[Federal Register: May 18, 2007 (Volume 72, Number 96)] [Proposed Rules] [Page 28097-28393] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr18my07-17] [[Page 28097]] ----------------------------------------------------------------------- Part II Environmental Protection Agency ----------------------------------------------------------------------- 40 CFR Parts 60, 63, et al. Control of Emissions from Nonroad Spark-Ignition Engines and Equipment; Proposed Rule [[Page 28098]] ----------------------------------------------------------------------- ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 60, 63, 85, 89, 90, 91, 1027, 1045, 1048, 1051, 1054, 1060, 1065, 1068, and 1074 [EPA-HQ-OAR-2004-0008; FRL-8303-7] RIN 2060-AM34 Control of Emissions from Nonroad Spark-Ignition Engines and Equipment AGENCY: Environmental Protection Agency (EPA). ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: We are proposing emission standards for new nonroad spark- ignition engines that will substantially reduce emissions from these engines. The proposed exhaust emission standards would apply in 2009 for new marine spark-ignition engines, including first-time EPA standards for sterndrive and inboard engines. The proposed exhaust emission standards would apply starting in 2011 and 2012 for different sizes of new land-based, spark-ignition engines at or below 19 kilowatts (kW). These small engines are used primarily in lawn and garden applications. We are also proposing evaporative emission standards for vessels and equipment using any of these engines. In addition, we are making other minor amendments to our regulations. We estimate that by 2030, the proposed standards would result in significant annual reductions of pollutant emissions from regulated engine and equipment sources nationwide, including 631,000 tons of volatile organic hydrocarbon emissions, 98,200 tons of NOX emissions, and 6,300 tons of direct particulate matter (PM2.5) emissions. These reductions correspond to significant reductions in the formation of ground-level ozone. We also expect to see annual reductions of 2,690,000 tons of carbon monoxide emissions, with the greatest reductions in areas where there have been problems with individual exposures. The requirements in this proposal would result in substantial benefits to public health and welfare and the environment. We estimate that by 2030, on an annual basis, these emission reductions would prevent 450 PM-related premature deaths, approximately 500 hospitalizations, 52,000 work days lost, and other quantifiable benefits every year. The total estimated annual benefits of this rule in 2030 are approximately $3.4 billion. Estimated costs in 2030 are many times less at approximately $240 million. DATES: Comments: Comments must be received on or before August 3, 2007. Under the Paperwork Reduction Act, comments on the information collection provisions must be received by OMB on or before June 18, 2007. ADDRESSES: Submit your comments, identified by Docket No. EPA-HQ-OAR- 2004-0008, by one of the following methods: http://www.regulations.gov: Follow the on-line instructions for submitting comments. E-mail: a-and-r-docket@epa.gov. Fax: (202) 260-4400. Mail: Environmental Protection Agency, Air Docket, Mail-code 6102T, 1200 Pennsylvania Ave., NW., Washington, DC 20460. In addition, please mail a copy of your comments on the information collection provisions to the Office of Information and Regulatory Affairs, Office of Management and Budget (OMB), Attn: Desk Officer for EPA, 725 17th St., NW., Washington, DC 20503. Hand Delivery: EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC, Attention Docket No. EPA- HQ-OAR-2004-0008. Such deliveries are accepted only during the Docket's normal hours of operation, special arrangements should be made for deliveries of boxed information. Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR- 2004-0008. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at http://www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site is an ``anonymous access'' system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e- mail comment directly to EPA without going through http://www.regulations.gov, your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional instructions on submitting comments, go to Unit XIII of the SUPPLEMENTARY INFORMATION section of this document. Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some information is not publicly available, such as CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically in http://www.regulations.gov or in hard copy at the ``Control of Emissions from Nonroad Spark-Ignition Engines, Vessels and Equipment'' Docket, EPA/DC, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566-1744 and the telephone number for the ``Control of Emissions from Nonroad Spark-Ignition Engines, Vessels, and Equipment'' Docket is (202) 566-1742. Hearing: A hearing will be held at 9:30 a.m. on Tuesday, June 5, 2007 at the Sheraton Reston Hotel. The hotel is located at 11810 Sunrise Valley Drive in Reston, Virginia; their phone number is 703- 620-9000. For more information on these hearings or to request to speak, see Section XIII. FOR FURTHER INFORMATION CONTACT: Carol Connell, Environmental Protection Agency, Office of Transportation and Air Quality, Assessment and Standards Division, 2000 Traverwood Drive, Ann Arbor, Michigan 48105; telephone number: 734-214-4349; fax number: 734-214-4050; e-mail address: connell.carol@epa.gov. SUPPLEMENTARY INFORMATION: Does This Action Apply to Me? This action will affect you if you produce or import new spark- ignition engines intended for use in marine vessels or in new vessels using such engines. This action will also affect you if you produce or import new spark-ignition engines below 19 kilowatts used in nonroad equipment, including agricultural and construction equipment, or produce or import such nonroad vehicles. [[Page 28099]] The following table gives some examples of entities that may have to follow the regulations; however, since these are only examples, you should carefully examine the proposed regulations. Note that we are proposing minor changes in the regulations that apply to a wide range of products that may not be reflected in the following table (see Section XI). If you have questions, call the person listed in the FOR FURTHER INFORMATION CONTACT section of this preamble: ---------------------------------------------------------------------------------------------------------------- Examples of potentially regulated Category NAICS codes a SIC codes b entities ---------------------------------------------------------------------------------------------------------------- Industry 333618 3519 Manufacturers of new engines. Industry 333111 3523 Manufacturers of farm machinery and equipment. Industry 333112 3524 Manufacturers of lawn and garden tractors (home). Industry 336612 3731, 3732 Manufacturers of marine vessels. Industry 811112, 811198 7533, 7549 Commercial importers of vehicles and vehicle components. ---------------------------------------------------------------------------------------------------------------- a North American Industry Classification System (NAICS). b Standard Industrial Classification (SIC) system code. What Should I Consider as I Prepare My Comments for EPA? Submitting CBI. Do not submit this information to EPA through http://www.regulations.gov or e-mail. Clearly mark the part or all of the information that you claim to be CBI. For CBI information in a disk or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM as CBI and then identify electronically within the disk or CD ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. Tips for Preparing Your Comments. When submitting comments, remember to: Identify the rulemaking by docket number and other identifying information (subject heading, Federal Register date and page number). Follow directions--The agency may ask you to respond to specific questions or organize comments by referencing a Code of Federal Regulations (CFR) part or section number. Explain why you agree or disagree; suggest alternatives and substitute language for your requested changes. Describe any assumptions and provide any technical information and/or data that you used. If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced. Provide specific examples to illustrate your concerns and suggest alternatives. Explain your views as clearly as possible, avoiding the use of profanity or personal threats. Make sure to submit your comments by the comment period deadline identified. Table of Contents I. Introduction A. Overview B. Why Is EPA Taking This Action? C. What Regulations Currently Apply to Nonroad Engines or Vehicles? D. Putting This Proposal into Perspective E. What Requirements Are We Proposing? F. How Is This Document Organized? II. Public Health and Welfare Effects A. Ozone B. Particulate Matter C. Air Toxics D. Carbon Monoxide III. Sterndrive and Inboard Marine Engines A. Overview B. Engines Covered by This Rule C. Proposed Exhaust Emission Standards D. Test Procedures for Certification E. Additional Certification and Compliance Provisions F. Small-Business Provisions G. Technological Feasibility IV. Outboard and Personal Watercraft Engines A. Overview B. Engines Covered by This Rule C. Proposed Exhaust Emission Standards D. Changes to Existing OB/PWC Test Procedures E. Additional Certification and Compliance Provisions F. Other Adjustments to Regulatory Provisions G. Small-Business Provisions H. Technological Feasibility V. Small SI Engines A. Overview B. Engines Covered by This Rule C. Proposed Requirements D. Testing Provisions E. Certification and Compliance Provisions for Small SI Engines and Equipment F. Small Business Provisions G. Technological Feasibility VI. Evaporative Emissions A. Overview B. Fuel Systems Covered by This Rule C. Proposed Evaporative Emission Standards D. Emission Credit Programs E. Testing Requirements F. Certification and Compliance Provisions G. Small-Business Provisions H. Technological Feasibility VII. General Concepts Related to Certification and Other Requirements A. Scope of Application B. Emission Standards and Testing C. Demonstrating Compliance D. Other Concepts VIII. General Nonroad Compliance Provisions A. Miscellaneous Provisions (Part 1068, subpart A) B. Prohibited Acts and Related Requirements (Part 1068, subpart B) C. Exemptions (Part 1068, subpart C) D. Imports (Part 1068, subpart D) E. Selective Enforcement Audit (Part 1068, subpart E) F. Defect Reporting and Recall (Part 1068, subpart F) G. Hearings (Part 1068, subpart G) IX. General Test Procedures A. Overview B. Special Provisions for Nonroad Spark-Ignition Engines X. Energy, Noise, and Safety A. Safety B. Noise C. Energy XI. Proposals Affecting Other Engine and Vehicle Categories A. State Preemption B. Certification Fees C. Amendments to General Compliance Provisions in 40 CFR Part 1068 D. Amendments Related to Large SI Engines (40 CFR Part 1048) E. Amendments Related to Recreational Vehicles (40 CFR Part 1051) F. Amendments Related to Heavy-Duty Highway Engines (40 CFR Part 85) G. Amendments Related to Stationary Spark-Ignition Engines (40 CFR Part 60) XII. Projected Impacts A. Emissions from Small Nonroad and Marine Spark-Ignition Engines B. Estimated Costs C. Cost per Ton D. Air Quality Impact E. Benefits F. Economic Impact Analysis XIII. Public Participation XIV. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review B. Paperwork Reduction Act C. Regulatory Flexibility Act D. Unfunded Mandates Reform Act E. Executive Order 13132: Federalism [[Page 28100]] F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments G. Executive Order 13045: Protection of Children from Environmental Health and Safety Risks H. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations. I. Executive Order 13211: Actions that Significantly Affect Energy Supply, Distribution, or Use J. National Technology Transfer Advancement Act I. Introduction A. Overview Air pollution is a serious threat to the health and well-being of millions of Americans and imposes a large burden on the U.S. economy. Ground-level ozone is linked to potentially serious health problems, especially respiratory effects, and environmental degradation. Carbon monoxide emissions are also related to health problems. Over the past quarter century, state and federal agencies have established emission control programs that make significant progress in addressing these concerns. This proposal includes steps that would reduce the mobile-source contribution to air pollution in the United States. In particular, we are proposing standards that would require manufacturers to substantially reduce emissions from marine spark-ignition engines and from nonroad spark-ignition engines below 19 kW that are generally used in lawn and garden applications.\1\ We refer to these as Marine SI engines and Small SI engines, respectively. The proposed standards are a continuation of the process of establishing standards for nonroad engines and vehicles as required by Clean Air Act section 213. All the nonroad engines subject to this proposal are already regulated under existing emission standards, except sterndrive and inboard marine engines, which will be subject to EPA emission standards for the first time. --------------------------------------------------------------------------- \1\ Otto-cycle engines (referred to here as spark-ignition or SI engines) typically operate on gasoline, liquefied petroleum gas, or natural gas. Diesel-cycle engines, referred to simply as ``diesel engines'' in this document, may also be referred to as compression- ignition or CI engines. These engines typically operate on diesel fuel, but other fuels may also be used. --------------------------------------------------------------------------- Nationwide, emissions from Marine SI engines and Small SI engines contribute significantly to mobile source air pollution. By 2020 without the proposed requirements these engines will account for about 27 percent (1,352,000 tons) of mobile source volatile organic hydrocarbon compounds (VOC) emissions, 31 percent (16,374,000 tons) of mobile source carbon monoxide (CO) emissions, 4 percent (202,000 tons) of mobile source oxides of nitrogen (NOX) emissions, and 16 percent (39,000 tons) of mobile source particulate matter (PM2.5) emissions. The proposed standards will reduce exposure to these emissions and help avoid a range of adverse health effects associated with ambient ozone, CO, and PM levels. In addition, the proposed standards will help reduce acute exposure to CO, air toxics, and PM for persons who operate or who work with or are otherwise active in close proximity to these engines. They will also help address other environmental problems associated with Marine SI engines and Small SI engines, such as visibility impairment in our national parks and other wilderness areas. These effects are described in more detail in subsequent sections of this Preamble. B. Why Is EPA Taking This Action? Clean Air Act section 213(a)(1) directs us to study emissions from nonroad engines and vehicles to determine, among