{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where part_number = 535 sorted by section_id", "rows": [["46:46:9.0.1.2.16.1.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "A", "Subpart A\u2014General Provisions", "", "\u00a7 535.101 Authority.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50727, Oct. 1, 2009]", "The rules in this part are issued pursuant to the authority of section 4 of the Administrative Procedure Act (5 U.S.C. 553), sections 2, 3, 4, 5, 6, 7, 8, 10, 11, 13, 15, 16, 17, and 19 of the Shipping Act of 1984 (\u201cthe Act\u201d) (46 U.S.C. 305, 40101-40104, 40301-40307, 40501-40503, 40901-40904, 41101-41109, 41301-41302, and 41305-41307), and the Ocean Shipping Reform Act of 1998, Pub. L. 105-258, 112 Stat. 1902."], ["46:46:9.0.1.2.16.1.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "A", "Subpart A\u2014General Provisions", "", "\u00a7 535.102 Purpose.", "FMC", "", "", "", "This part implements those provisions of the Act that govern agreements by or among ocean common carriers and agreements among marine terminal operators and among one or more marine terminal operators and one or more ocean common carriers. This part also sets forth more specifically certain procedures provided for in the Act."], ["46:46:9.0.1.2.16.1.1.3", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "A", "Subpart A\u2014General Provisions", "", "\u00a7 535.103 Policies.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50727, Oct. 1, 2009]", "(a) The Act requires that agreements be processed and reviewed, upon their initial filing, according to strict statutory deadlines. This part is intended to establish procedures for the orderly and expeditious review of filed agreements in accordance with the statutory requirements.\n\n(b) The Act requires that agreements be reviewed, upon their initial filing, to ensure compliance with all applicable provisions of the Act and empowers the Commission to obtain information to conduct that review. This part identifies those types of agreements that must be accompanied by information submissions when they are first filed, and sets forth the kind of information for certain agreements that the Commission believes relevant to that review. Only information that is relevant to such a review is requested. It is the policy of the Commission to keep the costs of regulation to a minimum and at the same time obtain information needed to fulfill its statutory responsibility.\n\n(c) To further the goal of expedited processing and review of agreements upon their initial filing, agreements are required to meet certain minimum requirements as to form. These requirements are intended to ensure expedited review and should assist parties in preparing agreements. These requirements as to form do not affect the substance of an agreement and are intended to allow parties the freedom to develop innovative commercial relationships and provide efficient and economic transportation systems.\n\n(d) The Act itself excludes certain agreements from the filing requirements and authorizes the Commission to exempt other classes of agreements from any requirement of the Act or this part. To minimize delay in the implementation of routine agreements and to avoid the private and public cost of unnecessary regulation, certain classes of agreements are exempt from the filing requirements of this part.\n\n(e) Under the regulatory framework established by the Act, the role of the Commission as a monitoring agency has been enhanced. The Act favors greater freedom in allowing parties to form their commercial arrangements. This, however, requires greater monitoring of agreements after they have become effective to assure their continued compliance with all applicable provisions of the Act. The Act empowers the Commission to impose certain recordkeeping and reporting requirements. This part identifies those agreements that require specific record retention and reporting to the Commission and prescribes the applicable period of record retention, the form and content of such reporting, and the applicable time periods for filing with the Commission. Only information that is necessary to assure that the Commission's monitoring responsibilities will be fulfilled is requested.\n\n(f) The Act requires that conference agreements contain certain mandatory provisions. Each conference agreement must:\n\n(1) State its purpose;\n\n(2) Provide reasonable and equal terms and conditions for admission and readmission to membership;\n\n(3) Allow for withdrawal from membership upon reasonable notice without penalty;\n\n(4) Require an independent neutral body to police the conference, if requested by a member;\n\n(5) Prohibit conduct specified in sections 10(c)(1) or 10(c)(3) of the Act (46 U.S.C. 41105(1) or 41105(3));\n\n(6) Provide for a consultation process;\n\n(7) Establish procedures for considering shippers' requests and complaints; and\n\n(8) Provide for independent action.\n\n(g) To promote competitive and efficient transportation and a greater reliance on the marketplace, the Act places limits on carriers' agreements regarding service contracts. Carriers may not enter into an agreement to prohibit or restrict members from engaging in contract negotiations, may not require members to disclose service contract negotiations or terms and conditions (other than those required to be published), and may not adopt mandatory rules or requirements affecting the right of an agreement member or agreement members to negotiate and enter into contracts. However, agreement members may adopt voluntary guidelines covering the terms and procedures of members' contracts."], ["46:46:9.0.1.2.16.1.1.4", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "A", "Subpart A\u2014General Provisions", "", "\u00a7 535.104 Definitions.", "FMC", "", "", "", "When used in this part:\n\n(a)  Agreement  means an understanding, arrangement, or association, written or oral (including any modification, cancellation or appendix) entered into by or among ocean common carriers and/or marine terminal operators, but does not include a maritime labor agreement.\n\n(b)  Antitrust laws  means the Act of July 2, 1890 (ch. 647, 26 Stat. 209), 15 U.S.C. 1, as amended; the Act of October 15, 1914 (ch. 323, 38 Stat. 730), 15 U.S.C. 12, as amended; the Federal Trade Commission Act (38 Stat. 717), 15 U.S.C. 41, as amended; sections 73 and 74 of the Act of August 27, 1894 (28 Stat. 570), 15 U.S.C. 8, 9, as amended; the Act of June 19, 1936 (ch. 592, 49 Stat. 1526), 15 U.S.C. 13, as amended; the Antitrust Civil Process Act (76 Stat. 548), 15 U.S.C. 1311, note as amended; and amendments and Acts supplementary thereto.\n\n(c)  Appendix  means a document containing additional material of limited application and appended to an agreement, distinctly differentiated from the main body of the basic agreement.\n\n(d)  Assessment agreement  means an agreement, whether part of a collective bargaining agreement or negotiated separately, that provides for collectively bargained fringe benefit obligations on other than a uniform man-hour basis regardless of the cargo handled or type of vessel or equipment utilized.\n\n(e)  Capacity rationalization  means a concerted reduction, stabilization, withholding, or other limitation in any manner whatsoever by ocean common carriers on the size or number of vessels or available space offered collectively or individually to shippers in any trade or service.\n\n(f)  Common carrier  means a person holding itself out to the general public to provide transportation by water of passengers or cargo between the United States and a foreign country for compensation that:\n\n(1) Assumes responsibility for the transportation from the port or point of receipt to the port or point of destination; and\n\n(2) Utilizes, for all or part of that transportation, a vessel operating on the high seas or the Great Lakes between a port in the United States and a port in a foreign country, except that the term does not include a common carrier engaged in ocean transportation by ferry boat, ocean tramp, or chemical parcel tanker, or by a vessel when primarily engaged in the carriage of perishable agricultural commodities:\n\n(i) If the common carrier and the owner of those commodities are wholly owned, directly or indirectly, by a person primarily engaged in the marketing and distribution of those commodities; and\n\n(ii) Only with respect to those commodities.\n\n(g)  Conference agreement  means an agreement between or among two or more ocean common carriers that provides for the fixing of and adherence to uniform tariff rates, charges, practices, and conditions of service relating to the receipt, carriage, handling and/or delivery of passengers or cargo for all members. The term does not include joint service, pooling, sailing, space charter, or transshipment agreements.\n\n(h)  Consultation  means a process whereby a conference and a shipper confer for the purpose of promoting the commercial resolution of disputes and/or the prevention and elimination of the occurrence of malpractices.\n\n(i)  Cooperative working agreement  means an agreement that establishes exclusive, preferential, or cooperative working relationships that are subject to the Act, but that do not fall precisely within the parameters of any specifically defined agreement.\n\n(j)  Effective agreement  means an agreement effective under the Act.\n\n(k)  Equal access agreement  means an agreement between ocean common carriers of different nationalities, as determined by the incorporation or domicile of the carriers' operating companies, whereby such ocean common carriers associate for the purpose of gaining reciprocal access to cargo that is otherwise reserved by national decree, legislation, statute or regulation to carriage by the merchant marine of the carriers' respective nations.\n\n(l)  Independent neutral body  means a disinterested third party, authorized by a conference and its members to review, examine, and investigate alleged breaches or violations of the conference agreement and/or the conference's properly promulgated tariffs, rules, or regulations by any member of the conference.\n\n(m)  Information Form  means the form containing economic information that must accompany the filing of certain agreements and modifications.\n\n(n)  Interconference agreement  means an agreement between conferences.\n\n(o)(1)  Joint service agreement  means an agreement between ocean common carriers operating as a joint venture whereby a separate service is established that:\n\n(i) Holds itself out in its own distinct operating name;\n\n(ii) Independently fixes its own rates, charges, practices, and conditions of service or chooses to participate under its operating name in another agreement that is duly authorized to determine and implement such activities;\n\n(iii) Independently publishes its own tariff or chooses to participate under its operating name in an otherwise established tariff;\n\n(iv) Issues its own bills of lading; and\n\n(v) Acts generally as a single carrier.\n\n(2) The common use of facilities in a joint service may occur, and there is no competition between members for cargo in the agreement trade; but they otherwise maintain their separate identities.\n\n(p)  Marine terminal facilities  means one or more structures (and services connected therewith) comprising a terminal unit, including, but not limited to docks, berths, piers, aprons, wharves, warehouses, covered and/or open storage space, cold storage plants, grain elevators and/or bulk cargo loading and/or unloading structures, landings, and receiving stations, used for the transmission, care and convenience of cargo and/or passengers or the interchange of same between land and ocean common carriers or between two ocean common carriers. This term is not limited to waterfront or port facilities and includes so-called off-dock container freight stations at inland locations and any other facility from which inbound waterborne cargo may be tendered to the consignee or outbound cargo may be received from shippers for vessel or container loading.\n\n(q)  Marine terminal operator  means a person engaged in the United States in the business of furnishing wharfage, dock, warehouse, or other terminal facilities in connection with a common carrier, or in connection with a common carrier and a water carrier subject to subchapter II of chapter 135 of title 49 U.S.C. This term does not include shippers or consignees who exclusively furnish marine terminal facilities or services in connection with tendering or receiving proprietary cargo from a common carrier or water carrier.\n\n(r)  Maritime labor agreement  means a collective-bargaining agreement between an employer subject to the Act or group of such employers, and a labor organization representing employees in the maritime or stevedoring industry, or an agreement preparatory to such a collective-bargaining agreement among members of a multi-employer bargaining group, or an agreement specifically implementing provisions of such a collective-bargaining agreement or providing for the formation, financing or administration of a multi-employer bargaining group; but the term does not include an assessment agreement.\n\n(s)  Modification  means any change, alteration, correction, addition, deletion, or revision of an existing effective agreement or to any appendix to such an agreement.\n\n(t)  Monitoring Report  means the report containing economic information that must be filed at defined intervals with regard to certain agreements that are effective under the Act.\n\n(u)  Ocean common carrier  means a common carrier that operates, for all or part of its common carrier service, a vessel on the high seas or the Great Lakes between a port in the United States and a port in a foreign country, except that the term does not include a common carrier engaged in ocean transportation by ferry boat, ocean tramp, or chemical parcel-tanker.\n\n(v)  Ocean freight forwarder  means a person in the United States that dispatches shipments from the United States via common carriers and books or otherwise arranges space for those shipments on behalf of shippers; and processes the documentation or performs related activities incident to those shipments.\n\n(w)  Person  means individuals, corporations, partnerships and associations existing under or authorized by the laws of the United States or of a foreign country.\n\n(x)  Pooling agreement  means an agreement between ocean common carriers that provides for the division of cargo carryings, earnings, or revenue and/or losses between the members in accordance with an established formula or scheme.\n\n(y)  Port  means the place at which an ocean common carrier originates or terminates (and/or transships) its actual ocean carriage of cargo or passengers as to any particular transportation movement.\n\n(z)  Rate,  for purposes of this part, includes both the basic price paid by a shipper to an ocean common carrier for a specified level of transportation service for a stated quantity of a particular commodity, from origin to destination, on or after a stated effective date or within a defined time frame, and also any accessorial charges or allowances that increase or decrease the total transportation cost to the shipper.\n\n(aa)  Rate agreement  means an agreement between ocean common carriers that authorizes the discussion of or agreement on, either on a binding basis under a common tariff or on a non-binding basis, any kind of rate or charge.\n\n(bb)  Sailing agreement  means an agreement between ocean common carriers to provide service by establishing a schedule of ports that each carrier will serve, the frequency of each carrier's calls at those ports, and/or the size and capacity of the vessels to be deployed by the parties. The term does not include joint service agreements, or capacity rationalization agreements.\n\n(cc)  Service contract  means a written contract, other than a bill of lading or a receipt, between one or more shippers and an individual ocean common carrier or an agreement between or among ocean common carriers in which the shipper or shippers makes a commitment to provide a certain volume or portion of cargo over a fixed time period, and the ocean common carrier or the agreement commits to a certain rate or rate schedule and a defined service level, such as assured space, transit time, port rotation, or similar service features. The contract may also specify provisions in the event of nonperformance on the part of any party.\n\n(dd)  Shipper  means:\n\n(1) A cargo owner;\n\n(2) The person for whose account the ocean transportation is provided;\n\n(3) The person to whom delivery is to be made;\n\n(4) A shippers' association; or\n\n(5) A non-vessel-operating common carrier ( i.e. , a common carrier that does not operate the vessels by which the ocean transportation is provided and is a shipper in its relationship with an ocean common carrier) that accepts responsibility for payment of all charges applicable under the tariff or service contract.\n\n(ee)  Shippers' association  means a group of shippers that consolidates or distributes freight on a nonprofit basis for the members of the group in order to secure carload, truckload, or other volume rates or service contracts.\n\n(ff)  Shippers' requests and complaints  means a communication from a shipper to a conference requesting a change in tariff rates, rules, regulations, or service; protesting or objecting to existing rates, rules, regulations or service; objecting to rate increases or other tariff changes; protesting allegedly erroneous service contract or tariff implementation or application, and/or requesting to enter into a service contract. Routine information requests are not included in the term.\n\n(gg)  Space charter agreement  means an agreement between ocean common carriers whereby a carrier (or carriers) agrees to provide vessel space for use by another carrier (or carriers) in exchange for compensation or services. The arrangement may include arrangements for equipment interchange and receipt/delivery of cargo, but may not include capacity rationalization as defined in this subpart.\n\n(hh)  Sub-trade  means the scope of ocean liner cargo carried between each U.S. port range and each foreign country within the scope of the agreement. U.S. port ranges are defined as follows:\n\n(1) Atlantic and Gulf shall encompass ports along the eastern seaboard and the Gulf of Mexico from the northern boundary of Maine to Brownsville, Texas. It also includes all ports bordering on the Great Lakes and their connecting waterways, all ports in the State of New York on the St. Lawrence River, and all ports in Puerto Rico and the U.S. Virgin Islands; and\n\n(2) Pacific shall encompass all ports in the States of Alaska, Hawaii, California, Oregon, and Washington. It also includes all ports in Guam, American Samoa, Northern Marianas, Johnston Island, Midway Island, and Wake Island.\n\n(ii)  Through transportation  means continuous transportation between origin and destination for which a through rate is assessed and which is offered or performed by one or more carriers, at least one of which is an ocean common carrier, between a United States point or port and a foreign point or port.\n\n(jj)  Transshipment agreement  means an agreement between an ocean common carrier serving a port or point of origin and another such carrier serving a port or point of destination, whereby cargo is transferred from one carrier to another carrier at an intermediate port served by direct vessel call of both such carriers in the conduct of through transportation and the publishing carrier performs the transportation on one leg of the through transportation on its own vessel or on a vessel on which it has rights to space under a filed and effective agreement. Such an agreement does not provide for the concerted discussion, publication or otherwise fixing of rates for the account of the cargo interests, conditions of service or other tariff matters other than the tariff description of the transshipment service offered, the port of transshipment and the participation of the nonpublishing carrier. An agreement that involves the movement of cargo in a domestic offshore trade as part of a through movement of cargo via transshipment involving the foreign commerce of the United States shall be considered to be in the foreign commerce of the United States and, therefore, subject to the Act and this part.\n\n(kk)  Vessel-operating costs  means any of the following expenses incurred by an ocean common carrier: salaries and wages of officers and unlicensed crew, including relief crews and others regularly employed aboard the vessel; fringe benefits; expenses associated with consumable stores, supplies and equipment; vessel fuel and incidental costs; vessel maintenance and repair expense; hull and machinery insurance costs; protection and indemnity insurance costs; costs for other marine risk insurance not properly chargeable to hull and machinery insurance or to protection and indemnity insurance accounts; and charter hire expenses."], ["46:46:9.0.1.2.16.10.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "J", "Subpart J\u2014Paperwork Reduction", "", "\u00a7 535.991 OMB control numbers assigned pursuant to the Paperwork Reduction Act.", "FMC", "", "", "", "This section displays the control number assigned to information collection requirements of the Commission in this part by the Office of Management and Budget pursuant to the Paperwork Reduction Act of 1995, Pub. L. 104-13. The Commission intends that this section comply with the requirements of section 3507(a)(3) of the Paperwork Reduction Act, which requires that agencies display a current control number assigned by the Director of the Office of Management and Budget (OMB) for each agency information collection requirement in the following table:"], ["46:46:9.0.1.2.16.2.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "B", "Subpart B\u2014Scope", "", "\u00a7 535.201 Subject agreements.", "FMC", "", "", "", "(a)  Ocean common carrier agreements.  This part applies to agreements by or among ocean common carriers to:\n\n(1) Discuss, fix, or regulate transportation rates, including through rates, cargo space accommodations, and other conditions of service;\n\n(2) Pool or apportion traffic, revenues, earnings, or losses;\n\n(3) Allot ports or restrict or otherwise regulate the number and character of sailings between ports;\n\n(4) Limit or regulate the volume or character of cargo or passenger traffic to be carried;\n\n(5) Engage in exclusive, preferential, or cooperative working arrangements among themselves or with one or more marine terminal operators;\n\n(6) Control, regulate, or prevent competition in international ocean transportation; or\n\n(7) Discuss and agree on any matter related to service contracts.\n\n(b)  Marine terminal operator agreements.  This part applies to agreements among marine terminal operators and among one or more marine terminal operators and one or more ocean carriers to:\n\n(1) Discuss, fix, or regulate rates or other conditions of service; or\n\n(2) Engage in exclusive, preferential, or cooperative working arrangements, to the extent that such agreements involve ocean transportation in the foreign commerce of the United States."], ["46:46:9.0.1.2.16.2.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "B", "Subpart B\u2014Scope", "", "\u00a7 535.202 Non-subject agreements.", "FMC", "", "", "", "This part does not apply to the following agreements:\n\n(a) Any acquisition by any person, directly or indirectly, of any voting security or assets of any other person;\n\n(b) Any maritime labor agreement;\n\n(c) Any agreement related to transportation to be performed within or between foreign countries;\n\n(d) Any agreement among common carriers to establish, operate, or maintain a marine terminal in the United States; and\n\n(e) Any agreement among marine terminal operators that exclusively and solely involves transportation in the interstate commerce of the United States."], ["46:46:9.0.1.2.16.3.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.301 Exemption procedures.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50727, Oct. 1, 2009; 90 FR 26223, June 20, 2025]", "(a)  Authority.  The Commission, upon application or its own motion, may by order or rule exempt for the future any class of agreement involving ocean common carriers and/or marine terminal operators from any requirement of the Act if it finds that the exemption will not result in substantial reduction in competition or be detrimental to commerce.\n\n(b)  Optional filing.  Notwithstanding any exemption from filing, or other requirements of the Act and this part, any party to an exempt agreement may file such an agreement with the Commission.\n\n(c)  Application for exemption.  Applications for exemptions shall conform to the general filing requirements for exemptions set forth at \u00a7 502.67 of this title.\n\n(d)  Retention of agreement by parties.  Any agreement that has been exempted by the Commission pursuant to section 16 of the Act (46 U.S.C. 40103) shall be retained by the parties and shall be available upon request by the Office of the General Counsel for inspection during the term of the agreement and for a period of three years after its termination."], ["46:46:9.0.1.2.16.3.1.10", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.311 Low market share agreements\u2014exemption.