
[Federal Register Volume 81, Number 130 (Thursday, July 7, 2016)]
[Rules and Regulations]
[Pages 44212-44220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16045]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[EPA-HQ-OAR-2014-0866; FRL-9948-65-OAR]
RIN 2060-AS43


Standards of Performance for Stationary Compression Ignition 
Internal Combustion Engines

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is finalizing 
amendments to the standards of performance for stationary compression 
ignition (CI) internal combustion engines to allow manufacturers to 
design the engines so that operators can temporarily override 
performance inducements related to the emission control system for 
stationary CI internal combustion engines. The amendments apply to 
engines operating during emergency situations where the operation of 
the engine or equipment is needed to protect human life, and to require 
compliance with Tier 1 emission standards during such emergencies. The 
EPA is also amending the standards of performance for certain 
stationary CI internal combustion engines located in remote areas of 
Alaska.

DATES: This final rule is effective on September 6, 2016.

ADDRESSES: Docket: The EPA has established a docket for this action 
under Docket ID No. EPA-HQ-OAR-2014-0866. All documents in the docket 
are listed in the http://www.regulations.gov index. The EPA also relies 
on materials in Docket ID Nos. EPA-HQ-OAR-2008-0708, EPA-HQ-OAR-2010-
0295, and EPA-HQ-OAR-2011-1032, and incorporates those dockets into the 
record for this final rule.
    Although listed in the index, some information is not publicly 
available (e.g., confidential business information or other information 
whose disclosure is restricted by statute). Certain other material, 
such as copyrighted material, will be publicly available only in hard 
copy. Publicly available docket materials are available either 
electronically in http://www.regulations.gov or in hard copy at the EPA 
Docket Center, EPA WJC West Building, Room 3334, 1301 Constitution Ave. 
NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 
4:30 p.m., Monday through Friday, excluding federal holidays. The 
telephone number for the Public Reading Room is (202) 566-1744, and the 
telephone number for the Air Docket is (202) 566-1742. Visit the EPA 
Docket Center homepage at http://www.epa.gov/dockets for additional 
information about the EPA's public docket.
    In addition to being available in the docket, an electronic copy of 
this final rule will be available on the World Wide Web (WWW). 
Following signature, a copy of this final rule will be posted at the 
following address: http://www3.epa.gov/ttn/atw/icengines.

FOR FURTHER INFORMATION CONTACT: Ms. Melanie King, Energy Strategies 
Group, Sector Policies and Programs Division (D243-01), Environmental 
Protection Agency, Research Triangle Park, North Carolina 27711; 
telephone number: (919) 541-2469; facsimile number: (919) 541-5450; 
email address: king.melanie@epa.gov.

SUPPLEMENTARY INFORMATION: 
    Organization of this document. The information presented in this 
preamble is organized as follows:


[[Page 44213]]


I. General Background
II. Final Amendments
    A. Temporary Override of Inducements in Emergency Situations
    B. Remote Areas of Alaska
III. Public Comments and Responses
    A. Temporary Override of Inducements in Emergency Situations
    B. Remote Areas of Alaska
IV. Impacts of the Final Action
    A. Economic Impacts
    B. Environmental Impacts
V. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review, and 
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution or Use
    I. National Technology Transfer and Advancement Act (NTTAA)
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Congressional Review Act (CRA)

I. General Background

    On July 11, 2006, the EPA promulgated standards of performance for 
stationary CI internal combustion engines (71 FR 39154). These 
standards, known as new source performance standards (NSPS), implement 
section 111(b) of the Clean Air Act, and are issued for categories of 
sources that cause, or contribute significantly to, air pollution that 
may reasonably be anticipated to endanger public health or welfare. The 
standards are codified at 40 CFR part 60 subpart IIII. The standards 
apply to new stationary sources of emissions, i.e., sources whose 
construction, reconstruction, or modification begins after a standard 
for those sources is proposed. The NSPS for stationary CI internal 
combustion engines established limits on emissions of particulate 
matter (PM), nitrogen oxides (NOX), carbon monoxide (CO) and 
non-methane hydrocarbons (NMHC). The emission standards are generally 
modeled after the EPA's standards for nonroad and marine diesel 
engines. The nonroad CI engine standards are phased in over several 
years and have Tiers with increasing levels of stringency. The engine 
model year in which the Tiers take effect varies for different size 
ranges of engines. The Tier 4 final standards for new stationary non-
emergency and nonroad CI engines generally begin with either the 2014 
or 2015 model year.
    In 2011, the EPA finalized revisions to the NSPS for stationary CI 
engines that amended the standards for engines with a displacement 
greater than 10 liters per cylinder, and also for engines located in 
remote areas of Alaska (76 FR 37954, June 28, 2011). In this action, 
the EPA is finalizing amendments to the NSPS regarding performance 
inducements for Tier 4 engines and the criteria for defining remote 
areas of Alaska. The final amendments are discussed below.