other things, whether these emissions ``cause, or significantly contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare.'' Section 213(a)(2) further requires us to determine whether emissions of CO, VOC, and NOX from all nonroad engines significantly contribute to ozone or CO concentrations in more than one nonattainment area. If we determine that emissions from all nonroad engines do contribute significantly to these nonattainment areas, section 213(a)(3) then requires us to establish emission standards for classes or categories of new nonroad engines and vehicles that cause or contribute to such pollution. We may also set emission standards under section 213(a)(4) regulating any other emissions from nonroad engines that we find contribute significantly to air pollution which may reasonably be anticipated to endanger public health or welfare. Specific statutory direction to propose standards for nonroad spark-ignition engines comes from section 428(b) of the 2004 Consolidated Appropriations Act, which requires EPA to propose regulations under the Clean Air Act ``that shall contain standards to reduce emissions from new nonroad spark-ignition engines smaller than 50 horsepower.'' \2\ As highlighted above and more fully described in Section II, these engines emit pollutants that contribute to ground- level ozone and ambient CO levels. Human exposure to ozone and CO can cause serious respiratory and cardiovascular problems. Additionally, these emissions contribute to other serious environmental degradation. This proposal implements Congress' mandate by proposing new requirements for particular nonroad engines and equipment that are regulated as part of EPA's overall nonroad emission control program. --------------------------------------------------------------------------- \2\ Pub. L. 108-199, Div G, Title IV, Sec. 428(b), 118 Stat. 418 (January 23, 2004). --------------------------------------------------------------------------- We are proposing this rule under the procedural authority of section 307(d) of the Clean Air Act. C. What Regulations Currently Apply to Nonroad Engines or Vehicles? EPA has been setting emission standards for nonroad engines and/or vehicles since Congress amended the Clean Air Act in 1990 and included section 213. These amendments have led to a series of rulemakings to reduce the air pollution from this widely varying set of products. In these rulemakings, we divided the broad group of nonroad engines and vehicles into several different categories for setting application- specific requirements. Each category involves many unique characteristics related to the participating manufacturers, technology, operating characteristics, sales volumes, and market dynamics. Requirements for each category therefore take on many unique features regarding the stringency of standards, the underlying expectations regarding emission control technologies, the nature and extent of testing, and the myriad details that comprise the implementation of a compliance program. At the same time, the requirements and other regulatory provisions for each engine category share many characteristics. Each rulemaking under section 213 sets technology-based standards consistent with the Clean Air Act and requires annual certification based on measured emission levels from test engines or vehicles. As a result, the broader context of EPA's nonroad emission control programs demonstrates both strong similarities between this rulemaking and the requirements adopted for other types of engines or vehicles and distinct differences as we take into account the unique nature of these engines and the companies that produce them. We completed the Nonroad Engine and Vehicle Emission Study to satisfy Clean Air Act section 213(a)(1) in [[Page 28101]] November 1991.\3\ On June 17, 1994, we made an affirmative determination under section 213(a)(2) that nonroad emissions are significant contributors to ozone or CO in more than one nonattainment area (56 FR 31306). Since then we have undertaken several rulemakings to set emission standards for the various categories of nonroad engines. Table I-1 highlights the different engine or vehicle categories we have established and the corresponding cites for emission standards and other regulatory requirements. Table I-2 summarizes the series of EPA rulemakings that have set new or revised emission standards for any of these nonroad engines or vehicles. These actions are described in the following sections, with additional discussion to explain why we are not proposing more stringent standards for certain types of nonroad spark-ignition engines below 50 horsepower. --------------------------------------------------------------------------- \3\ This study is available on EPA's web site at http://www.epa.gov/otaq/equip-ld . Table I-1.--Nonroad Engine Categories for EPA Emission Standards ---------------------------------------------------------------------------------------------------------------- CFR cite for regulationse Engine categories establishing emission Cross reference to Table I.C-2 standards ---------------------------------------------------------------------------------------------------------------- 1. Locomotives engines................... 40 CFR Part 92.............. d 2. Marine diesel engines................. 40 CFR Part 94.............. g, i, j 3. Other nonroad diesel engines.......... 40 CFR Parts 89 and 1039.... a, e, k 4. Marine SI engines \4\................. 40 CFR Part 91.............. c 5. Recreational vehicles................. 40 CFR Part 1051............ i 6. Small SI engines \5\.................. 40 CFR Part 90.............. b, f, h 7. Large SI engines \4\.................. 40 CFR Part 1048............ i ---------------------------------------------------------------------------------------------------------------- Table I-2.--EPA's Rulemakings for Nonroad Engines ---------------------------------------------------------------------------------------------------------------- Nonroad engines (categories and sub- categories) Final rulemaking Date ---------------------------------------------------------------------------------------------------------------- a. Land-based diesel engines >=37 kW 56 FR 31306........................ June 17, 1994. Tier 1. b. Small SI engines--Phase 1.......... 60 FR 34581........................ July 3, 1995. c. Marine SI engines--outboard and 61 FR 52088........................ October 4, 1996. personal watercraft. d. Locomotives........................ 63 FR 18978........................ April 16, 1998. e. Land-based diesel engines--Tier 1 63 FR 56968........................ October 23, 1998. and Tier 2 for engines < 37 kW--Tier 2 and Tier 3 for engines >=37 kW. f. Small SI engines (Nonhandheld)-- 64 FR 15208........................ March 30, 1999. Phase 2. g. Commercial marine diesel < 30 liters 64 FR 73300........................ December 29, 1999. per cylinder. h. Small SI engines (Handheld)--Phase 65 FR 24268........................ April 25, 2000. 2. i. Recreational vehicles, Industrial 67 FR 68242........................ November 8, 2002. spark-ignition engines >19 kW, and Recreational marine diesel. j. Marine diesel engines >=2.5 liters/ 68 FR 9746......................... February 28, 2003. cylinder. k. Land-based diesel engines--Tier 4.. 69 FR 38958........................ June 29, 2004. ---------------------------------------------------------------------------------------------------------------- (1) Small SI Engines We have previously adopted emission standards for nonroad spark- ignition engines at or below 19 kW in two phases. The first phase of these standards introduced certification and an initial level of emission standards for both handheld and nonhandheld engines. On March 30, 1999 we adopted a second phase of standards for nonhandheld engines, including both Class I and Class II engines, which are almost fully phased-in today (64 FR 15208).\6\ These standards involved emission reductions based on improving engine calibrations to reduce exhaust emissions and added a requirement that emission standards must be met over the engines' entire useful life as defined in the regulations. We believe catalyst technology has now developed to the point that it can be applied to all nonhandheld Small SI engines to reduce exhaust emissions. Various emission control technologies are similarly available to address the different types of fuel evaporative emissions we have identified. --------------------------------------------------------------------------- \4\ The term ``Marine SI,'' used throughout this document, refers to all spark-ignition engines used to propel marine vessels. This includes outboard engines, personal watercraft engines, and sterndrive/inboard engines. See Section III for additional information. \5\ The terms ``Small SI'' and ``Large SI'' are used throughout this document. All nonroad spark-ignition engines not covered by our programs for Marine SI engines or recreational vehicles are either Small SI engines or Large SI engines. Small SI engines include those engines with maximum power at or below 19 kW, and Large SI engines include engines with maximum power above 19 kW. \6\ Handheld engines generally include those engines for which the operator holds or supports the equipment during operation; nonhandheld engines are Small SI engines that are not handled engines (see Sec. 1054.801). Class I refers to nonhandheld engines with displacement below 225 cc; Class II refers to larger nonhandheld engines. --------------------------------------------------------------------------- For handheld engines, we adopted Phase 2 exhaust emission standards in April 25, 2000 (65 FR 24268). These standards were based on the application of catalyst technology, with the expectation that manufacturers would have to make considerable investments to modify their engine designs and production processes. A technology review we completed in 2003 indicated that manufacturers were making progress toward compliance, but that additional implementation flexibility was needed if manufacturers were to fully comply with the regulations by 2010. This finding and a change in the rule were published in the Federal Register on January 12, 2004 (69FR1824). At this point, we have no information to suggest that manufacturers can uniformly apply new technology or make design improvements to reduce exhaust emissions below the Phase 2 levels. We therefore believe the Phase 2 standards continue to represent the greatest degree of emission reduction achievable for these engines.\7\ However, we believe it is appropriate to apply evaporative emission standards to the handheld engines similar to those we are [[Page 28102]] proposing for the nonhandheld engines. Manufacturers can control evaporative emissions in a way that has little or no impact on exhaust emissions. --------------------------------------------------------------------------- \7\ Note that we refer to the handheld exhaust emission standards in 40 CFR part 1054 as Phase 3 standards. This is intended to maintain consistent terminology with the comparable standards in California rather than indicating an increase in stringency. --------------------------------------------------------------------------- (2) Marine SI Engines On October 4, 1996 we adopted emission standards for spark-ignition outboard and personal watercraft engines that have recently been fully phased in (61 FR 52088). We decided not to finalize emission standards for sterndrive or inboard marine engines at that time. Uncontrolled emission levels from sterndrive and inboard marine engines were already significantly lower than the outboard and personal watercraft engines. We did, however, leave open the possibility of revisiting the need for emission standards for sterndrive and inboard engines in the future. See Section III for further discussion of the scope and background of past and current rulemakings for these engines. We believe existing technology can be applied to all Marine SI engines to reduce emissions of harmful pollutants, including both exhaust and evaporative emissions. Manufacturers of outboard and personal watercraft engines can continue the trend of producing four- stroke engines and advanced-technology two-stroke engines to further reduce emissions. For sterndrive/inboard engines, manufacturers can add technologies, such as fuel injection and aftertreatment, that can safely and substantially improve the engines' emission control capabilities. (3) Large SI Engines We adopted emission standards for Large SI engines on November 8, 2002 (67 FR 68242). This includes Tier 1 standards for 2004 through 2006 model years and Tier 2 standards starting with 2007 model year engines. Manufacturers are today facing a considerable challenge to comply with the Tier 2 standards, which are already substantially more stringent than any of the standards proposed or contemplated for the other engine categories in this proposal. The Tier 2 standards also include evaporative emission standards, new transient test procedures, and additional exhaust emission standards to address off-cycle emissions, and diagnostic requirements. Stringent standards for this category of engines, and in particular, engines between 25 and 50 horsepower (19 to 37 kW), have been completed in the recent past, and are currently being implemented. Because of that we do not have information on the actual Tier 2 technology that manufacturers will use and do not have information at this time on possible advances in technology beyond Tier 2. We therefore believe the evidence provided in the recently promulgated rulemaking continues to represent the best available information regarding the appropriate level of standards for these engines under section 213 at this time. California Air Resources Board (ARB) has adopted an additional level of emission control for Large SI engines starting with the 2010 model year. However, as described in Section I.D.1, their new standards would not increase overall stringency beyond that reflected in the federal standards. As a result, we believe it would be inappropriate to pursue more stringent emission standards for these engines in this rulemaking. Note that the Large SI standards apply to nonroad spark-ignition engines above 19 kW. However, we adopted a special provision for engine families where production engines have total displacement at or below 1000 cc and maximum power at or below 30 kW, allowing these engine families to instead certify to the applicable standards for Small SI engines. (4) Recreational Vehicles We adopted exhaust and evaporative emission standards for recreational vehicles in our November 8, 2002 final rule (67FR68242). These standards apply to all-terrain vehicles, off-highway motorcycles, and snowmobiles.