[Federal Register Volume 84, Number 173 (Friday, September 6, 2019)]
[Proposed Rules]
[Pages 46909-46922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19092]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 80 and 1042

[EPA-HQ-OAR-2018-0638; FRL-9999-22-OAR]
RIN 2060-AU30


Marine Diesel Engine Emission Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
amend the national marine diesel engine program to provide relief 
provisions to address concerns associated with finding and installing 
certified Tier 4 marine diesel engines in certain high-speed commercial 
vessels. The proposed relief is in the form of additional lead time for 
qualifying engines and vessels. EPA is also making a technical 
correction to the diesel fuel regulations to allow fuel manufacturers 
and distributors to make distillate diesel fuel that complies with the 
global sulfur standard that applies internationally instead of the fuel 
standards that otherwise apply to distillate diesel fuel in the United 
States.

DATES: 
    Comments: Written comments must be received by October 21, 2019. 
Under the Paperwork Reduction Act (PRA), comments on the information 
collection provisions are best assured of consideration if the Office 
of Management and Budget (OMB) receives a copy of your comments on or 
before October 7, 2019.
    Public Hearing: There will be a public hearing September 20, 2019, 
in Bath, Maine. Inquire about arrangements for a public hearing using 
the contact information in FOR FURTHER INFORMATION CONTACT.

ADDRESSES: 
    Public hearing. We will hold a public hearing September 20, 2019 at 
the Maine Maritime Museum, 243 Washington Street, Bath, Maine 04530, 
(207) 443-1316. The hearing will start at 9:30 a.m. local time and 
continue until everyone has had a chance to speak.
    Public Participation: Public hearing: Hearing participants are 
invited to notify EPA of interest in presenting testimony at the public 
hearing; see FOR FURTHER INFORMATION CONTACT. We encourage commenters 
to provide a copy of oral testimony by email or in hard copy. EPA may 
ask clarifying questions during the oral presentations but will 
generally not respond to the presentations at the hearing. Written 
statements and supporting information submitted during the comment 
period will be considered with the same weight as oral comments and 
supporting information presented at the public hearing.
    Comments. Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2018-0638, at https://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e., on the web, cloud, or other file sharing 
system). For additional submission methods, the full EPA public comment 
policy, information about CBI or multimedia submissions, and general 
guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.
    Docket. EPA has established a docket for this action under Docket 
ID No. EPA-HQ-OAR-2018-0638. All documents in the docket are listed on 
the www.regulations.gov website. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, is not placed on the internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available either electronically in www.regulations.gov or 
in hard copy at Air and Radiation Docket and Information Center, EPA 
Docket Center, EPA/DC, EPA WJC West Building, 1301 Constitution Ave. 
NW, Room 3334, Washington, DC. The Public Reading Room is open from 
8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal 
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.

FOR FURTHER INFORMATION CONTACT: Alan Stout, Office of Transportation 
and Air Quality, Assessment and Standards Division (ASD), Environmental 
Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105; 
telephone number: (734) 214-4805; email address: stout.alan@epa.gov.

SUPPLEMENTARY INFORMATION:

Does this action apply to me?

    This action relates to marine diesel engines with rated power 
between 600 and 1,400 kW intended for installation on vessels flagged 
or registered in the United States, vessels that use those engines, and 
companies that manufacture, repair, or rebuild those engines and 
vessels. This action also relates to companies that produce and 
distribute distillate diesel fuel.
    Proposed categories and entities that might be affected include the 
following:

[[Page 46910]]



------------------------------------------------------------------------
                                                Examples of potentially
           Category            NAICS code \a\      affected entities
------------------------------------------------------------------------
Industry.....................          333618  Marine engine
                                                manufacturing.
                                       336611  Shipbuilding and
                                                repairing.
                                       324110  Petroleum refineries
                                                (including importers).
                                       424710  Petroleum bulk stations
                                                and terminals.
                                       493190  Other warehousing and
                                                storage-bulk petroleum
                                                storage.
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\a\ North American Industry Classification System (NAICS).

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely covered by these rules. 
This table lists the types of entities that we are aware may be 
regulated by this action. Other types of entities not listed in the 
table could also be regulated. To determine whether your activities are 
regulated by this action, you should carefully examine the 
applicability criteria in the referenced regulations. You may direct 
questions regarding the applicability of this action to the persons 
listed in the preceding FOR FURTHER INFORMATION CONTACT section.

I. Summary

    EPA's Final Rule for Control of Emissions of Air Pollution from 
Locomotive Engines and Marine Compression-Ignition Engines Less than 30 
Liters per Cylinder adopted Tier 4 emission standards for commercial 
marine diesel engines at or above 600 kW (73 FR 37096, June 30, 2008). 
These standards, which were expected to require the use of 
aftertreatment technology, phased in from 2014 to 2017, depending on 
engine power.\1\ Some boat builders have informed EPA that there are no 
certified Tier 4 engines with suitable performance characteristics for 
the vessels they need to build, specifically for high-speed commercial 
vessels that rely on engines with rated power between 600 and 1,400 kW 
that have high power density. To address these concerns, EPA is 
proposing to provide additional lead time for implementing the Tier 4 
standards for engines used in certain high-speed vessels. We are also 
proposing to streamline certification requirements to facilitate or 
accelerate certification of Tier 4 marine engines with high power 
density. Each of these elements is discussed in more detail in this 
proposal.
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    \1\ For engines up to 1,000 kW, compliance could be delayed for 
up to nine months, but no later than October 1, 2017.
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    EPA is also amending the diesel fuel regulations to allow fuel 
manufacturers and distributors to make distillate diesel fuel that 
complies with the global sulfur standard that applies internationally 
instead of the fuel standards that otherwise apply to distillate diesel 
fuel in the United States.
    EPA adopted emission standards for marine diesel engines and sulfur 
standards for marine fuels under Clean Air Act authority (42 U.S.C. 
7401-7671q). The amendments under consideration in this rule are 
covered by that same authority.

II. Regulatory Amendments To Allow for Distribution of Global Marine 
Fuel

    In this action, we are proposing changes to the regulations at 40 
CFR part 80, subpart I, to allow for distribution of distillate diesel 
fuel that complies with the 0.50 percent (5,000 ppm) global sulfur 
standard contained in Annex VI to the International Convention for the 
Prevention of Pollution from Ships (MARPOL Annex VI). The United States 
ratified MARPOL Annex VI and became a Party to this Protocol on October 
8, 2009. MARPOL Annex VI requires marine vessels operating globally to 
use fuel that meets the 0.50 percent sulfur standard starting January 
1, 2020, rather than the current standard of 3.50 percent sulfur 
(``global marine fuel''). For comparison, the MARPOL Annex VI standard 
is 0.10 percent sulfur for fuel used in vessels operating in designated 
Emission Control Areas (ECAs).\2\ As with ECA marine fuel, we need to 
amend 40 CFR part 80 to allow distribution of global marine fuel in the 
United States.
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    \2\ Designated Emission Control Areas for the United States 
include the North American ECA and the U.S. Caribbean Sea ECA. More 
specific descriptions may be found in EPA fact sheets: ``Designation 
of North American Emission Control Area to Reduce Emissions from 
Ships,'' EPA-420-F-10-015, March 2010, https://www.epa.gov/regulations-emissions-vehicles-and-engines/designation-north-american-emission-control-area-marine; and ``Designation of Emission 
Control Area to Reduce Emissions from Ships in the U.S. Caribbean,'' 
EPA-420-F-11-024, July 2011, https://www.epa.gov/regulations-emissions-vehicles-and-engines/designation-us-caribbean-emission-control-area-marine.
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    Until the 0.50 percent sulfur standard takes effect, global marine 
fuel has consistently been residual fuel, not distillate fuel. Other 
than ECA marine fuel, residual fuel is not subject to fuel sulfur 
standards under 40 CFR part 80. As a result, it has been unnecessary to 
adopt a provision allowing global marine fuel to exceed the ultra low-
sulfur diesel (ULSD) fuel sulfur standards. However, due to the high 
sulfur content of residual fuel, it will be common for global marine 
fuel to be a distillate fuel starting in 2020.\3\ U.S. refiners intend 
to supply product to meet the demand for global marine fuel.
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    \3\ Distillate fuels are subject to fuel sulfur standards for 
ULSD (15 ppm) and ECA marine fuel (1,000 ppm). In-use distillate 
fuels sold in the United States generally have sulfur content that 
is somewhat lower than these standards to accommodate regulatory 
compliance margins. According to the most recent data reported by 
the IMO Secretariat (MEPC 74/5/3, February 8, 2019), the average 
sulfur content of marine distillate marine fuel in 2018 was about 
700 ppm, with only 3.7% of samples exceeding 1,000 ppm. The average 
sulfur content of marine residual fuel was about 26,000 ppm, with 
about 82.5% of samples falling in the range of 20,000 ppm to 35,000 
ppm. Only about 0.5% of residual fuel samples exceeded 35,000 ppm 
and the rest of the samples, 17%, reported sulfur content less than 
20,000 ppm.
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    We are proposing several regulatory changes to accommodate the 
supply and distribution of distillate diesel fuel as global marine 
fuel. We are proposing to exempt such fuel from the prohibition against 
distributing distillate diesel fuel that exceeds the ULSD and ECA 
marine fuel sulfur standards. This exemption includes several 
conditions. (1) The fuel must not exceed 0.50 weight percent sulfur; 
(2) fuel manufacturers must designate the fuel as global marine fuel; 
(3) product transfer documents accompanying the fuel must identify it 
as global marine fuel; (4) global marine fuel must be segregated from 
other fuels that are subject to the diesel fuel standards in 40 CFR 
part 80, subpart I; (5) the fuel may not be used in any vehicles, 
engines, or equipment operating in the United States (including vessels 
operating in an ECA or ECA-associated area); and (6) manufacturers and 
distributors must meet conventional recordkeeping requirements. These 
proposed changes incorporate the global sulfur standard under MARPOL 
Annex VI and include compliance provisions that largely mirror what we 
currently require for the manufacturers and distributors of home 
heating oil, which is another class of distillate fuel not subject to 
diesel fuel standards under 40 CFR part 80. These proposed provisions 
create documentation oversight requirements that will help prevent 
global marine fuel

[[Page 46911]]

from being diverted into markets that are subject to ULSD or ECA marine 
standards.
    As noted above, the narrow set of amendments proposed in this rule 
are intended to remove a potential regulatory obstacle to the sale in 
the United States of marine fuel that meets MARPOL Annex VI global 
sulfur cap of 5,000 ppm. Separate from this rule, we will be 
considering broader questions about how best to implement the 2020 
global marine fuel standard.

