40 CFR § 1042.615 - Replacement engine exemption.
For Category 1 and Category 2 replacement engines, the provisions of 40 CFR 1068.240 apply except as described in this section. In unusual circumstances, you may ask us to allow you to apply these provisions for a new Category 3 engine.
(a) This paragraph (a) applies instead of the provisions of 40 CFR 1068.240(b)(2) for installing new marine engines in vessels that are not “new vessels”. The prohibitions in 40 CFR 1068.101(a)(1) do not apply to a new replacement engine if all the following conditions are met:
(1) You use good engineering judgment to determine that no engine certified to the current requirements of this part is produced by any manufacturer with the appropriate physical or performance characteristics to repower the vessel. We have determined that Tier 4 engines with aftertreatment technology do not have the appropriate physical or performance characteristics to replace uncertified engines or engines certified to emission standards that are less stringent than the Tier 4 standards.
(2) You make a record of your determination for each replacement engine with the following information and keep these records for eight years:
(i) If you determine that no engine certified to the current requirements of this part is available with the appropriate performance characteristics, explain why certified engines produced by you and other manufacturers cannot be used as a replacement because they are not similar to the engine being replaced in terms of power or speed.
(ii) You may determine that all engines certified to the current requirements of this part that have appropriate performance characteristics are not available because they do not have the appropriate physical characteristics. If this is the case, explain why these certified engines produced by you and other manufacturers cannot be used as a replacement because their weight or dimensions are substantially different than those of the engine being replaced, or because they will not fit within the vessel's engine compartment or engine room.
(iii) In evaluating appropriate physical or performance characteristics, you may account for compatibility with vessel components you would not otherwise replace when installing a new engine, including transmissions or reduction gears, drive shafts or propeller shafts, propellers, cooling systems, operator controls, or electrical systems for generators or indirect-drive configurations. If you make your determination on this basis, you must identify the vessel components that are incompatible with engines certified to current standards and explain how they are incompatible and why it would be unreasonable to replace them.
(iv) In evaluating appropriate physical or performance characteristics, you may account for compatibility in a set of two or more propulsion engines on a vessel where only one of the engines needs replacement, but only if each engine not needing replacement has operated for less than 75 percent of its applicable useful life in hours or years (see § 1042.101). If any engine not otherwise needing replacement exceeds this 75 percent threshold, your determination must consider replacement of all the propulsion engines.
(v) In addition to the determination specified in paragraph (a)(1) of this section, you must make a separate determination for your own product line addressing every tier of emission standards that is more stringent than the emission standards for the engine being replaced. For example, if the engine being replaced was built before the Tier 1 standards started to apply and engines of that size are currently subject to Tier 3 standards, you must consider whether any Tier 1 or Tier 2 engines that you produce have the appropriate physical and performance characteristics for replacing the old engine; if you can produce a Tier 2 engine with the appropriate physical and performance characteristics, you must use it as the replacement engine.
(3) Send us a report by September 30 of each year describing your engine shipments under this section from the preceding calendar year. Your report must include all the following things and be signed by an authorized representative of your company:
(i) Identify the number of Category 1 and Category 2 exempt replacement engines that meet Tier 1, Tier 2, or Tier 3 standards, or that meet no EPA standards. Count engines separately for each tier of standards. Identify the number of those engines that have been shipped (directly or indirectly) to a vessel owner. This includes engines shipped to anyone intending to install engines on behalf of a specific engine owner. Also include commercial Tier 3 engines with maximum engine power at or above 600 kW even if they have not been shipped to or designated for a specific vessel owner in the specified time frame.
(ii) Describe how you made the determinations described in paragraph (a)(1) of this section for each Category 1 and Category 2 exempt replacement engine for each vessel during the preceding year. For Tier 3 replacement engines at or above 600 kW, describe why any engines certified to Tier 4 standards without aftertreatment are not suitable.
(iii) Identify the number of Category 3 exempt replacement engines. We may require you to describe how you made the determinations described in paragraph (a)(1) of this section for each engine.
(iv) Include the following statement:
I certify that the statements and information in the enclosed document are true, accurate, and complete to the best of my knowledge. I am aware that there are significant civil and criminal penalties for submitting false statements and information, or omitting required statements and information.
(4) The replacement engine must conform to the applicable requirements of 40 CFR part 1043. Note that 40 CFR 1043.10 specifies allowances for vessels that operate only domestically.
(b) The 40-year limit specified in 40 CFR 1068.240(a) does not apply for engines subject to this part 1042. You may accordingly omit the statement on the permanent labels specified in 40 CFR 1068.240 describing this limitation.
(c) Modifying a vessel to significantly increase its value within six months after installing a replacement engine produced under this section is a violation of 40 CFR 1068.101(a)(1).
(d) We may void an exemption for an engine if we determine that any of the conditions described in paragraph (a) of this section are not met.
(e) We may reduce the reporting and recordkeeping requirements in this section.
(f) The provisions of 40 CFR 1068.240(c) allow you to ship a limited number of exempt replacement engines to vessel owners or distributors without making the determinations described in paragraph (a) of this section. Note that such engines do not count toward the production limits of 40 CFR 1068.240(c) if you meet all the requirements of this section by the due date for the annual report. You may count Tier 3 commercial marine replacement engines at or above 600 kW as tracked engines under 40 CFR 1068.240(b) even if they have not been shipped to or designated for a specific vessel owner in the specified time frame.
(g) In unusual circumstances, you may ask us to allow you to apply the replacement engine exemption of this section for repowering a steamship or a vessel that becomes a “new vessel” under § 1042.901 as a result of modifications, as follows:
(1) You must demonstrate that no manufacturer produces an engine certified to Tier 4 standards with the appropriate physical or performance characteristics to repower the vessel. We will consider concerns about the size of the replacement engine and its compatibility with vessel components relative to the overall scope of the project.
(2) Exempt replacement engines under this paragraph (g) must meet the Tier 3 standards specified in § 1042.101 (or the Tier 2 standards if there are no Tier 3 standards).
(3) We will not approve a request for an exemption from the Tier 3 standards for any engines.
(4) You may not use the exemption provisions for untracked replacement engines under 40 CFR 1068.240(c) for repowering a vessel that becomes a “new vessel” under § 1042.901 as a result of modifications.