\8\ These exhaust emission standards will be fully phased in starting with the 2007 model year. The evaporative emission standards apply starting with the 2008 model year. --------------------------------------------------------------------------- \8\ Note that we treat certain high-speed off-road utility vehicles as all-terrain vehicles (see 40 CFR part 1051). --------------------------------------------------------------------------- Recreational vehicles will soon be subject to permeation requirements that are very similar to the requirements proposed in this rulemaking. We have also learned more about controlling running losses and diffusion emissions that may eventually lead us to propose comparable standards for recreational vehicles. We expect to revisit these questions in the context of a rulemaking to modify the duty cycle for all-terrain vehicles, as described below. Considering these new requirements for recreational vehicles in this later rulemaking would give us additional time to collect information to better understand the feasibility, costs, and benefits of applying these requirements to recreational vehicles. The following sections describe the state of technology and regulatory requirements for the different types of recreational vehicles. (a) All-Terrain Vehicles The regulations for all-terrain vehicles (ATV) specify testing based on a chassis-based transient procedure. However, on an interim basis, we are permitting manufacturers the option to use a steady-state engine-based procedure to allow manufacturers an opportunity to develop the field operating data needed to determine if ATV operation is dominantly steady state or transient in nature and to develop an appropriate emission test cycle from that information. The emissions test procedure and duty cycle are critical to getting the degree of emission control expected from these engines. We are continuing to work toward a resolution of this test cycle development initiative in a separate action. The anticipated changes to the test cycle raise new questions we will need to work through before we are prepared to change the existing regulation and perhaps pursue new emission control requirements. In particular, we will need to further explore the extent to which the new duty cycle represents in-use operation and whether engine or chassis testing is more appropriate in simulating in-use operation for accurate emission characterization and measurements. We believe it is appropriate to consider more stringent exhaust emission standards for these engines after we have had the opportunity to address the emission test cycle issue and to thus establish a long-term testing protocols and related requirements. (b) Off-Highway Motorcycles For off-highway motorcycles, manufacturers are in many cases making a substantial transition to move away from two-stroke engines in favor of four-stroke engines. This transition is now underway. While it may eventually be appropriate to apply aftertreatment or other additional emission control technologies to off-highway motorcycles, we need more time for this transition to be completed and to assess the success of aftertreatment technologies such as catalysts on similar applications such as highway motorcycles. As EPA and manufacturers learn more in implementing emission standards, we would expect to be able to better judge the potential for broadly applying new technology to achieve further emission reductions from off-highway motorcycles. (c) Snowmobiles In our November 8, 2002 final rule we set three phases of exhaust emission standards for snowmobiles (67 FR [[Page 28103]] 68242). Environmental and industry groups challenged the third phase of these standards. The court decision upheld much of EPA's reasoning for the standards, but vacated the NOX standard and remanded the CO and HC standards to clarify the analysis and evidence upon which the standards are based. See Bluewater Network, et al v. EPA, 370 F 3d 1 (D.C. Cir. 2004). A large majority of snowmobile engines are rated below 50 hp and there is still a fundamental need for time to pass to allow us to assess the success of 4 stroke engine technology in the market place. This is an important of the assessment we need to conduct with regard to 2012 and later model year emission standards. Thus we believe is appropriate to address this in a separate rulemaking.\9\ We expect to complete that work with sufficient lead time for manufacturers to meet any revised Phase 3 standards that we might adopt for the 2012 model year, consistent with the original rulemaking requirements. --------------------------------------------------------------------------- \9\ Only about 3 percent of snowmobiles are rated below 50 horsepower. --------------------------------------------------------------------------- (5) Nonroad Diesel Engines The 2004 Consolidated Appropriations Act providing the specific statutory direction for this rulemaking focuses on nonroad spark- ignition engines. Nonroad diesel engines are therefore not included within the scope of that Congressional mandate. However, we have gone through several rulemakings to set standards for these engines under the broader authority of Clean Air Act section 213. In particular, we have divided nonroad diesel engines into three groups for setting emission standards. We adopted a series of standards for locomotives on April 16, 1998, including requirements to certify engines to emission standards when they are rebuilt (63 FR 18978). We also adopted emission standards for marine diesel engines over several different rulemakings, as described in Table I-2. These included separate actions for engines below 37 kW, engines installed in oceangoing vessels, engines installed in commercial vessels involved in inland and coastal waterways, and engines installed in recreational vessels. We have recently proposed new emission standards for both locomotive and marine diesel engines (72 FR 15938, April 3, 2007). Finally, all other nonroad diesel engines are grouped together for EPA's emission standards. We have adopted multiple tiers of increasingly stringent standards in three separate rulemakings, as described in Table I-2. We most recently adopted Tier 4 standards based on the use of ultra-low sulfur diesel fuel and the application of exhaust aftertreatment technology (69 FR 38958, June 29, 2004). D. Putting This Proposal Into Perspective Most manufacturers that will be subject to this rulemaking are also affected by regulatory developments in California and in other countries. Each of these is described in more detail below. (1) State Initiatives Clean Air Act section 209 prohibits California and other states from setting emission standards for new motor vehicles and new motor vehicle engines, but authorizes EPA to waive this prohibition for California, in which case other states may adopt California's standards. Similar preemption and waiver provisions apply for emission standards for nonroad engines and vehicles, whether new or in-use. However for new locomotives, new engines used in locomotives, and new engines used in farm or construction equipment with maximum power below 130 kW, California and other states are preempted and there is no provision for a waiver of preemption. In addition, in section 428 of the amendment to the 2004 Consolidated Appropriations Act, Congress further precluded other states from adopting new California standards for nonroad spark-ignition engines below 50 horsepower. In addition, the amendment required that we specifically address the safety implications of any California standards for these engines before approving a waiver of federal preemption. We are proposing to codify these changes to preemption in this rule. California ARB has adopted requirements for five groups of nonroad engines: (1) Diesel- and Otto-cycle small off-road engines rated under 19 kW; (2) spark-ignition engines