# Control of Emissions of Air Pollution From New Marine Compression-Ignition Engines at or Above 37 kW > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A99-31658 ## Record - **Collection:** Federal Register - **Document type:** Rule - **Published:** December 29, 1999 - **Citation:** 64 FR 73300 ## Text SUMMARY: In this action, we are establishing an emission control program for new marine diesel engines rated at or above 37 kilowatts. The affected engines are used for propulsion and auxiliary purposes in a wide variety of marine applications. The standards for these engines will require substantial reductions in oxides of nitrogen and particulate matter emissions to correspond with the next round of emission standards for comparable land-based engines. The standards will lead to significant reduction in oxides of nitrogen and particulate matter emissions from this source. When combined with other mobile source emission control programs, the program described in this action will help provide long-term improvements in air quality in many port cities and other coastal areas. Overall, these emission standards provide much-needed assistance to states facing ozone and particulate air quality problems, which can cause a range of adverse health effects for their residents, especially in terms of respiratory impairment and related illnesses. The persons potentially affected by this action are those who manufacture new marine diesel engines or marine vessels or other equipment using such engines. Additional requirements apply to companies that rebuild or maintain these engines. DATES: This final rule is effective January 28, 2000 except the amendments to 40 CFR parts 89 and 92 will become effective February 28, 2000, unless EPA receives adverse comment on or before January 28, 2000 regarding the amendments to 40 CFR parts 89 and 92. If we receive such comment, we will publish a timely withdrawal in the Federal Register informing the public that the amendments to 40 CFR parts 89 and 92 will not take effect. The incorporation by reference of certain publications listed in the regulations in 40 CFR part 94 is approved by the Director of the Federal Register as of January 28, 2000. ADDRESSES: Materials relevant to this rulemaking, including the Final Regulatory Impact Analysis, are contained in Public Docket A-97-50. Additional materials can be found in Public Docket A-92-28 (Control of Air Pollution; Emission Standards for New Gasoline Spark-Ignition and Diesel Compression-Ignition Marine Engines). For the changes to 40 CFR part 92, additional materials can be found in Public Docket A-94-31 (Emission Standards for Locomotives and Locomotive Engines). These dockets are located at Room M-1500, Waterside Mall (ground floor), U.S. Environmental Protection Agency, 401 M Street, S.W., Washington, DC 20460. You may inspect the docket from 8:00 a.m. until 5:30 p.m., Monday through Friday. We may charge a reasonable fee for copying docket materials. For further information on electronic availability of this action, see SUPPLEMENTARY INFORMATION below. FOR FURTHER INFORMATION CONTACT: Alan Stout, Office of Mobile Sources, (734) 214-4805, [email protected]. For a copy of the Information Collection Request, contact Sandy Farmer at EPA by phone at (202) 260-2740, by email at [email protected], or download it off the Internet at http:/ /www.epa.gov/icr and refer to EPA ICR No. 1897.02. SUPPLEMENTARY INFORMATION: Regulated Entities You may be regulated by this action if you manufacture or introduce into commerce new marine diesel engines or if you make vessels or other equipment using these engines. Other requirements may apply to you if you rebuild or maintain marine engines. Regulated categories and entities include: ------------------------------------------------------------------------ Examples of NAICS Category regulated entities Code SIC Code ------------------------------------------------------------------------ Industry.................... Manufacturers of new 333618 3519 marine diesel engines. Industry.................... Manufacturers of 3366 3731 marine vessels. 3732 Industry.................... Engine repair and 811310 7699 maintenance. ------------------------------------------------------------------------ This list is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be regulated by this action. To determine whether particular activities may be regulated by this action, carefully examine the regulations, especially the applicability criteria in Sec. 94.1. Direct any questions regarding the applicability of this action to the person listed in FOR FURTHER INFORMATION CONTACT. Obtaining Electronic Copies of the Regulatory Documents The preamble, regulatory language and Final Regulatory Impact Analysis are also available electronically from the EPA Internet Web site. This service is free of charge, except for any cost already incurred for internet connectivity. The electronic version of this rulemaking is made available on the day of publication on the primary Web site listed below. The EPA Office of Mobile Sources also publishes Federal Register notices and related documents on the secondary Web site listed below. 1. http://www.epa.gov/docs/fedrgstr/EPA-AIR/ (either select desired date or use Search feature) 2. http://www.epa.gov/oms/ (look in What's New or under the specific rulemaking topic) Please note that due to differences between the software used to develop the document and the software into which the document may be downloaded, changes in format, page length, etc., may occur. Table of Contents I. Introduction A. Background B. Statutory Authority II. Scope of Application A. Definition of New B. Importing and Exporting Marine Engines C. Marine Engine Definitions D. Remanufactured Engines E. Recreational Engines F. Engine Dressing Exemption G. Foreign-Trade Exemption H. National Security Exemption I. Competition Exemptions J. Other Exemptions III. Engine Categories IV. Emission Standards and Related Provisions A. Standards and Dates 1. MARPOL Annex VI 2. Tier 2 B. Total Hydrocarbons [[Page 73301]] C. Crankcase Emissions D. Smoke Requirements E. Alternative Fuels F. Test Procedures 1. Duty Cycles 2. In-Use Testing 3. Test Fuel 4. Adjustable Parameters 5. Determination of Maximum Test Speed G. Not-to-Exceed Standards and Related Requirements H. Voluntary Low-Emitting Engine Program I. Durability 1. Useful Life 2. Warranty Periods 3. Deterioration Factors 4. Rebuilt Engines 5. Replacement Engines J. Certification 1. Engine Family Definition 2. Emission Data Engine Selection K. Production-Line Testing L. Miscellaneous Compliance Issues M. Averaging, Banking, and Trading Program N. Special Provisions for Post-Manufacture Marinizers V. Technological Feasibility VI. Areas for Future Action A. Tier 3 Emission Standards B. Emission Standards for Remanufactured Engines C. NTE Requirements for Auxiliary Engines D. Application of Provisions to Marine Diesel Engines Less than 37 kW E. Category 3 Engines VII. Projected Impacts A. Environmental Impacts B. Noise, Energy, and Safety C. Economic Impacts D. Cost-effectiveness VIII. Direct Final Changes IX. Public Participation X. Administrative Requirements XI. Judicial Review List of Tables Table 1 Engine Category Definitions Table 2 MARPOL Annex VI Emission Limits Table 3 Final Tier 2 Emission Standards and Dates Table 4 Voluntary Emission Standards Table 5 Useful Life and Warranty Periods Table 6 Category 1 Commercial Propulsion and Auxiliary Emissions Inventory Table 7 Category 2 Emissions Inventory Table 8 [Reserved] Table 9 Emission Reductions From Engines Subject to Tier 2 Standards Table 10 Projected Cost Impacts by Power Rating Table 11 Cost-Effectiveness of the Marine Tier 2 Standards for HC and NOX Table 12 Aggregate Cost-Effectiveness for the Marine Tier 2 Standards for HC and NOX I. Introduction A. Background The Clean Air Act as amended in 1990 mandated that we establish emission regulations for a variety of previously unregulated nonroad mobile sources of emissions, including marine engines. We most recently proposed emission standards and an associated compliance program for commercial marine diesel engines on December 11, 1998 (63 FR 68508).1 At a public hearing on January 19 and in the rest of the comment period we heard from 35 commenters. The program we are finalizing here follows from the approach described in the proposal, though we made numerous adjustments in response to the comments and other information received since the proposal. The proposal included an extensive discussion of the air quality problems we are addressing and the regulatory history of this rulemaking (see Sections I, II, and XI of the proposal). A summary description of the final rule follows in this document. Further discussion of issues and the anticipated impacts of the final rule are in the Final Regulatory Impact Analysis (Final RIA) and the Summary and Analysis of Comments. These documents and all the comments we received are contained in Docket A-97-50. --------------------------------------------------------------------------- \1\ The December 1998 proposal superseded earlier proposed emission standards for marine diesel engines (59 FR 55929, November 9, 1994, and 61 FR 4600, February 7, 1996). References in this document to ``the proposal'' or ``the proposed rule'' refer only to the December 1998 proposal. --------------------------------------------------------------------------- The International Maritime Organization (IMO) is the Secretariat for the International Convention on the Prevention of Pollution from Ships 1973, as modified by the Protocol of 1978 relating thereto (better known as MARPOL 73/78). Annex VI to that Convention, adopted on September 27, 1997 (but not yet in force) contains, among other provisions, requirements to limit NOX emissions from marine diesel engines, but sets no limits for other engine pollutants (i.e., HC, CO, PM). Other provisions of Annex VI include requirements for ozone-depleting substances, sulfur content of fuel, incineration, VOCs from refueling, and fuel quality. The United States has signed Annex VI, but the Annex has not yet been forwarded to the Senate for its advice and consent. B. Statutory Authority We conducted a study of emissions from nonroad engines, vehicles, and equipment in 1991, as directed by the Clean Air Act, section 213(a) (42 U.S.C. 7547(a)). Based on the results of that study, we determined that emissions of NOX, VOCs (including HC), and CO from nonroad engines and equipment contribute significantly to ozone and CO concentrations in more than one nonattainment area (see 59 FR 31306, June 17, 1994). Given this determination, section 213(a)(3) of the Act requires us to establish (and from time to time revise) emission standards for those classes or categories of new nonroad engines, vehicles, and equipment that in our judgment cause or contribute to such air pollution. We have determined that commercial and recreational marine diesel engines rated over 37 kW cause or contribute to such air pollution (See also the preamble to the proposed rule). Where we determine that other emissions from new nonroad engines, vehicles, or equipment significantly contribute to air pollution that may reasonably be anticipated to endanger public health or welfare, section 213(a)(4) authorizes EPA to establish (and from time to time revise) emission standards from those classes or categories of new nonroad engines, vehicles, and equipment that cause or contribute to such air pollution. We have determined that commercial and recreational marine diesel engines rated over 37 kW cause or contribute to such air pollution (See also the preamble to the proposed rule). II. Scope of Application Clean Air Act section 213(a)(3) broadly sets the scope of application of this final rule, instructing us to promulgate regulations containing standards applicable to emissions from those classes or categories of new nonroad engines and new nonroad vehicles that are found to cause or contribute to ozone or carbon monoxide concentrations in more than one nonattainment area. As explained below and in the text of the regulations, the rulemaking generally covers all new diesel engines installed in a marine vessel, and all new marine vessels that use those engines. This includes both propulsion and auxiliary engines. A. Definition of New We are extending the definition of ``new'' contained in 40 CFR 89.2 to marine diesel engines at or above 37 kW. Under that definition, an engine is considered new until its legal or equitable title has been transferred, or the engine has been placed into service. Because the definition of new in 40 CFR 89.2 applies to both engines and equipment, its extension to the marine sector extends as well to vessels. Starting with the implementation dates of the new emission standards, we will consider vessels new until their equitable or legal title has been transferred to an ultimate purchaser. In addition, we will consider a vessel new if it undergoes modifications such that the modified vessel derives at least half [[Page 73302]] of its value from new materials or components. This prevents someone from re-using the hull or other parts from a used vessel to avoid emission standards. To further clarify the definition of ``new,'' 40 CFR 89.2 specifies that a nonroad engine, vehicle, or equipment is placed into service when it is used for its functional purpose. For the purpose of applying this criteria to marine diesel engines and new vessels, we have concluded that a marine diesel engine is used for its functional purpose when it is installed on a marine vessel. This clarification is needed because some marine diesel engines are made by modifying a highway or nonroad engine that has already been installed on a vehicle or other equipment. In other words, the engine has been transferred to an ultimate purchaser after it is used for its functional purpose as a land-based nonroad engine (for example, on a truck or a backhoe) and is therefore no longer new, but it is later removed for marinization and installation on a marine vessel. While the 40 CFR 89 requirements for land-based nonroad diesel engines do not contain such a requirement, we believe it is reasonable to treat these engines as new marine engines when they are installed on a vessel. While the practice of marinizing used highway or nonroad engines may be infrequent, it could become more common if these engines are not subject to the standards finalized in this document. As described in the proposal, we are not applying emission standards to remanufactured engines. In Section VI we discuss the potential for considering this issue in the future. B. Importing and Exporting Marine Engines Engines imported for use in the United States are covered by this final rule whether they are imported as loose engines or are already installed on a vessel constructed elsewhere. We will require all imported engines to have a