§ 86.1817-05 Complete heavy-duty vehicle averaging, trading, and banking program.
(a) General. (1) Complete heavy-duty vehicles eligible for the NOX averaging, trading, and banking program are described in the applicable emission standards section of this subpart. Participation in this averaging, trading, and banking program is voluntary.
(2)
(i) Test groups with a family emission limit (FEL) as defined in § 86.1803–01 exceeding the applicable standard shall obtain emission credits as defined in § 86.1803–01 in a mass amount sufficient to address the shortfall. Credits may be obtained from averaging, trading, or banking, as defined in § 86.1803–01 within the averaging set restrictions described in paragraph (d) of this section.
(ii) Test groups with an FEL below the applicable standard will have emission credits available to average, trade, bank or a combination thereof. Credits may not be used for averaging or trading to offset emissions that exceed an FEL. Credits may not be used to remedy an in-use nonconformity determined by a Selective Enforcement Audit or by recall testing. However, credits may be used to allow subsequent production of vehicles for the test group in question if the manufacturer elects to recertify to a higher FEL.
(b) Participation. Participation in the NOX averaging, trading, and banking program shall be done as follows:
(1) During certification, the manufacturer shall:
(i) Declare its intent to include specific test groups in the averaging, trading and banking program.
(ii) Declare an FEL for each test group participating in the program.
(A) The FEL must be to the same level of significant digits as the emission standard (one-hundredth of a gram per mile for NOX emissions).
(B) In no case may the FEL exceed the upper limit prescribed in the section concerning the applicable complete heavy-duty vehicle chassis-based NOX emission standard.
(iii) Calculate the projected NOX emission credits (positive or negative) as defined in § 86.1803–01 based on quarterly production projections for each participating test group, using the applicable equation in paragraph (c) of this section and the applicable factors for the specific test group.
(iv)
(A) Determine and state the source of the needed credits according to quarterly projected production for test groups requiring credits for certification.
(B) State where the quarterly projected credits will be applied for test groups generating credits.
(C) Emission credits as defined in § 86.1803–01 may be obtained from or applied to only test groups within the same averaging set as defined in § 86.1803–01. Emission credits available for averaging, trading, or banking, may be applied exclusively to a given test group, or designated as reserved credits as defined in § 86.1803–01.
(2) Based on this information, each manufacturer's certification application must demonstrate:
(i) That at the end of model year production, each test group has a net emissions credit balance of zero or more using the methodology in paragraph (c) of this section with any credits obtained from averaging, trading or banking.
(ii) The source of the credits to be used to comply with the emission standard if the FEL exceeds the standard, or where credits will be applied if the FEL is less than the emission standard. In cases where credits are being obtained, each test group involved must state specifically the source (manufacturer/test group) of the credits being used. In cases where credits are being generated/supplied, each test group involved must state specifically the designated use (manufacturer/test group or reserved) of the credits involved. All such reports shall include all credits involved in averaging, trading or banking.
(3) During the model year, manufacturers must:
(i) Monitor projected versus actual production to be certain that compliance with the emission standards is achieved at the end of the model year.
(ii) Provide the end-of-year reports required under paragraph (i) of this section.
(iii) For manufacturers participating in emission credit trading, maintain the quarterly records required under paragraph (l) of this section.