Control of Air Pollution From New Motor Vehicles and New Motor Vehicle Engines; Nonconformance Penalties for 1996 and 1998 Model Year Emission Standards for Heavy-Duty Vehicles and EnginesPart II

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 86

[A-94-13; FRL-5425-9]

RIN 2060-AE07

Control of Air Pollution From New Motor Vehicles and New Motor

Vehicle Engines; Nonconformance Penalties for 1996 and 1998 Model Year

Emission Standards for Heavy-Duty Vehicles and Engines--Part II

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: This final rule makes nonconformance penalties (NCPs)

available for the 1998 and later model year Heavy-Duty Engine (HDE)

oxides of nitrogen (NOX) standard for Heavy-Duty Diesel Engines

(HDDEs), the 1996 and later model year Light-Duty Truck 3 (LDT3)

NOX standard, and the 1996 and later model year Urban Bus

particulate matter (PM) standard. The availability of NCPs will allow

manufacturers whose vehicles or engines fail to conform with these

emission standards, but do not exceed a designated upper limit, to be

issued a certificate of conformity upon payment of a monetary penalty.

The associated upper limit will be the previous standard (5.0 grams per

brake horsepower-hour (g/BHp-hr) NOX for HDDEs, 1.7 grams per mile

(g/mi) NOX for LDT3s, and 0.07 g/BHp-hr PM for urban buses).

A final rule published elsewhere in this Federal Register document

addresses other emission standards for which NCPs have been considered

and establishes NCPs for the 1996 PM standard for LDT3.

EFFECTIVE DATE: This final rule will be effective April 23, 1996 unless

notice is received by March 25, 1996 that adverse or critical comments

will be submitted or that an opportunity to submit such comments at a

public hearing is requested. If such comments or a request for a public

hearing are received by the Agency, EPA will then publish a subsequent

Federal Register document withdrawing from this action only those items

which are specifically listed in those comments or in the request for a

public hearing.

ADDRESSES: Public Docket: Copies of materials relevant to this

rulemaking proceeding are contained in Public Docket A-94-13 at the Air

Docket of the US Environmental Protection Agency, Room M1500, 401 M

Street, SW, Washington, DC 20460, and are available for review in Room

M1500 between the hours of 8:00 a.m. and 5:30 p.m. on weekdays. As

provided in 40 CFR Part 2, a reasonable fee may be charged for copying

services.

FOR FURTHER INFORMATION CONTACT: Mr. Gregory Orehowsky, Manufacturers

Operations Division [6405-J], US Environmental Protection Agency, 401 M

Street, SW, Washington, DC 20460, telephone (202) 233-9292.

SUPPLEMENTARY INFORMATION: EPA believes that the use of a direct final

rule is appropriate because the changes made are expected to be non-

controversial. The direct final rule will allow the Agency to finalize

such changes in a timely manner, allowing NCPs to be available before

the start of production of affected vehicles.

I. Statutory Authority

Section 206(g) of the Clean Air Act (the Act), 42 U.S.C. 7525(g),

requires EPA to issue a certificate of conformity for HDEs or Heavy-

Duty Vehicles (HDVs) which exceed an applicable section 202(a)

emissions standard, but do not exceed an upper limit associated with

that standard, if the manufacturer pays an NCP established by

rulemaking. Congress adopted section 206(g) in the Clean Air Act

Amendments of 1977 as a response to perceived problems with technology-

forcing heavy-duty emissions standards. (It should be noted, however,

that the existence of NCPs does not change the criteria under which the

standards have been and will be set under section 202.) Following

International Harvester v. Ruckelshaus, 478 F.2d 615 (D.C. Cir. 1973),

Congress realized the dilemma that technology-forcing standards were

likely to cause. If strict standards were maintained, then some

manufacturers, ``technological laggards,'' might be unable to comply

initially and would be forced out of the marketplace. NCPs were

intended to remedy this potential problem. The laggards would have a

temporary alternative that would permit them to sell their engines or

vehicles by payment of a penalty. This penalty is based in part, on the

money saved from the production of non complying engines, would protect

conforming manufacturers from the competitive disadvantage of making

more costly

[[Page 6950]]

engines which comply with technology forcing standards.

