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Federal Register / Vol. 86, No. 122 / Tuesday, June 29, 2021 / Rules and Regulations Where we identify an engine category, the provisions of this part also apply with respect to the equipment using such engines. This part applies to different engine and equipment categories as follows:
1 This part applies to motor vehicles we regulate under 40 CFR part 86, subpart S, to the extent and in the manner specified in 40 CFR parts 85
and 86.
2 This part applies for heavy-duty motor vehicles we regulate under 40
CFR part 1037, subject to the provisions of 40 CFR parts 85 and 1037. This includes trailers. This part applies to other heavy-duty motor vehicles and motor vehicle engines to the extent and in the manner specified in 40 CFR parts 85, 86, and 1036.
3 This part applies to highway motorcycles we regulate under 40 CFR
part 86, subparts E and F, to the extent and in the manner specified in 40 CFR
parts 85 and 86.
4 This part applies to aircraft we regulate under 40 CFR part 87 to the extent and in the manner specified in 40
CFR part 87.
5 This part applies for locomotives that are subject to the provisions of 40
CFR part 1033. This part does not apply for locomotives or locomotive engines that were originally manufactured before July 7, 2008, and that have not been remanufactured on or after July 7, 2008.
6 This part applies for land-based nonroad compression-ignition engines that are subject to the provisions of 40
CFR part 1039.
7 This part applies for stationary compression-ignition engines certified using the provisions of 40 CFR parts 1039 and 1042 as described in 40 CFR
part 60, subpart IIII.
8 This part applies for marine compression-ignition engines that are subject to the provisions of 40 CFR part 1042.
9 This part applies for marine sparkignition engines that are subject to the provisions of 40 CFR part 1045.
10 This part applies for large nonroad spark-ignition engines that are subject to the provisions of 40 CFR part 1048.
11 This part applies for stationary spark-ignition engines certified using the provisions of 40 CFR part 1048 or 1054, as described in 40 CFR part 60, subpart JJJJ.
12 This part applies for recreational engines and vehicles, including snowmobiles, off-highway motorcycles, and all-terrain vehicles that are subject to the provisions of 40 CFR part 1051.
13 This part applies for small nonroad spark-ignition engines that are
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subject to the provisions of 40 CFR part 1054.
14 This part applies for fuel-system components installed in nonroad equipment powered by volatile liquid fuels that are subject to the provisions of 40 CFR part 1060.

395. Amend 1068.10 by revising the section heading and paragraphs b and c to read as follows:
1068.10 Confidential business information.

b We will store your confidential business information as described in 40
CFR part 2. Also, we will disclose it only as specified in 40 CFR part 2. This paragraph b applies both to any information you send us and to any information we collect from inspections, audits, or other site visits.
c If you send us a second copy without the confidential business information, we will assume it contains nothing confidential whenever we need to release information from it.

396. Amend 1068.240 by revising paragraphs b6 and c1 and 3 to read as follows:
1068.240
engines.

Exempting new replacement

b
6 Engines exempt under this paragraph b may not be introduced into U.S. commerce before you make the determinations under paragraph b2
of this section, except as specified in this paragraph b6. We may waive the restriction in this paragraph b6 for engines identified under paragraph c5 of this section that you ship to a distributor. Where we waive the restriction in this paragraph b6, you must take steps to ensure that the engine is installed consistent with the requirements of this paragraph b. For example, at a minimum you must report to us annually whether engines we allowed you to ship to a distributor under this paragraph b6 have been placed into service or remain in inventory. After an engine is placed into service, your report must describe how the engine was installed consistent with the requirements of this paragraph b.
Send these reports to the Designated Compliance Officer by the deadlines we specify.
c
1 You may produce a limited number of replacement engines under this paragraph c representing 0.5
percent of your annual production
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volumes for each category and subcategory of engines identified in Table 1 to this section or five engines for each category and subcategory, whichever is greater. Calculate this number by multiplying your annual U.S.-directed production volume by 0.005 or 0.01 through 2013 and rounding to the nearest whole number.
Determine the appropriate production volume by identifying the highest total annual U.S.-directed production volume of engines from the previous three model years for all your certified engines from each category or subcategory identified in Table 1 to this section, as applicable. In unusual circumstances, you may ask us to base your production limits on U.S.-directed production volume for a model year more than three years prior. You may include stationary engines and exempted engines as part of your U.S.directed production volume. Include U.S.-directed engines produced by any affiliated companies and those from any other companies you license to produce engines for you.

3 Send the Designated Compliance Officer a report by September 30 of the year following any year in which you produced exempted replacement engines under this paragraph c.
i In your report include the total number of replacement engines you produce under this paragraph c for each category or subcategory, as appropriate, and the corresponding total production volumes determined under paragraph c1 of this section. If you send us a report under this paragraph c3, you must also include the total number of complete and partially complete replacement engines you produced under paragraphs b and e of this section including any replacement marine engines subject to reporting under 40 CFR 1042.615.
ii Count exempt engines as tracked under paragraph b of this section only if you meet all the requirements and conditions that apply under paragraph b2 of this section by the due date for the annual report. In the annual report you must identify any replaced engines from the previous year that you were not able to recover by the due date for the annual report. Continue to report those engines in later reports until you recover the replaced engines. If any replaced engine is not recovered for the fifth annual report following the production report, treat this as an untracked replacement in the fifth annual report for the preceding year.
iii You may include the information required under this paragraph c3 in
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