   
  administers and enforces corresponding standards * * *; and (2) subject to    
  the same requirements, and utilizing the same interpretations and policy      
  judgments, as are applicable in the case of such CARB standards, including,   
  but not limited to, requirements regarding certification, production-line     
  testing, and in-use compliance.                                               
                                                                                
    The application of California administration and enforcement procedures     
  does not depend on whether EPA has replaced federal CFV standards with        
  California standards under section 243(e). Section 246(f)(4) provides that    
  the credit generating standards are to be administered and enforced in the    
  same manner as the other CFV standards. Therefore, EPA will administer and    
  enforce the ULEV and ZEV standards in the same manner as does CARB.           
    Section 244 states that EPA shall use California administration and         
  enforcement procedures unless EPA determines that doing so will not meet the  
  criteria for a waiver of preemption under section 209. EPA believes that the  
  application of current California procedures would meet the criteria for a    
  section 209 waiver. However, in a letter dated February 17, 1994, CARB        
  requested that EPA waive preemption under section 209 for certain proposed    
  amendments to California certification test procedures. EPA is currently      
  analyzing this waiver request to determine whether these test procedure       
  amendments meet the criteria for a waiver under section 209. For example, EPA 
  must determine if the California enforcement procedures, as amended, are      
  consistent with section 202(a) of the Act.                                    
    Until it has completed its analysis of the waiver request, EPA cannot       
  present a determination that the amended California regulation, and thus      
  California administration and enforcement, do not meet the criteria for a     
  waiver under section 209. Given that section 244 directs EPA to adopt         
  California's procedures unless it makes such a determination, EPA believes    
  that it is required to adopt today California's administration and            
  enforcement procedures. EPA believes this adoption is in accordance with the  
  plain language of section 244. If EPA later determines that the California    
  enforcement procedures do not meet the section 209 waiver criteria, it will   
  propose to amend its regulation regarding enforcement of CFVs according to    
  California procedures.                                                        
    California procedures currently require certification testing of gasoline   
  vehicles either on California reformulated gasoline or on the current federal 
  gasoline test fuel called "indolene." EPA believes that adopting this         
  requirement as a part of adopting California administration and enforcement   
  procedures will allow manufacturers to certify vehicles both for California   
  as well as the other 49 states. In most cases, EPA believes that vehicle      
  designs likely to be certified on California reformulated gasoline to the CFV 
  standards will be capable of being certified to those standards on indolene   
  as well with no technological changes.                                        
    It is possible that some manufacturers may wish to certify vehicles on a    
  gasoline formulation different from either California reformulated gasoline   
  or indolene. For example, a manufacturer may wish to certify and market a CFV 
  engine family for use by fleet operators only in areas where federal          
  reformulated gasoline requirements apply, but where California reformulated   
  gasoline is unavailable or expensive. A CFV engine family certified only on   
  California reformulated gasoline would not be an attractive option to fleet   
  operators in areas covered by federal reformulated gasoline requirements      
  because the vehicles in that family will not have been demonstrated to comply 
  with the CFV standards on federal reformulated gasoline. If certifying that   
  family to the CFV standards on indolene would require additional emission     
  control development effort over the California-fuel version, but certifying   
  on a federal reformulated fuel would not, the manufacturer might prefer to    
  certify on a fuel representative of federal reformulated gasoline. Thus, such 
  a manufacturer might choose to market a line of CFVs which could use the      
  local fuel (reformulated gasoline) instead of only marketing California-fuel  
  versions. In this kind of situation, then, allowing manufacturers the option  
  of certifying to the CFV standards on other gasoline formulations might       
  provide fleets covered by the CFF program with an additional vehicle choice,  
  one which may help them comply in a cost-effective manner with the            
  requirement that they operate their CFVs in covered areas only on fuels on    
  which the vehicles comply with the CFV standards.                             
    While the California procedures adopted here do not appear to permit        
  certification on gasoline different from California reformulated gasoline or  
  indolene, EPA is considering whether it has the authority to propose and      
  promulgate a provision which would permit manufacturers to request            
  certification on a different gasoline formulation. Particularly if interest   
  is shown in such a provision on the part of fleets, vehicle manufacturers,    
  fuel producers, states, or other interested parties, EPA may issue a proposed 
  rule to permit certification on any gasoline formulation.                     
    With respect to the NMOG standard, CAA sections 241(3) and 241(4) provide   
  definitions for NMOG and base gasoline to be used in determining reactivity   
  adjustments for alternative fuels. Section 241(4) further provides that EPA   
  is to modify these definitions and the method used for determining reactivity 
  adjustment factors to conform to the definitions and method used by CARB,     
  provided CARB's definitions are, in the aggregate, at least as protective of  
  public health and welfare as the CAA definitions. CARB's definition of NMOG,  
  contained in the "definitions" section of its LEV program regulations, is     
  identical to the CAA definition. The CAA section 241(4) specifications for    
  "base gasoline" for the most part fall within the specification ranges for    
  CARB's "baseline", i.e., "conventional", gasoline used by CARB in             
  establishing the RAF for methanol-fueled vehicles./18/ Thus, EPA concludes    
  that CARB's regulatory definition of "conventional gasoline" is at least as   
  protective as the CAA definition of base gasoline for determining RAFs.       
    Note /18/ California Exhaust Emission Standards and Test Procedures for     
  1988 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium-duty  
  Vehicles, Appendix VIII.                                                      
                                                                                
    To ensure that the administration and enforcement of the CFV exhaust        
  emission standards is undertaken in conformance with section 244, EPA         
  incorporates by reference CARB's test procedures and other regulatory         
  provisions regarding administration and enforcement. (The California          
  Regulatory Requirements Applicable to the Clean Fuel Fleet and California     
  Pilot Programs, April 1, 1994, have been incorporated by reference in 40 CFR  
  88.104-94(k)(2).) Any vehicle certified by CARB in California to the same CFV 
  exhaust emission standards promulgated today will be considered to satisfy    
  the requirements for certification to the federal CFV exhaust standards       
  although the vehicle must meet all other Title II requirements as well as     
  qualify as a CFV. For federal standards which are not currently identical to  
  CARB requirements (e.g., cold CO emissions, evaporative emissions, THC,       
  NMHC), the existing federal administration and enforcement provisions,        
  including the applicable test procedures, will apply.                         
    Provisions established in the Motor Vehicle and Engine Compliance Program   
  Fees rule (57 FR 30044, July 7, 1992) give EPA the authority to recover all   
  reasonable costs associated with enforcement and compliance activities        
  performed by EPA. CFVs certified for use in the Pilot program may be subject  
  to California-only fees if a manufacturer only intends to sell the CFV in     
  California. However, other CFVs certified under the same process may be       
  subject to fees applicable for a federal certificate. This would be the case  
  if such CFVs were sold outside of California (e.g., CFVs used in the CFF      
  program outside California).                                                  
    As EPA proposed in the NPRM, vehicles certified as CFVs are to be labeled   
  according to CARB's revised motor vehicle emission control label              
  specifications./19/ These revised labeling requirements include labeling      
  vehicles to designate that they meet LEV, ULEV or ZEV standards.              
    Note /19/ Contained in California's proposed LEV program, California Code   
  of Regulations, Title 13, section 1965.                                       
                                                                                
  2. Heavy-Duty Clean-Fuel Vehicle Standards                                    
                                                                                
    Today's rule requires that engines intended for use in clean-fuel vehicles  
  greater than 8,500 and up to 26,000 pounds GVWR meet a combined non-methane   
  hydrocarbon (NMHC) plus NOX emissions standard of 3.8 grams per brake         
  horsepower hour (g/Bhp-hr). This new standard applies to all light and medium 
  heavy-duty engines which are to be certified for inclusion in the Clean Fuel  
  Fleet program, independent of fuel type. (Also, this standard applies to      
  heavy heavy-duty engines participating in the Clean Fuel Fleet program for    
  the purpose of generating credits.) Thus, it applies to vehicles operating on 
  gasoline, diesel, alcohols, gaseous fuels, electricity, and other fuels.      
    Section 246(f)(4) of the CAA requires that credit-generating standards be   
  promulgated for heavy-duty clean-fuel vehicles, including standards for       
  heavy-duty ULEVs and ZEVs. The CAA requires these standards to be             
  "comparable", which EPA interprets to mean comparable to the credit-          
  generating standards established for light-duty vehicles.                     
    a. The Heavy-Duty Clean Fuel Vehicle Low-Emission Vehicle NMHC+NOX          
  Standard. Section 245 of the CAA sets forth the statutory framework governing 
  establishment of the heavy-duty clean-fuel vehicle standards. Section 245(a)  
  sets a combined NMHC+NOX standard of 3.15 g/Bhp-hr for engines intended for   
  use in heavy-duty clean-fuel vehicles, reflecting a 50 percent reduction from 
  the current combined HC and NOX standards for heavy-duty diesel engines       
  (HDDE). Section 245(b) permits EPA to set a less stringent standard or        
  standards if EPA determines that the statutory level of 3.15 g/Bhp-hr is      
  infeasible for clean diesel-fueled engines. Under this provision, EPA must    
  make a determination as to the feasibility of this standard for clean diesel- 
  fueled engine technology, taking into account "durability, costs, lead time,  
  safety, and other relevant factors." If the Administrator determines that the 
  standard is not feasible for clean diesel-fueled engines, EPA may set a less  
  stringent standard so long as it is at least a 30 percent reduction from the  
  combined NMHC plus NOX standards for model year 1994 heavy-duty engines. A 30 
  percent reduction would be equivalent to a NMHC plus NOX standard of 4.41 g/  
  Bhp-hr.                                                                       
    EPA determines today that a combined NMHC+NOX emission standard of 3.15 g/  
  Bhp-hr is infeasible for clean diesel-fueled engines, for the reasons         
  discussed below. Under Section 245(b)(1), EPA has the authority to establish  
  a less stringent standard. The only statutory criteria for setting the less   
  stringent standard is the requirement that the standard require at least a 30 
  percent reduction from the combined NMHC+NOX standards for the 1994 model     
  year heavy-duty engines. Because the same standard that will apply to diesel- 
  fueled vehicles will also apply to vehicles run on other fuels (including     
  gasoline), EPA has looked at feasibility for both diesel- and nondiesel-      
  fueled vehicles. Based on these considerations, EPA has decided to set the    
  standard at 3.8 g/Bhp-hr.                                                     
    (i) Establishing the NMHC+NOX Standard. In determining whether the 3.15 g/  
  Bhp-hr NMHC+NOX standard is feasible for clean diesel-fueled heavy-duty       
  engines, EPA believes that the CAA does not require a determination that the  
  standard is feasible for every diesel engine family, but rather that it is    
  feasible for at least enough diesel engine families such that fleet operators 
  have enough choice to meet their requirements under the Clean Fuel Fleet      
  Program. The clean-fuel vehicle standard is not a mandatory national standard 
  for all heavy-duty vehicles manufactured, but instead applies to vehicles     
  that fleet owners in certain areas must buy as a certain percentage of their  
  vehicle purchases beginning in model year 1998.                               
    In the NPRM, EPA proposed a level of 3.5 g/Bhp-hr NMHC+NOX based on         
  concerns about technology, cost, leadtime, and durability for diesel engines  
  as prescribed in section 245 (b) of the CAA. Based on the comments submitted  
  to EPA and further analysis by the Agency, EPA believes that achieving HDDE   
  emission levels below about 3.5 g/Bhp-hr NMHC+NOX would be technically        
  difficult and costly to manufacturers and would not be achievable for an      
  adequate number of light and medium heavy-duty diesel engine families by      
  1998. In their comments, engine manufacturers argued that the 3.15 g/Bhp-hr   
  level, as well as the proposed 3.5 g/Bhp-hr level, would not be               
  technologically and economically feasible for diesel-fueled engines. The      
  Natural Gas Vehicle Coalition (NGVC) argued that the 3.15 g/Bhp-hr level      
  would be feasible for diesel-fueled engines, based largely on a final report  
  by Acurex under contract with CARB, entitled "Technical Feasibility Reducing  
  NOX and Particulate Emissions from Heavy-Duty Engines." /20/ As the analysis  
  summarized below demonstrates, EPA agrees in part with each set of comments,  
  but reaches a conclusion different from both.                                 
    Note /20/ Acurex Environmental Project Under Contract with California Air   
  Resources Board, Final Report, "Technical Feasibility of Reducing NOX and     
  Particulate Emissions From Heavy-Duty Engines," Acurex Environmental Project  
  8450, Contract No. A132-085, April 30, 1993 (found in the docket for this     
  rulemaking).                                                                  
                                                                                
    As a part of its assessment of the potential HDDE emission control          
  technology, EPA studied the Acurex report in depth. Like the Regulatory       
  Support Document associated with this rule,/21/ this report concludes that to 
  achieve a NOX-emission level of 2.5 g/Bhp-hr by 2000 (NOX levels needed to    
  meet a 3.15 g/Bhp-hr NMHC+NOX standard),/22/ diesel-fueled engines would need 
  to be equipped with advanced catalytic trap or EGR (exhaust gas               
  recirculation) technologies. In addition, the 2.5 g/Bhp-hr level would also   
  require the use of a combination of some or all of the following emission     
  control approaches for diesel-fueled engines: very high pressure fuel         
  injection, variable geometry turbocharging, air-to-air aftercooling,          
  optimized combustion, electronic unit injections with minimized sac volumes,  
  optimized fuel injection nozzles, rate shaping, exhaust gas recirculation and 
  sophisticated electronic control of all engine systems. Most of the devices   
  described in the Acurex report are in relatively early stages of development  
  and would require extensive changes in heavy-duty diesel-powered engines      
  compared to today's designs. Acurex projects that achieving this level would  
  be possible, but it would result in a 5 percent fuel economy penalty and a    
  doubling of the engine price of a 1994 diesel-fueled engine. Based on reasons 
  discussed throughout this section, EPA is very doubtful that this standard    
  could be met in a cost-effective manner in time for the production of an      
  adequate number of 1998 model year engine families. However, Acurex has       
  projected that a 3.0 g/Bhp-hr NOX-emission level (approximately equivalent to 
  a 3.5 g/Bhp-hr NMHC+NOX level) is achievable for diesel-fueled engines by     
  1999 with the addition of EGR and oxidation catalyst technology without major 
  new costs or fuel economy penalties.                                          
    Note /21/ U.S. Environmental Protection Agency, Office of Mobile Sources,   
  "Regulatory Support Document: Emissions Standards for Heavy-Duty Fleets,"     
  June 1994 (found in the docket for this rulemaking).                          
    Note /22/ Current certification data indicate that generally all diesel     
  engine families have HC certification levels less than 0.5 g/Bhp-hr, so most  
  reductions would have to be achieved in NOX emissions. Thus, achieving a 3.15 
  g/Bhp-hr NMHC+NOX standard would essentially require NOX-certification levels 
  on the order of 2.5 to 2.7 g/Bhp-hr.                                          
                                                                                
    Also, the NGVC argued that no technological breakthroughs are required to   
  meet the 3.15 standard since each one of these technologies is already in use 
  in one or more commercial diesel engine families to meet the 1994 and 1998    
  standards. They also state that all that would be required to meet the 3.15   
  standard would be the addition of EGR and possibly a particulate trap.        
  Although it is true that some versions of the necessary technologies are in   
  use today, EPA believes, as stated above, that the additional development     
  effort needed to reach very low emission levels would be very costly and      
  would likely limit or eliminate the availability of heavy-duty diesel engines 
  for the program.                                                              
    Furthermore, a review of the 1993 HDE federal certification results         
  clarifies the magnitude of the developmental task for manufacturers to        
  achieve extremely low-emission levels, especially for diesels. The data,      
  which represents engines tested on federal certification fuel, indicates that 
  no current gasoline or diesel HDE family meets or is close to the 3.15 g/Bhp- 
  hr standard on federal certification fuel (for diesel and gasoline engines    
  NMHC and HC are roughly equivalent). Of the 9 gasoline HDE families certified 
  in 1993, three are within one g/Bhp-hr of the standard (see Figure 1). Based  
  on the aftertreatment control technology used by and available for gasoline   
  engines, EPA believes that 3.15 g/Bhp-hr level would be within reach for a    
  number of these families. For diesel engines, however, the 1993 heavy-duty    
  engine federal certification results presented in Figure 1 indicate that      
  achieving the 3.15 g/Bhp-hr standard on federal diesel fuel would be          
  extremely problematic for the majority of engine families by 1998. However,   
  five of the 37 diesel engine families certified in 1993 are within one g/Bhp- 
  hr of the 3.5 g/Bhp-hr NMHC+NOX level (equivalent to NOX-certification level  
  of 3.0 g/Bhp-hr), indicating that a standard in this range would more likely  
  be achieved by a variety of diesel engines on federal certification fuel than 
  would the 3.15 level. Only one of 37 diesel engine families certified in 1993 
  is within one g/Bhp-hr of the 3.15 level; most have combined HC and NOX       
  certification levels of 5.5 g/Bhp-hr or less.                                 
                                                                                
  BILLING CODE 6560-50-P                                                        
                                                                                
              Figure 1: 1993 Heavy-Duty Engine Certification Levels             
                                                                                
                      1993 Gasoline HDE Certification Levels                    
                                                                                
        [INSERT: Bar chart plotting engine families by HC+NOx (g/Bhp-hr)]       
                                                                                
                  1993 Diesel LHDE and MHDE Certification Levels                
                                                                                
        [INSERT: Bar chart plotting engine families by HC+NOx (g/Bhp-hr)]       
                                                                                
  BILLING CODE 6560-50-C                                                        
                                                                                
    There are two existing sets of regulations that will drive heavy-duty       
  engine technology towards low NMHC+NOX levels: the federal 1998 4.0 g/Bhp-hr  
  NOX standard, and the California Air Resources Board (CARB) LEV standard for  
  diesel engines and incomplete medium-duty vehicles of 3.5 g/Bhp-hr NMHC+NOX.  
  EPA received many comments in Docket A-91-28 stating that the 4.0 g/Bhp-hr    
  NOX standard for all 1998 and later HDEs, which is one g/Bhp-hr lower than    
  the existing standard, is feasible for diesel engines. Development of the     
  technology necessary to comply with the 4.0 g/Bhp-hr NOX standard will make   
  it more likely that a significant number of light and medium diesel HDE       
  families will be able to reach emission levels slightly below 4.0 g/Bhp-hr    
  NOX on federal diesel fuel in the future, but it is unlikely that this        
  federal standard will force the development of technologies needed to achieve 
  a 3.15 g/Bhp-hr NMHC+NOX standard on such fuel (i.e., NOX levels of 3.0 g/    
  Bhp-hr or less) since there is no federal requirement to reach lower levels.  
    CARB's 3.5 g/Bhp-hr NMHC+NOx standard is the only other impetus driving     
  technology to achieve emission levels significantly below the 4.0 g/Bhp-hr    
  NOx standard. Engine manufacturers have stated that the CARB 1998 3.5 g/Bhp-  
  hr NMHC+NOx standard for incomplete medium-duty vehicles and diesel engines   
  is feasible, and EPA agrees with CARB's expectation that manufacturers will   
  market a range of LEV diesel HDEs in California which will meet the           
  California standard. However, as with the federal 4.0 g/Bhp-hr NOx standard,  
  it is unlikely the current California standard will prompt the additional     
  technology development needed to reach a 3.15 g/Bhp-hr NMHC+NOx level since   
  there is no requirement to reach levels below 3.5 g/Bhp-hr NMHC+NOx. This is  
  especially true for engines intended for vehicles between 14,000 and 26,000   
  pounds GVWR, which are covered by the Clean Fuel Fleet Program but not the    
  current CARB LEV program.                                                     
    EPA believes it is appropriate to look at the demand that will be created   
  for heavy-duty CFVs as a relevant factor when determining whether a           
  particular combined NMHC+NOx standard for diesel-fueled vehicles is           
  technologically feasible under section 245(b)(1). For the reasons discussed   
  above, EPA believes that achieving a level of 3.15 g/Bhp-hr NMHC+NOx for even 
  a small selection of HDDEs by 1998 will be a very difficult task.             
  Manufacturers will need to invest significantly in research and accelerated   
  technology development, and any engines which reach production would be more  
  costly (in terms of both engine price increase and fuel economy penalty, as   
  discussed above), especially based on the relatively small demand that will   
  be created by the Clean Fuel Fleet Program. In the absence of mandated        
  production, EPA believes that a technological effort of this magnitude is     
  likely to be undertaken by engine manufacturers only under circumstances of a 
  certain, substantial market.                                                  
    The CFF program contains no authority for a production mandate. Thus, the   
  size and certainty of the market is central to whether diesel engines will be 
  developed to meet the requirements of heavy-duty fleets covered by the fleet  
  program. However, only a small number of vehicles will be needed by fleets    
  for their fleet program purchase requirements. For example, during each year  
  of the fleet program EPA estimates that a maximum of only about 2 percent     
  (10,000) of total nationwide new heavy-duty diesel vehicles will be purchased 
  by fleet operators to meet the Clean Fuel Fleet Program requirements./23/     
  This projected market decreases by about 25 percent if California opts out of 
  the Clean Fuel Fleet Program; other potential opt outs by additional states   
  may reduce the market to under one percent of nationwide heavy-duty diesel    
  engine sales (or under about 5000 vehicles). By comparison, based on the      
  implementation schedule of CARB's LEV program, the annual market (30,000) for 
  vehicles required to meet CARB's LEV standard for diesel engines and          
  incomplete medium duty-vehicles of 3.5 g/Bhp-hr NMHC+NOx is approximately     
  three to six times as large as the potential federal clean diesel-fueled      
  market./24/ CARB's program incorporates a phased-in percentage sales mandate  
  for this larger number of vehicles.                                           
    Note /23/ U.S. Environmental Protection Agency, Office of Mobile Sources,   
  "Estimated Number of Fleet Vehicles Affected by the Clean Fuel Fleet          
  Program," Memorandum from Sheri Dunatchik to Docket A-91-25, June 11, 1991.   
    Note /24/ Heavy-duty vehicle population projections for the California LEV  
  program are based on the following: (1) light heavy-duty production reports   
  submitted to the U.S. Environmental Protection Agency for model year 1991 and 
  (2) New Truck Registrations by Manufacturer and State data from the "AAMA     
  Facts and Figures 1993" (page 27) that shows California truck sales to be 10  
  percent of nationwide truck sales.                                            
                                                                                
    EPA is concerned that a market of the size represented by the CFF program   
  will not be seen as sufficient for engine manufacturers to justify the major  
  voluntary technological development efforts necessary to reach a 3.15 g/Bhp-  
  hr standard. Even if some manufacturers do launch such an effort, the likely  
  higher cost and possible fuel economy penalty may make it much more difficult 
  for diesel engine producers to compete for sales with gasoline or alternative 
  fueled engine options which may be available. Since developing and producing  
  vehicles for the fleet program is, by statute, voluntary, the Agency believes 
  that it is very possible that, with a very low emission standard, no diesels  
  will be produced for the clean fuel fleet program. The Act is clear in its    
  intention that EPA may design the fleet program such that clean diesel        
  vehicles can participate. EPA thus concludes that a standard of 3.15 g/Bhp-hr 
  is not feasible for heavy-duty diesel-fueled CFVs taking into account costs,  
  lead time, durability, and other relevant factors, and should not be          
  promulgated at this time.                                                     
    EPA reserves the right to reconsider through rulemaking the 3.15 g/Bhp-hr   
  NMHC+NOx standard at a later time if diesel NOx control technology and the HD 
  clean-fuel engine market develop to a point which would make this level       
  feasible for heavy-duty diesel-fueled CFVs. Such a reconsideration may be     
  prompted by developments in the ongoing CARB HD LEV program now under         
  consideration.                                                                
    ii. NMHC+NOx LEV standard. EPA is adopting an approach for the heavy-duty   
  clean fuel vehicle engine standard that is very similar to the proposed       
  approach. The intent of this approach is to implement a challenging standard  
  in a way that harmonizes as completely as possible the federal standard with  
  CARB's NMHC+NOx LEV standard for diesel engines and incomplete medium-duty    
  vehicles. The Agency believes that the effect of this harmonization is to     
  make the overall national market for clean HDDs significantly larger than it  
  would be with either program alone and will thus assure that clean diesels    
  will in fact be produced by 1998 for the clean fuel fleet program.            
    To meet these objectives, EPA is promulgating a combined NMHC+NOx clean-    
  fuel engine emission standard of 3.8 g/Bhp-hr for heavy-duty engines          
  certified on federal diesel certification fuel. Manufacturers may also        
  certify heavy-duty engines to a standard of 3.5 g/Bhp-hr on California diesel 
  certification fuel, which for a given engine is approximately equal in        
  stringency to the 3.8 g/Bhp-hr standard using federal diesel certification    
  fuel, as described below. The level of stringency represented by these        
  standards should be achievable for at least several diesel engines with       
  fairly straightforward technological improvements and without a serious fuel  
  economy penalty. EPA intends for this approach to assure that the same        
  engines that are developed and produced for the California LEV program will   
  also be acceptable to fulfill the requirements of the Clean Fuel Fleet        
  Program. These vehicles and engines would, as specified by section 242(b) of  
  the Act, also be required to meet all other applicable emission standards and 
  requirements of 40 CFR Part 86 (such as standards for CO, particulates, smoke 
  and evaporative emissions, as applicable).                                    
    As discussed in the NPRM, EPA recognizes that differences between           
  California and federal certification and in-use diesel fuels may cause a      
  difference in emission rates. CARB limits the aromatics content of the test   
  fuel to a maximum of ten percent, while federal test fuel may contain as much 
  as 35 percent aromatics. There is evidence to suggest that the use of federal 
  test fuel can result in higher NMHC+NOX emissions than the use of CARB fuel   
  in the same engine. Apparently, this occurs because the higher aromatic       
  content of the fuel reduces its cetane rating and thus combustion is slightly 
  less enhanced. Data reported in the NPRM for a 1991 prototype DDC Series 60   
  heavy heavy-duty engine showed this difference to be in the range of 0.3 g/   
  Bhp-hr offset./25/                                                            
    Note /25/ "Effects of Fuel Aromatics, Cetane Number, and Cetane Improver on 
  Emissions from a 1991 Prototype Heavy-Duty Diesel Engine," T. Ullman, R.      
  Mason, and D. Montalvo, Southwest Research Institute, SAE Paper 902171., U.S. 
  Environmental Protection Agency, Office of Mobile Sources, "Effect of Test    
  Fuel Differences on NMHC+NOX Emissions," Memorandum from Michael Samulski to  
  the docket of this rulemaking, February 23, 1993.                             
                                                                                
