(a) General requirement. Every new motorcycle manufactured for sale, sold, offered for sale, introduced or delivered for introduction into commerce, or imported into the United States which is subject to any of the standards prescribed in this subpart is required to be covered by a certificate of conformity issued pursuant to this subpart, except as specified in paragraph (b) of this section, or otherwise exempted from this requirement.

(b) Interim personal use exemption. An individual may manufacture one motorcycle for personal use without a certificate of conformity, subject to the following provisions:

(1) The motorcycle may not be manufactured from a certified motorcycle. The motorcycle may not be manufactured from a partially complete motorcycle that is equivalent to a certified motorcycle, unless the emission controls are included in the final product. The motorcycle must be manufactured primarily from unassembled components, but may incorporate some preassembled components. For example, fully preassembled transmissions may be used.

(2) The motorcycle may not be sold within five years of the date of final assembly.

(3) No individual may manufacture more than one motorcycle during his or her lifetime under this exemption. This restriction applies with respect to the person who purchases the components and/or uses the motorcycle, rather than to the person(s) who actually assemble(s) the motorcycle.

(4) This exemption may not be used to circumvent the requirements of paragraph (a) of this section or the requirements of the Clean Air Act. For example, this exemption would not cover a case in which an entity purchases a kit, assembles the kit, and then sells it to another party; this would be considered to be the sale of the complete motorcycle.

(c) Interim display exemptions. Uncertified custom motorcycles that are used solely for display purposes are exempt from the standards provided they conform to the requirements of this paragraph (c). Unless a certificate of conformity has been received for such motorcycles, they may not be operated on the public streets or highways except for that operation incident and necessary to the display purpose.

(1) No request is necessary for display motorcycles that will not be sold or leased.

(2) The following requirements apply for exempting display motorcycles that will be sold or leased:

(i) Manufacturers planning to sell motorcycles for display must notify EPA of their intent to do so before they sell any exempted motorcycles. They must also maintain sales records of exempted motorcycles for at least three years and make them available to EPA upon request.

(ii) No manufacturer may sell or lease more than 24 exempted display motorcycles in any single calendar year.

(iii) Anyone selling or leasing a motorcycle exempt under this paragraph (c) must ensure that the buyer or lessee agrees to comply with the display exemption terms in the regulations.

(3) Each motorcycle exempt under this paragraph (c) must include a label that identifies the manufacturer and includes the following statement: THIS MOTORCYCLE IS EXEMPT FROM EPA EMISSION REQUIREMENTS. ITS USE ON PUBLIC ROADS IS LIMITED PURSUANT TO 40 CFR 86.407-78(c). EPA may allow manufacturers to locate the label in a location where it is obscured or hidden by a readily removable component. For example, EPA may allow the label to be located under the seat.

(4) As described in 40 CFR part 1051, motorcycles that are not considered to be motor vehicles according to 40 CFR 85.1703(a) may be exempt under this paragraph (c) from the standards and requirements of 40 CFR part 1051. Such motorcycles shall be combined with the manufacturer's highway motorcycles with respect to the sales restriction described in paragraph (c)(2)(ii) of this section.

(5) This exemption may not be used to circumvent the requirements of paragraph (a) of this section or the requirements of the Clean Air Act.

[69 FR 2435, Jan. 15, 2004]