certificate of conformity from us before anyone may enter them into commerce in the United States, subject to limited exemptions. Accordingly, we are applying the approach contained in other highway and nonroad engine programs, according to which any engine or vessel that is imported into the United States without a valid certificate of conformity and that was built after the effective date of the applicable standards, will be considered new at the time it is imported into the United States. As a new engine, it will have to comply with the relevant emission limits in effect at the time it was manufactured. Thus, for example, a marine vessel manufactured in a foreign country in 2007 that is imported into the United States in 2010 would be considered new, and its engine would have to comply with the emission limits in effect for model year 2007. This provision is important to prevent manufacturers from avoiding the emission requirements by building vessels abroad, transferring their title, and then importing them as used vessels. Engines that are to be exported to countries with emission standards different than ours are exempt from the requirements of this final rule. Marine engines that are exported but are subsequently re- imported into the United States must, however, meet the new emission standards that apply based on the manufacturing date of the engine. This would be the case when a foreign company purchases marine engines manufactured in the United States for installation on a vessel that will be subsequently exported to the United States. It would also be the case when a foreign company purchases marine engines manufactured in the United States for dressing and subsequent re-exportation to the United States. Engines that are intended for export but that will be re-imported into the United States are subject to the emission standards at the time the engine is manufactured, unless the vessel manufacturer or marinizer intends to re-certify the engines to comply with emission standards before they enter the United States. Consequently, foreign purchasers who do not wish to recertify the engines will need to make sure they purchase complying engines for those marine vessels or engines they intend to subsequently offer for sale in the United States. Engines intended for export and sale in a foreign country should be easily distinguishable from complying engines because complying engines are required to be labeled as such. Any person who introduces into commerce in the United States a noncomplying engine that is intended for export and use in a foreign country will be subject to civil penalties. To determine when an engine or vessel will be considered ``imported'' for the purposes of determining compliance with emission standards, we will follow the approach contained in the Harmonized Tariff Schedule of the United States (HTSUS). According to HTSUS, vessels used in international trade or commerce or vessels brought into the territory of the United States by nonresidents for their own use in pleasure cruising are admitted without formal customs consumption entry or payment of duty.2 This approach is consistent with the Treasury Department's ruling, which concluded that vessels coming into the United States temporarily as carriers of passengers or merchandise are not subject to customs entry or duty, but if brought into the United States permanently, they are to be considered and treated as imported merchandise. See American Customs Brokerage Co., Inc., a/c Astral Corp. v. United States, 375 F. Supp. 1360, 1366 (Cust. Ct. 1974). This means that engines installed on vessels flagged in another country that come into the United States temporarily will not be subject to the emission standards, because they are not imported and are therefore not new engines under Clean Air Act Section 216(3) and 213(d). --------------------------------------------------------------------------- \2\ HTSUS (1994), Additional U.S. Note 1. In particular, cruise ships, ferry boats, cargo ships, barges and ``similar vessels for the transportation of persons or goods'' are duty free. HTSUS (1994) 8901. --------------------------------------------------------------------------- C. Marine Engine Definitions In the final land-based nonroad engine rule, we determined that a portable auxiliary engine used onboard a marine vessel should not be considered a marine engine (October 23, 1998, 63 FR 56967). Instead, a portable auxiliary engine is considered to be a land-based engine subject to the requirements of 40 CFR Part 89. To distinguish a marine auxiliary engine installed on a marine vessel from a land-based portable auxiliary engine used on a marine vessel, we specified in that rulemaking that an auxiliary engine is installed on a marine vessel if its fuel, cooling, or exhaust systems are an integral part of the vessel. These auxiliary engines are therefore not fundamentally different than land-based engines and we regulate them under 40 CFR Part 89. With very few exceptions, this final marine engine rule applies equally to propulsion and auxiliary engines. Consistent with the definitions in 40 CFR Part 89, a propulsion engine is one that is intended to move a vessel through the water or assists in guiding the direction of the vessel (including, for example, bow thrusters). Auxiliary engines are all other marine engines. Propulsion and auxiliary engines have different duty cycles and different load factors for calculating emission credits. Auxiliary engines will not be subject to not-to-exceed requirements until we finalize them for land-based nonroad engines. Also, auxiliary engines are not eligible to qualify as recreational engines. [[Page 73303]] Marine drilling platforms are another example of an application where the question arises of whether an engine is a marine engine (subject to 40 CFR Part 94) or a land-based nonroad diesel engine (subject to 40 CFR 89). Drill ships are clearly marine vessels, so engines installed in drill ships are marine engines. In contrast, permanently anchored drilling platforms would not qualify as marine vessels, so none of the engines associated with one of these facilities would be a marine engine. A third class of drilling equipment is less clear. Semi-submersible drilling rigs are moored to the ocean bottom, but have some propulsion capability. We consider these to be marine vessels, so any engine that is ``installed'' on such a rig would be a marine engine. As described above, we would consider portable engines on a drilling rig to be land-based nonroad engines, since they are not installed on the vessel. D. Remanufactured Engines As described in the proposed rule, we are not setting emission standards for engines originally manufactured before the Tier 2 standards take effect. Section VI describes our ongoing concern with remanufactured engines. E. Recreational Engines We continue to believe, as we discussed in the proposal, that it is appropriate to distinguish between commercial and recreational marine engines for the purpose of establishing requirements for engine and vessel manufacturers. This is because the performance characteristics for these two kinds of engines can be substantially different, due to the different characteristics of the vessels on which they are installed. Commercial marine vessels tend to be displacement hull vessels, designed and built for a unique application. Power ratings for engines used on these vessels are analogous to land-based applications, and these engines are warranted for 2,000 to 5,000 hours of use a year. Recreational vessels, on the other hand, tend to be planing vessels, and engines used on these vessels are designed to achieve higher power output with less engine weight. This increase in power reduces the lifetime of the engine; recreational marine engines are therefore warranted for fewer hours of operation than their commercial counterparts. We will be pursuing emission limits for recreational marine engines in a separate rulemaking. This makes it necessary to clearly define recreational marine engine, so engine manufacturers and users will be able to know which set of standards apply to their engine. In this final rule, we are finalizing a definition of recreational marine engine as a propulsion engine that is intended by the manufacturer to be installed on a recreational vessel. To ensure that users will not install a recreational engine on a commercial vessel his engine, we are requiring the following label language (in our proposed rulemaking for recreational marine engines, we will also address any changes that would be appropriate or necessary for this label): THIS ENGINE IS CATEGORIZED AS A RECREATIONAL ENGINE UNDER 40 CFR PART 94, AND IS NOT SUBJECT TO THE EMISSION STANDARDS OF THAT PART. INSTALLATION OF THIS ENGINE IN ANY NONRECREATIONAL VESSEL IS A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY. It should be noted that there is no prohibition against installing a certified commercial marine engine on a recreational vessel. In fact, we encourage recreational vessel manufacturers to use certified engines whenever possible due to the beneficial impact on the environment. There is also no prohibition on installing an old marine engine in an old vessel. We are revising our definition of recreational marine engine, in response to comments, to bring it more in line with the Coast Guard approach contained in 46 U.S.C. 2101. Specifically, we are defining a recreational vessel as a vessel that is intended by the vessel manufacturer to be operated primarily for pleasure or leased, rented or chartered to another for the latter's pleasure. However, we continue to believe that it is necessary to put some boundaries on this definition, since certain vessels that are used for pleasure may have operating characteristics that are, in fact, similar to commercial marine vessels. For example, engines installed on excursion boats should be grouped with commercial marine engines because they are used much more intensely (more hours, higher load) than engines on a similar vessel operated exclusively for one's own pleasure. Therefore, we are drawing on the Coast Guard's definition of passenger vessel to further delineate what will be considered to be a recreational vessel. Specifically, vessels of less than 100 gross tons that carry more than six passengers will not be considered recreational vessels, and vessel of 100 gross tons or more that carry one or more passengers will not be considered recreational vessels. For the purpose of defining a recreational vessel, a passenger will have the same meaning as that in given by 46 U.S.C. 2101(21), which is generally a person that pays to be on the vessel. Finally, a vessel that is used solely for competition will not be considered a recreational vessel. A vessel will be a considered a recreational vessel if the boat builder intends that the customer will operate the boat consistent with the recreational-vessel definition. Relying on the boat builder's intent is necessary since manufacturers need to establish a vessel's classification before it is sold, whereas the Coast Guard definitions apply at the time of use. The final definition therefore relies on the intent of the boat builder to establish that the vessel will be used consistent with the above criteria. If a boat builder manufactures a vessel for a customer who intends to use the vessel for recreational purposes, we will always consider that a recreational vessel regardless of how the owner (or a subsequent owners) actually uses it. To be able to verify that boat buyers don't abuse this provision, we would need to have some way of verifying the validity of the vessel manufacturer's original intent, for example, with written assurance from the buyer. We are not finalizing such a requirement in this final rule, but intend to address it when we propose emission standards for recreational marine engines. F. Engine Dressing Exemption Some companies produce marine engines by marinizing new, land-based engines and modifying them for installation on a marine vessel. This can be done in a way that does not affect emissions. For example, the modifications may consist of adding mounting hardware and a generator or reduction gears for propulsion. It can also involve installing a new marine cooling system that meets original manufacturer specifications and duplicates the cooling characteristics of the land-based engine, but with a different cooling medium (i.e., water). This is similar to the process of buying certified land-based engines to make a generator or other equipment. This simplified approach of producing an engine can be described as dressing an engine for a particular application. Because the modified land-based engines are subsequently used on a marine vessel, however, these modified engines will be considered marine diesel engines, which then fall under the requirements in this final rule. The final rule exempts engines from the marine certification requirements if [[Page 73304]] the marinizing company meets the following conditions. (i) The engine being dressed, (the ``base'' engine) must be a heavy-duty highway, land-based nonroad, or locomotive engine, certified pursuant to 40 CFR Part 86, 40 CFR Part 89, or 40 CFR Part 92. The base engine must be certified to the standards that apply at the time the base engine manufacturer completes assembly of the engine. We don't allow stockpiling of uncertified engines. (ii) The dressing process must not involve any changes that can reasonably be expected to increase engine emissions. This includes a requirement that engine cooling and aftercooling systems stay within the ranges specified by the original engine manufacturer. (iii) The original emissions-related label must remain on the engine. (iv) The dressing company must report annually to us the models that are exempt under this provision. (v) The engine model must not be primarily for marine application. The goal of our engine dressing provisions is to eliminate the burden of certification and other compliance requirements where we have confidence that engines already certified to comparable standards from other programs will meet marine engine emission standards. Moreover, the certificate holder for the base engine continues to be liable, under the terms of the original certification, for the emissions performance of the dressed engine. We will nevertheless require, as we proposed, that a company certify dressed engines under 40 CFR Part 94 if the majority of engines produced are for marine application. This prevents a company taking advantage of the engine dressing exemption to produce marine diesel engines under, for example, a land-based nonroad diesel certificate, even though the engine might be used almost exclusively for marine application. Companies that produce engines qualifying for the engine dressing exemption will be exempt from the certification requirements and prohibited acts of 