used for marine propulsion; (3) land- based nonroad recreational engines, including those used in all-terrain vehicles, off-highway motorcycles, go-carts, and other similar vehicles; (4) new nonroad spark-ignition engines rated over 19 kW not used in recreational applications; and (5) new land-based nonroad diesel engines rated over 130 kW. They have also approved a voluntary registration and control program for existing portable equipment. In the 1990s California ARB adopted Tier 1 and Tier 2 standards for Small SI engines consistent with the federal requirements. In 2003, they moved beyond the federal program by adopting exhaust HC+NOX emission standards of 10 g/kW-hr for Class I engines starting in the 2007 model year and 8 g/kW-hr for Class II engines starting in the 2008 model year. In the same rule they adopted evaporative emission standards for nonhandheld equipment, requiring control of fuel tank permeation, fuel line permeation, diurnal emissions, and running losses. California ARB has adopted two tiers of exhaust emission standards for outboard and personal watercraft engines beyond EPA's original standards. The most recent standards, which apply starting in 2008, require HC+NOX emission levels as low as 16 g/kW-hr. For sterndrive and inboard engines, California has adopted a 5 g/kW-hr HC+NOX emission standard for 2008 and later model year engines, with testing underway to confirm the feasibility of standards. California ARB's marine programs include no standards for exhaust CO emissions or evaporative emissions. The California emission standards for recreational vehicles have a different form than the comparable EPA standards but are roughly equivalent in stringency. The California standards include no standards for controlling evaporative emissions. Another important difference between the two programs is California ARB's reliance on a provision allowing noncompliant vehicles to be used in certain areas that are less environmentally sensitive as long as they have a specified red sticker that would identify their lack of emission controls to prevent them from operating in other areas. California ARB in 1998 adopted requirements that apply to new nonroad engines rated over 25 hp produced for California, with standards phasing in from 2001 through 2004. Texas has adopted these initial California ARB emission standards statewide starting in 2004. More recently, California ARB has proposed exhaust emission standards and new evaporative emission standards for these engines, consistent with EPA's 2007 model year standards. Their proposal also included an additional level of emission control for Large SI engines starting with the 2010 model year. However, their proposed standards would not increase overall stringency beyond that reflected in the federal standards. Rather, they aim to achieve reductions in HC+NOX emissions by removing the flexibility incorporated into the federal standards allowing manufacturers to have higher HC+NOX emissions by certifying to a more stringent CO standard. [[Page 28104]] (2) Actions in Other Countries While the proposed emission standards will apply only to engines sold in the United States, we are aware that manufacturers in many cases are selling the same products into other countries. To the extent that we have the same emission standards as other countries, manufacturers can contribute to reducing air emissions without being burdened by the costs associated with meeting differing or inconsistent regulatory requirements. The following discussion describes our understanding of the status of emission standards in countries outside the United States. Regulations for spark ignition engines in handheld and nonhandheld equipment are included in the ``Directive 97/68/EC of the European Parliament and of the Council of 16 December 1997 on the approximation of the laws of the Member States relating to measures against the emission of gaseous and particulate pollutants from internal combustion engines to be installed in non-road mobile machinery (OJ L 59, 27.2.1998, p. 1)'', as amended by ``Directive 2002/88/EC of the European Parliament and of the Council of 9 December 2002''. The Stage I emission standards are to be met by all handheld and nonhandheld engines by 24 months after entry into force of the Directive (as noted in a December 9, 2002 amendment to Directive 97/68/EC). The Stage I emission standards are similar to the U.S. EPA's Phase 1 emission standards for handheld and nonhandheld engines. The Stage II emission standards are implemented over time for the various handheld and nonhandheld engine classes from 2005 to 2009 with handheld engines >= 50cc on August 1, 2008. The Stage II emission standards are similar to EPA's Phase 2 emission standards for handheld and nonhandheld engines. Six months after these dates Member States shall permit placing on the market of engines, whether or not already installed in machinery, only if they meet the requirements of the Directive. The European Commission has adopted emission standards for recreational marine engines, including both diesel and gasoline engines. These requirements apply to all new engines sold in member countries and began in 2006 for four-stroke engines and in 2007 for two-stroke engines. Table I-3 presents the European standards for diesel and gasoline recreational marine engines. The numerical emission standards for NOX are based on the applicable standard from MARPOL Annex VI for marine diesel engines (See Table I-3). The European standards are roughly equivalent to the nonroad diesel Tier 1 emission standards for HC and CO. Emission measurements under the European standards rely on the ISO D2 duty cycle for constant-speed engines and the ISO E5 duty cycle for other engines. Table I-3.--European Emission Standards for Recreational Marine Engines [g/kW-hr] ---------------------------------------------------------------------------------------------------------------- Engine Type HC NOX CO PM ---------------------------------------------------------------------------------------------------------------- Two-Stroke Spark-Ignition.................... 30 + 100/P\0.75\ 10.0 150 + 600/P .............. Four-Stroke Spark-Ignition................... 6 + 50/P\0.75\ 15.0 150 + 600/P .............. Compression-Ignition......................... 1.5 + 2/P\0.5\ 9.8 5.0 1.0 ---------------------------------------------------------------------------------------------------------------- \*\ P = rated power in kilowatts (kW) E. What Requirements Are We Proposing? EPA's emission control provisions require engine, vessel and equipment manufacturers to design and produce their products to meet the emission standards we adopt. To ensure that engines, vessels and equipment meet the expected level of emission control, we also require compliance with a variety of additional requirements, such as certification, labeling engines, and meeting warranty requirements. The following sections provide a brief summary of the new requirements we are proposing in this rulemaking. See the later sections for a full discussion of the proposal. (1) Marine SI Engines and Vessels We are proposing a more stringent level of emission standards for outboard and personal watercraft engines starting with the 2009 model year. The proposed standards for engines above 40 kW are 16 g/kW-hr for HC+NOX and 200 g/kW-hr for CO. For engines below 40 kW, the standards increase gradually based on the engine's maximum power. We expect manufacturers to meet these standards with improved fueling systems and other in-cylinder controls. The