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 70 FR 20303, Apr. 19, 2005; 90 FR 26223, June 20, 2025]", "(a) Low market share agreement means any agreement among ocean common carriers which contains none of the authorities listed in \u00a7 535.502(b) and for which the combined market share, based on cargo volume, of the parties in any of the agreement's sub-trades is either:\n\n(1) Less than 30 percent, if all parties are members of another agreement in the same trade or sub-trade containing any of the authorities listed in \u00a7 535.502(b); or\n\n(2) Less than 35 percent, if at least one party is not a member of another agreement in the same trade or sub-trade containing any of the authorities listed in \u00a7 535.502(b).\n\n(b) Low market share agreements are exempt from the waiting period requirement of the Act and this part, and are effective on filing.\n\n(c) Parties to agreements may seek a determination from the General Counsel, as to whether a proposed agreement meets the general definition of a low market share agreement.\n\n(d) The filing fee for low market share agreements is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.11", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.312 Vessel charter party-exemption.", "FMC", "", "", "", "(a) For purposes of this section, vessel charter party shall mean a contractual agreement between two ocean common carriers for the charter of the full reach of a vessel, which agreement sets forth the entire terms and conditions (including duration, charter hire, and geographical or operational limitations, if any) under which the vessel will be employed.\n\n(b) Vessel charter parties, as defined in paragraph (a) of this section, are exempt from the filing requirements of the Act and this part.\n\n(c) The filing fee for optional filing of vessel charter parties is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.302 Exemptions for certain modifications of effective agreements.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50727, Oct. 1, 2009; 90 FR 26223, June 20, 2025]", "(a) Non-substantive modifications to effective agreements. A non-substantive modification to an effective agreement between ocean common carriers and/or marine terminal operators, acting individually or through approved agreements, is one which:\n\n(1) Reflects changes in the name of any geographic locality stated therein, the name of the agreement or the name of a party to the agreement, the names and/or numbers of any other section 4 agreement (46 U.S.C. 40301(a)-(c)) or designated provisions thereof referred to in an agreement;\n\n(2) Corrects typographical and grammatical errors in the text of the agreement or renumbers or reletters articles or sub-articles of agreements and references thereto in the text; or\n\n(3) Reflects changes in the titles of persons or committees designated therein or transfers the functions of such persons or committees to other designated persons or committees or which merely establishes a committee.\n\n(b) Other Miscellaneous Modifications to effective agreements. A miscellaneous modification to an effective agreement is one that:\n\n(1) Cancels the agreement or a portion thereof;\n\n(2) Deletes an agreement party;\n\n(3) Changes the parties to a conference agreement or a discussion agreement among passenger vessel operating common carriers that is open to all ocean common carriers operating passenger vessels of a class defined in the agreements and that does not contain ratemaking, pooling, joint service, sailing or space chartering authority; or\n\n(4) Changes the officials of the agreement and delegations of authority.\n\n(c) A copy of a modification described in (a) or (b) of this section shall be submitted to the Commission but is otherwise exempt from the waiting period requirement of the Act and this part.\n\n(d) Parties to agreements may seek a determination from the General Counsel as to whether a particular modification is a non-substantive or other miscellaneous modification within the meaning of this section.\n\n(e) The filing fee for non-substantive or other miscellaneous modifications is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.3", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.303 Husbanding agreements\u2014exemption.", "FMC", "", "", "", "(a) A husbanding agreement is an agreement between an ocean common carrier and another ocean common carrier or marine terminal operator, acting as the former's agent, under which the agent handles routine vessel operating activities in port, such as notifying port officials of vessel arrivals and departures; ordering pilots, tugs, and linehandlers; delivering mail; transmitting reports and requests from the Master to the owner/operator; dealing with passenger and crew matters; and providing similar services related to the above activities. The term does not include an agreement that provides for the solicitation or booking of cargoes, signing contracts or bills of lading and other related matters, nor does it include an agreement that prohibits the agent from entering into similar agreements with other carriers.\n\n(b) A husbanding agreement is exempt from the filing requirements of the Act and of this part.\n\n(c) The filing fee for optional filing of husbanding agreements is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.4", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.304 Agency agreements\u2014exemption.", "FMC", "", "", "", "(a) An agency agreement is an agreement between an ocean common carrier and another ocean common carrier or marine terminal operator, acting as the former's agent, under which the agent solicits and books cargoes and signs contracts of affreightment and bills of lading on behalf of the ocean common carrier. Such an agreement may or may not also include husbanding service functions and other functions incidental to the performance of duties by agents, including processing of claims, maintenance of a container equipment inventory control system, collection and remittance of freight and reporting functions.\n\n(b) An agency agreement as defined above is exempt from the filing requirements of the Act and of this part, except those:\n\n(1) Where a common carrier is to be the agent for a competing ocean common carrier in the same trade; or\n\n(2) That permit an agent to enter into similar agreements with more than one ocean common carrier in a trade.\n\n(c) The filing fee for optional filing of agency agreements is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.5", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.305 Equipment interchange agreements\u2014exemption.", "FMC", "", "", "", "(a) An equipment interchange agreement is an agreement between two or more ocean common carriers for:\n\n(1) The exchange of empty containers, chassis, empty LASH/SEABEE barges, and related equipment; and\n\n(2) The transportation of the equipment as required, payment therefor, management of the logistics of transferring, handling and positioning equipment, its use by the receiving carrier, its repair and maintenance, damages thereto, and liability incidental to the interchange of equipment.\n\n(b) An equipment interchange agreement is exempt from the filing requirements of the Act and of this part.\n\n(c) The filing fee for optional filing of equipment interchange agreements is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.6", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.306 Nonexclusive transshipment agreements\u2014exemption.", "FMC", "", "", "", "(a) A nonexclusive transshipment agreement is a transshipment agreement by which one ocean common carrier serving a port of origin by direct vessel call and another such carrier serving a port of destination by direct vessel call provide transportation between such ports via an intermediate port served by direct vessel call of both such carriers and at which cargo will be transferred from one to the other and which agreement does not:\n\n(1) Prohibit either carrier from entering into similar agreements with other carriers;\n\n(2) Guarantee any particular volume of traffic or available capacity; or\n\n(3) Provide for the discussion or fixing of rates for the account of the cargo interests, conditions of service or other tariff matters other than the tariff description of the service offered as being by means of transshipment, the port of transshipment and the participation of the nonpublishing carrier.\n\n(b) A nonexclusive transshipment agreement is exempt from the filing requirements of the Act and of this part, provided that the tariff provisions set forth in paragraph (c) of this section and the content requirements of paragraph (d) of this section are met.\n\n(c) The applicable tariff or tariffs shall provide:\n\n(1) The through rate;\n\n(2) The routings (origin, transshipment and destination ports); additional charges, if any ( i.e.  port arbitrary and/or additional transshipment charges); and participating carriers; and\n\n(3) A tariff provision substantially as follows:\n\nThe rules, regulations, and rates in this tariff apply to all transshipment arrangements between the publishing carrier or carriers and the participating, connecting or feeder carrier. Every participating connecting or feeder carrier which is a party to transshipment arrangements has agreed to observe the rules, regulations, rates, and routings established herein as evidenced by a connecting carrier agreement between the parties.\n\n(d) Nonexclusive transshipment agreements must contain the entire arrangement between the parties, must contain a declaration of the nonexclusive character of the arrangement and may provide for:\n\n(1) The identification of the parties and the specification of their respective roles in the arrangement;\n\n(2) A specification of the governed cargo;\n\n(3) The specification of responsibility for the issuance of bills of lading (and the assumption of common carriage-associated liabilities) to the cargo interests;\n\n(4) The specification of the origin, transshipment and destination ports;\n\n(5) The specification of the governing tariff(s) and provision for their succession;\n\n(6) The specification of the particulars of the nonpublishing carrier's concurrence/participation in the tariff of the publishing carrier;\n\n(7) The division of revenues earned as a consequence of the described carriage;\n\n(8) The division of expenses incurred as a consequence of the described carriage;\n\n(9) Termination and/or duration of the agreement;\n\n(10) Intercarrier indemnification or provision for intercarrier liabilities consequential to the contemplated carriage and such documentation as may be necessary to evidence the involved obligations;\n\n(11) The care, handling and liabilities for the interchange of such carrier equipment as may be consequential to the involved carriage;\n\n(12) Such rationalization of services as may be necessary to ensure the cost effective performance of the contemplated carriage; and\n\n(13) Such agency relationships as may be necessary to provide for the pickup and/or delivery of the cargo.\n\n(e) No subject other than as listed in paragraph (d) of this section may be included in exempted nonexclusive transshipment agreements.\n\n(f) The filing fee for optional filing of nonexclusive transshipment agreements is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.7", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.307 Agreements between or among wholly-owned subsidiaries and/or their parent\u2014exemption.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009]", "(a) An agreement between or among wholly-owned subsidiaries and/or their parent means an agreement under section 4 of the Act (46 U.S.C. 40301(a)-(c)) between or among an ocean common carrier or marine terminal operator subject to the Act and any one or more ocean common carriers or marine terminal operators which are ultimately owned 100 percent by that ocean common carrier or marine terminal operator, or an agreement between or among such wholly-owned carriers or terminal operators.\n\n(b) All agreements between or among wholly-owned subsidiaries and/or their parent are exempt from the filing requirements of the Act and this part.\n\n(c) Ocean common carriers are exempt from section 10(c) of the Act (46 U.S.C. 41105) to the extent that the concerted activities proscribed by that section result solely from agreements between or among wholly-owned subsidiaries and/or their parent.\n\n(d) The filing fee for optional filing of these agreements is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.8", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.309 Marine terminal services agreements\u2014exemption.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 65036, Dec. 9, 2009]", "(a)  Marine terminal services agreement  means an agreement, contract, understanding, arrangement, or association, written or oral, (including any modification or appendix) between a marine terminal operator and an ocean common carrier that applies to marine terminal services that are provided to and paid for by an ocean common carrier. These services include: checking, dockage, free time, handling, heavy lift, loading and unloading, terminal storage, usage, wharfage, and wharf demurrage and including any marine terminal facilities that may be provided incidentally to such marine terminal services. The term  marine terminal services agreement  does not include any agreement that conveys to the involved carrier any rights to operate any marine terminal facility by means of a lease, license, permit, assignment, land rental, or similar other arrangement for the use of marine terminal facilities or property.\n\n(b) All marine terminal services agreements as defined in \u00a7 535.309(a) are exempt from the filing and waiting period requirements of the Act and this part on condition that:\n\n(1) They do not include rates, charges, rules, and regulations that are determined through a marine terminal conference agreement.  Marine terminal conference agreement  means an agreement between or among two or more marine terminal operators and/or ocean common carriers for the conduct or facilitation of marine terminal operations that provides for the fixing of and adherence to uniform maritime terminal rates, charges, practices and conditions of service relating to the receipt, handling, and/or delivery of passengers or cargo for all members; and\n\n(2) No antitrust immunity is conferred under the Act with regard to terminal services provided to an ocean common carrier under a marine terminal services agreement that is not filed with the Commission.\n\n(c) The filing fee for optional filing of terminal services agreements is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.3.1.9", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "C", "Subpart C\u2014Exemptions", "", "\u00a7 535.310 Marine terminal facilities agreement\u2014exemption.", "FMC", "", "", "", "(a)  Marine terminal facilities agreement  means any agreement between or among two or more marine terminal operators, or between one or more marine terminal operators and one or more ocean common carriers, to the extent that the agreement involves ocean transportation in the foreign commerce of the United States, that conveys to any of the involved parties any rights to operate any marine terminal facility by means of lease, license, permit, assignment, land rental, or other similar arrangement for the use of marine terminal facilities or property.\n\n(b) All marine terminal facilities agreements as defined in \u00a7 535.310(a) are exempt from the filing and waiting period requirements of the Act and this part.\n\n(c) Parties to marine terminal facilities agreements currently in effect shall provide copies to any requesting party for a reasonable copying and mailing fee.\n\n(d) The filing fee for optional filing of terminal facilities agreements is provided in \u00a7 535.401(g)."], ["46:46:9.0.1.2.16.4.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "D", "Subpart D\u2014Filing of Agreements", "", "\u00a7 535.401 General requirements.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 70 FR 10330, Mar. 3, 2005; 74 FR 50728, Oct. 1, 2009; 75 FR 29455, May 26, 2010; 81 FR 24705, Apr. 27, 2016; 81 FR 59145, Aug. 29, 2016; 83 FR 50295, Oct. 5, 2018; 85 FR 72578, Nov. 13, 2020; 88 FR 16898, Mar. 21, 2023]", "(a) All agreements (including oral agreements reduced to writing in accordance with the Act) subject to this part and filed with the Commission for review and disposition pursuant to section 6 of the Act (46 U.S.C. 40304, 40306, 41307(b)-(d)), must be submitted to the Commission either in paper during regular business hours to the Secretary, Federal Maritime Commission, Washington, DC 20573, or electronically using the automated agreement filing system.\n\n(1)  Paper filings.  Paper filings must include:\n\n(i) A true copy and seven additional copies of the executed agreement;\n\n(ii) Where required by this part, an original and five copies of the completed Information Form referenced at subpart E of this part; and\n\n(iii) A letter of transmittal as described in paragraph (b) of this section.\n\n(2)  Electronic filings.  (i) Electronic filings using the automated agreement filing system must be made in accordance with the instructions found on the Commission's home page,  http://www.fmc.gov.\n\n(ii) Electronic filings must include searchable Portable Document Format (PDF) copies of the following:\n\n(A) A true copy of the executed agreement;\n\n(B) Where required by this part, a completed Information Form referenced at subpart E of this part; and\n\n(C) A letter of transmittal as described in paragraph (b) of this section.\n\n(b) The letter of transmittal shall:\n\n(1) Identify all of the documents being transmitted including, in the instance of a modification to an effective agreement, the full name of the effective agreement, the Commission-assigned agreement number of the effective agreement and the revision, page and/or appendix number of the modification being filed;\n\n(2) Provide a concise, succinct summary of the filed agreement or modification separate and apart from any narrative intended to provide support for the acceptability of the agreement or modification;\n\n(3) Clearly provide the typewritten or otherwise imprinted name, position, business address, and telephone number of the filing party; and\n\n(4) Be signed by the filing party or on the filing party's behalf by an authorized employee or agent of the filing party. A faxed, photocopied, or scanned signature will be accepted.\n\n(c) To facilitate the timely and accurate publication of the  Federal Register  Notice, the letter of transmittal shall also provide a current list of the agreement's participants where such information is not provided elsewhere in the transmitted documents.\n\n(d) Any agreement that does not meet the filing requirements of this section, including any applicable Information Form requirements, shall be rejected in accordance with \u00a7 535.601(b).\n\n(e) Assessment agreements shall be filed and shall be effective upon filing.\n\n(f) Parties to agreements with expiration dates shall file any modification seeking renewal for a specific term or elimination of a termination date in sufficient time to accommodate the 45-day waiting period required under the Act.\n\n(g) The filing fee is $3,980 for new agreements and $4,637 for any agreement modifications requiring Commission review and action; $1,174 for agreements processed under delegated authority (for types of agreements that can be processed under delegated authority, see \u00a7 501.27(e) of this chapter); $343 for carrier exempt agreements; and $96 for terminal exempt agreements.\n\n(h) The fee for a request for expedited review of an agreement pursuant to \u00a7 535.605 is $151. This fee must be paid in addition to the carrier agreement filing fee required by paragraph (g) of this section."], ["46:46:9.0.1.2.16.4.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "D", "Subpart D\u2014Filing of Agreements", "", "\u00a7 535.402 Complete and definite agreements.", "FMC", "", "", "", "An agreement filed under the Act must be clear and definite in its terms, must embody the complete, present understanding of the parties, and must set forth the specific authorities and conditions under which the parties to the agreement will conduct their operations and regulate the relationships among the agreement members, unless those details are matters specifically enumerated as exempt from the filing requirements of this part."], ["46:46:9.0.1.2.16.4.1.3", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "D", "Subpart D\u2014Filing of Agreements", "", "\u00a7 535.403 Form of agreements.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 81 FR 24706, Apr. 27, 2016]", "The requirements of this section apply to all agreements except marine terminal agreements and assessment agreements.\n\n(a) Agreements shall be clearly and legibly written. Agreements in a language other than English shall be accompanied by an English translation.\n\n(b) Every agreement shall include a Title Page indicating:\n\n(1) The full name of the agreement;\n\n(2) Once assigned, the Commission-assigned agreement number;\n\n(3) If applicable, the expiration date of the agreement; and\n\n(4) The original effective date of the agreement whenever the Title Page is revised.\n\n(c) Each agreement page (including modifications and appendices) shall be identified by printing the agreement name (as shown on the agreement title page) and, once assigned, the applicable Commission-assigned agreement number at the top of each page. For agreement modifications, the appropriate amendment number for each modification should also appear on the page along with the basic agreement number.\n\n(d) Each agreement and/or modification filed must be signed by an official or authorized representative of each of the parties and must indicate the typewritten full name of the signing party and his or her position, including organizational affiliation. Faxed, photocopied, or scanned signatures will be accepted.\n\n(e) Every agreement shall include a Table of Contents indicating the location of all agreement provisions."], ["46:46:9.0.1.2.16.4.1.4", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "D", "Subpart D\u2014Filing of Agreements", "", "\u00a7 535.404 Agreement provisions.", "FMC", "", "", "", "Generally, each agreement should:\n\n(a) Indicate the full legal name of each party, including any FMC-assigned agreement number associated with that name, and the address of its principal office (not the address of any agent or representative not an employee of the participating party);\n\n(b) State the ports or port ranges to which the agreement applies as well as any inland points or areas to which it also applies; and\n\n(c) Specify, by organizational title, the administrative and executive officials determined by the agreement parties to be responsible for designated affairs of the agreement and the respective duties and authorities delegated to those officials. At a minimum, the agreement should specify:\n\n(1) The official(s) with authority to file the agreement and any modification thereto and to submit associated supporting materials; and\n\n(2) A statement as to any designated U.S. representative of the agreement required by this chapter."], ["46:46:9.0.1.2.16.4.1.5", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "D", "Subpart D\u2014Filing of Agreements", "", "\u00a7 535.405 Organization of conference agreements.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009]", "Each conference agreement shall:\n\n(a) State that, at the request of any member, the conference shall engage the services of an independent neutral body to fully police the obligations of the conference and its members. The agreement must include a description of any such neutral body authority and procedures related thereto.\n\n(b) State affirmatively that the conference parties shall not engage in conduct prohibited by sections 10(c)(1) or 10(c)(3) of the Act (46 U.S.C. 41105(1) or 41105(3)).\n\n(c) Specify the procedures for consultation with shippers and for handling shippers' requests and complaints.\n\n(d) Include provisions for independent action in accordance with \u00a7 535.801 of this part."], ["46:46:9.0.1.2.16.4.1.6", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "D", "Subpart D\u2014Filing of Agreements", "", "\u00a7 535.406 Modification of agreements.", "FMC", "", "", "", "The requirements of this section apply to all agreements except marine terminal agreements and assessment agreements.\n\n(a) Agreement modifications shall be filed in accordance with the provisions of \u00a7\u00a7 535.401, 535.402, and 535.403.\n\n(b) Agreement modifications shall be made by reprinting the entire page on which the matter being changed is published (\u201crevised page\u201d). The revised page shall indicate the consecutive denomination of the revision ( e.g. , \u201c1st Revised Page 7\u201d). Additional material may be published on a new original page. New original pages inserted between existing effective pages shall be numbered with an alpha suffix ( e.g. , a page inserted between page 7 and page 8 shall be numbered 7a).\n\n(c) Each revised page shall be accompanied by a duplicate page, submitted for illustrative purposes only, indicating the language being modified in the following manner:\n\n(1) Language being deleted or superseded shall be struck through; and,\n\n(2) New and initial or replacement language shall immediately follow the language being superseded and be underlined.\n\n(d) If a modification requires the relocation of the provisions of the agreement, such modification shall be accompanied by a revised Table of Contents page that shall indicate the new location of the provisions."], ["46:46:9.0.1.2.16.4.1.7", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "D", "Subpart D\u2014Filing of Agreements", "", "\u00a7 535.407 Application for waiver.", "FMC", "", "", "", "(a) Upon a showing of good cause, the Commission may waive the requirements of \u00a7\u00a7 535.401, 535.403, 535.404, 535.405, and 535.406.