40 CFR Part 94. Minimal reporting and labeling requirements apply to these engines, as described below. Companies that produce marine versions of their base engines may qualify for the engine dressing exemption if they meet the established criteria. Base engine manufacturers utilizing the dressing exemption must submit marine-specific emission data on their dressed marine engines. In addition, we may request marine-specific data from the original engine manufacturer if another company is dressing their engines for marine application. We would use this data for oversight to determine the validity of the exemption. Except for this testing responsibility, the discussion of engine dressing applies equally whether an original engine manufacturer or a post-manufacture marinizer produces the marine engine. Heavy-duty highway engines are certified to a much different test cycle, which has in the past prevented us from accepting a highway engine certificate for nonroad applications for certification. Now that we are proposing to revise the standards and test procedures for these engines to control steady-state emissions, we can be more confident that they will adequately control emissions in a marine application. Thus, any certified heavy-duty highway, nonroad, or locomotive engine will be eligible for the dressing exemption. Engine manufacturers might use averaging, banking, or trading to produce land-based engines that are certified with emission levels exceeding the comparable marine emission standard. These engines could not meet the proposed engine dressing criteria. Unlike an original engine manufacturer, a post-manufacture marinizer has no control over this. We have therefore simplified the criteria to say that any engine must be certified to land-based standards that apply to that engine at the time the dressing company buys the engine. This is true regardless of whether the original engine was certified using emission credits under the ABT program. Similarly, our NTE provisions do not apply to dressed engines, unless NTE provisions are in place for the certified base engine. Engines that qualify as dressed engines are exempt from the marine emission standards. We therefore will not treat these as regulated marine engines. If we find that a company with an engine dressing exemption does not, in fact, meet the criteria spelled out in the regulations, the engines are not exempt and we may pursue enforcement for selling uncertified marine engines and/or tampering with certified engines. We are including in the final rule a requirement that dressing companies put a label on each exempted engine stating the name of the dressing company and the fact that the engine was marinized without affecting emission controls. This will make clear that the engine is acceptable for use in a marine vessel. In addition, dressing companies will need to give us minimal notification that they are modifying certified engines. This can be done once annually for a company's whole range of dressed marine engines. In addition to the labeling requirement, we encourage engine manufacturers to inform companies dressing their engines of these requirements. This will not only aid us in educating affected companies, it may help protect engine manufacturers from exposure to liability if their engines are ever found in a marine vessel without proper documentation. G. Foreign-Trade Exemption Oceangoing vessels with Category 3 propulsion engines typically have additional Category 1 and Category 2 engines onboard. We are adopting a provision that will allow owners of qualifying vessels to obtain an exemption from the national emission requirements for Category 1 and Category 2 engines that are installed on any U.S.- flagged vessel engaged in foreign trade or other overseas operation. We expect that ship owners will buy MARPOL-compliant engines because ships that travel to foreign ports will eventually need to demonstrate compliance with the Annex VI NOX limits to get an International Air Pollution Prevention Certificate for their vessels. While the proposed regulation text inadvertently limited this to auxiliary engines, the exemption applies equally to propulsion engines that meet the criteria. This provision will allow all engines on qualifying vessels to meet solely the international requirements. This exemption will go into effect at the same time as the implementation of the domestic emission standards for these engines. A vessel owner can obtain this exemption if it can be demonstrated to the Administrator's satisfaction that the vessel: (a) Will spend less than 25 percent of its total engine operation time within 320 nautical kilometers (200 nautical miles) of U.S. territory; or (b) will not operate between two United States ports, as evidenced by the vessel having solely a registry endorsement from the Coast Guard. The second qualifying criterion was described in the preamble to the proposed rule, but was inadvertantly omitted from the proposed regulation text. For installation of new or replacement engines on used vessels, the vessel's service record can be used to show where the vessel will be operated. For a new vessel, however, this determination must be made before it is placed into service, so it will not be possible to use the vessel's service record to make the determination described in (a). Instead, application to the Administrator for this exemption [[Page 73305]] can rely on the vessel owner's business plans for the vessel, as well as on records from other vessels under the owner's control, any features of the vessel that will tend to limit its use within the specified area, or such other information as the Administrator shall request. Similarly, the determination described in (b) will rely on a good faith statement by the owner that the vessel is intended to hold only a registry endorsement. It should be noted, however, that if we learn that a vessel owner subsequently receives a coastwise or other registration that would allow the vessel to operate between two U.S. ports, we may review the validity of the exemption. This would also have a bearing on future requests for an exemption. Category 1 and 2 engines that are exempt under this provision must be labeled to indicate that they have been certified only to the MARPOL Annex VI NOX curve limits and that they are for use solely on vessels that meet the above criteria. H. National Security Exemption With regard to the national security exemption, we are applying an approach similar to that in our existing land-based nonroad and gasoline marine programs (40 CFR 89.908 and 40 CFR 91.1008). Under this exemption, only marine engines used in vessels that exhibit substantial features ordinarily associated with military combat, such as armor, permanently affixed weaponry, specialized electronic warfare systems, unique stealth performance requirements, and/or unique combat maneuverability requirements and which will be owned and/or used by an agency of the federal government with the responsibility for national defense, will be exempt from the regulations in this subpart for reasons of national security. No request for an exemption is necessary for these engines. There may be situations in which an exemption from the emission controls is necessary for other vessels used for national security. Manufacturers may in these cases request a special national security exemption. A manufacturer will need to justify this request and get an agency of the federal government charged with responsibility for national defense to endorse it. We understand that the Navy, and all other branches of the government, will do their best to comply with the emission standards finalized in this final rule. I. Competition Exemption We are addressing competition engines, also referred to as racing engines, in two ways. First, engines produced by the manufacturer specifically for competition are exempt from the requirements of the rule. The Clean Air Act does not consider these to be nonroad engines, so none of the requirements of 40 CFR 94 apply, except for a requirement to label the engines. Manufacturers need only get our approval to sell engines under this exemption. Second, someone can modify a certified engine for competition purposes. Normally we would prohibit making such changes to certified engines under the anti- tampering provisions. The final rule, however, exempts these engines from the anti-tampering provisions for engines that are used ``solely for competition.'' Engines or vessels used for amateur or occasional competition do not meet the competition exemption criteria. Our review of a request from a manufacturer should prevent abuse of this provision for engines that are originally produced for competition. There is, however, no approval step for someone who modifies engines for competition, so we will more clearly spell out criteria indicating whether the engine will be used solely for competition. Specifically, owners meeting all the following criteria will qualify for the competition exemption: --The engine and vessel are designed and built to be used solely for competition. For example, we would not expect engines used solely for competition to have a lifetime until rebuild greater than about 10 hours. --The vessel is registered with a nationally recognized organization that sanctions professional competitive events. In addition, once an engine is modified for competition, the engine is no longer certified to the requirements of 40 CFR 94 and must therefore not be used in an application where we would require a certified engine. J. Other Exemptions We are extending other nonroad exemptions to marine diesel engines. These include the testing exemption, the manufacturer-owned exemption, the display exemption, and the export exemption. Remember that these exemptions are not necessarily automatic, and that the engine or vessel manufacturer, or ultimate engine owner, may need to apply for them. As part of the approval, we may require labels on exempted engines. III. Engine Categories The engines that are the subject of this action are very diverse in terms of physical size, engine technology, control hardware, and costs associated with reducing emissions. These differences make it difficult to design one set of emission requirements for all marine diesel engines. For example, numerical emission limits that may be reasonable and feasible for a 37 kW engine used on an 5.5-meter (18-foot) boat may not be reasonable or feasible for a 1,500 kW engine installed on a tug or a 20,000 kW engine installed on an ocean-going container ship. Similarly, numerical emission limits appropriate for very large engines may be not be appropriately stringent for smaller engines, requiring little or no emission reduction. Consequently, it is necessary to divide marine diesel engines into categories for the purposes of applying emission limits and duty cycles. We are adopting the categorization scheme summarized in Table 1. This relies predominantly on per-cylinder displacement to distinguish between categories of engines. This has the advantage that per-cylinder displacement is an engine characteristic that is not easily changed and is constant for a given engine model or series of engine models. Table 1.--Engine Category Definitions ------------------------------------------------------------------------ Category Displacement per cylinder ------------------------------------------------------------------------ 1................................. disp. 37 kW). 2................................. 5 disp. 30 liters. ------------------------------------------------------------------------ We define Category 1 engines as those marine diesel engines that are rated above 37 kW and have a per-cylinder displacement of less than 5 liters. This definition groups together the class of marine engines that are serially produced and generally derived from land-based nonroad configurations or use the same emission control technologies. These engines are typically used as propulsion engines on relatively small commercial vessels (fishing vessels, tugboats, crewboats, etc.) They are also used as auxiliary engines on vessels of all sizes and applications. Category 2 engines are those marine diesel engines with per-cylinder displacement at or above 5 liters and up to 30 liters. These are the largest engines that are widely used as propulsion engines in harbor and coastal vessels in U.S. waters. These engines also provide auxiliary power on very large vessels. Many of these engines are of similar size and configuration as locomotive engines or use comparable emission control technologies. We define Category 3 [[Page 73306]] engines as those marine diesel engines with a displacement at or above 30 liters per cylinder. These are very large high-power engines that are used almost exclusively for propulsion on vessels engaged in international trade. We further divide Category 1 engines into several subgroups. These subgroups are similar to the land-based nonroad diesel engine subgroups, except that the subgroups are based on per-cylinder displacement rather than on engine power. The final rule also divides Category 2 into subgroups, with gradually increasing emission standards for larger engines. Engines between 5 and 15 L/cyl are generally derived from locomotive engines and have corresponding emission standards. The current range of marine engine models over 15 L/cyl have design constraints that limit their ability to control emissions. Since engines under 15 L/cyl may not currently be capable of providing adequate propulsion power for all vessels in this size range, we believe the best approach is to accommodate the technology constraints of these engines by setting emission standards less stringent than for locomotive-derived engines. These standards reflect the reduced capability of controlling emissions from engines designed to operate on heavy fuel (and the need to reduce emissions from a higher baseline level). Engines models between 15 and 20 L/cyl in particular are in a somewhat transitional category. These engines are sometimes used in harbor and inland river applications alongside locomotive-derived engines. Higher-power models are used in coastal and open-sea operations alongside engines with much larger per-cylinder displacement. The final rule separates engines between 15 and 20 L/cyl into two subgroups, those with a rated power less than 3300 kW and those with a rated power 3300 kW or greater. Locomotive engine manufacturers are developing new locomotive engines between 15 and 20 L/cyl (up to about 4500 kW), but it is not clear if these engines will be made available for marine application. In the Tier 2 time frame, we therefore believe it is appropriate to set emission standards based on what is achievable for the engines currently available. If it appears that these larger locomotive engines will become available as marine engines in the future, we would need