§ 86.1864-10 - How to comply with cold temperature fleet average standards.

§ 86.1864-10 How to comply with the cold temperature fleet average cold temperature NMHC standards.

Cross Reference

Link to an amendment published at 89 FR 28191, Apr. 18, 2024.

Calculating the fleet average cold temperature NMHC

(a) Applicability. Cold temperature NMHC exhaust emission standards apply to the following vehicles, subject to the phase-in requirements in § 86.1811-10(g)(3) and (4):

(1) 2010 and later model year LDV/LLDTs.

(2) 2012 and later model year HLDT/MDPVs.

(3) [Reserved]

(4) Vehicles imported by ICIs as defined in 40 CFR 85.1502.

(b) Useful life requirements. Full useful life requirements for cold temperature NMHC standards are defined in § 86.1805-04(g). There is not an intermediate useful life standard for cold temperature NMHC standards.

(c) Altitude. Altitude requirements for cold temperature NMHC standards are provided in § 86.1810-09(f).

(d) Small volume manufacturer certification procedures. Certification procedures for small volume manufacturers are provided in § 86.1838-01.

(e) Cold temperature NMHC standards. Fleet average cold temperature NMHC standards are provided in § 86.1811-10(g)(2).

(f) Phase-in. Phase-in of the cold temperature NMHC standards are provided in § 86.1811-10(g)(3) and (4).

(g) Phase-in flexibilities for small volume manufacturers. Phase-in flexibilities for small volume manufacturer compliance with the cold temperature NMHC standards are provided in § 86.1811-04(k)(5).

(h) Hardship provisions for small volume manufacturers. Hardship provisions for small volume manufacturers related to the cold temperature NMHC standards are provided in § 86.1811-04(q)(1).

(i) In-use standards for applicable phase-in models. In-use cold temperature NMHC standards for applicable phase-in models are provided in § 86.1811-10(u).

(j) Durability procedures and method of determining deterioration factors (DFs). The durability data vehicle selection procedures of § 86.1822-01 and the durability demonstration procedures of § 86.1823-06 apply for cold temperature NMHC standards. For determining compliance with full useful life cold temperature NMHC emission standards, the 68-86 °F, 120,000 mile full useful life NMOG DF may be used.

(k) Vehicle test procedure.

(1) The test procedure for demonstrating compliance with cold temperature NMHC standards is contained in subpart C of this part. With prior EPA approval, alternative testing procedures may be used, as specified in § 86.106-96(a), provided cold temperature NMHC emissions test results are equivalent or superior.

(2) Testing of all LDVs, LDTs and MDPVs to determine compliance with cold temperature NMHC exhaust emission standards set forth in this section must be on a loaded vehicle weight (LVW) basis, as defined in § 86.1803-01.

(3) Testing for the purpose of providing certification data is required only at low altitude conditions and only for vehicles that can operate on gasoline, except as requested in §§ 86.1810-09(f) and 86.1844-01(d)(11). If hardware and software emission control strategies used during low altitude condition testing are not used similarly across all altitudes for in-use operation, the manufacturer must include a statement in the application for certification, in accordance with §§ 86.1844-01(d)(11) and 86.1810-09(f), stating what the different strategies are and why they are used. If hardware and software emission control strategies used during testing with gasoline are not used similarly with all fuels that can be used in multi-fuel vehicles, the manufacturer will include a statement in the application for certification, in accordance with §§ 86.1844-01(d)(11) and 86.1810-09(f), stating what the different strategies are and why they are used. For example, unless a manufacturer states otherwise, air pumps used to control emissions on dedicated gasoline vehicles or multi-fuel vehicles during low altitude conditions must also be used to control emissions at high altitude conditions, and software used to control emissions or closed loop operation must also operate similarly at low and high altitude conditions and similarly when multi-fueled vehicles are operated on gasoline and alternate fuels. These examples are for illustrative purposes only; similar strategies would apply to other currently used emission control technologies and/or emerging or future technologies.

(l) Emission data vehicle (EDV) selection. Provisions for selecting the appropriate EDV for the cold temperature NMHC standards are provided in §§ 86.1828-10(g) and 86.1829-01(b)(3).

(m)

fleet average standards apply for NMHC or NMOG+NO_X emissions as described in § 86.1811. Certification testing provisions described in this subpart apply equally for meeting cold temperature exhaust emission standards except as specified.