III. Background for Amendments Related to Emission Standards for Marine 
Diesel Engines

    In 2008, EPA adopted Tier 3 and Tier 4 emission standards for new 
marine diesel engines with per-cylinder displacement less than 30 
liters (73 FR 37096, June 30, 2008). The Tier 3 standards were based on 
engine manufacturers' capabilities to reduce particulate matter (PM) 
and oxides of nitrogen (NOX) emissions with recalibration 
and other engine-based technologies. The Tier 4 standards were based on 
the application of catalytic aftertreatment technology, including 
selective catalytic reduction (SCR). These Tier 4 standards currently 
apply to commercial marine diesel engines with rated power at or above 
600 kW. The Tier 3 standards phased in for different engine sizes and 
power ratings from 2009 to 2014. The Tier 4 phase-in schedule applied 
these stringent standards starting in 2014 to engines at or above 2,000 
kW, which are most prevalent on large workboats that are less sensitive 
to engine size and weight concerns. The standards started to apply at 
the start of model year 2017 for engines from 1,000 to 1,400 kW, and on 
October 1, 2017 for engines from 600 kW to 999 kW. The schedule for 
applying the Tier 4 standards was intended to give engine manufacturers 
time to redesign and certify compliant engines, and to give boat 
builders time to redesign their vessels to accommodate the Tier 4 
engines, especially with respect to engine size and weight.
    The 600 kW threshold for applying the Tier 4 standards was intended 
to avoid aftertreatment-based standards for small vessels used for 
certain applications that were most likely to be designed for high-
speed operation with very compact engine installations. Most engines 
above 600 kW provide power for various types of workboats and larger 
passenger vessels whose performance is less dependent on the size and 
weight of the engine. We were aware that there would be some high-speed 
vessels with engines above 600 kW, but expected that engine 
manufacturers would be able to certify 600-1,400 kW engines and vessel 
manufacturers would be able to make the necessary vessel design changes 
during the nine-year period between the final rule and the 
implementation of the Tier 4 standards.
    In response to the proposal preceding the 2008 final rule, some 
commenters recommended that the Tier 4 standards apply to engines as 
small as 37 kW, since small land-based nonroad diesel engines were 
subject to similar aftertreatment-based standards. Other commenters 
advocated a vessel-based approach, for example exempting engines 
installed on patrol boats and ferries from the Tier 4 standards. 
However, engine manufacturers commented that a vessel-based approach 
would be unworkable because they would then need to certify engines for 
a range of vessel types. Several commenters affirmed the 600 kW 
threshold as appropriate, and no commenters suggested a higher 
threshold. As a result, EPA finalized the 600 kW threshold without 
further limiting the Tier 4 standards to particular vessel types.
    One manufacturer has certified Tier 4 engines below 1,400 kW, and 
there are no certified Tier 4 engines below 1,400 kW with a power 
density greater than 35 kW per liter (total engine displacement).\4\ 
This contrasts with engines available under EPA's Tier 3 commercial 
standards, which included several engine models with power densities 
exceeding 35 kW/liter displacement.
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    \4\ The discussion in this proposed rule is based on 
certification information as of June 2019. The discussion does not 
reflect new certifications in July 2019 or later. We encourage 
individual engine manufacturers to submit comments describing engine 
specifications for engine models that have certified or expect to 
certify, and how these Tier 4 engine models may be suitable for 
powering high-speed vessels.
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    Over the course of the last year, EPA staff have had several 
teleconferences and site visits to gather information and explore 
options for addressing concerns related to engine availability and 
meeting Tier 4 requirements.\5\ This has helped us to understand 
constraints, capabilities, processes, and concerns for engine 
manufacturers, vessel manufacturers, and others affected by the Tier 4 
standards.
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    \5\ ``Stakeholder Interactions in Anticipation of Proposing 
Additional Lead Time for Tier 4 Compliance for High-Speed Marine 
Vessels,'' EPA memorandum from Alan Stout to Docket EPA-HQ-OAR-2018-
0638, July 31, 2019.
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    EPA has learned that manufacturers of vessels for certain high-
speed commercial applications continue to face important challenges 
associated with the Tier 4 engine standards. These vessels have 
performance needs for achieving substantial propulsion power from a 
light-weight engine. In short, manufacturers have been looking for 
engines with higher power density than those certified to Tier 4 
standards. As engine manufacturers certify additional Tier 4 engines, 
vessel manufacturers will need time to evaluate those engine options 
and make changes to vessel designs to account for the changing engine 
parameters and specifications.
    EPA is proposing to allow additional lead time to address these 
concerns for high-speed vessels. This would allow engines installed on 
these vessels to continue to meet the Tier 3 standards, which would 
allow time for engine manufacturers to certify additional engine 
models, and for vessel manufacturers to make the necessary adjustments 
to their vessels.
    Note that the proposed provisions allowing additional lead time for 
EPA's Tier 4 marine diesel engine standards are distinct from the 
international engine emission standards that apply under Annex VI to 
the International Convention for the Prevention of Pollution from Ships 
(MARPOL Annex VI). The U.S. Coast Guard recently published a Work 
Instruction explaining its intention to defer enforcement of MARPOL 
Annex VI NOX standards for certain engines certified to EPA 
Tier 3 standards as long as MARPOL-compliant engines continue to be 
unavailable.\6\ That relief from emission standards is targeted at 
engines not subject to EPA's Tier 4 standards, especially engines with 
rated power between 130 and 600 kW. Because the domestic and 
international emission standards are adopted under different statutory 
authorities, and because the U.S. Coast Guard policy applies for 
engines not subject to EPA's Tier 4 standards, this proposed rule 
should have no bearing on the international standards. It is also the 
case that U.S. vessels operating only domestically are not subject to 
the standards adopted under MARPOL Annex VI (see 40 CFR 1043.10(a)(2)). 
As a result, the high-speed commercial vessels that are the subject of 
this proposed rule will not be subject to emission standards under 
MARPOL Annex VI as long as they do not navigate in foreign waters.
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    \6\ ``Exercise of Enforcement Discretion with regard to MARPOL 
Annex VI Regulation 13.5.1.2,'' USCG Office of Commercial Vessel 
Compliance (CG-CVC) Mission Management System (MMS) Work 
Instruction, CVC-WI-014(2), October 17, 2018.

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[[Page 46912]]

IV. Technical Discussion for Amendments Related to Emission Standards 
for Marine Diesel Engines

    As described above, EPA's Tier 4 marine diesel engine standards 
apply to commercial engines at or above 600 kW. With one exception, 
engine manufacturers have discontinued production of engine models 
instead of certifying those engines to the Tier 4 standards. This has 
prevented vessel manufacturers from being able to produce certain types 
of high-speed vessels. Complying with current standards poses technical 
and economic challenges for engine and vessel manufacturers. This also 
has economic consequences for end users who are not able to purchase 
vessels until they become available.

1. Boat Builder Challenges

    Manufacturers of certain high-speed vessels have described their 
challenges with finding certified Tier 4 engines and with modifying 
their vessel designs to accommodate Tier 4 engines once they become 
available.\7\ This applies for lobster boats, pilot boats, and various 
additional types of high-speed vessels.
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    \7\ ``Stakeholder Interactions in Anticipation of Proposing 
Additional Lead Time for Tier 4 Compliance for High-Speed Marine 
Vessels,'' EPA memorandum from Alan Stout to Docket EPA-HQ-OAR-2018-
0638, July 31, 2019.
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    Lobster Boats. When we adopted the Tier 4 standards in 2008, most 
if not all lobster boats used engines below 600 kW. Targeted lobster 
beds were typically located relatively close to shore. Lobster boats 
navigating in these areas have size and performance requirements that 
do not call for engines above 600 kW. Since 2008, however, it has 
become common to navigate to lobster beds 40 miles or farther from 
shore. The greater traveling distance necessitates more cargo space for 
a greater catch, and more speed to complete a day's work in a 
reasonable time. These factors caused a demand for larger vessels and 
more engine power, which led boat builders to install engines above 600 
kW in lobster boats. Prior to the Tier 4 standards taking effect in 
2017, engines for these lobster boats were subject to Tier 3 standards 
and thus required no aftertreatment technology. As a result, the 
lobster-boat engines needed for high speed and ocean navigation could 
fit into fiberglass hulls with minimal changes to fiberglass molds, or 
vessel design generally.
    Lobster boat builders looking to continue to install engines above 
600 kW that are now subject to Tier 4 standards need to prepare for 
more fundamental changes to vessel design to account for the room 
needed for additional emission control hardware, which raises other 
design issues. For example, onboard lobster tanks need to remain 
isolated from the reconfigured engine room and exhaust system to 
maintain low water temperature. However, lobster boat builders are not 
able to make substantial progress in redesigning their vessels until 
they have certified or prototype Tier 4 engines available. Once those 
engines are available, boat builders can undertake the anticipated 
effort to work out specific design needs for installing the Tier 4 
engines in each vessel, including any necessary sea trials. A memo to 
the docket describes some of the challenges related to designing 
lobster boats and other high-speed vessels with SCR-equipped 
engines.\8\
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    \8\ ``Technical Analysis for Amendments Related to Marine Diesel 
Engine Emission Standards,'' EPA memorandum from Cheryl Caffrey to 
Docket EPA-HQ-OAR-2018-0638, August 1, 2019.
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    Pilot Boats. Commercial ports depend on pilot boats to transport 
pilots to incoming ships (and from outgoing ships) several miles away 
from the port to safely navigate the ships through the shipping 
channels and within the port area. Vessel specifications are carefully 
tailored to the specific needs of a given port, accounting for a wide 
range of factors to ensure safe and effective operation under demanding 
conditions. As described above for lobster boats, building a vessel 
with a Tier 4 engine and its accompanying catalyst system requires 
design changes to handle the engine's greater size and weight. Use of a 
new Tier 4 engine and accompanying catalyst system requires a thorough 
reassessment of vessel design to accomplish a proper balance between 
vessel length and total propulsion power. For example, the vessel would 
need engines with higher maximum power output if the vessel's length, 
width, or depth increases to accommodate the new engine and the 
accompanying catalyst system. One parameter that helps solve the design 
challenge is the engine's power density. Increasing power density 
allows for more power without increasing total engine weight, which 
allows for increasing (or regaining) vessel speed. Tier 4 engines with 
the appropriate power ratings for pilot boats are available, but there 
are no ratings currently available with power density above 35 kW/liter 
displacement. As a result, the available Tier 4 engines are too large 
and heavy to allow vessels to meet performance specifications. As Tier 
4 engines between 600 and 1,400 kW become available, manufacturers of 
pilot boats can start to resolve these vessel design issues, but an 
acceptable solution may depend on the availability of Tier 4 engines 
that meet the need for higher power density.
    A complicating factor for pilot boats is other federal, state, or 
local programs that impose speed restrictions on vessels for certain 
vessel lengths. Specifically, pilot boats that operate in certain 
coastal areas are subject to whale-strike avoidance rules that are 
designed to protect migrating and calving right whales. In designated 
areas off the coast of Georgia, for example, vessels 65 feet and longer 
may not exceed an operating speed of 10 knots from November 1 to April 
30 each year.\9\ The whale-strike avoidance rules increase the demand 
for pilot boats that are less than 65 feet long. This additional 
constraint further complicates the challenge to design vessels with 
Tier 4 engines as the SCR emission control system takes up a 
significant amount of already limited space. Here again, the use of 
Tier 4 engines will require significant boat changes and more time is 
needed to resolve these challenges.
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    \9\ The whale-strike avoidance rule was originally adopted by 
the National Marine Fisheries Service on October 10, 2008 (73 FR 
60173). See 50 CFR part 224.105.
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    Other high-speed vessels. Other types of high-speed vessels may 
need relief. For example, one boat builder wants to build a high-speed 
research vessel for which there are no suitable Tier 4 engines 
available. The intended vessel would have a fiberglass hull and is 
otherwise similar to lobster boats, as described above. In addition, we 
are aware that there are any number of additional applications of high-
speed vessels that may need Tier 4 propulsion engines above 600 kW with 
high power density, such as law enforcement, fire-fighting, and charter 
fishing. Section V describes provisions to allow for additional lead 
time for engines and vessels meeting certain criteria focusing on high-
speed operation and the need for engines with high power density, 
rather than naming certain types of vessels. We request comment on the 
appropriateness of these proposed engine and vessel criteria to 
properly target temporary relief from the Tier 4 standards for the 
different types of high-speed vessels that are affected by the lack of 
certified engines that are suitable for those vessels. We also request 
comment on the annual numbers of each type of each vessel we should 
expect to be covered by this rule.
    Hovercraft, while not conventional high-speed vessels, may also be 
a more