to reconsider this approach to take into account the emission-control capabilities of these engines. There are several marine engine models available worldwide with per-cylinder displacement between 20 and 30 liters. Very few of these engines are currently installed in vessels that are flagged and used in the United States. In the final rule we expand Category 2 to include engines up to 30 L/cyl. We subdivide the category with graduated emission standards for 20 to 25 L/cyl and 25 to 30 L/cyl engines reflecting the emission control capability of those engines. This should prevent high-emission engines from displacing smaller engines in common applications. IV. Emission Standards and Related Provisions This section describes the emission standards for commercial marine diesel engines at or above 37 kW. It also describes provisions that will ensure that engines comply with the emission limits across all engine speed and load combinations, throughout their useful life. We discuss in this section requirements related to test procedures, fuel specifications, certification, and compliance. A. Standards and Dates 1. MARPOL Annex VI MARPOL Annex VI specifies that any diesel engine over 130 kW installed on a vessel constructed on or after January 1, 2000 and to any engine that undergoes a major conversion after that date must comply with the Annex VI NOX limits.3 These NOX requirements, listed in Table 2, are intended to apply to all vessels in a country's fleet. However, according to Regulation 13(1)(b)(ii) of the Annex, a country has the option of setting alternative NOX control measures for engines on vessels that are not operated internationally. This final rule is intended to be an alternative NOX control measure under the Annex for engines on US-flagged vessels that are not operated internationally. --------------------------------------------------------------------------- \3\ The Annex VI emission limits are not enforceable until the annex goes into effect: 12 months after it is ratified by 15 countries representing at least 50 percent of the gross tonnage of the world's merchant shipping. --------------------------------------------------------------------------- In this final rule, we are not adopting the MARPOL Annex VI NOX emission limits under U.S. law. However, we are encouraging engine manufacturers to make Annex VI compliant engines available and ship owners to purchase and install them on all vessels constructed on or after January 1, 2000. Because this voluntary emission control program is the first set of standards for marine diesel engines at or above 37 kW in the U.S., we sometimes refer to them as Tier 1 standards. We are also not finalizing emission limits for Category 3 engines in this rule, and the voluntary MARPOL Annex VI NOX limits will be the sole emission control applicable to those engines. To encourage vessel owners to purchase MARPOL Annex VI compliant engines prior to the date the Annex goes into force for the United States, we have developed a voluntary certification program that will allow engine manufacturers to obtain a Statement of Voluntary Compliance to the MARPOL Annex VI NOX limits. Owners of vessels that are not operated internationally but that will be subject to the MARPOL survey requirements after Annex VI goes into effect for the United States should be aware that they may be required to demonstrate compliance with the Annex VI NOX limits when they apply for their International Air Pollution Prevention (IAPP) certificate. Owners of vessels that are operated internationally may also be required to demonstrate compliance with the MARPOL limits after the Annex goes into effect, both because they will be required to have an IAPP and because they may be subject to port state controls. For all of these reasons, we expect ship owners to begin purchasing compliant engines for installation on ships constructed on or after January 1, 2000, and to bring engines into compliance when they undergo a major conversion after that date. Ship owners who fail to comply with the MARPOL VI NOX requirements may face compliance and liability problems after U.S. ratification or the Annex goes into force internationally. Bringing engines into compliance at that time may involve retrofitting or replacing noncomplying engines. Ship owners may also be required to remove their vessels from service while these issues are resolved. Table 2.--MARPOL Annex VI Emission Limits ------------------------------------------------------------------------ Engine Speed, rpm NOX (g/kW-hr) ------------------------------------------------------------------------ n n (-0.2) n 2000......................... 9.8 ------------------------------------------------------------------------ This voluntary approach to the MARPOL Annex VI emission limits depends on the assumption that manufacturers will produce MARPOL- compliant engines before the emission limits go into effect internationally. Engine manufacturers can use the voluntary certification program mentioned above to obtain a Statement of Voluntary Compliance to the MARPOL NOX limits. If, however, manufacturers continue to sell engines [[Page 73307]] with emissions above MARPOL levels or if the Annex is not ratified by the United States or does not go into effect internationally, we will revisit the need to adopt these emission limits under the Clean Air Act. Finally, note that after the standards finalized in this final rule go into effect, engines meeting these national standards will also meet the less stringent MARPOL Annex VI NOX limits and separate emission testing will not be required. However, engines intended for use on foreign-trade vessels or for sale in foreign countries will still be required to comply with the administrative, recordkeeping, and survey requirements that will be mandated when MARPOL Annex VI goes into force for the United States. 2. Tier 2 The Clean Air Act provides guidance for setting emission standards for nonroad engines in section 213(a)(3), instructing us to set standards that achieve the greatest degree of emission reduction achievable through the application of technology the Administrator determines will be available for the engines or vehicles to which such standards apply, giving appropriate consideration to the cost of applying such technology within the period of time available to manufacturers and to noise, energy, and safety factors associated with the application of such technology. As described in the Final Regulatory Impact Assessment, manufacturers of marine diesel engines typically start with a partially or fully completed land-based nonroad diesel engine or, in some cases, a highway diesel engine, and adapt it for use in the marine environment. The emission standards that apply to land-based nonroad diesel engines therefore serve as the primary basis for the standards that apply to marine diesel engines. The land-based nonroad diesel engine standards in turn were designed to expand the use of highway engine technologies. The marine diesel new emission standards, and the underlying technology assumptions, are similarly derived from highway engine emission standards and technologies. Table 3 contains the emission standards for commercial marine diesel engines at or above 37 kW. We are setting a standard of 7.2 g/ kW-hr NOX+HC for most Category 1 engines. For engines under 0.9 liters per cylinder, a 7.5 g/kW-hr applies to correspond with the standard for land-based nonroad engines. The PM standards vary by engine size, as shown in Table 3; these values generally match the limits that apply to the counterpart land-based engines. The CO emission standard is 5 g/kW-hr for all engines. New Category 1 engines under 0.9 liters per cylinder produced starting in 2005 must comply with these standards. For Category 1 engines over 2.5 liters per cylinder, the starting date is 2007. For the rest of Category 1, these standards apply to new engines produced beginning in 2004. For Category 2 engines between 5 and 15 liters per cylinder, the NOX+HC and PM standards are 7.8 g/kW-hr and 0.27 g/kW-hr, respectively. Bigger Category 2 engines are subject to graduated NOX+HC standards and a PM standard of 0.5 g/kW-hr, as shown in Table 3. These standards apply to new engines produced beginning in 2007. These dates refer to the point at which the manufacturer concludes the final assembly of the engine. This also applies to remanufactured and imported engines that qualify as new marine engines. In addition, an engine can become new without being manufactured, remanufactured, or imported, if it is an engine that has been placed into service in non- marine application before being installed on a vessel. In this case, these dates refer to the point at which the engine is installed on a vessel. Table 3.--Final Tier 2 Emissions Standards and Dates ---------------------------------------------------------------------------------------------------------------- Starting NOX+THC PM (g/kW- CO (g/kW- Category Displacement (liters/cylinder) Date (g/kW-hr) hr) hr) ---------------------------------------------------------------------------------------------------------------- 1............................ power 37 kW disp. disp. disp. disp. disp. disp. disp. 3300 kW. 20.0 disp. disp. X from diesel engines. The combination of these two factors makes the methane fraction a mathematically insignificant portion of the HC+NOX emission standard. C. Crankcase Emissions We are requiring that all naturally aspirated marine diesel engines have closed crankcases, where blowby gases are routed into the engine intake air stream. For turbocharged engines, manufacturers may have a closed crankcase or route blowby gases directly to the atmosphere. If manufacturers do not have a closed crankcase, they must make it possible to readily route blowby gases into the exhaust stream or otherwise measure them for an in-use test. This approach is similar to the approach we adopted for locomotives. The purpose of this requirement is to provide manufacturers the incentive to reduce crankcase emissions to the maximum extent possible, or eliminate them altogether. [[Page 73308]] D. Smoke Requirements We are not setting smoke requirements for marine diesel engines. Manufacturers have stated that many of these engines, though currently unregulated, are manufactured with smoke limiting controls at the request of the engine purchasers. Users seek low smoke emissions, both because they dislike the associated residue on decks and because they can be subject to penalties in ports that have smoke emission requirements. In many cases, marine engine exhaust gases are mixed with water prior to being released. This practice reduces the significance of smoke emissions, since smoke becomes significantly less visible when mixed with water. Moreover, we believe that the new PM standards will have the effect of further limiting smoke emissions. E. Alternative Fuels The new emission standards apply to marine diesel engines, without regard to the type of fuel they use. This is consistent with nonroad diesel engine regulations of 40 CFR Part 89. It is also generally consistent with the locomotive regulations; however, the locomotive regulations apply even more broadly because they also include spark- ignited engines. We are aware that there are currently very few alternative-fueled marine engines, but we believe that it is important to make clear to manufacturers what standards will apply if they produce these engines. Heavy fuel (or residual fuel) is fundamentally different than the distillate fuel used for testing and most in-use operation. We therefore treat it as an alternative fuel. If manufacturers produce their engines with sufficient hardware to be capable of operating on heavy fuel, they should submit test data with their application for certification showing that they meet the emission standards using both distillate and heavy fuel. The Clean Air Act prohibits removing or rendering inoperative elements of design in regulated engines. If operators add fuel heating and filtering equipment and other hardware to make a certified engine capable of operating on heavy fuel, we would likely consider that to be making the emission control system inoperative. We are requiring a statement on the engine label for engines that can be modified to operate on heavy fuel to discourage operators from making this modification. To properly address the range of possible alternative-fuel engines, it was necessary to modify the form of the HC standard. In the regulation of highway vehicles and engines, we determined that it is not appropriate to apply total hydrocarbon standards to engines fueled with natural gas, which is primarily methane (59 FR 48472, September 21, 1994). Rather, nonmethane hydrocarbon (NMHC) standards should apply to natural gas engines. We are therefore setting NMHC+NOX standards for diesel-cycle marine engines that operate on natural gas. The same numerical standards apply to both types of engines. For example, an emission standard of 7.2 g/kW-hr THC+THC that applies to diesel-fueled engines becomes 7.2 g/kW-hr NMHC+NOX for natural gas engines. Similarly, reported emissions from alcohol-fueled engines are on a basis of total HC-equivalent (THCE). THC-equivalent emissions are calculated from the oxygenated organic components and non-oxygenated organic components of the exhaust, summed together based on the amount of organic carbon present in the exhaust. Refer to the April 11, 1989 final rule for more information regarding the determination of HC-equivalence (54 FR 14426). These approaches will minimize variations in stringency for different fuel types. F. Test Procedures In this final rule we rely on previously established test procedures for land-based diesel engines. Specifically, we require that Category 1 marine engines be tested using the land-based nonroad procedures of 40 CFR Part 89, and that Category 2 marine engines be tested using the locomotive test procedures of 40 CFR Part 92. There are two reasons for using this approach. First, most manufacturers of marine diesel engines also manufacture land-based engines and will be equipped to test engines using these test procedures. Second, marine diesel engines are fundamentally similar to their land-based counterparts, and it is therefore appropriate to measure their emissions in the same way. In addition, the test procedures found in 40 CFR Parts 89 and 92 include flexibility for testing alternative-fuel engines. Some changes are nevertheless necessary. Manufacturers should be aware that the test procedures in MARPOL Annex VI are not equivalent to the test procedures described here and in Sec. 94.103 and Sec. 94.104. We are including the modifications to these test procedures as described below. 