(b) Calculating the cold temperature fleet average standard. Manufacturers must compute separate sales-weighted cold temperature fleet average

cold temperature NMHC

emissions at the end of the model year

for LDV/LLDTs and HLDT/MDPVs,

using actual sales

,

and certifying test groups to FELs, as defined in § 86.1803-01. The FEL becomes the standard for each test group, and every test group can have a different FEL. The certification resolution for the FEL

will be

is 0.1 grams/mile

. LDVs and LLDTs must be grouped together when calculating the fleet average, and HLDTs and MDPVs must also be grouped together to determine the fleet average. Manufacturers must compute

for NMHC and 0.010 grams/mile for NMOG+NO_X. Determine fleet average emissions separately for each set of vehicles subject to different fleet average emission standards. Do not include electric vehicles or fuel cell vehicles when calculating fleet average emissions. Starting with Tier 4 vehicles, determine fleet average emissions based on separate averaging sets for light-duty program vehicles and medium-duty vehicles. Convert units between mg/mile and g/mile as needed for performing calculations. Calculate the sales-weighted cold temperature

NMHC

fleet averages using the following equation, rounded to the nearest 0.1 grams/mile

:

Fleet average cold temperature NMHC exhaust emissions (grams/mile) = Σ(N × FEL) ÷ Total number of vehicles sold of the applicable weight category (i.e., either LDV + LLDTs, or HLDT + MDPVs)

for NMHC and to the nearest 0.001 grams/mile for NMOG+NO_X:

Equation 1 to Paragraph (b)

Where:

N = The number of

LDVs and LLDTs, or HLDTs and MDPVs, sold within the applicable FEL,

vehicles subject to a given fleet average emission standard based on vehicles counted

to (6)

at the point of first sale.

FEL = Family Emission Limit (grams/mile).

(n) Certification compliance and enforcement requirements for cold temperature NMHC standards.

(1) Compliance and enforcement requirements are provided in § 86.1864-10 and § 86.1848-10(c)(8).

(2) The certificate issued for each test group requires all vehicles within that test group to meet the emission standard or FEL to which the vehicles were certified.

(3) Each manufacturer must comply with the applicable cold temperature NMHC fleet average standard on a sales-weighted average basis, at the end of each model year, using the procedure described in paragraph (m) of this section.

(4) During a phase-in year, the manufacturer must comply with the applicable cold temperature NMHC fleet average standard for the required phase-in percentage for that year as specified in § 86.1811-10(g)(3) or (4).

(5) Manufacturers must compute separate cold temperature NMHC fleet averages for LDV/LLDTs and HLDT/MDPVs. The sales-weighted cold temperature NMHC fleet averages must be compared with the applicable fleet average standard.

Volume = Total number of vehicles sold from the applicable cold temperature averaging set.

(c) Certification compliance and enforcement requirements for cold temperature fleet average standards. Each manufacturer must comply on an annual basis with

the

fleet average standards as follows:

(

i

1) Manufacturers must report in their annual reports to the Agency that they met the relevant

corporate

fleet average standard by showing that their sales-weighted

average

cold temperature

NMHC emissions of LDV/LLDTs and HLDT/MDPVs, as applicable,

fleet average emissions are at or below the applicable fleet average standard

;(ii

for each averaging set.

(2) If the sales-weighted average is above the applicable fleet average standard, manufacturers must obtain and apply sufficient

NMHC

credits as permitted under paragraph (

o

d)(8) of this section. A manufacturer must show via the use of credits that they have offset any

exceedence

exceedance of the

corporate

cold temperature fleet average standard. Manufacturers must also include their credit balances or deficits.

(

iii

3) If a manufacturer fails to meet the

corporate average

cold temperature

NMHC

fleet average standard for two consecutive years, the vehicles causing the

corporate average exceedence

exceedance will be considered not covered by the certificate of conformity (see paragraph (

o

d)(8) of this section). A manufacturer will be subject to penalties on an individual-vehicle basis for sale of vehicles not covered by a certificate.

(

iv

4) EPA will review each manufacturer's sales to designate the vehicles that caused the

exceedence

exceedance of the

corporate

fleet average standard. EPA will designate as nonconforming those vehicles in test groups with the highest certification emission values first, continuing until reaching a number of vehicles equal to the calculated number of noncomplying vehicles as determined above. In a group where only a portion of vehicles would be deemed nonconforming, EPA will determine the actual nonconforming vehicles by counting backwards from the last vehicle produced in that test group. Manufacturers will be liable for penalties for each vehicle sold that is not covered by a certificate.

(

o

d)Requirements for the cold temperature

NMHC

averaging, banking, and trading (ABT) program.

(1) Manufacturers must average the cold temperature

NMHC

fleet average emissions of their vehicles and comply with the cold temperature

NMHC

fleet average

corporate

standard.

