(a) Applicability. The provisions of this subpart apply to certain types of new vehicles as described in this paragraph (a). Where the provisions apply for a type of vehicle, they apply for vehicles powered by any fuel, unless otherwise specified. In some cases, manufacturers of heavy-duty engines and vehicles can choose whether to meet the requirements of this subpart or the requirements of subpart A of this part; those provisions are therefore considered optional, but only to the extent that manufacturers comply with the other set of requirements. In cases where a provision applies only to a certain vehicle group based on its model year, vehicle class, motor fuel, engine type, or other distinguishing characteristics, the limited applicability is cited in the appropriate section. References in this subpart to 40 CFR part 86 generally apply to Tier 2 and older vehicles, while references to 40 CFR part 1066 generally apply to Tier 3 and newer vehicles; see 40 CFR 86.101 for detailed provisions related to this transition. The provisions of this subpart apply to certain vehicles as follows:

(1) The provisions of this subpart apply for light-duty vehicles and light-duty trucks.

(2) The provisions of this subpart apply for medium-duty passenger vehicles. The provisions of this subpart also apply for other complete heavy-duty vehicles at or below 14,000 pounds GVWR, except as follows:

(i) The provisions of this subpart are optional for diesel-cycle vehicles through model year 2017; however, if you are using the provisions of §86.1811-17(b)(9) or §86.1816-18(b)(8) to transition to the Tier 3 exhaust emission standards, the provisions of this subpart are optional for those diesel-cycle vehicles until the start of the Tier 3 phase-in for those vehicles.

(ii) [Reserved]

(iii) The provisions of this subpart are optional for diesel-fueled Class 3 heavy-duty vehicles in a given model year if those vehicles are equipped with engines certified to the appropriate standards in §86.007-11 for which less than half of the engine family's sales for the model year in the United States are for complete Class 3 heavy-duty vehicles. This includes engines sold to all vehicle manufacturers. If you are the original manufacturer of the engine and the vehicle, base this showing on your sales information. If you manufacture the vehicle but are not the original manufacturer of the engine, you must use your best estimate of the original manufacturer's sales information.

(3) The provisions of this subpart generally do not apply to incomplete heavy-duty vehicles or to complete vehicles above 14,000 pounds GVWR (see subpart A of this part and 40 CFR parts 1036 and 1037). However, this subpart applies to such vehicles in the following cases:

(i) Heavy duty vehicles above 14,000 pounds GVWR may be optionally certified to the exhaust emission standards in this subpart, including the greenhouse gas emission standards, if they are properly included in test group with similar vehicles at or below 14,000 pounds GVWR. Emission standards apply to these vehicles as if they were Class 3 heavy-duty vehicles. The work factor for these vehicles may not be greater than the largest work factor that applies for vehicles in the test group that are at or below 14,000 pounds GVWR (see §86.1819-14).

(ii) Incomplete heavy-duty vehicles at or below 14,000 pounds GVWR may be optionally certified to the exhaust emission standards in this subpart that apply for heavy-duty vehicles.

(iii) The evaporative emission standards apply for incomplete heavy-duty vehicles at or below 14,000 pounds GVWR. Evaporative emission standards also apply for complete and incomplete heavy-duty vehicles above 14,000 pounds GVWR as specified in 40 CFR 1037.103.

(iv) Refueling emission standards apply for complete heavy-duty vehicles above 14,000 pounds GVWR as specified in 40 CFR 1037.103. All sizes of incomplete heavy-duty vehicles may be optionally certified to the refueling emission standards in this subpart.

(v) The onboard diagnostic requirements in this subpart apply for incomplete vehicles at or below 14,000 pounds GVWR, but not for any vehicles above 14,000 pounds GVWR.

(4) If you optionally certify vehicles to standards under this subpart, those vehicles are subject to all the regulatory requirements as if the standards were mandatory.

(b) Relationship to subpart A of this part. Unless specified otherwise, if heavy-duty vehicles are not subject to provisions of this subpart or if manufacturers choose not to meet optional provisions of this subpart as described in paragraph (a) of this section, the engines installed in those vehicles must meet the corresponding requirements under subpart A of this part. If a vehicle and its installed engine comply with a mix of provisions from this subpart and from subpart A of this part, the vehicle must be certified under this subpart, and the engine does not need to be certified separately.