1. Duty Cycles Testing an engine for emissions typically consists of exercising it over a prescribed duty cycle of speeds and loads, typically using an engine dynamometer. The duty cycle used to measure emissions for determining compliance with emission standards during the certification process is intended to represent operation in the field. The nature of that duty cycle is critical in evaluating the likely emissions performance of engines designed to those standards. To address operational differences between engines, we are specifying different duty cycles for different types of marine diesel propulsion engines. These are summarized here and described further in the Final RIA. Propulsion engines that operate on a fixed-pitch propeller curve must be certified using the International Standards Organization (ISO) E3 duty cycle. This is a four-mode steady-state cycle developed to represent in-use operation of commercial marine diesel engines. The four modes lie on an average propeller curve based on in-use measurements. Fixed-speed marine propulsion engines with variable-pitch or electrically coupled propellers will be certified on the ISO E2 duty cycle. This duty cycle is also a four-mode steady-state cycle. It uses the same power and weighting factors as the E3 cycle, but the engine is operated in each mode at rated speed. Constant-speed auxiliary engines must be certified to the ISO D2 duty cycle. Variable-speed auxiliary engines must be certified to the ISO C1 duty cycle. These duty cycles are consistent with the requirements for land-based nonroad diesel engines. There is another class of propulsion engines that run at variable- speed and use a variable-pitched propeller. These engines are designed to operate near the power curve for the engine to maximize fuel efficiency. In general, these engines will operate at a constant speed near peak torque except when maneuvering in port, where they operate along the lug curve. Because of the expense of the system, variable- speed engines are rarely used with variable-pitched propellers. ISO does not have a test duty cycle specifically designed for these engines. While we proposed to use the E2 duty cycle for these engines, we have since learned the the in-use operation, especially in port areas, is best represented by the C1 duty cycle. This is consistent with MARPOL Annex VI. For larger marine engines, conventional emission testing on a dynamometer becomes more difficult because of the size of the engine. Often engine mock ups are used for the development of these engines where a single block is used for many years and only the power assembly is changed out. For Category 2 engines, certification [[Page 73309]] tests may be performed on these engine mock-ups, provided that their configuration is the same as that of the production engines. To obtain approval for single-cylinder testing the manufacturer must rely on the provision for special test procedures (40 CFR 94.207). This requires a demonstration ``that it is equivalent to the specified procedures.'' We will address the concern that single-cylinder testing may not be appropriate in some cases by evaluation of the individual situations under Sec. 94.27. 2. In-Use Testing Before manufacturers produce engines, they certify that their engines will meet all the standards that apply, including the standards based on testing with the specified duty cycles and based on the broader Not-to-Exceed standards, throughout the useful life of the engines. We are interested in testing in-use engines to confirm that they are emitting within these standards. For any in-use testing for purposes of section 207(c), we would depend on receiving the permission of the owner to conduct the testing on that vessel. We could do this testing one of two ways. First, we could remove the engine from the vessel and test it on a laboratory dynamometer, much like the manufacturer's certification testing. This would be the most direct way to determine if an engine continues to meet the certification standards after the engine has been installed on a vessel. However, the cost of removing and testing engines this way would be extremely high and a ship operator may be unwilling to allow us to remove the engine from service for emission testing. Onboard testing is a second type of in-use emission measurement. Being able to conduct emission testing onboard the vessel can make in- use testing more accessible since onboard testing eliminates the need for engine removal and minimizes the disruption of normal vessel operations. The goal is for us to accurately assess the emission performance of these engines when they are in service. We may use onboard emission testing to identify and hold manufacturers responsible for noncompliance with the emission standards (including the Not-to- Exceed limits). The Clean Air Act authorizes us to pursue an emission- related recall if we determine that a substantial number of engines, when properly maintained and used, do not conform to the regulations throughout their useful life. Noncompliance relates to meeting the emissions levels under the associated test procedures, as defined in the regulations. For example, the test procedure for the NTE emission standard calls for nominally steady-state operation within a specified zone of engine operation. In-use testing results may provide credible and probative information relevant to making a determination of compliance. We also recognize that the level of accuracy and precision of in-use testing is one of the key factors to take into account when making any such evaluation or determination of compliance. We believe such systems and procedures would provide a significant benefit to both the agency and the industry. For marine diesel engines that expel exhaust gases underwater or mix exhaust gases with water, we require that manufacturers equip the engines with an exhaust sample port, where a probe can be inserted for in-use emission tests. It is important that the location of this port allows a well mixed and representative sample of the exhaust. The purpose of this provision is to simplify in-use testing. 3. Test Fuel The test procedure, including the test fuel, must adequately represent in-use operation to ensure achievement of emission reductions in use. To facilitate the testing process, we generally define a range of specifications for a test fuel that is intended to represent in-use fuels. Marine diesel engines need to comply with emission standards on any fuel falling within the range of the test fuel specifications, with one modification described below. This section describes the test fuel we are specifying for Category 1 and Category 2 engines (see also 40 CFR 94.108). This test fuel is for all testing associated with the standards in this final rule, including certification, production-line, in-use, and NTE testing. We are applying the recently finalized test fuel specifications for land-based nonroad diesel engines to marine diesel engine testing, with a modification to the sulfur specification as described below. We believe that largely adopting the nonroad fuel will simplify development and certification burdens for marine engines that are developed from land-based counterparts. The test fuel for marine diesel engine testing has a sulfur specification range of 0.03 to 0.80 weight- percent (wt%), which covers the range of sulfur levels observed for most in-use fuels. Manufacturers are generally responsible for ensuring compliance with the emission standards using any fuel within this range. Thus, they will be able to harmonize their marine test fuel with U.S. highway (4 Using ASTM specification D 2069 as a guide, we considered choosing an upper limit of 1.5 wt% sulfur. However, we are setting an upper limit on sulfur content of 0.8 wt%, because the available data show that most in-use marine fuels have sulfur levels lower than this. Moreover, it is not clear that PM emission could accurately be measured using the specified testing procedures, or if the correction factor would be accurate, if fuels with a sulfur content higher than 0.8 wt% are used.5 --------------------------------------------------------------------------- \4\ ``In-Use Marine Diesel Fuel,'' Final Report by ICF Consulting Group for EPA, August 1999 (Docket A-97-50, document IV- A-4). \5\ ``Exhaust Gas Emission Measurements: A Contribution to a Realistic Approach,'' D. Bastenhof, dieselMAC, May, 1995. --------------------------------------------------------------------------- We determined that the new PM standards are feasible based largely on the feasibility of the corresponding standards for land-based nonroad and locomotive applications, which have a 0.4 wt% sulfur upper limit for the test fuel. Since PM emissions are somewhat fuel sulfur- dependent, we do not believe it is appropriate to require compliance with the PM standards using fuel with a sulfur content above 0.4 wt%. We are therefore allowing a correction of PM emissions for testing with a fuel sulfur content greater than 0.4 wt%. Thus, the measured PM emissions for any test performed using fuel with a sulfur content of greater than 0.4 wt% may be corrected to the level that would have been measured if the fuel had a sulfur content of 0.4 wt%. This does not apply to systems using aftertreatment technologies, since the correction equation is not valid for those engines. This correction method is the same as that used for land-based nonroad engine testing to Tier 1 emission standards. Moreover, in the nonroad rulemaking, for engines rated over 37 kW certified to Tier 2 standards, we agreed to use only fuel with sulfur levels up to 0.2 wt% for our testing. Because Category 1 marine engines are mostly derived from land-based nonroad engines, we believe it is appropriate to extend this provision to Category 1 marine engines for the period during which they rely on land-based engines operating at Tier 2 emission [[Page 73310]] levels. In the future effort to set marine Tier 3 emission levels, we will revisit the appropriate range of fuel properties for in-use testing in the context of the emission standards we set at that time. 4. Adjustable Parameters Marine diesel engines are often designed with adjustable components to allow the engine to be adjusted for maximum efficiency when used in a particular application. This practice simplifies marine diesel engine production, since the same basic engine can be used in many applications. We recognize the need for this practice, but are also concerned about varying emission levels across the range of adjustment. We are therefore generally requiring that engines meet the emission standards when operated anywhere within the adjustable range (see 40 CFR 94.205). In most cases, this means engine manufacturers will be required to design their engines to prevent adjustments outside the specified range to ensure that engines are always operated within the specified range of adjustment. However, consistent with the approach used in the locomotive rule, we may allow manufacturers to specify in their applications for certification a narrower range of adjustment for these components across which the engine is certified to comply with the applicable emission standards, and demonstrate compliance across that range. For these engines, this allowance means that a manufacturer would specify a range of fuel injection timing, for example, over which the engine complies with the emission standards. This range could be designed to account for differences in fuel quality. Operators are then prohibited by the anti-tampering provisions from adjusting engines outside of this range. BILLING CODE 6560-50-P [[Page 73311]] [GRAPHIC] [TIFF OMITTED] TR29DE99.000 BILLING CODE 6560-80-C [[Page 73312]] 5. Determination of Maximum Test Speed The determination of maximum test speed, where speed is the angular velocity of an engine's crankshaft (usually expressed in revolutions per minute, or rpm) is an important aspect of the duty cycles and ``not-to-exceed'' (NTE) zones described in this document (see also 40 CFR 94.107). We define the maximum test speed of an engine as the single point on an engine's maximum-power versus speed curve that lies farthest away from the zero-power, zero-speed point on a normalized maximum-power versus speed plot. In other words, consider straight lines drawn between the origin (speed = 0, load = 0) and each point on an engine's maximum-power versus speed curve (see Figure 1). Maximum test speed is defined as that point where the length of this line reaches its maximum value. Examples of results from this calculation are illustrated by circles superimposed on four maximum-power versus speed curves in Figure 1. G. Not-to-Exceed Standards and Related Requirements Our goal is for engines to control emissions over the broad range of in-use speed and load combinations that can occur on a vessel, achieving real-world emission reductions, rather than just controlling emissions under certain laboratory conditions. An important tool for achieving this goal is an in-use program with an objective standard and an easily implemented test procedure. Historically, we have taken the approach of setting a numerical standard on a specified test procedure and relying on the prohibition of defeat devices to ensure in-use control over a broad range of operation not included in the test procedure.6 --------------------------------------------------------------------------- \6\ EPA letter from Jane Armstrong and Bruce Buckheit, October 15, 1998. --------------------------------------------------------------------------- No single test procedure can cover all real world applications, operations, or conditions. Yet to ensure that emission standards provide the intended benefits in use, we must have a reasonable expectation that emissions under real world conditions reflect those measured on the test procedure. The defeat device prohibition is designed to ensure that emissions controls are employed during real world operation and not just under laboratory or test procedure conditions. However, the defeat device prohibition is not a quantified standard and does not have an associated test procedure, so it does not have the clear objectivity and ready enforceability of a numerical standard and test procedure. As a result, the current focus on a standardized test procedure makes it harder to ensure that engines will operate with the same level of control in the real world as in the test cell. Because the E3 duty cycle uses only four modes on an average propeller curve to characterize marine diesel engine operation, we are concerned that an engine designed to the duty cycle would not necessarily perform the same way over the range of speed and load combinations seen on a vessel. The E3 duty cycle is based on an average propeller curve, but a propulsion marine engine may never be fitted with an ``average propeller.'' For instance, a light vessel with a planing hull may operate at lower torques than average while the same engine operated on a heavy vessel with a deep displacement hull may operate at higher torques than average. This