    In addition to the analysis of the 1991 prototype heavy-duty diesel engine  
  referenced in the NPRM, EPA has used a similar analysis to examine diesel     
  fuel effects based on data presented in a study performed on a 1993 prototype 
  Navistar Diesel DTA 466 medium heavy-duty engine./26/ As had been done in the 
  earlier analysis, EPA compared federal and California diesel fuels on the     
  basis of aromatic percent and cetane number. EPA used the specified aromatic  
  levels of 10 percent for California test fuel and 35 percent for federal test 
  fuel and natural cetane numbers of 50 and 46 for typical California and       
  federal certification fuels, respectively./27/ An API gravity number typical  
  of both test fuels of 36 degrees was used. The following regression equations 
  were developed in the study conducted on the 1993 engine for total            
  hydrocarbon (THC) and NOX:                                                    
    Note /26/ Diesel Fuel Property Effects on Exhaust Emissions from a Heavy    
  Duty Diesel Engine that Meets the 1994 Emissions Requirements, "C. McCarthy,  
  Amoco Oil Co., W. Slodowske, E. Sienicke, and R. Jass, Navistar International 
  Transportation Corp., SAE Paper 922267.                                       
    Note /27/ The cetane numbers used in the EPA analysis on the 1993 heavy-    
  duty engine were based on the following: (1) "Development of the First CARB   
  certified California Alternative Diesel Fuel", M. Nikanjam, SAE Paper 930728, 
  (2) Section 2282, Title 13, California Code of Regulations procedure for      
  certifying diesel fuel formulations resulting in equivalent emissions         
  reductions and (3) Cummins Engine Company and Caterpiller diesel fuel         
  formulations for federal diesel fuel. These cetane numbers are natural cetane 
  numbers (without cetane improver).                                            
                                                                                
  THC [g/Bhp-hr] = 0.819 - 0.01942 * (Natural Cetane) + 0.01159 * (API)         
  NOX [g/Bhp-hr] = 6.593 + 0.01183 * (SFC Aromatics %) - 0.02497 * (Natural     
      Cetane) - 0.02365 (API)                                                   
                                                                                
    Substituting the values selected above for percent aromatics and cetane     
  numbers into these equations, the Agency calculated a THC + NOX offset of     
  about 9.7 percent. Applying this percent offset to the 3.5 g/Bhp-hr standard  
  for CARB diesel fuel, the Agency analysis calculated that the offset would be 
  about 0.34 g/Bhp-hr THC + NOX. (This analysis assumed that the offset would   
  apply equally whether THC or NMHC was being considered; the Agency has no     
  data to indicate that the small methane emissions component in diesel         
  emissions would affect the relative behavior of the engine on the two fuels). 
    Thus, the Agency concludes that diesel engines certified to a 3.5 g/Bhp-hr  
  level on California diesel fuel would for typical engines, result in          
  emissions of approximately 3.8 g/Bhp-hr for the same engines operated on      
  federal diesel fuel, confirming the estimate made in the NPRM. In their       
  comments engine manufacturers quoted the same data that EPA has used for the  
  1991 and 1993 prototype diesel engines, but used different assumptions for    
  the cetane number for in-use diesel fuel. Also, the industry analysis did not 
  adjust the offset proportionally to account for the much lower emissions of   
  CFVs as compared to the current engine which generated the test data. In      
  their comments, they concluded that the offset between federal certification  
  fuel and California certification fuel may be more in the range of 0.55-0.66  
  g/Bhp-hr. EPA has examined the assumptions used in the industry analysis and  
  concluded that the EPA analysis is a more appropriate approach for            
  determining the expected emissions offset. While this conclusion is based on  
  data from a single engine, the 1993 engine is of the appropriate size (medium 
  heavy-duty) from which to draw a conclusion for this program and the study    
  was done on a meaningful array of diesel test fuels. It is likely that if     
  similar data were collected on other engines, somewhat different values for   
  the CARB/federal fuel offset might be observed. Until such a time when        
  additional data becomes available, EPA will assume that offsets for other     
  heavy-duty diesel engines would range on either side of the 0.34 g/bhp-hr     
  level EPA has developed for the 1993 engine. Thus, the Agency believes that   
  its analysis reasonably accounts for potential fuel variability and that the  
  0.34 g/Bhp-hr value represents a reasonable estimate for the average          
  emissions offset between federal certification fuel and California            
  certification fuel. If a reduction catalyst is used as a means to reduce NOX  
  levels, concerns over fuel variability diminish significantly. The CARB/      
  federal fuel offset would tend to be less because the reduction catalyst      
  would reduce emissions proportionally for both fuels. While the use of        
  reduction catalysts may not be universal, EPA expects that some light/medium  
  heavy-duty engine families will use reduction catalyst technology to meet the 
  NOX target level. Additional data and analysis supporting the above           
  conclusion of the offset between federal and California diesel fuel can be    
  found in the Summary and Analysis of Comments document for this rulemaking.   
    Based on its analysis of the emissions offset above, EPA has set the        
  emission standard for HDD CFVs certified on federal diesel fuel at 3.8 g/Bhp- 
  hr NMHC + NOX. This standard is consistent with EPA's intent that the heavy-  
  duty clean-fuel vehicle standards be of as close to equivalent stringency as  
  possible to the CARB LEV standard for similar vehicles to assure the          
  production of an adequate number of diesel engine models for the clean fuel   
  fleet program. Further, because the Agency is reasonably confident that in-   
  use emissions of a engine certified at 3.5 g/Bhp-hr on California fuel will   
  emit in the range of 3.8 g/Bhp-hr on federal fuel, EPA will grant a federal   
  certificate of conformity to a manufacturer which demonstrates compliance     
  with the 3.5 g/Bhp-hr standard on California certification fuel. While it is  
  possible that individual engines certified on California fuel may experience  
  a slightly different offset when operated on federal diesel fuel (e.g., when  
  a cetane number is much different between the fuels), EPA believes that this  
  will be the exception and that in-use performance on federal diesel fuel will 
  average about 3.8 g/Bhp-hr. The use of federal fuel in engines certified on   
  California fuel is consistent in this case with the fuel use provisions of    
  sections 246(b) and 241(2), since EPA has concluded that such engines indeed  
  comply with the clean fuel vehicle requirements on federal diesel fuel.       
    As another way of harmonizing the CARB LEV program and the CFF program to   
  ensure a sufficient number of HDDEs will be available by 1998 for the fleet   
  program, EPA will only test engine families which were certified to CFV       
  standards on California diesel fuel on diesel fuel meeting California         
  specifications during any Selective Enforcement Audit (SEA) testing or in-use 
  recall enforcement testing. The Agency believes that if manufacturers of HD   
  CFVs certified on California fuel perceive that their engines may be subject  
  to later EPA testing on federal diesel fuel, then they may desire to perform  
  additional testing of these engines on federal certification diesel fuel for  
  the purpose of assuring themselves of in-use compliance on federal diesel     
  fuel. This approach to SEA and in-use recall testing should assure            
  manufacturers that they will not need to perform any additional testing at    
  certification beyond that required for California certification. Fuel meeting 
  California diesel test fuel specifications is an acceptable test fuel under   
  the FTP because it meets the federal fuel specifications. This policy of the  
  Agency using fuel meeting California diesel test fuel specifications for SEA  
  and recall testing applies only to CFVs. If the Agency becomes aware of       
  changed circumstances which indicate that this policy is inappropriate, the   
  Agency reserves the right to discontinue this policy.                         
    For gasoline-fueled HD CFVs, EPA is aware of no evidence to suggest any     
  significant difference in emissions between such vehicles operating on        
  federal and California certification gasolines; thus the technical basis for  
  separate standards which exists for diesels does not apply for gasoline       
  engines. Commenters did not respond to the issue of the appropriateness of a  
  single standard for all HDEs. However, EPA believes that in general, a single 
  standard for all fuels provides equity among manufacturers of different types 
  of engines for this program. Also, section 245 of the Act seems to indicate   
  that Congress intended for there to be a single heavy-duty CFV standard.      
  Therefore, as for diesel engines, EPA today also promulgates a standard of    
  3.8 g/Bhp-hr for gasoline clean-fuel vehicle engines certified on federal     
  gasoline test fuel. As with diesel engines, gasoline engines demonstrating    
  compliance with the California 3.5 g/Bhp-hr standard on California gasoline   
  certification fuel will be eligible for a federal certificate.                
    Given the arguments above, as well as the fact that manufacturers have more 
  than three years before the purchase requirements for clean-fuel fleet        
  vehicles begin, EPA believes that several heavy-duty diesel engine families   
  will achieve a standard of 3.8 g/Bhp-hr NMHC + NOX on federal certification   
  fuel or 3.5 g/Bhp-hr NMHC + NOX on California certification fuel by the 1998  
  model year. Also, EPA believes that most gasoline-fueled HDE families can     
  meet a standard of either 3.8 g/Bhp-hr on federal certification fuel or 3.5   
  g/Bhp-hr on California fuel by the 1998 model year. These clean fuel vehicle  
  standards will apply to HDEs used in clean-fuel fleet vehicles of 8,501 to    
  26,000 lbs. GVWR to meet the purchase requirements of the fleet program.      
    b. Heavy-Duty ULEV and ZEV Standards. As previously discussed, section      
  246(f)(4) of the CAA requires EPA to promulgate emission standards for ULEVs  
  and ZEVs, for the purpose of determining fleet program credits. The provision 
  states that the standards:                                                    
                                                                                
  * * * shall be more stringent than those otherwise applicable to clean-fuel   
  vehicles under this part* * * . The standards* * *for [light-duty] vehicles*  
  * *shall conform as closely as possible to standards which are established by 
  the State of California for ULEV and ZEV vehicles in the same class. For      
  vehicles of 8,500 lbs. GVWR or more, the Administrator shall promulgate       
  comparable standards for purposes of this subsection.                         
                                                                                
    EPA interprets this comparability criteria to mean that ULEV and ZEV        
  standards for heavy-duty engines should require approximately the same        
  percentage of emission reduction compared to heavy-duty CFV LEV standards as  
  light-duty CFV ULEV and ZEV standards require compared to light-duty CFV LEV  
  standards. Under this provision, EPA must determine the appropriate level for 
  the heavy-duty ULEV and ZEV standards. EPA proposed this interpretation and   
  did not receive any comments objecting to it.                                 
    EPA also believes it is appropriate to take California's ULEV and ZEV       
  standards into consideration and attempt to harmonize the federal and         
  California standards where possible. As mentioned above in the section        
  pertaining to the feasibility of the HD CFV LEV standard, EPA believes such   
  harmonization is valuable because it helps create a single larger market for  
  heavy-duty ULEVs and ZEVs rather than two smaller markets. A single larger    
  market makes it more economical for manufacturers to produce heavy-duty ULEVS 
  and ZEVs, which makes it more likely that manufacturers will choose to        
  produce vehicles that can participate in the federal program. (The federal    
  program does not have a sales mandate for manufacturers, so their             
  participation is voluntary and controlled, in part, by market demand for      
  their products.)                                                              
    EPA also believes it has authority to consider harmonization of federal     
  heavy-duty ULEV and ZEV standards and California incomplete medium-duty       
  vehicle and diesel engine ULEV and ZEV standards in setting the federal       
  standards./28/ As explained above, EPA interprets "comparable standards" to   
  mean that heavy-duty CFV ULEV and ZEV standards must be comparable to light-  
  duty CFV ULEV and ZEV standards. Since the Act requires EPA to establish      
  federal light-duty ULEV and ZEV standards that conform as closely as possible 
  to California's light-duty ULEV and ZEV standards, harmonization of the       
  federal heavy-duty ULEV and ZEV standards and California incomplete medium-   
  duty vehicle and diesel engine ULEV and ZEV standards could be part of the    
  comparability determination. In addition, the direction of section 246(h) to  
  set "comparable standards" gives EPA some discretion in establishing          
  standards. EPA believes it is appropriate to consider California's standards  
  in exercising this discretion. EPA believes that, since the federal HD ULEV   
  and ZEV standards are voluntary credit-generating standards, their intended   
  purpose is primarily to provide compliance flexibility for manufacturers and  
  fleet operators. The Agency's goal then, in selecting these standards, is to  
  provide the maximum flexibility allowable under section 246(f)(4) of the Act, 
  while ensuring that there will be no negative impacts on the environment.     
    Note /28/ Beginning with the 1995 model year, CARB's medium-duty vehicles   
  include vehicles with a GVWR of 14,000 pounds or less.                        
                                                                                
    i. Ultra low-emission vehicle standards. EPA is adopting standards for      
  heavy-duty ULEVs NMHC+NOX, CO, particulate, and formaldehyde emissions as     
  specified below in Table 5. These standards are the same as those that were   
  proposed, except the formaldehyde standard, which is lower than originally    
  proposed. In the opening statement at the public hearing for the proposal and 
  in a memorandum that was placed in the docket and distributed at the public   
  hearing,/29/ EPA informed the public that the proposed standard for           
  formaldehyde was a typographical error and requested comment on the change of 
  the heavy-duty ULEV standard to the level specified in Table 5. EPA did not   
  receive any comments objecting to this level for the formaldehyde ULEV        
  standard. The final heavy-duty ULEV standards require reductions in emissions 
  that are comparable to the respective emission reductions required of light-  
  duty ULEVs, and are consistent with the respective requirements of the        
  California LEV program.                                                       
    Note /29/ U.S. Environmental Protection Agency, Office of Mobile Sources,   
  "Request for Comment on Revised Formaldehyde Standard for Heavy-Duty ULEVs    
  for the Clean Fuel Fleet NPRM," July 12, 1993, Memorandum from Bryan J.       
  Manning through Tad Wysor to docket A-92-30 (Document Number III-A-03).       
                                                                                
    As proposed, EPA is setting a combined NMHC + NOX HD CFV ULEV standard that 
  is approximately a 30 percent reduction from the HD CFV LEV standard. The     
  comparable light-duty CFV ULEV standards require reductions from light-duty   
  CFV LEV standards of 38 to 50 percent of NMOG emissions and 45 to 50 percent  
  for NOX emissions. Even though EPA has separate NMOG and NOX standards for    
  light-duty CFV ULEVs, the Agency does not believe it is required to establish 
  such separate standards for heavy-duty CFV ULEVs. Rather, EPA believes it is  
  appropriate to have a combined NMHC + NOX heavy-duty CFV ULEV standard        
  because heavy-duty CFV LEV standards have a combined NMHC + NOX standard      
  rather than separate NMOG and NOX standards (as do light-duty CFV LEVs and    
  ULEVs). Furthermore, a combined NMHC + NOX standard is consistent with the    
  California incomplete medium-duty vehicle and diesel engine ULEV standard.    
  EPA proposed this interpretation and did not receive any comments objecting   
  to a combined NMHC + NOX standard for HDEs.                                   
    EPA also is setting specific emission standards for CO and particulates     
  that require a reduction in emissions from the heavy-duty CFV LEV standards   
  of 50 to 54 percent and 50 percent, respectively, as proposed. (For both CO   
  and particulates, heavy-duty CFV LEVs must meet the same standards as do      
  conventional heavy-duty vehicles. Thus, for these standards, the reductions   
  in emissions for heavy-duty CFV ULEV standards are the same whether they are  
  compared to conventional or CFV LEV heavy-duty standards.) The comparable     
  light-duty CFV ULEV standards require reductions in CO and particulate        
  emissions of 50 percent each from light-duty CFV LEV standards. These federal 
  heavy-duty ULEV standards are identical to California's incomplete medium-    
  duty vehicle and diesel engine ULEV standards.                                
    Finally, EPA is also setting a specific heavy-duty ULEV standard for        
  formaldehyde. The comparable light-duty CFV ULEV standard requires a          
  reduction in emissions ranging from 39 to 52 percent from light-duty CFV LEV  
  standards. Though formaldehyde is not regulated for heavy-duty CFV LEVs,      
  formaldehyde is regulated in the light-duty CFV ULEV standards. EPA believes  
  that heavy-duty vehicles that emit formaldehyde are likely to participate in  
  the CFV ULEV program. Because emissions of formaldehyde are of significant    
  concern to EPA and to Congress, as evidenced by the inclusion of formaldehyde 
  standards for light-duty CFV LEVs and the inclusion of formaldehyde as a      
  hazardous air pollutant, EPA believes it is appropriate to include standards  
  for formaldehyde emissions in the heavy-duty CFV ULEV program. EPA has the    
  authority to regulate formaldehyde emissions not only under section           
  246(f)(4), but also under CAA sections 202(a) and 301(a). Also, the CARB LEV  
  program includes a formaldehyde ULEV standard for diesel engines and          
  incomplete medium-duty vehicles. Therefore, it is consistent with the CARB    
  LEV program to set a formaldehyde standard for federal HD ULEVs. The standard 
  promulgated today is identical to CARB's incomplete medium-duty vehicle and   
  diesel engine ULEV formaldehyde standard.                                     
                                                                                
        Table 5.--Emission Standards for Model Year 1998 and Later Heavy-       
                                  Duty Vehicles                                 
                                                                                
                                          NMHC                                  
                                           +                                    
                              THC   NOX   NOX    CO                OMHCE  HCHO  
                              (g/   (g/   (g/   (g/   Particulate   (g/    (g/  
                              Bhp-  Bhp-  Bhp-  Bhp-   1 (g/Bhp-   Bhp-   Bhp-  
         Vehicle type         hr)   hr)   hr)   hr)       hr)       hr)    hr)  
                                                                                
  Conventional Gasoline <=                                                      
   14,000 GVWR                 1.1   4.0        14.4                 1.1        
  Conventional Gasoline </==                                                    
   14,000 GVWR                 1.9   4.0        37.1                 1.9        
  Conventional Diesel          1.3   4.0        15.5         0.10    1.3        
  LEV Certified on Federal                                                      
   Fuel                        (2)   (2)   3.8   (2)          (2)    (2)        
  LEV Certified on                                                              
   California Fuel             (2)   (2)   3.5   (2)          (2)    (2)        
  ULEV                         (2)   (2)   2.5   7.2         0.05    (2)  0.025 
  ILEV                         (2)   (2)   2.5  14.4         0.10    (2)  0.050 
                                                                                
  (/1/) Standards for particulate matter (PM) apply only to diesel-fueled       
  vehicles.                                                                     
                                                                                
  (/2/) HD CFVs must meet conventional vehicle standards for THC, NOX, CO, PM,  
  and OMHCE.                                                                    
                                                                                
    Based on the Acurex report, Regulatory Support Document, and comments       
  received from the Natural Gas Vehicle Coalition, EPA believes that            
  alternative fuel vehicle technology will be available to meet these standards 
  by 1998, and that gasoline and diesel engines may also be able to achieve     
  these ULEV levels by that time or shortly thereafter. In any event, covered   
  fleet operators are never required to purchase ULEVs to meet the requirements 
  of the fleet program.                                                         
    ii. Zero-emission vehicle standards. Zero-emission vehicles (e.g. electric  
  vehicles) are vehicles which have no emissions of the pollutants of concern.  
  Therefore, as proposed, EPA today establishes heavy-duty ZEV standards of     
  zero for NMHC + NOX, CO, particulates, and formaldehyde. (Emissions from non- 
  fuel sources (e.g. tires, seats, paint, etc.) will likely exist as they do    
  for conventional vehicles and other CFVs.) These final heavy-duty ZEV         
  standards each require a 100 percent reduction in emissions from the heavy-   
  duty LEV standards, which for each pollutant is comparable to the respective  
  emission reductions required of light-duty CFV ZEVs. Furthermore, these       
  federal ZEV standards are identical to California's incomplete medium-duty    
  vehicle and diesel engine ZEV standards.                                      
    Compliance with the ZEV standards may be assessed through engineering       
  analysis, which shall include a description and analysis of all primary or    
  auxiliary equipment and engines which concludes that no emissions of the      
  stated pollutants is possible. The engineering analysis must determine that   
  the vehicle fuel system(s) does not contain either carbon or nitrogen         
  compounds (including air) which, when burned, form the above regulated        
  exhaust emissions. Such criteria will also assure that evaporative emissions  
  will not occur. Given these criteria there is no need to perform emission     
  testing because the above pollutants cannot be emitted from the vehicle.      
  However, compliance for ZEVs may be assessed through testing by performing    
  the tests required by Parts 86 and 88 (Federal Test Procedure) when           
  applicable.                                                                   
    Any vehicle with additional power system(s) or auxiliary engine(s) that     
  might produce regulated pollutants (e.g. hybrid vehicle or an electric        
  vehicle with an auxiliary power source to run other vehicle systems) will be  
  subject to the testing requirements of Part 86 or Part 88 or future           
  applicable regulations and might not qualify as a ZEV. A ZEV with a heater    
  will be considered a ZEV as long as the heater will not operate at an ambient 
  temperature above 40 deg.F and the heater's power/fuel source does not have   
  evaporative emissions in use.                                                 
    c. Other Issues--i. Flexible- and Dual-Fuel HDEs. EPA is not promulgating a 
  set of emission standards for flexible- and dual-fuel heavy-duty vehicles.    
  (Flexible- and dual-fuel vehicles are also commonly referred to as variable-  
  and bi-fuel vehicles, respectively.) Section 243(d) of the Act prescribes     
  emission standards for flexible- and dual-fueled light-duty vehicle and       
  light-duty trucks. EPA is establishing these standards today (see II.A.1.a).  
  The directive of section 243(g) that "nothing in this section shall apply to  
  heavy-duty engines" makes it clear that section 243(d) does not require EPA   
  to establish flexible- and dual-fueled standards for heavy-duty engines.      
    Even if EPA has authority to promulgate such standards (a question which we 
  do not answer here), EPA does not think it is appropriate to exercise that    
  authority at this time. As Natural Gas Vehicle Coalition suggested in their   
  comments, it is possible that similar standards could be implemented for HDEs 
  in the same manner as prescribed in the statute for light-duty vehicles and   
  light-duty trucks. However, as described in the proposal, separate NMHC       
  standards are not necessary for flexible- or dual-fuel HDEs since similar     
  behavior of NMHC (or the equivalent (NMHCE)) would be expected for all fuel   
  types. In addition, as discussed above, heavy-duty vehicles operated on       
  conventional gasoline and diesel fuel will be able to comply with the CFV     
  standards by 1998, and thus, there is not a compelling technical reason to    
  have slightly higher standards for the vehicle when it is operated on clean   
  alternative fuel. For all these reasons, EPA is not adopting separate         
  standards for flexible- or dual-fuel HDEs.                                    
    Section 241(2) defines clean alternative fuel for flexible- or dual-fuel    
  vehicles and engines as the fuel(s) on which such vehicles are certified to   
  the CFV standards. EPA concludes from this statutory language that engines    
  certified on California gasoline or diesel fuel only will need to operate     
  exclusively on that fuel in covered nonattainment areas. (For single-fuel     
  vehicles and engines, section 241(2) requires operation in covered areas on   
  the fuel(s) on which they "comply" with the CFV standards. As discussed       
  above, EPA has determined that single-fuel HDEs certified on California       
  gasoline or diesel fuel comply with the HD CFV standard on federal fuels.)    
    ii. Optional LDT Certification. For a number of years, manufacturers have   
  had the option of certifying their HDEs used in vehicles between 8501 and     
  10,000 lbs. GVWR using the LDT emission standards and provisions. This        
  provision is found in 40 CFR 86.085-1(b). EPA finds no reason why the         
  treatment of CFVs should be different than conventional vehicles in this      
  regard, and thus for consistency EPA will also make this option available for 
  clean-fuel HDEs.                                                              
    iii. Heavy-duty test procedures. While this action establishes NMHC + NOx   
  standards for heavy-duty vehicles and engines, EPA regulations historically   
  have not included test procedures for the measurement of methane separate     
  from other hydrocarbons, and thus the calculation of NMHC emissions would not 
  have been possible. Prior to today's regulations the heavy-duty test          
  procedures only measured the total amount of hydrocarbons (including          
  methane), but did not separately measure the amount of any individual         
  hydrocarbons such as methane. Therefore, EPA is promulgating additional test  
  procedures for the separate measurement of methane and calculation methods    
  for NMHC emissions, as discussed below. Test procedures for measurement of    
  total hydrocarbon (THC) emissions will be unchanged, and EPA will continue    
  the current practice of using a flame ionization detector (FID) for THC       
  measurement.                                                                  
    The test procedures call for the separate measurement of methane using gas  
  chromatography /30/ as specified in the Society of Automotive Engineers (SAE) 
  Recommended Practice J1151. This is consistent with both the previously       
  established EPA procedure for light-duty vehicles and light-duty trucks (40   
  CFR 86.111-94 and 40 CFR 86.140-94), and the California procedure for methane 
  measurement. This approach does not permit continuous methane measurement of  
  exhaust samples and will require that a bag sample be collected for all       
  classes of vehicles and engines. (The SAE Recommended Practice J1151 is       
  incorporated by reference in sections 86.111-94(b)(3)(vii) and 86.1311-       
  94(b)(2)(iii) of the regulatory text and is available in EPA Air Docket A-92- 
  30.)                                                                          
    Note /30/ Gas Chromatography--A separation technique in which a sample of   
  the gaseous state is carried by a flowing gas (carrier gas) through a tube    
  (column) containing stationary material. The stationary material performs the 
  separation by means of its differential affinity for the components of the    
  sample.                                                                       
                                                                                