\n\n(b) Requests for such a waiver shall be submitted in advance of the filing of the agreement to which the requested waiver would apply and shall state:\n\n(1) The specific provisions from which relief is sought;\n\n(2) The special circumstances requiring the requested relief; and\n\n(3) Why granting the requested waiver will not substantially impair effective review of the agreement."], ["46:46:9.0.1.2.16.4.1.8", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "D", "Subpart D\u2014Filing of Agreements", "", "\u00a7 535.408 Activities that may be conducted without further filings.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009]", "(a) Agreements that arise from authority of an effective agreement but whose terms are not fully set forth in the effective agreement to the extent required by \u00a7 535.402 are permitted without further filing only if they:\n\n(1) Are themselves exempt from the filing requirements of this part (pursuant to subpart C\u2014Exemptions of this part); or\n\n(2) Are listed in paragraph (b) of this section.\n\n(b) Unless otherwise exempt in subpart C of this part, only the following technical or operational matters of an agreement's affairs established pursuant to express enabling authority in an agreement are considered part of the effective agreement and do not require further filing under section 5 of the Act (46 U.S.C. 40301(d)-(e), 40302-40303, 40305):\n\n(1) Establishment of tariff rates, rules and regulations and their joint publication;\n\n(2) The terms and conditions of space allocation and slot sales, the procedures for allocating space, the establishment of space charter rates, and the terms and conditions of charter parties;\n\n(3) Stevedoring, terminal, and related services including the operation of tonnage centers or other joint container marshaling facilities;\n\n(4) The following administrative matters:\n\n(i) Scheduling of agreement meetings;\n\n(ii) Collection, collation and circulation of data and reports from or to members;\n\n(iii) Procurement, maintenance, or sharing of office facilities, furnishings, equipment and supplies, the allocation and assessment of costs thereof, or the provisions for the administration and management of such agreements by duly appointed individuals;\n\n(iv) Procedures for anticipating parties' space requirements;\n\n(v) Maintenance of books and records; and\n\n(vi) Details as to the following matters as between parties to the agreement: insurance, procedures for resolutions of disputes relating to loss and/or damage of cargo, and force majeure clauses;\n\n(5) The following operational matters:\n\n(i) Port rotations and schedule adjustments; and\n\n(ii) Changes in vessel size, number of vessels, or vessel substitution or replacement, if the resulting change is within a capacity range specified in the agreement; and\n\n(6) Neutral body policing (limited to the description of neutral body authority and procedures related thereto)."], ["46:46:9.0.1.2.16.5.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "E", "Subpart E\u2014Information Form Requirements", "", "\u00a7 535.501 General requirements.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 81 FR 24706, Apr. 27, 2016; 90 FR 26223, June 20, 2025]", "(a) Agreements and modifications to agreements identified in \u00a7 535.502 shall be accompanied by an Information Form containing information and data on the agreement and the parties' authority under the agreement.\n\n(b) Parties to an agreement subject to this subpart shall complete and submit an original and five copies of the Information Form at the time the agreement is filed. A copy of the Form in  Microsoft Word  and  Excel  format may be downloaded from the Commission's home page at  http://www.fmc.gov,  or a paper copy of the Form may be obtained from the Commission. In lieu of submitting paper copies, parties may complete and submit their Information Form in the Commission's prescribed electronic format, either on diskette or CD-ROM, or submit the Information Form using the automated agreement filing system in accordance with the instructions found on the Commission's home page,  http://www.fmc.gov.\n\n(c) A complete response in accordance with the instructions on the Information Form shall be supplied to each item. If a party to the agreement is unable to supply a complete response, that party shall provide either estimated data (with an explanation of why precise data are not available) or a detailed statement of reasons for noncompliance and the efforts made to obtain the required information.\n\n(d) Agreement parties may supplement the Information Form with any additional information or material to assist the Commission's review of an agreement.\n\n(e) The Information Form and any additional information submitted in conjunction with the filing of an agreement shall not be disclosed by the Commission except as provided in \u00a7 535.608."], ["46:46:9.0.1.2.16.5.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "E", "Subpart E\u2014Information Form Requirements", "", "\u00a7 535.502 Agreements subject to the Information Form requirements.", "FMC", "", "", "", "Agreements and modifications to agreements between or among ocean common carriers subject to this subpart are:\n\n(a) All agreements identified in \u00a7 535.201(a), except for low market share agreements identified in \u00a7 535.311;\n\n(b) Modifications to an agreement that add any of the following authorities:\n\n(1) The discussion of, or agreement upon, whether on a binding basis under a common tariff or a non-binding basis, any kind of rate or charge;\n\n(2) The discussion of, or agreement on, capacity rationalization;\n\n(3) The establishment of a joint service;\n\n(4) The pooling or division of cargo traffic, earnings, or revenues and/or losses; or\n\n(5) The discussion of, or agreement on, any service contract matter; and\n\n(c) Modifications that expand the geographic scope of an agreement containing any authority identified in \u00a7 535.502(b)."], ["46:46:9.0.1.2.16.5.1.3", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "E", "Subpart E\u2014Information Form Requirements", "", "\u00a7 535.503 Information Form.", "FMC", "", "", "", "(a) The Information Form, with instructions, for agreements and modifications to agreements subject to this subpart, are set forth in sections I through V of appendix A of this part. The instructions should be read in conjunction with the Act and this part.\n\n(b) The Information Form shall apply as follows:\n\n(1) Sections I and V shall be completed by parties to all agreements identified in \u00a7 535.502;\n\n(2) Section II shall be completed by parties to agreements identified in \u00a7 535.502(a) that contain any of the following authorities: the charter or use of vessel space in exchange for compensation or services; or the rationalization of sailings or services relating to a schedule of ports, the frequency of vessel calls at ports, or the size and capacity of vessels for deployment. Such authorities do not include the establishment of a joint service, nor capacity rationalization;\n\n(3) Section III shall be completed by parties to agreements identified in \u00a7 535.502 that contain the authority to discuss or agree on capacity rationalization; and\n\n(4) Section IV shall be completed by parties to agreements identified in \u00a7 535.502 that contain any of the following authorities:\n\n(i) The discussion of, or agreement upon, whether on a binding basis under a common tariff or a non-binding basis, any kind of rate or charge;\n\n(ii) The establishment of a joint service;\n\n(iii) The pooling or division of cargo traffic, earnings, or revenues and/or losses; or\n\n(iv) The discussion of, or agreement on, any service contract matter."], ["46:46:9.0.1.2.16.5.1.4", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "E", "Subpart E\u2014Information Form Requirements", "", "\u00a7 535.504 Application for waiver.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 90 FR 26223, June 20, 2025]", "(a) Upon a showing of good cause, the Commission may waive any part of the Information Form requirements in this subpart.\n\n(b) A request for such a waiver must be submitted and approved by the Commission in advance of the filing of the Information Form to which the requested waiver would apply. Requests for a waiver shall be submitted in writing to the General Counsel, Federal Maritime Commission, Washington, DC 20573-0001, and shall state:\n\n(1) The specific requirements from which relief is sought;\n\n(2) The special circumstances requiring the requested relief;\n\n(3) Relevant trade and industry data and information to substantiate and support the special circumstances requiring the requested relief;\n\n(4) Why granting the requested waiver will not substantially impair effective review of the agreement; and\n\n(5) A description of the full membership, geographic scope, and authority of the agreement or the agreement modification that is to be filed with the Commission.\n\n(c) The Commission may take into account the presence or absence of shipper complaints as well as the past compliance of the agreement parties with any reporting requirement under this part in considering an application for a waiver."], ["46:46:9.0.1.2.16.6.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.601 Preliminary review-rejection of agreements.", "FMC", "", "", "", "(a) The Commission shall make a preliminary review of each filed agreement to determine whether the agreement is in compliance with the requirements of the Act and this part and, where applicable, whether the accompanying Information Form is complete or, where not complete, whether the deficiency is adequately explained or is excused by a waiver granted by the Commission under \u00a7 535.504.\n\n(b)(1) The Commission shall reject any agreement that fails to comply substantially with the filing and Information Form of the Act and this part. The Commission shall notify the filing party in writing of the reason for rejection of the agreement. The original filing, along with any supplemental information or documents submitted, shall be returned to the filing party.\n\n(2) Should a rejected agreement be refiled, the full 45-day waiting period will apply to the refiled agreement."], ["46:46:9.0.1.2.16.6.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.602 Federal Register notice.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 85 FR 9684, Feb. 20, 2020]", "(a) A notice of any filed agreement will be transmitted to the  Federal Register  within seven days of the date of filing.\n\n(b) The notice will include:\n\n(1) A short title for the agreement;\n\n(2) The identity of the parties to the agreement and the filing party;\n\n(3) The Federal Maritime Commission agreement number;\n\n(4) A concise summary of the agreement's contents;\n\n(5) A statement that the agreement is available for inspection at the Commission's offices; and\n\n(6) A request for comments, including relevant information and documents, regarding the agreement and the date by which comments should be submitted in order to be most useful to the Commission's review of the agreement."], ["46:46:9.0.1.2.16.6.1.3", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.603 Comment.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 85 FR 9684, Feb. 20, 2020]", "(a) Persons may file with the Secretary written comments, including relevant information and documents, regarding a filed agreement. Commenters may submit the comment by email to  secretary@fmc.gov  or deliver to Secretary, Federal Maritime Commission, 800 N Capitol St. NW, Washington, DC 20573-0001. The Commission will treat such comments as confidential in accordance with \u00a7 535.608.\n\n(b) The filing of a comment does not entitle a person to:\n\n(1) A reply to the comment by the Commission;\n\n(2) The institution of any Commission or court proceeding;\n\n(3) Discussion of the comment in any Commission or court proceeding concerning the filed agreement; or\n\n(4) Participation in any proceeding that may be instituted."], ["46:46:9.0.1.2.16.6.1.4", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.604 Waiting period.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009; 74 FR 65036, Dec. 9, 2009]", "(a) The waiting period before an agreement becomes effective shall commence on the date that an agreement is filed with the Commission.\n\n(b) Unless suspended by a request for additional information or extended by court order, the waiting period terminates and an agreement becomes effective on the later of the 45th day after the filing of the agreement with the Commission or on the 30th day after publication of notice of the filing in the  Federal Register.\n\n(c) The waiting period is suspended on the date when the Commission, either orally or in writing, requests additional information or documentary materials pursuant to section 6(d) of the Act (46 U.S.C. 40304(d)). A new 45-day waiting period begins on the date of receipt of all the additional material requested or of a statement of the reasons for noncompliance, and the agreement becomes effective in 45 days unless the waiting period is further extended by court order or the Commission grants expedited review."], ["46:46:9.0.1.2.16.6.1.5", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.605 Requests for expedited review.", "FMC", "", "", "", "(a) Upon written request of the filing party, the Commission may shorten the waiting period. In support of a request, the filing party should provide a full explanation, with reference to specific facts and circumstances, of the necessity for a shortened waiting period. In reviewing requests, the Commission will consider the parties' needs and the Commission's ability to complete its review of the agreement's potential impact. In no event, however, may the period be shortened to less than fourteen (14) days after the publication of the notice of the filing of the agreement in the  Federal Register.  When a request for expedited review is denied, the normal 45-day waiting period will apply. Requests for expedited review will not be granted routinely and will be granted only on a showing of good cause. Good cause would include, but is not limited to, the impending expiration of the agreement; an operational urgency; Federal or State imposed time limitations; or other reasons that, in the Commission's discretion, constitute grounds for granting the request.\n\n(b) A request for expedited review will be considered for an agreement whose 45-day waiting period has begun anew after being stopped by a request for additional information."], ["46:46:9.0.1.2.16.6.1.6", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.606 Requests for additional information.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009; 90 FR 26223, June 20, 2025]", "(a) The Commission may request from the filing party any additional information and documents necessary to complete the statutory review required by the Act. The request shall be made prior to the expiration of the 45-day waiting period. All responses to a request for additional information shall be submitted to the Office of the General Counsel, Federal Maritime Commission, Washington, DC 20573.\n\n(b) Where the Commission has made a request for additional information, the agreement's effective date will be 45 days after receipt of the complete response to the request for additional information. If all questions are not fully answered or requested documents are not supplied, the parties must include a statement of reasons why questions were not fully answered or documents supplied. In the event all material is not submitted, the agreement's effective date will be 45 days after receipt of both the documents and information which are submitted, if any, and the statement indicating the reasons for noncompliance. The Commission may, upon notice to the Attorney General, and pursuant to sections 6(i) and 6(k) of the Act (46 U.S.C. 41307(c) and 41307(d)), request the United States District Court for the District of Columbia to further extend the agreement's effective date until there has been substantial compliance.\n\n(c) A request for additional information may be made orally or in writing. In the case of an oral request, a written confirmation of the request shall be mailed to the filing party within seven days of the oral request.\n\n(d) The Commission will publish a notice in the  Federal Register  that it has requested additional information and serve that notice on any commenting parties. The notice will indicate only that a request was made and will not specify what information is being sought. Interested parties will have fifteen (15) days after publication of the notice to file further comments on the agreement."], ["46:46:9.0.1.2.16.6.1.7", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.607 Failure to comply with requests for additional information.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009]", "(a) A failure to comply with a request for additional information results when a person filing an agreement, or an officer, director, partner, agent, or employee thereof fails to substantially respond to the request or does not file a satisfactory statement of reasons for noncompliance. An adequate response is one which directly addresses the Commission's request. When a response is not received by the Commission within a specified time, failure to comply will have occurred.\n\n(b) The Commission may, pursuant to section 6(i) of the Act (46 U.S.C. 41307(c)), request relief from the United States District Court for the District of Columbia when it considers that there has been a failure to substantially comply with a request for additional information. The Commission may request that the court:\n\n(1) Order compliance with the request;\n\n(2) Extend the review period until there has been substantial compliance; or\n\n(3) Grant other equitable relief that under the circumstances seems necessary or appropriate.\n\n(c) Where there has been a failure to substantially comply, section 6(i)(2) of the Act (46 U.S.C. 41307(c)(2)) provides that the court shall extend the review period until there has been substantial compliance."], ["46:46:9.0.1.2.16.6.1.8", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.608 Confidentiality of submitted material.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009; 85 FR 9684, Feb. 20, 2020]", "(a) Except for an agreement filed under 46 U.S.C. ch. 403, all information and documents submitted to the Commission by the filing party(ies) or third parties regarding an agreement will be exempt from disclosure under 5 U.S.C. 552. Included in this disclosure exemption is information provided in the Information Form, voluntary submission of additional information, reasons for noncompliance, replies to requests for additional information, and third-party comments.\n\n(b) Information that is confidential pursuant to paragraph (a) of this section may be disclosed, however, to the extent:\n\n(1) It is relevant to an administrative or judicial action or proceeding; or\n\n(2) It is disclosed to either body of Congress or to a duly authorized committee or subcommittee of Congress.\n\n(c) Parties may voluntarily disclose or make information publicly available. If parties elect to disclose information they shall promptly inform the Commission."], ["46:46:9.0.1.2.16.6.1.9", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "F", "Subpart F\u2014Action on Agreements", "", "\u00a7 535.609 Negotiations.", "FMC", "", "", "", "At any time after the filing of an agreement and prior to the conclusion of judicial injunctive proceedings, the filing party or an authorized representative may submit additional factual or legal support for an agreement or may propose modifications of an agreement. Such negotiations between Commission personnel and filing parties may continue during the pendency of injunctive proceedings. Shippers, other government departments or agencies, and other third parties may not participate in these negotiations."], ["46:46:9.0.1.2.16.7.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "G", "Subpart G\u2014Reporting Requirements", "", "\u00a7 535.701 General requirements.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 90 FR 26223, June 20, 2025]", "(a) Parties to agreements identified in \u00a7 535.702(a) shall submit quarterly Monitoring Reports on an ongoing basis for as long as the agreement remains in effect, containing information and data on the agreement and the parties' authority under the agreement.\n\n(b) Parties to agreements identified in \u00a7 535.704 are required to submit minutes of their meetings for as long as their agreements remain in effect.\n\n(c) If a joint service is a party to an agreement that is subject to the requirements of this subpart, the joint service shall be treated as one member of that agreement for purposes of that agreement's Monitoring Reports.\n\n(d) Monitoring Reports and minutes required to be filed by this subpart should be submitted to: General Counsel, Federal Maritime Commission, Washington, DC 20573-0001. A copy of the Monitoring Report form in Microsoft Word and Excel format may be downloaded from the Commission's home page at  http://www.fmc.gov , or a paper copy may be obtained from theCommission. In lieu of submitting paper copies, parties may complete and submit their Monitoring Reports in the Commission's prescribed electronic format, either on diskette or CD-ROM.\n\n(e)(1) The regulations in this paragraph (e) are stayed until further notice.\n\n(2) Reports and minutes required to be filed by this subpart may be filed by direct electronic transmission in lieu of hard copy. Detailed information on electronic transmission is available from the Commission's Bureau of Trade Analysis. Certification and signature requirements of this subpart can be met on electronic transmissions through use of a pre-assigned Personal Identification Number (PIN) obtained from the Commission. PINs can be obtained by submission by an official of the filing party of a statement to the Commission agreeing that inclusion of the PIN in the transmission constitutes the signature of the official. Only one PIN will be issued for each agreement. Where a filing party has more than one official authorized to file minutes or reports, each additional official must submit such a statement countersigned by the principal official of the filing party. Each filing official will be issued a unique password. A PIN or designation of authorized filing officials may be canceled or changed at any time upon the written request of the principal official of the filing party. Direct electronic transmission filings may be made at any time except between the hours of 8:30 a.m. and 2 p.m. Eastern time on Commission business days.\n\n(f)  Time for filing.  Except as otherwise instructed, Monitoring Reports shall be filed within 75 days of the end of each calendar quarter. Minutes of meetings shall be filed within 21 days after the meeting. Other documents shall be filed within 15 days of the receipt of a request for documents.\n\n(g) A complete response in accordance with the instructions on the Monitoring Report shall be supplied to each item. If a party to an agreement is unable to supply a complete response, that party shall provide either estimated data (with an explanation of why precise data are not available) or a detailed statement of reasons for noncompliance and the efforts made to obtain the required information.\n\n(h) A Monitoring Report for a particular agreement may be supplemented with any other relevant information or documentary material.\n\n(i)  Confidentiality.  (1) The Monitoring Reports, minutes, and any other additional information submitted by a particular agreement will be exempt from disclosure under 5 U.S.C. 552, except to the extent:\n\n(i) It is relevant to an administrative or judicial action or proceeding; or\n\n(ii) It is disclosed to either body of Congress or to a duly authorized committee or subcommittee of Congress.\n\n(2) Parties may voluntarily disclose or make Monitoring Reports, minutes or any other additional information publicly available. The Commission must be promptly informed of any such voluntary disclosure.\n\n(j) Monitoring Report or alternative periodic reporting requirements in this subpart shall not be construed to authorize the exchange or use by or among agreement members of information required to be submitted."], ["46:46:9.0.1.2.16.7.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "G", "Subpart G\u2014Reporting Requirements", "", "\u00a7 535.702 Agreements subject to Monitoring Report and alternative periodic reporting requirements.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 90 FR 26223, June 20, 2025]", "(a) Agreements subject to the Monitoring Report requirements of this subpart are:\n\n(1) An agreement that contains the authority to discuss or agree on capacity rationalization; or\n\n(2) Where the parties to an agreement hold a combined market share, based on cargo volume, of 35 percent or more in the entire U.S. inbound or outbound geographic scope of the agreement and the agreement contains any of the following authorities:\n\n(i) The discussion of, or agreement upon, whether on a binding basis under a common tariff or a non-binding basis, any kind of rate or charge;\n\n(ii) The establishment of a joint service;\n\n(iii) The pooling or division of cargo traffic, earnings, or revenues and/or losses; or\n\n(iv) The discussion of, or agreement on, any service contract matter.