can largely be a function of how well the propeller is matched to the engine and vessel. A planing hull vessel can operate at high torques at low speed prior to planing. To ensure that emissions from propulsion engines are controlled over the full range of speed and load combinations seen on vessels, we are establishing a zone under the engine's power curve where the engine may not exceed a specified emission standard, for any of the regulated pollutants, under the kind of operation that could reasonably be expected to be seen in the real world. In addition, the whole range of real ambient conditions is included in this ``not-to-exceed'' (NTE) zone testing. The NTE zone, limit, and ambient conditions are described below. At the time of certification, manufacturers would have to submit a statement that its engines will comply with these requirements under all conditions that may reasonably be expected to occur in normal vehicle operation and use. The manufacturer must provide a detailed description of all testing, engineering analysis, and other information that forms the basis for the statement. This certification statement must be based on testing and/or research reasonably necessary to support such a statement and on good engineering judgment. This supporting information would have to be submitted to us at certification if we request it; manufacturers would not necessarily be required to submit NTE test data for compliance during certification. We believe there are significant advantages to taking this sort of approach. The test procedure is very flexible so it can represent many in-use speed and load combinations and ambient conditions. Therefore, the NTE approach takes all of the benefits of a numerical standard and test procedure and expands it to cover a broad range of conditions. Also, laboratory testing makes it harder to perform in-use testing since either the engines would have to be removed from the vessel or care would have to be taken that laboratory-type conditions can be achieved on the vessel. With the NTE approach, in-use testing and compliance become much easier since emissions may be sampled during normal vessel use. Because this approach is objective, it makes enforcement easier and provides more certainty to the industry of what is expected in use versus over a fixed laboratory test procedure. Even with the NTE requirements, we believe it is still important to retain standards based on the steady-state duty cycles. This is the standard that we expect the certified engines to meet on average in use. The NTE testing is more focused on maximum emissions for segments of operation and should not require additional technology beyond what is used to meet the new emission standards. We believe that basing the emissions standards on a distinct cycle and using the NTE zone to ensure in-use control creates a comprehensive program. In addition, the steady-state duty cycles give a basis for calculating credits for use in the averaging, banking, and trading program. The NTE zone for marine diesel engines certified with the E3 duty cycle is illustrated in Figure 2 and is defined by the power curve of the engine up to rated speed. This zone is based on the range of conditions that a marine diesel propulsion engine typically experiences in use. For variable-speed engines with variable-pitch propellers certified to the C1 duty cycle, this zone is extended to include all torque points between the E3 power curve (between 63 percent and 100 percent speed) and the lug curve. These NTE zones are divided into two subzones above and below 45% of power at maximum test speed. [[Page 73313]] [GRAPHIC] [TIFF OMITTED] TR29DE99.001 BILLING CODE 6560-80-C [[Page 73314]] We are requiring a similar approach for engines certified using the constant-speed E2 duty cycle. In this case, the ``not-to-exceed'' zone is at the speed for which the engine is designed to operate for loads ranging from 25 to 100 percent of maximum load at that speed. Because a constant speed can actually operate over a small range of engine speeds in-use, the NTE zone includes this small range of speeds. This zone is also split into subzones above and below 45% of maximum power. More detail on the development of the boundaries and conditions associated with the NTE zones may be found in Chapter 3 of the Final RIA. We are requiring emissions caps for the NTE zones that represent a multiplier times the weighted test result used for certification for all of the regulated pollutants (HC+NOX, CO, and PM). This is consistent with the concept of a weighted modal emission test such as the steady-state tests included in this rule. The standard itself is intended to represent the average emissions under steady-state conditions. Since it is an average, some points can be higher, some lower, and the manufacturer will design to maximize performance and still meet the engine standard. The NTE limit is on top of this. It is designed to make sure that no part of the engine operation and that no application goes too far from the average level of control. For propulsion engines certified to the E3, C1, and E2 duty cycles, we believe that a not-to-exceed limit of 1.2 times the emissions standard (or FEL) is appropriate for the subzone at or above 45% of maximum test power. Below 45% of maximum test power, the cap is 1.5. Data presented in Chapter 3 of the Final RIA show that these limits are feasible for marine diesel engines, yet challenging because of variations in emissions at high versus low speeds and loads for some engines. This data show that the 1.2 cap is easily achievable at higher power, but may be more challenging at low powers. We set the cap at 1.5 below 45% of maximum test power for this reason. These subzones and caps apply equally to the Tier 2 emission standards for each regulated pollutant. Manufacturers may alternatively choose to comply with a cap of 1.25 over the whole zone, as we originally proposed. In any future tier of standards, we will review the appropriateness of tailoring the NTE approach to the unique characteristics of the individual exhaust constituents. When testing the engine within the NTE zone, only nominally steady- state operation will be considered. It is unlikely that transient operation is necessary under the NTE provisions to ensure that emissions reductions are achieved for commercial marine diesel engines. We designed the NTE zones to contain the operation near an assumed propeller curve that the steady-state cycles are intended to represent. We believe that the large majority of commercial marine operation in the NTE zone is steady-state. For planing vessels, we believe the transient operation as a vessel comes to plane generally is along the torque curve and would not be within the NTE zone. However, we don't have enough data to reliably say where under the torque curve marine engines operate during transient operation. Also, we do not believe the NTE zone should include areas where an engine may operate during transients but not in steady-state modes. We therefore don't believe that adding transient operation to the NTE requirements is necessary at this time. This would change if we saw evidence that in-use emissions increase due to insufficient emission control under transient operation. The NTE standards apply under any ambient air conditions. Within the following air temperature and humidity ranges, no corrections will be allowed to account for the effects of temperature or humidity on emissions: 13-30 deg.C for ambient air temperature and 7.1-10.7 grams water per kilogram of dry air for humidity. For engines drawing intake air from an enclosed engine room, however, the high end of the air temperature range is 35 deg.C (measured as intake air temperature). Ambient water temperature must be in the range of 5-27 deg.C during NTE testing. In addition, the engines must comply with the standards for the full range of test fuel specifications. These ranges for ambient conditions are discussed in more detail in Chapter 3 of the Final RIA. The defeat device provisions established for highway and nonroad engines apply to marine diesel engines in addition to the NTE requirements. A design in which an engine met the standard at the steady-state test points but was intentionally designed to approach the NTE limit everywhere else would be considered to be defeating the standard, except under limited circumstances discussed below. Electronic controls that recognize when the engine is being tested for emissions and adjust the emissions from the engine would be another example of a defeat device, regardless of the emissions performance of the engine. We are aware that marine diesel engines may not be able to meet the emissions limit under all conditions. Specifically, there are times when emission control must be compromised for startability or safety. We have excluded engine starting from NTE testing. In addition, our defeat device provisions accommodate the manufacturers potential need to allow emissions to increase to the extent necessary to protect the engine, such as responding to engine overheating. Manufacturers may ask us to approve an adjusted size or shape of the NTE zone for certain engines if they can show us that the engines will only operate within the revised NTE zone in normal use. This way, manufacturers can avoid testing their engines under operation they would rarely experience in a vessel. However, manufacturers are still responsible for any engine operation seen in normal use. They are also responsible for ensuring that their specified operation is indicative of real-world operation. In addition, if a manufacturer designs an engine for operation at speeds and loads outside of the NTE zone, the manufacturer is responsible for notifying us so their NTE zone can be modified appropriately to include this operation. We are not in this final rule setting an NTE limit for auxiliary marine engines. We do not yet have enough data on the operating characteristics of auxiliary engines to determine NTE zones and the associated limits for these engines. We expect to pursue similar requirements for land-based nonroad diesel engines. If we adopt NTE requirements for land-based nonroad diesel engines, we expect to extend those provisions to marine auxiliary engines at the same time. The NTE provisions will go into effect in the 2010 model year for post-manufacture marinizers and in the 2007 model year for other manufacturers for all commercial marine diesel engines. Manufacturers have agreed to collect and show us data on their engines operating in the NTE zone before the NTE standards take effect. We may also choose to require them to give us this data under Sec. 208 of the Clean Air Act. This delay in implementation of the NTE provisions for most Category 1 engines will provide reasonable lead time by allowing more time to collect data and assess engine operation in the NTE zone. For larger engines, the early banking program will provide manufacturers with an incentive to produce low-emission engines prior to 2007. This way, if these manufacturers chose to stagger their product line and produce low emission engines early, they will be able to add NTE-type testing to the testing they perform while calibrating their engines. [[Page 73315]] H. Voluntary Low-Emitting Engine Program In the final rule for land-based nonroad diesel engines, we included a program of voluntary standards for low-emitting engines, referring to these as ``Blue Sky Series'' engines (63 FR 56967, October 23, 1998). We are setting similar voluntary standards as part of this rulemaking. The program, if successful, will lead to the introduction and more widespread use of these low-emission technologies. The qualifying emission levels are listed in Table 4. The voluntary standards for the expanded subcategories above 15 L/cyl all follow the pattern of a 40 percent reduction relative to the mandatory standards. While the Blue Sky Series emission limits are voluntary, a manufacturer choosing to certify an engine under this program must meet all the provisions established to demonstrate compliance with these limits, including allowable maintenance, warranty, useful life, rebuild, and deterioration factor provisions. Table 4.--Voluntary Emission Standards (g/kW-hr) ------------------------------------------------------------------------ Engine size HC+NOX PM ------------------------------------------------------------------------ Power 37 kW, and displ.displ.displ.displ.displ.disp. disp. 3300 kW....................................... 20.0 L disp. disp. 7 We are also establishing provisions to ensure proper maintenance and repair of engines throughout their lifetime. The durability provisions, described below, are intended to ensure that engines continue to meet the applicable standards in use. The specific areas of the durability program focused on here are useful life, warranty periods, deterioration factors, and rebuilding requirements. Most of these provisions are carried over from the land-based or locomotive programs. --------------------------------------------------------------------------- \7\ This is different from the approach used in MARPOL Annex VI, according to which manufacturers must ensure their engines meet the emission limits at the time of certification but ship owners become responsible for their continued compliance with the limits. Under that program, compliance is verified during flag-state and port- state inspections. --------------------------------------------------------------------------- 1. Useful Life Useful life is the period during which the marine engine is required to meet the emission standards. For Category 1 engines, we are setting a minimum useful life of 10 years or 10,000 hours of operation. Specifically, the 10,000-hour requirement is based on an expected five- year period until the first time the engine is rebuilt, and an expected usage rate of 2,000 hours per year. For Category 2 engines, we are setting a minimum useful life of 10 years or 20,000 hours of operation. In this case, the 20,000-hour requirement for marine engines is calculated based on an operating rate of 4,000 hours of use per year, with five years between rebuilds. The useful life figures are minimum values to take into account the possibility that manufacturers may in the future design their engines for a longer period of operation before rebuilding. If an engine is designed to be in service until rebuild longer than our minimum useful life period, then the manufacturer must specify a corresponding longer useful life for that engine family. The above approach of basing useful life on time to first rebuild was chosen because it is difficult to justify holding the engine manufacturer responsible for an engine's emissions after the engine is rebuilt. The original engine manufacturer has little, if any, control over the rebuild process. When done improperly, the rebuilding process can include changes to the engine that adversely affect emissions. At the same time, however, these engines are often kept in service much longer than the minimum useful life. Median values for service lives are 15 years for Category 1 propulsion engines and 23 years for Category 2 engines. These longer service lives mean that the engine may be exempt from in-use testing for more than half its service life. We therefore believe it is important to be able to conduct recall testing on these engines throughout the established useful life period. We are also establishing requirements for engine rebuilders. To address the possibility of light commercial applications with much shorter design lifetimes, the final rule allows manufacturers to request a [[Page 73316]] shorter useful life for certain engines. Manufacturers in this case need to determine the alternate useful life based on the documented hourly service life of these engines in the field. This may in some cases be much less than 10,000 hours of operation. To prevent abuse of this provision, we won't approve any useful life less than 1,000 hours and we will require that the manufacturer display the certified useful life on the engine label. Also, the shortened useful life may not be less the manufacturer's recommended overhaul interval or mechanical warranty for that engine. 