    Under the approach for measuring NMHC, THC will first be measured using the 
  FID. Then, methane will be measured using gas chromatography. This methane    
  measurement will then be multiplied by a "FID response factor." This response 
  factor is necessary because the FID responds differently to methane than it   
  does to other hydrocarbons. In order to find what portion of the FID's THC    
  reading is attributable to methane, the tester must know the relationship     
  between the FID response to other hydrocarbons and to methane. Such a "FID    
  response factor" is calculated by noting the response of the FID, calibrated  
  for typical HCs, to a known quantity of methane. For example, if a sample     
  known to be 10.0 grams of methane gives a FID reading of 11.0 grams, then the 
  FID response factor is 11.0/10.0 or 1.10. The mass of NMHC is then the        
  difference between the THC (as measured by the FID) and the methane (as       
  measured by gas chromatography), multiplied by the FID response factor.       
    For natural gas vehicles (NGVs), the Natural Gas Vehicle Coalition and the  
  American Gas Association suggested that the EPA adopt the CARB method of      
  direct measurement of NMHC by gas chromatography. This issue was also raised  
  in response to the Gaseous Fuels Rule NPRM (proposed in November, 1992), and  
  EPA has addressed all concerns related to the measurement of NMHC emissions   
  for NGVs in the subsequent Gaseous Fuels FRM. The NMHC measurement method     
  promulgated in this section is the same as the method established in the      
  Gaseous Fuels FRM. If the NMHC measurement procedure for NGVs is revisited    
  and changed in the future, then any revised method will apply to clean-fuel   
  vehicle testing as well.                                                      
    In order to provide manufacturers with additional flexibility, EPA proposes 
  to make the measurement of methane (and subsequent calculations) optional.    
  Manufacturers would be allowed to measure and report THC emissions for        
  compliance with the NMHC standards. Since THC emissions are the sum of the    
  methane and NMHC emissions, they will be higher than the NMHC emissions       
  alone; thus, if the THC emissions are lower than the standard, the NMHC will  
  also be below the standard. While this option in effect increases the         
  stringency of the standard, some manufacturers may find that the savings      
  associated with using a simpler test procedure justify certifying under this  
  option. This is especially true for diesels, where the methane fraction of    
  THC emissions is small.                                                       
    iv. Averaging, trading, and banking. The Agency has previously established  
  an extensive credit exchange program for NOX and PM emissions from heavy-duty 
  engines /31/. Under this program, a manufacturer can take emissions credits   
  for producing vehicles that are below the applicable standards, and then use  
  those credits either on its own engines within the same averaging set or to   
  sell to other manufacturers for use in families in the same averaging set     
  which do not meet the applicable standards (trading). These emission credits  
  can be used in the year generated or retained for later use (banking). Fleet  
  average emissions are unchanged by this program.                              
    Note /31/ "Certification Programs for Banking and Trading of Oxides of      
  Nitrogen and Particulate Emission Credits for Heavy-Duty Engines;" Final      
  Rule, 55 FR 30584, July 26, 1990.                                             
                                                                                
    It would be inappropriate for a manufacturer to receive certification       
  emission credits for vehicles certified under part 88 (i.e., CFV LEVs, ULEVs  
  and ZEVs) for participation in the fleet program. The CFV standards are       
  mandatory for covered fleet vehicle purchases; to also allow manufacturer     
  credits for certification of the same vehicles would result in less emission  
  reduction than is contemplated in the Act. Thus, CFVs certified under part 88 
  for use in the fleet program for either compliance or credit purposes shall   
  be excluded from the manufacturers' credit exchange program. By contrast,     
  single-fuel engines that are certified under part 86 may not participate in   
  the fleet program even if their emissions meet CFV standards. Therefore, such 
  engines may generate manufacturer certification credits. However, dual- and   
  flexible-fuel vehicles certified under part 86 may only be able to generate   
  certification emission credits based on the least stringent standard to which 
  the vehicle is certified since the manufacturer has no control of the fuel    
  used by the vehicle owner.                                                    
    In order to allow a distinction between engines which are eligible for the  
  fleet program and those that are not, EPA requires manufacturers to have      
  different engine lables. Those engines labeled under Part 88 must include on  
  the label an indication that this engine is intended to be part of a clean-   
  fuel vehicle program, and as such, they will be excluded from the             
  manufacturers' credit exchange programs. Those engines labeled under Part 86  
  only will not include any indication on the label that the engine meets any   
  of the emissions requirements of Part 88, and as such, they will be excluded  
  from all clean-fuel vehicle programs and may be included in a manufacturers'  
  credit exchange programs. EPA will allow manufacturers to divide a clean-     
  fueled engine family into two engine families, one labeled under Part 88 (the 
  Part which regulates clean-fuel fleet vehicles) and one labeled under Part 86 
  (the Part which regulates conventional vehicles) only. The Agency believes    
  that this approach will prevent "double counting" of emissions benefits, but  
  will still provide the manufacturers flexibility in determining the most cost 
  effective means of complying with the requirements of Part 86.                
    Furthermore, EPA has decided not to pursue the proposed Credit Exchange     
  Programs for Manufacturers of Heavy-Duty Clean-Fuel Fleet Vehicles. The       
  programs appeared to be administratively burdensome with minimal economic and 
  emission benefit, and there was no support expressed in the comments for      
  these programs.                                                               
    v. Labeling. Section 86.095-35 of Part 86 requires that all heavy-duty      
  vehicles and engines certified by EPA have a permanently affixed label        
  indicating that this vehicle or engine meets all of the applicable            
  requirements of Part 86. All heavy-duty LEVs, ULEVs, and ZEVs will be         
  required to meet additional labeling requirements so the purchaser (e.g.      
  fleet operator) knows the vehicle is a CFV and "double counting" of emissions 
  benefits by the purchasers or manufacturers of CFVs is prevented as discussed 
  above in the Averaging, Banking, and Trading section. Those clean-fuel        
  vehicles and engines that are regulated under both Part 86 and Part 88 (e.g., 
  gasoline-fueled vehicles, methanol-fueled vehicles) shall meet the standard   
  labeling requirements of Part 86 with the addition of a statement that this   
  vehicle or engine meets the applicable heavy-duty LEV, ULEV, or ZEV           
  standards. However, certain clean-fuel vehicles (for instance electric        
  vehicles) are regulated under Part 88 but have not yet been regulated under   
  Part 86. For these clean-fuel vehicles not yet regulated under Part 86, the   
  manufacturer shall affix a permanent label that indicates that the vehicle or 
  engine meets the requirements of Part 88 for heavy-duty LEVs, ULEVs, or ZEVs, 
  as applicable, but does not necessarily meet the requirements of Part 86. The 
  reason for this requirement is to inform the consumer that the vehicle may be 
  used by a fleet operator towards meeting the purchase requirements of the     
  Clean Fuel Fleet program, but the vehicle is not eligible to be used in the   
  averaging, trading, and banking program in Part 86.                           
                                                                                
  B. Conversions to Clean-Fuel Vehicles                                         
                                                                                
    CAA section 247 states that fleet owners may meet clean-fuel fleet vehicle  
  purchase requirements through the conversion of existing or new gasoline- or  
  diesel-powered vehicles to clean-fuel vehicles. A converted CFV will thus be  
  considered a new vehicle for the purposes of the Clean Fuel Fleet program,    
  and so it will be eligible to meet CFF purchase requirements and to earn      
  credits and TCM exemptions. For this purpose, a clean-fuel fleet vehicle (or  
  engine) is one which meets the applicable CFV emission standards and other    
  requirements as prescribed in CAA sections 242 through 245.                   
                                                                                
  1. EPA's General Regulatory Approach for Conversions of Vehicles              
                                                                                
    EPA today codifies the exemption from tampering liability for conversion of 
  gasoline or diesel-fueled vehicles to clean fuel vehicles if the converted    
  vehicles comply with the applicable clean fuel vehicle standards and the      
  conversions are performed in compliance with EPA's conversion regulations     
  being promulgated today. Section 247(e) states that such conversions shall    
  not be considered as violations of the tampering prohibition in Section       
  203(a)(3).                                                                    
    Since conversions involve changes to vehicles/engines that have previously  
  been certified as meeting applicable emission standards, conversions are      
  typically subject to the tampering prohibitions of CAA section 203(a)(3),     
  which prohibit tampering with emission control devices. The initial           
  guidelines established by EPA regarding the enforcement of tampering          
  prohibitions are contained in the two documents entitled "Mobile Source       
  Enforcement Memorandum No. 1A", dated June 25, 1974, and "Fact Sheet:         
  Conversion of Vehicles and Engines to Operate on Natural Gas or Propane",     
  dated November 1, 1991. In the 1990 amendments to the CAA, section 203 was    
  amended to limit the scope of the tampering provisions of section 203(a)(3).  
  As amended, an exemption to the tampering provisions of section 203(a)(3) is  
  provided where a conventional vehicle is converted "* * * for use of a clean  
  alternative fuel and if such vehicle continues to comply with section 202     
  standards when operating on the alternative fuel * * * and if in the case of  
  a clean alternative fuel vehicle (as defined by the Administrator), the       
  device or element is replaced upon completion of the conversion procedure and 
  such action results in proper functioning of the device or element when the   
  motor vehicle operates on a conventional fuel."                               
    In addition to the general exemption for clean fuel conversion from the     
  tampering prohibitions, section 247(d) creates a special exemption for        
  conversions performed pursuant to EPA's regulations issued under section 247. 
  Thus, if a conversion is performed in compliance with the regulations issued  
  today, the conversion will not violate the tampering prohibition of section   
  203(a)(3). For any conversions that are not performed in compliance with      
  today's regulations (e.g., installation of a not-certified conversion         
  configuration), liability for tampering will be determined based on section   
  203(a).                                                                       
    Issues related to the conversion of vehicles to alternative fuel use are    
  addressed in the NPRM and FRM on gaseous-fueled emission standards, (FRM:     
  published in the Federal Register on September 21, 1994), hereafter referred  
  to as the Gaseous Fuels Rule. The conversion provisions in the Gaseous Fuels  
  Rule apply to all conversions regardless of fuel type and hence form the      
  basis for the certification procedures established in today's rule for        
  vehicles converted to CFVs except where superseded by the requirements of     
  today's rule. The Gaseous Fuels Rule provides that a vehicle conversion will  
  not be considered tampering if the vehicle has been converted to a            
  configuration which has been certified by EPA as meeting applicable emission  
  standards. For vehicles converted to use fuels for which no standards exist,  
  the provisions of Memorandum 1A apply, and EPA will not consider a            
  modification to a certified emission control configuration to be tampering if 
  the emissions from the vehicle are not increased as a result of the           
  modification. Consistent with the Gaseous Fuels Rule, today's rule provides   
  that in order to be considered clean fuel vehicles, conversion configurations 
  of vehicles/engines must include all of the hardware necessary to allow a     
  vehicle to operate on a fuel other than the fuel for which the vehicle or     
  engine was originally manufactured.                                           
                                                                                
  2. Requirements for Clean Fuel Fleet Vehicle Conversions                      
                                                                                
    Section 247(b) of the CAA directs EPA to promulgate regulations governing   
  conversions of conventional vehicles to CFVs that "* * * will ensure that a   
  converted vehicle will comply with the standards applicable under this part   
  to clean-fuel vehicles." While the conversion provisions in the Gaseous Fuels 
  Rule will require that emissions from converted vehicles meet the applicable  
  emission standards whenever manufacturers certify conversion configurations,  
  those provisions are not intended to fulfill all of the requirements of       
  section 247 of the CAA. Therefore, in addition to the general guidelines for  
  converted vehicles discussed in the section above and in the Gaseous Fuels    
  rule, today's rule establishes that certification must be obtained from EPA   
  before a converted vehicle can be sold to the public as a clean fuel fleet    
  vehicle. The following sections describe the regulations which are            
  promulgated by today's rule to satisfy the requirement of section 243(b).     
    a. Responsible parties: certification, warranty and liability provisions    
  for CFV vehicles. EPA in today's rule holds that the certifier of the         
  conversion configuration is liable as a manufacturer for purposes of sections 
  206 and 207 and related enforcement provisions. Imposing such liability on    
  the certifier is an outgrowth and systhesis of the two options presented in   
  the proposal. Following is a discussion of the significant advantages and     
  disadvantages inherent in each of the proposed options, a response to         
  pertinent pubic comments, and the final approach being promulgated today.     
    Section 247(c) states that "any person who converts conventional vehicles   
  to clean-fuel vehicles * * * shall be considered a manufacturer for purposes  
  of sections 206 and 207 and related enforcement provisions." To implement     
  this requirement EPA considered two options in the NPRM regarding the         
  definition of the "person who converts."                                      
    Under the first proposed option, the person(s) who installs a conversion    
  configuration on a vehicle in order to convert the vehicle into a CFV would   
  be liable as a manufacturer under section 247(c). Thus, a person installing a 
  conversion kit would be required to obtain a federal certificate of           
  conformity for that conversion configuration. Under the second proposed       
  option, both the conversion kit manufacturer and the installer of the kit     
  would be liable as manufacturers under 247(c). In the second option, the kit  
  manufacturer and the installer would both have responsibilities in            
  demonstrating that a vehicle converted to a CFV complies with the CFV         
  standards and with EPA's regulations promulgated under section 247(b).        
    A significant advantage inherent in the first option is that liability is   
  easily assigned and enforcement is less complicated if a single entity is     
  held accountable for warranting each vehicle's emissions performance and is   
  subject to production line testing requirements. The existence of such a sole 
  liable party may also make it easier for purchasers of converted vehicles to  
  seek redress for emissions performance failures under warranty provisions.    
    However, EPA believes that the installer may not be the appropriate party   
  on which to focus all liability. Commenters indicated that the kit            
  manufacturer is in the best position to perform the required certification    
  testing. In addition, EPA believes that the first proposed option would       
  result in a larger number of certifiers, and multiple certificates for the    
  same conversion configuration. This would complicate enforcement and warranty 
  actions by increasing the number or parties against whom such actions would   
  need to be taken.                                                             
    Commenters also noted the need for strong warranty and recall provisions in 
  order to increase public confidence in the performance of converted vehicles. 
  EPA believes that the existence of a large number of certifier-installers,    
  many of whom may be relatively small businesses with limited financial        
  resources /32/ will adversely affect the confidence of purchasers of          
  converted vehicles in their ability to pursue warranty claims.                
    Note /32/ U.S. Environmental Protection Agency, Office of Mobile Sources,   
  "A Preliminary Assessment of the Gaseous Fuels Aftermarket Conversions        
  Industry, EPA Contract 68-C1-0059, September 28, 1992.                        
                                                                                
    The second option offers the advantage of allowing EPA to hold kit          
  manufacturers legally responsible for some or all of the certification,       
  production line testing, in-use testing, warranty, and recall requirements.   
  EPA believes it will be more practical to focus enforcement efforts on kit    
  manufacturers than on installers, given the large number of installers in     
  relation to the number of kit manufacturers. This option would also allow EPA 
  to distribute the responsibility for certification, and warranty and recall   
  between a kit manufacturer and installers in a manner consistent with their   
  abilities and level of involvement in the conversion process. Public comment  
  was generally in support of adopting this option and favored holding          
  conversion kit manufacturers responsible for in-use emission performance of   
  kit hardware except where performance failures result from poor installation. 
    A significant disadvantage in this approach is that, though EPA could bring 
  an action against either the kit manufacturer or the installer for any        
  violation of the Act, as both would be jointly and severally liable, factual  
  disputes between the parties regarding the actual cause of the emission       
  failure could become a complicating factor during an enforcement action. This 
  could lead to lengthy proceedings between the involved parties which in turn  
  may delay resolution of emission problems and/or the compensation to vehicle  
  owners for in-use performance problems covered under vehicle warranty.        
    The definition of the "person who converts" for the purposes of section     
  247(c) that will be promulgated by today's rule is as follows. Any entity     
  (kit manufacturer, installer, or other) may apply for a certification for a   
  conversion configuration and receive a federal certificate of conformity.     
  This certifier will be considered the "person who converts" under section     
  247(c) and will assume all responsibility as the manufacturer under sections  
  206 and 207. If the conversion is performed by an entity other than the       
  certifier, the certifier must provide the installer with instructions for     
  proper installation, and the installer must follow these instructions. While  
  the certifier is responsible as the manufacturer, if the installer installs   
  improper equipment or performs a faulty installation, EPA may hold the        
  installer responsible as well under the tampering provisions of the Act.      
    Under this approach a single party, the certifier, will be responsible for  
  warranting the vehicle's emissions performance, and liability can easily be   
  assigned for enforcement and warranty purposes as under the first option      
  considered in the NPRM. In addition, this approach avoids the disadvantages   
  inherent in the first option by providing industry with the flexibility to    
  determine which business entity is in the best position to provide EPA with   
  the data necessary for certification and to assume responsibilities as the    
  manufacturer. Based on public comment EPA anticipates that in most cases the  
  kit manufacturer will be the certifying party. Since the certifier will       
  assume liability for in-use vehicle performance failures that result from     
  faulty installations, EPA expects that the certifier will develop oversight   
  programs to insure that installations are performed properly and will enter   
  into indemnification agreements with installers. Kit manufacturers would be   
  wholly within their rights to require such indemnification agreements before  
  allowing installers to install their kit.                                     
    Thus, the result of holding the certifier solely responsible is consistent  
  with the intent of the second option and with public comment in that it       
  provides that the responsibility for certification, and warranty and recall   
  will be distributed equitably among all those responsible for the completion  
  of the final vehicle. Given that under the second option, kit manufacturers   
  would have been liable for any violation (although EPA would have attempted   
  to enforce against the party it believed was responsible), this approach does 
  not substantially increase manufacturers' liability. In addition, enforcement 
  actions by EPA will be simplified and the resolution of warranty claims by    
  vehicle owners will be expedited. EPA believes that this approach best        
  satisfies the need expressed in public comment to provide strict standards of 
  liability in order to instill consumer confidence in the emissions            
  performance of converted vehicles. The Natural Gas Vehicle Coalition and the  
  American Gas Association encouraged EPA to establish CFV conversion           
  requirements that are consistent with requirements for all other conversions. 
  Holding the converter solely responsible is also consistent with the approach 
  taken in the Gaseous Fuels Final Rule.                                        
    As proposed, the original equipment manufacturer (OEM) will remain          
  responsible for the equipment that was on the vehicle before it was converted 
  unless the conversion caused the failure of the OEM equipment to function in  
  its role in meeting emission standards. EPA believes that this is necessary   
  because the proper performance of the conversion configuration relies on the  
  OEM's underlying emissions control systems. Also, EPA interprets section      
  247(c) of the CAA to direct that the certifier of a CFV conversion will not   
  be required to warrant any vehicle for parts or operation existing in the     
  vehicle prior to conversion and not affected by the conversion.               
    Public comment was mixed on the issue of OEM liability, with some           
  commenters agreeing with EPA's proposed approach and others stating that the  
  OEM should not be held responsible for post-conversion failures of OEM        
  equipment due to concerns over the potential impact that converted parts may  
  have on the performance or durability of the original parts. EPA recognizes   
  this concern, and will evaluate in-use enforcement actions that involve an    
  OEM versus converter liability decision on a case by case basis. One          
  indicator that might be used by EPA to determine that the OEM was liable for  
  an emission failure of a converted vehicle will be an emission-related recall 
  action against unconverted OEM vehicles of the same model.                    
    The CAA does not specify how the useful life period of converted vehicles   
  should be measured for the purposes of in-use liability. EPA requested        
  comment on this issue, and all of the public comment received suggested that  
  the liability of the converter should not extend beyond the original useful   
  life of the vehicle. Given that the emissions performance of the conversion   
  configuration depends on the underlying emissions control systems of the OEM, 
  EPA agrees with this approach. Thus, the regulations promulgated by today's   
  rule provide that the liability of both the OEM and converter for in-use      
  emission performance will extend to the end of the original vehicle/engine's  
  useful life.                                                                  
    This definition of useful life creates the potential concern that fleet     
  operations will satisfy Clean Fuel Fleet Program (CFFP) purchase requirements 
  through the conversion of vehicles that have little mileage remaining in      
  their useful life. If this occurs to a significant degree, CFFP purchase      
  requirements could be met without achieving the emissions reductions          
  anticipated from the CFFP. However, EPA does not expect fleet operators to    
  satisfy their CFFP purchase requirements in this way because of the financial 
  disincentives involved with converting such high mileage vehicles and         
  maintaining them beyond their useful life solely for the purpose of meeting   
  CFFP purchase requirements.                                                   
    b. Certification requirements. Dedicated, dual, or flexible fuel            
  conversions of light-duty vehicles, light-duty trucks, and heavy-duty         
  vehicles/engines may qualify as CFVs. CFV conversions must meet the CFV       
  emission standards (LEV, ULEV, or ZEV) prescribed in 40 CFR Part 88 (as       
  described in the previous section on light-duty and heavy-duty standards) and 
  must also meet the applicable emission standards and provisions of Part 86    
  which apply to all vehicles to the extent they are not superseded by the      
  requirements of Part 88. In addition, the conversion must comply with the     
  requirements of the regulations being promulgated today to qualify as a CFV.  
    A separate certification is required for each conversion configuration to   
  be used with a given model year vehicle/engine for each certifier desiring to 
  perform such a conversion. The conversion configuration certification will    
  also be eligible for carryover to future model years only if the OEM vehicle/ 
  engine is also certified under carryover provisions and no changes occurred   
  in the conversion configuration. A dual-fuel or flexible fuel conversion must 
  be certified according to the general requirements for dual-fuel/flexible     
  fuel vehicles discussed in section A.1.a above.                               
    It should be noted that a certificate issued for a given model year expires 
  on December 31st of that calendar year, after which time a conversion under   
  that certificate may no longer be performed. A conversion for a given model   
  year may be introduced for sale prior to January 1st of that year, but in no  
  case may a conversion be introduced prior to January 1st of the preceding     
  year.                                                                         
    i. Small-volume manufacturers certification program--volume limits.         
  Consistent with the Gaseous Fuels Rule, today's rule establishes that a       
  conversion configuration may be certified according to the Small-Volume       
  Manufacturers Certification Program (55 FR 7178, February 28, 1990) and that  
  certifiers of conversion configurations will be treated the same as small     
  volume manufacturers for this purpose. In the Gaseous Fuels NPRM and in the   
  proposal for this rule, EPA proposed that all certifiers of conversion        
  configurations be permitted to use the Small-Volume Manufacturers             
  Certification Program, regardless of the annual volume of conversions. Public 
  comment on the gaseous fuels NPRM /33/ was received that suggested that the   
  production volume limits that currently define a small volume vehicle         
  manufacturer under 40 CFR 86.092-14 should also apply to parties seeking to   
  certify a conversion configuration. The Agency agrees with this comment and   
  believes that given the anticipated increase in demand for conversions in     
  response to a variety of federal and state programs, it is reasonable to      
  believe that existing or future manufacturers may produce more than 10,000    
  converted vehicles annually at some point in the future. (No current company  
  produces this number of conversions). EPA does not believe it would be        
  equitable for certifiers with sales or production of more than 10,000         
  converted vehicles to take advantage of the Small Volume Manufacturer's       
  Certification Program when that program is not available to manufacturers of  
  more than 10,000 new vehicles. EPA believes it would be inappropriate to      
  provide relief designed for small volume manufacturers to entities that sell  
  or produce more than 10,000 converted vehicles annually.                      
    Note /33/ Materials relevant to the Gaseous Fuels NPRM have been placed in  
  the public docket, No. A-92-14.                                               
                                                                                