II. Final Amendments

A. Temporary Override of Inducements in Emergency Situations

    Many Tier 4 final engines are equipped by the engine manufacturer 
with selective catalytic reduction (SCR) to reduce emissions of 
NOX. The consumable reactant in an SCR system is typically 
supplied as a solution of urea in water known as diesel exhaust fluid 
(DEF). Engines equipped with SCR generally include controls that limit 
the function of the engines if they are operated without DEF, or if the 
engine's electronic control module cannot otherwise confirm that the 
SCR system is properly operating. Such controls are generally called 
``inducements'' because they induce the operator to properly maintain 
the SCR emission control system. In normal circumstances, if 
inducements begin, the engine operator is expected to perform any 
necessary maintenance to avoid shutdown. Manufacturers as well as 
owners or operators of nonroad and stationary CI Tier 4 certified 
engines have raised concerns regarding the inducements being triggered 
and engines shutting down during emergency situations. Additional 
background on Tier 4 engines and this amendment can be found in the 
proposal for this rulemaking (80 FR 68808, November 6, 2015). On August 
8, 2014, the EPA promulgated provisions allowing manufacturers of 
nonroad engines certified to the emission standards in 40 CFR part 1039 
to give operators the means to temporarily override emission control 
inducements during qualified emergency situations, such as those where 
operation of the engine is needed to protect human life (79 FR 46356, 
August 8, 2014). These provisions, which are codified in 40 CFR 
1039.665, allow for auxiliary emission control devices (AECDs) that 
help to ensure proper function of engines in qualified emergency 
situations. AECDs are any element of design that senses temperature, 
motive speed, engine revolutions per minute, transmission gear, or any 
other parameter for the purpose of activating, modulating, delaying, or 
deactivating the operation of any part of the emission control system. 
The provisions of 40 CFR 1039.665 allow the engine manufacturer to 
include a dormant feature in the engine's control software that could 
be activated to override emission control inducements. In this action, 
the EPA is adopting those same provisions for stationary CI engines 
certified to the standards in 40 CFR part 1039 and used in qualified 
emergency situations. It is important to emphasize that the EPA is 
confident that Tier 4 engines will function properly in the vast 
majority of emergency situations. Thus, the EPA expects that AECDs 
allowed under this provision will rarely be activated. The EPA is 
adopting this provision merely as a precaution to ensure that 
stationary CI engines can continue to operate in emergency situations.
    The final amendments allow engine manufacturers to design into 
their stationary CI engines a dormant AECD that can be activated for up 
to 120 engine hours per use during a qualified emergency situation to 
prevent emission controls from interfering with engine operation. The 
EPA is finalizing amendments that allow engine manufacturers to offer, 
and operators to request, re-activations of the AECD for additional 
time in increments of 120 engine hours in cases of a prolonged 
emergency situation. During the emergency situation, the engine must 
meet the Tier 1 emission standard in 40 CFR 89.112 that applies to the 
engine's rated power. Operators activating the AECD will be required to 
report the incident to the engine manufacturers, and engine 
manufacturers will submit an annual report to the EPA summarizing the 
use of these AECDs during the prior year. These final amendments are 
discussed in more detail below.
1. Definition of Qualified Emergency Situation
    The EPA is using the definition of qualified emergency situation 
established in the August 8, 2014, amendments for nonroad engines. This 
definition is found in the introductory text to 40 CFR 1039.665 and is 
cross-referenced in the NSPS for stationary CI internal combustion 
engines, specifically in 40 CFR 60.4204(f). The definition specifies 
that a qualified emergency situation is one in which the condition of 
an engine's emission controls poses a significant direct or indirect 
risk to human life. An example

[[Page 44214]]