Manufacturers may generate credits during and after the phase-in period. Manufacturers may generate credits prior to the phase-in periods as described in paragraph (o)(5) of this section.

A manufacturer whose cold temperature

NMHC

fleet average emissions exceed the applicable standard must complete the calculation in paragraph (

o

d)(4) of this section to determine the size of its

NMHC

credit deficit. A manufacturer whose cold temperature

NMHC

fleet average emissions are less than the applicable standard must complete the calculation in paragraph (

o

d)(4) of this section to generate

NMHC

credits.

(2) There are no property rights associated with

NMHC

cold temperature credits generated under this subpart. Credits are a limited authorization to emit the designated amount of emissions. Nothing in this part or any other provision of law should be construed to limit EPA's authority to terminate or limit this authorization through

a

rulemaking.

(3)

Each manufacturer must comply with the reporting and recordkeeping requirements of paragraph (p) of this section for NMHC credits, including early credits. The averaging, banking and trading program is enforceable through the certificate of conformity that allows the manufacturer to introduce any regulated vehicles into commerce

The following transition provisions apply:

(i) Cold temperature NMHC credits may be used to demonstrate compliance with the cold temperature NMOG+NO_X emission standards for Tier 4 vehicles. The value of a cold temperature NMHC credit is deemed to be equal to the value of a cold temperature NMOG+NO_X credit.

(ii) Credits earned from any light-duty vehicles, light-duty trucks, and medium-duty passenger vehicles may be used for any light-duty program vehicles, even if they were originally generated for a narrower averaging set.

(4) Credits are earned on the last day of the model year. Manufacturers must calculate, for a given model year, the number of credits or debits it has generated according to the following equation, rounded to the nearest 0.1 vehicle-grams/mile:

NMHC

Equation 2 to Paragraph (d)(4)

Fleet average Credits or Debits = (

Cold Temperature NMHC Standard—Manufacturer's Sales-Weighted Fleet Average Cold Temperature NMHC

Standard−Emissions) ×

(Total Number of Vehicles Sold) Manufacturer's Sales-Weighted Fleet Average Cold Temperature NMHC Emissions = average

Volume

Where:

Cold Temperature NMHC Standard = 0.3 grams/mile for LDV/LLDTs or 0.5 grams/mile for HLDT/MDPV, per § 86.1811-10(g)(2).

Standard = the cold temperature NMHC or NMOG+NO_X standard.

Emissions = the manufacturer's sales-weighted cold temperature fleet average emissions, calculated according to paragraph (

m

b) of this section.

Total Number of Vehicles Sold = Total 50-State sales

Volume = total number of 50-state vehicles sold, based on the point of first sale.

(5)

The following provisions apply for early banking:(i) Manufacturers may certify LDV/LLDTs to the cold temperature

NMHC

exhaust standards in § 86.1811-10(g)(2) for model years 2008-2009 to bank credits for use in the 2010 and later model years. Manufacturers may certify HLDT/MDPVs to the cold temperature NMHC exhaust standards in § 86.1811-10(g)(2) for model years 2010-2011 to bank credits for use in the 2012 and later model years.

(ii) This process is referred to as “early banking” and the resultant credits are referred to as “early credits.” To bank early credits, a manufacturer must comply with all exhaust emission standards and requirements applicable to LDV/LLDTs and/or HLDT/MDPVs. To generate early credits, a manufacturer must separately compute the sales-weighted cold temperature NMHC average of the LDV/LLDTs and HLDT/MDPVs it certifies to the exhaust requirements and separately compute credits using the calculations in paragraph (o)(4) of this section. Early HLDT/MDPV credits may not be applied to LDV/LLDTs before the 2010 model year. Early LDV/LLDT credits may not be applied to HLDT/ MDPV before the 2012 model year.

(6) NMHC credits are not

and NMOG+NO_X credits are not subject to any discount or expiration date except as required under the deficit carryforward provisions of paragraph (

o

d)(8) of this section. There is no discounting of unused credits. NMHC and NMOG+NO_X credits have unlimited lives, subject to the limitations of paragraph (

o

d)(2) of this section.

(

7

6) Credits may be used as follows:

(i) Credits generated and calculated according to the method in paragraph (

o

d)(4) of this section may be used only to offset deficits accrued with respect to the standard in § 86.1811-10(g)(2). Credits may be banked and used in a future model year in which a manufacturer's average cold temperature

NMHC

fleet average level exceeds the applicable standard. Credits may be exchanged

between the LDT/LLDT and HLDT/MDPV fleets of a given manufacturer

only within averaging sets. Credits may also be traded to another manufacturer according to the provisions in paragraph (

o

d)(9) of this section. Before trading or carrying over credits to the next model year, a manufacturer must apply available credits to offset any credit deficit, where the deadline to offset that credit deficit has not yet passed.