[[Page 46913]]

challenging case for installing Tier 4 engines. Hovercraft devote 
substantial engine power to create lift in addition to powering fan 
blades for propulsion. These vessels are accordingly especially 
sensitive to engine weight. Installing engines with high power density 
is important to preserving hovercraft functionality. We request comment 
and any supporting information and data related to the use of Tier 4 
engines in hovercraft and on the potential need for relief from Tier 4 
standards for engines in hovercraft.
2. Engine Manufacturer Challenges
    Tier 4 marine diesel engine standards can be met through 
application of selective catalytic reduction (SCR) technology. SCR has 
been in widespread use for many years with a very wide range of engines 
and equipment applications. Adapting SCR systems to work with marine 
engines requires some additional design and development effort to 
produce catalyst systems that work properly and safely in a marine 
environment. Hundreds of marine vessels currently operate with SCR 
systems, most of which involved retrofitting engines with the 
aftertreatment technology. This includes more than 50 newbuild 
installations on U.S. vessels with certified Tier 4 engines that 
include SCR. Engine manufacturers have also designed and certified some 
engine models to Tier 4 standards using SCR technology. Some 
manufacturers of other marine engine models are also in the process of 
carrying out development programs for their engines using SCR 
technology, in part because of EPA's Tier 4 standards, but also because 
of the international Tier III NOX standard adopted by the 
International Maritime Organization (IMO) under MARPOL Annex VI. This 
``IMO Tier III NOX standard'' applies for vessels built in 
2016 and later that operate in the North American and U.S. Caribbean 
Sea Emission Control Areas.
    The IMO Tier III NOX standard was originally adopted in 
2008 to apply starting in 2016 for any future ECAs, including ECAs 
adopted for other countries. This would likely have led to widespread 
development of SCR-equipped marine engines certified to the IMO Tier 
III NOX standard. However, due to subsequent amendments, the 
IMO Tier III NOX standard applies in 2016 only for the North 
American and U.S. Caribbean Sea Emission Control Areas. The IMO Tier 
III NOX standard does not apply for engines on vessels built 
before 2021 when operating in the Baltic Sea and North Sea Emission 
Control Areas. If other countries designate additional Emission Control 
Areas, each one would have its own implementation date for the IMO Tier 
III NOX standard. This amendment to the international 
standard has delayed the schedule for developing SCR for marine engines 
and certifying engines to meet those standards.
    The combination of EPA standards and international NOX 
standards in the 2020-2021 time frame is expected to lead engine 
manufacturers to continue to develop, certify, and build marine engines 
with SCR. There are also European emission standards for inland 
waterways that will require manufacturers to design engines with 
aftertreatment technologies--SCR for meeting NOX standards 
and diesel particulate filters for meeting particulate number 
standards.\10\
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    \10\ Regulation (EU) 2016/1628 of the European Parliament and of 
the Council of 14 September 2016 on requirements relating to gaseous 
and particulate pollutant emission limits and type-approval for 
internal combustion engines for non-road mobile machinery, amending 
Regulations (EU) No. 1024/2012 and (EU) No 167/2013, and amending 
and repealing Directive 97/68/EC.
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    Certifying to EPA standards requires some development and 
demonstration that goes beyond what is required to meet the IMO Tier 
III NOX standard. For example, manufacturers certifying 
marine diesel engines to EPA standards must (1) meet PM, HC, and CO 
standards and (2) demonstrate that engines will continue to meet 
standards over the engine's defined regulatory useful life. As with 
NOX control, these additional EPA requirements do not pose 
insurmountable technical challenges, but they contribute to increasing 
the cost of certifying engines.

V. Proposed Relief Related to Emission Standards for Marine Diesel 
Engines

    To address the challenges described above, EPA is proposing 
revisions to our marine diesel engine emission control program for 
certain high-speed vessels and associated engines with rated power 
between 600 and 1,400 kW. These changes are intended to allow more time 
for engine manufacturers to certify additional engine models and for 
vessel manufacturers to design and build products that comply with Tier 
4 standards. We are also proposing to better align certification 
requirements with the characteristics of these engines, especially as 
it relates to demonstrating the durability of emission controls.

1. Adjusted Implementation Dates

    We are proposing to provide additional lead time for implementing 
the Tier 4 standards for qualifying engines and vessels as described in 
this section and summarized in Table 1. This additional time will allow 
engine manufacturers to design and certify engines to the Tier 4 
standards that are suitable for use in high-speed vessels. The 
additional time will also allow vessel manufacturers to redesign their 
vessels as needed to accommodate the Tier 4 technology.
    We are proposing that implementation of the Tier 4 standards for 
qualifying engines and vessels would occur in two phases. The first 
phase would set model year 2022 as the implementation deadline for 
engines installed in a wide range of high-speed vessels. The second 
phase would set model year 2024 as the implementation deadline for 
engines installed in a narrower set of high-speed vessels that we 
believe will require additional lead time.
    We are proposing to limit these revisions to qualifying high-speed 
vessels and high power density engines for products that need 
additional lead time. Applying relief more broadly would remove demand 
for engines certified to Tier 4 standards, even if they would be 
suitable for powering those vessels. We would then forego achievable 
environmental benefits and could cause those engine and vessel 
manufacturers that have already developed Tier 4 compliant engines and 
vessels to be left at a competitive disadvantage.
    High-speed vessels may be characterized as planing vessels based on 
a hull design that causes the vessel to rise up and experience lower 
hydrodynamic drag (with a corresponding decrease in required propulsion 
power) when operating at high speed. This contrasts with displacement 
hulls, for which propulsion power continues to increase with increasing 
vessel speed, and which do not experience the same design and 
installation challenges. While this distinction is straightforward, 
there is no generally accepted way to draw a clear line between the two 
types of vessels. This is illustrated by ``semi-planing'' vessels, 
which have operating characteristics that fall between planing and 
displacement vessels. The proposed vessel speed criterion is based on 
definitions used for ``high-speed craft'' by classification 
societies.\11\ Each classification society uses its own definition, but 
all follow the same

[[Page 46914]]

principles. We are proposing to limit relief to high-speed vessels that 
have a maximum operating speed (in knots) at or above 3.0 [middot] 
L1/2, where L is the vessel's waterline length, in feet. 
This includes an upward adjustment of about 40 percent compared to 
published definitions to draw a clearer line to identify high-speed 
vessels. As an example, 45-foot vessels would need to have a maximum 
speed of at least 23 knots to qualify for relief using the proposed 
threshold. The vessels that have been the subject of requests for Tier 
4 relief would qualify based on this proposed criterion for high-speed 
vessels. Based on our engagement with marine stakeholders in the past 
year, we believe vessels whose maximum speed is below the specified 
threshold do not have the same sensitivity to engine size and weight 
that should qualify them for relief from using Tier 4 engines. The 
proposed vessel speed criterion applies equally to both proposed phases 
of adjusted implementation dates for the Tier 4 standards.
---------------------------------------------------------------------------

    \11\ Classification societies generally act on behalf of 
national governments to oversee implementation of domestic and 
international maritime standards for construction and operation of 
ships. This typically includes inspections, surveys, and 
certification. The International Association of Classification 
Societies has twelve members (www.iacs.org.uk).
---------------------------------------------------------------------------