Under section 206(g)(1) of the Clean Air Act, NCPs may be offered

for HDVs or HDEs. The penalty may vary by pollutant and by class or

category of vehicle or engine.

HDVs are defined by section 202(b)(3)(C) of the Clean Air Act as

vehicles in excess of 6,000 pounds gross vehicle weight rating (GVWR).

The light-duty truck (LDT) classification includes trucks that have a

GVWR of 8,500 lbs or less. Therefore, certain LDTs may be classified as

HDVs. Historically, LDTs between 6,001 and 8,500 pounds GVWR have been

considered Heavy Light Duty Trucks (HLDTs). Based on various new

requirements established by the Clean Air Act Amendments of 1990, HLDTs

have been further subdivided into groups by weight.

The HLDTs are divided at 5750 lbs Adjusted Loaded Vehicle Weight

(ALVW) which is the average of the curb weight and the GVWR. The HLDTs

that are up through 5750 lbs ALVW are called Light Duty Trucks 3

(LDT3). Those above 5750 lbs ALVW but less than or equal to 8500 lbs

GVWR are Light Duty Trucks 4, or LDT4. The LDT3 and LDT4 subclasses

make up the HLDT vehicle class. Since NCPs are only offered for heavy

duty vehicles or engines, this notice addresses only emission standards

for light duty trucks of the LDT3 and LDT4 categories.

Section 206(g)(3) of the Clean Air Act requires that NCPs:

(1) Account for the degree of emission nonconformity;

(2) Increase periodically to provide incentive for nonconforming

manufacturers to achieve the emission standards; and

(3) Remove the competitive disadvantage to conforming

manufacturers.

Section 206(g) authorizes EPA to require testing of production

vehicles or engines in order to determine the emission level on which

the penalty is based. If the emission level of a vehicle or engine

exceeds an upper limit of nonconformity established by EPA through

regulation, the vehicle or engine would not qualify for an NCP under

section 206(g) and no certificate of conformity could be issued to the

manufacturer. If the emission level is below the upper limit but above

the standard, that emission level becomes the ``compliance level,''

which is also the benchmark for warranty and recall liability; the

manufacturer who elects to pay the NCP is liable for vehicles or

engines that exceed the compliance level in-use, unless, for the case

of HLDTs, the compliance level is below the in-use standard. The

manufacturer does not have in-use warranty or recall liability for

emissions levels above the standard but below the compliance level.

II. Background

A. The Generic Nonconformance Penalty Rule

The generic NCP rule (Phase I) established three basic criteria for

determining the eligibility of emission standards for nonconformance

penalties in any given model year. See 40 CFR 1103-87. First, the

emission standard in question must become more difficult to meet. This

can occur in two ways, either by the emission standard itself becoming

more stringent, or due to its interaction with another emission

standard that has become more stringent.

Second, substantial work must be required to meet the emission

standard. EPA considers ``substantial work'' to mean the application of

technology not previously used in that vehicle or engine class/

subclass, or a significant modification of existing technology, to

bring that vehicle/engine into compliance. EPA does not consider minor

modifications or calibration changes to be classified as substantial

work.

Third, a technological laggard must be likely to develop. A

technological laggard is defined as a manufacturer who cannot meet a

particular emission standard due to technological (not economic)

difficulties and who, in the absence of NCPs, might be forced from the

marketplace. EPA will make the determination that a technological

laggard is likely to develop, based in large part on the above two

criteria. However, these criteria are not always sufficient to

determine the likelihood of the development of a technological laggard.

An emission standard may become more difficult to meet and substantial

work may be required for compliance, but if that work merely involves

transfer of well-developed technology from another vehicle class, it is

unlikely that a technological laggard would develop.

