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EPA Flexibility Provisions for Equipment Manufacturers Program Summary

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EPA Flexibility Provisions for Equipment Manufacturers Program Summary

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    1. EPA Flexibility Provisions for Equipment Manufacturers Program Summary

    2. EPA Rule: 40 CFR Parts 8,86,89

    3. 3 Viable Options in place: 1. Percent of Production Allowance 2. Small Volume Allowance 3. Existing Inventory Allowance

    4. 1. Percent of Production Allowance Cumulative percentage of 80 percent over 7 years 7 years beginning when Tier 2 first applies to the power category No exemptions are allowed following the 7 years. Used when manufacturer has 2 engine families in the same power category.

    5. Example : Percent of Production Allowance An OEM may exempt the following: Power category 101-174 HP 40 percent of its 2004 production 30 percent of its 2005 production 10 percent of its 2006 production The most common way to achieve a percent of production without having machines with 2 types of engine models is to have 2 completely different machine models utilizing engines in the same power category. Can’t use the Small Volume Allowance when multiple engine families (models) are used in each power category.

    6. 2. Small Volume Allowance 700 engines total over 7 years 200 in any one year Must limit exempted engines to a single engine family in each power category Example: An OEM may exempt the following: Power category 101-174 HP 15 engines of the same family for 2004 production 15 engines of the same family for 2005 production 15 engines of the same family for 2006 production

    7. 3. Existing Inventory Allowance Allows OEM to use any existing stock of non-certified engines. Prohibits purposeful engine “stockpiling”

    8. Enforcement and Recordkeeping Engine Manufacturer Continue to build and sell the engines to meet the market demand, provided they receive written assurance from the engine purchasers that such engines are being procured for this purpose. Required to annually provide information on the number of such engines produced and on who they are provided to. OEM Engine Purchasers Keep production records of the equipment excepted under the allowance for two full years including Serial and model numbers Dates of production of the equipment and installed engines Rated power of each engine Calculations used to verify that the allowances have not been exceeded in each power category Make records available to the Agency upon request.

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