    There are other definitions of ``high-speed craft'' that are based 
on a vessel's displaced volume rather than the length. A displacement-
based criterion would have the advantage of accounting for a vessel's 
draft and beam in addition to the length for a more robust 
characterization. On the other hand, since vessel length is much easier 
to verify, there is a clear advantage to defining the criterion based 
only on the length. We request comment on replacing the proposed vessel 
speed criterion with an alternative that is 10 [middot] 
d1/6, where d is the vessel's displaced volume corresponding 
to the design waterline, in m\3\ or tonnes. The alternative criterion 
would be largely equivalent to the proposed criterion, but would 
involve a higher qualifying speed for wider vessels.
    Additionally, for both phases of the relief, we are proposing that 
the relief apply only to vessels classified as uninspected vessels by 
the U.S. Coast Guard.\12\ Coast Guard designates all vessels as either 
inspected or uninspected. Inspected vessels carry freight-for-hire or 
any hazardous or dangerous cargo. Towing and most passenger vessels are 
also inspected. These ships are typically displacement vessels that 
operate low in the water and use very large propulsion engines that do 
not operate at high speeds. They are also typically custom-designed and 
built, meaning vessel manufacturers can and have been able to 
accommodate new-tier propulsion and auxiliary engines in new vessels in 
a timely manner. As a result, these vessels do not require the proposed 
adjusted implementation dates as they are currently being designed and 
built with compliant engines.
---------------------------------------------------------------------------

    \12\ Title 46, Chapter I, of the Code of Federal Regulations.
---------------------------------------------------------------------------

    In contrast, uninspected vessels include recreational vessels not 
engaged in trade, non-industrial fishing vessels, very small cargo 
vessels (less than 15 gross tons), and miscellaneous vessels such as 
pilot boats, patrol and other law-enforcement vessels, fire boats, and 
research vessels, among others. Uninspected vessels are likely to be 
considerably smaller than inspected vessels and operate at higher 
speeds. Also, these vessels are often built on a common design platform 
and may use fiberglass hulls that are seldom re-designed. This means 
these boats are more likely to be designed to use only certain engines 
with a very similar, small footprint, and there can be less flexibility 
to rapidly incorporate new engine designs. Not all uninspected vessels 
require the adjusted implementation dates proposed in this rule to 
address their design constraints, but the contrast between different 
vessel types makes clear that the adjusted implementation schedule for 
the Tier 4 standards is appropriately focused on uninspected vessels.
    We are proposing to limit relief to propulsion engines of a certain 
size on qualifying vessels. Specifically, we propose to limit the first 
phase to propulsion engines with maximum power output up to 1,400 kW, 
and power density of at least 35.0 kW per liter displacement. Category 
1 engines have per-cylinder displacement below 7.0 liters. We are 
proposing to additionally limit relief to vessels up to 65 feet in 
length with total nameplate propulsion power at or below 2,800 kW (to 
accommodate vessels with multiple propulsion engines). The combination 
of the limit on maximum power for each engine with the limit on the 
total nameplate propulsion power has the practical effect of limiting 
relief to vessels with one or two propulsion engines. These criteria 
are intended to ensure that relief from the Tier 4 standards is 
provided to those engines and vessels that require additional lead 
time. We believe vessels not meeting these criteria do not have the 
same design challenges described in Section II in this preamble. For 
example, vessels longer than 65 feet that are subject to whale-strike 
avoidance rules need to operate at reduced speed and are therefore less 
sensitive to size and weight constraints that apply for smaller 
vessels. Some of these criteria may be redundant; however, we believe 
it is best to include multiple parameters as a precaution to ensure 
that the relief applies only to those engines and vessels that need 
additional lead time.
    We propose to limit the second phase to vessels with a single 
propulsion engine with maximum power output up to 1,000 kW and power 
density of at least 40.0 kW per liter displacement, where the vessel is 
made with a nonmetal hull and has a maximum length of 50 feet.
    We believe vessel manufacturers benefitting only from the first 
phase can comply in model year 2022 using engines that we expect to be 
certified to Tier 4 standards in 2019 or 2020. We therefore propose to 
apply the model year 2022 implementation date for vessels with steel or 
aluminum hulls, with vessel length between 50 and 65 feet, with twin-
engine configurations, and needing propulsion engines with power 
ratings between 1,000 and 1,400 kW.
    In contrast, vessel manufacturers need additional time to redesign 
fiberglass and other nonmetal vessels up to 50 feet long using 600-
1,000 kW engines certified to Tier 4 standards. Based on engine 
manufacturers' current projections and project plans, certified engines 
with the appropriate power and power density will be not be available 
until the latter part of 2020 or 2021. Once suitable Tier 4 engines are 
certified, vessel manufacturers will then need time to redesign their 
vessels accordingly. We expect this to be a greater challenge for 
fiberglass and other nonmetal vessels due to material-related 
structural limitations, reliance on molds for construction, and reduced 
flexibility in modifying vessel architecture. Nonmetal hulls may be 
made with carbon fiber or wood instead of fiberglass.
    In summary, we are proposing to set revised Tier 4 implementation 
dates for high power density propulsion engines in two phases based on 
engine and vessel characteristics as noted in the following table:

[[Page 46915]]



       Table 1--Summary of Qualifying Criteria for Adjusted Tier 4
                          Implementation Dates
------------------------------------------------------------------------
            Criteria                    Phase 1             Phase 2
------------------------------------------------------------------------
Vessel speed (knots)............  >3.0 [middot]       >3.0 [middot]
                                   (feet)\1/2\.        (feet)\1/2\.
USCG vessel classification......  uninspected.......  uninspected.
Engine power density............  >35.0 kW/liter....  >40.0 kW/liter.
Engine power rating.............  <=1,400 kW........  <=1,000 kW.
Total vessel propulsion power...  <=2,800 kW........  <=1,000 kW.
Vessel length...................  <=65 feet.........  <=50 feet.
Vessel hull construction........  any...............  nonmetal.
Model years for continued use of  through 2021......  2022 and 2023.
 Tier 3 Engines.
------------------------------------------------------------------------

    Engine manufacturers are in the process of developing and 
certifying Tier 4 engines with higher power density that would be 
suitable for lobster boats, pilot boats, and other high-speed vessels. 
We expect engine manufacturers and their distributors and dealers will 
continue to provide support for vessel manufacturers as they modify 
vessel designs to accommodate the Tier 4 engines. The additional lead 
time associated with this proposed rule will allow vessel manufacturers 
to reconfigure vessels, create new tooling, perform sea trials, and 
start producing compliant vessels.
    For vessel manufacturers to benefit from the proposed relief, 
engine manufacturers will need to certify engines to Tier 3 commercial 
standards for installation in newly constructed vessels. Vessel 
manufacturers may need these engines very soon after we finalize the 
proposed provisions. This would generally involve restarting production 
of engine configurations that were already certified to the Tier 3 
commercial standards before 2017. Engine manufacturers may still be 
producing these or substantially equivalent engine configurations as 
certified Tier 3 recreational engines or as exempt replacement engines. 
In most cases, engine manufacturers can resubmit information from their 
earlier Tier 3 application for certification to cover the new 
production. As with all EPA standards, we cannot compel engine 
manufacturers to certify their engines as contemplated in this proposed 
rule, but we expect that engine manufacturers will be responsive to 
vessel manufacturer demand and that they will be ready and able to 
provide certified engines. We therefore expect vessel manufacturers to 
be able to buy the engines they need to continue production during the 
transition period.
    The specified criteria clarify which engines and vessels qualify 
for continuing to be subject to Tier 3 standards for the extended 
transition before meeting the Tier 4 standards. If any engines or 
vessels utilize these provisions to comply with Tier 3 standards 
without meeting the specified criteria, we would expect to apply the 
prohibitions of 40 CFR 1068.101(a)(1) for new engines and vessels 
introduced into U.S. commerce based on those engines not being 
certified to the Tier 4 standards.
    Hovercraft present a special case. While sales volumes of 
hovercraft are very small, they may face the same constraints related 
to availability of certified high power density engines and challenges 
of redesigning vessels to accommodate Tier 4 engine technology. Because 
they do not have a conventional waterline during operation, and maximum 
speed is not governed by conventional hydrodynamic principles, the 
criteria described above are not effective for qualifying hovercraft 
for the proposed adjustment to Tier 4 implementation. As with the other 
types of vessels, we expect engine development and certification to 
move forward, including engines with more compact aftertreatment 
systems. We accordingly request comment on the best approach for 
applying Tier 4 standards for hovercraft in a time frame that allows 
vessel manufacturers to address technical concerns associated with 
designing the vessels with SCR-equipped engines. This might involve 
treating hovercraft as a separate sub-category of vessels that qualify 
for one or both phases of relief described above for conventional 
vessels.

2. Relief Through Waivers for Qualifying Engines and Vessels

    The proposed two-phase approach to adjust Tier 4 implementation for 
qualifying engines and vessels would apply without any separate EPA 
approval process. For qualifying engines and vessels, the Tier 3 engine 
certification requirements would continue to apply for the specified 
period.
    We are additionally proposing a waiver process starting in 2024 for 
vessels meeting the Phase 2 specifications described in Table 1. We 
believe this provision may be needed if engine certification does not 
proceed as expected to provide available engines certified to Tier 4 
standards with performance characteristics that are appropriate for the 
subject high-speed vessels.
    Starting with model year 2024, manufacturers of vessels meeting the 
Phase 2 qualifications described in Table 1 would have the option to 
request in writing that EPA approve an exemption from the Tier 4 
standards for vessels meeting the Phase 2 qualifications described in 
Table 1. EPA would evaluate these requests based on the availability of 
suitable certified Tier 4 engines at the time of the request for the 
intended vessel design. EPA could approve requests covering multiple 
vessels, but any approval would apply for a limited duration. As 
proposed, the waiver authority does not expire, so it allows 
manufacturers of qualifying vessels to avoid installing Tier 4 engines 
until suitable certified Tier 4 engine models become available.
    Enforcement would apply as described in Section IV.1 in this 
preamble for new engines or vessels introduced into U.S. commerce under 
these waiver provisions without meeting the specified criteria.
    We are aware that implementing standards in the context of waiver 
provisions raises concerns about inconsistencies within the industry 
and unintended consequences. Waiver provisions introduce a measure of 
uncertainty for planning and include a risk that some manufacturers 
will use the waiver provisions to gain a competitive advantage over 
other manufacturers who do not qualify for a waiver (or who choose not 
to request a waiver). Waiver provisions also create an administrative 
burden for both vessel manufacturers and EPA.
    Considering these challenges related to waivers, we request comment 
on an alternative approach of simply adjusting the Tier 4 compliance 
deadlines further for the second phase of proposed relief (as 
summarized in Table 1). That alternative approach might involve setting 
the new start for Tier 4 at model

[[Page 46916]]

year 2028. This would allow additional time for engine manufacturers to 
certify engines between 600 and 1,000 kW to Tier 4 standards, and for 
vessel manufacturers to address installation challenges for the Tier 4 
engines and technologies. A disadvantage of such a long-term adjustment 
to the Tier 4 implementation schedule is that engine manufacturers 
would have less incentive to certify the targeted engines because 
vessel manufacturers would not be required to buy and install them in 
qualifying vessels for many years.
    We therefore request comment on the need for including waiver 
provisions for Tier 4 relief beyond model year 2024. We further request 
comment on the alternative of simply allowing more time, and what the 
advantages and disadvantages may be for such an approach. Finally, we 
request comment on the possibility of relying only on the hardship 
exemption provisions in 40 CFR 1068.255 to address concerns for Tier 4 
relief beyond 2024.