The above three criteria were used to determine eligibility for

NCPs in Phase II of the NCP rulemaking (50 FR 53454, December 31,

1985), in Phase III of the NCP rulemaking (55 FR 46622, November 5,

1990) concerning the 1991 model year HDE standards, and in Phase IV of

the NCP rulemaking (58 FR 68532, December 28, 1993) concerning HDVs and

HDEs subject to the 1994 and later model year emission standards for

particulate matter (PM).

As in the previous NCP rules, EPA is specifying values for the

following parameters in the NCP formula for each standard: COC50,

COC90, MC50, and F. The NCP formula is the same as that

promulgated in the Phase I rule.

COC50 is an estimate of the industry wide average incremental

cost per engine (references to engines are intended to include vehicles

as well) associated with meeting the standard for which an NCP is

offered, compared with meeting the upper limit. COC50 is based on

typical engine technology, as nearly as EPA can identify it. As in the

previous NCP rules, costs include additional manufacturer costs and

additional owner costs. The other NCP rules did not include

certification costs in the calculation of COC50, and none will be

allowed in this proposed rule because both complying and noncomplying

manufacturers must incur certification costs.

COC90 is EPA's best estimate of the 90th percentile

incremental cost per engine associated with meeting the standard for

which an NCP is offered, compared with meeting the associated upper

limit. COC90 is based on a near worst case technology, as nearly

as EPA can identify it. COC90, like COC50, includes both

manufacturer and owner costs, but not certification costs.

MC50 is an estimate of the industry wide average marginal cost

of compliance per unit of reduced pollutant associated with the least

cost effective emission control technology installed to meet the new

standard. MC50 is measured in dollars per g/BHP-hr for HDEs and in

dollars per gram per mile (g/mi) for LDTs.

F is a factor used to derive MC90, the 90th percentile

marginal cost of compliance with the NCP standard for engines in the

NCP category. MC90 is defined as being the slope of the penalty

rate curve near the standard and is equal to MC50 multiplied by F.

For this rulemaking, as was the case in the previous NCP rules, EPA has

determined that no reasonable estimate of MC90 can be made based

on existing marginal cost data and has thus set F at a presumptive

value of 1.2. This approach was generally supported by commentaries on

the past NCP rulemakings.

B. Notice of Proposed Rulemaking

In the Notice of Proposed Rulemaking (NPRM) (59 FR 43074, August

22, 1994), EPA identified the Tier I Heavy Light-Duty Trucks (HLDT)

NOX standard of 0.98 g/mi becoming effective in 1996, the 1998 HDE

NOX standard of 4.0 g/

[[Page 6951]]

BHp-hr, and the 1996 Urban Bus PM standard of 0.05 g/BHp-hr as new

standards for which it has statutory authority for considering NCPs.

EPA did not propose to offer NCPs for these standards because, based on

the information available at the time of the proposed rulemaking, these

standards did not meet the criteria for offering NCPs.

C. Summary and Analysis of Comments

Based on comments to the NPRM received by EPA, EPA has decided to

offer NCPs for the 1996 Light Duty Trucks 3 (LDT3) NOX standard of

0.98 g/mi for diesel-fueled vehicles, the 1998 HDE NOX standard of

4.0 g/BHp-hr for HDDEs, and the 1996 Urban Bus PM standard of 0.05 g/

BHp-hr.

1. Heavy Light Duty Trucks 3 NOX Standard

General Motors, the only manufacturer in this market, commented

that NCPs are justified for this standard since ``* * * the NOX

standard change is large (1.7 g/mi to 0.98 g/mi) * * *'' and ``attempts

to reach significantly lower NOX levels with the current

technology results in very poor engine combustion control with

significant increased smoke * * *'' GM goes on to state that new

technology is required which ``concentrates on new EGR systems and

control interfaces between this EGR technology and the fuel control

system * * *''

EPA agrees with GM's assessment that current EGR flow rates cannot

be increased to limit NOX emissions without changes to the fuel

control system. Driveabiliity problems will occur at higher EGR flow

rates unless the fuel control system is adjusted to account for these

higher EGR flow rates. EPA believes that GM will need to recalibrate

the engine computer to better control fuel delivery rates to allow for

improved driveability at increased EGR flow rates. EPA also believes

that air-to-air aftercooling will be necessary to further reduce

NOX emissions below the standard.

