§ 89.203-96 - General provisions.

(a) The averaging, banking, and trading program for NOX emissions from eligible nonroad engines is described in this subpart. Participation in this program is voluntary.

(b) A nonroad engine family is eligible to participate in the averaging, banking, and trading program for NOX emissions if it is subject to regulation under subpart B of this part with certain exceptions specified in subsection (c) of this section. No averaging, banking, and trading program is available for meeting the HC, CO, PM, or smoke emission standards specified in subpart B of this part.

(c) Nonroad engines may not participate in the averaging, banking, and trading program if they are subject to state engine emission standards, are exported, or use an alternate or special test procedure under § 89.114-96.

(d) A manufacturer may certify one or more nonroad engine families at family emission limits (FELs) above or below the applicable emission standard, provided the summation of the manufacturer's projected balance of all credit transactions in a given model year is greater than or equal to zero, as determined under § 89.207-96.

(1) FELs for NOX may not exceed 14.6 grams per kilowatt hour.

(2) An engine family certified to an FEL is subject to all provisions specified in subparts B, D, E, G, H, I, J, and K of this part, except that the applicable FEL replaces the NOX emission standard for the family participating in the averaging, banking, and trading program.

(3) A manufacturer of an engine family with an FEL exceeding the applicable emission standard must obtain emission credits sufficient to address the associated credit shortfall via averaging, banking, or trading.

(4) An engine family with an FEL below the applicable standard may generate emission credits for averaging, banking, trading, or a combination thereof. Emission credits may not be used to offset an engine family's emissions that exceed its applicable FEL. Credits may not be used to remedy nonconformity determined by a Selective Enforcement Audit (SEA) or by recall (in-use) testing. However, in the case of an SEA failure, credits may be used to allow subsequent production of engines for the family in question if the manufacturer elects to recertify to a higher FEL.

(e) Credits generated in a given model year may be used in the following three model years. Credits not used by the end of the third model year after being generated are forfeited. Credits generated in one model year may not be used for prior model years.

(f) Manufacturers must demonstrate compliance under the averaging, banking, and trading program for a particular model year by 270 days after the model year. Engine families without an adequate amount of emission credits will violate the conditions of the certificates of conformity. The certificates of conformity may be voided ab initio under § 89.126-96(c) for those engine families.