of a direct risk would be an emission control condition that inhibits 
the performance of an engine being used to rescue a person from a life-
threatening situation (for example, providing power to a medical 
facility during an emergency situation). An example of an indirect risk 
would be an emission control condition that inhibits the performance of 
an engine being used to provide electrical power to a data center that 
routes ``911'' emergency response telecommunications.
2. Basic AECD Criteria
    Section 1039.665 specifies provisions allowing for AECDs that are 
necessary to ensure proper function of engines and equipment in 
emergency situations. It also includes specific criteria that the 
engine manufacturer must meet to ensure that any adverse environmental 
impacts are minimized. These criteria are cross-referenced in the NSPS 
for stationary CI engines and are as follows:
     The AECD must be designed so that it cannot be activated 
more than once without the specific permission of the certificate 
holder. Reactivation of the AECD must require the input of a temporary 
code or equivalent security feature.
     The AECD must become inactive within 120 engine hours of 
becoming active. The engine must also include a feature that allows the 
operator to deactivate the AECD once the emergency is over.
     The manufacturer must show that the AECD deactivates 
emission controls (such as inducement strategies) only to the extent 
necessary to address the expected emergency situation.
     The engine controls must be configured to record in non-
volatile electronic memory the total number of activations of the AECD 
for each engine.
     The manufacturer must take appropriate additional steps to 
induce operators to report AECD activation and request resetting of the 
AECD. The EPA recommends including one or more persistent visible and/
or audible alarms that are active from the point when the AECD is 
activated to the point when it is reset.
     The manufacturer must provide purchasers with instructions 
on how to activate the AECD in emergency situations, as well as 
information about penalties for overuse.
3. Emission Standards During Qualified Emergency Situations
    The EPA is requiring stationary CI engines to meet different 
emission standards for the very narrow period of operation where there 
is an emergency situation with a risk to human life and the owner or 
operator is warned that the inducement is about to occur. The emission 
standards that apply when the AECD is activated during the qualified 
emergency situation are the Tier 1 standards in 40 CFR 89.112. Engine 
manufacturers indicated that meeting the Tier 2 or 3 standards in 40 
CFR 89.112 is not feasible because the base engine used in Tier 4 
configurations does not have exhaust gas recirculation (EGR), which is 
the engine design technology used to meet the Tier 2 and 3 standards. 
The EGR is not needed for Tier 4 because NOX is controlled 
by the SCR.\1\ The Tier 1 requirement applies only when there is a 
qualified emergency situation and bypass of inducements is necessary to 
ensure continued operation of the engine. Once the emergency situation 
has ended and the AECD is deactivated, the engine must comply with the 
otherwise applicable emission standard specified in 40 CFR 60.4202. 
Engine manufacturers must demonstrate that the engine complies with the 
Tier 1 standard when the AECD is activated when applying for 
certification of an engine equipped with an AECD.
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    \1\ See Document ID No. EPA-HQ-OAR-2014-0866-0010.
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4. Approval, Recordkeeping and Reporting for Engine Manufacturers
    Manufacturers may ask for approval of the use of emergency AECDs at 
any time; however, the EPA encourages manufacturers to obtain 
preliminary approval before submitting an application for 
certification. Otherwise, the EPA's review of the AECD, which may 
include many unique features, may delay the approval of the application 
for certification.
    The manufacturer is required to keep records to document the use of 
emergency AECDs until the end of the calendar year 5 years after the 
onset of the relevant emergency situation. The manufacturer must submit 
an annual compliance report to the EPA within 90 calendar days of the 
end of each calendar year in which it authorizes use of an AECD. The 
annual report must include a description of each AECD activation and 
copies of the reports submitted by owners or operators (or statements 
that an owner or operator did not submit a report, to the extent of the 
manufacturer's knowledge). If an owner or operator fails to report the 
use of an emergency AECD to the manufacturer, the manufacturer, to the 
extent it has been made aware of the AECD activation, must send written 
notification to the operator that failure to meet the submission 
requirements may subject the operator to penalties.
5. Engine Owner or Operator Requirements
    Owners or operators who purchase engines with this dormant feature 
will receive instructions from the engine manufacturer on how to 
activate the AECD in qualified emergency situations, as well as 
information about penalties for overuse. The EPA would consider 
appropriate use of this feature to be during a situation where 
operation of a stationary CI engine is needed to protect human life (or 
where impaired operation poses a significant direct or indirect risk to 
human life), and temporarily overriding emission controls enables full 
operation of the equipment. The EPA is adopting this provision to give 
operators the means to obtain short-term relief one time without the 
need to contact the engine manufacturer or the EPA. In a qualified 
emergency situation, delaying the activation to obtain approval could 
put lives at risk, and would be unacceptable. However, the EPA retains 
the authority to evaluate, after the fact, whether it was reasonable to 
judge that there was a significant risk to human life to justify the 
activation of the AECD. Where the EPA determines that it was not 
reasonable to judge (1) that there was a significant risk to human 
life; or (2) that the emission control strategy was curtailing the 
ability of the engine to perform, the owner or operator may be subject 
to penalties for tampering with emission controls. The owner or 
operator requirements also include a specific prohibition on operating 
the engine with the AECD beyond the time reasonably needed for such 
operation. The owner or operator may also be subject to penalties for 
tampering if they continue to operate the engine with the AECD once the 
emergency situation has ended or the problem causing the emission 
control strategy to interfere with the performance of the engine has 
been or can reasonably be fixed. Nevertheless, the EPA will consider 
the totality of the circumstances when assessing penalties, and retain 
discretion to reduce penalties where the EPA determines that an owner 
or operator acted in good faith.
    The owner or operator must send a written report to the engine 
manufacturer within 60 calendar days after activating an emergency 
AECD. If any consecutive reactivations occur, this report is still due 
60 calendar days from the first activation. The report must include:

[[Page 44215]]

     Contact name, mail and email addresses, and telephone 
number for the responsible company or entity.
     A description of the emergency situation, the location of 
the engine during the emergency, and the contact information for an 
official who can verify the emergency situation (such as a county 
sheriff, fire marshal, or hospital administrator).
     The reason for AECD activation during the emergency 
situation, such as the lack of DEF, or the failure of an emission-
related sensor when the engine was needed to respond to an emergency 
situation.
     The engine's serial number (or equivalent).
     A description of the extent and duration of the engine 
operation while the AECD was active, including a statement describing 
whether or not the AECD was manually deactivated after the emergency 
situation ended.
    Paragraph 40 CFR 1039.665(g) specifies that failure to provide this 
information to the engine manufacturer within the deadline is improper 
use of the AECD and is prohibited.