    Thus, consistent with the approach taken in the Gaseous Fuels Rule, EPA     
  believes that the volume limits that currently apply to manufacturers seeking 
  to certify under the provisions for small volume manufacturers should also    
  apply to parties seeking to certify under the CFF program. Small-volume       
  aftermarket conversion certifiers will also have the option of using the EPA  
  full certification program prescribed in 40 CFR 86.094-23. Aftermarket        
  conversion certifiers with annual sales or production volume of more than     
  10,000 converted vehicles should be required to use the EPA full              
  certification program.                                                        
    While the sales volume limit in the Small-Volume Manufacturers              
  Certification Program applies to sales for a particular model year,           
  conversion companies may certify conversion configurations based on engine    
  families from older model years. To accommodate this, the 10,000 vehicle      
  limit will apply to the aggregate total of all vehicles converted within a    
  calendar year by a given aftermarket conversion certifier at all of its       
  installation facilities without regard to the model year of the original      
  vehicles upon which the configurations are based. All vehicle conversions     
  within a calendar year will be considered when determining whether the 10,000 
  vehicle limit is exceeded including those converted under the CFF program,    
  the Gaseous Fuels Rule, and Memorandum 1A. Apart from this difference, all    
  provisions related to the sales volume limit under the Small-Volume           
  Manufacturers Certification Program would apply (40 CFR Part 86, as           
  promulgated by 55 FR 7178, February 28, 1990).                                
    In this rulemaking, EPA did not propose to set a sales or production volume 
  limit for manufacturers wishing to certify according to the Small Volume      
  Manufacturers Certification Program (the "volume limit"), nor did EPA receive 
  any comments in this rulemaking suggesting that such a volume limit should be 
  used. In this circumstance, EPA believes it should not finalize a volume      
  limit without first providing the public an opportunity to comment on such a  
  limit. Therefore, the portion of today's rule that limits the use of the      
  Small-Volume Manufacturers Certification program to those certifiers with an  
  annual sales or production volume of 10,000 or fewer converted vehicles,      
  shall be effective on November 29, 1994, unless the information collection    
  requirements contained in this section have not been approved by the Office   
  of Management and Budget (OMB). In that case, EPA will publish a timely       
  document in the Federal Register delaying the effective date. If, on or       
  before October 31, 1994. EPA does not receive notification that someone       
  wishes to file an adverse or negative comment on the volume limit portion of  
  the rule, then the volume limit portion of the rule will become final and     
  effective without further EPA action. On the other hand, if, on or before     
  October 31, 1994, EPA receives notification that someone wishes to file       
  adverse or negative comment on the volume limit portion of the rule, EPA will 
  withdraw the volume limit portion of the rule. EPA will then repropose the    
  volume limit and go through full notice-and-comment procedures before         
  adopting the volume limit. If EPA were to withdraw this portion of the rule,  
  all certifiers would be able to certify according to the Small-Volume         
  Manufacturers Certification Program until and unless EPA issued a final rule  
  that established a different requirement.                                     
    ii. Small-volume manufacturers certification program--durability testing.   
  Under the Small-Volume Manufacturer's Certification Program, a certifier will 
  be required to demonstrate durability unless the certifier is specifically    
  authorized to use another certifier's durability data and deterioration       
  factors. If deterioration factors are not available, certifiers will be       
  required to use assigned deterioration factors from the Small-Volume          
  Manufacturer's Certification Program. Current regulations require that        
  assigned deterioration factors be determined based on the seventieth          
  percentile of industry-wide gasoline-fueled vehicle deterioration factors.    
  Since the emission deterioration characteristics of vehicles operating on     
  other fuels may be different, EPA may in the future consider through          
  rulemaking the use of deterioration factors based on data from vehicles using 
  different fuels when developing deterioration factors for such vehicles.      
    The Small-Volume Manufacturers Program requires manufacturers to provide    
  full low mileage emission data which show compliance with new vehicle         
  emission standards, but requires complete durability testing only for         
  vehicles with unproven technology. Certification through use of the small-    
  volume certification program reduces the burden of durability testing for     
  small volume manufacturers while providing reasonable assurance of emission   
  compliance. Public comment was received that to further reduce the burden on  
  small volume manufacturers, EPA should accept as proven technology under the  
  Small-Volume Manufacturers Program any aftermarket conversion technology that 
  has been durability tested and certified under CARB's bench testing rules     
  /34/ or has been durability tested using on-road mileage accumulation.        
    Note /34/ Sections 2030 and 2031 of Title 13, California Code of            
  Regulations.                                                                  
                                                                                
    As specified in 40 CFR 86.092-2, EPA will accept bench or road test data    
  that has been demonstrated to be equal or more severe than certification      
  mileage accumulation requirements to satisfy the requirements for proven      
  technology under the Small-Volume Manufacturers Program. Thus, durability     
  test data collected to satisfy CARB's bench testing rules or by on-road       
  mileage accumulation could be submitted to EPA for review under the Small-    
  Volume Manufacturers Program. EPA reserves the right to evaluate the adequacy 
  of such data, and acceptance by CARB will not constitute automatic acceptance 
  by EPA. It should be noted that EPA requires in-use data to demonstrate that  
  bench and on-road durability testing is equal or more severe than             
  certification mileage accumulation requirements. For example, actual          
  temperature trace data collected during vehicle operation must be used to     
  demonstrate that the temperature experienced during bench aging testing is at 
  least as severe.                                                              
    It should also be noted that EPA will only permit the use of provisions in  
  the Small-Volume Certification Program to demonstrate the durability of       
  technology that is currently used in automotive applications. For technology  
  that has not previously been used in automotive applications in certified     
  vehicles the full mileage accumulation durability requirements will be        
  required.                                                                     
    iii. Other provisions. EPA is also establishing other requirements with     
  which certifiers must comply. For vehicles converted under today's            
  regulations, the certifier must list each installer which produces CFV        
  conversions on the certification application for that CFV conversion. A       
  revised list must be submitted as new installers are authorized to produce    
  the conversion configuration. Because the certifier will be treated as the    
  manufacturer for purposes of sections 206 and 207 and related enforcement     
  provisions, EPA anticipates that certifiers will enter into legally binding   
  agreements with installers to ensure that installers are exercising due care  
  in performing the installation and meeting other obligations under today's    
  regulations.                                                                  
    In cases where installations of conversion configurations are performed by  
  parties other than the certifier, EPA envisions that the certifier will enter 
  into legally binding agreements with said installers. To facilitate EPA       
  enforcement actions each installer must be listed on the certificate filed    
  with EPA at the time of certification for each conversion configuration, and  
  the certifier must submit a revised list to EPA when new installers are       
  added. The certifier is responsible for compliance with any applicable        
  production line testing requirements (e.g., Selective Enforcement Auditing in 
  federal certification) regarding the availability of vehicles and emissions   
  testing facilities at the certifier's facilities and at those of the          
  certifier's installers.                                                       
    Identification of a converted CFV as a LEV, ULEV, or ZEV will be based on   
  the information provided to EPA at the time of the certification of the       
  conversion configuration. To aid in their identification, a converted CFV     
  must be labeled as such on the engine labels. Consistent with other EPA       
  certification programs, records are required to be maintained of the tests    
  performed to support the certification application, and these records must be 
  made available to EPA enforcement personnel upon request. Certifiers must     
  maintain records of each vehicle converted including the make of the vehicle, 
  vehicle identification number, serial number of the conversion kit, date and  
  location of the conversion, and the results of the post-installation emission 
  test discussed in the following section.                                      
    c. Conversion installation quality test. i. Background. The CFV emission    
  standards are considerably more stringent than conventional standards, and    
  converted vehicles certified as CFV's will be eligible to earn marketable     
  purchase and emission credits and to receive TCM exemptions as CFVs in the    
  Clean Fuel Fleet program (LEVs, ULEVs, ZEVs or ILEVs). In the NPRM EPA        
  requested comment on whether additional requirements are necessary to ensure  
  compliance with the CFV standards given that the conversion industry          
  historically has consisted of a large number of relatively small businesses   
  that have not previously faced specific emissions performance requirements.   
  Specifically, EPA requested comment on whether it would be useful to require  
  a post-installation test for converted vehicles to assess the quality of the  
  conversion installation from an emissions perspective. Such a test is         
  required by the California Air Resources Board in its regulation of           
  alternative fuel retrofit systems./35/                                        
    Note /35/ Title 13, California Code of Regulations, Sections 2030 and 2031. 
                                                                                
    Of those commenting on this subject, all expressed concern regarding        
  reports of poor emissions performance of some converted vehicles presently in 
  use and stated that EPA should promulgate strict standards to instill         
  consumer confidence in the emissions performance of CFVs. There was support   
  for the EPA concept of a post-installation test requirement to help identify  
  poor installations or defective conversion kit hardware that would otherwise  
  result in high emissions.                                                     
    ii. Summary of today's action. EPA believes that the certification program  
  and warranty and liability provisions promulgated by today's notice address   
  many of the concerns noted in the public comments and will provide a fair     
  degree of confidence that the in-use emissions performance of CFVs will       
  remain within the applicable standards. EPA believes that these provisions,   
  coupled with production line and in-use testing programs, will adequately     
  ensure that installations by larger conversion manufacturers that produce or  
  sell more than 10,000 converted vehicles per year will be performed properly  
  and that the emissions performance of these vehicles will meet expectations.  
  However, EPA believes that it is uncertain whether smaller conversion         
  manufacturers will have the resources and experience to institute the         
  necessary quality control measures. Therefore, to provide greater assurance   
  that conversion hardware is installed properly, EPA will require that each    
  vehicle converted by a manufacturer that sells or produces less than 10,000   
  converted vehicles per year undergo a post-installation test to assess the    
  quality of the installation from an emissions perspective before it may be    
  sold as a CFV or is eligible for special benefits available under the CFF     
  program./36/ For vehicles that fail the post-installation test, the certifier 
  will be required to take such remedial actions as are necessary to ensure     
  compliance, and to retest each vehicle before it is sold as a CFV.            
    Note /36/ These special benefits include potential eligiblity for a         
  purchase credit in the fleet program and exemptions from some transportation  
  control measures (TCMs). Converted vehicles could also potentially qualify as 
  Inherently Low-Emissions Vehicles (ILEVs) under the program promulgated in    
  March 1, 1993 (58 FR 11888), and receive expanded TCM exemptions. Finally,    
  converted vehicles could generate mass emission credits for trading under     
  state programs developed as part of the Federal Economic Incentives Program   
  under the Clean Air Act (58 FR 11110, February 23, 1993).                     
                                                                                
    Another point that supports the need for a post-installation test for       
  small-volume conversion manufacturers is the anticipated difficulty in        
  conducting production line emissions testing at small manufacturers'          
  facilities. In such cases, small production volumes will make the necessary   
  statistical sampling difficult to achieve, and such manufacturers will not    
  generally have on-site test equipment capable of running FTP testing. Due to  
  these difficulties, EPA will not be able to rely on production line testing   
  of small manufacturers to the same degree as it will for larger volume        
  manufacturers. Requiring post-installation testing of small-volume            
  manufacturers helps to compensate for this limitation.                        
    EPA proposed to allow manufacturers that convert fewer than 300 vehicles    
  per year special exemptions from the post-installation test requirements when 
  access to inspection and maintenance test facilities is not available in the  
  area where the production facility for converted vehicles is located./37/ EPA 
  believes that it is unlikely that manufacturers will be located in areas      
  without access to such facilities. However, inspection and maintenance        
  testing is not available for heavy duty vehicles in all areas, and the        
  alternate two-speed idle post-installation test may represent a significant   
  burden for small manufacturers. Therefore, in cases where inspection and      
  maintenance testing is not available, manufacturers which sell or produce     
  fewer than 300 vehicles in a calendar year may request an exemption from EPA  
  from the post-installation test requirement. Included in the request for      
  exemption must be the estimated number of vehicles and engines that the       
  manufacturer will convert in the calendar year, a description of any          
  emissions related quality control procedures used, and sufficient information 
  to demonstrate that the post-installation testing requirement represents a    
  severe financial hardship. Within 120 days of receipt of the application for  
  exemption, the Administrator will notify the applicant either that an         
  exemption has been granted, or that sufficient cause for an exemption has not 
  been demonstrated and that all of the manufacturer's vehicles are subject to  
  the post-installation testing requirement.                                    
    Note /37/ The sugeested guidelines for the post installation test were      
  placed in Section II-A of the public docket.                                  
                                                                                
    If granted, an exemption from the post installation testing requirement     
  would apply only to the manufacturer's vehicles which have the conversion     
  installations performed outside of a nonattainment area with an inspection    
  and maintenance testing program that has a test for CO emissions. A small     
  manufacturer that is exempted from the post-installation test requirement     
  could sell untested converted vehicles otherwise certified as CFVs. These     
  vehicles could be used by covered fleet owners in compliance with CFFV        
  purchase requirements, would be eligible for temporal TCM exemptions, would   
  be eligible to participate in the CFF purchase credit program, and could      
  qualify as ILEVs.                                                             
    EPA considered allowing the post-installation test to be alternately        
  conducted by the purchaser to provide additional flexibility for those        
  manufacturers who may not have access to inspection and maintenance test      
  facilities. Upon further evaluation of this option, EPA believes that it is   
  unworkable given that it would create a situation where the requirements for  
  producing a certified vehicle would not be complete until after the           
  manufacturer transferred the title of the converted vehicle to the ultimate   
  purchaser. To be eligible as a CFV, each vehicle emission control information 
  label /38/ must state that it is a clean fuel vehicle (indicating that a      
  post-installation test was performed as required). The transfer of the        
  vehicle title before all of the criteria for certification of the converted   
  vehicles are met would raise doubts as to the validity of such a label given  
  that a vehicle purchaser could fail to perform the required test.             
    Note /38/ See 40 CFR 86.085-35 regarding additional labeling requirements.  
                                                                                
    Public comment largely supported the use of a CO emissions test such as     
  that discussed in the NPRM for the post-installation emission evaluation.     
  Commenters agreed that the approach proposed by EPA would be useful in        
  uncovering gross installation errors and would provide an additional level of 
  assurance that CFV emission standards will be met in-use. EPA believes that   
  the simple requirements of such a CO emissions test will fulfill the goal of  
  uncovering gross installation errors without imposing a significant burden on 
  small-volume manufacturers./39/ It should be noted that this test is intended 
  as a screening mechanism only and may not be as discriminating of emissions   
  levels as tests performed for inspection and maintenance purposes or a full   
  Federal Test Procedure.                                                       
    Note /39/ ibid.                                                             
                                                                                
    Two options will be available to satisfy the post-installation test         
  requirement. Under both options, a separate test would be required for dual-  
  fuel vehicles for each fuel on which the converted vehicle is capable of      
  operating. Under the first option, a CO emissions test could be performed     
  using the same equipment, procedure, and pass/fail criteria as that used      
  under the inspection and maintenance testing program in the area where the    
  testing is conducted. This test could be performed at an official inspection  
  and maintenance facility, by the manufacturer, or by the manufacturer's       
  contractor. If pass/fail criteria specific to the converted vehicle's         
  operation on alternative fuel are not available the pass/fail criteria        
  applicable to the vehicle's operation on gasoline prior to conversion will be 
  used. In cases where inspection and maintenance testing procedures are not    
  available the second post-installation testing option described below must be 
  used. The second post-installation testing option may also be used in areas   
  where inspection and maintenance facilities are available at the              
  manufacturer's discretion.                                                    
    In the NPRM EPA discussed adopting a single-speed idle test per 40 CFR      
  85.2212 as an alternative to the inspection and maintenance testing           
  facilities procedure described above. Since the publication of the NPRM, EPA  
  has further evaluated the capabilities and limitations of potential post-     
  installation test procedures and has determined that measuring CO emissions   
  on an existing two-speed idle test /40/ would provide greater assurance of    
  properly identifying gross installation errors while limiting the potential   
  of false failures as compared to a single-step idle test. EPA believes that   
  the minor change from a single-speed to a two-speed idle test will not add    
  significantly to the cost and difficulty of post-installation testing./41/    
  The California Air Resources Board's regulation of alternative fuel retrofit  
  systems also requires that a two-speed idle test be performed as part of a    
  post-installation vehicle evaluation./42/ For these reasons, EPA is adopting  
  the two-speed idle test of CO emissions as the required post-installation     
  test when an inspection and maintenance test procedure is not available.      
    Note /40/ The two-speed idle test (40 CFR 85.2215, "EPA 91") is described   
  in the Short Test Emission Regulations Final Rule, 58 FR 58405-58407.         
    Note /41/ The two-speed idle test requires a tachometer and a special       
  multiple emission measurement computer software algorithm that are not        
  required for the single-speed idle test. However, many emissions testing      
  facilities will already have access to such equipment and EPA believes the    
  cost to those who may need to acquire the additional equipment to be less     
  than $300.                                                                    
    Note /42/ Title 13, California Code of Regulations, Sections 2030 and 2031. 
                                                                                
    A two-speed idle test is required to be performed on the certification      
  vehicle during certification testing to establish reference values (at idle   
  and 2500 rpm) against which post-installation test results may be compared.   
  EPA considered requiring that each vehicle's post-installation test CO        
  emissions measurement be below the reference value established at the time of 
  certification plus 20 percent of the reference value. The comment received    
  from the public on the post-installation test pass/fail criteria indicated    
  that the CO emissions of some CFVs may be so low as to make the use of a cut  
  point at this level impractical given the measurement accuracy of the test.   
  One commenter suggested an alternative cut point of the CO certification      
  reference value plus 0.4 percent CO by volume.                                
    This cutpoint is very similar to the 0.5 percent CO standard promulgated    
  for the certification short test (CST) two-speed idle procedure for gasoline- 
  fueled vehicles (58 FR 58382-58440, November 1, 1993). The choice of the CST  
  standard was based on a review of data collected from inspection and          
  maintenance facilities that employ a two-speed idle test which indicate that  
  production line gasoline powered vehicles from non-pattern failure engine     
  families could easily meet a 0.5 percent CO standard./43/ Since the CO        
  emissions of CFVs can be expected to be no greater than, and in many cases    
  are expected to be less than, those from vehicles meeting Tier 1 and Tier 2   
  standards, EPA believes that properly manufactured CFVs can also easily meet  
  a 0.5 percent CO standard and will therefore not have difficulty in meeting a 
  standard of 0.4 percent plus the certification reference value (the sum of    
  which will likely total more than 0.5 percent in most instances). Based on    
  the above discussion, EPA agrees that a cut point of the CO certification     
  reference value plus 0.4 percent CO by volume provides reasonable assurance   
  that gross installation errors will be discovered while sufficiently limiting 
  the probability of false test failures, and therefore will adopt this pass/   
  fail criteria for the two-speed idle post-installation test.                  
    Note /43/ Sierra Research Inc., "Analytical Support for Selection of        
  Certification Short Test Standards", Report No. SR93-03-0, EPA Air Docket NZ-
  91-21, item IV-A-01, March 4, 1993.                                           
                                                                                
  C. The California Pilot Test Program                                          
                                                                                
    The Pilot program will be federally administered in the State of California 
  and will require vehicle manufacturers to sell a minimum number of clean-fuel 
  LDVs and LDTs in California starting in MY 1996. Unlike the CFF program, the  
  Pilot program's requirements do not include HDVs. The CAA gives EPA several   
  responsibilities with regard to the Pilot program. EPA has already            
  implemented a credit program for vehicle manufacturers (57 FR 60038, December 
  17, 1992; 40 CFR 88.304-94) and today's action covers vehicle sales           
  requirements and state opt-in provisions. The light-duty vehicle and truck    
  CFV emission standards applicable to vehicles under both the Pilot and CFF    
  program are discussed above under section A.1.a.                              
                                                                                
  1. Sales Requirements                                                         
                                                                                
    a. CAA Requirements. Section 249(c) of the CAA requires EPA to promulgate   
  regulations requiring that "[c]lean fuel vehicles shall be produced, sold,    
  and distributed (in accordance with normal business practices and applicable  
  franchise agreements) to ultimate purchasers in California (including owners  
  of covered fleets . . .) in numbers that meet or exceed" 150,000 in MYs 1996  
  through 1998 and 300,000 in MYs 1999 and later. However, the CAA does not     
  direct EPA on how to distribute these sales requirements among vehicle        
  manufacturers. Section 249(d) allows EPA to make available credits for use in 
  the "fulfillment of [a] manufacturer's share of the requirements" of the      
  Pilot program. As mentioned earlier, EPA has established a credit program     
  that allows manufacturers to use credits to meet the sales requirements of    
  the Pilot program.                                                            
    b. CARB requirements. CARB's Low Emission Vehicle (LEV) Program will        
  require the sale of vehicles meeting more stringent exhaust emission levels   
  by establishment of (1) a decreasing fleet average NMOG emission requirement  
  (for manufacturers of vehicles up to 6,000 lbs GVWR) and (2) through direct   
  sales percentage requirements (for manufacturers of vehicles from 6,000 to    
  14,000 lbs GVWR). (Note: The Pilot program and the California LEV program     
  will overlap only for those vehicles up to 8,500 lbs GVWR, as the Pilot       
  program does not cover vehicles beyond this GVWR.)                            
    The CARB program will require each manufacturer of vehicles up to 6,000 lbs 
  GVWR to sell LEVs in each of two LVW subclasses (</=3750 and 3750-5750 lbs    
  LVW) . Each manufacturer will need to sell a sufficient number of LEVs such   
  that the manufacturer's California fleet average NMOG exhaust emission value  
  is less than or equal to a fleet average NMOG exhaust emission requirement    
  for the corresponding model year, vehicle type, and LVW subclass. In addition 
  to meeting the fleet average NMOG requirement, each manufacturer must also    
  sell a required minimum percentage of ZEVs starting in the 1998 MY. Also      
  beginning with MY 1998, CARB requires that manufacturers of medium-duty       
  vehicles (i.e., trucks from 6,001 to 14,000 lbs GVWR) certify enough such     
  vehicles to CARB's emission standards such that the manufacturer's fleet      
  consists of a minimum percentage of ULEVs.                                    
    The projected sales of vehicles in California resulting from the CARB LEV   
  program are likely to far exceed the sales of CFVs under the Pilot program.   
  Based on the projected sales of only LDVs and LDTs under 3,750 LVW in 1996    
  and 1999, sales under the CARB LEV program are expected to reach about 200    
  and 400 percent of the Pilot program CFV sales requirements, respectively.    
  Unless and until EPA adopts California standards for CFVs, CARB LEVs which do 
  not meet federal CFV requirements could not be counted in the Pilot program   
  (although vehicles meeting CFV requirements will likely meet the exhaust      
  emission requirements of the CARB LEV program).                               
    c. California Pilot Program sales requirements--i. "Sales" definition. CAA  
  Section 249(c)(1) requires that "[c]lean fuel vehicles be produced, sold, and 
  distributed to ultimate purchasers in California". EPA is today establishing  
  this requirement as applying at the first point of sale from the manufacturer 
  to the dealer or ultimate owner. Until such time as EPA formally changes its  
  interpretation of section 249(c), manufacturers covered by the Pilot program  
  may not use sales of converted vehicles to meet the sales requirements of the 
  Pilot program. Similarly, manufacturers of conversions are not subject to the 
  sales requirements. As was stated in the NPRM for this rule, nothing in       
  section 249(c)(1) requires that conversions be part of the CFV sales          
  requirements. Furthermore, section 247 sets forth requirements applicable to  
  conversions and states that conversions to CFVs that meet those requirements  
  may be used to satisfy the purchase requirements of the federal CFF program;  
  however, there is no mention of the Pilot program.                            
    In light of the evolving regulatory framework affecting conversions,        
  culminating with today's provisions for CFV conversions, EPA is reconsidering 
  whether it is appropriate for manufacturers of CFV conversions to participate 
  in the Pilot program. This reconsideration is largely due to the fact that    
  manufacturers of CFV conversions under today's rule will be treated like      
  vehicle manufacturers for purposes of compliance with EPA emission            
  regulations. EPA may propose by regulation in the future to include           
  manufacturers of conversions in the Pilot program. EPA will solicit public    
  comment on this issue at that time.                                           
    ii. Manufacturer sales distribution. Although CAA section 249 clearly       
  indicates that vehicle manufacturers are responsible for meeting sales        
  requirements, it does not cover how the sales requirements are to be          
  allocated among manufacturers. Sales under the California LEV Program are     
  likely to far exceed the sales requirements set forth in the Pilot program    
  and, since the vehicles for the two programs will be identical or at least    
  very similar, the Pilot program requirements will likely be easily satisfied. 
  As a result, any method for allocating sales requirements among manufacturers 
  will have little impact.                                                      
    Two options for determining a manufacturer's individual sales allocation    
  were presented in the NPRM. In both options, an equation was used to          
  calculate a manufacturer's share of required CFV sales based on the share of  
  that manufacturer's vehicle sales in the State of California during the       
  previous model year. Under Option 1, EPA would be responsible for calculating 
  the individual sales responsibilities; in the second option, manufacturers    
  would perform the computation. The primary concern of those commenters who    
  responded was that only California vehicle sales be considered since the      
  Pilot program was to be implemented in California. The proposed regulations   
  were written based on the second option and it is this option that is         
  finalized today.                                                              
    A manufacturer's share of the total CFV sales requirement in any given year 
  (150,000 CFVs annually for 1996-1997; 300,000 CFVs annually thereafter) will  
  be based on the ratio of the manufacturer's sales to all sales in California  
  according to the following equation:                                          
                                                                                
  RMS = (MS/TS) x TCPPS                                                         
                                                                                
  WHERE:                                                                        
                                                                                
  RMS = a manufacturer's required sales in a given model year.                  
  MS = a manufacturer's total LDV and light LDT sales in California two model   
      years earlier than year in question (for MY 1996 and 1997 RMS             
      calculations).                                                            
    = a manufacturer's total LDV and light LDT sales in California two model    
  years earlier than year in question (for MY 1998 and later RMS calculations). 
  TS = total LDV and light LDT sales in California of all manufacturers two     
      model years earlier than the year in question (for MY 1996 and 1997 RMS   
      calculations). Sales of manufacturers which meet the criteria of (d) of   
      this paragraph will not be included.                                      
    = total LDV and light LDT sales in California of all manufacturers two      
  model years earlier than the year in question (for MY 1998 and later RMS      
  calculations). Sales of manufacturers which meet the criteria of (d) of this  
  paragraph will not be included.                                               
  TCPPS = Pilot program CFV sales requirement for the year in question (either  
      150,000 or 300,000).                                                      
                                                                                