EPA acknowledges that the stringency of the NOX standard for

this class of trucks has increased. Also, significant work will be

involved in developing the appropriate fuel system calibration to allow

for increased EGR flow. Further work will be necessary to develop air-

to-air aftercooling which is new to this segment of the truck market.

Since the previously mentioned technology may not be developed by the

start of the 1996 model year, a technological laggard may develop. For

these reasons, EPA is offering NCPs for 1996 LTD3 NOX standard.

2. 1996 HDDE Urban Bus PM Standard

Detroit Diesel Corporation (DDC) commented that they are capable of

achieving 0.05 g/BHp-hr in development engines using only a catalytic

converter, but they need new technology to ensure that production

engines would be capable of satisfying the new standard during

Selective Enforcement Audit (SEA) testing. The Engine Manufacturers

Association (EMA) stated that for the 1996 model year Urban Bus Engine

PM standard the three criteria for offering NCPs are met.

In the 1996 model year the PM standard applicable to Urban Bus

Engines becomes more stringent. EPA acknowledges that new technologies

need to be developed to provide for a compliance margin for SEA

testing. These technologies include improving aftertreatment devices

such as catalysts and traps and new turbocharger designs. EPA believes

that substantial work will be involved in developing this diesel fueled

technology. Particulate traps have not proven to be durable. Catalysts

have reduced PM emissions but further reductions are necessary. Low

inertia turbochargers are being developed but have yet to be offered in

the urban bus market and their effectiveness is uncertain.

EPA believes that Urban Bus Engine manufacturers will need to

employ the unproven technology mentioned in the preceding paragraph to

ensure compliance with this standard, thus; EPA believes a

technological laggard is likely to develop and will be offering NCPs.

3. 1998 HDE NOX Standard

EMA commented that ``based on the information presently available,

it is likely that certain engine manufacturers and/or certain engine

families may not be able to meet the 4.0 g/bhp-hr NOX standard in

1998''. Mack Truck suggested that NCPs should be offered for this

standard since they were offered for the 1988 and 1991 NOX

standards. DDC commented that several of their most advanced engines

are using credits to meet the 1994 standards. Because of the NOX-

PM trade off and the stringency of the 1994 PM standard, none of their

engines are capable of generating NOX credits which could be used

toward the 1998 NOX standard. This could result in DDC having to

discontinue several of its engine ratings in 1998. Navistar commented

that a commercially important engine may not be finished in time

causing an interruption in manufacturing. Navistar stated that NCPs

would allow such an engine to be put into commerce.

In the 1998 model year the NOX standard applicable to HDEs

will become more stringent. EPA believes that this increase in

stringency will require the HDE manufacturers to employ new emission

control technology (e.g., oxidation catalysts, improved turbochargers,

modifications to the fuel injection systems, or engine calibration

changes). These new technologies will require substantial work. Also

based on manufacturers' comments to the Notice of Proposed Rulemaking

(59 FR 43074, August 22, 1994), EPA now believes that a technological

laggard may develop. Therefore, EPA has decided to offer NCPs for the

1998 model year HDE NOX standard.

III. Standards Addressed in a Concurrent NCP Rulemaking

a. 1996 Tier 1 Standards for LDT3 other than diesel NOX

b. 1996 Tier 1 Standards for LDT4

IV. Penalty Rates and Upper Limits

This rule is the most recent in a series of NCP rulemakings. The

discussion of penalty rates in the Phase IV rulemaking (58 FR 68532,

December 28, 1993), Phase III rulemaking (55 FR 46622, November 5,

1990), the Phase II rulemaking (50 FR 53454, December 31, 1985) as well

as the Phase I rulemaking (50 FR 35374, August 30, 1985) are

incorporated by reference.