3. Adjusted Requirements for Certifying Engines

    As described above, there are no high power density engines 
currently certified to Tier 4 standards. We have heard that several 
engine manufacturers have plans to certify Tier 4 engines within the 
next few years. The biggest factor driving these engine product 
development and certification decisions is the expected sales volumes 
that would allow for recovering the investment in upgrading the 
engines. The coming standards for inland waterways in Europe and for 
European Emission Control Areas under MARPOL Annex VI are expected to 
contribute to demand for increasing sales volumes in a way that would 
support decisions to certify Tier 4 engines.
    Based on conversations with engine manufacturers, we expect these 
market forces to be sufficient to supply the needed engines to support 
building compliant vessels with Tier 4 engines according to the revised 
schedule described above. Even so, we are proposing to revise engine 
certification requirements to reduce the costs and time needed for 
engine manufacturers to certify engines with high power density to Tier 
4 standards. These proposed provisions are intended to help accelerate 
the market entry of Tier 4 marine engines with high power density.
a. Temporary Provision for Assigned Deterioration Factors
    We are proposing a temporary provision allowing engine 
manufacturers to certify specific engines to Tier 4 standards based on 
assigned deterioration factors. Engine manufacturers rely on 
deterioration factors so they can test a new engine and adjust the test 
results mathematically to represent emission levels at full useful 
life. The regulations currently allow assigned deterioration factors 
only for small-volume engine manufacturers and post-manufacture 
marinizers. Assigned deterioration factors would reduce the cost and 
time to certify to Tier 4 standards, which would accelerate the 
schedule for certifying, and may lead manufacturers to make a decision 
to pursue Tier 4 certification in light of the expected low sales 
volumes for recovering the associated development costs.
    To target the engines needed for high-speed vessels, we are 
proposing to allow assigned deterioration factors for 600-1,000 kW 
engines with power density above 35.0 kW/liter displacement through 
model year 2025, and for 1,000-1,400 kW engines with power density 
above 40.0 kW/liter displacement through model year 2023. These dates 
are set to apply for the first two years after the Tier 4 standards 
start to apply on the adjusted schedule, with the expectation that 
engine manufacturers could accumulate information on the durability 
characteristics of engines for those two model years before needing to 
develop family-specific deterioration factors.
    There are currently no certified Tier 4 engines between 600 and 
1,000 kW that are approaching 35.0 kW/liter displacement, so we believe 
it is appropriate for this power range to rely on the 35.0 kW/liter 
threshold that was used to set standards for Tier 3 commercial engines. 
In contrast, in the 1,000-1,400 kW range, there is already one 
certified Tier 4 engine that is close to 35.0 kW/liter displacement. We 
want to avoid creating relief for new certifications that would provide 
a competitive advantage over engines that are already certified using 
established procedures for durability testing. The higher power density 
threshold of 40.0 kW/liter displacement for 1,000-1,400 kW engines 
provides that buffer relative to engines already certified to Tier 4 
standards.
    We have reviewed available data to support proposing default values 
for assigned deterioration factors. The proposed deterioration factors 
are multiplicative values of 1.1 for NOX and 1.4 for HC and 
CO, and an additive value of 0.003 g/kW-hr for PM.\13\ Where an 
individual engine manufacturer has existing data available, for 
example, from certified land-based versions of their marine engines, 
EPA would consider that information, consistent with 40 CFR 
1042.245(b), and may adjust the value of one or more default assigned 
deterioration factors accordingly.
---------------------------------------------------------------------------

    \13\ ``Technical Analysis for Amendments Related to Marine 
Diesel Engine Emission Standards,'' EPA memorandum from Cheryl 
Caffrey to Docket EPA-HQ-OAR-2018-0638, August 1, 2019.
---------------------------------------------------------------------------

    Engine manufacturers would need to certify using family-specific 
deterioration factors in the first model year after the assigned 
deterioration factors are no longer available. This could be based on a 
conventional durability demonstration based on emission measurements 
before and after an extended period of service accumulation in the 
laboratory. It could alternatively be based on laboratory measurements 
after engines accumulate service hours when installed in vessels. 
Either of these approaches is permissible under current regulations 
(see 40 CFR 1042.245(c)). This approach would provide engine 
manufacturers with significant flexibility to determine deterioration 
factors. Test plans should be submitted to EPA in advance for review 
and approval. We would be ready to work through any testing or 
measurement issues as manufacturers work toward the goal of collecting 
robust information for determining appropriate deterioration factors.
    We request comment on expanding the provisions for durability 
demonstrations to include both service accumulation and emission 
measurements with engines installed in vessels. We have procedures in 
place in 40 CFR part 1065, subpart J, to describe how to perform in-
field measurements, but we would need to work out how to control engine 
operation to mimic the certification duty cycles, among other things. 
Concerns about removing engines for laboratory measurement are 
especially pronounced for larger engines. For many engines, it may be 
preferable to rely on laboratory measurements after service 
accumulation in a vessel, but waiving the requirement to measure 
emissions halfway through the service accumulation period.
b. Reduced Regulatory Useful Life for Light Commercial Engines
    There are currently no engines certified to Tier 4 standards with 
power density above 35 kW per liter displacement. Engine manufacturers 
have expressed concerns about meeting the Tier 4 standards for a 
regulatory useful life of 10,000 hours. We

[[Page 46917]]

acknowledge that higher engine power ratings generally come from higher 
intake air pressures and greater fuel flow into the engine, which can 
cause some engine and aftertreatment components to wear out sooner. 
Engines with lower power density are designed for continuous operation 
for very long periods with minimal downtime. Engines with high power 
density are inherently lighter weight and have a shorter time before 
scheduled rebuilding. Under our current regulations, commercial marine 
engines are generally subject to the same regulatory useful life 
regardless of the power density. However, the performance demands 
associated with high power density make it more difficult to 
demonstrate that engines with aftertreatment technology will meet Tier 
4 standards over the full regulatory useful life.
    We are proposing to address this concern with an interim provision 
to establish a shorter regulatory useful life for commercial engines 
with very high power densities. The current regulatory useful life for 
these engines is 10,000 hours. We are specifically proposing to apply a 
new ``light commercial'' useful life of 5,000 hours for engines 
certified to the Tier 4 standards with power density above 50.0 kW/
liter displacement. The 50.0 kW/liter threshold corresponds to power 
densities for engines certified to recreational engine standards. 
Commercial engine ratings can achieve power density consistent with 
engines used in recreational vessels. However, in contrast to 
recreational vessels, these light commercial vessels do not have 
operational characteristics that limit engine hours to very low levels. 
The proposed shorter useful life of 5,000 hours reflects the effects of 
high power density on engine durability in the context of vessels that 
have operational characteristics based on their commercial 
applications. We request comment and supporting information and data on 
the threshold for creating a sub-category of light commercial engines, 
and on the value of the useful life that should apply for certifying 
those engines. Any comments on the value of the useful life should 
include consideration of the recommended rebuild intervals for specific 
power densities.
    These engines would also qualify for EPA-assigned deterioration 
factors as described above. Since the useful life decreases from 10,000 
hours to 5,000 hours for qualifying engines, we would expect to adjust 
the values of assigned deterioration factors correspondingly. For 
example, the value of the deterioration factor for NOX would 
decrease from 1.1 to 1.05; the value of the deterioration factor for HC 
and CO would decrease from 1.4 to 1.2; and the value of the 
deterioration factor for PM would decrease from 0.003 to 0.0015 g/kW-
hr.
    We are not proposing a sunset date for this interim provision for a 
shorter useful life, but we expect in the future to consider whether we 
should discontinue it after a satisfactory transition to Tier 4 
standards for these engines, or whether we should continue to apply it 
indefinitely.
c. Engine Duty Cycle for Certification Testing
    EPA's emission standards for marine diesel engines have always 
relied on the ``E3'' duty cycle specified by the International 
Organization for Standardization (ISO) for engines installed in 
commercial vessels with fixed-pitch propellers. This duty cycle 
includes four steady-state operating modes ranging from 25 to 100 
percent of rated power, with the highest weighting for emissions at the 
higher-power modes. This weighting allows for calculating a composite 
emission test result to represent typical in-use operation. In 
contrast, the ISO E5 duty cycle, which applies for engines installed in 
recreational vessels, adds an idle mode and shifts the weighting for 
the other modes to place greater emphasis on low- and mid-power 
operation. The ISO E5 duty cycle was designed to apply for all vessels 
under 24 meters (78.7 feet) in length. The ISO duty cycles were perhaps 
developed with the simplifying assumption that vessels under 24 meters 
were high-speed planing vessels, and vessels longer than 24 meters were 
displacement vessels with corresponding extended operation at high 
engine loads. In previous rulemakings we chose instead to differentiate 
cycles only based on recreational vs. commercial installations to 
simplify certification for engine manufacturers. Engines may be 
installed in many different sizes and types of vessels, so we decided 
to apply the ISO E3 duty cycle for all commercial installations. Table 
2 illustrates the speed and power settings for the ISO E3 and E5 duty 
cycles.