  Each manufacturer will use this equation to determine its individual CFV      
  sales requirement. The two factors, MS and TS, will be based on vehicle sales 
  two MYs from the year in question (e.g, for MY 1996, a manufacturer will use  
  sales data from MY 1994). In the NPRM, EPA requested comment as to whether a  
  manufacturer's share of required CFV sales should be calculated based on      
  sales in the previous model year or sales two model years prior. Commenters   
  did not address this issue. EPA believes that using MY sales data that is two 
  years prior, as opposed to only one year, is not likely to reflect the most   
  recent market changes and will also allow new manufacturers a two year delay  
  before they are factored into the equation; however, it will provide          
  manufacturers with sufficient time for planning their CFV production and will 
  also require less administration and oversight on the part of both EPA and    
  manufacturers. EPA believes that the CFV sales distribution that will result  
  among manufacturers will be fair and equitable in light of these advantages.  
  Therefore, EPA is finalizing the requirement that California sales figures    
  from two model years earlier be used by manufacturers to calculate required   
  CFV sales shares.                                                             
    Since heavy LDT standards under the Pilot program are not effective until   
  MY 1998, a manufacturer's share of required sales for MYs 1996 and 1997 will  
  be based on LDV and light LDT sales only. All LDV and LDT sales will be used  
  once the CFV standards for heavy LDTs are in effect beginning with MY 1998.   
    iii. Exemptions for small volume manufacturers. EPA proposed that, for the  
  Pilot program, small volume manufacturers of clean-fuel LDVs and LDTs would   
  not have to fulfill a calculated share of the required CFV sales requirements 
  until the 2001 MY. EPA is finalizing this requirement today. However, in 2001 
  and subsequent model years, no further distinction will be made between small 
  volume manufacturers and larger manufacturers for purposes of the Pilot       
  program.                                                                      
    As defined in the CARB LEV program, a small volume manufacturer has average 
  annual vehicle sales less than or equal to 3,000 vehicles based on the        
  consecutive three-year period 1989-1991. If a small volume manufacturer       
  exceeds this average level, they are then subject to the LEV program fleet    
  average NMOG requirements applicable to larger manufacturers beginning four   
  model years after the last of the consecutive three model years. Larger       
  manufacturers with average sales that fall below the 3,000 unit threshold     
  over any consecutive three-year period qualify as small volume manufacturers  
  beginning with the following model year.                                      
    Due to the many parallels between the Pilot program and the CARB LEV        
  program, EPA continues to believe it is logical that the "small volume        
  manufacturer" definition under the Pilot program should be as similar as      
  possible to the definition under the CARB LEV program. Several commenters     
  also supported consistency between the two programs. Therefore, for purposes  
  of the Pilot program, EPA is defining "small volume manufacturer" as one      
  whose average annual LDV and LDT sales in California are less than or equal   
  to 3,000 units during a consecutive three-year period beginning no earlier    
  than 1993. (This accommodates new manufacturers who may have less than three  
  consecutive years of sales but which do not exceed the 3,000 threshold.) And, 
  like CARB, EPA is also granting leadtime to small volume manufacturers who    
  exceed the average annual level. A manufacturer who qualifies as a small      
  volume manufacturer for the first year of the Pilot program (i.e., in model   
  year 1996) will not have to fulfill a CFV sales requirement until model year  
  2001. As proposed in the NPRM and finalized here today, beginning with model  
  year 2001, all manufacturers, regardless of average annual sales, will have   
  to calculate and fulfill their CFV sales share based on the formula above.    
  This five-year delay is intended to encourage the viability of small volume   
  manufacturers whose limited capital and resources do not allow them to comply 
  as easily. It is also intended to provide consistency with the CARB LEV       
  program and minimize adminstrative burden.                                    
    iv. Sales reporting and enforcement of requirements. In order for EPA to    
  administer and enforce the sales requirements of the Pilot Program,           
  manufacturers will have to report their California vehicles sales to EPA.     
  Currently, there is a requirement for manufacturers to submit sales data to   
  EPA in Code of Federal Regulations (CFR), 40 CFR 86.085-37); however, the     
  reporting requirements do not distinguish between California vehicle sales    
  and sales throughout the U.S. Such a distinction is necessary for purposes of 
  the Pilot Program. Therefore, EPA will require that manufacturers, in         
  addition to complying with the requirements of 40 CFR 86.085-37, report the   
  number of vehicles sold only in California.                                   
    If a manufacturer fails to meet its required sales volume, EPA believes     
  that it has the authority to penalize the manufacturer to the full extent     
  allowed for such an infraction under CAA section 205(a). In accordance with   
  this section, a $25,000 penalty will be levied on a manufacturer in the event 
  of a failure to meet the prescribed sales requirements for certified Pilot    
  Program vehicles.                                                             
                                                                                
  2. State Opt-In Program                                                       
                                                                                
    CAA section 249(f) requires that EPA promulgate regulations which will (1)  
  allow states other than California to encourage the sale of CFVs in their     
  state which are sold in California under the Pilot program and (2) allow such 
  states to use incentives to promote the sale and use of CFVs and clean        
  alternative fuels. States opting into the program may voluntarily decide to   
  implement a clean fuel vehicle incentive program as described in this Final   
  Rule.                                                                         
    Any state that contains all or part of any ozone nonattainment area that is 
  classified under subpart D of Title I as serious, severe, or extreme can      
  choose to submit a revision of their applicable state implementation plan     
  (SIP) under part D of Title I and section 110. A state's SIP shall include    
  incentives for the sale and use of CFVs and for the production and            
  distribution of clean alternative fuels such as those that are required to be 
  produced, sold, and distributed in the State of California. These SIP         
  provisions shall come into effect at least one year after the state has       
  notified vehicle manufacturers and fuel suppliers of the plan provisions.     
    As mentioned above, section 249(f) directs EPA to establish the voluntary   
  opt-in program under which states may use incentives to promote the sale and  
  use of CFVs and clean alternative fuels. Examples of incentives listed in     
  section 249(f) include higher registration fees for non-CFVs, financial       
  incentives, exemptions from high occupancy vehicle or trip reduction          
  requirements, and parking preferences. Today's rule establishes these         
  incentives for use by states under a section 249(f) opt-in provision. States  
  may develop additional incentives, as well, subject to EPA approval via the   
  SIP approval process.                                                         
    Section 249(f) prohibits a state opting into the program from including     
  sales or production mandates for CFVs or clean alternative fuels in its SIP   
  revision opting into the Pilot program. In addition, the SIP revision must    
  provide that vehicle manufacturers and fuel suppliers will not be penalized   
  or subject to sanctions for failing to produce or sell CFVs or clean          
  alternative fuels.                                                            
                                                                                
  D. Technical Amendments to CFF Definitions and Other Clarifications           
                                                                                
  1. Explanatory Language in the Preamble of the Final Rulemaking for Clean     
  Fuel Fleet Definitions and General Provisions Is Clarified in Four Areas, as  
  Described Below                                                               
                                                                                
    a. The role of fleet payment methods in establishing whether fleet vehicles 
  are centrally fueled. In the description of "contract fueling" as it pertains 
  to the definition of "centrally fueled" (section III(3)(a) of the Definitions 
  final rule preamble, 58 FR 64679, December 9, 1993), EPA indicated that the   
  nature of the method of payment used by a fleet operator for fuel purchases   
  might be useful for determining whether the fueling arrangement constituted   
  "central fueling." In its description, EPA stated that "retail credit cards"  
  would not represent central fueling arrangements while "commercial fleet      
  credit cards" would represent such arrangements.                              
    Since the time of the final rule, parties representing fleet leasing        
  companies and independent fuel marketers informed the Agency that the         
  emerging business in broad national fleet fueling cards requires further      
  clarification of this issue. These parties have indicated that the use of     
  such cards, which generally include a wide network of fuel providers          
  nationwide and an administrative system for monitoring fuel purchases, do not 
  necessarily indicate that fueling is occurring at a central facility or set   
  of facilities. Similarly, the use of retail credit cards does not prove that  
  fueling is not occurring in a centralized way. EPA believes there is value in 
  these observations, and the Agency will no longer recommend that states look  
  to the payment method as a key indicator of the presence or absence of        
  central fueling. Instead, EPA recommends that states look at the actual       
  refueling patterns used by fleet operators. When an individual fleet's        
  fueling is limited to a single location or a prescribed and identified set of 
  locations within the operational range of the vehicles, EPA believes this     
  situation represents central fueling, regardless of the method of payment for 
  the fuel. As the implementation of state fleet programs evolves, EPA may      
  consider further clarification of this issue, by rule or by guidance.         
    b. Clarification of the determination of whether a fleet is "capable of     
  being centrally fueled". In the preamble of the Definitions final rulemaking, 
  EPA described a preferred technique for determining fleets capability of      
  being centrally fueled, based on the number of miles from trips that could be 
  centrally fueled. Because of an editorial oversight, portions of section      
  III(4)(a)(i) and (4)(c) of the Definitions final rule preamble may be         
  misleading (58 FR 64679, December 9, 1993). EPA wishes to clarify that the    
  number of miles from trips that could be centrally fueled should be tabulated 
  only from those trips that do not require the fleet vehicle to travel outside 
  of its operational range (i.e., the distance a vehicle is able to travel on a 
  round trip with a single refueling). This clarification makes the method of   
  calculation consistent with the stated intent of the overall determination    
  procedure.                                                                    
    c. Correction to reference in the definition of "owned or operated, leased, 
  or otherwise controlled by such person". The definition of "owned or          
  operated, leased, or otherwise controlled by such person" in Sec. 88.302-94   
  of the Definitions final rule regulations may be misleading (58 FR 64679,     
  December 9, 1993). Paragraph (2) within this definition refers to the         
  definition of "control" as being in paragraph (c) of Sec. 88.302-94; however, 
  the definition of "control" is not designated as paragraph (c). Thus, EPA     
  wishes to clarify that in the definition of "owned or operated, leased, or    
  otherwise controlled by such person" it intended to refer to the definition   
  of "control" in Sec. 88.302-94.                                               
    d. Correction to the instructions for the promulgation of Sec. 88.308-94 of 
  the regulations, entitled "Programmatic requirements for clean-fuel fleet     
  vehicles". Because of an editorial error, the definition of "multi-state      
  nonattainment areas" (Sec. 88.308-94) in the Definitions final rule           
  regulation (58 FR 64679, December 9, 1993) was described as an amendment to a 
  previously promulgated section instead of a new definition to be promulgated  
  in a new section of part 88. Thus, EPA wishes to clarify that it intended to  
  add a new Sec. 88.308-94 to 40 CFR part 88.                                   
                                                                                
  2. Harmonization of ILEV Exhaust Standards and Test Procedures With the CFV   
  Provisions                                                                    
                                                                                
    In EPA's final rule on "Clean Fuel Fleet Credit Programs, Transportation    
  Control Measure Exemptions, and Related Provisions" (58 FR 11888, March 1,    
  1993), Inherently Low-Emission Vehicle (ILEV) emission standards and test     
  procedures were established. The exhaust emission standards were published in 
  tables C93-6, C93-6.1, and C93-6.2.                                           
    With the finalizing of exhaust emission standards and test procedures in    
  today's rule, the earlier treatment of ILEV standards and test procedures for 
  exhaust emissions are now obsolete. Technical revisions of the ILEV           
  regulations are included in today's rule. These changes have the effect of    
  focusing ILEV exhaust requirements on those of other CFVs, while the special  
  ILEV evaporative emissions standard and test procedure remains unchanged.     
                                                                                
  E. Display of OMB Control Numbers                                             
                                                                                
    EPA is also amending the table of currently approved information collection 
  request (ICR) control numbers issued by OMB for various regulations. This     
  amendment updates the table to accurately display those information           
  requirements contained in this final rule which have already been approved.   
  This display of the OMB control number and the subsequent codification in the 
  Code of Federal Regulations satisfies the requirements of the Paperwork       
  Reduction Act (44 U.S.C. 3501 et seq.) and OMB's implementing regulations at  
  5 CFR 1320.                                                                   
    The ICR was previously subject to public notice and comment prior to OMB    
  approval. As a result, EPA finds that there is "good cause" under section     
  553(b)(B) of the Administrative Procedure Act (5 U.S.C. 553(b)(B)) to amend   
  this table without prior notice and comment. Due to the technical nature of   
  the table, further notice and comment would be necessary. For the same        
  reasons, EPA finds that there is good cause under 5 U.S.C. 553(d)(3).         
                                                                                
  F. Regulatory Impacts                                                         
                                                                                
    The economic and environmental impacts of this rulemaking are only from the 
  provisions pertaining to the Clean Fuel Fleet Program since the impacts of    
  the California Pilot Program will most likely be superseded by the projected  
  effect of the CARB LEV program and other federal requirements and should not  
  create additional economic or environmental impact. EPA has prepared a        
  Regulatory Impact Analysis (RIA) that evaluates the program costs, potential  
  program benefits, and cost effectiveness of the Clean Fuel Fleet Program. As  
  described in the proposal, included here is a summary of the results of those 
  analyses. The program costs and potential benefits related to light-duty      
  vehicles and trucks are evaluated separately from those of heavy-duty         
  vehicles (above 8,500 lbs GVWR) because the CFV standards and the technology  
  used to meet them are very different for the light-duty and heavy-duty        
  classes.                                                                      
                                                                                
  1. Program Costs                                                              
                                                                                
    a. Light-duty vehicles and light-duty trucks. As described in the proposal, 
  to estimate the potential costs of clean-fuel LDVs and LDTs, EPA has          
  developed two scenarios representing different assumptions about the future   
  use of nonconventional fuels. Scenario I assumes no major changes from        
  conditions that exist today. Scenario II assumes the emergence of some        
  driving force that would encourage or require OEMs to offer more non-         
  petroleum fuel/vehicle combinations.                                          
    Using the above scenarios, the incremental acquisition and operating costs, 
  coupled with estimates of the number of CFVs operating, can be used to        
  estimate an overall cost of the fleet program for LDVs and LDTs. The          
  incremental acquisition cost is the amount a fleet owner must pay for a CFV   
  above the cost of a comparable conventional vehicle, and different            
  incremental costs are associated with each vehicle/fuel type. As in the       
  proposal, EPA estimates an incremental acquisition cost of $170 for vehicles  
  fueled with reformulated gasoline, $300 for alcohol-fueled vehicles, $2,000   
  for gaseous-fueled vehicles, and $3,300 for electric vehicles.                
    Another fleet program cost is incurred in the operation of clean-fuel       
  vehicles. Estimated operating costs, for all of the vehicle/fuel              
  combinations, are based solely on fuel costs, since no additional maintenance 
  is expected for CFVs above their conventional counterparts. As in the         
  proposal, compared to conventional gasoline equivalent cost of $1.31 in the   
  year 2000, the projected gasoline equivalents for the same year are as        
  follows: $1.36 for reformulated gasoline, $1.12 for alcohol fuels, $1.09 for  
  CNG, $0.62 for LPG, and $1.12 for electricity. Thus, all fuels except for     
  reformulated gasoline represent a cost savings when compared to the estimated 
  price of conventional gasoline in the year 2000.                              
    The incremental costs for new CFV acquisitions and their operation were     
  summed for each future year between 1998 and 2010 to yield an estimated total 
  annual cost of the fleet program for LDVs and LDTs. The present value costs   
  under Scenario I for the years 1998 through 2010 is almost $709 million in    
  1998 dollars. Under Scenario II, the present value of the potential costs in  
  years 1998 through 2010 is estimated at $673 million in 1998 dollars. (In     
  contrast to the proposal, the discount rate used in this analysis is 7        
  percent instead of 10 percent as recommended by EPA's Office of Policy,       
  Planning, and Evaluation.) /44/ Projected annual costs for each of the years  
  from 1998 to 2010 are presented in the RIA. This analysis does not take into  
  account infrastructure costs. EPA has examined the sensitivity of the         
  projected incremental acquisition and operating costs results in the RIA to   
  other reasonable estimates of future acquisition and operating costs and      
  concluded that the impact on the cost effectiveness is not major.             
    Note /44/ EPA Office of Policy, Planning and Evaluation, "OMB Presentation  
  and Discussion on OMB Circular A-94 Regarding Discount Rates and Benefit-Cost 
  Analysis," Memorandum from Brett Snyder to Addressees, March 23, 1993.        
                                                                                
    b. Heavy-duty vhicles. As described in the draft RIA for the proposal,      
  incremental acquisition costs were estimated for conventional gasoline and    
  diesel HDVs expected to be capable of meeting CFV standards through the use   
  of technological changes rather than the use of clean fuels themselves.       
  However, possible manufacturing process changes or slightly higher component  
  costs may be incurred when adapting these technologies to HDEs. The analysis  
  projects that these changes could increase the variable production cost of    
  heavy-duty gasoline engines by $50.00 and heavy-duty diesel engines by about  
  $100.00. Factoring in a 29 percent overhead and profit mark-up would bring    
  the estimated increase in manufacturing costs to $65 and $129 per engine for  
  gasoline and diesel engines respectively. In addition to this increased       
  manufacturing/component cost per engine, consumers will also have to pay for  
  the amortized cost of research and development and engine certification, as   
  well as retail price mark-up. Manufacturers are expected to recover the       
  development costs over the first five years of engine sales. Thus, using a    
  more conservative range of projected costs than in the proposal, the total    
  incremental acquisition cost is estimated at $246 more per gasoline engine    
  and $477 more per diesel engine for the first five years of the program as    
  compared with engines used in conventional heavy-duty vehicles. During the    
  remaining years of the program, the total incremental acquisition cost is     
  estimated at $178 more per gasoline engine and $338 more per diesel engine.   
    Gasoline- and diesel-fuel HDVs meeting CFV standards are not expected to    
  have added fuel or maintenance costs compared to conventional HDVs. However,  
  EPA expects that approximately 10 percent of all fleet HDVs will need to be   
  operated on reformulated gasoline in an area where reformulated gasoline is   
  not routinely supplied. Thus, as in the proposal, an incremental fuel cost of 
  five cents per gallon is applied to approximately 10 percent of all fleet     
  HDVs.                                                                         
    The incremental costs for new CFV acquisitions and operations were summed   
  for each year from 1998 to 2010 to yield an estimated total annual cost of    
  the fleet program for HDVs. As described in the proposal, three scenarios     
  were developed based on differing assumptions about vehicle mix and about     
  costs of alternative-fuel vehicles compared to conventional HDVs. The first   
  scenario, Scenario A, assumes conventional-fuel vehicles will be purchased    
  for the fleet program, while the second, Scenario B, assumes 20 percent of    
  CFVs will be nonconventional-fuel vehicles. The third scenario, Scenario C,   
  assumes 30 percent of CFVs are nonconventional-fuel vehicles. Thus, for the   
  first twelve years of the program 1998 present value cost is estimated to be  
  $67 million for Scenario A, $99 million for Scenario B, and $30 million for   
  Scenario C (using a discount rate of 7 percent)./45/                          
    Note /45/ As in proposal, Scenario C assumes that purchases of              
  nonconventional-fuel vehicles are driven by a hypothetical combined           
  acquisition and operating cost that is below the cost of conventional HDVs.   
                                                                                
  2. Program Benefits                                                           
                                                                                
    As with the draft RIA for the proposal, the final RIA presents an analysis  
  of the expected emission benefits of the Clean Fuel Fleet Program. These      
  benefits were estimated by comparing the total emissions from covered fleet   
  vehicles to the emissions which the same number of conventional vehicles      
  would produce in the absence of a fleet program. As in the economic analysis, 
  the emission benefits of LDVs and LDTs were studied separately from HDVs, and 
  the results of both are summarized below. The same scenarios used in the      
  economic analysis (i.e., assuming different degrees of participation by non-  
  petroleum fueled vehicles) were used in the benefits analysis. Along with     
  vapor emission reductions, reductions in NMOG, NOX, and CO combustion         
  emissions from LDVs and LDTs, and reductions in NMHC, NOX, and CO combustion  
  emissions from HDVs, are discussed below.                                     
    a. Light-duty vehicles and light-duty trucks. To estimate the environmental 
  benefits of the fleet program, emission inventories were generated for two    
  cases. In the base case, the number of covered fleet LDVs and LDTs estimated  
  to be operating in each year were all assumed to be conventional vehicles.    
  The base case emission inventories were calculated by computing lifetime      
  emission factors for conventional (Tier 1) vehicles using the MOBILE5a        
  emission factor model (instead of the specialized analysis using vehicle      
  standards developed for the proposal). Similarly, emission inventories for    
  the covered fleet vehicles were calculated using lifetime emission factors    
  for LEVs from MOBILE5a. The difference between the two inventories yields the 
  emission benifit of the program in terms of NMOG and NOX reductions. The      
  final analyis results in 1998 present value benefits of the light-duty NMOG   
  and NOX reductions realized for the years 1998 through 2010 (using a discount 
  rate of 7 percent) are approximately 11,720 tons and 12,119 tons,             
  respectively.                                                                 
    As in the proposal, since LEVs will not generally achieve CO emission       
  reductions, potential CO inventories were determined using the number of      
  light-duty ULEVs and ZEVs. The 1998 present value benefit of the annual CO    
  reductions is projected to range between 93,694 tons and 120,885 tons.        
    In addition to combustion emission benefits, the fleet program will also    
  realize benefits from vapor emission reductions resulting from use of CNG,    
  LPG, and electric vehicles. Some of these benefits will be achieved by        
  inherently low-emission vehicles (ILEVS); however, a calculation of the       
  amount of vapor reduction attributable to ILEVs was not attempted because the 
  purchase of these vehicles is voluntary and their numbers are very uncertain. 
    As in the proposal, vapor emission benefits of the fleet program were       
  determined by multiplying the number of in-use CFVs projected to be operating 
  on CNG, LPG, and electricity, by the average annual vehicle miles traveled    
  for each class, and by the projected vapor emission reduction (grams/mile/    
  vehicle) expected for each vehicle class. These vapor emission reductions     
  were based on MOBILE5a evaporative emission factors in today's rule instead   
  of MOBILE5.0 evaporative emission factors as were used in the proposal. Even  
  though the new analysis results in lower annual emission reductions, the      
  vapor emission benefits reported in today's rule are higher level than those  
  in the proposal due to the use of the 7 percent discount rate. The 1998       
  present value benefits of the light-duty vapor emission reduction realized    
  from the 1998 through 2000 are approximately 4,654 tons under Scenario I and  
  6,982 tons under Scenario II.                                                 
    Thus, summing the benefits, the 1998 present value benefits of NMOG and CO  
  emission reduction achieved by the light-duty portion of the fleet program    
  for the years 1998 through 2010 are projected to range from 16,400 to 18,700  
  tons and 93,700 to 121,000 tons respectively. The NOX emission reduction is   
  estimated to be approximately 12,100 tons.                                    
    b. Heavy-duty vehicles. As in the proposal and similar to the analysis      
  conducted for light-duty fleet vehicles, the emission benefits of heavy-duty  
  clean-fuel fleet vehicles have been estimated by comparing total emissions    
  from a base case to the emissions from a scenario using clean-fuel fleet      
  vehicles. (Unlike LDVs and LDTs, EPA has not incorporated clean-fuel HDVs     
  into MOBILE5a, and thus, HDVs were modelled in the same way as in the         
  proposal.) The clean-fuel fleet vehicle scenario assumes that all covered     
  fleet HDVs operate at the LEV emission level, and is used to generate         
  emission inventories of NMHC and NOX. CO benefits expected to be realized at  
  the ULEV level are also summarized below (heavy-duty ZEVs are not likely to   
  be a viable option to fleet owners at the time the fleet program begins and   
  thus no CO benefits are expected from vehicles other than heavy-duty ULEVs).  
    Annual emission inventories of NMHC and NOX were generated by multiplying   
  the number of in-use heavy-duty vehicles by the number of vehicle miles       
  traveled and multiplying the result by the appropriate difference in emission 
  factors. The 1998 present value benefits of the heavy-duty NMHC and NOX       
  emission reduction realized from the 1998 through 2010 are approximately      
  4,100 tons and 16,400 tons, respectively. The emission benefits are lower     
  than the benefits reported in the proposal because the combined NMHC+NOX      
  standard was changed from the proposed 3.5 g/Bhp-hr to 3.8 g/Bhp-hr in        
  today's final rule (See section (II)(A)(2) above).                            
    In determining CO benefits, there is no reduction in the CO emission        
  standard for heavy-duty vehicles meeting the minimum clean-fuel fleet vehicle 
  (LEV) requirements, but gasoline ULEVs will achieve a benefit. Those vehicles 
  operating at the ULEV level, will include a 50 percent reduction in CO        
  emissions from their conventional or LEV counterparts. Diesel heavy-duty      
  vehicles are not expected to generate incremental CO benefits since they      
  currently emit below the heavy-duty ULEV standard for CO. The present value   
  of the CO emission benefits are projected to range from 15,500 to 27,000      
  tons/year. Using a discount rate of 7 percent in today's rule instead of the  
  proposed 10 percent rate, results in higher CO emission benefits than were    
  projected in the proposal.                                                    
    Vapor emission benefits were projected for the replacement of gasoline-     
  fueled HDVs by gaseous-fueled HDVs. For the years 1998 through 2010 the       
  program yields 1998 present value vapor emission benefits of 2,700 to 4,500   
  tons. As with LDVs and LDTs, these vapor emission reductions were based on    
  MOBILE5a evaporative emission factors in today's rule instead of MOBILE5.0    
  evaporative emission factors as were used in the proposal, and thus, the      
  vapor emission reductions used in today's rule for HDVs are at a higher level 
  than those emission reductions used in the proposal. (Also, using a discount  
  rate of 7 percent instead of the proposed 10 percent rate contrubuted to the  
  higher levels of vapor emission reductions.)                                  
    Thus, summing the benefits together, the 1998 present values of NMHC and CO 
  emission reduction achieved by the heavy-duty portion of the fleet program    
  for the years 1998 through 2010 are projected to range from 4,100 to 8,600    
  tons and to 15,500 to 27,000 tons respectively. The NOX emission reduction is 
  estimated to be approximately 16,400 tons.                                    
                                                                                
  3. Cost Effectiveness                                                         
                                                                                
    As described in the proposal, for both light-duty and heavy-duty portions   
  of the fleet program, the overall cost effectiveness was determined by        
  dividing the total 1998 present value costs of the first 12 years of the      
  program by the associated discounted 12-year benefits. The overall cost       
  effectiveness for LDVs is estimated to range between $4,400 and $5,800 per    
  ton of all pollutants. The analysis suggests that the fleet program will      
  provide a greater reduction in emissions per dollar spent if more light-duty  
  vehicles operate on alternative fuels. The overall estimated heavy-duty cost  
  effectiveness ranges from $580 per ton to $3,300 per ton.                     
                                                                                