\n\n(b) The determination of an agreement's reporting obligation under \u00a7 535.702(a)(2) in the first instance shall be based on the market share data reported on the agreement's Information Form pursuant to \u00a7 535.503. Thereafter, at the beginning of each calendar year, the Office of the General Counsel will notify the agreement parties of any changes in its reporting requirements based on market share data reported on the agreement's quarterly Monitoring Report for the previous second quarter (April-June).\n\n(c) The Commission may require, as necessary, that the parties to an agreement with market share below the 35 percent threshold, as identified and defined in \u00a7 535.702(a)(2), submit Monitoring Reports pursuant to \u00a7 535.703.\n\n(d) In addition to or instead of the Monitoring Report in \u00a7 535.703, the Commission may prescribe, as necessary, alternative periodic reporting requirements for parties to any agreement identified in \u00a7 535.201."], ["46:46:9.0.1.2.16.7.1.3", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "G", "Subpart G\u2014Reporting Requirements", "", "\u00a7 535.703 Monitoring Report form.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 90 FR 26223, June 20, 2025]", "(a) For agreements subject to the Monitoring Report requirements in \u00a7 535.702(a), the Monitoring Report form, with instructions, is set forth in sections I through III of appendix B of this part. The instructions should be read in conjunction with the Act and this part.\n\n(b) The Monitoring Report shall apply as follows:\n\n(1) Section I shall be completed by parties to agreements identified in \u00a7 535.702(a)(1);\n\n(2) Section II shall be completed by parties to agreements identified in \u00a7 535.702(a)(2); and\n\n(3) Section III shall be completed by parties to all agreements identified in \u00a7 535.702(a).\n\n(c) In accordance with the requirements and instructions in appendix B of this part, parties to an agreement subject to part 2(C) of section I of the Monitoring Report shall submit a narrative statement on any significant reductions in vessel capacity that the parties will implement under the agreement. The term \u201ca significant reduction\u201d is defined in appendix B. The narrative statement shall be submitted to the Office of the General Counsel, no later than 15 days after a significant reduction in vessel capacity has been agreed upon by the parties but prior to the implementation of the actual reduction under the agreement.\n\n(d)(1) The Commission may require, in its discretion, that the information on the top agreement commodities in part 4 of section II of the Monitoring Report be reported on a sub-trade basis, as defined in appendix B of this part, rather than on an agreement-wide basis. When commodity sub-trade information is required under this section, the Commission shall notify the parties to the agreement.\n\n(2) For purposes of \u00a7 535.703(d)(1), the top agreement commodities shall mean the top 10 liner commodities (including commodities not subject to tariff publication) carried by all the agreement parties in each sub-trade within the geographic scope of the agreement during the calendar quarter. Where the agreement covers both U.S. inbound and outbound liner movements, inbound and outbound sub-trades shall be stated separately. All other instructions, definitions, and terms shall apply as specified and required in appendix B of this part."], ["46:46:9.0.1.2.16.7.1.4", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "G", "Subpart G\u2014Reporting Requirements", "", "\u00a7 535.704 Filing of minutes.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 70 FR 20303, Apr. 19, 2005]", "(a)  Agreements required to file minutes.  (1) This section applies to agreements authorized to engage in any of the following activities: discussion or establishment of any type of rates or charges, whether in tariffs or service contracts; pooling or apportionment of cargo traffic; discussion of revenues, losses, or earnings; or discussion or agreement on service contract matters, including the establishment of voluntary service contract guidelines.\n\n(2) Each agreement to which this section applies shall file with the Commission, through a designated official, minutes of all meetings defined in paragraph (b) of this section, except as provided in paragraph (d) of this section.\n\n(b)  Meetings.  For purposes of this subpart, the term meeting shall include all discussions at which any agreement is reached among any number of the parties to an agreement relating to the business of the agreement, and all other discussions among three or more members of the agreement (or all members if fewer than three) relating to the business of the agreement. This includes, but is not limited to, meetings of the members' agents, principals, owners, officers, employees, representatives, committees, or subcommittees, and communications among members facilitated by agreement officials. Discussions conducted by telephone, electronic device, or other means are included.\n\n(c)  Content of minutes.  Minutes shall include the following:\n\n(1) The date, time, and place of the meeting;\n\n(2) A list of participants and companies represented;\n\n(3) A description of discussions detailed enough so that a non-participant reading the minutes could reasonably gain a clear understanding of the nature and extent of the discussions and, where applicable, any decisions reached. Such description need not disclose the identity of the parties that participated in the discussion or the votes taken; and\n\n(4) Any report, circular, notice, statistical compilation, analytical study, survey, or other work distributed, discussed, or exchanged at the meeting, whether presented by oral, written, electronic, or other means. Where the aforementioned materials are reasonably available to the public, a citation to the work or relevant part thereof is acceptable in lieu of the actual work. Any documents submitted to the Commission pursuant to this section need not disclose the identity of the party or parties that circulated the document at the meeting.\n\n(d)  Exemption.  For parties to agreements subject to this section, the following exemptions shall apply:\n\n(1) Minutes of meetings between parties are not required to reflect discussions of matters set forth in \u00a7 535.408(b)(2), (b)(3), (b)(4)(iii), (b)(4)(iv), (b)(4)(v), and (b)(4)(vi);\n\n(2) Minutes of meetings between parties are not required to reflect discussion of matters set forth in \u00a7 535.408(b)(5) to the extent that such discussions involve minor operational matters that have little or no impact on the frequency of vessel calls at ports or the amount of vessel capacity offered by the parties in the geographic scope of the agreement; and\n\n(3) Minutes of meetings between parties are not required to reflect discussions of or actions taken with regard to rates that, if adopted, would be required to be published in an appropriate tariff. This exemption does not apply to discussions concerning general rate policy, general rate changes, the opening or closing of rates, service contracts, or time/volume rates.\n\n(e)  Serial numbers.  Each set of minutes filed with the Commission shall include the agreement name and FMC number and a unique identification number indicating the sequence in which the meeting took place during the calendar year."], ["46:46:9.0.1.2.16.7.1.5", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "G", "Subpart G\u2014Reporting Requirements", "", "\u00a7 535.705 Application for waiver.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 90 FR 26223, June 20, 2025]", "(a) Upon a showing of good cause, the Commission may waive any requirement of this subpart.\n\n(b) A request for such a waiver must be submitted and approved by the Commission in advance of the filing of the Monitoring Report or minutes to which the requested waiver would apply. Requests for a waiver shall be submitted in writing to the General Counsel, Federal Maritime Commission, Washington, DC 20573-0001, and shall state and provide the following:\n\n(1) The specific requirements from which relief is sought;\n\n(2) The special circumstances requiring the requested relief;\n\n(3) Relevant trade and industry data and information to substantiate and support the special circumstances requiring the requested relief; and\n\n(4) Why granting the requested waiver will not substantially impair effective monitoring of the agreement.\n\n(c) The Commission may take into account the presence or absence of shipper complaints as well as the past compliance of the agreement parties with any reporting requirement under this part in considering an application for a waiver."], ["46:46:9.0.1.2.16.8.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "H", "Subpart H\u2014Mandatory and Prohibited Provisions", "", "\u00a7 535.801 Independent action.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009]", "(a) Each conference agreement shall specify the independent action (\u201cIA\u201d) procedures of the conference, which shall provide that any conference member may take independent action on any rate or service item upon not more than 5 calendar days' notice to the conference and shall otherwise be in conformance with section 5(b)(8) of the Act (46 U.S.C. 40303(b)(8)).\n\n(b)(1) Each conference agreement that provides for a period of notice for independent action shall establish a fixed or maximum period of notice to the conference. A conference agreement shall not require or permit a conference member to give more than 5 calendar days' notice to the conference, except that in the case of a new or increased rate the notice period shall conform to the tariff publication requirements of this chapter.\n\n(2) A conference agreement shall not prescribe notice periods for adopting, withdrawing, postponing, canceling, or taking other similar actions on independent actions.\n\n(c) Each conference agreement shall indicate the conference official, single designated representative, or conference office to which notice of independent action is to be provided. A conference agreement shall not require notice of independent action to be given by the proposing member to the other parties to the agreement.\n\n(d) A conference agreement shall not require a member who proposes independent action to attend a conference meeting, to submit any further information other than that necessary to accomplish the publication of the independent tariff item, or to comply with any other procedure for the purpose of explaining, justifying, or compromising the proposed independent action.\n\n(e) A conference agreement shall specify that any new rate or service item proposed by a member under independent action (except for exempt commodities not published in the conference tariff) shall be included by the conference in its tariff for use by that member effective no later than 5 calendar days after receipt of the notice and by any other member that notifies the conference that it elects to adopt the independent rate or service item on or after its effective date.\n\n(f)(1) As it pertains to this part, \u201cadopt\u201d means the assumption in identical form of an originating member's independent action rate or service item, or a particular portion of such a rate or service item. If a carrier adopts an IA at a lower rate than the conference rate when there is less than 30 days remaining on the original IA, the adopted IA should be made to expire 30 days after its effectiveness to comply with the statutory 30-day notice requirement. In the case of an independent action time/volume rate (\u201cIA TVR\u201d), the dates of the adopting IA may vary from the dates of the original IA, so long as the duration of the adopting IA is the same as that of the originating IA. Furthermore, no term other than \u201cadopt\u201d (e.g., \u201cfollow,\u201d \u201cmatch\u201d) can be used to describe the action of assuming as one's own an initiating carrier's IA. Additionally, if a party to an agreement chooses to take on an IA of another party, but alters it, such action is considered a new IA and must be published pursuant to the IA publication and notice provisions of the applicable agreement.\n\n(2) An IA TVR published by a member of a ratemaking agreement may be adopted by another member of the agreement, provided that the adopting member takes on the original IA TVR in its entirety without change to any aspect of the original rate offering (except beginning and ending dates in the time period) ( i.e. , a separate TVR with a separate volume of cargo but for the same duration). Any subsequent IA TVR offering that results in a change in any aspect of the original IA TVR, other than the name of the offering carrier or the beginning date of the adopting IA TVR, is a new independent action and shall be processed in accordance with the provisions of the applicable agreement. The adoption procedures discussed above do not authorize the participation by an adopting carrier in the cargo volume of the originating carrier's IA TVR. Member lines may publish and participate in joint IA TVRs, if permitted to do so under the terms of their agreement; however, no carrier may participate in an IA TVR already published by another carrier.\n\n(g) A conference agreement shall not require or permit individual member lines to be assessed on a per carrier usage basis the costs and/or administrative expenses incurred by the agreement in processing independent action filings.\n\n(h) A conference agreement may not permit the conference to unilaterally designate an expiration date for an independent action taken by a member line. The right to determine the duration of an IA remains with the member line, and a member line must be given the opportunity to designate whatever duration it chooses for its IA, regardless if the duration is for a specified period or open ended. Only in instances where a member line gives its consent to the conference, or where a member line freely elects not to provide for the duration of its IA after having been given the opportunity, can the conference designate an expiration date for the member line's IA.\n\n(i) Any new conference agreement or any modification to an existing conference agreement that does not comply with the requirements of this section shall be rejected pursuant to \u00a7 535.601 of this part.\n\n(j) If ratemaking is by sections within a conference, then any notice to the conference required by \u00a7 535.801 may be made to the particular ratemaking section."], ["46:46:9.0.1.2.16.8.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "H", "Subpart H\u2014Mandatory and Prohibited Provisions", "", "\u00a7 535.802 Service contracts.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009; 90 FR 26223, June 20, 2025]", "(a) Ocean common carrier agreements may not prohibit or restrict a member or members of the agreement from engaging in negotiations for service contracts with one or more shippers.\n\n(b) Ocean common carrier agreements may not require a member or members of the agreement to disclose a negotiation on a service contract, or the terms and conditions of a service contract, other than those terms or conditions required by section 8(c)(3) of the Act (46 U.S.C. 40502(d)).\n\n(c) Ocean common carrier agreements may not adopt mandatory rules or requirements affecting the right of an agreement member or agreement members to negotiate or enter into service contracts.\n\n(d) An agreement may provide authority to adopt voluntary guidelines relating to the terms and procedures of an agreement member's or agreement members' service contracts if the guidelines explicitly state the right of the members of the agreement not to follow these guidelines.\n\n(e) Voluntary guidelines shall be submitted to the Office of the General Counsel, Federal Maritime Commission, Washington, DC 20573-0001. Voluntary guidelines shall be kept confidential in accordance with \u00a7 535.608 of this part. Use of voluntary guidelines prior to their submission is prohibited."], ["46:46:9.0.1.2.16.8.1.3", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "H", "Subpart H\u2014Mandatory and Prohibited Provisions", "", "\u00a7 535.803 Ocean freight forwarder compensation.", "FMC", "", "", "", "No conference or group of two or more ocean common carriers may:\n\n(a) Deny to any member of such conference or group the right, upon notice of not more than 5 calendar days, to take independent action on any level of compensation paid to an ocean freight forwarder; or\n\n(b) Agree to limit the payment of compensation to an ocean freight forwarder to less than 1.25 percent of the aggregate of all rates and charges applicable under the tariff assessed against the cargo on which the forwarding services are provided."], ["46:46:9.0.1.2.16.9.1.1", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "I", "Subpart I\u2014Penalties", "", "\u00a7 535.901 Failure to file.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009]", "Any person operating under an agreement, involving activities subject to the Act pursuant to sections 4 and 5(a) of the Act (46 U.S.C. 40301(a)-(c) and 40302) and this part and not exempted pursuant to section 16 of the Act (46 U.S.C. 40103) or excluded from filing by the Act, that has not been filed and that has not become effective pursuant to the Act and this part is in violation of the Act and this part and is subject to the civil penalties set forth in section 13(a) of the Act (46 U.S.C. 41107)."], ["46:46:9.0.1.2.16.9.1.2", 46, "Shipping", "IV", "B", "535", "PART 535\u2014OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984", "I", "Subpart I\u2014Penalties", "", "\u00a7 535.902 Falsification of reports.", "FMC", "", "", "[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50730, Oct. 1, 2009]", "Knowing falsification of any report required by the Act or this part, including knowing falsification of any item in any applicable agreement information and/or reporting requirements pursuant to subparts E and G of this part, is a violation of the rules of this part and is subject to the civil penalties set forth in section 13(a) of the Act (46 U.S.C. 41107) and may be subject to the criminal penalties provided for in 18 U.S.C. 1001."], ["49:49:6.1.2.3.16.0.1.1", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.1 Scope.", "NHTSA", "", "", "[89 FR 18819, Mar. 15, 2024]", "This part establishes fuel consumption standards pursuant to 49 U.S.C. 32902(k) for work trucks and commercial medium- and heavy-duty on-highway vehicles (hereafter referenced as heavy-duty vehicles), and engines manufactured for sale in the United States. This part establishes a credit program that manufacturers may use to comply with standards and requirements for manufacturers to provide reports to the National Highway Traffic Safety Administration regarding their efforts to reduce the fuel consumption of heavy-duty vehicles and engines."], ["49:49:6.1.2.3.16.0.1.10", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.10 How do manufacturers comply with fuel consumption standards?", "NHTSA", "", "", "[81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18831, Mar. 15, 2024]", "(a)  Pre-certification process.  (1) Regulated manufacturers determine eligibility to use exemptions or exclusions in accordance with \u00a7 535.3.\n\n(2) Manufacturers may seek preliminary approvals as specified in 40 CFR 1036.210 and 40 CFR 1037.210 from EPA and NHTSA, if needed. Manufacturers may request to schedule pre-certification meetings with EPA and NHTSA prior to submitting approval requests for certificates of conformity to address any joint compliance issues and gain informal feedback from the agencies.\n\n(3) [Reserved]\n\n(4) In circumstances in which EPA provides multiple compliance approaches manufacturers must choose the same compliance path to comply with NHTSA's fuel consumption standards that they choose to comply with EPA's greenhouse gas emission standards.\n\n(5) Manufacturers may not introduce new vehicles into commerce without a certificate of conformity from EPA. Manufacturers must attest to several compliance standards in order to obtain a certificate of conformity. This includes stating comparable fuel consumption results for all required CO 2  emissions rates. Manufacturers not completing these steps do not comply with the NHTSA fuel consumption standards.\n\n(6) Manufacturers apply the fuel consumption standards specified in \u00a7 535.5 to vehicles, engines and components that represent production units and components for vehicle and engine families, subfamilies and configurations consistent with the EPA specifications in 40 CFR 86.1819, 1036.230, and 1037.230. Vehicles required to meet the fuel consumption standards of this part must also comply with the following additional requirements, consistent with CFR 1037.115(a) and (d):\n\n(i)  Adjustable parameters.  Vehicles that have adjustable parameters must meet all the requirements of this part for any adjustment in the practically adjustable range. We may require that you set adjustable parameters to any specification within the practically adjustable range during any testing. See 40 CFR 1068.50 for general provisions related to adjustable parameters. You must ensure safe vehicle operation throughout the practically adjustable range of each adjustable parameter, including consideration of production tolerances. Note that adjustable roof fairings and trailer rear fairings are deemed not to be adjustable parameters.\n\n(ii)  Defeat devices.  Consistent with 40 CFR 1068.101, the use of defeat devices is prohibited.\n\n(7) Only certain vehicles and engines are allowed to comply differently between the NHTSA and EPA programs as detailed in this section. These vehicles and engines must be identified by manufacturers in the ABT and production reports required in \u00a7 535.8.\n\n(b)  Model year compliance.  Manufacturers are required to conduct testing to demonstrate compliance with CO 2  exhaust emissions standards in accordance with EPA's provisions in 40 CFR part 600, subpart B, 40 CFR 1036, subpart F, 40 CFR part 1037, subpart R, and 40 CFR part 1066. Manufacturers determine equivalent fuel consumption performance values for CO 2  results as specified in \u00a7 535.6 and demonstrate compliance by comparing equivalent results to the applicable fuel consumption standards in \u00a7 535.5.\n\n(c)  End-of-the-year process.  Manufacturers comply with fuel consumption standards after the end of each model year, if\u2014\n\n(1) For heavy-duty pickup trucks and vans, the manufacturer's fleet average performance, as determined in \u00a7 535.6, is less than the fleet average standard; or\n\n(2) For truck tractors, vocational vehicles, and engines the manufacturer's fuel consumption performance for each vehicle or engine family (or subfamily), as determined in \u00a7 535.6, is lower than the applicable regulatory subcategory standards in \u00a7 535.5.\n\n(3) [Reserved]\n\n(4) NHTSA will use the EPA final verified values as specified in 40 CFR 86.1819, 40 CFR 1036.755, and 1037.755 for making final determinations on whether vehicles and engines comply with fuel consumption standards.\n\n(5) A manufacturer fails to comply with fuel consumption standards if its final reports are not provided in accordance with \u00a7 535.8 and 40 CFR 86.1865, 1036.730, and 1037.730. Manufacturers not providing complete or accurate final reports or any plans by the required deadlines do not comply with fuel consumption standards. A manufacturer that is unable to provide any emissions results along with comparable fuel consumption values must obtain permission for EPA to exclude the results prior to the deadline for submitting final reports.\n\n(6) A manufacturer that would otherwise fail to directly comply with fuel consumption standards as described in paragraphs (c)(1) through (3) of this section may use one or more of the credit flexibilities provided under the NHTSA averaging, banking and trading program, as specified in \u00a7 535.7, but must offset all credit deficits in its averaging sets to achieve compliance.\n\n(7) A manufacturer failing to comply with the provisions specified in this part may be liable to pay civil penalties in accordance with \u00a7 535.9.\n\n(8) A manufacturer may also be liable to pay civil penalties if found by EPA or NHTSA to have provided false information as identified through NHTSA or EPA enforcement audits or new vehicle verification testing as specified in \u00a7 535.9 and 40 CFR parts 86, 1036, and 1037."], ["49:49:6.1.2.3.16.0.1.2", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.2 Purpose.", "NHTSA", "", "", "", "The purpose of this part is to reduce the fuel consumption of new heavy-duty vehicles and engines by establishing maximum levels for fuel consumption standards while providing a flexible credit program to assist manufacturers in complying with standards."], ["49:49:6.1.2.3.16.0.1.3", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.3 Applicability.", "NHTSA", "", "", "[81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18819, Mar. 15, 2024]", "(a) This part applies to manufacturers that produce complete and incomplete heavy-duty vehicles as defined in 49 CFR part 523, and to the manufacturers of all heavy-duty engines manufactured for use in the applicable vehicles for each given model year.