B. Remote Areas of Alaska

    The EPA is finalizing an amendment to the NSPS for stationary CI 
internal combustion engines that would align the definition of remote 
areas of Alaska with the definition currently used in the National 
Emission Standards for Hazardous Air Pollutants (NESHAP) for Stationary 
Reciprocating Internal Combustion Engines, which can be found at 40 CFR 
part 63, subpart ZZZZ. The amendment specifies that engines in areas 
that are accessible by the Federal Aid Highway System (FAHS) can be 
considered remote if each of the following conditions is met: (1) The 
only connection to the FAHS is through the Alaska Marine Highway 
System, or the stationary CI engine operation is within an isolated 
grid in Alaska that is not connected to the statewide electrical grid 
referred to as the Alaska Railbelt Grid; (2) at least 10 percent of the 
power generated by the engine on an annual basis is used for 
residential purposes; and (3) the generating capacity of the facility 
is less than 12 megawatts, or the engine is used exclusively for backup 
power for renewable energy. The Alaska Railbelt Grid is defined as the 
service areas of the six regulated public utilities that extend from 
Fairbanks to Anchorage and the Kenai Peninsula. These utilities are 
Golden Valley Electric Association; Chugach Electric Association; 
Matanuska Electric Association; Homer Electric Association; Anchorage 
Municipal Light & Power; and the City of Seward Electric System. 
Background on the provisions related to remote areas of Alaska can be 
found in the proposal for this rulemaking (80 FR 68808, November 6, 
2015).
    The following NSPS provisions that currently apply to stationary CI 
internal combustion engines for engines that are located in areas of 
Alaska that are not accessible by the FAHS will be extended to 
stationary CI internal combustion engines located in the areas 
identified above:
     Exemption for all pre-2014 model year engines from diesel 
fuel sulfur requirements (see 40 CFR 60.4216(d));
     Allowance for owners and operators of stationary CI 
engines to use engines certified to marine engine standards, rather 
than land-based nonroad engine standards (see 40 CFR 60.4216(b));
     No requirement to meet emission standards that would 
necessitate the use of aftertreatment devices for NOX, in 
particular, SCR (emission standards that are not based on the use of 
aftertreatment devices for NOX will apply) (see 40 CFR 
60.4216(c));
     No requirement to meet emission standards that would 
necessitate the use of aftertreatment devices for PM until the 2014 
model year (see 40 CFR 60.4216(c)); and
     Allowance for the blending of used lubricating oil, in 
volumes of up to 1.75 percent of the total fuel, if the sulfur content 
of the used lubricating oil is less than 200 parts per million and the 
used lubricating oil is ``on-spec,'' i.e., it meets the on-
specification levels and properties of 40 CFR 279.11 (see 40 CFR 
60.4216(f)).

III. Public Comments and Responses

    This section presents a summary of the public comments that the EPA 
received on the proposed amendments and the responses developed. The 
EPA received 7 public comments on the proposed rule. The comments can 
be obtained online from the Federal Docket Management System at http://www.regulations.gov.

A. Temporary Override of Inducements in Emergency Situations

    Comment: Two commenters supported the proposed amendment to allow 
manufacturers of stationary CI engines certified to the emission 
standards in 40 CFR part 1039 to give engine operators the means to 
temporarily override emission control inducements while operating in 
qualified emergency situations. One commenter noted the critical need 
for the proposed amendment to ensure that stationary CI engines, when 
used in emergency situations, may continue to operate to ameliorate the 
emergency and protect human life. The commenter noted that the EPA had 
already adopted the proposed provision for nonroad engines, and that it 
was essential for stationary engines as well. The commenter also 
supported the proposed amendment so that engines could be dual-
certified for both stationary and nonroad use, which reduces the cost 
and burden of certification.
    Response: No response necessary.
    Comment: One commenter supported the proposed definition of an 
emergency situation. Another commenter stated that the EPA should not 
impose any limitations on the operating time of an engine during an 
emergency situation, and noted that in the NESHAP for Stationary 
Reciprocating Internal Combustion Engines, emergencies are excluded 
from operating time limitations and should similarly be excluded here. 
The commenter stated that it is not necessary to newly incorporate a 
definition of a qualified emergency situation because there are 
applicable examples of emergency situations already provided in the 
definition of an emergency stationary internal combustion engine in the 
NSPS for stationary CI internal combustion engines. The commenter 
indicated that if the EPA believes it must finalize specific 
requirements for emergency operations, then the definition of a 
qualified emergency situation should be revised so that it is more 
generalized and more applicable to different types of emergency 
situations which would necessitate the operation of stationary CI 
engines. According to the commenter, the proposed definition of a 
qualified emergency situation and the associated examples of indirect 
and direct risk to human life apply very specifically to nonroad 
engines that are able to be transported. The commenter urged the EPA to 
acknowledge that the examples provided in 40 CFR 1039.665 are merely 
examples, and do not constitute limits on interpreting the definition 
of a qualified emergency situation for stationary CI engines. The 
commenter indicated the EPA should clarify that there are other 
possible emergency situations that might pose a risk to human life, or 
list additional examples.
    Response: The definition of emergency stationary internal 
combustion engine in the NSPS for stationary CI internal combustion 
engines, and the similar definition in the NESHAP for Stationary 
Reciprocating Internal Combustion Engines, defines a subcategory of 
engines that are subject to different standards, whether operating in 
an actual emergency or in other limited

[[Page 44216]]