(c) Clean alternative fuel conversions. The provisions of this subpart also apply to clean alternative fuel conversions as defined in 40 CFR 85.502 of all vehicles described in paragraph (a) of this section.

(d) Small-volume manufacturers. Special certification procedures are available for small-volume manufacturers as described in §86.1838.

(e) You. The term “you” in this subpart refers to manufacturers subject to the emission standards and other requirements of this subpart.

(f) Vehicle. The term “vehicle”, when used generically, does not exclude any type of vehicle for which the regulations apply (such as light-duty trucks).

(g) Complete and incomplete vehicles. Several provisions in this subpart, including the applicability provisions described in this section, are different for complete and incomplete vehicles. We differentiate these vehicle types as described in §86.085-20.

(h) Applicability of provisions of this subpart to light-duty vehicles, light-duty trucks, medium-duty passenger vehicles, and heavy-duty vehicles. Numerous sections in this subpart provide requirements or procedures applicable to a “vehicle” or “vehicles.” Unless otherwise specified or otherwise determined by the Administrator, the term “vehicle” or “vehicles” in those provisions apply equally to light-duty vehicles (LDVs), light-duty trucks (LDTs), medium-duty passenger vehicles (MDPVs), and heavy-duty vehicles (HDVs), as those terms are defined in §86.1803-01.

(i) Applicability of provisions of this subpart to exhaust greenhouse gas emissions. Numerous sections in this subpart refer to requirements relating to “exhaust emissions.” Unless otherwise specified or otherwise determined by the Administrator, the term “exhaust emissions” refers at a minimum to emissions of all pollutants described by emission standards in this subpart, including carbon dioxide (CO2), nitrous oxide (N2O), and methane (CH4).

(j) Exemption from greenhouse gas emission standards for small businesses.

(1) Manufacturers that qualify as a small business under the Small Business Administration regulations in 13 CFR part 121 are exempt from the greenhouse gas emission standards specified in §86.1818-12 and in associated provisions in this part and in part 600 of this chapter. This exemption applies to both U.S.-based and non-U.S.-based businesses. The following categories of businesses (with their associated NAICS codes) may be eligible for exemption based on the Small Business Administration size standards in 13 CFR 121.201.

(i) Vehicle manufacturers (NAICS code 336111).

(ii) Independent commercial importers (NAICS codes 811111, 811112, 811198, 423110, 424990, and 441120).

(iii) Alternate fuel vehicle converters (NAICS codes 335312, 336312, 336322, 336399, 454312, 485310, and 811198).

(2)

(i) Effective for the 2013 and later model years, a manufacturer that would otherwise be exempt under the provisions of paragraph (j)(1) of this section may optionally comply with the greenhouse gas emission standards specified in §86.1818. A manufacturer making this choice is required to comply with all the applicable standards and provisions in §86.1818 and with all associated and applicable provisions in this part and in part 600 of this chapter.

(ii) Such a manufacturer may optionally earn credits in the 2012 model year by demonstrating fleet average CO2 emission levels below the fleet average CO2 standard that would have been applicable in model year 2012 if the manufacturer had not been exempt. Once the small business manufacturer opting into the greenhouse gas emission standards completes certification for the 2013 model year, that manufacturer will be eligible to generate greenhouse gas emission credits for their 2012 model year production, after the conclusion of the 2012 model year for that manufacturer. Manufacturers electing to earn these 2012 credits must comply with the model year reporting requirements in §600.512-12 for that model year. The 2012 fleet average must be calculated according to §600.510 and other applicable requirements in part 600 of this chapter, and 2012 credits must be calculated according to §86.1865 and other applicable requirements in this part.