\n\n(b) This part also applies to alterers, final stage manufacturers, and intermediate manufacturers producing vehicles and engines or assembling motor vehicles or motor vehicle equipment under special conditions. Manufacturers comply with this part by following the special conditions in 40 CFR 1037.620, 1037.621, and 1037.622 in which EPA allows manufacturer to:\n\n(1) Share responsibility for the vehicles they produce. Manufacturers sharing responsibility for complying with emissions and fuel consumption standards must submit to the agencies a joint agreement as specified in 49 CFR 534.8(a);\n\n(2) Have certificate holders sell or ship vehicles that are missing certain emission-related components to be installed by secondary vehicle manufacturers;\n\n(3) Ship partially complete vehicles to secondary manufacturers;\n\n(4) Build electric vehicles; and\n\n(5) Build alternative fueled vehicles from all types of heavy duty engine conversions. The conversion manufacturer must:\n\n(i) Install alternative fuel conversion systems into vehicles acquired from vehicle manufacturers prior to first retail sale or prior to the vehicle's introduction into interstate commerce.\n\n(ii) Be designated by the vehicle manufacturer and EPA to be the certificate holder.\n\n(iii) Omit alternative fueled vehicles from compliance with vehicle fuel consumption standards, if\u2014\n\n(A) Excluded from EPA emissions standards; and\n\n(B) A reasonable technical basis exist that the modified vehicle continues to meet emissions and fuel consumption vehicle standards.\n\n(c) Vehicle and engine manufacturers that must comply with this part include manufacturers required to have approved certificates of conformity from EPA as specified in subparts C in 40 CFR parts 1036 and 1037.\n\n(d) The following heavy-duty vehicles and engines are excluded from the requirements of this part:\n\n(1) Vehicles and engines manufactured prior to January 1, 2014, unless certified early under NHTSA's voluntary provisions in \u00a7 535.5.\n\n(2) Medium-duty passenger vehicles and other vehicles subject to the light-duty corporate average fuel economy standards in 49 CFR parts 531 and 533.\n\n(3) Recreational vehicles, including motor homes manufactured before January 1, 2021, except those produced by manufacturers voluntarily complying with NHTSA's early vocational standards for model years 2013 through 2020.\n\n(4) Aircraft vehicles meeting the definition of \u201cmotor vehicle\u201d. For example, this would include certain convertible aircraft that can be adjusted to operate on public roads.\n\n(5) [Reserved]\n\n(6) Engines installed in heavy-duty vehicles that are not used to propel vehicles. Note, this includes engines used to indirectly propel vehicles (such as electrical generator engines that power to batteries for propulsion).\n\n(7) The provisions of this part do not apply to engines that are not internal combustion engines. For example, the provisions of this part do not apply to fuel cells. Note that gas turbine engines are internal combustion engines.\n\n(e) The following heavy-duty vehicles and engines are exempted from the requirements of this part:\n\n(1)  Off-road vehicles.  Vocational vehicles intended for off-road use are exempt with or without request, subject to the provisions of \u00a7 535.5(b)(9).\n\n(2)  Small business manufacturers.  (i) For Phase 1, small business manufacturers are exempted from the vehicle and engine standards of \u00a7 535.5 but must comply with the reporting requirements of \u00a7 535.8(g).\n\n(ii) For Phase 2, fuel consumption standards apply on a delayed schedule for manufacturers meeting the small business criteria specified in 13 CFR 121.201 and in 40 CFR 86.1819-14(k)(5), 1036.150, and 1037.150.\n\n(A) Qualifying manufacturers of truck tractors, vocational vehicles, heavy duty pickups and vans, and engines are not subject to the fuel consumption standards for vehicles built before January 1, 2022, and engines (such as those engines built by small alternative fuel engine converters) with a date of manufacturer on or after November 14, 2011, and before January 1, 2022. Qualifying manufacturers may choose to voluntarily comply early.\n\n(B) Small manufacturers that certify their entire U.S.-directed production volume to the Phase 1 standards for calendar year 2021 may certify to the Phase 1 standards for model year 2022 (instead of the otherwise applicable Phase 2 standards).\n\n(iii) Small business manufacturers producing vehicles and engines that run on any fuel other than gasoline, E85, or diesel fuel meeting the criteria specified in 13 CFR 121.201 and in 40 CFR 86.1819-14(k)(5), 1036.150, and 1037.150 may delay complying with every new mandatory standard under this part by one model year.\n\n(3) [Reserved]\n\n(4)  Engines for specialty vehicles.  Engines certified to the alternative standards specified in 40 CFR 86.007-11 and 86.008-10 for use in specialty vehicles as described in 40 CFR 1037.605. Compliance with the vehicle provisions in 40 CFR 1037.605 satisfies compliance for NHTSA under this part.\n\n(f) For model year 2021 and later, vocational vehicle manufacturers building custom chassis vehicles ( e.g.  emergency vehicles) may be exempted from standards in \u00a7 535.5(b)(4) and may comply with alternative fuel consumption standards as specified in \u00a7 535.5(b)(6). Manufacturers complying with alternative fuel consumption standards in \u00a7 535.5(b)(6) are restricted in using fuel consumption credits as specified in \u00a7 535.7(c).\n\n(g) The fuel consumption standards in some cases apply differently for spark-ignition and compression-ignition engines or vehicles as specified in 40 CFR parts 1036 and 1037. Engine requirements are similarly differentiated by engine type and by primary intended service class, as described in 40 CFR 1036.140.\n\n(h) NHTSA may exclude or exempt vehicles and engines under special conditions allowed by EPA in accordance with 40 CFR parts 85, 86, 1036, 1037, 1039, and 1068. Manufacturers should consult the agencies if uncertain how to apply any EPA provision under the NHTSA fuel consumption program. It is recommend that manufacturers seek clarification before producing a vehicle. Upon notification by EPA of a fraudulent use of an exemption, NHTSA reserves that right to suspend or revoke any exemption or exclusion.\n\n(i) In cases where there are differences between the application of this part and the corresponding EPA program regarding whether a vehicle is regulated or not (such as due to differences in applicability resulting from differing agency definitions, etc.), manufacturers should contact the agencies to identify these vehicles and assess the applicability of the agencies' standards. The agencies will provide guidance on how the vehicles can comply. Manufacturers are required to identify these vehicles in their final reports submitted in accordance with \u00a7 535.8."], ["49:49:6.1.2.3.16.0.1.4", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.4 Definitions.", "NHTSA", "", "", "[89 FR 18819, Mar. 15, 2024, as amended at 89 FR 52950, June 24, 2024]", "The terms  manufacture ,  manufacturer ,  commercial medium-duty on highway vehicle ,  commercial heavy-duty on highway vehicle ,  fuel , and  work truck  are used as defined in 49 U.S.C. 32901. See 49 CFR 523.2 for general definitions related to NHTSA's fuel efficiency programs.\n\nAdjustable parameter  means any device, system, or element of design that someone can adjust (including those which are difficult to access) and that, if adjusted, may affect measured or modeled emissions (as applicable). In some cases, this may exclude a parameter that is difficult to access if it cannot be adjusted to affect emissions without significantly degrading engine performance, or if it will not be adjusted in a way that affects emissions during in-use operation. (See 40 CFR 1065.1001 and 40 CFR 1068.50).\n\nAdministrator  means the Administrator of the National Highway Traffic Safety Administration (NHTSA) or the Administrator's delegate.\n\nAdvanced technology  means specific vehicle technology for which manufacturers may earn special credits under \u00a7\u00a7 535.6 and 535.7 ( e.g.,  hybrids with powertrain designs that include energy storage systems, vehicles with waste heat recovery, electric vehicles, and fuel cell vehicles).\n\nAlterer  means a manufacturer that modifies an altered vehicle as defined in 49 CFR 567.3\n\nAlternative fuel conversion  has the meaning given for clean alternative fuel conversion in 40 CFR 85.502\n\nA to B testing  has the meaning given in 40 CFR 1037.801.\n\nAutomated manual transmission  has the meaning given in 40 CFR 1037.801.\n\nAutomatic tire inflation system  has the meaning given in 40 CFR 1037.801.\n\nAutomatic transmission (AT)  has the meaning given in 40 CFR 1037.801.\n\nAuxiliary power unit  has the meaning given in 40 CFR 1037.801.\n\nAveraging set  means, a set of engines or vehicles in which fuel consumption credits may be exchanged. Credits generated by one engine or vehicle family may only be used by other respective engine or vehicle families in the same averaging set as specified in \u00a7 535.7. Note that an averaging set may comprise more than one regulatory subcategory. The averaging sets for this HD program are defined as follows:\n\n(1) Heavy-duty pickup trucks and vans.\n\n(2) Light heavy-duty (LHD) vehicles.\n\n(3) Medium heavy-duty (MHD) vehicles.\n\n(4) Heavy heavy-duty (HHD) vehicles.\n\n(5) Light heavy-duty engines subject to compression-ignition standards.\n\n(6) Medium heavy-duty engines subject to compression-ignition standards.\n\n(7) Heavy heavy-duty engines subject to compression-ignition standards.\n\n(8) Engines subject to spark-ignition standards.\n\n(9) Vehicle types certifying to optional custom chassis standards as specified in \u00a7 535.5(b)(6) form separate averaging sets for each vehicle type as specified in \u00a7 535.7(c).\n\nAxle ratio or Drive axle ratio, ka  has the meaning given in 40 CFR 1037.801.\n\nBasic vehicle frontal area  has the meaning given in 40 CFR 1037.801.\n\nCab-complete vehicle  has the meaning given in 49 CFR 523.2.\n\nCarryover  has the meaning given in 40 CFR 1037.801.\n\nCertificate holder  means the manufacturer who holds the certificate of conformity for the vehicle or engine and that assigns the model year based on the date when its manufacturing operations are completed relative to its annual model year period.\n\nCertificate of Conformity  means an approval document granted by EPA to a manufacturer that submits an application for a vehicle or engine emissions family in 40 CFR 1036.205 and 1037.205. A certificate of conformity is valid from the indicated effective date until December 31 of the model year for which it is issued. The certificate must be renewed annually for any vehicle a manufacturer continues to produce.\n\nCertification  has the meaning given in 40 CFR 1037.801.\n\nChassis-cab  means the incomplete part of a vehicle that includes a frame, a completed occupant compartment and that requires only the addition of cargo-carrying, work-performing, or load- bearing components to perform its intended functions.\n\nChief Counsel  means the NHTSA Chief Counsel, or his or her designee.\n\nClass  means relating to GVWR classes for vehicles, as follows:\n\n(1)  Class 2b vehicles  are vehicles with a gross vehicle weight rating (GVWR) ranging from 8,501 to 10,000 pounds.\n\n(2)  Class 3 through Class 8 vehicles  are vehicles with a gross vehicle weight rating (GVWR) of 10,001 pounds or more as defined in 49 CFR 565.15.\n\nComplete sister vehicle  is a complete vehicle of the same configuration as a cab-complete vehicle.\n\nComplete vehicle  has the meaning given in 49 CFR part 523.\n\nCompression-ignition (CI)  means relating to a type of reciprocating, internal-combustion engine, such as a diesel engine, that is not a spark-ignition engine. Note, in accordance with 40 CFR 1036.1, gas turbine engines and other engines not meeting the definition of compression-ignition are deemed to be compression-ignition engines for complying with fuel consumption standards.\n\nConfiguration  means a subclassification within a test group for passenger cars, light trucks and medium-duty passenger vehicles and heavy-duty pickup trucks and vans which is based on basic engine, engine code, transmission type and gear ratios, and final drive ratio.\n\nContainer chassis trailer  has the same meaning as container chassis in 40 CFR 1037.801.\n\nCurb weight  has the meaning given in 40 CFR 86.1803.\n\nCustom chassis vehicle  means a vocational vehicle that is a motor home, school bus, refuse hauler, concrete mixer, emergency vehicle, mixed-use vehicle or other buses that are not school buses or motor coaches. These vehicle types are defined in 49 CFR 523.3. A \u201cmixed-use vehicle\u201d is one that meets at least one of the criteria specified in 40 CFR 1037.631(a)(1) or at least one of the criteria in 40 CFR 1037.631(a)(2), but not both.\n\nDate of manufacture  means the date on which the certifying vehicle manufacturer completes its manufacturing operations, except as follows:\n\n(1) Where the certificate holder is an engine manufacturer that does not manufacture the complete or incomplete vehicle, the date of manufacture of the vehicle is based on the date assembly of the vehicle is completed.\n\n(2) EPA and NHTSA may approve an alternate date of manufacture based on the date on which the certifying (or primary) vehicle manufacturer completes assembly at the place of main assembly, consistent with the provisions of 40 CFR 1037.601 and 49 CFR 567.4.\n\n(3) A vehicle manufacturer that completes assembly of a vehicle at two or more facilities may ask to use as the month and year of manufacture, for that vehicle, the month and year in which manufacturing is completed at the place of main assembly, consistent with provisions of 49 CFR 567.4, as the model year. Note that such staged assembly is subject to the provisions of 40 CFR 1068.260(c). NHTSA's allowance of this provision is effective when EPA approves the manufacturer's certificates of conformity for these vehicles.\n\nDay cab  has the meaning given in 40 CFR 1037.801.\n\nDefeat device  means, consistent with 40 CFR 86.004-2, an auxiliary emission control device (AECD) that reduces the effectiveness of the emission control system under conditions which may reasonably be expected to be encountered in normal vehicle operation and use, unless:\n\n(1) Such conditions are substantially included in the applicable Federal emission test procedure for heavy-duty vehicles and heavy-duty engines described in subpart N of this part;\n\n(2) The need for the AECD is justified in terms of protecting the vehicle against damage or accident;\n\n(3) The AECD does not go beyond the requirements of engine starting; or\n\n(4) The AECD applies only for engines that will be installed in emergency vehicles, and the need is justified in terms of preventing the engine from losing speed, torque, or power due abnormal conditions of the emission control system, or in terms of preventing such abnormal conditions from occurring, during operation related to emergency response. Examples of such abnormal conditions may include excessive exhaust backpressure from an overloaded particulate trap, and running out of diesel exhaust fluid for engines that rely on urea-based selective catalytic reduction.\n\nDrayage tractor  has the meaning given in 40 CFR 1037.801.\n\nDual-clutch transmission (DCT)  means a transmission has the meaning given in 40 CFR 1037.801.\n\nDual-fuel  has the meaning given in 40 CFR 1037.801.\n\nElectric vehicle  has the meaning given in 40 CFR 1037.801.\n\nEmergency vehicle  means a vehicle that meets one of the criteria in 40 CFR 1037.801.\n\nEngine configuration  means a unique combination of engine hardware and calibration (related to the emission standards) within an engine family, which would include hybrid components for engines certified as hybrid engines and hybrid powertrains. Engines within a single engine configuration differ only with respect to normal production variability or factors unrelated to compliance with emission standards. (See 40 CFR 1036.801).\n\nEngine family  has the meaning given in 40 CFR 1036.230. Manufacturers designate families in accordance with EPA provisions and may not choose different families between the NHTSA and EPA programs.\n\nEngine identification number  means a unique specification (for example, a model number/serial number combination) that allows someone to distinguish a particular engine from other similar engines. (See the definition of  identification number  in 40 CFR 1036.801).\n\nExcluded  means a vehicle or engine manufacturer or component is not required to comply with any aspects with the NHTSA fuel consumption program.\n\nExempted  means a vehicle or engine manufacturer or component is not required to comply with certain provisions of the NHTSA fuel consumption program.\n\nFamily certification level (FCL)  has the meaning given in 40 CFR 1036.801.\n\nFamily emission limit (FEL)  has the meaning given in 40 CFR 1037.801.\n\nFinal drive ratio  has the meaning given in 40 CFR 1037.801.\n\nFinal-stage manufacturer  has the meaning given in 49 CFR 567.3 and includes secondary vehicle manufacturers as defined in 40 CFR 1037.801.\n\nFlatbed trailer  has the meaning given in 40 CFR 1037.801.\n\nFleet  in this part means all the heavy-duty vehicles or engines within each of the regulatory sub- categories that are manufactured by a manufacturer in a particular model year and that are subject to fuel consumption standards under \u00a7 535.5.\n\nFleet average fuel consumption  is the calculated average fuel consumption performance value for a manufacturer's fleet derived from the production weighted fuel consumption values of the unique vehicle configurations within each vehicle model type that makes up that manufacturer's vehicle fleet in a given model year. In this part, the fleet average fuel consumption value is determined for each manufacturer's fleet of heavy-duty pickup trucks and vans.\n\nFleet average fuel consumption standard  is the actual average fuel consumption standard for a manufacturer's fleet derived from the production weighted fuel consumption standards of each unique vehicle configuration, based on payload, tow capacity and drive configuration (2, 4 or all-wheel drive), of the model types that makes up that manufacturer's vehicle fleet in a given model year. In this part, the fleet average fuel consumption standard is determined for each manufacturer's fleet of heavy-duty pickup trucks and vans.\n\nFlexible-fuel  means relating to an engine designed for operation on any mixture of two or more different types of fuels. (See 40 CFR 1036.801).\n\nFuel cell  means an electrochemical cell that produces electricity via the non-combustion reaction of a consumable fuel, typically hydrogen.\n\nFuel cell electric vehicle  means a motor vehicle propelled solely by an electric motor where energy for the motor is supplied by a fuel cell.\n\nFuel efficiency  means the amount of work performed for each gallon of fuel consumed.\n\nFuel type  means a general category of fuels such as diesel fuel, gasoline, or natural gas. There can be multiple grades within a single fuel type, such as premium gasoline, regular gasoline, or gasoline with 10 percent ethanol. (See 40 CFR 1037.801).\n\nGaseous fuel  has the meaning given in 40 CFR 1037.801.\n\nGear ratio  or  Transmission gear ratio,  kg, means the dimensionless number representing the angular speed of the transmission's input shaft divided by the angular speed of the transmission's output shaft when the transmission is operating in a specific gear. (See 40 CFR 1037.801).\n\nGood engineering judgment  has the meaning given in 40 CFR 1068.30. See 40 CFR 1068.5 for the administrative process used to evaluate good engineering judgment.\n\nGreenhouse gas Emissions Model (GEM)  has the meaning given in 40 CFR 1037.801.\n\nGross axle weight rating (GAWR)  has the meaning given in 49 CFR 571.3.\n\nGross combination weight rating (GCWR)  has the meaning given in 49 CFR 571.3.\n\nGross vehicle weight rating (GVWR)  has the meaning given in 49 CFR 571.3.\n\nHeavy-duty engine  has the meaning given in 49 CFR part 523.2.\n\nHeavy-duty off-road vehicle  means a heavy-duty vocational vehicle or vocational tractor that is intended for off-road use.\n\nHeavy-duty vehicle  has the meaning given in 49 CFR part 523.\n\nHeavy-haul tractor  has the meaning given in 40 CFR 1037.801.\n\nHeavy heavy-duty (HHD) vehicle  has the meaning given in vehicle service class.\n\nHybrid  or  Hybrid vehicle  means a vehicle that includes energy storage features (other than a conventional battery system or conventional flywheel) in addition to an internal combustion engine or other engine using consumable chemical fuel. Supplemental electrical batteries and hydraulic accumulators are examples of hybrid energy storage systems. Note that certain provisions in this part treat hybrid vehicles that include regenerative braking different than those that do not include regenerative braking.\n\nHybrid engine  means a hybrid system with features for storing and recovering energy that are integral to the engine or are otherwise upstream of the vehicle's transmission other than a conventional battery system or conventional flywheel. Supplemental electrical batteries and hydraulic accumulators are examples of hybrid energy storage systems. Examples of hybrids that could be considered hybrid engines are P0, P1, and P2 hybrids where hybrid features are connected to the front end of the engine, at the crankshaft, or connected between the clutch and the transmission where the clutch upstream of the hybrid feature is in addition to the transmission clutch(s), respectively. Note other examples of systems that qualify as hybrid engines are systems that recover kinetic energy and use it to power an electric heater in the aftertreatment. (See 40 CFR 1036.801).\n\nHybrid powertrain  means a powertrain that includes energy storage features other than a conventional battery system or conventional flywheel. Supplemental electrical batteries and hydraulic accumulators are examples of hybrid energy storage systems. Note other examples of systems that qualify as hybrid powertrains are systems that recover kinetic energy and use it to power an electric heater in the aftertreatment. (See 40 CFR 1037.801).\n\nIdle operation  has the meaning given in 40 CFR 1037.801.\n\nIncomplete vehicle  has the meaning given in 49 CFR part 523. For the purpose of this regulation, a manufacturer may request EPA and NHTSA to allow the certification of a vehicle as an incomplete vehicle if it manufactures the engine and sells the unassembled chassis components, provided it does not produce and sell the body components necessary to complete the vehicle.\n\nInnovative technology  means technology certified under \u00a7 535.7 and by EPA under 40 CFR 86.1819-14(d)(13), 1036.610, and 1037.610 in the Phase 1 program.\n\nIntermediate manufacturer  has the meaning given in 49 CFR 567.3.\n\nLight heavy-duty (LHD) vehicle  has the meaning given in vehicle service class.\n\nLiquefied petroleum gas (LPG)  has the meaning given in 40 CFR 1036.801.\n\nLow rolling resistance tire  means a tire on a vocational vehicle with a tire rolling resistance level (TRRL) of 7.7 kg/metric ton or lower, a steer tire on a tractor with a TRRL of 7.7 kg/metric ton or lower, or a drive tire on a tractor with a TRRL of 8.1 kg/metric ton or lower.\n\nManual transmission (MT)  has the meaning given in 40 CFR 1037.801.\n\nMedium heavy-duty (MHD) vehicle  has the meaning given in vehicle service class.\n\nModel type  has the meaning given in 40 CFR 600.002.\n\nModel year  means one of the following for compliance with this part. Note that manufacturers may have other model year designations for the same vehicle for compliance with other requirements or for other purposes:\n\n(1) For tractors and vocational vehicles with a date of manufacture on or after January 1, 2021, the vehicle's  model year  is the calendar year corresponding to the date of manufacture; however, the vehicle's model year may be designated to be the year before the calendar year corresponding to the date of manufacture if the engine's model year is also from an earlier year. Note that paragraph (2) of this definition limits the extent to which vehicle manufacturers may install engines built in earlier calendar years. Note that 40 CFR 1037.601(a)(2) limits the extent to which vehicle manufacturers may install engines built in earlier calendar years.\n\n(2) For Phase 1 tractors and vocational vehicles with a date of manufacture before January 1, 2021,  model year  means the manufacturer's annual new model production period, except as restricted under this definition. It must include January 1 of the calendar year for which the model year is named, may not begin before January 2 of the previous calendar year, and it must end by December 31 of the named calendar year. The model year may be set to match the calendar year corresponding to the date of manufacture.\n\n(i) The manufacturer who holds the certificate of conformity for the vehicle must assign the model year based on the date when its manufacturing operations are completed relative to its annual model year period. In unusual circumstances where completion of your assembly is delayed, we may allow you to assign a model year one year earlier, provided it does not affect which regulatory requirements will apply.\n\n(ii) Unless a vehicle is being shipped to a secondary manufacturer that will hold the certificate of conformity, the model year must be assigned prior to introduction of the vehicle into U.S. commerce. The certifying manufacturer must re-designate the model year if it does not complete its manufacturing operations within the originally identified model year. A vehicle introduced into U.S. commerce without a model year is deemed to have a model year equal to the calendar year of its introduction into U.S. commerce unless the certifying manufacturer assigns a later date.