non-emergency circumstances. The definition of a qualified emergency 
situation has a different purpose; it defines when the inducement can 
be overridden for a non-emergency engine. The definition of a qualified 
emergency situation where an inducement can be overridden is intended 
to be more limited to emergency situations where there is a significant 
direct or indirect risk to human life.
    The EPA does not agree with the commenter that the proposed 
definition is not sufficiently generalized and that the examples 
provided are not representative of stationary engines. One of the 
examples is ``an engine being used to provide electrical power to a 
data center that routes `911' emergency response telecommunications,'' 
which would likely be a stationary generator. The possible scenarios 
provided in the definition are merely examples and are not intended to 
be the only types of applications and situations that can qualify. The 
use of the word ``example'' in the definition is an indication that 
they are just examples and not limits on interpreting the definition. 
It would not be possible to provide examples of all of the potential 
uses of engines in qualified emergency situations.
    Comment: One commenter recommended that the initial period for AECD 
operation should be 15 days (360 hours) rather than the proposed 120 
hours, with follow-on increments of 120 hours activated by 
communications with the engine certificate holder. The commenter stated 
that the time limit should be designed to address a worst-case 
situation, such as a region-wide disaster and a remote area, where 
extended communications and/or supply chain disruptions may impact the 
engine operator and the certificate holder beyond 120 hours. According 
to the commenter, the threat of post-emergency analysis and punishment 
by the EPA will likely be sufficient to minimize overuse of the leeway 
provided by the proposed amendment.
    Another commenter opposed any hour limit during an emergency 
situation. According to the commenter, because emergencies are sudden, 
uncontrollable, and unlikely, there is no need to limit the amount of 
override time allowable to keep engines running during emergencies. The 
commenter also expressed concern about the procedures set forth for 
reactivation of the AECD, and urged the EPA to remove the requirements 
for resetting of the AECD. The commenter stated that the engine 
manufacturer is not the appropriately qualified entity to determine a 
facility's qualified emergency, and that there need not be such 
stringent requirements for activation of the AECD, since the EPA has 
the authority to evaluate after the fact whether or not it was 
reasonable to justify the qualified emergency.
    Response: The proposed definition of a qualified emergency 
situation specifies emergency situations for which an engine owner or 
operator may temporarily override emission control inducements. Should 
the engine owner or operator need to extend the override beyond the 
initial 120 hour period, it can work with the engine manufacturer to 
reset the AECD for additional time. Thus, the engine owner/operator 
will be able to override the emission controls throughout the duration 
of the qualified emergency situation. The limit on AECD activation 
periods and procedures for resetting the AECD are necessary to ensure 
that the time of the override is truly limited to the time necessary to 
address the emergency situation, and minimize excess emissions, which 
would lead to adverse environmental impacts. The commenters that 
suggested an initial 360 hour AECD activation period to address a 
``worst case scenario'' or an unlimited activation period did not 
provide any specific example of a qualified emergency situation of 
longer than 120 hours where the procedures for resetting the AECD could 
not have been followed, or explain why 360 hours represents a ``worst 
case scenario.'' The EPA's approach appropriately balances the need to 
provide regulatory relief in emergency circumstances with the need to 
deter overuse, and the EPA does not agree that an unlimited period is 
necessary or that a period of 360 hours or unlimited hours is 
preferable. In order to reactivate the AECD, the engine manufacturer is 
only required to have evidence that the emergency situation is 
continuing and is not required to judge if the situation is a 
qualifying emergency. As indicated in the proposal, it is expected that 
AECDs would be activated rarely, if ever, so the provisions are 
unlikely to impose a significant burden on engine owners/operators.
    Further, the EPA's decision to adopt requirements concerning 
initial AECD activation periods, reactivation and notification that are 
identical to such requirements in the nonroad engine rules is 
influenced by our desire to allow for dual certification of stationary 
and nonroad engines, which reduces the burden of the rule on engine 
manufacturers. The Truck and Engine Manufacturers Association noted in 
their public comments \2\ that the ability to dual certify nonroad and 
stationary engines reduces the number of engine families that a 
manufacturer must certify, reduces the number of engine models that 
dealers, distributors, and customers must inventory and manage, and 
reduces the number of engine families that the EPA must certify. 
According to the commenter, if the EPA were to foreclose the ability of 
manufacturers to continue to dual certify, significant costs and 
burdens would result. Given that the NSPS for stationary CI internal 
combustion engines places a great deal of the compliance demonstration 
burden on the engine manufacturer, it is reasonable to have the 
manufacturer's compliance obligations be as consistent as possible for 
stationary and nonroad engines.
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    \2\ EPA-HQ-OAR-2014-0866-0017.
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    Comment: One commenter supported the recordkeeping process outlined 
in the proposed rule. Another commenter disagreed with the proposed 
requirements for the engine owner/operator to send a written report to 
the engine manufacturer detailing the activation of the emergency AECD. 
According to the commenter, the engine manufacturer has no authority to 
enforce penalties or regulations promulgated by the EPA, and, 
therefore, the commenter did not think it made logical sense for 
owners/operators to be required to submit reports to the engine 
manufacturers, nor are the engine manufacturers qualified to determine 
what constitutes a qualified emergency situation at the affected 
facility. The commenter stated that using the engine manufacturers to 
collect reports and then report this information to the EPA is 
unprecedented and creates an unnecessary middleman. The commenter 
recommended that the proposed provisions be revised so that owners/
operators are required to report the information directly to the EPA, 
or to the appropriate permitting authority.
    Response: Similar to the limit on AECD activation periods and the 
procedures for resetting the AECD, the recordkeeping process is 
necessary to ensure the AECD is used in true emergencies only and 
prevent adverse environmental impacts. The proposed reporting 
provisions do not require engine manufacturers to enforce penalties or 
EPA regulations. Rather, they require that, in cases where the 
manufacturer is aware of use of the AECD, the manufacturer must make 
the engine owner/operator aware that they may be subject to penalties 
from the EPA for failing to report the use of the AECD. There are other 
situations in the regulations where an engine manufacturer is required 
to indicate that an owner/operator may be subject to