                       Table 2--Speed and Power Settings for the ISO E3 and E5 Duty Cycles
----------------------------------------------------------------------------------------------------------------
                                                                    Percent of
             Mode No.                       Engine speed           maximum test    E3 weighting    E5 weighting
                                                                       power          factors         factors
----------------------------------------------------------------------------------------------------------------
1................................  Maximum test speed...........             100            0.20            0.08
2................................  91%..........................              75            0.50            0.13
3................................  80%..........................              50            0.15            0.17
4................................  63%..........................              25            0.15            0.32
5................................  Warm idle....................               0  ..............            0.30
----------------------------------------------------------------------------------------------------------------

    Focusing on engines with high power density brings us back to the 
question of duty cycles. Based on our knowledge and discussions with 
marine industry stakeholders, we expect that anyone operating a 
commercial engine with high power density will not be operating the 
vessel predominantly at or near full power. Operating engines with high 
power density for prolonged periods at or near full power would lead to 
a much shorter engine life. Engine manufacturers often describe engines 
with low power density at ``continuous ratings'' and engines with high 
power density as ``intermittent ratings.'' We would expect operators of 
vessels with high power density engines to spend the most time at idle 
and low-power or mid-power operation, with occasional use at full 
power.\14\ In short, it appears that engines with high power density 
would be best represented by operation over the ISO E5 duty cycle.
---------------------------------------------------------------------------

    \14\ ``Technical Analysis for Amendments Related to Marine 
Diesel Engine Emission Standards,'' EPA memorandum from Cheryl 
Caffrey to Docket EPA-HQ-OAR-2018-0638, August 1, 2019.
---------------------------------------------------------------------------

    This observation applies most directly to engines with power 
density above

[[Page 46918]]

50.0 kW/liter displacement, where the engine's maximum power output 
leads to an expectation for shorter operating life (as described 
above). It applies, though to a lesser degree for engines with power 
density between 35.0 and 50.0 kW/liter displacement.
    Measuring emission levels over a different duty cycle would yield 
different results, though it is not clear for a given engine 
calibration whether one cycle or the other would have higher emission 
levels. Perhaps more importantly, manufacturers would be able to adjust 
calibrations to fine-tune emission controls to work most effectively 
over the cycle that is most appropriate for a certain application.
    We are considering amendments to adjust duty-cycle testing 
requirements for marine diesel engines. We would generally want to 
avoid changing the stringency of standards for engines that are already 
certified using existing test procedures. On the other hand, as noted 
above, there are no certified Tier 4 engines with power density above 
35 kW/liter displacement. This same dynamic applies for engines below 
600 kW, so we are also considering whether and how to adjust specified 
duty cycles for commercial engines with high power density that 
continue to be subject to Tier 3 standards.
    In particular, we request comment on specifying the ISO E5 duty 
cycle for all commercial engines with power density above 35.0 kW/liter 
displacement. This could be instead of the ISO E3 duty cycle, or we 
could give manufacturers the option to select one cycle, or we could 
specify that manufacturers must meet standards using both cycles. 
Comments should address whether any recommended approach should apply 
differently for engines above or below 600 kW. Comments should also 
address whether any recommended approach should apply differently for 
engines at different levels of power density. We could, for example, 
make testing with the ISO E5 duty cycle optional for engines between 
35.0 and 45.0 kW/liter displacement, and mandatory for engines above 
45.0 kW/liter displacement.

VI. Economic and Environmental Impacts

1. Marine Diesel Engine Standards

    We prepared an analysis of the economic, inventory, and human 
health and welfare impacts of this proposal using the inventory and 
cost estimation methods used to support our 2008 Final Rule and a 
simplified health benefits estimation method.\15\ The results of that 
analysis are set out in Table 3 and summarized below.
---------------------------------------------------------------------------

    \15\ See ``Assessment Analysis: Proposed Marine CI Tier 4 
Rule,'' EPA memorandum from Jean Marie Revelt, to Docket EPA-HQ-OAR-
2018-0638, August 1, 2019.
---------------------------------------------------------------------------

    With respect to costs, this proposal imposes no additional economic 
costs above those included in our 2008 rulemaking. Instead, we estimate 
that this proposal would result in cost reduction of about $5.4 
million, using a behavioral modeling approach, or $5.8 million, using a 
full-cost pass-through approach (2018$). These are the estimated cost 
reductions from installing less expensive Tier 3 engines in new vessels 
during the relief period (2019 through 2023) and the associated 
operating cost reductions during the 13-year lifetime of those engines 
(2019 through 2035).
    With respect to emission inventory impacts, the proposed amendment 
rule would change the implementation date of the Tier 4 standards for 
qualifying engines and vessels from 2017 to 2024, which would delay the 
emission and air quality benefits of those standards. The estimated 
annual increase in NOX and PM10 \16\ emissions 
associated with the proposed relief is about 108 and 2.3 short tons, 
respectively, in 2019, when both sets of engines are affected, 
decreasing to 37 and 1 ton, respectively, in 2022 and 2023, when only 
those engines 600 kW to 1,000 kW are affected. The lifetime inventory 
increase is estimated to be about 5,098 tons of NOX and 107 
tons of PM10, assuming a 13-year lifetime. This represents 
less than one-tenth of one percent of the national annual emissions for 
these pollutants from commercial Category 1 marine diesel engines 
(i.e., engines below 7.0 liters per cylinder displacement).
---------------------------------------------------------------------------

    \16\ Consistent with the 2008 Rule, this inventory analysis is 
for PM10. In the 2008 rule, PM2.5 was 
estimated at 97% of PM10.

                                                    Table 3--Estimated Impacts on Emissions and Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             NOX increase    PM10 increase
                                               Affected        per year        per year                                                   Operating cost
                   Year                       engines per    (short tons)    (short tons)        Compliance cost reduction (2005$) *         reduction
                                                 year                                                                                         (2005$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2019......................................              25           108.1             2.3  $456,000 to $531,000........................         $36,000
2020......................................              25           216.3             4.6  $456,000 to $531,000........................          72,000
2021......................................              25           324.4             6.8  $353,000 to $417,000........................         108,000
2022......................................              21           361.0             7.6  $302,000 to $359,000........................         138,240
2023......................................              21           397.6             8.4  $302,000 to $359,000........................         168,480
2024......................................               0           397.6             8.4  0...........................................         168,480
                                           -------------------------------------------------------------------------------------------------------------
Lifetime Impacts (sum of 2019-2035).......             117           5,098             107                      $4.1 to $4.4 million.
                                                                                                            ($5.4 to $5.8 million 2018$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Costs were modeled in 2005$; lifetime impacts were converted in the final step of the analysis. Lower value of costs impacts estimated with a
  behavioral modeling approach, upper value estimated with a full-cost pass-through modeling approach. See ``Assessment Analysis: Proposed Marine CI
  Tier 4 Rule,'' EPA memorandum from Jean Marie Revelt, to Docket EPA-HQ-OAR-2018-0638 for details.

    Finally, with respect to human health and welfare benefits, the 
forgone emissions reductions described above would also be associated 
with forgone improvements in human health. Using reduced form health 
benefit per ton values,\17\ we estimate that the annual 
PM2.5-related forgone benefits do not exceed a high-end 
estimate of $4.0 million in any given year (2015$). The total present 
value of the stream of forgone benefits over the years 2019 through 
2035 range from $13 million to $41 million.
---------------------------------------------------------------------------

    \17\ PM2.5-related health benefits are estimated by 
applying sector-specific (C1/C2 marine vessel engine) benefit per 
ton values for NOX and directly-emitted PM2.5 
using a source apportionment approach that has been used past EPA 
analyses. See: Wolfe, P., Davidson, K. Fulcher, C., Fann, N., 
Zawacki, M., Baker, K.R. (2018). Monetized health benefits 
attributable to mobile source emission reductions across the United 
States in 2025. STOTEN, 650 (2019) 2490-2498, September.

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[[Page 46919]]

    Reduced form tools, by their nature, are subject to 
uncertainty.\18\ In addition to the uncertainties present across the 
entire emissions-to-impact pathway, it is important to note that the 
monetized benefit per ton estimates used here reflect the geographic 
patterns of the underlying emissions and air quality modeling 
assumptions. They do not necessarily reflect the conditions of the 
policy scenario in which they are applied, which can lead to an over- 
or underestimate of benefits. For this analysis, as mentioned in 
discussion above, the forgone benefits may be overstated in a location 
like Maine, since there will be some transport of emissions offshore or 
to areas external to the United States with different population and 
geographic characteristics. However, for this analysis, this 
uncertainty is acceptable for characterizing a range of potential 
impacts.
---------------------------------------------------------------------------

    \18\ See EPA (2018). Technical Support Document: Estimating the 
Benefit per Ton of Reducing PM2.5 Precursors from 17 
Sectors. Office of Air and Radiation, Office of Air Quality Planning 
and Standards, Research Triangle Park, February.
---------------------------------------------------------------------------

2. Global Marine Fuel

    A new global marine fuel standard of 0.50 percent (5,000 ppm) 
sulfur adopted into MARPOL Annex VI by the International Maritime 
Organization will go into effect on January 1, 2020 (``global marine 
fuel''). The U.S. refining industry has shared that they are well 
positioned to supply fuel meeting this new IMO standard.\19\ However, 
they have also informed us that existing provisions in our diesel fuel 
regulations may lead to confusion as to their ability to distribute 
fuel in the United States that meets the 2020 standard for global 
marine fuel. We are therefore proposing changes to our regulatory text 
to clarify that U.S. refiners can confidently distribute global marine 
fuel up to the 5,000 ppm sulfur limit, which will facilitate smooth 
implementation of the 2020 global marine fuel standard.
---------------------------------------------------------------------------

    \19\ See, for example, the website for the Coalition for 
American Energy Security at https://americanenergysecurity.com.
---------------------------------------------------------------------------