\n\n(3) For engines,  model year  means the manufacturer's annual new model production period, except as restricted under this definition. It must include January 1 of the calendar year for which the model year is named, may not begin before January 2 of the previous calendar year, and it must end by December 31 of the named calendar year. Manufacturers may not adjust model years to circumvent or delay compliance with emission standards or to avoid the obligation to certify annually.\n\nMotor Vehicle  has the meaning given in 49 CFR 523.2.\n\nMulti-purpose  means relating to the Multi-Purpose duty cycle as specified in 40 CFR 1037.510. (See 40 CFR 1037.801).\n\nNatural gas  has the meaning given in 40 CFR 1036.801. Vehicles that use a pilot-ignited natural gas engine (which uses a small diesel fuel ignition system), are still considered natural gas vehicles.\n\nNHTSA Enforcement  means the NHTSA Associate Administrator for Enforcement, or his or her designee.\n\nNeutral coasting  has the meaning given in 40 CFR 1037.801.\n\nNeutral idle  means a vehicle technology that automatically puts the transmission in neutral when the vehicle is stopped, as described in 40 CFR 1037.660(a). (See 40 CFR 1037.801).\n\nOff-cycle technology  means technology certified under \u00a7 535.7 and by EPA under 40 CFR 86.1819-14(d)(13), 1036.610, and 1037.610 in the Phase 2 program.\n\nParty  means the person alleged to have committed a violation of \u00a7 535.9, and includes manufacturers of vehicles and manufacturers of engines.\n\nPayload  means in this part the resultant of subtracting the curb weight from the gross vehicle weight rating.\n\nPercent (%)  means a representation of exactly 0.01. Numbers expressed as percentages in this part (such as a tolerance of \u00b12%) have infinite precision, so 2% and 2.000000000% have the same meaning. This means that where we specify some percentage of a total value, the calculated value has the same number of significant digits as the total value. For example, 2% of a span value where the span value is 101.3302 is 2.026604. (See 40 CFR 1037.801 and 40 CFR 1065.1001.\n\nPetroleum  has the meaning given in 40 CFR 1037.801.\n\nPhase 1  means the joint NHTSA and EPA program established in 2011 for fuel efficiency standards and greenhouse gas emissions standards regulating medium- and heavy-duty engines and vehicles. See \u00a7 535.5 for the specific model years that standards apply to vehicles and engines.\n\nPhase 2  means the joint NHTSA and EPA program established in 2016 for fuel efficiency standards and greenhouse gas emissions standards regulating medium- and heavy-duty vehicles and engines. See \u00a7 535.5 for the specific model years that standards apply to vehicles and engines.\n\nPickup truck  has the meaning given in 49 CFR part 523.\n\nPlaced into service  means put into initial use for its intended purpose, excluding incidental use by the manufacturer or a dealer. (See 40 CFR 1037.801).\n\nPlug-in hybrid electric vehicle (PHEV)  means a hybrid electric vehicle that has the capability to charge the battery or batteries used for vehicle propulsion from an off-vehicle electric source, such that the off-vehicle source cannot be connected to the vehicle while the vehicle is in motion.\n\nPower take-off (PTO)  means a secondary engine shaft or other system on a vehicle that provides substantial auxiliary power for purposes unrelated to vehicle propulsion or normal vehicle accessories such as air conditioning, power steering, and basic electrical accessories. A typical PTO uses a secondary shaft on the engine to transmit power to a hydraulic pump that powers auxiliary equipment such as a boom on a bucket truck.\n\nPowertrain family  has the meaning given in 40 CFR 1037.231. Manufacturers choosing to perform powertrain testing as specified in 40 CFR 1037.550, divide product lines into powertrain families that are expected to have similar fuel consumptions and CO 2  emission characteristics throughout the useful life.\n\nPreliminary approval  means approval granted by an authorized EPA representative prior to submission of an application for certification, consistent with the provisions of 40 CFR 1037.210. For requirements involving NHTSA, EPA will ensure decisions are jointly made and will convey the decision to the manufacturer.\n\nPrimary intended service class  has the same meaning for engines as specified in 40 CFR 1036.140. Manufacturers must identify a single primary intended service class for each engine family that best describes vehicles for which it designs and markets the engine, as follows:\n\n(1) Divide compression-ignition engines into primary intended service classes based on the following engine and vehicle characteristics:\n\n(i) Light heavy-duty \u201cLHD\u201d engines usually are not designed for rebuild and do not have cylinder liners. Vehicle body types in this group might include any heavy-duty vehicle built from a light-duty truck chassis, van trucks, multi-stop vans, and some straight trucks with a single rear axle. Typical applications will include personal transportation, light-load commercial delivery, passenger service, agriculture, and construction. The GVWR of these vehicles is normally below 19,500 pounds.\n\n(ii) Medium heavy-duty \u201cMHD\u201d engines may be designed for rebuild and may have cylinder liners. Vehicle body types in this group will typically include school buses, straight trucks with single rear axles, city tractors, and a variety of special purpose vehicles such as small dump trucks, and refuse trucks. Typical applications will include commercial short haul and intra-city delivery and pickup. Engines in this group are normally used in vehicles whose GVWR ranges from 19,500 to 33,000 pounds.\n\n(iii) Heavy heavy-duty \u201cHHD\u201d engines are designed for multiple rebuilds and have cylinder liners. Vehicles in this group are normally tractors, trucks, straight trucks with dual rear axles, and buses used in inter-city, long-haul applications. These vehicles normally exceed 33,000 pounds GVWR.\n\n(2) Divide spark-ignition engines into primary intended service classes as follows:\n\n(i) Spark-ignition engines that are best characterized by paragraph (1)(i) or (ii) of this section are in a separate \u201cspark-ignition\u201d primary intended service class.\n\n(ii) Spark-ignition engines that are best characterized by paragraph (1)(iii) of this section share a primary intended service class with compression-ignition heavy heavy-duty engines. Gasoline-fueled engines are presumed not to be characterized by paragraph (1)(iii) of this section; for example, vehicle manufacturers may install some number of gasoline-fueled engines in Class 8 trucks without causing the engine manufacturer to consider those to be heavy heavy-duty engines.\n\n(iii) References to \u201cspark-ignition standards\u201d in this part relate only to the spark-ignition engines identified in paragraph (2)(i) of this definition. References to \u201ccompression-ignition standards\u201d in this part relate to compression-ignition engines, to spark-ignition engines optionally certified to standards that apply to compression-ignition engines, and to all engines identified under paragraph (2)(ii) of this definition as heavy heavy-duty engines.\n\nRechargeable Energy Storage System (RESS)  means the component(s) of a hybrid engine or vehicle that store recovered energy for later use, such as the battery system in an electric hybrid vehicle.\n\nRefuse hauler  has the meaning given in 40 CFR 1037.801.\n\nRegional  has the meaning relating to the Regional duty cycle as specified in 40 CFR 1037.510.\n\nRegulatory category  means each of the four types of heavy-duty vehicles defined in 49 CFR 523.6 and the heavy-duty engines used in these heavy-duty vehicles.\n\nRegulatory subcategory  means the sub-groups in each regulatory category to which mandatory fuel consumption standards and requirements apply as specified in 40 CFR 1036.230 and 1037.230 and are defined as follows:\n\n(1) Heavy-duty pick-up trucks and vans.\n\n(2) Vocational vehicle subcategories have 18 separate vehicle service classes as shown in paragraphs (2)(i) and (ii) of this definition and include vocational tractors. Paragraph (2)(i) of this definition includes vehicles complying with Phase 1 standards. Phase 2 vehicles are included in paragraph (2)(ii) of this definition which have separate subcategories to account for engine characteristics, GVWR, and the selection of duty cycle for vocational vehicles as specified in 40 CFR 1037.510; vehicles may additionally fall into one of the subcategories defined by the custom-chassis standards in \u00a7 535.5(b)(6) and 40 CFR 1037.105(h). Manufacturers using the alternate standards in \u00a7 535.5(b)(6) and 40 CFR 1037.105(h) should treat each vehicle type as a separate vehicle subcategory.\n\n(i)  Phase 1 Vocational Vehicle Subcategories.  (A) Vocational LHD vehicles.\n\n(B) Vocational MHD vehicles.\n\n(C) Vocational HHD vehicles.\n\n(ii)  Phase 2 vocational vehicle subcategories.\n\n(3) Tractor subcategories are shown in paragraph (3)(i) of this definition for Phase 1 and 2. Paragraph (3)(i) includes 10 separate subcategories for tractors complying with Phase 1 and 2 standards. The heavy-haul tractor subcategory only applies for Phase 2.\n\n(i)  Phase 1 and 2 truck tractor subcategories.\n\n(ii) [Reserved]\n\n(4) [Reserved]\n\n(5) Engine subcategories are shown for each primary intended service class in paragraph (5)(i) of this definition. Paragraph (5)(i) includes 6 separate subcategories for engines which are the same for Phase 1 and 2 standards.\n\n(i)  Engine subcategories.\n\n(ii) [Reserved]\n\nRelating to  as used in this section means relating to something in a specific, direct manner. This expression is used in this section only to define terms as adjectives and not to broaden the meaning of the terms. (See 40 CFR 1037.801).\n\nRevoke  has the same meaning given in 40 CFR 1068.30.\n\nRoof height  means the maximum height of a vehicle (rounded to the nearest inch), excluding narrow accessories such as exhaust pipes and antennas, but including any wide accessories such as roof fairings. Measure roof height of the vehicle configured to have its maximum height that will occur during actual use, with properly inflated tires and no driver, passengers, or cargo onboard. Determine the base roof height on fully inflated tires having a static loaded radius equal to the arithmetic mean of the largest and smallest static loaded radius of tires a manufacturer offers or a standard tire EPA approves. If a vehicle is equipped with an adjustable roof fairing, measure the roof height with the fairing in its lowest setting. Once the maximum height is determined, roof heights are divided into the following categories:\n\n(1) Low-roof means a vehicle with a roof height of 120 inches or less.\n\n(2) Mid-roof means a vehicle with a roof height between 121 and 147 inches.\n\n(3) High-roof means a vehicle with a roof height of 148 inches or more.\n\nRound  means to apply the rounding convention specified in 40 CFR 1065.20(e), unless otherwise specified. (See 40 CFR 1065.1001).\n\nSecondary vehicle manufacturer  has the same meaning as final-stage manufacturer in 49 CFR part 567.\n\nService class group  means a group of engine and vehicle averaging sets defined as follows:\n\n(1) Spark-ignition engines, light heavy-duty compression-ignition engines, light heavy-duty vocational vehicles and heavy-duty pickup trucks and vans.\n\n(2) Medium heavy-duty compression-ignition engines and medium heavy-duty vocational vehicles and tractors.\n\n(3) Heavy heavy-duty compression-ignition engines and heavy heavy-duty vocational vehicles and tractors.\n\nSleeper cab  means a type of truck cab that has a compartment behind the driver's seat intended to be used by the driver for sleeping. This includes both cabs accessible from the driver's compartment and those accessible from outside the vehicle.\n\nSmall business manufacturer  means a manufacturer meeting the criteria specified in 13 CFR 121.201. For manufacturers owned by a parent company, the employee and revenue limits apply to the total number employees and total revenue of the parent company and all its subsidiaries.\n\nSpark-ignition (SI)  means relating to a gasoline-fueled engine or any other type of engine with a spark plug (or other sparking device) and with operating characteristics significantly similar to the theoretical Otto combustion cycle. Spark-ignition engines usually use a throttle to regulate intake air flow to control power during normal operation. Note that some spark-ignition engines are subject to requirements that apply for compression-ignition engines as described in 40 CFR 1036.140.\n\nStandard payload  means the payload assumed for each vehicle, in tons, for modeling and calculating emission credits, as follows:\n\n(1) For vocational vehicles:\n\n(i) 2.85 tons for light heavy-duty vehicles.\n\n(ii) 5.6 tons for medium heavy-duty vehicles.\n\n(iii) 7.5 tons for heavy heavy-duty vocational vehicles.\n\n(2) For tractors:\n\n(i) 12.5 tons for Class 7.\n\n(ii) 19 tons for Class 8.\n\n(iii) 43 tons for heavy-haul tractors.\n\nStandard trailer  means a trailer that meets the applicable criteria found in 40 CFR 1037.501(g). (See 40 CFR 1037.801).\n\nStop-start  means a vehicle technology that automatically turns the engine off when the vehicle is stopped, as described in 40 CFR 1037.660(a). (See the definition for  stop-start  in 40 CFR 1037.801)\n\nSubconfiguration  means a unique combination within a vehicle configuration of equivalent test weight, road-load horsepower, and any other operational characteristics or parameters that EPA determines may significantly affect CO 2  emissions within a vehicle configuration as defined in 40 CFR 600.002.\n\nTank trailer  has the meaning given in 40 CFR 1037.801.\n\nTest group  means the multiple vehicle lines and model types that share critical emissions and fuel consumption related features and that are certified as a group by a common certificate of conformity issued by EPA and is used collectively with other test groups within an averaging set or regulatory subcategory and is used by NHTSA for determining the fleet average fuel consumption.\n\nThe agencies  means the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA) in this part.\n\nTire pressure monitoring system (TPMS)  has the meaning given in section S3 of 49 CFR 571.138.\n\nTire rolling resistance level (TRRL)  means a value with units of kg/metric ton that represents that rolling resistance of a tire configuration. TRRLs are used as inputs to the GEM model under 40 CFR 1037.520. Note that a manufacturer may assign a value higher than a measured rolling resistance of a tire configuration.\n\nTowing capacity  in this part is equal to the resultant of subtracting the gross vehicle weight rating from the gross combined weight rating.\n\nTrade  means to exchange fuel consumption credits, either as a buyer or a seller.\n\nU.S.-directed production volume  means the number of vehicle units, subject to the requirements of this part, produced by a manufacturer for which the manufacturer has a reasonable assurance that sale was or will be made to ultimate purchasers in the United States.\n\nUseful life  has the meaning given in 40 CFR 1036.801 and 1037.801.\n\nVehicle configuration  means a unique combination of vehicle hardware and calibration (related to measured or modeled emissions) within a vehicle family as specified in 40 CFR 1037.801. Vehicles with hardware or software differences, but that have no hardware or software differences related to measured or modeled emissions or fuel consumption can be included in the same vehicle configuration. Note that vehicles with hardware or software differences related to measured or modeled emissions or fuel consumption are considered to be different configurations even if they have the same GEM inputs and FEL. Vehicles within a vehicle configuration differ only with respect to normal production variability or factors unrelated to measured or modeled emissions and fuel consumption for EPA and NHTSA.\n\nVehicle family  has the meaning given in 40 CFR 1037.230. Manufacturers designate families in accordance with EPA provisions and may not choose different families between the NHTSA and EPA programs. If a manufacturer is certifying vehicles within a vehicle family to more than one FEL, it must subdivide its greenhouse gas and fuel consumption vehicle families into subfamilies that include vehicles with identical FELs. Note that a manufacturer may add subfamilies at any time during the model year.\n\nVehicle identification number  has the meaning given in 49 CFR 565.12 for  VIN.\n\nVehicle service class  means classes of vehicles, generally based on a vehicle's weight class, that are used for purposes of determining applicable requirements. The  vehicle service classes  defined here for use in this part align with the  vehicle service classes  specified in 40 CFR 1037.140(g). Fuel consumption standards and other provisions of this part apply to specific vehicle service classes for tractors and vocational vehicles as follows:\n\n(1) Phase 1 and Phase 2 tractors are divided based on GVWR into Class 7 tractors and Class 8 tractors. Where provisions apply to both tractors and vocational vehicles, Class 7 tractors are considered medium heavy-duty \u201cMHD\u201d vehicles and Class 8 tractors are considered heavy heavy-duty \u201cHHD\u201d vehicles. This paragraph applies for both hybrid and non-hybrid vehicles.\n\n(2) Phase 1 vocational vehicles are divided based on GVWR. Light heavy-duty \u201cLHD\u201d vehicles includes Class 2b through Class 5 vehicles; medium heavy-duty \u201cMHD\u201d vehicles includes Class 6 and Class 7 vehicles; and heavy heavy-duty \u201cHHD\u201d vehicles includes Class 8 vehicles.\n\n(3) Phase 2 vocational vehicles with spark-ignition engines are divided based on GVWR. Light heavy-duty \u201cLHD\u201d vehicles includes Class 2b through Class 5 vehicles, and medium heavy-duty \u201cMHD\u201d vehicles includes Class 6 through Class 8 vehicles.\n\n(4) Phase 2 vocational vehicles with compression-ignition engines are divided as follows:\n\n(i) Class 2b through Class 5 vehicles are considered light heavy-duty \u201cLHD\u201d vehicles.\n\n(ii) Class 6 through 8 vehicles are considered heavy heavy-duty \u201cHHD\u201d vehicles if the installed engine's primary intended service class is heavy heavy-duty (see 40 CFR 1036.140), except that Class 8 hybrid vehicles are considered heavy heavy-duty \u201cHHD\u201d vehicles regardless of the engine's primary intended service class. All other Class 6 through Class 8 vehicles are considered medium heavy-duty \u201cMHD\u201d vehicles.\n\n(5) Heavy-duty vehicles with no installed propulsion engine, such as electric vehicles, are divided as follows:\n\n(i) Class 2b through Class 5 vehicles are considered light heavy-duty \u201cLHD\u201d vehicles.\n\n(ii) Class 6 and 7 vehicles are considered medium heavy-duty \u201cMHD\u201d vehicles.\n\n(iii) Class 8 vehicles are considered heavy heavy-duty \u201cHHD\u201d vehicles.\n\n(6) In certain circumstances, manufacturers may certify vehicles to standards that apply for a different vehicle service class such as allowed in \u00a7 535.5(b)(6) and (c)(7). If manufacturers optionally certify vehicles to different standards, those vehicles are subject to all the regulatory requirements as if the standards were mandatory.\n\nVehicle subfamily or subfamily  means a subset of a vehicle family including vehicles subject to the same FEL(s).\n\nVocational tractor  has the meaning given in 40 CFR 1037.801.\n\nZero emissions vehicle  means an electric vehicle or a fuel cell vehicle."], ["49:49:6.1.2.3.16.0.1.5", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.5 Standards.", "NHTSA", "", "", "[81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18825, Mar. 15, 2024; 89 FR 52951, June 24, 2024]", "(a)  Heavy-duty pickup trucks and vans.  Each manufacturer's fleet of heavy-duty pickup trucks and vans shall comply with the fuel consumption standards in this paragraph (a) expressed in gallons per 100 miles. Each vehicle must be manufactured to comply for its full useful life. For the Phase 1 program, if the manufacturer's fleet includes conventional vehicles (gasoline, diesel and alternative fueled vehicles) and advanced technology vehicles (hybrids with powertrain designs that include energy storage systems, vehicles with waste heat recovery, electric vehicles and fuel cell vehicles), it may divide its fleet into two separate fleets each with its own separate fleet average fuel consumption standard which the manufacturer must comply with the requirements of this paragraph (a). For Phase 2, manufacturers may calculate their fleet average fuel consumption standard for a conventional fleet and multiple advanced technology vehicle fleets. Advanced technology vehicle fleets should be separated into plug-in hybrid electric vehicles, electric vehicles, and fuel cell vehicles. The standards in this paragraph (a) correspond to EPA requirements specified in 40 CFR 86.1819-14. When applying the fuel consumption standards in this paragraph (a), manufacturers must use the same options they use to comply with EPA in 40 CFR part 86, subpart S in terms of grouping vehicles and/or engines for purposes of determining applicable standards and determining compliance ( i.e.,  the vehicles and/or engines and must be grouped in the same way for purposes of this paragraph (a) as they are grouped for compliance with EPA's requirements in 40 CFR part 86, subpart S). Engines that are installed in vehicles that are subject to the standards in this paragraph are not subject to the standards in paragraph (d) of this section and may not optionally comply with paragraph (d).\n\n(1)  Mandatory standards.  For model years 2016 and later, each manufacturer must comply with the fleet average standard derived from the unique subconfiguration target standards (or groups of subconfigurations approved by EPA in accordance with 40 CFR 86.1819) of the model types that make up the manufacturer's fleet in a given model year. Each subconfiguration has a unique attribute-based target standard, defined by each group of vehicles having the same payload, towing capacity and whether the vehicles are equipped with a 2-wheel or 4-wheel drive configuration. Phase 1 target standards apply for model years 2016 through 2020. Phase 2 target standards apply for model years 2021 through 2029. NHTSA's Phase 3 HDPUV target standards apply for model year 2030 and later.\n\n(2)  Subconfiguration target standards.  (i) Two alternatives exist for determining the subconfiguration target standards for Phase 1. For each alternative, separate standards exist for compression-ignition and spark-ignition vehicles:\n\n(A) The first alternative allows manufacturers to determine a fixed fuel consumption standard that is constant over the model years; and\n\n(B) The second alternative allows manufacturers to determine standards that are phased-in gradually each year.\n\n(ii) Calculate the subconfiguration target standards as specified in this paragraph (a)(2)(ii), using the appropriate coefficients from table 1 to paragraph (a)(2)(ii), choosing between the alternatives in paragraph (a)(2)(i) of this section. For electric or fuel cell heavy-duty vehicles, use compression-ignition vehicle coefficients \u201cc\u201d and \u201cd\u201d and for hybrid (including plug-in hybrid), dedicated and dual-fueled vehicles, use coefficients \u201cc\u201d and \u201cd\u201d appropriate for the engine type used. Round each standard to the nearest 0.001 gallons per 100 miles and specify all weights in pounds rounded to the nearest pound. Calculate the subconfiguration target standards using equation: 1 to this paragraph (a)(2)(ii).\n\nSubconfiguration Target Standard (gallons per 100 miles) = [c \u00d7 (WF)] + d\n\nWhere:\n \n WF = Work Factor = [0.75 \u00d7 (Payload Capacity + Xwd)] + [0.25 \u00d7 Towing Capacity]\n \n Xwd = 4wd Adjustment = 500 lbs. if the vehicle group is equipped with 4wd and all-wheel drive, otherwise equals 0 lbs. for 2wd.\n \n Payload Capacity = GVWR (lbs.) \u2212 Curb Weight (lbs.) (for each vehicle group) Towing Capacity = GCWR (lbs.) \u2212 GVWR (lbs.) (for each vehicle group)\n\nWhere:\n\nWF = Work Factor = [0.75 \u00d7 (Payload Capacity + Xwd)] + [0.25 \u00d7 Towing Capacity]\n\nXwd = 4wd Adjustment = 500 lbs. if the vehicle group is equipped with 4wd and all-wheel drive, otherwise equals 0 lbs. for 2wd.\n\nPayload Capacity = GVWR (lbs.) \u2212 Curb Weight (lbs.) (for each vehicle group) Towing Capacity = GCWR (lbs.) \u2212 GVWR (lbs.) (for each vehicle group)\n\nTable 1 to Paragraph ( a )(2)( ii )\u2014Coefficients for Mandatory Subconfiguration Target Standards\n\n(3)  Fleet average fuel consumption standard.  (i) For the Phase 1 program, calculate each manufacturer's fleet average fuel consumption standard for a conventional fleet and a combined advanced technology fleet separately based on the subconfiguration target standards specified in paragraph (a)(2) of this section, weighted to production volumes and averaged using the following equation combining all the applicable vehicles in a manufacturer's U.S.-directed fleet (compression-ignition, spark-ignition and advanced technology vehicles) for a given model year, rounded to the nearest 0.001 gallons per 100 miles:\n\nWhere:\n \n Subconfiguration Target Standard i  = fuel consumption standard for each group of vehicles with same payload, towing capacity and drive configuration (gallons per 100 miles).\n \n Volume i  = production volume of each unique subconfiguration of a model type based upon payload, towing capacity and drive configuration.