levels of the standards are consistent with the requirements recently adopted by California ARB with the advantage of a simplified form of the standard for different power ratings and with a CO emission standard. We are not pursuing catalyst-based emission standards for outboard and personal watercraft engines. As is discussed later in this preamble, the application of catalyst-based standards to the marine environment creates special technology challenges that must be addressed. Unlike the sterndrive/ inboard engines discussed in the next paragraph, outboard and personal watercraft engines are not built from automotive engine blocks and are not as easily amenable to the fundamental engine modifications, fuel system upgrades, and other engine control modifications needed to get acceptable catalyst performance. This proposal is an appropriate next step in the evolution of technology-based standards for outboard and personal watercraft engines as they are likely to lead to the elimination of carbureted two-stroke engines in favor of direct- injection two-stroke engines and to encourage the fuel system upgrades and related engine modifications needed to achieve the required reductions and to potentially set the stage for future considerations. We are proposing new exhaust emission standards for sterndrive and inboard marine engines. The proposed standards are 5.0 g/kW-hr for HC+NOX and 75.0 g/kW-hr for CO starting with the 2009 model year. We expect manufacturers to meet these standards with three-way catalysts and closed-loop fuel injection. To ensure proper functioning of these emission control systems in use, we are proposing a requirement that engines have a diagnostic system for detecting a failure in the emission control system. For sterndrive and inboard marine engines at or above 373 kW with high-performance characteristics (generally referred to as ``SD/I high-performance engines''), we are proposing an HC+NOX emission standard of 5.0 g/kW-hr and a CO standard of 350 g/kW-hr. We are also proposing a variety of other special provisions for these engines to reflect unique operating characteristics and to make it feasible to meet emission standards using emission credits. These standards are consistent with the requirements recently adopted by California ARB, with some adjustment to the provisions for SD/I high-performance engines and with a CO emission standard. The emission standards described above relate to engine operation over a [[Page 28105]] prescribed duty cycle for testing in the laboratory. We are also proposing not-to-exceed (NTE) standards that establish emission limits when engines operate under normal speed-load combinations that are not included in the duty cycles for the other engine standards. We are proposing new standards to control evaporative emissions for all Marine SI vessels. The new standards include requirements to control fuel tank permeation, fuel line permeation, and diurnal emissions, including provisions to ensure that refueling emissions do not increase. We are proposing to place these new regulations for Marine SI engines in 40 CFR part 1045 rather than changing the current regulations in 40 CFR part 91. This new part will allow us to improve the clarity of regulatory requirements and update our regulatory compliance program to be consistent with the provisions we have recently adopted for other nonroad programs. We are also making a variety of changes to 40 CFR part 91 to make minor adjustments to the current regulations and to prepare for the transition to 40 CFR part 1045. (2) Small SI Engines and Equipment We are proposing HC+NOX exhaust emission standards of 10.0 g/kW-hr for Class I engines starting in the 2012 model year and 8.0 g/kW-hr for Class II engines starting in the 2011 model year. For both classes of nonhandheld engines, we are proposing to maintain the existing CO standard of 610 g/kW-hr. We expect manufacturers to meet these standards by improving engine combustion and adding catalysts. These standards are consistent with the requirements recently adopted by California ARB. For spark-ignition engines used in marine generators, we are proposing a more stringent Phase 3 CO emission standard of 5.0 g/kW-hr. This would apply equally to all sizes of engines subject to the Small SI standards. We are proposing new evaporative emission standards for both handheld and nonhandheld engines. The new standards include requirements to control permeation from fuel tanks and fuel lines. For nonhandheld engines we are also proposing to require control of diffusion emissions and running losses. We are proposing to place the new regulations for Small SI engines from 40 CFR part 90 to 40 CFR part 1054. This new part will allow us to improve the clarity of regulatory requirements and update our regulatory compliance program to be consistent with the provisions we have recently adopted for other nonroad programs. F. How Is This Document Organized? Since this proposal covers a broad range of engines and equipment that vary in design and use, many readers may be interested only in certain aspects of the proposal. We have therefore attempted to organize this preamble in a way that allows each reader to focus on the material of particular interest. The Air Quality discussion in Section II, however, is general in nature and applies to all the categories covered by this proposal. The next several sections contain our proposal for Small SI engines and equipment and Marine SI engines and vessels. Sections III through V describe the proposed requirements related to exhaust emission standards for each of the affected engine categories, including standards, effective dates, testing information, and other specific requirements. Section VI details the proposed requirements related to evaporative emission requirements for all categories. Sections VII through IX contain some general concepts that are relevant to all of the engines, vessels and equipment covered by this proposal, such as certification requirements and general testing procedures and compliance provisions. Section X discusses how we took energy, noise, and safety factors into consideration for the proposed standards. Section XI describes a variety of proposed provisions that affect other categories of engines besides those that are the primary subject of this proposal. This includes the following changes: We are proposing to reorganize the regulatory language related to preemption of state standards and to clarify certain provisions. We are also requesting comment regarding a petition to reconsider some of the provisions including the extent to which states may regulate the use and operation of nonroad engines and vehicles. We are incorporating new provisions related to certification fees for newly regulated products covered by this proposal. This involves some restructuring of the regulatory language. We are also proposing various technical amendments, such as identifying an additional payment method, that would apply broadly to our certification programs. We are proposing changes to 40 CFR part 1068 to clarify how the provisions apply with respect to evaporative emission standards. We are also proposing various technical amendments. These changes would apply to all types of nonroad engines that are subject to the provisions of part 1068. We are proposing several technical amendments for Large SI engines and recreational vehicles, largely to maintain consistency across programs for different categories of engines and vehicles. We are proposing to amend provisions related to the