(ii) The use of credits shall not be permitted to address Selective Enforcement Auditing or in-use testing failures. The enforcement of the averaging standard occurs through the vehicle's certificate of conformity. A manufacturer's certificate of conformity is conditioned upon compliance with the averaging provisions. The certificate will be void ab initio if a manufacturer fails to meet the corporate average standard and does not obtain appropriate credits to cover its shortfalls in that model year or in the subsequent model year (see deficit carryforward provision in paragraph (

o

d)(8) of this section). Manufacturers must track their certification levels and sales unless they produce only vehicles certified with FELs at or below the applicable to cold temperature

NMHC

fleet average levels below the standard and

do not plan to bank credits

have chosen to forgo credit banking.

(

8

7) The following provisions apply if debits are accrued:

(i) If a manufacturer calculates that it has negative credits (also called “debits” or a “credit deficit”) for a given model year, it may carry that deficit forward into the next model year. Such a carry-forward may only occur after the manufacturer exhausts any supply of banked credits. At the end of that next model year, the deficit must be covered with an appropriate number of credits that the manufacturer generates or purchases. Any remaining deficit is subject to an enforcement action, as described in this paragraph (

o

d)(8). Manufacturers are not permitted to have a credit deficit for two consecutive years.

(ii) If debits are not offset within the specified time period, the number of vehicles not meeting the cold temperature fleet average

cold temperature NMHC

standards (and therefore not covered by the certificate) must be calculated by dividing the total amount of debits for the model year by the cold temperature fleet average

cold temperature NMHC

standard applicable for the model year in which the debits were first incurred.

(iii) EPA will determine the number of vehicles for which the condition on the certificate was not satisfied by designating vehicles in those test groups with the highest certification cold temperature NMHC or NMOG+NO_X emission values first and continuing until reaching a number of vehicles equal to the calculated number of noncomplying vehicles as determined above. If this calculation determines that only a portion of vehicles in a test group contribute to the debit

situation

,

then

EPA will designate actual vehicles in that test group as not covered by the certificate, starting with the last vehicle produced and counting backwards.

(iv)

(A) If a manufacturer ceases production of

LDV/LLDTs and HLDT/MDPVs

vehicles affected by a debit balance, the manufacturer continues to be responsible for offsetting any debits outstanding within the required time period. Any failure to offset the debits will be considered a violation of paragraph (

o

d)(8)(i) of this section and may subject the manufacturer to an enforcement action for sale of vehicles not covered by a certificate, pursuant to paragraphs (

o

d)(8)(ii) and (iii) of this section.

(B) If a manufacturer is purchased by, merges with, or otherwise combines with another manufacturer, the controlling entity is responsible for offsetting any debits outstanding within the required time period. Any failure to offset the debits will be considered a violation of paragraph (

o

d)(8)(i) of this section and may subject the manufacturer to an enforcement action for sale of vehicles not covered by a certificate, pursuant to paragraphs (

o

d)(8)(ii) and (iii) of this section.

(v) For purposes of calculating the statute of limitations, a violation of the requirements of paragraph (

o

d)(8)(i) of this section, a failure to satisfy the conditions upon which a certificate(s) was issued and hence a sale of vehicles not covered by the certificate, all occur upon the expiration of the deadline for offsetting debits specified in paragraph (

o

d)(8)(i) of this section.

(

9

8) The following provisions apply

to NMHC credit trading

for trading cold temperature credits:

(i) EPA may reject

NMHC

credit trades if the involved manufacturers fail to submit the credit trade notification in the annual report. A manufacturer may not sell credits that are not available for sale pursuant to the provisions in paragraphs (

o

d)(7)(i) of this section.

(ii) In the event of a negative credit balance resulting from a transaction that a manufacturer could not cover by the reporting deadline for the model year in which the trade occurred, both the buyer and seller are liable, except in cases involving fraud by either the buyer or seller. EPA may void ab initio the certificates of conformity of all engine families participating in such a trade.

(iii) A manufacturer may only trade credits that it has generated pursuant to paragraph (

o

d)(4) of this section or acquired from another party.

(p) Reporting and recordkeeping. Keep records and submit information for demonstrating compliance with the fleet average cold temperature NMHC standard as described in § 86.1862-04.

[72 FR 8567, Feb. 26, 2007, as amended at 76 FR 19874, Apr. 8, 2011; 79 FR 23736, Apr. 28, 2014[89 FR 28191, Apr. 18, 2024]