Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Applicability.
The 1998 to 2009 model year small off-road engines subject to the provisions of
this article are eligible to participate in the production emission credit
program described in this section for HC +NOx (or
NMHC+NOx, as applicable) and Particulate Matter
emissions. Previously banked production emission credits may continue to be
used until exhausted through calendar year 2010 but production credits
generated after model year 2009 will not be accepted into the production credit
program.
(b) General provisions.
(1) The production credit program for
eligible small off-road engines is described in this section. Participation in
this program is voluntary.
(2) Any
2000 to 2009 model year engine family subject to the provisions of this article
is eligible to participate in the production credit program described in this
section. Any 1998 or 1999 model year engine family subject to the provisions of
this article is eligible to participate in the production emissions credit
program described in this section provided it conforms to the requirements of
section 2403.
(3) Credits generated and used in the
certification averaging, banking, and trading program pursuant to the
provisions of section
2408 may not be used in the
production credit program.
(4) An
engine family with a compliance level, as determined by production line testing
pursuant to section
2407, below the applicable FEL to
which the engine family is certified may generate emission credits for
averaging, banking, or trading in the production credit program.
(5) Positive credits generated in a given
model year may be used in that model year and/or in any subsequent model year.
Positive credit generation may continue through the 2009 model year.
(6) All production credits will retain full
value through year 2010. In model year 2011, all production emission credit
balances will expire.
(c)
Averaging.
(1) A manufacturer may use
averaging across engine families to demonstrate a zero or positive credit
balance for a model year. Positive credits to be used in averaging may be
obtained from credits generated by another engine family of the same model
year, credits banked in previous model years, or credits obtained through
trading.
(2) Production emission
credits used for the certification emission credit program must be discounted
1.1 grams to 1 gram.
(d)
Banking.
(1) A manufacturer of an engine
family with a production compliance level below the FEL to which the engine
family is certified for a given model year may bank positive production credits
for that model year for use in certification averaging, trading, or, at the
Executive Officer's discretion, to remedy noncompliance of another engine
family.
(2) Unless otherwise
approved by the Executive Officer, a manufacturer that generates positive
production credits must wait 30 days after it has both completed production
testing for the model year for which the credits were generated and submitted
the report required by paragraph (g)(1) before it may bank credits for use in
future averaging or trading. During the 30 day period, the Executive Officer
will work with the manufacturer to correct any error in calculating banked
credits, if necessary.
(3) As
mentioned in paragraph (b)(6) of this section, production credits banked
pursuant to this section will expire as of the 2011 model year and will no
longer be available for use in averaging or trading.
(e) Trading.
(1) An engine manufacturer may exchange
positive production emission credits with other engine manufacturers through
trading.
(2) Production credits for
trading can be obtained from credits banked for model years prior to the model
year of the engine family requiring production credits.
(3) Traded production credits can be used for
certification averaging or banking.
(4) Unless otherwise approved by the
Executive Officer, a manufacturer that generates positive production credits
must wait 30 days after it has both completed production testing for the model
year for which the credits were generated and submitted the report required by
paragraph (g)(1) before it may transfer credits to another manufacturer or
broker.
(5) In the event of a
negative credit balance resulting from a transaction, both the buyer and the
seller are liable, except in cases involving fraud. Engine families
participating in a trade that leads to a negative credit balance may be subject
to suspension or revocation of the Executive Order if the engine manufacturer
having the negative credit balance is unable or unwilling to obtain sufficient
credits in the time allowed.
(f) Credit calculation. For each
participating engine family, and for each regulated pollutant
(HC+NOx (NMHC+NOx) and
Particulate Matter) emission credits (positive or negative) are to be
calculated according to the following equation and rounded to the nearest gram.
Consistent units are to be used throughout the equation:
Credits = (FEL - CL) x Sales x Power x EDP x Load
Factor
Where:
FEL = The applicable Family Emission level to which the
engine family was certified.
CL = compliance level of the deteriorated production line
testing results for the subject pollutant in g/bhp-hr or g/kW-hr as
applicable.
Sales = sales or eligible sales as defined in section
2401.
Power = the sales weighted maximum modal power, in
horsepower or kilowatts as applicable, as calculated from the applicable test
procedure as described in Section
2403. This is determined by
multiplying the maximum modal power of each configuration within the family by
its eligible sales, summing across all configurations and dividing by the
eligible sales of the entire family. Where testing is limited to certain
configurations designated by the Executive Officer, the maximum modal power for
the individual configuration(s) must be used. Manufacturers may use an
alternative if approved by the Executive Officer.
EDP = the Emissions Durability Period for which the engine
family was certified.
Load Factor = For Test Cycle A and Test Cycle B, the Load
Factor = 47% (i.e., 0.47). For Test Cycle C, the Load Factor = 85% (i.e.,0.85).
For approved alternate test procedures, the load factor must be calculated
according to the Load Factor formula found in paragraph (f)(1) of Section
2408.
(g) Maintenance of records.
(1) Any manufacturer that is participating in
the production credit program set forth in this section must establish,
maintain, and retain the records required by paragraph (h) of Section
2408 with respect to its
participation in the production credit program.
(2) The Executive Officer may void ab
initio an Executive Order for an engine family for which the
manufacturer fails to retain the records required under this section or to
provide such information to the Executive Officer upon request.
(h) Reporting requirements.
(1) Any manufacturer who participates in the
production credit program is required to submit a production credit report with
the end of the model year production testing report required under Section
2407 within 90 days of the end of
the production testing of a given model year's engine families. This report
must show the calculation of credits from all the production testing conducted
by the manufacturer for a given model year's engines. Such report must show the
applications of credits, the trading of credits, the discounting of credits
that are used and the final credit balance. The manufacturer may submit
corrections to such end of model year reports in a final report for a period of
up to 270 days after the end of the production testing of a given model year's
engine families.
(2) The
calculation of eligible sales (as defined in section
2401) for end-of-year and final
reports must be based on the location of the point of first retail sale (for
example, retail customer or dealer) also called the final product purchase
location. Upon advance written request, the Executive Officer will consider
other methods to track engines for credit calculation purposes, such as
shipments to distributors of products intended for sale in California, that
provide high levels of confidence that eligible sales are accurately
counted.
(3) Reports must be
submitted to: Chief, Emissions Certification and Compliance Division,
California Air Resources Board, 4001 Iowa Avenue, Riverside, CA
92507.
(4) A manufacturer that
fails to submit a timely end of year report as required in paragraph (h)(1) of
this section will be considered ineligible to have participated in the
production credit program.
(5) If
the Executive Officer or the manufacturer determines that a reporting error
occurred on an end of model year report previously submitted under this
section, or an engine family production testing report submitted under section
2407, the manufacturer's credits
and credit calculations will be recalculated. Erroneous positive credits will
be void. Erroneous negative credits may be adjusted by the Executive Officer.
An update of previously submitted "point of first retail sale" information is
not considered an error and no increase in the number of credits will be
allowed unless an actual error occurred in the calculation of credits due to an
error in the "point of first retail sale" information from the time of the
original end of model year report.
Note: Authority cited: Sections 39600, 39601, 43013,
43018, 43101, 43102 and 43104, Health and Safety Code. Reference: Sections
43013, 43017, 43018, 43101, 43102, 43104, 43150- 43154, 43205.5 and 43210-
43212, Health and Safety Code.
Note: Authority cited: Sections 39600, 39601, 43013,
43018, 43101, 43102 and 43104, Health and Safety Code. Reference: Sections
43013, 43017, 43018, 43101, 43102, 43104, 43150- 43154, 43205.5 and 43210-
43212, Health and Safety Code.