delegated-assembly exemption for heavy-duty highway engines as part of the effort to apply these provisions to Small SI engines, as described in Section V.E.2. We are proposing to apply the new standards for Small SI engines to the comparable stationary engines. Section XII summarizes the projected impacts and benefits of this proposal. Finally, Sections XIII and XIV contain information about public participation and how we satisfy our various administrative requirements. II. Public Health and Welfare Effects The engines, vessels and equipment that would be subject to the proposed standards generate emissions of hydrocarbons (HC), nitrogen oxides (NOX), particulate matter (PM) and carbon monoxide (CO) that contribute to nonattainment of the National Ambient Air Quality Standards (NAAQS) for ozone, PM and CO. These engines, vessels and equipment also emit hazardous air pollutants (air toxics) that are associated with a host of adverse health effects. Emissions from these engines, vessels and equipment also contribute to visibility impairment and other welfare and environmental effects. The health and environmental effects associated with emissions from Small SI engines and equipment and Marine SI engines and vessels are a classic example of a negative externality (an activity that imposes uncompensated costs on others). With a negative externality, an activity's social cost (the cost on society imposed as a result of the activity taking place) exceeds its private cost (the cost to those directly engaged in the activity). In this case, as described in this section, emissions from Small SI engines and equipment and Marine SI engines and vessels impose public health and environmental costs on society. The market system itself cannot correct this externality. The end users of the equipment and vessels are often unaware of the environmental impacts of their use for lawn care or recreation. Because of this, consumers fail to send the market a signal to provide cleaner equipment and vessels. In addition, producers of these engines, equipment, and vessels are rewarded for emphasizing other aspects of these [[Page 28106]] products (e.g., total power). To correct this market failure and reduce the negative externality, it is necessary to give producers social cost signals. The standards EPA is proposing will accomplish this by mandating that Small SI engines and equipment and Marine SI engines and vessels reduce their emissions to a technologically feasible limit. In other words, with this proposed rule the costs of the services provided by these engines and equipment will account for social costs more fully. This section summarizes the general health and welfare effects of these emissions. Interested readers are encouraged to refer to the Draft RIA for more in-depth discussions. A. Ozone Ground-level ozone pollution is formed by the reaction of volatile organic compounds (VOC), of which HC are the major subset, and NOX in the lower atmosphere in the presence of heat and sunlight. These pollutants, often referred to as ozone precursors, are emitted by many types of pollution sources, such as highway and nonroad motor vehicles and engines (including those subject to this proposed rule), power plants, chemical plants, refineries, makers of consumer and commercial products, industrial facilities, and smaller area sources. The engine, vessel and equipment controls being proposed will reduce VOCs and NOX. The science of ozone formation, transport, and accumulation is complex.\10\ Ground-level ozone is produced and destroyed in a cyclical set of chemical reactions, many of which are sensitive to temperature and sunlight. When ambient temperatures and sunlight levels remain high for several days and the air is relatively stagnant, ozone and its precursors can build up and result in more ozone than typically would occur on a single high-temperature day. Ozone also can be transported into an area from pollution sources found hundreds of miles upwind, resulting in elevated ozone levels even in areas with low VOC or NOX emissions. --------------------------------------------------------------------------- \10\ U.S. EPA. Air Quality Criteria for Ozone and Related Photochemical Oxidants (Final). U.S. Environmental Protection Agency, Washington, DC, EPA/600/R-05/004aF-cF, 2006. This document is available in Docket EPA-HQ-OAR-2004-0008. --------------------------------------------------------------------------- The current ozone NAAQS, established by EPA in 1997, has an 8-hour averaging time.\11\ The 8-hour ozone NAAQS is based on well-documented science demonstrating that more people were experiencing adverse health effects at lower levels of exertion, over longer periods, and at lower ozone concentrations than addressed by the previous one-hour ozone NAAQS. The current ozone NAAQS addresses ozone exposures of concern for the general population and populations most at risk, including children active outdoors, outdoor workers, and individuals with pre-existing respiratory disease, such as asthma. The 8-hour ozone NAAQS is met at an ambient air quality monitoring site when the average of the annual fourth-highest daily maximum 8-hour average ozone concentration over three years is less than or equal to 0.084 parts per million (ppm). --------------------------------------------------------------------------- \11\ EPA's review of the ozone NAAQS is underway and a proposal is scheduled for June 2007 with a final rule scheduled for March 2008. --------------------------------------------------------------------------- (1) Health Effects of Ozone The health and welfare effects of ozone are well documented and are assessed in the EPA's 2006 ozone Air Quality Criteria Document (ozone AQCD) and staff paper.12 13 Ozone can irritate the respiratory system, causing coughing, throat irritation, and/or uncomfortable sensation in the chest. Ozone can reduce lung function and make it more difficult to breathe deeply, and breathing may become more rapid and shallow than normal, thereby limiting a person's activity. Ozone can also aggravate asthma, leading to more asthma attacks that require a doctor's attention and/or the use of additional medication. Animal toxicologic evidence indicates that with repeated exposure, ozone can inflame and damage the lining of the lungs, which may lead to permanent changes in lung tissue and irreversible reductions in lung function. People who are more susceptible to effects associated with exposure to ozone include children, the elderly, and individuals with respiratory disease such as asthma. There is also suggestive evidence that certain people may have greater genetic susceptibility. Those with greater exposures to ozone, for instance due to time spent outdoors (e.g., outdoor workers), are also of concern. --------------------------------------------------------------------------- \12\ U.S. EPA. Air Quality Criteria for Ozone and Related Photochemical Oxidants (Final). U.S. Environmental Protection Agency, Washington, DC, EPA/600/R-05/004aF-cF, 2006. This document is available in Docket EPA-HQ-OAR-2004-0008. \13\ U.S. EPA (2007) Review of National Ambient Air Quality Standards for Ozone, Assessment of Scientific and Technical Information, OAQPS Staff Paper, EPA-452/R-07-003. This document is available in Docket EPA-HQ-OAR-2004-0008. --------------------------------------------------------------------------- The recent ozone AQCD also examined relevant new scientific information that has emerged in the past decade, including the impact of ozone exposure on such health effects as changes