    To be clear, EPA is not proposing to adopt new marine fuel sulfur 
limits in this rule. The purpose of the proposed fuel program changes, 
as explained in Section II, is to modify a historical regulatory 
provision that may now have the unintended consequence of limiting 
flexibility for the distribution and sale in the United States of 
marine fuel that meets the sulfur limits for global marine fuel. 
Because there is no change to the fuel sulfur limits on fuels used in 
the United States, the proposed change is not expected to have an 
impact on U.S. air quality. However, by providing additional 
flexibility, the proposed change may reduce the costs of U.S. fuel 
suppliers providing global marine fuel that meets the MARPOL Annex VI 
global sulfur cap of 5,000 ppm, as explained below.
    Under the regulations at 40 CFR part 80, marine distillate fuel 
with a T90 value below 700 [deg]F is either Nonroad, Locomotive or 
Marine (NRLM) diesel fuel, limited to 15 ppm sulfur, or ECA marine 
fuel, limited to 1,000 ppm sulfur and can be used or made available for 
use only in engines on Category 3 vessels.\20\ To comply with the 5,000 
ppm global marine fuel standard, ship owners and operators can purchase 
residual fuels, distillate fuels, or mixtures of the two that fall 
below the 5,000 ppm cap.\21\ EPA's existing regulations did not 
contemplate the potential for a distillate fuel being produced and 
distributed in the United States above 1,000 ppm, and therefore, to 
enhance the enforcement of our domestic fuel requirements, EPA's 
existing regulations preclude the distribution of higher sulfur 
distillate fuel in the United States. This limitation now hinders the 
ability of U.S. refiners to supply global marine fuel to the world 
market, as 1,000 ppm or lower distillate fuel may not be cost 
competitive with other 5,000 ppm sulfur options available. Ship owners 
and operators would likely choose to buy 5,000 ppm residual fuel or 
purchase their fuel in other countries rather than incur the additional 
cost of buying distillate marine fuel with less than 1,000 ppm sulfur 
in the United States. Rather than lose market share or absorb the price 
differential, we expect U.S. fuel providers to find ways within our 
regulations to supply the global marine fuel market, such as exporting 
higher sulfur distillate fuels and blending or using those fuels 
outside the United States; however, the inefficiency caused by our 
current limitation on distributing distillate fuel above 1,000 ppm will 
make it harder for U.S. fuel providers to competitively supply global 
marine fuel.
---------------------------------------------------------------------------

    \20\ T90 refers to the point in a distillation process at which 
90 percent of the fuel has evaporated.
    \21\ Under 40 CFR, residual fuel is a petroleum fuel that can 
only be used in diesel engines if it is preheated before injection.
---------------------------------------------------------------------------

    EPA does not have foreknowledge of the extent to which ship owners 
and operators would choose to use 5,000 ppm distillate fuel instead of 
residual fuel or distillate-residual fuel blends and cannot predict the 
extent to which ship owners and operators will be bunkering their 
vessels in the United States under the new global marine fuel standard. 
However, we can say with confidence that removing the restriction on 
the distribution of distillate fuel between 1,000 ppm and 5,000 ppm in 
the United States will provide greater flexibility for supplying the 
global marine fuel market and could therefore nominally reduce fuel 
costs. U.S. refiners have also requested that EPA make this regulatory 
change to provide clearly defined regulations that will provide a level 
playing field for all potential U.S. suppliers. Such clarity will aid 
them in finalizing their fuel supply and distribution plans.
    We request comment on the extent to which this regulatory change 
might adjust U.S. fuel suppliers' decisions and actions to supply the 
global marine fuel market, the extent to which this action might help 
with overall global marine fuel supply, and what the associated costs, 
cost savings and other effects might be. We are interested in 
information that will shed light on measuring how behaviors may change 
relative to the U.S. baseline production plans (with no regulatory 
change), and what that baseline may be. For instance, would the 
relevant baseline be: (1) Distribution of distillate fuel with 1000 ppm 
sulfur limits in the U.S. for sale as a global marine fuel; (2) 
distribution of residual fuel with 5000 ppm sulfur limits in the U.S. 
for sale as a global marine fuel; (3) some combination of both 
approaches; or (4) some other approach? Such information would be used 
to assess the potential additional flexibility for U.S. fuel suppliers 
and the ships that use this fuel and the associated cost savings. 
Specifically, we request comment on the amount of 5,000 ppm distillate 
fuel that would be sold in the United States for use into the global 
marine fuel market with the proposed amendment, including price 
projections and other market specific information. While we recognize 
that the effects of the global 2020 IMO Standards are not attributable 
to this rule, we would be interested in further information related to 
this transition where such information is relevant for assessing the 
impacts of this proposed action on U.S. fuel suppliers.

VII. Statutory and Executive Order Reviews

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

    This action was submitted to the Office of Management and Budget 
(OMB) for review.

[[Page 46920]]

B. Executive Order 13771: Reducing Regulations and Controlling 
Regulatory Costs

    This action is expected to be an Executive Order 13771 deregulatory 
action. Details on the estimated cost savings of this rule can be found 
in EPA's analysis of the potential costs and benefits associated with 
this action.

C. Paperwork Reduction Act (PRA)

    The information collection activities in this proposed rule have 
been submitted for approval to the Office of Management and Budget 
(OMB) under the PRA. The Information Collection Request (ICR) document 
that the EPA prepared has been assigned EPA ICR number 2602.01. You can 
find a copy of the ICR in the docket for this rule, and it is briefly 
summarized here. OMB has previously approved the information collection 
activities related to marine diesel engine emission standards in 40 CFR 
part 1042 under OMB control number 2060-0287.
    Information collection is limited to manufacturers of qualifying 
high-speed vessels requesting a waiver from the Tier 4 standards after 
the standards restart in model year 2024. We are adopting this as a 
precaution, in case engine certification and further technology 
development for installing Tier 4 engines does not allow for complying 
with standards in 2024. We will protect confidential business 
information as described in 40 CFR part 2.
    Respondents/affected entities: Manufacturers of high-speed vessels.
    Respondent's obligation to respond: Response is required to get 
EPA's approval for a waiver from Tier 4 standards.
    Estimated number of respondents: 0.
    Frequency of response: There are no recurring responses.
    Total estimated burden: 0 hours (per year). Burden is defined at 5 
CFR 1320.3(b).
    Total estimated cost: $0 per year, including $0 per year in 
annualized capital or operation & maintenance costs.
    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.
    Submit your comments on the Agency's need for this information, the 
accuracy of the provided burden estimates and any suggested methods for 
minimizing respondent burden to the EPA using the docket identified at 
the beginning of this rule. You may also send your ICR-related comments 
to OMB's Office of Information and Regulatory Affairs via email to 
OIRA_submission@omb.eop.gov, Attention: Desk Officer for the EPA. Since 
OMB is required to make a decision concerning the ICR between 30 and 60 
days after receipt, OMB must receive comments no later than October 7, 
2019. The EPA will respond to any ICR-related comments in the final 
rule.

D. 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. This proposed rule is expected to provide 
regulatory flexibility to small owners and operators of U.S. vessels. 
We have therefore concluded that this action will have no adverse 
regulatory impact for any directly regulated small entities.

E. 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.

F. 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.

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

    This action does not have tribal implications as specified in 
Executive Order 13175. This proposed rule will be implemented at the 
Federal level and affects owners and operators of U.S. vessels. Thus, 
Executive Order 13175 does not apply to this action.

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

    This action is not subject to Executive Order 13045 because it is 
not economically significant as defined in Executive Order 12866. This 
action's assessment of the environmental impact of the rule contained 
in Section V shows that the rule will have a very small impact, which 
will not have a disproportionate effect on children's health.

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

    This action is not a ``significant energy action'' because it is 
not likely to have a significant adverse effect on the supply, 
distribution, or use of energy. Section V describes how we expect this 
rule to have a small overall environmental impact.

J. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

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

    EPA believes this action does not have disproportionately high and 
adverse human health or environmental effects on minority populations, 
low-income populations or indigenous peoples, as specified in Executive 
Order 12898 (59 FR 7629, February 16, 1994). Due to the small 
environmental impact, this proposed regulatory flexibility will not 
have a disproportionate adverse effect on minority populations, low-
income populations, or indigenous peoples.

List of Subjects

40 CFR Part 80

    Environmental protection, Fuel additives, Gasoline, Greenhouse 
gases, Imports, Labeling, Motor vehicle pollution, Penalties, Reporting 
and recordkeeping requirements.

40 CFR Part 1042

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Confidential business information, Imports, 
Labeling, Penalties, Reporting and recordkeeping requirements, Vessels, 
Warranties.


[[Page 46921]]


    Dated: August 26, 2019.
Andrew R. Wheeler,
Administrator.

    For the reasons set forth above, EPA proposes to amend 40 CFR parts 
80 and 1042 as follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

0
1. The authority citation for part 80 continues to read as follows:

    Authority:  42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).

0
2. Section 80.2 is amended by adding paragraph (aa) to read as follows:


Sec.  80.2   Definitions.

* * * * *
    (aa) Global marine fuel means diesel fuel, distillate fuel, or 
residual fuel used, intended for use, or made available for use in 
steamships or Category 3 marine vessels while the vessels are operating 
in international waters or in any waters outside the boundaries of an 
ECA. Global marine fuel is subject to the provisions of MARPOL Annex 
VI.
* * * * *
0
3. Section 80.501 is amended by redesignating paragraphs (a)(6) and (7) 
as paragraphs (a)(7) and (8), and adding a new paragraph (a)(6) to read 
as follows:


Sec.  80.501   What fuel is subject to the provisions of this subpart?

    (a) * * *
    (6) Distillate global marine fuel.
* * * * *
0
4. Section 80.590 is amended by revising the section heading and 
paragraph (a) introductory text and adding paragraph (a)(7)(viii) to 
read as follows:


Sec.  80.590   What are the product transfer document requirements for 
motor vehicle diesel fuel, NRLM diesel fuel, heating oil, global marine 
fuel, ECA marine fuel, and other distillates?

    (a) This paragraph (a) applies on each occasion that any person 
transfers custody or title to MVNRLM diesel fuel, heating oil, global 
marine fuel, or ECA marine fuel (including distillates used or intended 
to be used as MVNRLM diesel fuel, heating oil, global marine fuel, or 
ECA marine fuel) except when such fuel is dispensed into motor vehicles 
or nonroad equipment, locomotives, marine diesel engines or steamships 
or Category 3 vessels. Note that 40 CFR part 1043 specifies 
requirements for documenting fuel transfers to certain marine vessels. 
For all fuel transfers subject to this paragraph (a), the transferor 
must provide to the transferee documents which include the following 
information:
* * * * *
    (7) * * *
    (viii) Global marine fuel. ``For use only in steamships or Category 
3 marine vessels outside of an Emission Control Area (ECA), consistent 
with MARPOL Annex VI.''
* * * * *
0
5. Section 80.598 is amended by revising paragraphs (a)(2)(i)(G) and 
(b)(8)(iii) to read as follows:


Sec.  80.598   What are the designation requirements for refiners, 
importers, and distributors?

