Results of Section 610 Review of Emission Standards

for Nonroad Compression-Ignition Engines

On October 23, 1998 (63 FR 56968), EPA promulgated a rule setting
emission standards for nonroad compression-ignition (CI) engines under
authority of Section 213 of the Clean Air Act. These standards are
codified in the Code of Federal Regulations at 40 CFR Part 89. Pursuant
to Section 610 of the Regulatory Flexibility Act, EPA has reviewed this
rule to determine if it should be continued without change, or should be
rescinded or amended to minimize adverse economic impacts on small
entities. EPA considered, and solicited comments on, the following
factors: (1) The continued need for the rule; (2) the nature of
complaints or comments received concerning the rule; (3) the complexity
of the rule; (4) the extent to which the rule overlaps, duplicates, or
conflicts with other Federal, State, or local government rules; and (5)
the degree to which technology, economic conditions, or other factors
have changed in the area affected by the rule. The results of EPA's
review are summarized here.

Background

The purpose of the requirements of emission standards and related
provisions for nonroad CI engines is to improve ambient air quality.
EPA’s authority for regulating nonroad engines and vehicles comes from
section 213 of the Clean Air Act as amended in 1990 (CAA or the Act).
Section 213 of the Act provides the criteria under which EPA should
promulgate standards for nonroad engines and vehicles and directs EPA to
revise the standards “from time to time” for such engines and
vehicles. EPA adopted the first standards for nonroad CI engines on June
17, 1994 (59 FR 31306). The October 1998 rule was EPA’s first action
to revise the standards for nonroad CI engines. A Notice of Proposed
Rulemaking was published in the Federal Register on September 24, 1997
(62 FR 50152) and the Final Rule was published on October 23, 1998 (63
FR 56968). These requirements are codified in 40 CFR Part 89.

The standards promulgated under the October 1998 rule took effect as
early as the 1999 model year and as late as the 2008 model year. The
standards cover a broad range of engines from just a few horsepower to
engines over 1,000 horsepower. The engines covered by the October 1998
rule are used in many different types of equipment applications
including generators, farm tractors, and a wide range of industrial and
construction equipment.

Regulatory Flexibility Act Section 610 Review

Pursuant to Section 610 of the Regulatory Flexibility Act, the Agency
has reviewed the October 1998 rule that set requirements for emission
standards and related provisions for nonroad CI engines. This review was
announced in the Regulatory Agenda on May 5, 2008 (73 FR 24761). In the
May 5 announcement, the Agency solicited comment on five factors that
are addressed below. No comments were received.

Discussion of Five Factors

1. Continued need for the rule

One of the factors that must be considered in a section 610 review is
the continued need for the rule under review. The Agency finds that
there is a continued need for the emission standards and related
provisions for nonroad CI engines. Many areas of the country do not meet
the National Ambient Air Quality Standards (NAAQS) for ozone or
particulate matter (PM2.5). Both of these environmental problems are
addressed in part by the October 1998 rule. In addition, the Agency has
taken another step beyond the October 1998 rule to further reduce
emissions from these same sources. Subsequent to the October 1998 rule,
EPA has adopted more stringent standards for the same regulated sources
(see 69 FR 38958, published June 29, 2004) that are scheduled to take
effect in the coming years, between 2008 and 2015.

2. Nature of complaints or comments received concerning the rule.

No public comments were received during the review period for the 1998
rule.

3. Complexity of the Rule

The Agency must also consider the complexity of the rule under review.
The  1998 rule included a number of provisions aimed at easing the
burden of compliance for both engine manufacturers and equipment
manufacturers, including provisions for equipment manufacturers, many of
which are small businesses, that allow the limited use of engines
meeting the previous emission standards during the initial years of the
program to help smooth the transition to the new standards. The rule
also included provisions that allow an equipment manufacturer to request
additional time to use engines meeting the previous emission standards
if the manufacturer can demonstrate it will face serious economic
hardship if relief is not granted. EPA believes that the transitional
flexibilities afforded by these provisions mitigate the implementation
complexity of the rule while meeting statutory objectives.

4. Extent to which the rule overlaps, duplicates, or conflicts with
other Federal, State, or local government rules

The Agency must also consider the extent to which the nonroad CI engine
rule overlaps, duplicates, or conflicts with other Federal, State, or
local government rules. The Agency believes the rules for nonroad CI
engines do not duplicate or conflict with any other rule. Under the CAA,
both EPA and the state of California are authorized to have emission
control program requirements programs covering these engines and,
indeed, both do now have programs. EPA worked closely with the state of
California in developing the October 1998 rule. The state of California
has subsequently adopted the same provisions for nonroad CI engines
subject to its control. (Under the CAA, only EPA can set standards for
engines used in farm and construction-related CI equipment below 175
horsepower.) Thus, the EPA program is fully necessary to achieve
national air quality objectives, and does not duplicate, conflict with,
or overlap unnecessarily with other programs.

5. The degree to which technology, economic conditions, or other factors
have changed in the area affected by the rule

Finally, the Agency must consider the length of time since the rule in
question has been evaluated, or the degree to which technology, economic
conditions, or other factors have changed in the area affected by the
rule under review. There have been a number of changes to and
improvements in CI engines since the late-1990s, some of them as a
direct result of the new emission standards. There also has been a
continual evolution in the number and type of products using these
engines. There are more engine and equipment product offerings today
than ever before and recently the economic impacts of off-shore engine
and equipment production, and engine imports, are becoming more
significant. However, the overall market remains strong. As part of
EPA’s ongoing work, the Agency continues to monitor the market and
evaluate the nonroad CI rule requirements. As mentioned above, we have
adopted a new set of emission requirements that will succeed the
standards adopted in the October1998 rule in the coming years, between
2008 and 2015. The most recent standards include provisions similar to
those from the October 1998 rule aimed at easing the burden of
compliance for both engine manufacturers and equipment manufacturers,
many of which are small businesses.

Conclusion

Equipment using nonroad CI engines continues to be a significant
contributor to ozone- and PM-related air pollution emission inventories.
The programs now in place have effectively reduced emission inventories
from nonroad CI engines and equipment. To ensure that these reductions
are maintained and that future nonroad CI engine and equipment
technology meets requirements, it is important to maintain the national
standards and related provisions established for such programs.
Furthermore, there is a statutory requirement for these standards and
related requirements. Without the nonroad CI rule, air pollutant
emissions from in-use equipment using such engines would be
substantially greater, having negative effects on human health and the
environment.

Based on EPA’s Section 610 review, including the fact that no comments
were received as a result of the review, no amendments based upon that
review are planned at this time. EPA expects that the current and future
rules for nonroad CI engines will be significant in helping to provide
emission inventory reductions needed in states with areas designated as
nonattainment areas under EPA’s NAAQS standards for ozone and PM.  As
part of any future rulemakings in this area, EPA will continue to work
with small-entity representatives to reduce unfavorable impacts to the
extent appropriate while meeting the need for emission reductions.