  4. Additional Program Impacts                                                 
                                                                                
    The increased use of clean alternative fuels due to the fleet program may   
  well result in the displacement of some of the use of conventional fuels. As  
  in the proposal, EPA projects for the first twelve years of the Clean Fuel    
  Fleet Program 3.2 to 6.4 billion gallons of petroleum-based fuel could be     
  conserved. In addition to the conservation of petroleum resources, the fleet  
  program may provide a number of non-quantifiable impacts, as well. The        
  program will potentially furnish incentives for the development of clean-fuel 
  vehicle technology, stimulate the vehicle conversion industry, support the    
  wider distribution of alternative fuels and related infrastructure, and       
  encourage the public to purchase and use clean-fuel vehicles.                 
                                                                                
  III. Public Participation                                                     
                                                                                
    As in past rulemaking actions, EPA strongly encouraged full public          
  participation in arriving at final decisions. On July 15, 1993 a public       
  hearing was held for any person to present testimony in response to the       
  proposal, and written comments on this proposal were accepted for a period of 
  sixty days after the hearing (September 15, 1993). EPA has fully considered   
  all of the comments and has modified the proposal to reflect many of the      
  suggestions received. EPA's complete assessment of the comments received can  
  be found in the summary and analysis of comments document for this            
  rulemaking, which has been placed in Docket No. A-92-30 and A-92-69.          
                                                                                
  IV. Statutory Authority                                                       
                                                                                
    The statutory authority for this proposal is provided by sections 241, 242, 
  243, 244, 245, 246, 247(a), 247(b), 249, and 301(a) of the CAA.               
                                                                                
  V. Administrative Designation and Regulatory Analysis                         
                                                                                
    Under Executive Order 12866 [58 Federal Register 51,735 (October 4, 1993)], 
  the Agency must determine whether this regulatory action is "significant" and 
  therefore subject to OMB review and the requirements of the Executive Order.  
  The order defines "significant regulatory action" as one that is likely to    
  result in a rule that may:                                                    
    (1) 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;                           
    (2) Create a serious inconsistency or otherwise interfere with an action    
  taken or planned by another agency;                                           
    (3) Materially alter the budgetary impact of entitlements, grants, user     
  fees, or loan programs or the rights and obligations of recipients thereof;   
  or                                                                            
    (4) Raise novel legal or policy issues arising out of legal mandates, the   
  President's priorities, or the principles set forth in the Executive Order.   
    This rulemaking, covering emission standards for clean-fuel vehicles and    
  engines, CFV conversion requirements, and the California Pilot Program, is    
  considered an "economically significant regulatory action" under this         
  definition, since the Clean Fuel Fleet Program and California Pilot Program   
  together will cost more than $100 million annually in at least some years of  
  its implementation. In addition, this rule is significant in that it          
  represents the first motor vehicle emission control program which focus       
  exclusively on fleets, raising a range of unprecedented issues. Finally, the  
  rule is significant in that it parallels in many ways the alternative fuel    
  fleet program required in the Energy Policy Act, which the Department of      
  Energy is implementing; the areas of overlap between the two programs add to  
  the significance of the rule. For these reasons, an RIA has been prepared,    
  and is available in the docket for this rulemaking.                           
    This final rulemaking was submitted to the Office of Management and Budget  
  (OMB) for review as required by Executive Order 12866. Any written comments   
  from OMB and any EPA response to OMB comments are in the public docket for    
  this rulemaking.                                                              
                                                                                
  VI. Compliance With Regulatory Flexibility Act                                
                                                                                
    The Regulatory Flexibility Act (RFA) of 1980 requires federal agencies to   
  examine the effects of federal regulations and to identify significant        
  adverse impacts on a substantial number of small entities. Because the RFA    
  does not provide concrete definitions of "small entity", "significant         
  impact", or "substantial number", EPA has established guidelines setting the  
  standards to be used in evaluating impacts on small businesses./46/ Section   
  604 of the Regulatory Flexibility Act requires EPA to prepare a Regulatory    
  Flexibility Analysis when the Agency determines that there is a significant   
  adverse impact on a substantial number of small entities.                     
    Note /46/ U.S. Environmental Protection Agency Memorandum to Assistant      
  Administrators, "Compliance With the Regulatory Flexibility Act", EPA Office  
  of Policy, Planning, and Evaluation, 1984. In addition, U.S. Environmental    
  Protection Agency, Memorandum to Assistant Administrators, "Agency's Revised  
  Guidelines for Implementing the Regulatory Flexibility Act", EPA Office of    
  Policy, Planning, and Evaluation, 1992.                                       
                                                                                
    Concerns regarding the potential impact of this regulation on small         
  businesses are related to vehicle conversions. There could be a significant   
  impact on small converters if they were distant from inspection and           
  maintenance testing facilities. Difficulty in using such test facilities to   
  comply with the post-installation emission test requirement could represent a 
  significant economic burden to small manufacturers if they were compelled to  
  rely solely on the alternative two-step idle post-installation test. (See     
  section II.B.2.c. for a discussion of the post-installation testing           
  requirements). However, EPA has no information to indicate that converters    
  which may face such a situation currently exist or will exist in the future.  
  Generally, EPA expects that such a situation would not occur or would occur   
  very infrequently since there are significant economic and logistical         
  advantages associated with locating a vehicle conversion facility within or   
  close to an urban area. In any event, the rule provides for converters of 300 
  or fewer vehicles per year to request an exemption from the post-installation 
  test if a severe economic hardship can be demonstrated.                       
    EPA has evaluated the effects of this regulation and the Administrator of   
  EPA certifies that there will not be an adverse impact on a substantial       
  number of small entities. Therefore, a Regulatory Flexibility Analysis was    
  not conducted.                                                                
                                                                                
  VII. Paperwork Reduction Act                                                  
                                                                                
    The information collection requirements in this rule pertaining to the      
  California Pilot Program and the post-installation test for converted         
  vehicles have been submitted to OMB for approval under the Paperwork          
  Reduction Act, 44 U.S.C. 3501 et seq. An Information Request document has     
  been prepared by EPA (ICR No. 1694) and a copy may be obtained from Sandy     
  Farmer, Information Policy Branch, EPA/OPPE/ORME, 401 M Street SW,            
  Washington, DC 20460 (Mail Code 2136) or by calling (202) 260-2740. These     
  requirements are not effective until OMB approves them and a technical        
  amendment to that effect is published in the Federal Register.                
    This collection of information has an estimated reporting burden averaging  
  1.4 hours per response and an estimated annual recordkeeping burden averaging 
  67 hours per respondent. However, the hours spent annually on information     
  collection activities by a given manufacturer depends upon manufacturer-      
  specific variables, such as the number of engine families, production         
  changes, emissions defects, and so on. This estimate includes time for        
  reviewing instructions, searching existing data sources, gathering and        
  maintaining the data needed, and completing and reviewing the collection of   
  information.                                                                  
    Send comments regarding the burden estimate or any other aspect of this     
  collection of information, including suggestions for reducing this burden to  
  Chief, Information Policy Branch; EPA/OPPE/ORME; 401 M Street SW, (Mail Code  
  2136); Washington, DC 20460; and to the Office of Information and Regulatory  
  Affairs, Office of Management and Budget, Washington, DC 20503, marked        
  "Attention: EPA Desk Officer".                                                
    All other information collection requirements in this rule have been        
  approved by the Office of Management and Budget under the Paperwork Reduction 
  Act, 44 U.S.C. 3501 et seq. and have been assigned control number 2060-0104.  
                                                                                
  VIII. Consultation With DOE and DOT                                           
                                                                                
    As per section 250(d) of the Clean Air Act, this rulemaking has coordinated 
  with the Department of Energy and the Department of Transportation. Also,     
  pursuant to section 247(e) of the Act that states " * * * The Secretary of    
  Transportation shall, if necessary, promulgate rules under applicable motor   
  vehicle laws regarding the safety of vehicles converted from existing and new 
  vehicles to clean-fuel vehicles," this rulemaking has been coordinated with   
  the Department of Transportation regarding the safety of vehicles converted   
  to CFVs. Interagency review documents are contained in section II-F and IV-H  
  of this rulemaking's docket.                                                  
                                                                                
  IX. Judicial Review                                                           
                                                                                
    Under section 307(b)(1) of the Clean Air Act, EPA hereby finds that these   
  regulations are of national applicability. Accordingly, judicial review of    
  this action is available only by filing a petition for review of the United   
  States Court of Appeals for the District Of Columbia Circuit within 60 days   
  of publication. Under section 307(b)(2) of the Act, the requirements which    
  are the subject of today's notice may not be challenged later in the judicial 
  proceedings brought by EPA to enforce these requirements.                     
                                                                                
  List of Subjects                                                              
                                                                                
  40 CFR Part 9                                                                 
                                                                                
    Environmental protection, Reporting and recordkeeping requirements.         
                                                                                
  40 CFR Part 86                                                                
                                                                                
    Environmental protection, Administrative practice and procedure,            
  Confidential business information, Incorporation by reference, Labeling,      
  Motor vehicle pollution, Reporting and recordkeeping requirements.            
                                                                                
  40 CFR Part 88                                                                
                                                                                
    Environmental protection, Incorporation by reference, Motor vehicle         
  pollution, Reporting and Recordkeeping requirements.                          
                                                                                
    Dated: June 14, 1994.                                                       
                                                                                
  Carol M. Browner,                                                             
                                                                                
  Administrator.                                                                
                                                                                
    For reasons set forth in the preamble, parts 9, 86 and 88 of title 40 of    
  the Code of Federal Regulations are amended as follows:                       
                                                                                
  PART 9--[AMENDED]                                                             
                                                                                
    1. The authority citation for part 9 continues to read as follows:          
                                                                                
    Authority: 7 U.S.C. 135 et. seq., 136-136y; 15 U.S.C. 2001, 2003, 2005,     
  2006, 2601-2671; 21 U.S.C. 331j, 346a, 348; 31 U.S.C. 9701; 33 U.S.C. 1251    
  et. seq., 1311, 1313d, 1314, 1321, 1326, 1330, 1334, 1345(d) and (e), 1361;   
  E.O. 11735, 38 FR 21243, 3 CFR, 1971-1975 Comp. p. 973; 42 U.S.C. 241, 242b,  
  243, 246, 300f, 300g, 300g-1, 300g-2, 300g-3, 300g-4, 300g-5, 300g-6, 300j-1, 
  300j-2, 300j-3, 300j-4, 300j-9, 1857 et. seq., 6901-6992k, 7401-7671q, 7542,  
  9601-9657, 11023, 11048.                                                      
                                                                                
    2. Section 9.1 is amended in the table by adding in numerical order new     
  entries under the center heading "Control of Air Pollution from New and In-   
  Use Motor Vehicles and New and In-Use Motor Vehicle Engines: Certification    
  and Test Procedures" and by adding a new center heading, "Clean-Fuel          
  Vehicles", and new entries under it to read as follows:                       
                                                                                
  Sec. 9.1   OMB approvals under the Paperwork Reduction Act.                   
                                                                                
  * * * * *                                                                     
                                                                                
                                                                   OMB control  
                         40 CFR citations                              No.      
                                                                                
                                    * * * * *                                   
                                                                                
  Control of Air Pollution from New and In-Use Motor Vehicles and New and In-   
   Use Motor Vehicle Engines: Certification and Test Procedures                 
                                                                                
                                    * * * * *                                   
  Sec. 86.111-94                                                  2060-0104     
                                                                                
                                    * * * * *                                   
  Sec. 86.1311-94                                                 2060-0104     
                                                                                
                                    * * * * *                                   
  Clean-Fuel Vehicles                                                           
                                                                                
  Sec. 88.104-94 (a), (c), (e), (f), (g), (h), (i), (j), (k)      2060-0104     
  Sec. 88.105-94                                                  2060-0104     
  Sec. 88.305-94                                                  2060-0104     
  Sec. 88.306-94(a), (b) introductory text                        2060-0104     
                                    * * * * *                                   
                                                                                
  PART 86--CONTROL OF AIR POLLUTION FROM NEW AND IN-USE MOTOR VEHICLES AND NEW  
  AND IN-USE MOTOR VEHICLE ENGINES: CERTIFICATION AND TEST PROCEDURES           
                                                                                
    3. The authority citation for part 86 continues to read as follows:         
                                                                                
    Authority: Secs. 202, 203, 205, 206, 207, 208, 215, 216, 217, and 301(a),   
  Clean Air Act as amended (42 U.S.C. 7521, 7522, 7524, 7525, 7541, 7542, 7549, 
  7550, 7552, and 7601(a)).                                                     
                                                                                
    3a. Section 86.1 is amended by adding a new entry to the end of the table   
  in paragraph (b)(2) to read as follows:                                       
                                                                                
  Sec. 86.1   Reference materials.                                              
                                                                                
  * * * * *                                                                     
                                                                                
    (b) * * *                                                                   
    (2) * * *                                                                   
                                                                                
                                                             40 CFR part 86     
                  Document No. and name                        reference        
                                                                                
                                    * * * * *                                   
  SAE Recommended Practice J1151, December 1991,                                
   Methane Measurement Using Gas Chromatography, 1994                           
   SAE Handbook--SAE International Cooperative                                  
   Engineering Program, Volume 1: Materials, Fuels,                             
   Emissions, and Noise; Section 13 and page 170                                
   (13.170)                                              86.111-94; 86.1311-94. 
                                                                                
    4. Section 86.085-37 of subpart A is amended by revising paragraph (b)(1)   
  introductory text to read as follows:                                         
                                                                                
  Sec. 86.085-37   Production vehicles and engines.                             
                                                                                
  * * * * *                                                                     
                                                                                
    (b)(1) Any manufacturer of light-duty vehicles or light-duty trucks         
  obtaining certification under this part shall notify the Administrator, on a  
  yearly basis, of the number of vehicles domestically produced for sale in the 
  United States and the number of vehicles produced and imported for sale in    
  the United States during the preceding year. Such information shall also      
  include the number of vehicles produced for sale pursuant to 40 CFR 88.204-   
  94(b). A manufacturer may elect to provide this information every 60 days     
  instead of yearly by combining it with the notification required under Sec.   
  86.079-36. The notification must be submitted 30 days after the close of the  
  reporting period. The vehicle production information required shall be        
  submitted as follows:                                                         
                                                                                
  * * * * *                                                                     
                                                                                
    5. Section 86.094-15 of subpart A is amended by revising paragraph (a)(1)   
  to read as follows:                                                           
                                                                                
  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.                                                        
                                                                                
  * * * * *                                                                     
                                                                                
    6. Section 86.094-24 of subpart A is amended by adding a new paragraph      
  (a)(3)(iii) and revising paragraph (a)(4) introductory text to read as        
  follows:                                                                      
                                                                                
  Sec. 86.094-24   Test vehicles and engines.                                   
                                                                                
    (a) * * *                                                                   
                                                                                
    (3) * * *                                                                   
                                                                                
    (iii) Engines identical in all of the respects listed in paragraphs (a)(2)  
  and (a)(3)(i) of this section may be further divided into different engine    
  families if some of the engines are expected to be sold as clean-fuel         
  vehicles under 40 CFR Part 88, and if the manufacturer chooses to certify the 
  engines to both the clean-fuel vehicle standards of 40 CFR part 88 and the    
  general standards of this part 86. One engine family shall include engines    
  that are intended for general use. For this engine family, only the           
  provisions of this part 86 shall apply. The second engine family shall        
  include all engines that are intended to be used in clean-fuel vehicles. For  
  this engine family, the provisions of both this part 86 and 40 CFR Part 88    
  shall apply. The manufacturer may submit one set of data to certify both      
  engine families.                                                              
                                                                                
    (4) Where engines are of a type which cannot be divided into engine         
  families based upon the criteria listed in paragraphs (a)(2) and (a)(3) of    
  this section, the Administrator will establish families for those engines     
  based upon those features most related to their emission characteristics.     
  Engines that are eligible to be included in the same engine family based on   
  the criteria in paragraphs (a)(2) and (a)(3)(i) of this section may be        
  further divided into different engine families if the manufacturer determines 
  that they may be expected to have different emission characteristics, or if   
  the manufacturer chooses to certify the engines to both the clean-fuel        
  vehicle standards of 40 CFR Part 88 and the general standards of this part 86 
  as described in paragraph (a)(3)(iii) of this section. The determination of   
  the emission characteristics will be based upon a consideration of the        
  following features of each engine:                                            
                                                                                
  * * * * *                                                                     
                                                                                
    7. Section 86.111-94 of subpart B is amended by adding a new paragraph      
  (b)(3)(vii) to read as follows:                                               
                                                                                
  Sec. 86.111-94   Exhaust gas analytical system.                               
                                                                                
  * * * * *                                                                     
                                                                                
    (b) * * *                                                                   
                                                                                
    (3) * * *                                                                   
                                                                                
    (vii) Using a methane analyzer consisting of a gas chromatograph combined   
  with a FID, the measurement of methane shall be done in accordance with the   
  Society of Automotive Engineers, Inc. (SAE) Recommended Practice J1151,       
  "Methane Measurement Using Gas Chromatography," December 1991, 1994 SAE       
  Handbook--SAE International Cooperative Engineering Program, Volume 1:        
  Materials, Fuels, Emissions, and Noise; Section 13 and page 170 (13.170),     
  which is incorporated by reference.                                           
                                                                                
    (A) This incorporation by reference was approved by the Director of the     
  Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.        
                                                                                
    (B) Copies may be inspected at U.S. EPA, OAR, 401 M Street, SW.,            
  Washington, DC 20460, or at the Office of the Federal Register, 800 North     
  Capitol Street, NW., suite 700, Washington, DC. Copies of this material may   
  be obtained from Society of Automotive Engineers International, 400           
  Commonwealth Drive, Warrendale, PA 15096-001.                                 
                                                                                
  * * * * *                                                                     
                                                                                
    8. Section 86.1311-94 of subpart N is amended by adding a new paragraph     
  (b)(2)(iii) preceding figure N94-1 to read as follows:                        
                                                                                
  Sec. 86.1311-94   Exhaust gas analytical system; CVS bag sample.              
                                                                                
  * * * * *                                                                     
                                                                                
    (b) * * *                                                                   
                                                                                
    (2) * * *                                                                   
                                                                                
    (iii) Using a methane analyzer consisting of a gas chromatograph combined   
  with a FID, the measurement of methane shall be done in accordance with SAE   
  Recommended Practice J1151, "Methane Measurement Using Gas Chromatography".   
  (Incorporated by reference pursuant to Sec. 86.1(b)(2)).                      
                                                                                
  * * * * *                                                                     
                                                                                
  PART 88--CLEAN-FUEL VEHICLES                                                  
                                                                                
    9. The authority citation for part 88 continues to read as follows:         
                                                                                
    Authority: 42 U.S.C. 7410, 7418, 7581, 7582, 7583, 7584, 7586, 7588, 7589,  
  and 7601(a).                                                                  
                                                                                
    10. Sections 88.101-94 and 88.102-94 in subpart A are redesignated as Secs. 
  88.102-94 and 88.103-94, respectively, and a new Sec. 88.101-94 is added to   
  read as follows:                                                              
                                                                                
  Sec. 88.101-94   General applicability.                                       
                                                                                
    The clean-fuel vehicle standards and provisions of this subpart are         
  applicable to vehicles used in subpart B of this part (the Clean Fuel Fleet   
  Program) and subpart C of this part (the California Pilot Test Program).      
    1. Newly designated Sec. 88.102-94 of subpart A is amended by revising the  
  the introductory text and adding the following definitions in alphabetical    
  order to read as follows:                                                     
                                                                                
  Sec. 88.102-94   Definitions.                                                 
                                                                                
    Any terms defined in 40 CFR part 86 and not defined in this part shall have 
  the meaning given them in 40 CFR part 86, subpart A.                          
    Adjusted Loaded Vehicle Weight is defined as the numerical average of the   
  vehicle curb weight and the GVWR.                                             
    Dual Fuel Vehicle (or Engine) means any motor vehicle (or motor vehicle     
  engine) engineered and designed to be operated on two different fuels, but    
  not on a mixture of the fuels.                                                
    Flexible Fuel Vehicle (or Engine) means any motor vehicle (or motor vehicle 
  engine) engineered and designed to be operated on any mixture of two or more  
  different fuels.                                                              
                                                                                
  * * * * *                                                                     
                                                                                
    Non-methane Hydrocarbon Equivalent means the sum of the carbon mass         
  emissions of non-oxygenated non-methane hydrocarbons plus the carbon mass     
  emissions of alcohols, aldehydes, or other organic compounds which are        
  separately measured in accordance with the applicable test procedures of 40   
  CFR part 86, expressed as gasoline-fueled vehicle non-methane hydrocarbons.   
  In the case of exhaust emissions, the hydrogen-to-carbon ratio of the         
  equivalent hydrocarbon is 1.85:1. In the case of diurnal and hot soak         
  emissions, the hydrogen-to-carbon ratios of the equivalent hydrocarbons are   
  2.33:1 and 2.2:1 respectively.                                                
                                                                                
  * * * * *                                                                     
                                                                                
    12. Newly designated Sec. 88.103-94 of subpart A is amended by adding the   
  following abbreviations in alphabetical order to read as follows:             
                                                                                
  Sec. 88.103-94   Abbreviations.                                               
                                                                                
  * * * * *                                                                     
                                                                                
  ALVW--Adjusted Loaded Vehicle Weight .                                        
                                                                                
  * * * * *                                                                     
                                                                                
  HC--Hydrocarbon.                                                              
                                                                                
  * * * * *                                                                     
                                                                                
  HDV--Heavy-Duty Vehicle.                                                      
  LDT--Light-Duty Truck.                                                        
  LDV--Light-Duty Vehicle.                                                      
  NMHC--Non-Methane Hydrocarbon.                                                
  NMHCE--Non-Methane Hydrocarbon Equivalent.                                    
                                                                                
  * * * * *                                                                     
                                                                                
    13. A new Sec. 88.104-94 is added to subpart A to read as follows:          
                                                                                
  Sec. 88.104-94   Clean-fuel vehicle tailpipe emission standards for light-    
  duty vehicles and light-duty trucks.                                          
                                                                                
    (a) A light-duty vehicle or light-duty truck will be considered as a TLEV,  
  LEV, ULEV, or ZEV if it meets the applicable requirements of this section.    
    (b) Light-duty vehicles certified to the exhaust emission standards for     
  TLEVs, LEVs, and ULEVs in Tables A104-1 and A104-2 shall be considered as     
  meeting the requirements of this section for that particular vehicle emission 
  category for model years 1994-2000 for the California Pilot Program.          
    (c) Light-duty vehicles certified to the exhaust emission standards for     
  LEVs and ULEVs in Tables A104-1 and A104-2 shall be considered as meeting the 
  requirements of this section for that particular vehicle emission category    
  for model years 2001 and later for the California Pilot Program, and for      
  model years 1998 and later for the Clean Fuel Fleet Program.                  
    (d) Light light-duty trucks certified to the exhaust emission standards for 
  a specific weight category for TLEVs, LEVs, and ULEVs in Tables A104-3 and    
  A104-4 shall be considered as meeting the requirements of this section for    
  that particular vehicle emission category. For model years 1994-2000 for the  
  California Pilot Program.                                                     
    (e) Light Light-duty trucks certified to the exhaust emission standards for 
  a specific weight category for LEVs and ULEVs in Tables A104-3 and A104-4     
  shall be considered as meeting the requirements of this section for that      
  particular vehicle emission category. For model years 2001 and later for the  
  California Pilot Program, and for model years 1998 and later for the Clean    
  Fuel Fleet Program.                                                           
    (f) Heavy light-duty trucks certified to the exhaust emission standards for 
  a specific weight category of LEVs and ULEVs in Tables A104-5 and A104-6 for  
  model years 1998 and later shall be considered as meeting the requirements of 
  this section for that particular vehicle emission category.                   
    (g) A light-duty vehicle or light-duty truck shall be certified as a ZEV if 
  it is determined by engineering analysis that the vehicle satisfies the       
  following conditions:                                                         
    (1) The vehicle fuel system(s) must not contain either carbon or nitrogen   
  compounds (including air) which, when burned, form any of the pollutants      
  listed in Table A104-1 as exhaust emissions.                                  
    (2) All primary and auxiliary equipment and engines must have no emissions  
  of any of the pollutants listed in Table A104-1.                              
    (3) The vehicle fuel system(s) and any auxiliary engine(s) must have no     
  evaporative emissions in use.                                                 
    (4) Any auxiliary heater must not operate at ambient temperatures above 40  
  degrees Fahrenheit.                                                           
    (h) NMOG standards for flexible- and dual-fueled vehicles when operating on 
  clean alternative fuel--(1) Light-duty vehicles, and light light-duty trucks. 
  Flexible- and dual-fueled LDVs and light LDTs of 1996 model year and later    
  shall meet all standards in Table A104-7 for vehicles of the applicable model 
  year, loaded vehicle weight, and vehicle emission category.                   
    (2) Light-duty trucks above 6,000 lbs GVWR. Flexible- and dual-fueled LDTs  
  above 6,000 lbs. GVWR of 1998 model year and later shall meet all standards   
  in Table A104-8 for vehicles of the applicable test weight and vehicle        
  emission category.                                                            
    (i) NMOG standards for flexible- and dual-fueled vehicles when operating on 
  conventional fuel--(1) Light-duty vehicles, and light light-duty trucks.      
  Flexible- and dual-fueled LDVs and light LDTs of 1996 model year and later    
  shall meet all standards in Table A104-9 for vehicles of the applicable model 
  year, loaded vehicle weight, and vehicle emission category.                   
    (2) Light-duty trucks above 6,000 lbs GVWR. Flexible- and dual-fueled LDTs  
  of 1998 model year and later shall meet all standards in Table A104-10 for    
  vehicles of the applicable test weight and vehicle emission category.         
    (j) Other standards for flexible- and dual-fueled vehicles. When operating  
  on clean alternative fuel, flexible- and dual-fueled light-duty vehicles and  
  light light-duty trucks must also meet the appropriate standards for carbon   
  monoxide, oxides of nitrogen, formaldehyde, and particulate matter as         
  designated in paragraphs (a) through (f) of this section as well as all other 
  applicable standards and requirements. When operating on conventional fuel,   
  flexible- and dual-fueled vehicles must also meet all other applicable        
  standards and requirements in 40 CFR part 86.                                 
    (k) Motor vehicles subject to standards and requirements of this section    
  shall also comply with all applicable standards and requirements of 40 CFR    
  part 86, except that any exhaust emission standards in 40 CFR part 86         
  pertaining to pollutants for which standards are established in this section  
  shall not apply. For converted vehicles, the applicable standards and         
  requirements of 40 CFR part 86 and this part 88 shall apply based on the      
  model year in which the conversion is performed, regardless of the model year 
  in which the base vehicle was originally manufactured prior to conversion.    
    (1) Gaseous-fueled, diesel-fueled, and electric clean-fuel vehicles are     
  waived from cold CO test requirements of subpart C of this part if compliance 
  is demonstrated by engineering analysis or test data.                         
    (2) The standards in this section shall be administered and enforced in     
  accordance with the California Regulatory Requirements Applicable to the      
  Clean Fuel Fleet and California Pilot Programs, April 1, 1994, which are      
  incorporated by reference.                                                    
    (i) This incorporation by reference was approved by the Director of the     
  Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.        
    (ii) Copies may be inspected at U.S. EPA, OAR, 401 M Street, Southwest,     
  Washington, DC 20460, or at the Office of the Federal Register, 800 North     
  Capitol Street, NW., suite 700, Washington, DC. Copies of these materials may 
  be obtained from Barclay's Law Publishers, 400 Oyster Point Boulevard, P.O.   
  Box 3066, South San Francisco, CA 94080, phone (415) 244-6611.                
    (l) The standards set forth in this section other than those for NMOG       
  emissions refer to the exhaust emitted while the vehicle is being tested in   
  accordance with the applicable test procedures set forth in 40 CFR part 86,   
  subpart N. NMOG emissions are to be measured in accordance with the           
  California Regulatory Requirements Applicable to the Clean Fuel Fleet and     
  California Pilot Program, April 1, 1994, incorporated by reference pursuant   
  to paragraph (k)(2) of this section.                                          
                                                                                