(k) Conditional exemption from greenhouse gas emission standards. Manufacturers meeting the eligibility requirements described in paragraphs (k)(1) and (2) of this section may request a conditional exemption from compliance with the emission standards described in §86.1818-12(c) through (e) and associated provisions in this part and in part 600 of this chapter. A conditional exemption under this paragraph (k) may be requested for the 2012 through 2016 model years. The terms “sales” and “sold” as used in this paragraph (k) shall mean vehicles produced for U.S. sale, where “U.S.” means the states and territories of the United States. For the purpose of determining eligibility the sales of related companies shall be aggregated according to the provisions of §86.1838-01(b)(3) or, if a manufacturer has been granted operational independence status under §86.1838(d), eligibility shall be based on vehicle production of that manufacturer.

(1) Eligibility requirements. Eligibility as determined in this paragraph (k) shall be based on the total sales of combined passenger automobiles and light trucks. Manufacturers must meet one of the requirements in paragraph (k)(1)(i) or (ii) of this section to initially qualify for this exemption.

(i) A manufacturer with 2008 or 2009 model year sales of more than zero and fewer than 5,000 is eligible for a conditional exemption from the greenhouse gas emission standards described in §86.1818-12 paragraphs (c) through (e).

(ii) A manufacturer with 2008 or 2009 model year sales of more than zero and fewer than 5,000 while under the control of another manufacturer, where those 2008 or 2009 model year vehicles bore the brand of the producing manufacturer but were sold by or otherwise under the control of another manufacturer, and where the manufacturer producing the vehicles became independent no later than December 31, 2010, is eligible for a conditional exemption from the greenhouse gas emission standards described in §86.1818-12 paragraphs (c) through (e).

(2) Maintaining eligibility for exemption from greenhouse gas emission standards. To remain eligible for exemption under this paragraph (k) the manufacturer's average sales for the three most recent consecutive model years must remain below 5,000. If a manufacturer's average sales for the three most recent consecutive model years exceeds 4999, the manufacturer will no longer be eligible for exemption and must meet applicable emission standards according to the provisions in this paragraph (k)(2).

(i) If a manufacturer's average sales for three consecutive model years exceeds 4999, and if the increase in sales is the result of corporate acquisitions, mergers, or purchase by another manufacturer, the manufacturer shall comply with the emission standards described in §86.1818-12 paragraphs (c) through (e), as applicable, beginning with the first model year after the last year of the three consecutive model years.

(ii) If a manufacturer's average sales for three consecutive model years exceeds 4999 and is less than 50,000, and if the increase in sales is solely the result of the manufacturer's expansion in vehicle production, the manufacturer shall comply with the emission standards described in §86.1818-12 paragraphs (c) through (e), as applicable, beginning with the second model year after the last year of the three consecutive model years.

(iii) If a manufacturer's average sales for three consecutive model years exceeds 49,999, the manufacturer shall comply with the emission standards described in §86.1818-12 paragraphs (c) through (e), as applicable, beginning with the first model year after the last year of the three consecutive model years.

(3) Requesting the conditional exemption from standards. To be exempted from the standards described in §86.1818-12(c) through (e), the manufacturer must submit a declaration to EPA containing a detailed written description of how the manufacturer qualifies under the provisions of this paragraph (k). The declaration must describe eligibility information that includes the following: model year 2008 and 2009 sales, sales volumes for each of the most recent three model years, detailed information regarding ownership relationships with other manufacturers, details regarding the application of the provisions of §86.1838-01(b)(3) regarding the aggregation of sales of related companies, and documentation of good-faith efforts made by the manufacturer to purchase credits from other manufacturers. This declaration must be signed by a chief officer of the company, and must be made prior to each model year for which the exemption is requested. The declaration must be submitted to EPA at least 30 days prior to the introduction into commerce of any vehicles for each model year for which the exemption is requested, but not later than December of the calendar year prior to the model year for which exemption is requested. A conditional exemption will be granted when EPA approves the exemption declaration. The declaration must be sent to the Environmental Protection Agency at the following address: Director, Compliance and Innovative Strategies Division, U.S. Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, Michigan 48105.

[75 FR 25682, May 7, 2010, as amended at 76 FR 19873, Apr. 8, 2011; 77 FR 63155, Oct. 15, 2012; 79 FR 23706, Apr. 28, 2014; 80 FR 9104, Feb. 19, 2015; 81 FR 73982, Oct. 25, 2016]