    (a) * * *
    (2) * * *
    (i) * * *
    (G) Exempt distillate fuels such as global marine fuels under Sec.  
80.605, fuels that are covered by a national security exemption under 
Sec.  80.606, fuels that are used for purposes of research and 
development pursuant to Sec.  80.607, and fuels used in the U.S. 
Territories pursuant to Sec.  80.608 (including additional identifying 
information).
* * * * *
    (b) * * *
    (8) * * *
    (iii) Exempt distillate fuels such as global marine fuels under 
Sec.  80.605, fuels that are covered by a national security exemption 
under Sec.  80.606, fuels that are used for purposes of research and 
development pursuant to Sec.  80.607, and fuels used in the U.S. 
Territories pursuant to Sec.  80.608 (including additional identifying 
information).
* * * * *
0
6. Amend Sec.  80.602 by revising the section heading and paragraphs 
(a) and (b)(4)(i) to read as follows:


Sec.  80.602   What records must be kept by entities in the NRLM diesel 
fuel, ECA marine fuel, global marine fuel, and diesel fuel additive 
production, importation, and distribution systems?

    (a) Records that must be kept by parties in the NRLM diesel fuel, 
ECA marine fuel, global marine fuel and diesel fuel additive 
production, importation, and distribution systems. Beginning June 1, 
2007, or June 1, 2006, if that is the first period credits are 
generated under Sec.  80.535, any person who produces, imports, sells, 
offers for sale, dispenses, distributes, supplies, offers for supply, 
stores, or transports nonroad, locomotive or marine diesel fuel, or ECA 
marine fuel (beginning June 1, 2014) subject to the provisions of this 
subpart, must keep all the records specified in this paragraph (a). 
These recordkeeping requirements for global marine fuel start January 
1, 2020.
    (1) The applicable product transfer documents required under 
Sec. Sec.  80.590 and 80.591.
    (2) For any sampling and testing for sulfur content for a batch of 
NRLM diesel fuel produced or imported and subject to the 15 ppm sulfur 
standard or any sampling and testing for sulfur content of any fuel 
subject to the provisions of this subpart as part of a quality 
assurance testing program, and any sampling and testing for cetane 
index, aromatics content, marker solvent yellow 124 content or dye 
solvent red 164 content of NRLM diesel fuel, ECA marine fuel, NRLM 
diesel fuel additives or heating oil:
    (i) The location, date, time and storage tank or truck 
identification for each sample collected;
    (ii) The name and title of the person who collected the sample and 
the person who performed the testing; and
    (iii) The results of the tests for sulfur content (including, where 
applicable, the test results with and without application of the 
adjustment factor under Sec.  80.580(d)), for cetane index or aromatics 
content, dye solvent red 164, marker solvent yellow 124 (as 
applicable), and the volume of product in the storage tank or container 
from which the sample was taken.
    (3) The actions the party has taken, if any, to stop the sale or 
distribution of any NRLM diesel fuel, global marine fuel, or ECA marine 
fuel found not to be in compliance with the sulfur standards specified 
in this subpart, and the actions the party has taken, if any, to 
identify the cause of any noncompliance and prevent future instances of 
noncompliance.
    (b) * * *
    (4) * * *
    (i) NRLM diesel fuel, NR diesel fuel, LM diesel fuel, global marine 
fuel, ECA marine fuel, or heating oil, as applicable.
* * * * *
0
7. Section 80.605 is added to read as follows:


Sec.  80.605   Global marine fuel exemption.

    (a) The standards of this subpart I do not apply to global marine 
fuel that is produced, imported, sold, offered for sale, supplied, 
offered for supply, stored, dispensed, or transported for use in 
steamships or Category 3 marine vessels when operating outside of ECA 
boundaries.
    (b) The exempt fuel must meet all the following conditions:
    (1) It must not exceed 0.50 weight percent sulfur (5.0[middot]10\3\ 
ppm).

[[Page 46922]]

    (2) It must be accompanied by product transfer documents as 
required under Sec.  80.590.
    (3) It must be designated as specified under Sec.  80.598.
    (4) It must be segregated from non-exempt fuel at all points in the 
distribution system.
    (5) It may not be used in any vehicles, engines, or equipment other 
than those referred to in paragraph (a) of this section.
    (c) Fuel not meeting the conditions specified in paragraph (b) of 
this section is subject to the standards, requirements, and 
prohibitions that apply for MVNRLM diesel fuel. Similarly, any person 
who produces, imports, sells, offers for sale, supplies, offers for 
supply, stores, dispenses, or transports global marine fuel without 
meeting the recordkeeping requirements under Sec.  80.602 may not claim 
the fuel is exempt from the standards, requirements, and prohibitions 
that apply for MVNRLM diesel fuel.

PART 1042--CONTROL OF EMISSIONS FROM NEW AND IN-USE MARINE 
COMPRESSION-IGNITION ENGINES AND VESSELS

0
8. The authority citation for part 1042 continues to read as follows:

    Authority:  42 U.S.C. 7401-7671q.

0
9. Section 1042.145 is amended by adding paragraphs (k) through (o) to 
read as follows:


Sec.  1042.145   Interim provisions.

* * * * *
    (k) Adjusted implementation dates for Tier 4 standards. Engines and 
vessels may qualify for delaying the Tier 4 standards specified in 
Sec.  1042.101 as follows:
    (1) The delay is limited to model year 2021 and earlier engines and 
vessels that meet all the following characteristics:
    (i) Category 1 propulsion engines with specific power density above 
35.0 kW/liter, up to maximum engine power of 1,400 kW.
    (ii) Vessels have total propulsion power at or below 2,800 kW.
    (iii) Vessel length is at or below 65 feet.
    (iv) Vessels qualify as uninspected vessels under 46 CFR 2.01-7.
    (v) Vessels have a maximum speed (in knots) at or above 3.0 
 L1/2, where L is the vessel's waterline length, in 
feet.
    (2) The delay also applies for model years 2022 and 2023 for 
engines and vessels that meet all the following characteristics:
    (i) Category 1 propulsion engines with specific power density above 
40.0 kW/liter, up to maximum engine power of 1,000 kW.
    (ii) Vessels have total propulsion power at or below 1,000 kW.
    (iii) Vessel length is at or below 50 feet.
    (iv) Vessels qualify as uninspected vessels under 46 CFR 2.01-7.
    (v) Vessels have a maximum speed (in knots) at or above 3.0 
 L1/2, where L is the vessel's waterline length, in 
feet.
    (vi) Vessels have fiberglass or other nonmetal hulls.
    (3) Affected engines must instead be certified to the appropriate 
Tier 3 emission standards specified in Sec.  1042.101. Engine 
manufacturers may include engine configurations with maximum engine 
power below 600 kW in the same engine family even if the power density 
is below the value specified in paragraph (k)(1) or (2) of this 
section.
    (4) If you introduce an engine into U.S. commerce under this 
section, you must meet the labeling requirements in Sec.  1042.135, but 
add the following statement instead of the compliance statement in 
Sec.  1042.135(c)(10):
    THIS MARINE ENGINE COMPLIES WITH U.S. EPA TIER 3 EMISSION STANDARDS 
UNDER 40 CFR 1042.145(k). ANY OTHER INSTALLATION OR USE OF THIS ENGINE 
MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.
    (l) [Reserved]
    (m) Tier 4 waiver. Starting in model year 2024, vessel 
manufacturers may request an exemption from the Tier 4 standards as 
follows:
    (1) The subject vessels and engines must meet the qualifications of 
paragraph (k)(2) of this section.
    (2) Vessel manufacturers must send a written request for the 
exemption to the Designated Compliance Officer. The request must 
describe efforts taken to identify available engines certified to the 
Tier 4 standards and design efforts for installing engines in the 
subject vessels. The request must also identify the number of vessels 
needing exempt engines. We will approve exemption requests 
demonstrating that there is no suitable engine certified to the Tier 4 
standards and that engine and vessel manufacturers will meet all the 
terms and conditions that apply.
    (3) Engine manufacturers may ship exempt engines under this 
paragraph (m) only after receiving a written request from a vessel 
manufacturer who has received our approval to build a specific number 
of vessels. The prohibitions in Sec.  1068.101(a)(1) do not apply to a 
new engine that is subject to Tier 4 standards, subject to the 
following conditions:
    (i) The engine meets the appropriate Tier 3 emission standards in 
Sec.  1042.101 consistent with the provisions specified in Sec.  
1068.265 of this chapter.
    (ii) The engine is installed on a vessel consistent with the 
conditions of this paragraph (m).
    (iii) The engine meets the labeling requirements in Sec.  1042.135, 
with the following statement instead of the compliance statement in 
Sec.  1042.135(c)(10):
    THIS MARINE ENGINE DOES NOT COMPLY WITH CURRENT U.S. EPA EMISSION 
STANDARDS UNDER 40 CFR 1042.145(m). ANY OTHER INSTALLATION OR USE OF 
THIS ENGINE MAY BE A VIOLATION OF FEDERAL LAW SUBJECT TO CIVIL PENALTY.
    (n) Assigned deterioration factors. Engine manufacturers may use 
assigned deterioration factors for certifying Tier 4 engines with 
maximum power up to 1,400 kW, as follows:
    (1) For engine families that have at least one configuration with 
maximum engine power at or below 1,400 kW and power density above 40.0 
kW/liter, you may use assigned deterioration factors through model year 
2023.
    (2) For engine families that have at least one configuration with 
maximum engine power at or below 1,000 kW and power density above 35.0 
kW/liter, you may use assigned deterioration factors through model year 
2025.
    (3) The assigned deterioration factors are multiplicative values of 
1.1 for NOX and 1.4 for HC and CO, and an additive value of 
0.003 g/kW-hr for PM, unless we approve your request to use different 
values. We will approve your proposed values if you demonstrate that 
they better represent your engines based on data from similar engines 
you have certified.
    (o) Useful life for light-commercial engines. Commercial Category 1 
engines at or above 600 kW with power density above 50.0 kW/liter are 
subject to the exhaust emission standards of this part over a full 
useful life of 10 years or 5,000 hours of operation instead of the 
useful-life values specified in Sec.  1042.101(e).

[FR Doc. 2019-19092 Filed 9-5-19; 8:45 am]
 BILLING CODE 6560-50-P