                Table A104-1.--Intermediate Useful Life Standards               
                (g/mi) for Light-Duty Vehicles for HCs, CO, NOX,                
                                  HCHO, and PM                                  
                                                                                
                 Vehicle                                                        
                 emission                                       PM              
                 category    NMOG      CO      NOX      HCHO    1               
                                                                                
                 TLEV         0.125      3.4     0.4     0.015                  
                 LEV       /2/ .075  /2/ 3.4      .2  /2/ .015                  
                 ULEV          .040      1.7  /2/ .2      .008                  
                                                                                
               /1/ Applies to diesel vehicles only.                             
                                                                                
               /2/ Applies to ILEVs.                                            
                                                                                
              Table A104-2.--Full Useful Life Standards (g/mi) for              
               Light-Duty Vehicles for HCs, CO, NOX, HCHO, and PM               
                                                                                
              Vehicle                                                           
              emission                                                          
              category    NMOG       CO      NOX      HCHO     PM 1             
                                                                                
              TLEV          0.156      4.2     0.6     0.018     0.08           
              LEV       /2/ 0.090  /2/ 4.2      .3  /2/ .018  /2/ .08           
              ULEV           .055      2.1  /2/ .3      .011      .04           
                                                                                
            /1/ Applies to diesel vehicles only.                                
                                                                                
            /2/ Applies to ILEVs.                                               
                                                                                
              Table A104-3.--Intermediate Useful Life Standards (g/             
                mi) for Light Light-Duty Trucks for HCs, CO, NOX,               
                                   HCHO, and PM                                 
                                                                                
                      Vehicle                                                   
                      emission                                       PM         
           LVW (lbs)  category    NMOG      CO      NOX      HCHO    1          
                                                                                
           0-3750     TLEV          .125      3.4      .4      .015             
                      LEV       /2/ .075  /2/ 3.4      .2  /2/ .015             
                      ULEV          .040      1.7  /2/ .2      .008             
           3751-5750  TLEV         0.160      4.4      .7      .018             
                      LEV       /2/ .100  /2/ 4.4      .4  /2/ .018             
                      ULEV          .050      2.2  /2/ .4      .009             
                                                                                
           /1/ Applies to diesel vehicles only.                                 
                                                                                
           /2/ Applies to ILEVs.                                                
                                                                                
              Table A104-4.--Full Useful Life Standards (g/mi) for              
             Light Light-Duty Trucks for HCs, CO, NOX, HCHO, and PM             
                                                                                
                    Vehicle                                                     
                    emission                                                    
         LVW (lbs)  category    NMOG       CO      NOX    HCHO    PM/1/         
                                                                                
         0-3750     TLEV          0.156      4.2    0.6    0.018    0.08        
                    LEV       /2/ 0.090  /2/ 4.2    0.3  /2/.018  /2/.08        
                    ULEV           .055      2.1  /2/.3     .011     .04        
         3751-5750  TLEV           .200      5.5     .9     .023     .08        
                    LEV         /2/.130   /2/5.5     .5  /2/.023  /2/.08        
                    ULEV           .070      2.8  /2/.5     .013     .04        
                                                                                
         /1/ Applies to diesel vehicles only.                                   
                                                                                
         /2/ Applies to ILEVs.                                                  
                                                                                
            Table A104-5.--Intermediate Useful Life Standards (g/mi)            
             for Heavy Light-Duty Trucks for HCs, CO, NOX, HCHO, and            
                                       PM                                       
                                                                                
                   Vehicle                                                      
          ALVW     emission                                                     
          (lbs)    category    NMOG       CO     NOX/2/    HCHO     PM/1/       
                                                                                
        0-3750     LEV       /3/ 0.125  /3/ 3.4     0.4  /3/ 0.015              
                   ULEV           .075      1.7   /3/.2       .008              
        3751-5750  LEV         /3/.160  /3/ 4.4      .7    /3/.018              
                   ULEV           .100      2.2   /3/.4       .009              
        5751-      LEV         /3/.195  /3/ 5.0     1.1    /3/.022              
                   ULEV           .117      2.5   /3/.6       .011              
                                                                                
        /1/ Applies to diesel vehicles only.                                    
                                                                                
        /2/ Does not apply to diesel vehicles.                                  
                                                                                
        /3/ Applies to ILEVs.                                                   
                                                                                
           Table A104-6.--Full Useful Life Standards (g/mi) for Heavy           
                Light-Duty Trucks for HCs, CO, NOX, HCHO, and PM                
                                                                                
                  Vehicle                                                       
         ALVW     emission                                                      
         (lbs)    category    NMOG       CO      NOX     HCHO      PM/1/        
                                                                                
       0-3750     LEV       /2/ 0.180  /2/ 5.0    0.6  /2/ 0.022  /2/ 0.08      
                  ULEV           .107      2.5  /2/.3       .012       .04      
       3751-5750  LEV         /2/.230  /2/ 6.4    1.0    /2/.027    /2/.10      
                  ULEV           .143      3.2  /2/.5       .013       .05      
       5751-      LEV         /2/.280  /2/ 7.3    1.5    /2/.032    /2/.12      
                  ULEV           .167      3.7  /2/.8       .016       .06      
                                                                                
       /1/ Applies to diesel vehicles only.                                     
                                                                                
       /2/ Applies to ILEVs.                                                    
                                                                                
                Table A104-7.--NMOG Standards (g/mi) for Flexible-              
                 and Dual-Fueled Vehicles When Operating on Clean               
                 Alternative Fuel for Light Light-Duty Trucks and               
                               Light-Duty Vehicles                              
                                                                                
                                                   50,000   100,000             
                                                    mile      mile              
                                                    NMOG      NMOG              
                         Vehicle type             standard  standard            
                                                                                
              MY 1996 and later:                                                
                LDTs (0-3,750 lbs. LVW) and LDVs     0.125     0.156            
                LDTs (3,751-5,750 lbs. LVW)           .160      .200            
              Beginning MY 2001:                                                
                LDTs (0-3,750 lbs. LVW) and LDVs      .075      .090            
                LDTs (3,751-5,750 lbs. LVW)           .100      .130            
                                                                                
                     Table A104-8.--NMOG Standards (g/mi) for                   
                     Flexible- and Dual-Fueled Vehicles When                    
                  Operating on Clean Alternative Fuel for Heavy                 
                                Light-Duty Trucks                               
                                                                                
                                                 50,000   120,000               
                                                  mile      mile                
                                                  NMOG      NMOG                
                         Vehicle type           standard  standard              
                                                                                
                Beginning MY 1998:                                              
                  LDTs (0-3,750 lbs. ALVW)         0.125     0.180              
                  LDTs (3,751-5,750 lbs. ALVW)      .160      .230              
                  LDTs (5,751-8,500 lbs. ALVW)      .195      .280              
                                                                                
                Table A104-9.--NMOG Standards (g/mi) for Flexible-              
                    and Dual-Fueled Vehicles When Operating on                  
                Conventional Fuel for Light Light-Duty Trucks and               
                               Light-Duty Vehicles                              
                                                                                
                                                   50,000   100,000             
                                                    mile      mile              
                                                    NMOG      NMOG              
                         Vehicle type             standard  standard            
                                                                                
              Beginning MY 1996:                                                
                LDTs (0-3,750 lbs. LVW) and LDVs      0.25      0.31            
                LDTs (3,751-5,750 lbs. LVW)            .32       .40            
              Beginning MY 2001:                                                
                LDTs (0-3,750 lbs. LVW) and LDVs      .125      .156            
                LDTs (3,751-5,750 lbs. LVW)           .160      .200            
                                                                                
                    Table A104-10.--NMOG Standards (g/mi) for                   
                     Flexible- and Dual-Fueled Vehicles When                    
                 Operating on Conventional Fuel for Light Light-                
                                   Duty Trucks                                  
                                                                                
                                                 50,000   120,000               
                                                  mile      mile                
                                                  NMOG      NMOG                
                         Vehicle type           standard  standard              
                                                                                
                Beginning MY 1998:                                              
                  LDTs (0-3,750 lbs. ALVW)          0.25      0.36              
                  LDTs (3,751-5,750 lbs. ALVW)       .32       .46              
                  LDTs (5,751-8,500 lbs. ALVW)       .39       .56              
                                                                                
    4. A new Sec. 88.105-94 is added to subpart A to read as follows:           
                                                                                
  Sec. 88.105-94   Clean-fuel fleet emission standards for heavy-duty engines.  
                                                                                
    (a) Exhaust emissions from engines used in heavy-duty low emission vehicles 
  shall meet one of the following standards:                                    
    (1) Combined emissions of oxides of nitrogen and nonmethane hydrocarbons    
  (or nonmethane hydrocarbon equivalent) shall not exceed 3.8 grams per brake   
  horsepower-hour.                                                              
    (2) Combined emissions of oxides of nitrogen and nonmethane hydrocarbons    
  (or nonmethane hydrocarbon equivalent) shall not exceed 3.5 grams per brake   
  horsepower-hour when tested (certified) on fuel meeting the specifications of 
  California certification fuel.                                                
    (b) Exhaust emissions from engines used in heavy-duty low emission vehicles 
  shall meet conventional vehicle standards set forth in Part 86 for total      
  hydrocarbon, carbon monoxide, particulate, and organic material hydrocarbon   
  equivalent.                                                                   
    (c) Exhaust emissions from engines used in ultra-low emission heavy-duty    
  vehicles shall meet each of the following standards:                          
    (1) The combined emissions of oxides of nitrogen and nonmethane             
  hydrocarbons (or nonmethane hydrocarbon equivalent) shall not exceed 2.5      
  grams per brake horsepower-hour.                                              
    (2) Carbon monoxide emissions shall not exceed 7.2 grams per brake          
  horsepower-hour.                                                              
    (3) Particulate emissions shall not exceed 0.05 grams per brake horsepower- 
  hour.                                                                         
    (4) Formaldehyde emissions shall not exceed 0.025 grams per brake           
  horsepower-hour.                                                              
    (d) Exhaust emissions from engines used in inherently-low emission heavy-   
  duty vehicles shall meet each of the following standards:                     
    (1) The combined emissions of oxides of nitrogen and nonmethane             
  hydrocarbons (or nonmethane hydrocarbon equivalent) shall not exceed 2.5      
  grams per brake horsepower-hour.                                              
    (2) Carbon monoxide emissions shall not exceed 14.4 grams per brake         
  horsepower-hour.                                                              
    (3) Particulate emissions shall not exceed 0.10 grams per brake horsepower- 
  hour.                                                                         
    (4) Formaldehyde emissions shall not exceed 0.05 grams per brake            
  horsepower-hour.                                                              
    (e) The standards set forth in paragraphs (a), (b), (c), and (d) of this    
  section refer to the exhaust emitted while the vehicle is being tested in     
  accordance with the applicable test procedures set forth in 40 CFR part 86,   
  subpart N.                                                                    
    (f)(1) A heavy-duty zero-emission vehicle (ZEV) has a standard of zero      
  emissions for nonmethane hydrocarbons, oxides of nitrogen, carbon monoxide,   
  formaldehyde, and particulates.                                               
    (2) A heavy-duty vehicle shall be certified as a ZEV if it is determined by 
  engineering analysis that the vehicle satisfies the following conditions:     
    (i) The vehicle fuel system(s) must not contain either carbon or nitrogen   
  compounds (including air) which, when burned, form nonmethane hydrocarbons,   
  oxides of nitrogen, carbon monoxide, formaldehyde, or particulates as exhaust 
  emissions.                                                                    
    (ii) All primary and auxiliary equipment and engines must have no emissions 
  of nonmethane hydrocarbons, oxides of nitrogen, carbon monoxide,              
  formaldehyde, and particulates.                                               
    (iii) The vehicle fuel system(s) and any auxiliary engine(s) must have no   
  evaporative emissions.                                                        
    (iv) Any auxiliary heater must not operate at ambient temperatures above 40 
  degrees Fahrenheit.                                                           
    (g) All heavy-duty engines used in low emission, ultra-low emission, or     
  zero emission vehicles shall also comply with all applicable standards and    
  requirements of 40 CFR part 86, except that any exhaust emission standards in 
  40 CFR part 86 pertaining to pollutants for which standards are established   
  in this section shall not apply.                                              
    15. Section 88.201-94 of subpart B is amended by revising paragraph (a) to  
  read as follows:                                                              
                                                                                
  Sec. 88.201-94   Scope.                                                       
                                                                                
  * * * * *                                                                     
                                                                                
    (a) State Implementation Plan revisions for the State of California and     
  other states pursuant to compliance with section 249 of the Clean Air Act, as 
  amended in 1990.                                                              
                                                                                
  * * * * *                                                                     
                                                                                
    16. A new Sec. 88.204-94 is added to subpart B to read as follows:          
                                                                                
  Sec. 88.204-94   Sales requirements for the California Pilot Test Program.    
                                                                                
    (a) The total annual required minimum sales volume of new clean fuel        
  vehicles in California for this program shall correspond to Table B204.       
    (b) (1) When manufacturers of vehicles subject to the regulations of this   
  section file a report pursuant to 40 CFR 86.085-37(b), such report shall      
  include the following information: the number of light-duty vehicles and      
  light-duty trucks sold only in California, and the number of clean-fuel       
  vehicles sold for the Pilot program beginning with model year 1996.           
    (2) For model years 1996 and 1997, manufacturers may exclude heavy light-   
  duty trucks from the reporting required by this section.                      
    (c) (1) Except as provided in paragraph (d) of this section, each vehicle   
  manufacturer must sell clean-fuel vehicles in California in an amount equal   
  to the required annual sales volume calculated in paragraph (c)(2) of this    
  section.                                                                      
    (2) The required annual clean fuel vehicle sales volume for a given         
  manufacturer is expressed in the following equation rounded to the nearest    
  whole number.                                                                 
                                                                                
                                                                                
                              RMS = (MS/TS) x TCPPS                             
                                                                                
  Where:                                                                        
                                                                                
  RMS=a manufacturer's required sales in a given model year.                    
  MS=a manufacturer's total LDV and light LDT sales in California two model     
      years earlier than year in question (for MY 1996 and 1997 RMS             
      calculations).                                                            
    =a manufacturer's total LDV and LDT sales in California two model years     
  earlier than year in question (for MY 1998 and later RMS calculations).       
  TS=total LDV and light LDT sales in California of all manufacturers two model 
      years earlier than the year in question (for MY 1996 and 1997 RMS         
      calculations). Sales of manufacturers which meet the criteria of (d) of   
      this paragraph will not be included.                                      
    =total LDV and LDT sales in California of all manufacturers two model years 
  earlier than the year in question (for MY 1998 and later RMS calculations).   
  Sales of manufacturers which meet the criteria of (d) of this paragraph will  
  not be included.                                                              
  TCPPS=Pilot program annual CFV sales requirement (either 150,000 or 300,000)  
      for the model year in question.                                           
                                                                                
    (i) A manufacturer's share of required annual sales for model years 1996    
  and 1997 will be based on LDV and light LDT sales only. Once the heavy LDT    
  standards are effective beginning with model year 1998, a manufacturer's      
  required sales share will be based on all LDV and LDT sales.                  
    (ii) A manufacturer certifying for the first time in California shall       
  calculate annual required sales share based on projected California sales for 
  the model year in question. In the second year, the manufacturer shall use    
  actual sales from the previous year. In the third year and subsequent years,  
  the manufacturer will use sales from two model years prior to the year in     
  question.                                                                     
    (d) (1) Small volume manufacturer is defined in the Pilot program as one    
  whose average annual LDV and LDT sales in California are less than or equal   
  to 3,000 units during a consecutive three-year period beginning no earlier    
  than model year 1993.                                                         
    (i) A manufacturer with less than three consecutive years of sales in       
  California shall use a single year of sales or, if available, the average of  
  two years of sales in California to determine whether they fall at or below   
  the threshold of 3,000 units.                                                 
    (ii) A manufacturer certifying for the first time in California shall be    
  considered a small volume manufacturer if their projected California sales    
  level is at or below 3,000 units for a given year. Once the manufacturer has  
  actual sales data for one year, this actual sales data shall be used to       
  determine whether the manufacturer qualifies as a small volume manufacturer.  
    (iii) A manufacturer which does not qualify as a small volume manufacturer  
  in model year 1996 but whose average annual LDV and LDT sales fall to or      
  below the 3,000 unit threshold between 1996 and 2001 shall be treated as a    
  small volume manufacturer and shall be subject to requirements for small      
  volume manufacturers as specified in paragraph (d)(2) of this section         
  beginning with the next model year.                                           
    (2) A manufacturer which qualifies as a small volume manufacturer prior to  
  model year 2001 is not required to comply with the sales requirements of this 
  section until model year 2001.                                                
                                                                                
                Table B204.--Pilot Program Vehicle Sales Schedule               
                                                                                
                                                                   Required     
                                                                    annual      
       Model years                  Vehicle types                   sales       
                                                                                
      1996 and 1997  LDTs (< 6000 GVWR and </=5750 LVW); and LDVs   150,000     
      1998           All Applicable Vehicle Types                   150,000     
      1999+          All Applicable Vehicle Types                   300,000     
                                                                                
    17. A new Sec. 88.206-94 is added to subpart B to read as follows.          
                                                                                
  Sec. 88.206-94   State Opt-in for the California Pilot Test Program.          
                                                                                
    (a) A state may opt into the Pilot program if it contains all or part of an 
  ozone nonattainment area classified as serious, severe, or extreme under      
  subpart D of Title I.                                                         
    (b) A state may opt into the program by submitting SIP revisions that meet  
  the requirements of this section.                                             
    (c) For a state that chooses to opt in, SIP provisions can not take effect  
  until one year after the state has provided notice to of such provisions to   
  motor vehicle manufacturers and fuel suppliers.                               
    (d) A state that chooses to opt into the program can not require a sales or 
  production mandate for CFVs or clean alternative fuels. States may not        
  subject fuel or vehicle suppliers to penalties or sanctions for failing to    
  produce or sell CFVs or clean alternative fuels.                              
    (e) (1) A state's SIP may include incentives for the sale or use in such    
  state of CFVs required in California by the Clean Fuel Fleet Program, and the 
  use of clean alternative fuels required to be made available in California by 
  the California Pilot Program.                                                 
    (2) Incentives may include:                                                 
    (i) A registration fee on non-CFVs of at least 1 percent of the total cost  
  of the vehicle. These fees shall be used to:                                  
    (A) Provide financial incentives to purchasers of CFVs and vehicle dealers  
  who sell high volumes or high percentages of CFVs.                            
    (B) Defray administrative costs of the incentive program.                   
    (ii) Exemptions for CFVs from high occupancy vehicle or trip reduction      
  requirements.                                                                 
    (iii) Preferences for CFVs in the use of existing parking places.           
    18. The tables to subpart B of part 88 are revised to read as follows:      
                                                                                
                         Tables to Subpart B of Part 88                         
                                                                                
                  Table B-1.--Credit Table for Phase I Vehicle                  
               Equivalents for Light-Duty Vehicles and Light-Duty               
                                     Trucks                                     
                                                                                
              Table B-1.1.--Credit Generation: Selling More Clean-              
                           Fuel Vehicles Than Required                          
                                                                                
                  [Phase I: Effective Through 2000 Model-Year]                  
                                                                                
                                     LDT                 LDT                    
                                   </=6000              >6000                   
                                     gvwr      LDT       gvwr     LDT           
                        LDV &       >3750     >6000     >3750    >6000          
           Vehicle    LDT</=6000     lvw       gvwr      alvw     gvwr          
          emission   gvwr</=3750   </=5750   </=3750   </=5750   >5750          
          category       lvw         lvw       alvw      alvw     alvw          
                                                                                
          TLEV               1.00      1.28     (/1/)     (/1/)   (/1/)         
          LEV                1.40      1.76      1.00      1.28    1.56         
          ULEV               1.68      2.16      1.40      1.76    2.18         
          ZEV                2.00      2.56      2.00      2.56    3.12         
                                                                                
             Table B-1.2.--Credit Generation: Selling More Stringent            
                               Clean Fuel Vehicles                              
                                                                                
                                  LDT                 LDT                       
                       LDV &    </=6000              >6000                      
                        LDT       gvwr      LDT       gvwr      LDT             
                      </=6000    >3750     >6000     >3750    </=6000           
            Vehicle     gvwr      lvw       gvwr      alvw      gvwr            
           emission   </=3750   </=5750   </=3750   </=5750    >5750            
           category     lvw       lvw       alvw      alvw      alvw            
                                                                                
           TLEV           0.00      0.00     (/1/)     (/1/)     (/1/)          
           LEV             .40       .48      0.00      0.00      0.00          
           ULEV            .68       .88       .40       .48       .62          
           ZEV            1.00      1.28      1.00      1.28      1.56          
                                                                                
              Table B-1.3.--Credit Needed in Lieu of Selling Clean-             
                                   Fuel Vehicle                                 
                                                                                
                                                         LDT                    
                       LDV &                            >6000                   
                        LDT                    LDT       gvwr     LDT           
                      </=6000   LDT </=6000   >6000     >3750    >6000          
            Vehicle     gvwr    gvwr >3750     gvwr      alvw     gvwr          
           emission   </=3750   lvw</=5750   </=3750   </=5750   >5750          
           category     lvw         lvw        alvw      alvw     alvw          
                                                                                
           TLEV           1.00         1.28     (/1/)     (/1/)   (/1/)         
           LEV                                   1.00      1.28    1.56         
                                                                                
           /1/ There is no TLEV category for this vehicle class.                
                                                                                
                 Table B-2.--Credit Table for Phase II: Vehicle                 
               Equivalents for Light-Duty Vehicles and Light-Duty               
                                     Trucks                                     
                                                                                
              Table B-2.1.--Credit Generation: Selling More Clean-              
                           Fuel Vehicles Than Required                          
                                                                                
              [Phase II: effective 2001 and subsequent model-years]             
                                                                                
                                   LDT                 LDT                      
                        LDV &    </=6000              >6000                     
                         LDT       gvwr      LDT       gvwr     LDT             
                       </=6000    >3750     >6000     >3750    >6000            
             Vehicle     gvwr      lvw       gvwr      alvw     gvwr            
            emission   </=3750   </=5750   </=3750   </=5750   >5750            
            category     lvw       lvw       alvw      alvw     alvw            
                                                                                
            LEV            1.00      1.26      0.71      0.91    1.11           
            ULEV           1.20      1.54      1.00      1.26    1.56           
            ZEV            1.43      1.83      1.43      1.83    2.23           
                                                                                
                  Table B-2.2.--Credit Generation: Selling More                 
                          Stringent Clean-Fuel Vehicles                         
                                                                                
                                   LDT                 LDT                      
                        LDV &    </=6000              >6000                     
                         LDT       gvwr      LDT       gvwr     LDT             
                       </=6000    >3750     >6000     >3750    >6000            
             Vehicle     gvwr      lvw       gvwr      alvw     gvwr            
            emission   </=3750   </=5750   </=3750   </=5750   >5750            
            category     lvw       lvw       alvw      alvw     alvw            
                                                                                