\n\nWhere:\n\nSubconfiguration Target Standard i  = fuel consumption standard for each group of vehicles with same payload, towing capacity and drive configuration (gallons per 100 miles).\n\nVolume i  = production volume of each unique subconfiguration of a model type based upon payload, towing capacity and drive configuration.\n\n(A) A manufacturer may group together subconfigurations that have the same test weight (ETW), GVWR, and GCWR. Calculate work factor and target value assuming a curb weight equal to two times ETW minus GVWR.\n\n(B) A manufacturer may group together other subconfigurations if it uses the lowest target value calculated for any of the subconfigurations.\n\n(ii) For Phase 1, manufacturers must select an alternative for subconfiguration target standards at the same time they submit the model year 2016 pre-model year Report, specified in \u00a7 535.8. Once selected, the decision cannot be reversed and the manufacturer must continue to comply with the same alternative for subsequent model years.\n\n(4)  Voluntary standards.  (i) Manufacturers may choose voluntarily to comply early with fuel consumption standards for model years 2013 through 2015, as determined in paragraphs (a)(4)(iii) and (iv) of this section, for example, in order to begin accumulating credits through over-compliance with the applicable standard. A manufacturer choosing early compliance must comply with all the vehicles and engines it manufactures in each regulatory category for a given model year.\n\n(ii) A manufacturer must declare its intent to voluntarily comply with fuel consumption standards at the same time it submits a Pre-Model Report, prior to the compliance model year beginning as specified in \u00a7 535.8; and, once selected, the decision cannot be reversed and the manufacturer must continue to comply for each subsequent model year for all the vehicles and engines it manufactures in each regulatory category for a given model year.\n\n(iii) Calculate separate subconfiguration target standards for compression-ignition and spark-ignition vehicles for model years 2013 through 2015 using the equation in paragraph (a)(2)(ii) of this section, substituting the appropriate values for the coefficients in the following table as appropriate:\n\nTable 7\u2014Coefficients for Voluntary Subconfiguration Target Standards\n\n(iv) Calculate the fleet average fuel consumption standards for model years 2013 through 2015 using the equation in paragraph (a)(3) of this section.\n\n(5)  Exclusion of vehicles not certified as complete vehicles.  The vehicle standards in paragraph (a) of this section do not apply for vehicles that are chassis-certified with respect to EPA's criteria pollutant test procedure in 40 CFR part 86, subpart S. Any chassis-certified vehicles must comply with the vehicle standards and requirements of paragraph (b) of this section and the engine standards of paragraph (d) of this section for engines used in these vehicles. A vehicle manufacturer choosing to comply with this paragraph and that is not the engine manufacturer is required to notify the engine manufacturers that their engines are subject to paragraph (d) of this section and that it intends to use their engines in excluded vehicles.\n\n(6)  Optional certification under this section.  Manufacturers may certify certain complete or cab-complete vehicles to the fuel consumption standards of this section. All vehicles optionally certified under this paragraph (6) are deemed to be subject to the fuel consumption standards of this section given the following conditions:\n\n(i) For fuel consumption compliance, manufacturers may certify any complete or cab-complete spark-ignition vehicles above 14,000 pounds GVWR and at or below 26,000 pounds GVWR to the fuel consumption standards of this section.\n\n(ii) Manufacturers may apply the provisions of this section to cab-complete vehicles based on a complete sister vehicle. In unusual circumstances, manufacturers may ask the agencies to apply these provisions to Class 2b or Class 3 incomplete vehicles that do not meet the definition of cab-complete.\n\n(A) Except as specified in paragraph (a)(6)(iii) of this section, for purposes of this section, a complete sister vehicle is a complete vehicle of the same vehicle configuration as the cab-complete vehicle. A manufacturer may not apply the provisions of this paragraph (6) to any vehicle configuration that has a four-wheel rear axle if the complete sister vehicle has a two-wheel rear axle.\n\n(B) Calculate the target value for the fleet-average fuel consumption standard under paragraph (a)(3) of this section based on the work factor value that applies for the complete sister vehicle.\n\n(C) Test these cab-complete vehicles using the same equivalent test weight and other dynamometer settings that apply for the complete vehicle from which you used the work factor value (the complete sister vehicle). For fuel consumption certification, manufacturers may submit the test data from that complete sister vehicle instead of performing the test on the cab-complete vehicle.\n\n(D) Manufacturers are not required to produce the complete sister vehicle for sale to use the provisions of this paragraph (a)(6)(ii). This means the complete sister vehicle may be a carryover vehicle from a prior model year or a vehicle created solely for the purpose of testing.\n\n(iii) For fuel consumption purposes, if a cab-complete vehicle is not of the same vehicle configuration as a complete sister vehicle due only to certain factors unrelated to coastdown performance, manufacturers may use the road-load coefficients from the complete sister vehicle for certification testing of the cab-complete vehicle, but it may not use fuel consumption data from the complete sister vehicle for certifying the cab-complete vehicle.\n\n(7)  Loose engines.  For model year 2023 and earlier spark-ignition engines with identical hardware compared with engines used in vehicles certified to the standards of this section, where such engines are sold as loose engines or as engines installed in incomplete vehicles that are not cab-complete vehicles. Manufacturers may certify such engines to the standards of this section, subject to the following provisions:\n\n(i) For 2020 and earlier model years, the maximum allowable U.S.-directed production volume of engines manufacturers may sell under this paragraph (7) in any given model year is ten percent of the total U.S-directed production volume of engines of that design that the manufacturer produces for heavy-duty applications for that model year, including engines it produces for complete vehicles, cab-complete vehicles, and other incomplete vehicles. The total number of engines a manufacturer may certify under this paragraph (7), of all engine designs, may not exceed 15,000 in any model year. Engines produced in excess of either of these limits are not covered by your certificate. For example, a manufacturer produces 80,000 complete model year 2017 Class 2b pickup trucks with a certain engine and 10,000 incomplete model year 2017 Class 3 vehicles with that same engine, and the manufacturer did not apply the provisions of this paragraph (a)(7) to any other engine designs, it may produce up to 10,000 engines of that design for sale as loose engines under this paragraph (a)(7). If a manufacturer produced 11,000 engines of that design for sale as loose engines, the last 1,000 of them that it produced in that model year 2017 would be considered uncertified.\n\n(ii) For model years 2021 through 2023, the U.S.-directed production volume of engines manufacturers sell under this paragraph (a)(7) in any given model year may not exceed 10,000 units. This paragraph (a)(7) does not apply for engines certified to the standards of paragraph (d) of this section and 40 CFR 1036.108.\n\n(iii) Vehicles using engines certified under this paragraph (a)(7) are subject to the fuel consumption and emission standards of paragraph (b) of this section and 40 CFR 1037.105 and engine standards in 40 CFR 1036.150(j).\n\n(iv) For certification purposes, engines are deemed to have a fuel consumption target values and test result equal to the fuel consumption target value and test result for the complete vehicle in the applicable test group with the highest equivalent test weight, except as specified in paragraph (a)(7)(iv)(B) of this section. Manufacturers use these values to calculate target values and the fleet-average fuel consumption rate. Where there are multiple complete vehicles with the same highest equivalent test weight, select the fuel consumption target value and test result as follows:\n\n(A) If one or more of the fuel consumption test results exceed the applicable target value, use the fuel consumption target value and test result of the vehicle that exceeds its target value by the greatest amount.\n\n(B) If none of the fuel consumption test results exceed the applicable target value, select the highest target value and set the test result equal to it. This means that the manufacturer may not generate fuel consumption credits from vehicles certified under this paragraph (a)(7).\n\n(8)  Alternative fuel vehicle conversions.  Alternative fuel vehicle conversions may demonstrate compliance with the standards of this part or other alternative compliance approaches allowed by EPA in 40 CFR 85.525.\n\n(9)  Advanced, innovative, and off-cycle technologies.  For vehicles subject to Phase 1 standards, manufacturers may generate separate credit allowances for advanced and innovative technologies as specified in \u00a7 535.7(f)(1) and (2). For vehicles subject to Phase 2 standards, manufacturers may generate separate credits allowance for off-cycle technologies in accordance with \u00a7 535.7(f)(2) through model year 2029. Separate credit allowances for advanced technology vehicles cannot be generated; instead, manufacturers may use the credit specified in \u00a7 535.7(f)(1)(ii) through model year 2027.\n\n(10)  Useful life.  The following useful life values apply for the standards of this section:\n\n(i) 120,000 miles or 10 years, whichever comes first, for Class 2b through Class 3 heavy-duty pickup trucks and vans certified to Phase 1 standards.\n\n(ii) 150,000 miles or 15 years, whichever comes first, for Class 2b through Class 3 heavy-duty pickup trucks and vans certified to Phase 2 standards.\n\n(iii) For Phase 1 credits that you calculate based on a useful life of 120,000 miles, multiply any banked credits that you carry forward for use into the Phase 2 program by 1.25. For Phase 1 credit deficits that you generate based on a useful life of 120,000 miles multiply the credit deficit by 1.25 if offsetting the shortfall with Phase 2 credits.\n\n(11)  Compliance with standards.  A manufacturer complies with the standards of this part as described in \u00a7 535.10.\n\n(b)  Heavy-duty vocational vehicles.  Each manufacturer building complete or incomplete heavy-duty vocational vehicles shall comply with the fuel consumption standards in this paragraph (b) expressed in gallons per 1,000 ton-miles. When applying the fuel consumption standards in this paragraph (b), manufacturers must use the same options they use to comply with EPA in 40 CFR 1037.105 in terms of grouping vehicles and/or engines for purposes of determining applicable standards and determining compliance ( i.e.,  the vehicles and/or engines and must be grouped in the same way for purposes of this paragraph (b) as they are grouped for compliance with EPA's requirements in 40 CFR 1037.105). Engines used in heavy-duty vocational vehicles shall comply with the standards in paragraph (d) of this section. Each vehicle must be manufactured to comply for its full useful life. Standards apply to the vehicle subfamilies based upon the vehicle service classes within each of the vocational vehicle regulatory subcategories in accordance with \u00a7 535.4 and based upon the applicable modeling and testing specified in \u00a7 535.6. Determine the duty cycles that apply to vocational vehicles according to 40 CFR 1037.140 and 1037.150(z).\n\n(1)  Mandatory standards.  Heavy-duty vocational vehicle subfamilies produced for Phase 1 must comply with the fuel consumption standards in paragraph (b)(3) of this section. For Phase 2, each vehicle manufacturer of heavy-duty vocational vehicle subfamilies must comply with the fuel consumption standards in paragraph (b)(4) of this section.\n\n(i) For model years 2016 to 2020, the heavy-duty vocational vehicle category is subdivided by GVWR into three regulatory subcategories as defined in \u00a7 535.4, each with its own assigned standard.\n\n(ii) For model years 2021 and later, the heavy-duty vocational vehicle category is subdivided into 15 regulatory subcategories depending upon whether vehicles are equipped with a compression or spark-ignition engine, as defined in \u00a7 535.4. Standards also differ based upon vehicle service class and intended vehicle duty cycles. See 40 CFR 1037.140 and 1037.150(z).\n\n(iii) For purposes of certifying vehicles to fuel consumption standards, manufacturers must divide their product lines in each regulatory subcategory into vehicle families that have similar emissions and fuel consumption features, as specified by EPA in 40 CFR 1037.230. These families will be subject to the applicable standards. Each vehicle family is limited to a single model year.\n\n(A) Vocational vehicles including custom chassis vehicles must use qualified automatic tire inflation systems or tire pressure monitoring systems for wheels on all axles.\n\n(B) [Reserved]\n\n(2)  Voluntary compliance.  (i) For model years 2013 through 2015, a manufacturer may choose voluntarily to comply early with the fuel consumption standards provided in paragraph (b)(3) of this section. For example, a manufacturer may choose to comply early in order to begin accumulating credits through over-compliance with the applicable standards. A manufacturer choosing early compliance must comply with all the vehicles and engines it manufacturers in each regulatory category for a given model year.\n\n(ii) A manufacturer must declare its intent to voluntarily comply with fuel consumption standards and identify its plans to comply before it submits its first application for a certificate of conformity for the respective model year as specified in \u00a7 535.8; and, once selected, the decision cannot be reversed and the manufacturer must continue to comply for each subsequent model year for all the vehicles and engines it manufacturers in each regulatory category for a given model year.\n\n(3)  Regulatory subcategory standards for model years 2013 to 2020.  The mandatory and voluntary fuel consumption standards for heavy-duty vocational vehicles are given in the following table:\n\nTable 8\u2014Phase 1 Vocational Vehicle Fuel Consumption Standards\n\n[Gallons per 1000 ton-miles]\n\n(4)  Regulatory subcategory standards for model years 2021 and later.  The mandatory fuel consumption standards for heavy-duty vocational vehicles are given in the following table:\n\nTable 9 to Paragraph  (b)(4) \u2014Phase 2 Vocational Vehicle Fuel Consumption Standards\n\n[Gallons per 1,000 ton-miles]\n\n(5)  Subfamily standards.  Manufacturers may specify a family emission limit (FEL) in terms of fuel consumption for each vehicle subfamily. The FEL may not be less than the result of fuel consumption modeling from 40 CFR 1037.520. The FELs is the fuel consumption standards for the vehicle subfamily instead of the standards specified in paragraph (b)(3) and (4) of this section and can be used for calculating fuel consumption credits in accordance with \u00a7 535.7.\n\n(6)  Alternate standards for custom chassis vehicles for model years 2021 and later.  Manufacturers may elect to certify certain vocational vehicles to the alternate standards for custom chassis vehicles specified in this paragraph (b)(6) instead of the standards specified in paragraph (b)(4) of this section. Note that, although these standards were established for custom chassis vehicles, manufacturers may apply these provisions to any qualifying vehicle even though these standards were established for custom chassis vehicles. For example, large diversified vehicle manufacturers may certify vehicles to the refuse hauler standards of this section as long as the manufacturer ensures that those vehicles qualify as refuse haulers when placed into service. GEM simulates vehicle operation for each type of vehicle based on an assigned vehicle service class, independent of the vehicle's actual characteristics, as shown in Table 10 of this section; however, standards apply for the vehicle's useful life based on its actual characteristics as specified in paragraph (b)(10) of this section. Vehicles certified to these alternative standards must use engines certified to requirements under paragraph (d) of this section and 40 CFR part 1036 for the appropriate model year, except that motor homes and emergency vehicles may use engines certified with the loose-engine provisions of paragraph (a)(7) of this section and 40 CFR 1037.150(m). This also applies for vehicles meeting standards under paragraphs (b)(6)(iv) through (vi) of this section. The fuel consumption standards for custom chassis vehicles are given in the following table:\n\nTable 10\u2014Phase 2 Custom Chassis Fuel Consumption Standards\n\n[Gallon per 1,000 ton-mile]\n\n1  Vehicle types are generally defined in \u00a7 535.3. \u201cOther bus\u201d includes any bus that is not a school bus or a coach bus. A \u201cmixed-use vehicle\u201d is one that meets at least one of the criteria specified in 40 CFR 1037.631(a)(1) or at least one of the criteria in 40 CFR 1037.631(a)(2), but not both.\n\n(i) Manufacturers may generate or use fuel consumption credits for averaging to demonstrate compliance with the alternative standards as described in \u00a7 535.7(c). This requires that manufacturers specify a Family Emission Limit (FEL) for fuel consumption for each vehicle subfamily. The FEL may not be less than the result of emission modeling as described in this paragraph (b). These FELs serve as the fuel consumption standards for the vehicle subfamily instead of the standards specified in this paragraph (b)(6). Manufacturers may only use fuel consumption credits for vehicles certified to the optional standards in this paragraph (b)(6) as specified in \u00a7 535.7(c)(6) through (8) and you may not bank or trade fuel consumption credits from any vehicles certified under this paragraph (b)(6).\n\n(ii) For purposes of this paragraph (b)(6), each separate vehicle type identified in Table 10 of this section is in a separate averaging set.\n\n(iii) For purposes of emission and fuel consumption modeling under 40 CFR 1037.520, consider motor homes and coach buses to be subject to the Regional duty cycle, and consider all other vehicles to be subject to the Urban duty cycle.\n\n(iv) Emergency vehicles are deemed to comply with the standards of this paragraph (6) if manufacturers use tires with TRRL at or below 8.4 kg/ton (8.7 g/ton for model years 2021 through 2026).\n\n(v) Concrete mixers are deemed to comply with the standards of this paragraph (6) if manufacturers use tires with TRRL at or below 7.1 kg/ton (7.6 g/ton for model years 2021 through 2026).\n\n(vi) Motor homes are deemed to comply with the standards of this paragraph (b)(6) if manufacturers use the following technologies:\n\n(A) Tires with TRRL at or below 6.0 kg/ton (6.7 g/ton for model years 2021 through 2026).\n\n(B) Automatic tire inflation systems or tire pressure monitoring systems with wheels on all axles.\n\n(C) Tire pressure monitoring systems must use low pressure warning and malfunction telltales in clear view of the driver as specified in S4.3 and S4.4 of 49 CFR 571.138.\n\n(vii) Small business manufacturers using the alternative standards for custom chassis vehicles under this paragraph (b)(6) may use fuel consumption credits subject to the unique provisions in \u00a7 535.7(a)(9).\n\n(7)  Advanced, innovative and off-cycle technologies.  For vocational vehicles subfamilies subject to Phase 1 standards, manufacturers must create separate vehicle subfamilies for vehicles that contain advanced or innovative technologies and group those vehicles together in a vehicle subfamily if they use the same advanced or innovative technologies. Manufacturers may generate s separate credit allowances for advanced and innovative technologies as specified in \u00a7 535.7(f)(1) and (2). For vehicles subfamilies subject to Phase 2 standards, manufacturers may generate separate credit allowances for off-cycle technologies in accordance with \u00a7 535.7(f)(2). Separate credit allowances for advanced technology vehicles cannot be generated but instead manufacturers may use the credit multipliers specified in \u00a7 535.7(f)(1)(iv) through model year 2026.\n\n(8)  Certifying across service classes.  A manufacturer may optionally certify a vocational vehicle subfamilies to the standards and useful life applicable to a heavier vehicle service class (such as MHD vocational vehicles instead of LHD vocational vehicles). Provisions related to generating fuel consumption credits apply as follows:\n\n(i) If a manufacturer certifies all its vehicles from a given vehicle service class in a given model year to the standards and useful life that applies for a heavier vehicle service class, it may generate credits as appropriate for the heavier service class.\n\n(ii) Class 8 hybrid vehicles with light or medium heavy-duty engines may be certified to compression-ignition standards for the Heavy HDV service class. A manufacturer may generate and use credits as allowed for the Heavy HDV service class.\n\n(iii) Except as specified in paragraphs (b)(8)(i) and (ii) of this section, a manufacturer may not generate credits with the vehicle. If you include lighter vehicles in a subfamily of heavier vehicles with an FEL below the standard, exclude the production volume of lighter vehicles from the credit calculation. Conversely, if a manufacturer includes lighter vehicles in a subfamily with an FEL above the standard, it must include the production volume of lighter vehicles in the credit calculation.\n\n(9)  Off-road exemptions.  This section provides an exemption for heavy-duty vocational vehicle subfamilies, including vocational tractors that are intended to be used extensively in off-road environments such as forests, oil fields, and construction sites from the fuel consumption standards in this paragraph (b). Vehicle exempted by this part do not comply with vehicle standards in this paragraph (b), but the engines in these vehicles must meet the engine requirements of paragraph (d) of this section. Note that manufacturers may not include these exempted vehicles in any credit calculations under this part.\n\n(i)  Qualifying criteria.  Vocational vehicles with a date of manufacture before January 1, 2021 automatically qualify for an exemption under this paragraph (b)(9) if the tires installed on the vehicle have a maximum speed rating at or below 55 miles per hour. Vocational vehicles intended for off-road use are exempt without request, subject to the provisions of this section, if they are primarily designed to perform work off-road (such as in oil fields, mining, forests, or construction sites), and they meet at least one of the criteria of paragraph (b)(9)(i)(A) of this section and at least one of the criteria of paragraph (b)(9)(i)(B) of this section. See paragraph (b)(6) of this section for alternate standards that apply for vehicles meeting only one of these sets of criteria.\n\n(A) The vehicle must have affixed components designed to work inherently in an off-road environment (such as hazardous material equipment or off-road drill equipment) or be designed to operate at low speeds such that it is unsuitable for normal highway operation.\n\n(B) The vehicle must meet one of the following criteria:\n\n( 1 ) Have an axle that has a gross axle weight rating (GAWR) at or above 29,000 pounds.\n\n( 2 ) Have a speed attainable in 2.0 miles of not more than 33 mi/hr.\n\n( 3 ) Have a speed attainable in 2.0 miles of not more than 45 mi/hr, an unloaded vehicle weight that is not less than 95 percent of its gross vehicle weight rating, and no capacity to carry occupants other than the driver and operating crew.\n\n( 4 ) Have a maximum speed at or below 54 mi/hr. A manufacturer may consider the vehicle to be appropriately speed-limited if engine speed at 54 mi/hr is at or above 95 percent of the engine's maximum test speed in the highest available gear. A manufacturer may alternatively limit vehicle speed by programming the engine or vehicle's electronic control module in a way that is tamper-resistant.\n\n(ii)  Tractors.  The provisions of this section may apply for tractors only if each tractor qualifies as a vocational tractor under paragraph (c)(9) of this section or is granted approval for the exemption as specified in paragraph (b)(9)(iii) of this section.\n\n(iii)  Preliminary approval before certification.  If a manufacturers has unusual circumstances where it may be questionable whether its vehicles qualify for the off-road exemption of this part, the manufacturer may send the agencies information before finishing its application for certification (see 40 CFR 1037.205) for the applicable vehicles and ask for a preliminary informal approval. The agencies will review the request and make an appropriate determination in accordance with 40 CFR 1037.210. The agencies will generally not reverse a decision where they have given a manufacturer preliminary approval, unless the agencies find new information supporting a different decision. However, the agencies will normally not grant relief in cases where the vehicle manufacturer has credits or can otherwise comply with the applicable standards.