[[Page 44217]]

penalties, such as the labeling requirement in 40 CFR 1039.20. The 
commenter did not provide any information to show that it would be 
unreasonable for engine manufacturers to compile information on the use 
of AECDs, and the engine manufacturers have not objected to the 
requirement. As stated previously, it is expected that AECDs will be 
activated rarely, if ever, so the reporting provisions are unlikely to 
impose a significant burden on engine owners/operators or engine 
manufacturers.
    Comment: One commenter requested that the EPA clarify that 
manufacturers are not required to submit actual certification test-
based data to demonstrate that engines equipped with an AECD that helps 
to ensure proper function of engines in qualified emergency situations 
will meet the Tier 1 emission standards in 40 CFR 89.112 when the AECD 
is activated. According to the commenter, submittal of certification 
test-based data would be unduly expensive and burdensome for engine 
manufacturers and the EPA. The commenter recommended that engine 
manufacturers be allowed to demonstrate that an engine complies with 
the Tier 1 emission standards when the AECD is activated by submitting 
the conversion efficiencies for the Tier 4 engine's emission control 
systems and using good engineering judgement to demonstrate that the 
engine complies with the Tier 1 standard. Specifically, according to 
the commenter, manufacturers could compare the conversion efficiency 
with the Tier 4 emission standard for the engine to demonstrate that 
the engine would meet the Tier 1 emission standard if the emission 
control system is disabled. The commenter noted that the EPA allows the 
demonstration of compliance through means other than the generation of 
actual certification data for the not-to-exceed standards in part 1039. 
The commenter suggested specific edits to 40 CFR 60.4210(j) to help 
clarify the required demonstration.
    Response: The proposed rule was not intended to require 
certification test-based data to be submitted to demonstrate that the 
engines will meet the Tier 1 emission standards. The final rule 
includes language in 40 CFR 60.4210(j) to clarify that certification 
test-based data are not required for such demonstration. The intent of 
the provision is that engine manufacturers would demonstrate 
achievement of the Tier 1 emission standards at the time that the 
manufacturer applies for certification of the engine equipped with an 
AECD. Manufacturers must document that the engine complies with the 
Tier 1 emission standards when the AECD is activated and provide any 
relevant testing, engineering analysis, or other information in 
sufficient detail to support such statement when applying for 
certification (or amending an existing certificate) of an engine 
equipped with an AECD.

B. Remote Areas of Alaska

    Comment: Four commenters supported the proposed amendment to align 
the definition of remote areas of Alaska in the NSPS for stationary CI 
engines with the definition currently used in the NESHAP for Stationary 
Reciprocating Internal Combustion Engines. Commenters indicated that 
the proposed amendment would address the unique circumstances of 
engines located in remote areas of Alaska. No commenters opposed the 
proposed amendment.
    Response: No response necessary.
    Comment: One commenter requested that the EPA reconsider the 
effectiveness of, and need for, PM emission control equipment on new 
Tier 3 marine engines providing prime power in remote areas of Alaska. 
The commenter questioned the benefit of installing PM emission controls 
on engines certified to the Tier 3 marine engine standards, which have 
lower PM emissions than engines certified to the Tier 3 standards for 
nonroad engines. The commenter stated that it believes that the capital 
and operating cost, questionable reliability, and additional complexity 
resulting from the PM emission control requirement do not appear to be 
warranted or economically viable.
    Response: This comment is outside the scope of the proposal, which 
did not seek comment on the appropriateness of the PM emission control 
requirement in 40 CFR 61.4216(c) for remote areas of Alaska.

IV. Impacts of the Final Action

A. Economic Impacts

    The EPA does not expect any significant economic impacts as a 
result of this final rule. A significant economic impact for the 
amendment allowing the temporary override of inducements in emergency 
situations is not anticipated because AECDs are expected to be 
activated rarely (if ever), and, thus, the impacts to affected sources 
and consumers of affected output will be minimal.
    The economic impact from the change to the criteria for remote 
areas of Alaska will be a cost savings for owners or operators of 
engines that are located in the additional areas that will now be 
considered remote. The precise savings depends on the number and size 
of engines that will be installed each year. Information provided by 
the Alaska Energy Authority indicated that one to two new engines are 
expected to be installed each year. Information provided by the state 
of Alaska indicated that the expected initial capital cost savings per 
engine ranges from $28,000 to $163,000, depending on the size of the 
engine. There will also be annual operating and maintenance cost 
savings due to avoidance of the need to obtain and store DEF.

B. Environmental Impacts

    The EPA does not expect any significant environmental impacts as a 
result of the amendment to allow a temporary override of inducements in 
emergency situations. The AECDs are expected to be activated rarely (if 
ever) and will only affect emissions for a very short period.
    The EPA also does not expect significant environmental impacts as a 
result of the amendments to the criteria for remote areas of Alaska. As 
an example, allowing the use of a Tier 3 engine instead of a Tier 4 
engine would result in less reductions for a 250 horsepower (HP) 
stationary CI engine of 5.4 tons per year (tpy) of NOX, 0.1 
tpy of NMHC, 1.6 tpy of CO, and 0.3 tpy of PM, assuming the engine 
operates full time (8,760 hours per year).\3\ As stated previously, the 
state of Alaska estimates that only one to two new engines will be 
installed each year in the additional remote areas.
---------------------------------------------------------------------------

    \3\ Estimates are based on Tier 3 and Tier 4 emission factors 
for a 175-300 HP engine provided in Table A4 of Exhaust and 
Crankcase Emission Factors for Nonroad Engine Modeling--Compression-
Ignition. NR-009d. Assessment and Standards Division, Office of 
Transportation and Air Quality. U.S. Environmental Protection 
Agency. EPA-420-R-10-018. July 2010. http://www.epa.gov/otaq/models/nonrdmdl/nonrdmdl2010/420r10018.pdf.
---------------------------------------------------------------------------

V. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review, and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review.