The derivation of the proposed cost parameters is described in a

support document entitled ``Calculation of Nonconformance Penalty Rates

for 1996 and Later Model Year LDT3 Particulate Matter (PM), LDT3 Oxides

of Nitrogen (NOX), 1996 and Later Model Year Urban Bus Particulate

Matter (PM), and 1998 and Later Model Year HDDE Oxides of Nitrogen

(NOX) Standards'' which is available in the public docket for this

rulemaking. The associated upper limits of 1.7 g/mi NOX and 0.12

g/mi PM for diesel LDT3, 5.0 g/BHp-hr NOX for HDDEs, and 0.07 g/

BHp-hr PM for urban bus engines were determined from the previous

standards as per Section 86.1104-91 of the Code of Federal Regulations

(CFR).

V. Administrative Designation and Regulatory Analysis

Under Executive Order 12866 (58 FR 51735, October 4, 1993), EPA

must determine whether the 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:

[[Page 6952]]

(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.

Pursuant to the terms of Executive Order 12866, it has been

determined that this rule is not a ``significant regulatory action.''

This regulation will not have an annual effect on the economy in excess

of $100 million and will not cause a major increase in the price of

HDEs above those that would otherwise occur from compliance with the

emission standards themselves. This regulation is intended to assist

manufacturers that are having difficulty developing and marketing

vehicles which comply with the 1996 Tier 1 PM standard for LDT3s.

Without this rule, a manufacturer experiencing difficulty in complying

with this new emission standard (after the use of credits) has only two

alternatives: fix the nonconforming engines for the associated model

years or not sell them at all. NCPs provide manufacturers with

additional time to bring their engines into conformity.

In addition, NCPs are calculated to deprive nonconforming

manufacturers of any cost savings and competitive advantages stemming

from marketing a nonconforming engine. Thus, NCPs will not have

significant adverse effects on competition, employment, investment,

productivity, innovation or on the ability of United States-based

enterprises to compete with foreign-based enterprises in domestic or

export markets.

VI. Economic Impact

Because the use of NCPs is optional, manufacturers have the

flexibility and will likely choose whether or not to use NCPs based on

their ability to comply with emissions standards. If a HDE manufacturer

elects not to use NCPs, the manufacturer and its customers will not

incur any additional costs related to NCPs. NCPs remedy the potential

problem of having a manufacturer forced out of the marketplace due to

that manufacturer's inability to conform to new, strict emission

standards in a timely manner. Without NCPs, a manufacturer which has

difficulty certifying HDEs in conformance with emission standards or

whose engines fail a SEA has only two alternatives: fix the

nonconforming engines, perhaps at a prohibitive cost, or prevent their

introduction into commerce. The availability of NCPs provides

manufacturers with a third alternative: continue production and

introduce into commerce upon payment of a penalty for an engine that

exceeds the standard until an emission conformance technique is

developed.

Therefore, NCPs represent a regulatory mechanism that allows

affected manufacturers to have increased flexibility. A decision to use

NCPs may be a manufacturer's only way to continue to introduce HDEs

into commerce. Hence, NCPs may be considered to have no adverse

economic impact.

VII. Environmental Impact

When evaluating the environmental impact of this rule, one must

keep in mind that, under the Clean Air Act, NCPs are a consequence of

enacting new, more stringent emissions requirements for heavy duty

engines. Emission standards are set at a level that most, but not

necessarily all, manufacturers can achieve by the model year in which

the standard becomes effective. Following International Harvester v.

Ruckelshaus, 478 F.2d 615 (D.C. Cir. 1973), Congress realized the

dilemma that technology-forcing standards were likely to cause, and

allowed manufacturers of heavy-duty engines to certify nonconforming

vehicles/engines upon the payment of an NCP, under certain conditions.

This mechanism would allow a manufacturer(s) who cannot meet

technology-forcing standards immediately to continue to manufacture

these nonconforming engines while they tackle the technological

problems associated with meeting new emission standard(s). Thus, as

part of the statutory structure to force technological improvements

without driving manufacturers out of the market, NCPs provide

flexibility that fosters long-term emissions improvement through the

setting of lower emission standards at an earlier date than could

otherwise be possible. By design, NCPs encourage the technological

laggard that is using NCPs to reduce emission levels to the more

stringent standard as quickly as possible.

