Results of EPA's Section 610 Review of the Final Rule for Control of Emissions of Air Pollution from Nonroad Diesel Engines and Fuel
                                       
                 EPA Office of Transportation and Air Quality
                                September, 2014

	On June 29, 2004, (69 FR 38958), EPA published emission standards for nonroad diesel engines to reduce tailpipe emissions.  EPA implemented this rule primarily to significantly reduce emissions of diesel particulate matter (PM) emissions and of nitrogen oxides (NOx), a contributor to ozone formation.  The rulemaking also required refiners to very significantly reduce the sulfur content of the nonroad diesel fuel they produce, to minimize the damaging effects of diesel sulfur content on the new catalytic systems manufacturers would be using to meet the stringent emission standards.  

       Pursuant to Section 610 of the Regulatory Flexibility Act (RFA), EPA has completed a review of this rule to determine whether the provisions that could affect small entities should be continued without change, or should be rescinded or amended to minimize adverse economic impacts on small entities.  As discussed below, we have concluded that no changes in the rule are warranted. 
 
 Background
       
      As EPA began to develop the rule, we formally evaluated the potential impacts of the program on small businesses according to the requirements of the Small Business Regulatory Enforcement Fairness Act (SBREFA), which is part of the Regulatory Flexibility Act.  During this process, we assessed the potential impact of the rule on the  types of small companies that would be directly affected by the rule  -  nonroad diesel engine manufacturers, nonroad diesel equipment manufacturers, and the diesel fuel production and distribution industry (including diesel fuel refiners, importers, distributors, and marketers).  EPA determined that several companies in these categories met the SBA criteria as small entities, and we took the additional steps specified by SBREFA to identify and address concerns of these small entities.   A federal interagency Small Business Advocacy Review (SBAR) Panel convened and considered the available information from small entities and other sources.  The Panel made several recommendations for EPA to consider in the rule, and we proposed and took comment on these recommendations.  
      
      In the final rule, EPA adopted most of the recommendations of the Panel, finalizing special provisions for manufacturers of each horsepower category of nonroad engines and transition and hardship provisions for small manufacturers of nonroad equipment.  In addition, EPA also finalized transition provisions for small diesel fuel refiners and importers, and hardship provisions for all diesel fuel refiners and importers.  Although we did not conclude that special provisions were warranted for small diesel fuel distributors and marketers, we did finalize general provisions to relieve the compliance burden.   
      
Discussion of the Five Statutory Factors
      
      As discussed below, EPA has reviewed the 2004 Nonroad Diesel Engines and Fuel Rule with respect to the five factors set forth in Section 610 of the RFA.  
      
      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.  Emissions from nonroad diesel vehicles and their fuel contribute to ambient levels of ozone and PM, pollutants for which EPA has established health-based National Ambient Air Quality Standards (NAAQS).  These pollutants are linked with respiratory and/or cardiovascular problems and other adverse health impacts leading to increased medication use, hospital admissions, emergency department visits, and premature mortality.  Over 149 million people currently live in areas designated nonattainment for one or more of the current NAAQS.  Pollutant reductions from this rule are very large and continue to protect public health, improve air quality, and help states meet national air quality standards.  Specifically, we projected that by 2030, when the fleet will have largely turned over, the rule will reduce NOx annually by over 738,000 tons and PM by 129,000 tons.
      
      The provisions of the rule applying to all nonroad engine manufacturers and diesel fuel refiners and their related industries have proven to be feasible and effective.  EPA concludes that the rule continues to be necessary, feasible, and effective.
      
      2.  Nature of Complaints or Comments Received Concerning the Rule
      
      EPA did not receive any comments during the public comment period for this Section 610 review.  
	
      3.  Complexity of the Rule
      
      The Agency must also consider the complexity of the rule under review.  Although cost-effectively achieving the air pollution improvements of the program required us to establish a number of regulatory provisions, we carefully coordinated the various requirements and worked with industry participants, large and small, to facilitate implementation.  The rule also included a number of provisions aimed at easing the burden of compliance for all affected nonroad engine and equipment manufacturers and nonroad diesel fuel refiners, including small refiners. 
      
      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 rule overlaps, duplicates, or conflicts with other Federal, State, or local government rules.  As with previous diesel engine and fuel regulations, we specifically designed the requirements and phase-in schedule for the nonroad diesel engine and fuel program to build on the existing Federal programs and to mesh with and complement diesel engine-related programs in California and other states.  Similarly, we designed the phase-in for the diesel fuel sulfur requirements and the small refiner provisions to transition smoothly and to coexist with the earlier Tier 2 gasoline sulfur and highway diesel fuel sulfur requirements, so that refiners could integrate the implementation of both programs.  We are not aware of any overlap, duplication, or conflict with other similar programs administered by EPA or other agencies.
      
      5.  Relevant Changes to Technology, Economic Conditions, or Other Factors
      
      Finally, the Agency must consider the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule under review.  Refinery diesel sulfur reduction technology has continued to evolve over the past decade.   In addition, heavy-duty engine manufacturers have continuously improved their engine technologies, including emission-related technologies, over the years.  EPA does not believe that these changes, or the general economic fluctuations that the refining and engine/vehicle manufacturing industries have faced, have introduced any significant additional burdens on small entities subject to this rule.
      
Conclusion
      
      Based on EPA's Section 610 review of the 2004 Nonroad Diesel Engine and Diesel Fuel Sulfur final rule, as discussed in this document, EPA is not making any amendments to the rule.  As part of any future rulemakings related to these industries, EPA will continue to work with small-entity representatives to minimize any potential unfavorable impacts on these companies while meeting the need for emission reductions.
      
      