[[Page 44218]]

B. Paperwork Reduction Act (PRA)

    The information collection activities in this rule have been 
submitted for approval to the OMB under the PRA. The Information 
Collection Request (ICR) document that the EPA prepared has been 
assigned EPA ICR number 2196.05. The only new information collection 
activity in this rule is the reporting by engine owners and operators 
and engine manufacturers that would occur if the AECD is activated 
during a qualified emergency situation. The EPA expects that it is 
unlikely that these AECDs will ever need to be activated. Therefore, 
the EPA estimates that there will be no additional burden from this 
reporting requirement.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for the 
EPA's regulations in 40 CFR are listed in 40 CFR part 9. When OMB 
approves this ICR, the Agency will announce that approval in the 
Federal Register and publish a technical amendment to 40 CFR part 9 to 
display the OMB control number for the approved information collection 
activities contained in this final rule. The OMB has previously 
approved the information collection activities contained in the 
existing regulations and has assigned OMB control number 2060-0590.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. As mentioned earlier in this preamble, 
the EPA is harmonizing the NSPS for stationary CI engines in this 
action with an existing rule issued by the EPA for nonroad CI engines. 
Thus, this action is reducing regulatory impacts to small entities as 
well as other affected entities. The EPA is also including additional 
remote areas of Alaska in the regulatory flexibility provisions already 
in the rule for remote areas of Alaska, which further reduces the 
burden of the existing rule on small entities and other affected 
entities. We have, therefore, concluded that this action will relieve 
regulatory burden for all directly regulated small entities.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. The action imposes no enforceable duty on any state, 
local, or tribal governments or the private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive Order 13175. It will not have substantial direct effects on 
tribal governments, on the relationship between the federal government 
and Indian tribes, or on the distribution of power and responsibilities 
between the federal government and Indian tribes, as specified in 
Executive Order 13175. This final rule would impose compliance costs 
primarily on engine manufacturers, depending on the extent to which 
they take advantage of the flexibilities offered. The final amendments 
to expand the areas that are considered remote areas of Alaska would 
reduce the compliance costs for owners and operators of stationary 
engines in those areas. Thus, Executive Order 13175 does not apply to 
this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not concern an environmental 
health risk or safety risk.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution or Use

    This action is not subject to Executive Order 13211 because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    The EPA believes that this action does not have disproportionately 
high and adverse human health or environmental effects on minority 
populations, low-income populations and/or indigenous peoples, as 
specified in Executive Order 12898 (59 FR 7629, February 16, 1994). The 
provisions being finalized in this action are designed to eliminate 
risks to human life and are expected to be used rarely, if at all, and 
will only affect emissions for a very short period. Other changes the 
EPA is finalizing have minimal effect on emissions.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. This action is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

List of Subjects in 40 CFR Part 60

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Intergovernmental relations, Reporting and 
recordkeeping requirements.

    Dated: June 28, 2016.
Gina McCarthy,
Administrator.
    For the reasons stated in the preamble, title 40, chapter I, part 
60 of the Code of the Federal Regulations is amended as follows:

PART 60--STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES

0
1. The authority citation for part 60 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

[[Page 44219]]

Subpart IIII--Standards of Performance for Stationary Compression 
Ignition Internal Combustion Engines

0
2. Amend Sec.  60.4201 by revising paragraph (f)(1) and adding 
paragraph (h) to read as follows:


Sec.  60.4201  What emission standards must I meet for non-emergency 
engines if I am a stationary CI internal combustion engine 
manufacturer?

* * * * *
    (f) * * *
    (1) Remote areas of Alaska; and
* * * * *
    (h) Stationary CI ICE certified to the standards in 40 CFR part 
1039 and equipped with auxiliary emission control devices (AECDs) as 
specified in 40 CFR 1039.665 must meet the Tier 1 certification 
emission standards for new nonroad CI engines in 40 CFR 89.112 while 
the AECD is activated during a qualified emergency situation. A 
qualified emergency situation is defined in 40 CFR 1039.665. When the 
qualified emergency situation has ended and the AECD is deactivated, 
the engine must resume meeting the otherwise applicable emission 
standard specified in this section.

0
3. Amend Sec.  60.4202 by revising paragraph (g)(1) to read as follows:


Sec.  60.4202  What emission standards must I meet for emergency 
engines if I am a stationary CI internal combustion engine 
manufacturer?

* * * * *
    (g) * * *
    (1) Remote areas of Alaska; and
* * * * *

0
4. Amend Sec.  60.4204 by adding paragraph (f) to read as follows:


Sec.  60.4204  What emission standards must I meet for non-emergency 
engines if I am an owner or operator of a stationary CI internal 
combustion engine?

* * * * *
    (f) Owners and operators of stationary CI ICE certified to the 
standards in 40 CFR part 1039 and equipped with AECDs as specified in 
40 CFR 1039.665 must meet the Tier 1 certification emission standards 
for new nonroad CI engines in 40 CFR 89.112 while the AECD is activated 
during a qualified emergency situation. A qualified emergency situation 
is defined in 40 CFR 1039.665. When the qualified emergency situation 
has ended and the AECD is deactivated, the engine must resume meeting 
the otherwise applicable emission standard specified in this section.