VIII. Compliance With Regulatory Flexibility Act

Under section 605 of the Regulatory Flexibility Act, 5 U.S.C. 601,

et seq., the Administrator is required to either perform a regulatory

flexibility analysis or certify that this regulation will not have a

significant impact on a substantial number of small business entities.

None of the affected manufacturers could be classified as small.

Moreover, as already discussed, the NCP program can be expected to

benefit manufacturers.

Some small entities do exist as manufacturers' contractors for the

testing of engines for Production Compliance Audits (PCAs). It is EPA's

practice to conduct PCA scheduling (namely, tests per day limitations)

in such a way as to consider the staff and manpower capabilities of

such contractors and avoid any problems. The result is that these

entities are not adversely affected. Thus, I certify that this rule

will not have any adverse economic impact on a substantial number of

small entities.

IX. Information Collection Requirements

This rule requires that manufacturers perform certain record

keeping and submit certain reports to EPA. The Paperwork Reduction Act

of 1980, 44 U.S.C. 3501, et seq., provides that reporting and record

keeping requirements be approved by OMB before they can be enforced by

EPA. The information collection requirements in this proposed rule have

been addressed in previous rulemaking and approved by OMB (OMB control

no. 2060-0132). However, any person wishing to comment on these

requirements is invited to do so. Comments on these requirements should

be submitted to Chief, Information Policy Branch, Mail Code 2136, U.S.

Environmental Protection Agency, 401 M St., S.W., Washington, DC 20460

and to Office of Management and Budget (OMB), Office of Information and

Regulatory Affairs, 726 Jackson Place, NW, Washington, DC 20503, marked

``Attention: Desk Officer for EPA.''

X. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), P.L.

104-4, establishes requirements for Federal agencies to assess the

effects of their regulatory actions on State, local, and tribal

governments and the private sector. Under section 202 of the UMRA, EPA

generally must prepare a written statement, including a cost benefit

analysis, for proposed and final rules

[[Page 6953]]

with ``Federal mandates'' that may result in expenditures to State,

local, and tribal governments, in the aggregate, or to the private

sector, of $100 million or more in any one year. Before promulgating an

EPA rule for which a written statement is needed, section 205 of the

UMRA generally requires EPA to identify and consider a reasonable

number of regulatory alternative and adopt the least costly, most cost

effective, or least burdensome alternative that achieves the objectives

of the rule. The provisions of section 205 do not apply when they are

inconsistent with applicable law. Moreover, section 205 allows EPA to

adopt an alternative other than the least costly, most cost-effective,

or least burdensome alternative if the Administrator publishes with the

final rule an explanation why that alternative was not adopted. Before

EPA establishes any regulatory requirements that may significantly or

uniquely affect small governments, including tribal governments, it

must have developed under section 203 of the UMRA a small government

agency plan. The plan must provide for notifying potentially affected

small governments, enabling officials of affected small governments to

have meaningful and timely input in the development of EPA regulatory

proposals with significant Federal intergovernmental mandates, and

informing, educating, and advising small governments on compliance with

the regulatory requirements.

Today's rule contains no federal mandates (under the regulatory

provisions of Title II of the UMRA) for State, local, or tribal

governments or the private sector. The rule imposes no enforceable

duties on any of these governmental entities or the private sector. In

addition, the UMRA excludes from the definition of ``Federal private

sector mandate'' duties that arise from participation in a voluntary

federal program. Thus, this rule is not subject to the requirements of

sections 202 and 205 of the UMRA.

List of Subjects in 40 CFR Part 86

Environmental protection, Administrative practice and procedure,

Air pollution control, Gasoline, Motor vehicles, Labeling, Motor

vehicle pollution, Reporting and recordkeeping requirements.

Dated: February 12, 1996.