2. Warranty Periods Tied to the useful life is the minimum warranty period imposed under the Clean Air Act. The warranty periods for marine diesel engines are based on the ratio of useful life and warranty periods established for land-based nonroad engines. Specifically, we are setting a warranty period that is 50 percent as long as the useful life (in both operating hours and years) for both Category 1 and Category 2 engines. Also, the emissions warranty may not be less than any mechanical warranties offered by the manufacturer. This applies whether the mechanical warranty is published or negotiated, and whether it is offered for a fee or at no extra charge. Table 5 summarizes the useful life and warranty values that apply. We are also including defect reporting requirements in the final rule. We require engine manufacturers to tell us whenever they identify a specific emission-related defect in 25 or more Category 1 engines, consistent with the provisions that apply to highway and land-based nonroad engines. Similarly, we require notification for specific emission-related defects in 10 or more Category 2 engines, which is the same threshold that applies to locomotives. This is not limited to a single engine model or model year. Table 5.--Useful Life and Warranty Periods ---------------------------------------------------------------------------------------------------------------- Useful Life Warranty Period ------------------------------------------- Category Hours of Hours of operation Years operation Years ---------------------------------------------------------------------------------------------------------------- Category 1.......................................................... 10,000 10 5,000 5 Category 2.......................................................... 20,000 10 10,000 5 ---------------------------------------------------------------------------------------------------------------- 3. Deterioration Factors To further ensure that the emission standards are met in use, we require the application of a deterioration factor (DeF) in evaluating emission control performance during the certification and production- line testing process. The emissions from new engines are adjusted using the DF to account for the expected deterioration in emissions over the life of the engine due to wear and aging of the engine and emission controls. The resulting emission level (i.e., the final deteriorated emission level) represents the expected emissions at the end of the useful life period. New emission control technologies such as aftertreatment, sophisticated fuel delivery controls, and some cooling systems, may lose some of their effectiveness as they age. DFs are already required for highway vehicles and engines, land-based nonroad engines, and locomotives. We are extending this approach to marine diesel engines. Marine diesel engine DFs will be determined by the engine manufacturers in accordance with good engineering practices. Consistent with the land-based nonroad and locomotive programs, we are not specifying a detailed procedure. In generating DFs, however, manufacturers must observe some general guidelines and get our approval. In particular, the DF must be consistent with emissions increases observed in-use based on emission testing of similar engines. Additionally, the DF should be calculated for the worst-case engine calibration offered within the engine family.8 DFs must be calculated as an additive value (i.e., the arithmetic difference between emission level at full useful life and the emission level at the test point) for engines without exhaust aftertreatment devices. In contrast, DFs must be calculated as a multiplicative value (i.e., the ratio of the emission level at full useful life to the emission level at the test point) for engines using exhaust aftertreatment devices. This is consistent with the DF requirements applicable to other diesel engines, based on observed patterns of emission deterioration. --------------------------------------------------------------------------- \8\ The worst case would be the engine calibration expected to generate the highest level of emission deterioration over the useful life, using good engineering judgement. --------------------------------------------------------------------------- It is not our intent to require a great deal of data gathering on engines that use established technology for which the manufacturers have the experience to develop appropriate DFs. New DF testing may not be needed where sufficient data already exists. However, we are applying the DF requirement to all engines to be sure that manufacturers are using reasonable methods to ascertain the capability of engines to meet standards throughout their useful lives. Consistent with the land-based engine programs, we will allow marine diesel engine manufacturers the flexibility of using carryover and carryacross of durability emission data from a single engine that has been certified to the same or more stringent standard for which all of the data applicable for certification has been submitted. In addition, we are allowing deterioration data from highway or land-based nonroad engines to be used for similar marine diesel engines. Service accumulation is necessary to generate DFs from engines in the laboratory. Consistent with the land-based nonroad rule, we are specifying minimum allowable maintenance intervals for marine diesel engine service accumulation to ensure that durability data represent in-use performance (see 40 CFR 94.211(e)). These minimum intervals for marine diesel engines are equivalent to those required for nonroad and highway diesel engines (40 CFR 89.109; 40 CFR 86.094-25). For Category 2 engines, we will allow engine manufacturers to request alternate minimum maintenance intervals at the time of certification, subject to our approval. This allowance for Category 2 engines is necessary to allow harmonization with locomotive maintenance practices (63 FR 18978, April 16, 1998). 4. Rebuilt Engines It is common for marine diesel engines to be rebuilt several times during the course of their lifetimes. Similar to land-based nonroad engines, we have two concerns regarding the rebuilding of marine diesel engines. First, there may not be an incentive to check and repair emission controls that do not affect engine performance. Second, there may be an incentive to rebuild engines to an older [[Page 73317]] configuration due to real or perceived performance penalties associated with technologies used to meet the new emission standards. Such practices would likely result in increased emissions. To address these concerns, we are extending the land-based nonroad rebuild requirements to marine diesel engines. Under these requirements, the parties involved in the process of rebuilding or remanufacturing engines must follow specific provisions to avoid tampering with the engine and emission controls. This requirement is based on the statutory prohibition against tampering with regulated engines. The rebuild requirements apply to any engine built on or after the date that new emission standards apply to that engine's specific category or group, regardless of the emission levels that the individual engine is designed to achieve. Anyone who rebuilds engines, in whole or part, and fails to comply with these provisions may be liable for tampering. Individuals or companies are responsible for the activities over which they have control. Therefore, there may be more than one responsible party for a single engine in cases where different parties perform different tasks during the engine rebuilding process (e.g., engine rebuild, full engine assembly, installation). We are not including any certification or in- use emissions requirements for the rebuilder or engine owner. We are adopting modest record keeping requirements that should be in line with customary business practices. People involved in the process of marine diesel engine rebuilding or remanufacturing will keep the records. The required records include the hours of use accumulated on the engine at the time of rebuild and a list of the work performed on the engine or related systems. For work performed on the engine, rebuilders must include a list of replacement parts used, engine parameter adjustments, design element changes, and a description of any work performed. Parties must keep the information for two years and may use any format or system, provided that the information can be readily understood by an EPA enforcement officer. We do not require that companies keep information that is not reasonably available through normal business practices. In cases where it is customary practice to keep records for engine families rather than specific engines, where the engines within that family are being rebuilt or remanufactured to an identical configuration, such record keeping practices are satisfactory. Rebuilders may use records such as build lists, parts lists, and engineering parameters that they keep of the engine families being rebuilt rather than on individual engines, provided that each engine is rebuilt in the same way to those specifications. 5. Replacement Engines There may be situations in which a marine diesel engine can or must be replaced with a new engine. In general, we require that these replacement engines meet the certification requirements that apply to new engines for the year it is manufactured. The final rule makes provision for engine manufacturers to produce new engines to replace an older, uncertified model, where the replacement engine doesn't need to comply with the emission standards that would otherwise apply to new engines. This exemption for replacement engines is available if no new, compliant engine is available that meets the physical and performance characteristics of the engine being replaced (subject to our approval). There is no exemption for engines that are replacing certified engines. Consistent with replacement engine provisions in other programs, some additional constraints ensure that companies do not circumvent the regulations. J. Certification As discussed previously, we expect technology to be shared between land-based engines and marine engines. Some engine manufacturers will likely produce engines of the same basic design for sale in both areas. Specifically, we expect Category 1 marine engines to share the technology developed for land-based nonroad engines, and Category 2 engines to share technology developed for locomotive engines. To account for this product overlap, we are basing certification data and administration requirements for Category 1 on the existing program for land-based nonroad engines, and for Category 2 marine engines on the existing program for locomotive engines.9 Specific certification provisions are discussed more fully in the following sections. --------------------------------------------------------------------------- \9\See 40 CFR part 89, subpart B, for the provisions of the land-based nonroad engine program and 40 CFR part 92, subpart C, for the provisions of the locomotive program. --------------------------------------------------------------------------- 1. Engine Family Definition Engine grouping for the purpose of certification is accomplished through the application of an ``engine family'' definition. Engines expected to have similar emission characteristics throughout the useful life are classified in the same engine family. Separate engine family classification is also required for each marine engine category (i.e., Categories 1, 2, and 3 will be in separate engine families). We are establishing specific parameters to define engine family for each category of marine engine. To provide for administrative flexibility, we may separate engines normally grouped together or to combine engines normally grouped separately based upon a manufacturer's request substantiated with an evaluation of emission characteristics over the engine's useful life. For Category 1, we are using the engine family definition for land- based nonroad engines, with the addition of the type of fuel system and whether fuel injection is controlled mechanically or electronically. For Category 2, we are using the engine family definition for locomotive engines. These definitions provide consistency between land-based and marine engines of the same basic type. The fuel system type and control type were added to the land-based nonroad engine family definition to reduce the variability of emissions within an engine family. This change will aid manufacturers in selecting the ``worst-case'' engine for emission testing. It will lessen the chance of noncompliance in use by ensuring that the highest emitting engine is tested during certification. Under the provisions of the land-based nonroad rule, engine manufacturers have the option to petition for their marine engines to be included in land-based engine families. We are not including this flexibility for marine engines rated over 37 kW because the ``not-to- exceed'' provisions in this final rule apply uniquely to marine engines. We do, however, allow manufacturers to rely on the land-based certification for land-based engines that are marinized without affecting emissions (see Section II.F.). The engine family definition is fundamental to the certification process and to a large degree determines the amount of testing required for certification. Manufacturers are required to estimate the rate of deterioration for each engine family (see Section IV.I.3. for further details). Compliance with the emission standard will also be demonstrated for each engine family based upon required testing and the application of the deterioration factor. Separate certificates of conformity are required for each engine family. 