0
5. Amend Sec.  60.4210 by adding paragraph (j) to read as follows:


Sec.  60.4210  What are my compliance requirements if I am a stationary 
CI internal combustion engine manufacturer?

* * * * *
    (j) Stationary CI ICE manufacturers may equip their stationary CI 
internal combustion engines certified to the emission standards in 40 
CFR part 1039 with AECDs for qualified emergency situations according 
to the requirements of 40 CFR 1039.665. Manufacturers of stationary CI 
ICE equipped with AECDs as allowed by 40 CFR 1039.665 must meet all of 
the requirements in 40 CFR 1039.665 that apply to manufacturers. 
Manufacturers must document that the engine complies with the Tier 1 
standard in 40 CFR 89.112 when the AECD is activated. Manufacturers 
must provide any relevant testing, engineering analysis, or other 
information in sufficient detail to support such statement when 
applying for certification (including amending an existing certificate) 
of an engine equipped with an AECD as allowed by 40 CFR 1039.665.

0
6. Amend Sec.  60.4211 by adding paragraph (h) to read as follows:


Sec.  60.4211  What are my compliance requirements if I am an owner or 
operator of a stationary CI internal combustion engine?

* * * * *
    (h) The requirements for operators and prohibited acts specified in 
40 CFR 1039.665 apply to owners or operators of stationary CI ICE 
equipped with AECDs for qualified emergency situations as allowed by 40 
CFR 1039.665.

0
7. Amend Sec.  60.4214 by adding paragraph (e) to read as follows:


Sec.  60.4214  What are my notification, reporting, and recordkeeping 
requirements if I am an owner or operator of a stationary CI internal 
combustion engine?

* * * * *
    (e) Owners or operators of stationary CI ICE equipped with AECDs 
pursuant to the requirements of 40 CFR 1039.665 must report the use of 
AECDs as required by 40 CFR 1039.665(e).

0
8. Amend Sec.  60.4216 by revising paragraphs (b) through (d) and (f) 
to read as follows:


Sec.  60.4216  What requirements must I meet for engines used in 
Alaska?

* * * * *
    (b) Except as indicated in paragraph (c) of this section, 
manufacturers, owners and operators of stationary CI ICE with a 
displacement of less than 10 liters per cylinder located in remote 
areas of Alaska may meet the requirements of this subpart by 
manufacturing and installing engines meeting the requirements of 40 CFR 
parts 94 or 1042, as appropriate, rather than the otherwise applicable 
requirements of 40 CFR parts 89 and 1039, as indicated in Sec. Sec.  
60.4201(f) and 60.4202(g).
    (c) Manufacturers, owners and operators of stationary CI ICE that 
are located in remote areas of Alaska may choose to meet the applicable 
emission standards for emergency engines in Sec. Sec.  60.4202 and 
60.4205, and not those for non-emergency engines in Sec. Sec.  60.4201 
and Sec.  60.4204, except that for 2014 model year and later non-
emergency CI ICE, the owner or operator of any such engine that was not 
certified as meeting Tier 4 PM standards, must meet the applicable 
requirements for PM in Sec. Sec.  60.4201 and 60.4204 or install a PM 
emission control device that achieves PM emission reductions of 85 
percent, or 60 percent for engines with a displacement of greater than 
or equal to 30 liters per cylinder, compared to engine-out emissions.
    (d) The provisions of Sec.  60.4207 do not apply to owners and 
operators of pre-2014 model year stationary CI ICE subject to this 
subpart that are located in remote areas of Alaska.
* * * * *
    (f) The provisions of this section and Sec.  60.4207 do not prevent 
owners and operators of stationary CI ICE subject to this subpart that 
are located in remote areas of Alaska from using fuels mixed with used 
lubricating oil, in volumes of up to 1.75 percent of the total fuel. 
The sulfur content of the used lubricating oil must be less than 200 
parts per million. The used lubricating oil must meet the on-
specification levels and properties for used oil in 40 CFR 279.11.

0
9. Amend Sec.  60.4219 by adding in alphabetical order the definitions 
for ``Alaska Railbelt Grid'' and ``Remote areas of Alaska'' to read as 
follows:


Sec.  60.4219  What definitions apply to this subpart?

* * * * *
    Alaska Railbelt Grid means the service areas of the six regulated 
public utilities that extend from Fairbanks to Anchorage and the Kenai 
Peninsula. These utilities are Golden Valley Electric Association; 
Chugach Electric Association; Matanuska Electric Association; Homer 
Electric Association; Anchorage Municipal Light & Power; and the City 
of Seward Electric System.
* * * * *
    Remote areas of Alaska means areas of Alaska that meet either 
paragraph (1) or (2) of this definition.

[[Page 44220]]

    (1) Areas of Alaska that are not accessible by the Federal Aid 
Highway System (FAHS).
    (2) Areas of Alaska that meet all of the following criteria:
    (i) The only connection to the FAHS is through the Alaska Marine 
Highway System, or the stationary CI ICE operation is within an 
isolated grid in Alaska that is not connected to the statewide 
electrical grid referred to as the Alaska Railbelt Grid.
    (ii) At least 10 percent of the power generated by the stationary 
CI ICE on an annual basis is used for residential purposes.
    (iii) The generating capacity of the source is less than 12 
megawatts, or the stationary CI ICE is used exclusively for backup 
power for renewable energy.
* * * * *
[FR Doc. 2016-16045 Filed 7-6-16; 8:45 am]
 BILLING CODE 6560-50-P