Carol M. Browner,

Administrator.

For the reasons set forth in the preamble, 40 CFR part 86, is

amended as follows:

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

1. The authority citation for part 86 continues to read as follows:

Authority: Secs. 202, 203, 206, 207, 208, 215, 216, 217, 301(a),

Clean Air Act as amended (42 U.S.C. 7521, 7522, 7524, 7525, 7541,

7542, 7549, 7550, 7552, and 7601(a)).

2. Section 86.1105-87 of subpart L is amended by adding paragraphs

(g)(2) and (3) and paragraph (h), reading as follows:

Sec. 86.1105-87 Emission standards for which nonconformance penalties

are available.

* * * * *

(g) * * *

(2) Light-duty truck 3 diesel-fueled vehicle at full useful life

(as defined in Sec. 86.094-2) oxides of nitrogen emission standard of

0.98 g/mi.

(i) The following values shall be used to calculate an NCP for the

standard set forth in Sec. 86.094-9(a)(1)(ii) in accordance with

Sec. 86.1113-87(a):

(A) COC50: $654.

(B) COC90: $779.

(C) MC50: $908 per gram per mile.

(D) F: 1.2.

(ii) The following factor shall be used to calculate the

engineering and development component of the NCP for the standard set

forth in Sec. 86.094-9(a)(1)(ii) in accordance with Sec. 86.1113-87(h):

0.082.

(3) 1996 Urban Bus (as defined in Sec. 86.094-2) particulate matter

emission standard of 0.05 g/BHp-hr.

(i) The following values shall be used to calculate an NCP for the

standard set forth in Sec. 86.094-9(a)(1)(ii) in accordance with

Sec. 86.1113-87(a):

(A) COC50: $576.

(B) COC90: $6,569.

(C) MC50: $28,800 per gram per brake horsepower-hour.

(D) F: 1.2.

(ii) The following factor shall be used to calculate the

engineering and development component of the NCP for the standard set

forth in Sec. 86.094-9(a)(1)(ii) in accordance with Sec. 86.1113-87(h):

0.500.

(h) Effective in the 1998 model year, NCPs will be available for

the following emission standard:

(1) Petroleum-fueled diesel heavy-duty engine oxides of nitrogen

standard of 4.0 grams per brake horsepower-hour.

(i) For petroleum-fueled light heavy-duty diesel engines:

(A) The following values shall be used to calculate an NCP in

accordance with Sec. 86.1113-87(a):

(1) COC50: $833.

(2) COC90: $1,513.

(3) MC50: $833 per gram per brake horsepower-hour.

(4) F: 1.2.

(B) The following factor shall be used to calculate the engineering

and development component of the NCP for the standard set forth in

Sec. 86.094-9(a)(1)(ii) in accordance with Sec. 86.1113-87(h): 0.039.

(ii) For petroleum-fueled medium heavy-duty diesel engines:

(A) The following values shall be used to calculate an NCP in

accordance with Sec. 86.1113-87(a):

(1) COC50: $444.

(2) COC90: $1,368.

(3) MC50: $444 per gram per brake horsepower-hour.

(4) F: 1.2.

(B) The following factor shall be used to calculate the engineering

and development component of the NCP for the standard set forth in

Sec. 86.094-9(a)(1)(ii) in accordance with Sec. 86.1113-87(h): 0.043.

(iii) For petroleum-fueled heavy heavy-duty diesel engines:

(A) The following values shall be used to calculate an NCP in

accordance with Sec. 86.1113-87(a):

(1) COC50: $1,086.

(2) COC90: $2,540.

(3) MC50: $1,086 per gram per brake horsepower-hour

(4) F: 1.2.

(B) The following factor shall be used to calculate the engineering

and development component of the NCP for the standard set forth in

Sec. 86.094-9(a)(1)(ii) in accordance with Sec. 86.1113-87(h): 0.039.

(2) [Reserved]

[FR Doc. 96-4039 Filed 2-22-96; 8:45 am]

BILLING CODE 6560-50-P