2. Emission Data Engine Selection Manufacturers must select the highest emitting engine (i.e., ``worst-case'' engine) in a family for certification [[Page 73318]] testing. In making that determination, the manufacturer must use good engineering judgement (considering, for example, all engine configurations and power ratings within the engine family and the range of installation options allowed). By requiring manufacturers to test the worst-case engine, we can be sure that all engines within the engine family are complying with emission standards for the least cost (as measured by the number of tests required). Manufacturers may request the separation of the dissimilar calibrations into separate engine families. This may be appropriate, for example, if a manufacturer feels that an engine family is grouped too broadly or that the worst-case emission data engine underestimates the emission credits available under the ABT provisions. K. Production-Line Testing One of the challenges of serial engine production is ensuring that each engine produced has the same emission characteristics as the original certification engine. We are finalizing a requirement for manufacturers to conduct production line testing (PLT). The general object of a PLT program is to show, with reasonable certainty, whether certification designs have been translated into production engines that meet applicable standards (or FELs) at the time of production, before excess emissions are generated in use. PLT is performed on a regular basis during the year by the engine manufacturer according to our criteria. With PLT testing, a manufacturer selects engines from its production line for confirmatory testing. In general, a manufacturer must test one percent of its total projected annual U.S. marine diesel engine sales (propulsion and auxiliary) for each category each year. We believe that a one percent sampling rate is appropriate for the marine diesel engine industry because of its low production volumes, and that a higher sampling rate would be overly burdensome for this industry. We are not specifying a minimum number of tests for Category 1 engines. If a manufacturer sells fewer than 100 Category units in the United States in a given year, it is not required to do any PLT testing for those engines that year. For Category 2 engines, a manufacturer must conduct a minimum of one PLT test per year. Thus, for manufacturers with sales of less than 100 Category 2 engines in a given year, one test is required that year. For purposes of calculating the number of tests required, Category 1 and Category 2 annual engine sales must be considered separately. The manufacturer selects a random sample of test engines that is representative of annual production. We reserve the right to reject any engines selected by manufacturers if we determine that such engines do not represent production engines. Engines selected should cover the broadest range of production possible, and from year to year should be varied to cover all engine families if possible. Tests should also be distributed evenly throughout the model year, to the extent possible. Manufacturers must conduct emission testing of PLT engines in accordance with the applicable federal testing procedures. Compliance with the NTE provisions must be demonstrated as part of PLT testing. The results must be communicated to us in periodic reports that summarize emissions results, test procedures, and events such as the date, time, and location of each test. These reports allow us to continually monitor the PLT data. Reports must be submitted each quarter. If no testing is performed during the period, no report is required. Under this testing scheme, if an engine fails a production line test, the manufacturer must test two additional engines out of either the next two days' production or the next fifteen engines produced in that engine family in accordance with the applicable federal testing procedures. This dual approach to testing additional engines accounts for variations in production volumes. If production volumes are high, then we believe the two-day provision will allow for the orderly selection of additional test engines. Likewise, if production volumes are low, then the provision allowing the engines to be selected from the next fifteen produced will allow for orderly selection. When the average of the three test results, for any pollutant, are greater than the applicable standard or FEL for any pollutant, the manufacturer fails the PLT for that engine family. Such failures must be reported to us within two working days of the determination of a failure. Note that compliance with the standards is required of every covered engine. Thus, every engine failing a PLT test is considered noncompliant with the standards and must be brought into compliance. Using the average of three tests to determine compliance with the PLT program serves only as a tool to decide when it is appropriate to suspend or revoke the certificate of conformity for that engine family, and is not meant to imply that not all engines have to comply with the standards. In the PLT program, the Administrator can suspend or revoke the manufacturer's certificate of conformity, in whole or in part, thirty days after we determine that an engine family is noncompliant, or if the engine manufacturer's report reveals that the PLT tests were not performed correctly. During the thirty-day period after we establish noncompliance, we will coordinate with the manufacturer to facilitate the approval of the required production line remedy to eliminate the need to halt production as much as possible. The manufacturer must then address the noncompliance for the engines produced prior to the suspension or revocation of the certificate of conformity (for example, by bringing them into compliance or removing them from service). We can reinstate the certificate after a suspension, or reissue one after a revocation, if the manufacturer demonstrates through its PLT program that improvements, modifications, or replacements have brought the engine family into compliance. The regulations include hearing provisions that provide a mechanism to resolve disputes between manufacturers and us regarding a suspension or revocation decision based on noncompliance with the PLT. It is important to point out that we retain the legal authority to inspect and test engines if problems arise in the PLT program. Note also that the definition of ``failure'' of the PLT is limited to the PLT program, and does not define failure or noncompliance for other purposes. It is based in part on the severity of the result of a failure (suspension or revocation of a certificate) and is not meant to limit in any way the overall obligation of the manufacturer to produce engines that meet the standard. We recognize the need for a PLT program that does not impose an unreasonable burden on manufacturers. Therefore, consistent with the requirement that testing be required on one percent of total marine diesel engine production for each category, no PLT is required for manufacturers whose Category 1 marine diesel engines sales are less than 100 per year. This is because companies with such low sales are unlikely to have in-house testing facilities, and requiring such companies to send an engine to an independent test facility for PLT purposes may be too burdensome. Note that companies exempt from the PLT program are not exempt from other certification and compliance provisions. Engines exempt from the PLT program must still meet the emission limits as produced and in use. We reserve the right to conduct an SEA on any manufacturer with engines certified to the requirements of this final rule. In addition, we are not extending [[Page 73319]] this flexibility provision to the PLT program for Category 2 marine diesel engines, since they are typically produced in very small volumes. Finally, while we believe this PLT program takes into account the circumstances of this industry, we also understand that alternative plans may be developed that better account for the individual needs of an individual manufacturer. Thus, a manufacturer may submit an alternative plan for a PLT program, subject to our approval. A manufacturer's petition to use an alternative plan needs to address the need for the alternative and include justifications for the number and representativeness of engines tested. The alternative plan must also have specific provisions regarding what constitutes a PLT failure for an engine family. L. Miscellaneous Compliance Issues We are extending the general compliance provisions for land-based nonroad engines to Category 1 and Category 2 marine diesel engines. These include the tampering, defeat device, imported engines and vessels, and general prohibition provisions. M. Averaging, Banking, and Trading Program Along with the emission standards, we are including a marine averaging, banking, and trading (ABT) program. An ABT program is an important factor that EPA takes into consideration in setting emission standards that are appropriate under section 213 of the Clean Air Act. ABT reduces the cost and improves the technological feasibility of achieving the standards, helping to ensure the attainment of the standards earlier than would otherwise be possible. Manufacturers gain flexibility in product planning and the opportunity for a more cost- effective introduction of product lines meeting a new standard. ABT also creates an incentive for the early introduction of new technology, which allows certain engine families to act as trail blazers for new technology. This can help provide valuable information to manufacturers on the technology before manufacturers need apply the technology throughout their product line. This early introduction of clean technology improves the feasibility of achieving the standards and can provide valuable information for use in other regulatory programs that may benefit from similar technologies. The voluntary ABT program allows the certification of one or more engine families within a given manufacturer's product line at emission levels above the applicable emission standards, provided that the increased emissions are offset by one or more families certified below the emission standards. The average of all emissions for a particular manufacturer's production (weighted by sales-weighted average power, production volume and useful life) must be at or below the level of the applicable emission standards. In addition to the averaging program just described, the ABT program contains banking and trading provisions, which allow a manufacturer to generate emission credits and bank them for future use in its own averaging program or sell them to another entity. Compliance is determined on a total mass emissions basis to account for differences in production volume, power and useful life among engine families. The ABT program for marine diesel engines over 37 kW is based on the corresponding ABT programs recently adopted for land-based nonroad engines (63 FR 56967, October 23, 1998) and locomotives (63 FR 18978, April 16, 1998), which roughly correspond to the Category 1 and Category 2 engines, respectively. A manufacturer choosing to participate in the ABT program must certify each participating engine family to a family emission limit (FEL) determined by the manufacturer during certification testing. A separate FEL must be determined for each pollutant the manufacturer includes in the ABT program. The ABT program is limited to HC+NOX and PM emissions. Thus, only two different FELs may be generated for a given engine family. Consistent with the recently finalized land-based nonroad engine program, marine engine credits are to be calculated based on the difference between the applicable standard(s) and FEL(s). However, credit calculation for marine engines is somewhat different than that for land-based nonroad engines, in that a load factor is inserted in the equation. This term is necessary because, contrary to land-based nonroad case, not all marine engines are expected to operate at the same load. The credit calculation equation is as follows: Emission credits = (Std--FEL) x (UL) x (Production) x (AvgPR) x (10-6) x (LF) Where: Std = the applicable cycle-weighted marine engine THC+NOX and/or PM emission standard in grams per kilowatt- hour. FEL = the family emission limit for the engine family in grams per kilowatt-hour. (The FEL may not exceed the limit established in Sec. 94.304(m) for each pollutant.) UL = the useful life in hours. Production = the number of engines participating in the averaging, banking, and trading program within the given engine family during the calendar year (or the number of engines in the subset of the engine family for which credits are being calculated). Quarterly production projections are used for initial certification. Actual applicable production/sales volumes are used for end-of-year compliance determination. AvgPR = average power rating of all of the configurations within an engine family, calculated on a sales-weighted basis, in kilowatts. LF = the load factor, dependent on whether the engine is intended for propulsion or auxiliary applications, as follows: A. 0.69 for propulsion engines B. 0.51 for auxiliary engines. We are prohibiting the generation of credits for one pollutant and the simultaneous use of credits for the other pollutant within the same engine family. In other words, a manufacturer may not simultaneously generate HC+NOX credits and use PM credits on the same engine family, and vice versa. This is consistent with the recently finalized emission standards for land-based nonroad diesel engines. This also reflects the inherent trade-off between NOX and PM emissions in diesel engines. FEL upper limits apply in the same manner as those in the comparable land-based ABT programs to ensure that the emissions from any given family certified under this ABT program not be significantly higher than the applicable emission standards. In general, these FEL upper limits correspond to the existing previous tier of standards for the various classes. In other words, the FEL upper limits are generally the Tier 1 standards for engines certifying according to the ABT provisions relative to the Tier 2 standards. Since we are not including any Tier 1 standards for marine engines in this rulemaking, the land- based Tier 1 standards serve as FEL upper limits for the Tier 2 marine engine standards. When the ABT provisions for land-based nonroad engines were recently revised, there were no Tier 1 standards in place for some land-based categories and pollutants. These cases correspond to some Category 1 marine engines. In those cases we c [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A99-31658. Public record. Not legal advice.