            LEV            0.00      0.00      0.00      0.00    0.00           
            ULEV            .20       .28       .29       .34     .45           
            ZEV             .43       .57       .71       .91    1.11           
                                                                                
            Table B-2.3.--Credit Needed in Lieu of Selling Clean-Fuel           
                                    Vehicles                                    
                                                                                
                                       LDT                 LDT                  
                            LDV &    </=6000              >6000                 
                             LDT       gvwr      LDT       gvwr     LDT         
                           </=6000    >3750     >6000     >3750    >6000        
                             gvwr      lvw       gvwr      alvw     gvwr        
             Vehicle       </=3750   </=5750   </=3750   </=5750   >5750        
        emissioncategory     lvw       lvw       alvw      alvw     alvw        
                                                                                
        LEV                    1.00      1.26      0.71      0.91    1.11       
                                                                                
    19. Section 88.302-94 of subpart C is amended by adding two new definitions 
  in alphabetical order and revising a third definition to read as follows:     
                                                                                
  Sec. 88.302-94   Definitions.                                                 
                                                                                
  * * * * *                                                                     
                                                                                
    Clean-fuel vehicle aftermarket conversion certifier means the business or   
  entity that obtains a certificate of conformity with the clean-fuel vehicle   
  standards and requirements for a vehicle/engine conversion configuration      
  pursuant to the requirements of 40 CFR part 86 and this part 88.              
                                                                                
  * * * * *                                                                     
                                                                                
    Conversion configuration means any combination of vehicle/engine conversion 
  hardware and a base vehicle of a specific engine family.                      
                                                                                
  * * * * *                                                                     
                                                                                
    Owned or operated, leased or otherwise controlled by such person means      
  either of the following:                                                      
    (1) Such person holds the beneficial title to such vehicle; or              
    (2) Such person uses the vehicle for transportation purposes pursuant to a  
  contract or similar arrangement, the term of such contract or similar         
  arrangement is for a period of 120 days or more, and such person has control  
  over the vehicle pursuant to the definition of control of this section.       
                                                                                
  * * * * *                                                                     
                                                                                
    20. A new Sec. 88.305-94 is added to subpart C to read as follows:          
                                                                                
  Sec. 88.305-94   Clean-fuel fleet vehicle labeling requirements for heavy-    
  duty vehicles.                                                                
                                                                                
    (a) All clean-fuel heavy-duty engines and vehicles used as LEVs, ULEVs, and 
  ZEVs that are also regulated under 40 CFR part 86 shall comply with the       
  labeling requirements of 40 CFR 86.095-35 (or later applicable sections), and 
  shall also include an unconditional statement on the label indicating that    
  the engine or vehicle is a LEV, ULEV, or ZEV, and meets all of the applicable 
  requirements of this part 88.                                                 
    (b) All heavy-duty clean-fuel fleet vehicles not regulated under 40 CFR     
  part 86 shall have a permanent legible label affixed to the engine or vehicle 
  in a readily visible location, which contains the following information:      
    (1) The label heading: vehicle emissions classification information (e.g.,  
  "This is a Low Emission Vehicle");                                            
    (2) Full corporate name and trademark of the manufacturer;                  
    (3) A statement that this engine or vehicle meets all applicable            
  requirements of the U.S. Environmental Protection Agency clean-fuel fleet     
  vehicle program, as described in this part 88, but not necessarily those      
  requirements found in 40 CFR part 86.                                         
    21. A new Sec. 88.306-94 is added to subpart C to read as follows:          
                                                                                
  Sec. 88.306-94   Requirements for a converted vehicle to qualify as a clean-  
  fuel fleet vehicle.                                                           
                                                                                
    (a) For purposes of meeting the requirements of section 246 of the Clean    
  Air Act or the SIP revisions, conversions of engines or vehicles which        
  satisfy the requirements of this section shall be treated as a purchase of a  
  clean-fuel vehicle under subpart C of this part.                              
    (b) The engine or vehicle must be converted using a conversion              
  configuration which has been certified according to the provisions of 40 CFR  
  part 86 using applicable emission standards and other provisions from part 88 
  for clean-fuel engines and vehicles. The following requirements will also     
  apply:                                                                        
    (1) If the installation of the certified conversion configuration is        
  performed by an entity other than aftermarket conversion certifier, the       
  aftermarket conversion certifier shall submit a list of such installers to    
  the Administrator. Additional installers must be added to this list and the   
  revised list submitted to the Administrator within 5 working days from the    
  time they are authorized to perform conversion installations by the clean-    
  fuel vehicle aftermarket conversion certifier.                                
    (2) If the installation of the certified conversion configuration is        
  performed by an entity other than the certificate holder, the certificate     
  holder shall provide instructions for installation of the aftermarket         
  conversion system to installers listed on the certificate, and ensure that    
  the systems are properly installed.                                           
    (3) For the purpose of determining whether certification under the Small-   
  Volume Manufacturers Certification Program pursuant to the requirements of 40 
  CFR 86.094-14 is permitted, the 10,000 sales volume limit in 40 CFR 86.094-   
  14(b)(1) shall apply to the aggregate total of all vehicles sold by a given   
  clean-fuel vehicle aftermarket conversion certifier at all of its             
  installation facilities without regard to the model year of the original      
  vehicles upon which the conversion configurations are based. All vehicle      
  sales will be included in calculating the clean-fuel vehicle aftermarket      
  conversion certifier's aggregate total, including vehicle conversions         
  performed under the requirements of this part 88, and all other vehicle       
  conversions. Vehicle conversions not covered by this part 88 will be counted  
  if they occur within the model year for which certification is sought.        
    (4) Clean-fuel vehicle aftermarket conversion certifiers that are subject   
  to the post-installation emissions testing requirements in paragraph (c) of   
  this section and who will satisfy these requirements by using the two speed   
  idle test procedure detailed in paragraph (c)(2)(ii) of this section must     
  conduct the following testing at the time of certification in order to        
  generate the required certification CO emissions reference values. The        
  certification CO emissions reference values generated must be submitted to    
  the Administrator at the time of application for certification.               
    (i) For dual and flexible fuel vehicles, certification reference values     
  must be generated for each certification test fuel required for exhaust       
  emissions testing pursuant to 40 CFR 86.113 or 40 CFR 86.1313.                
    (ii) For light-duty vehicles and light-duty trucks the test fuels used      
  during the emissions testing required by paragraph (b)(3) of this section     
  must comply with the fuel specifications for exhaust emissions testing found  
  in 40 CFR 86.113. For heavy-duty engines the test fuels used during the       
  emissions testing required by paragraph (b)(3) of this section must comply    
  with the fuel specifications for exhaust emissions testing found in 40 CFR    
  86.1313.                                                                      
    (iii) Single, consecutive idle mode and high-speed mode segments of the two 
  speed idle test must be conducted pursuant to the requirements of 40 CFR      
  85.2215 and as modified by the provisions of paragraph (c)(4)(ii)(D) of this  
  section and this paragraph to determine the required certification CO         
  emission reference values.                                                    
    (A) The certification CO emission reference value for the idle mode of the  
  test will be the simple average of all emissions measurements taken during an 
  idle mode of 90 seconds duration pursuant to the requirements in 40 CFR       
  85.2215(a).                                                                   
    (B) The certification CO emission reference value for the high-speed mode   
  of the test will be the simple average of all emissions measurements taken    
  during a high-speed mode of 180 seconds duration pursuant to the requirements 
  in 40 CFR 85.2215(a).                                                         
    (c) Except as provided in paragraph (c)(1) of this section, each converted  
  vehicle manufactured by a clean-fuel vehicle aftermarket conversion certifier 
  with aggregate sales of less than 10,000 converted vehicles within a given    
  calendar year must satisfy the post-installation emissions testing            
  requirements of paragraph (c)(2) of this section. If a vehicle fails to       
  satisfy the emissions testing requirements such vehicle may not be considered 
  a clean-fuel vehicle until such noncompliance is rectified and compliance is  
  demonstrated.                                                                 
    (1) A clean-fuel vehicle aftermarket conversion certifier with estimated    
  sales of 300 or fewer engines and vehicles in a calendar year and which sells 
  or converts vehicles outside of a non-attainment area (as classified under    
  subpart D of Title I) which has an inspection and maintenance program that    
  includes a test of carbon monoxide emissions may submit a request to the      
  Administrator for an exemption from the post-installation emission test       
  requirements of paragraph (c) of this section. If granted, such an exemption  
  would apply to converted vehicles that have the conversion installation       
  performed outside of a nonattainment area which has an inspection and         
  maintenance program that includes a test of carbon monoxide emissions.        
    (i) The request for exemption submitted to the Administrator must include   
  the following:                                                                
    (A) The estimated number of engines and vehicles that will be converted in  
  the calendar year.                                                            
    (B) Sufficient information to demonstrate that complying with the post-     
  installation emission test requirement represents a severe financial          
  hardship.                                                                     
    (C) A description of any emission related quality control procedures used.  
    (ii) Within 120 days of receipt of the application for exemption, the       
  Administrator will notify the applicant either that an exemption is granted   
  or that sufficient cause for an exemption has not been demonstrated and that  
  all of the clean-fuel vehicle aftermarket conversion certifier's vehicles are 
  subject to the post-installation test requirement of paragraph (c)(2) of this 
  section.                                                                      
    (iii) If the clean-fuel vehicle aftermarket conversion certifier granted an 
  exemption originally estimates that 300 or fewer conversions would be         
  performed in the calendar year, and then later revises the estimate to more   
  than 300 for the year, the certifier shall inform the Administrator of such   
  revision. A post-installation emissions test for each conversion performed    
  after the estimate is revised is required pursuant to the requirements of     
  paragraph (c)(2) of this section. The estimated number of conversions from    
  such a clean-fuel vehicle aftermarket conversion certifier must be greater    
  than 300 in the following calendar year.                                      
    (2) A clean-fuel vehicle aftermarket conversion certifier with aggregate    
  sales less than 10,000 converted vehicles within a given calendar year shall  
  conduct post-installation emissions testing using either of the following     
  test methods:                                                                 
    (i) The carbon monoxide (CO) emissions of the converted vehicle must be     
  determined in the manner in which CO emissions are determined according to    
  the inspection and maintenance requirements applicable in the area in which   
  the vehicle is converted or is expected to be operated.                       
    (A) For dual-fuel vehicles, a separate test is required for each fuel on    
  which the vehicle is capable of operating. For flexible fuel vehicles, a      
  single test is required on a fuel that falls within the range of fuel         
  mixtures for which the vehicle was designed. The test fuel(s) used must be    
  commercially available.                                                       
    (B) A converted vehicle shall be considered to meet the requirements of     
  this paragraph if the vehicle's measured exhaust CO concentration(s) is lower 
  than the cutpoint(s) used to determine CO pass/fail under the inspection and  
  maintenance program in the area in which the conversion is expected to be     
  operated.                                                                     
    (1) If CO pass/fail criteria are not available for a vehicle fuel type then 
  pass/fail criteria specific to gasoline use are to be used for vehicles of    
  that fuel type.                                                               
    (2) [Reserved].                                                             
    (ii) The carbon monoxide (CO) emissions of the converted vehicle must be    
  determined in the manner specified in the two speed idle test-EPA 91 found in 
  40 CFR 85.2215. All provisions in the two speed idle test must be observed    
  except as detailed in paragraph (c)(2)(ii)(D) of this section.                
    (A) For dual and flexible fuel vehicles, a separate test is required for    
  each certification test fuel required for exhaust emissions testing pursuant  
  to 40 CFR 86.113 or 40 CFR 86.1313.                                           
    (B) For light-duty vehicles and light-duty trucks the test fuels used       
  during the emissions testing required by paragraph (c)(4) of this section     
  must comply with the fuel specifications for exhaust emissions testing found  
  in 40 CFR 86.113. For heavy-duty engines the test fuels used during the       
  emissions testing required by paragraph (c)(2) of this section must comply    
  with the fuel specifications for exhaust emissions testing found in 40 CFR    
  86.1313.                                                                      
    (C) A converted vehicle shall be considered to meet the requirements of     
  this paragraph if the following criteria are satisfied:                       
    (1) The vehicle's measured idle mode exhaust CO concentration(s) must be    
  lower than the sum of 0.4 percent CO plus the idle mode certification CO      
  emissions reference value as determined according to the requirements of      
  paragraph (b)(3) of this section.                                             
    (2) The vehicle's measured high-speed mode exhaust CO concentration(s) must 
  be lower than the sum of 0.4 percent CO plus the high-speed certification CO  
  emissions reference value as determined according to the requirements of      
  paragraph (b)(3) of this section.                                             
    (D) For the purposes of the post-installation emissions testing required by 
  paragraph (c) of this section, the following adjustments to the two speed     
  idle test-EPA 91 in 40 CFR 85.2215 are necessary.                             
    (1) Testing of hydrocarbon emissions and equipment associated solely with   
  hydrocarbon emissions testing is not required.                                
    (2) The CO emissions pass/fail criteria in 40 CFR 85.2215(a)(2),            
  (c)(1)(ii)(A), (c)(2)(ii)(A)(1), (c)(2)(iii)(A)(1), and (d)(3)(i) are to be   
  replaced with the pass/fail criteria detailed in paragraph (c)(2)(ii)(C) of   
  this section. All HC pass/fail criteria in 40 CFR 85.2215 do not apply.       
    (3) The void test criteria in 40 CFR 85.2215(a)(3) and (b)(2)(iv)           
  associated with maintaining the measured concentration of CO plus CO2 above   
  six percent does not apply. However, the Administrator may reconsider         
  requiring that the void test criteria in 40 CFR 85.2215(a)(3) and (b)(2)(iv)  
  be applied, and may issue an advisory memorandum to this effect in the        
  future.                                                                       
    (4) The ambient temperature levels encountered by the vehicle during        
  testing must comply with the specifications in 40 CFR 86.130 or 40 CFR        
  86.1330.                                                                      
    (d) The clean-fuel vehicle aftermarket conversion certifier shall be        
  considered a manufacturer for purposes of Clean Air Act sections 206 and 207  
  and related enforcement provisions, and must accept liability for in-use      
  performance of all the vehicles produced under the certificate of conformity  
  as outlined in 40 CFR part 85.                                                
    (1) The useful life period for the purposes of determining the in-use       
  liability of the clean-fuel vehicle aftermarket conversion certifier shall be 
  the original useful life of the vehicle prior to conversion.                  
    (2) [Reserved].                                                             
    (e) Tampering. (1) The conversion from an engine or vehicle capable of      
  operating on gasoline or diesel fuel only to a clean-fuel engine or vehicle   
  shall not be considered a violation of the tampering provisions of Clean Air  
  Act section 203(a)(3), if such conversion is done pursuant to a conversion    
  configuration certificate by the aftermarket conversion certifier or by an    
  installer listed on the certificate.                                          
    (2) In order to comply with the provisions of this subpart, an aftermarket  
  conversion installer must:                                                    
    (i) Install a certified aftermarket conversion system for which the         
  installer is listed by the certifier; and                                     
    (ii) Perform such installation according to instructions provided by the    
  aftermarket conversion certifier.                                             
    (f) Data collection. The clean-fuel vehicle aftermarket conversion          
  certifier is responsible for maintaining records of each engine and vehicle   
  converted for use in the Clean Fuel Fleets program for a period of 5 years.   
  The records are to include the engine or vehicle make, engine or vehicle      
  model, engine or vehicle model year, and engine or vehicle identification     
  number of converted engines and vehicles; the certification number of the     
  conversion configuration; the brand names and part numbers of the parts       
  included in the conversion configuration; the date of the conversion and the  
  facility at which the conversion was performed; and the results of post-      
  installation emissions testing if required pursuant to paragraph (c) of this  
  section.                                                                      
    22. A new Sec. 88.308-94 is added to subpart C to read as follows:          
                                                                                
  Sec. 88.308-94   Programmatic requirements for clean-fuel fleet vehicles.     
                                                                                
    Multi-State nonattainment areas. The states comprising a multi-State        
  nonattainment area shall, to the greatest extent possible, promulgate         
  consistent clean-fuel fleet vehicle programs.                                 
    23. Section 88.311-93 of subpart C is amended by revising paragraphs (c)    
  and (d) to read as follows:                                                   
                                                                                
  Sec. 88.311-93   Emissions standards for Inherently Low-Emission Vehicles.    
                                                                                
  * * * * *                                                                     
                                                                                
    (c) Light-duty vehicles and light-duty trucks. ILEVs in LDV and LDT classes 
  shall have exhaust emissions which do not exceed the LEV exhaust emission     
  standards for NMOG, CO, HCHO, and PM and the ULEV exhaust emission standards  
  for NOX listed in Tables A104-1 through A104-6 for light-duty CFVs. Exhaust   
  emissions shall be measured in accordance with the test procedures specified  
  in Sec. 88.104(l). An ILEV must be able to operate on only one fuel, or must  
  be certified as an ILEV on all fuels it can operate on. These vehicles shall  
  also comply with all requirements of 40 CFR part 86 which are applicable to   
  conventional gasoline-fueled, methanol-fueled, diesel-fueled, natural gas-    
  fueled or liquified petroleum gas-fueled LDVs/LDTs of the same vehicle class  
  and model year.                                                               
    (d) Heavy-duty vehicles. ILEVs in the HDV class shall have exhaust          
  emissions with combined non-methane hydrocarbon and oxides of nitrogen        
  exhaust emissions which do not exceed the exhaust emission standards in grams 
  per brake horsepower-hour listed in Sec. 88.105. Exhaust emissions shall be   
  measured in accordance with the test procedures specified in Sec. 88.105(d).  
  An ILEV must be able to operate on only one fuel, or must be certified as an  
  ILEV on all fuels it can operate on. These vehicles shall also comply with    
  all requirements of 40 CFR part 86 which are applicable in the case of        
  conventional gasoline-fueled, methanol-fueled, diesel-fueled, natural gas-    
  fueled or liquified petroleum gas-fueled HDVs, of the same weight class and   
  model year.                                                                   
                                                                                
  * * * * *                                                                     
                                                                                
     24. The tables to subpart C of part 88 are amended by removing tables C93- 
  6, C93-6.1, and C93-6.2, and by revising tables C94-1, C94-1.1, C94-1.2, C94- 
  1.3, C94-2, C94-2.1, C94-2.2, C94-2.3, C94-3, C94-3.1, C94-3.2, and C94-3.3   
  to read as follows:                                                           
                                                                                
                         Tables to Subpart C of Part 88                         
                                                                                
               Table C94-1.--Fleet Credit Table Based on Reduction              
               in NMOG. Vehicle Equivalents for Light-Duty Vehicles             
                              and Light-Duty Trucks                             
                                                                                
                Table C94-1.1.--Credit Generation: Purchasing More              
                 Clean-Fuel Vehicles Than Required by the Mandate               
                                                                                
                                                      LDT                       
                                                     >6000                      
                   LDV, LDT                 LDT      GVWR,      LDT             
                   </=6000   LDT</=6000    >6000     >3750     >6000            
                    GVWR,    GVWR, >3750   GVWR,      ALVW     GVWR,            
                   </=3750   LVW </=5750  </=3750   </=5750   >K5750            
             NMOG    LVW         LVW        ALVW      ALVW     ALVW             
                                                                                
             LEV       1.00         1.26      0.71      0.91     1.11           
             ULEV      1.20         1.54      1.00      1.29     1.47           
             ZEV       1.43         1.83      1.43      1.83     2.23           
                                                                                
                 Table C94-1.2.--Credit Generation: Purchasing a                
                         ULEV or ZEV To Meet the Mandate                        
                                                                                
                                                     LDT                        
                                 LDT                >6000                       
                    LDV, LDT  1</=6000     LDT      GVWR,     LDT               
                    </=6000     GVWR,     >6000     >3750    >6000              
                     GVWR,    >3750 LVW   GVWR,     ALVW,    GVWR,              
                    </=3750    </=5750   </=3750   </=5750   >5750              
              NMOG    LVW        LVW       ALVW      ALVW     ALVW              
                                                                                
              LEV       0.00       0.00      0.00      0.00    0.00             
              ULEV      0.20       0.29      0.29      0.34    0.45             
              ZEV       0.43       0.57      0.71      0.91    1.11             
                                                                                
               Table C94-1.3.--Credit Needed in Lieu of Purchasing              
                            a LEV To Meet the Mandate                           
                                                                                
                                LDT                 LDT                         
                              </=6000              >6000                        
                    LDV, LDT   GVWR,      LDT      GVWR,      LDT               
                    </=6000    >3750     >6000     >3750     >6000              
                     GVWR,      LVW      GVWR,      ALVW     GVWR,              
                    </=3750   </=5750   </=3750   </=5750   </=5750             
              NMOG    LVW       LVW       ALVW      ALVW      ALVW              
                                                                                
              LEV       1.00      1.26      0.71      0.91      1.11            
                                                                                
               Table C94-2.--Fleet Credit Table Based on Reduction              
                 in NMOG+NOx. Vehicle Equivalents for Light-Duty                
                          Vehicles and Light-Duty Trucks                        
                                                                                
                Table C94-2.1.--Credit Generation: Purchasing More              
                 Clean-Fuel Vehicles Than Required by the Mandate               
                                                                                
                                   LDT                 LDT                      
                                 </=6000              >6000                     
                       LDV, LDT   GVWR,      LDT      GVWR,     LDT             
                       </=6000    >3750     >6000     >3750    >6000            
                        GVWR,      LVW      GVWR,      ALVW    GVWR,            
                       </=3750   </=5750   </=3750   </=5750   >5750            
             NMOG+NOX    LVW       LVW       ALVW      ALVW     ALVW            
                                                                                
             LEV           1.00      1.39      0.33      0.43    0.52           
             ULEV          1.09      1.52      1.00      1.39    2.06           
             ZEV           1.73      2.72      1.73      2.72    3.97           
                                                                                
               Table C94-2.2.--Credit Generation: Purchasing a ULEV             
                            or ZEV To Meet the Mandate                          
                                                                                
                                   LDT                 LDT                      
                                 </=6000              >6000                     
                       LDV, LDT   GVWR,      LDT      GVWR,     LDT             
                       </=6000    >3750     >6000     >3750    >6000            
                        GVWR,      LVW      GVWR,      ALVW    GVWR,            
                       </=3750   </=5750   </=3750   </=5750   >5750            
             NMOG+NOX    LVW       LVW       ALVW      ALVW     ALVW            
                                                                                
             LEV           0.00      0.00      0.00      0.00    0.00           
             ULEV          0.09      0.13      0.67      0.96    1.54           
             ZEV           0.73      1.34      1.40      2.29    3.45           
                                                                                
               Table C94-2.3.--Credit Needed in Lieu of Purchasing              
                            a LEV To Meet the Mandate                           
                                                                                
                                   LDT                 LDT                      
                                 </=6000              >6000                     
                       LDV, LDT   GVWR,      LDT      GVWR,     LDT             
                       </=6000    >3750    </=6000    >3750    >6000            
                        GVWR,      LVW      GVWR,      ALVW    GVWR,            
                       </=3750   </=5750   </=3750   </=5750   >5750            
             NMOG+NOX    LVW       LVW       ALVW      ALVW     ALVW            
                                                                                
             LEV           1.00      1.39      0.33      0.43    0.52           
                                                                                
                    Table C94-3.--Fleet Credit Table Based on                   
                Reduction in Carbon Monoxide. Vehicle Equivalents               
                  for Light-Duty Vehicles and Light-Duty Trucks                 
                                                                                
                Table C94-3.1.--Credit Generation: Purchasing More              
                 Clean-Fuel Vehicles Than Required by the Mandate               
                                                                                
                                 LDT                 LDT                        
                               </=6000              >6000                       
                     LDV, LDT   GVWR,      LDT      GVWR,     LDT               
                     </=6000    >3750    </=6000    >3750    >6000              
                      GVWR,      LVW      GVWR,      ALVW    GVWR,              
                     </=3750   </=5750   </=3750   </=5750   >5750              
                CO     LVW       LVW       ALVW      ALVW     ALVW              
                                                                                
               LEV       1.00      1.00      1.00      1.00    1.00             
               ULEV      2.00      2.29      2.00      2.29    2.47             
               ZEV       3.00      3.59      3.00      3.59    3.94             
                                                                                
                 Table C94-3.2.--Credit Generation: Purchasing a                
                         ULEV or ZEV To Meet the Mandate                        
                                                                                
                                 LDT                 LDT                        
                               </=6000              >6000                       
                     LDV, LDT   GVWR,      LDT      GVWR,     LDT               
                     </=6000    >3750     >6000     >3750    >6000              
                      GVWR,      LVW      GVWR,      ALVW    GVWR,              
                     </=3750   </=5750   </=3750   </=5750   >5750              
                CO     LVW       LVW       ALVW      ALVW     ALVW              
                                                                                
               LEV       0.00      0.00      0.00      0.00    0.00             
               ULEV      1.00      1.00      1.00      1.00    1.00             
               ZEV       2.00      2.29      2.00      2.29    2.47             
                                                                                
                    Table C94-3.3.--Credit Needed in Lieu of                    
                      Purchasing a LEV To Meet The Mandate                      
                                                                                
                                LDT                 LDT                         
                              </=6000              >6000                        
                    LDV, LDT   GVWR,      LDT      GVWR,     LDT                
                    </=6000    >3750     >6000     >3750    >6000               
                     GVWR,      LVW      GVWR,      ALVW    GVWR,               
                    </=3750   </=5750   </=3750   </=5750   >5750               
               CO     LVW       LVW       ALVW      ALVW     ALVW               
                                                                                
               LEV      1.00      1.00      1.00      1.00    1.00              
                                                                                
  * * * * *                                                                     
                                                                                
  [FR Doc. 94-22132 Filed 9-29-94; 8:45 am]                                     
                                                                                
  BILLING CODE 6560-50-P