\n\n(iv)  Recordkeeping and reporting.  (A) A manufacturers must keep records to document that its exempted vehicle configurations meet all applicable requirements of this section. Keep these records for at least eight years after you stop producing the exempted vehicle model. The agencies may review these records at any time.\n\n(B) A manufacturers must also keep records of the individual exempted vehicles you produce, including the vehicle identification number and a description of the vehicle configuration.\n\n(C) Within 90 days after the end of each model year, manufacturers must send to EPA a report as specified in \u00a7 535.8(g)(7) and EPA will make the report available to NHTSA.\n\n(v)  Compliance.  (A) Manufacturers producing vehicles meeting the off-road exemption criteria in paragraph (b)(9)(i) of this section or that are granted a preliminary approval comply with the standards of this part.\n\n(B) In situations where a manufacturer would normally ask for a preliminary approval subject to paragraph (b)(9)(iii) of this section but introduces its vehicle into U.S. commerce without seeking approval first from the agencies, those vehicles violate compliance with the fuel consumption standards of this part and the EPA provisions under 40 CFR 1068.101(a)(1).\n\n(C) If at any time, the agencies find new information that contradicts a manufacturer's use of the off-road exemption of this part, the manufacturers vehicles will be determined to be non-compliant with the regulations of this part and the manufacturer may be liable for civil penalties.\n\n(10)  Useful life.  The following useful life values apply for the standards of this section:\n\n(i) 110,000 miles or 10 years, whichever comes first, for vocational LHD vehicles certified to Phase 1 standards.\n\n(ii) 150,000 miles or 15 years, whichever comes first, for vocational LHD vehicles certified to Phase 2 standards.\n\n(iii) 185,000 miles or 10 years, whichever comes first, for vocational MHD vehicles for Phase 1 and 2.\n\n(iv) 435,000 miles or 10 years, whichever comes first, for vocational HHD vehicles for Phase 1 and 2.\n\n(v) For Phase 1 credits calculated based on a useful life of 110,000 miles, multiply any banked credits carried forward for use into the Phase 2 program by 1.36. For Phase 1 credit deficits generated based on a useful life of 110,000 miles multiply the credit deficit by 1.36, if offsetting the shortfall with Phase 2 credits.\n\n(11)  Recreational vehicles.  Recreational vehicles manufactured after model year 2020 must comply with the fuel consumption standards of this section. Manufacturers producing these vehicles may also certify to fuel consumption standards from 2014 through model year 2020. Manufacturers may earn credits retroactively for early compliance with fuel consumption standards. Once selected, a manufacturer cannot reverse the decision and the manufacturer must continue to comply for each subsequent model year for all the vehicles it manufacturers in each regulatory subcategory for a given model year.\n\n(12)  Loose engines.  Manufacturers may certify certain spark-ignition engines along with chassis-certified heavy-duty vehicles where there are identical engines used in those vehicles as described in 40 CFR 86.1819(k)(8) and 40 CFR 1037.150(m). Vehicles in which those engines are installed are subject to standards under this part.\n\n(13)  Compliance with Standards.  A manufacturer complies with the standards of this part as described in \u00a7 535.10.\n\n(c)  Truck tractors.  Each manufacturer building truck tractors, except vocational tractors or vehicle constructed in accordance with 49 CFR 571.7(e), with a GVWR above 26,000 pounds shall comply with the fuel consumption standards in this paragraph (c) expressed in gallons per 1,000 ton-miles. When applying the fuel consumption standards in this paragraph (c), manufacturers must use the same options they use to comply with EPA in 40 CFR 1037.106 in terms of grouping vehicles and/or engines for purposes of determining applicable standards and determining compliance ( i.e.,  the vehicles and/or engines and must be grouped in the same way for purposes of this paragraph (c) as they are grouped for compliance with EPA's requirements in 40 CFR 1037.106). Engines used in heavy-duty truck tractors vehicles shall comply with the standards in paragraph (d) of this section. Each vehicle must be manufactured to comply for its full useful life. Standards apply to the vehicle subfamilies within each of the tractor vehicle regulatory subcategories in accordance with \u00a7 535.4 and 40 CFR 1037.230 and based upon the applicable modeling and testing specified in \u00a7 535.6. Determine the vehicles in each regulatory subcategory in accordance with 40 CFR 1037.140.\n\n(1)  Mandatory standards.  For model years 2016 and later, each manufacturer's truck tractor subfamilies must comply with the fuel consumption standards in paragraph (c)(3) of this section.\n\n(i) Based on the roof height and the design of the cab, the truck tractor category is divided into subcategories as described in \u00a7 535.4. The standards that apply to each regulatory subcategory are shown in paragraphs (c)(2) and (3) of this section, each with its own assigned standard.\n\n(ii) For purposes of certifying vehicles to fuel consumption standards, manufacturers must divide their product lines in each regulatory subcategory into vehicles subfamilies that have similar emissions and fuel consumption features, as specified by EPA in 40 CFR 1037.230, and these subfamilies will be subject to the applicable standards. Each vehicle subfamily is limited to a single model year.\n\n(iii) Standards for truck tractor engines are given in paragraph (d) of this section.\n\n(2)  Voluntary compliance.  (i) For model years 2013 through 2015, a manufacturer may choose voluntarily to comply early with the fuel consumption standards provided in paragraph (c)(3) of this section. For example, a manufacturer may choose to comply early in order to begin accumulating credits through over-compliance with the applicable standards. A manufacturer choosing early compliance must comply with all the vehicles and engines it manufacturers in each regulatory category for a given model year.\n\n(ii) A manufacturer must declare its intent to voluntarily comply with fuel consumption standards and identify its plans to comply before it submits its first application for a certificate of conformity for the respective model year as specified in \u00a7 535.8; and, once selected, the decision cannot be reversed and the manufacturer must continue to comply for each subsequent model year for all the vehicles and engines it manufacturers in each regulatory category for a given model year.\n\n(3)  Regulatory subcategory standards.  The fuel consumption standards for truck tractors, except for vocational tractors, are given in the following table:\n\nTable 11\u2014Truck Tractor Fuel Consumption Standards\n\n[Gallons per 1,000 ton-miles]\n\n(4)  Subfamily standards.  Manufacturers may generate or use fuel consumption credits for averaging, banking, and trading as described in \u00a7 535.7(c). This requires that manufacturers calculate a credit quantity if they specify a Family Emission Limit (FEL) that is different than the standard specified in this section. The FEL may not be less than the result of emission and fuel consumption modeling from 40 CFR 1037.520. These FELs serve as the emission standards for the specific vehicle subfamily instead of the standards specified in paragraph (2) of this section.\n\n(5)  Alternate standards for tractors at or above 120,000 pounds GCWR.  Manufacturers may certify tractors at or above 120,000 pounds GCWR to the following fuel consumption standards in the following table:\n\nTable 12 to Paragraph  (c)(5) \u2014Alternate Fuel Consumption Standards for Tractors Above 120,000 Pounds GCWR for 2021 MY and Later\n\n[Gallons per 1,000 ton-miles]\n\n(6)  Advanced, innovative and off-cycle technologies.  For tractors subject to Phase 1 standards, manufacturers must create separate vehicle subfamilies for vehicles that contain advanced or innovative technologies and group those vehicles together in a vehicle subfamilies if they use the same advanced or innovative technologies. Manufacturers may generate separate credit allowances for advanced and innovative technologies as specified in \u00a7 535.7(f)(1) and (2). For vehicles subject to Phase 2 standards, manufacturers may generate separate credits allowance for off-cycle technologies in accordance with \u00a7 535.7(f)(2). Separate credit allowances for advanced technology vehicles cannot be generated but instead manufacturers may use the credit multipliers specified in \u00a7 535.7(f)(1)(iv) through model year 2026.\n\n(7)  Certifying across service classes.  Manufacturers may certify Class 7 tractors to Class 8 tractors standards as follows:\n\n(i) A manufacturer may optionally certify 4x2 tractors with heavy heavy-duty engines to the standards and useful life for Class 8 tractors, with no restriction on generating or using fuel consumption credits within the Class 8 averaging set.\n\n(ii) A manufacturer may optionally certify a Class 7 tractor to the standards and useful life applicable to Class 8 tractors. Credit provisions apply as follows:\n\n(A) If a manufacturer certifies all of its Class 7 tractors to Class 8 standards, it may use these Heavy HDV credits without restriction.\n\n(B) This paragraph (c)(7)(ii)(B) applies if a manufacturer certifies some Class 7 tractors to Class 8 standards under this paragraph (c)(7)(ii) but not all of them. If a manufacturer includes Class 7 tractors in a subfamily of Class 8 tractors with an FEL below the standard, exclude the production volume of Class 7 tractors from the credit calculation. Conversely, if a manufacturer includes Class 7 tractors in a subfamily of Class 8 tractors with an FEL above the standard, it must include the production volume of Class 7 tractors in the credit calculation.\n\n(8)  Expanded families.  Manufacturers may combine dissimilar vehicles into a single vehicle subfamilies for applying standards and for testing in special circumstances as follows:\n\n(i) For a Phase 1 vehicle model that straddles a roof-height, cab type, or GVWR division, manufacturers can include all the vehicles in the same vehicle family if it certifies the vehicle family to the more stringent standard. For roof height, the manufacturer must certify to the taller roof standard. For cab-type and GVWR, the manufacturers must certify to the numerically lower standard.\n\n(ii) For a Phase 2 vehicle model that includes a range of GVWR values that straddle weight classes, manufacturers may include all the vehicles in the same vehicle family if it certifies the vehicle family to the numerically lower fuel consumption standard from the affected service classes. Vehicles that are optionally certified to a more stringent standard under this paragraph are subject to useful-life and all other provisions corresponding to the weight class with the numerically lower fuel consumption standard. For a Phase 2 tractor model that includes a range of roof heights that straddle subcategories, a manufacturer may include all the vehicles in the same vehicle family if it certifies the vehicle family to the appropriate subcategory as follows:\n\n(A) A manufacturer may certify mid-roof tractors as high-roof tractors, but it may not certify high-roof tractors as mid-roof tractors.\n\n(B) For tractor families straddling the low-roof/mid-roof division, a manufacturer may certify the family based on the primary roof-height as long as no more than 10 percent of the tractors are certified to the otherwise inapplicable subcategory. For example, if 95 percent of the tractors in the family are less than 120 inches tall, and the other 5 percent are 122 inches tall, a manufacturer may certify the tractors as a single family in the low-roof subcategory.\n\n(C) Determine the appropriate aerodynamic bin number based on the actual roof height if the C d A value is measured. However, use the GEM input for the bin based on the standards to which the manufacturer certifies. For example, of a manufacturer certifies as mid roof tractors some low-roof tractors with a measured C d A value of 4.2 m\n 2 , it qualifies as Bin IV; and must input into GEM the mid-roof Bin IV value of 5.85 m\n 2 .\n\n(9)  Vocational tractors.  Tractors meeting the definition of vocational tractors in 49 CFR 523.2 must comply with requirements for heavy-duty vocational vehicles specified in paragraphs (b) and (d) of this section. For Phase 1, Class 7 and Class 8 tractors certified or exempted as vocational tractors are limited in production to no more than 21,000 vehicles in any three consecutive model years. If a manufacturer is determined as not applying this allowance in good faith by EPA in its applications for certification in accordance with 40 CFR 1037.205 and 1037.610, a manufacturer must comply with the tractor fuel consumption standards in paragraph (c)(3) of this section. No production limit applies for vocational tractors subject to Phase 2 standards.\n\n(10)  Small business manufacturers converting to mid roof or high roof configurations.  Small manufacturers are to allowed convert low and mid roof tractors to high roof configurations without recertification, provided it is for the purpose of building a custom sleeper tractor or conversion to a natural gas tractor as specified in 40 CFR 1037.150(r).\n\n(11)  Useful life.  The following useful life values apply for the standards of this section:\n\n(i) 185,000 miles or 10 years, whichever comes first, for vehicles at or below 33,000 pounds GVWR.\n\n(ii) 435,000 miles or 10 years, whichever comes first, for vehicles above 33,000 pounds GVWR.\n\n(12)  Conversion to high-roof configurations.  Secondary vehicle manufacturers that qualify as small manufacturers may convert low- and mid-roof tractors to high-roof configurations without recertification for the purpose of building a custom sleeper tractor or converting it to run on natural gas, as follows:\n\n(i) The original low- or mid-roof tractor must be covered by a valid certificate of conformity by EPA.\n\n(ii) The modifications may not increase the frontal area of the tractor beyond the frontal area of the equivalent high-roof tractor with the corresponding standard trailer. If a manufacturer cannot use the original manufacturer's roof fairing for the high-roof tractor, use good engineering judgment to achieve similar or better aerodynamic performance.\n\n(iii) The agencies may require that these manufacturers submit annual production reports as described in \u00a7 535.8 and 40 CFR 1037.250 indicating the original roof height for requalified vehicles.\n\n(13)  Compliance with standards.  A manufacturer complies with the standards of this part as described in \u00a7 535.10.\n\n(d)  Heavy-duty engines.  Each manufacturer of heavy-duty engines shall comply with the fuel consumption standards in this paragraph (d) of this section expressed in gallons per 100 horsepower-hour. When applying the fuel consumption standards in this paragraph (d), manufacturers must use the same options they use to comply with EPA in 40 CFR 1036.108 in terms of grouping engines for purposes of determining applicable standards and determining compliance ( i.e.,  the engines must be grouped in the same way for part 535.5(d) purposes as they are grouped for compliance with EPA's requirements in 40 CFR 1036.108). Each engine must be manufactured to comply for its full useful life, expressed in service miles, operating hours, or calendar years, whatever comes first. The provisions of this part apply to all new 2014 model year and later heavy-duty engines fueled by conventional and alternative fuels and manufactured for use in heavy-duty tractors or vocational vehicles. Standards apply to the engine and powertrain families and sub-families based upon the primary intended service classes within each of the engine regulatory subcategories as described in \u00a7 535.4 and based upon the applicable modeling and testing specified in \u00a7 535.6.\n\n(1)  Mandatory standards.  Manufacturers of heavy-duty engine families shall comply with the mandatory fuel consumption standards in paragraphs (d)(3) through (6) of this section for model years 2017 and later for compression-ignition engines and for model years 2016 and later for spark-ignition engines.\n\n(i) The heavy-duty engine regulatory category is divided into six regulatory subcategories, five compression-ignition subcategories and one spark-ignition subcategory, as shown in Table 14 of this section.\n\n(ii) Separate standards exist for engine families manufactured for use in heavy-duty vocational vehicles and in truck tractors.\n\n(iii) For purposes of certifying engines to fuel consumption standards, manufacturers must divide their product lines in each regulatory subcategory into engine families. Fuel consumption standards apply each model year to the same engine families used to comply with EPAstandards in 40 CFR 1036.108 and 40 CFR 1037.230. An engine family is designated under the EPA program based upon testing specified in 40 CFR part 1036, subpart F, and the engine family's primary intended service class. Each engine family manufactured for use in a heavy-duty tractor or vocational vehicle must be certified to the primary intended service class that it is designed for in accordance with 40 CFR 1036.108 and 1036.140.\n\n(2)  Voluntary compliance.  (i) For model years 2013 through 2016 for compression-ignition engine families, and for model year 2015 for spark-ignition engine families, a manufacturer may choose voluntarily to comply with the fuel consumption standards provided in paragraphs (d)(3) through (5) of this section. For example, a manufacturer may choose to comply early in order to begin accumulating credits through over-compliance with the applicable standards. A manufacturer choosing early compliance must comply with all the vehicles and engines it manufacturers in each regulatory category for a given model year except in model year 2013 the manufacturer may comply with individual engine families as specified in 40 CFR 1036.150(a)(2).\n\n(ii) A manufacturer must declare its intent to voluntarily comply with fuel consumption standards and identify its plans to comply before it submits its first application for a certificate of conformity for the respective model year as specified in \u00a7 535.8; and, once selected, the decision cannot be reversed and the manufacturer must continue to comply for each subsequent model year for all the vehicles and engines it manufacturers in each regulatory category for a given model year.\n\n(3)  Regulatory subcategory standards.  The primary fuel consumption standards for heavy-duty engine families are given in the following table:\n\nTable 13 to Paragraph ( d )(3)\u2014Primary Heavy-Duty Engine Fuel Consumption Standards\n\n[Gallons per 100 hp-hr]\n\n(4)  Alternate subcategory standards.  The alternative fuel consumption standards for heavy-duty compression-ignition engine families are as follows:\n\n(i) Manufacturers entering the voluntary program in model years 2014 through 2016, may choose to certify compression-ignition engine families unable to meet standards provided in paragraph (d)(3) of this section to the alternative fuel consumption standards of this paragraph (d)(4).\n\n(ii) Manufacturers may not certify engines to these alternate standards if they are part of an averaging set in which they carry a balance of banked credits. For purposes of this section, manufacturers are deemed to carry credits in an averaging set if they carry credits from advance technology that are allowed to be used in that averaging set in accordance with \u00a7 535.7(d)(12).\n\n(iii) The emission standards of this section are determined as specified by EPA in 40 CFR 1036.620(a) through (c) and should be converted to equivalent fuel consumption values.\n\n(5)  Alternate phase-in standards.  Manufacturers have the option to comply with EPA emissions standards for compression-ignition engine families using an alternative phase-in schedule that correlates with EPA's OBD standards. If a manufacturer chooses to use the alternative phase-in schedule for meeting EPA standards and optionally chooses to comply early with the NHTSA fuel consumption program, it must use the same phase-in schedule beginning in model year 2013 for fuel consumption standards and must remain in the program for each model year thereafter until model year 2020. The fuel consumption standard for each model year of the alternative phase-in schedule is provided in Table 15 of this section. Note that engine families certified to these standards are not eligible for early credits under \u00a7 535.7.\n\nTable 14\u2014Phase 1 Alternative Phase-In CI Engine Fuel Consumption Standards\n\n[Gallons per 100 hp-hr]\n\n\u2020  Note:  These alternate standards for 2016 and later are the same as the otherwise applicable standards for 2017 through 2020.\n\n(6)  Alternative fuel conversions.  Engines that have been converted to operate on alternative fuels may demonstrate compliance with the standards of this part or other alternative compliance approaches allowed by EPA in 40 CFR 85.525.\n\n(7)  Optional certification under this section.  Manufacturers certifying spark-ignition engines to the compression-ignition standards for EPA must treat those engines as compression-ignition engines for all the provisions of this part.\n\n(8)  Advanced, innovative and off-cycle technologies.  For engines subject to Phase 1 standards, manufacturers must create separate engine families for engines that contain advanced or innovative technologies and group those engines together in an engine family if they use the same advanced or innovative technologies. Manufacturers may generate separate credit allowances for advanced and innovative technologies as specified in \u00a7 535.7(f)(1) and (2). For engines subject to Phase 2 standards, manufacturers may generate separate credits allowance for off-cycle technologies in accordance with \u00a7 535.7(f)(2). Credit incentives for advanced technology engines do not apply during the Phase 2 period.\n\n(9)  Useful life.  The exhaust emission standards of this section apply for the full useful life, expressed in service miles, operating hours, or calendar years, whichever comes first. The following useful life values apply for the standards of this section:\n\n(i) 120,000 miles or 11 years, whichever comes first, for CI and SI LHD engines certified to Phase 1 standards.\n\n(ii) 150,000 miles or 15 years, whichever comes first, for CI and SI LHD and spark-ignition engines certified to Phase 2 standards.\n\n(iii) 185,000 miles or 10 years, whichever comes first, for CI MHD engines certified to Phase 1 and for Phase 2.\n\n(iv) 435,000 miles or 10 years, whichever comes first, for CI HHD engines certified to Phase 1 and for Phase 2.\n\n(v) For Phase 1 credits that manufacturers calculate based on a useful life of 110,000 miles, multiply any banked credits that it carries forward for use into the Phase 2 program by 1.36. For Phase 1 credit deficits that manufacturers generate based on a useful life of 110,000 miles multiply the credit deficit by 1.36, if offsetting the shortfall with Phase 2 credits.\n\n(10)  Loose engines.  This paragraph (10) describes alternate emission and fuel consumption standards for loose engines certified under. The standards of this paragraph (d) and 1036.108 do not apply for loose engines certified under paragraph (a) of this section and 40 CFR 86.1819-14(k)(8). The standards in 40 CFR 1036.150(j) apply for the emissions and equivalent fuel consumption measured with the engine installed in a complete vehicle consistent with the provisions of 40 CFR 86.1819-14(k)(8)(vi).\n\n(11)  Alternate transition option for Phase 2 engine standards.  (i) Manufacturers may optionally elect to comply with the model year 2021 primary (Phase 2) vocational vehicle and tractor engine standards in paragraph (d)(3) of this section beginning in model year 2020 ( e.g.  comply with the more stringent standards one year early). The model year 2021 standard would apply to these manufacturers for model years 2020 through 2023. Manufacturers that voluntarily certify their engines to model year 2021 standards early would then be eligible for less stringent engine tractor standards in model years 2024 through 2026, as follows:\n\n(A) 5.3241 gallons per 100 hp-hr for MHD vocational vehicle engines.\n\n(B) 4.5874 gallons per 100 hp-hr for MHD tractor engines.\n\n(C) 5.0098 gallons per 100 hp-hr for HHD vocational vehicle engines.\n\n(D) 4.3418 gallons per 100 hp-hr for HHD tractor engines.\n\n(ii) The primary standard in paragraph (d)(3) applies for all manufacturers in model year 2027 and later years.\n\n(iii) Manufacturers may apply these provisions separately for medium heavy-duty engines and heavy heavy-duty engines. This election applies to all engines in each segment. For example, if a manufacturer elects this alternate option for its medium heavy-duty engines, all of the manufacturer's medium heavy-duty vocational and tractor engines must comply. Engine fuel consumption credits generated under \u00a7 535.7(d) for manufacturers complying early with the model year 2021 standards follow the temporary extended credit life allowance in \u00a7 535.7(d)(9).\n\n(12)  Compliance with Standards.  A manufacturer complies with the standards of this part as described in \u00a7 535.10."], ["49:49:6.1.2.3.16.0.1.6", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.6 Measurement and calculation procedures.", "NHTSA", "", "", "[81 FR 74238, Oct. 25, 2016, as amended at 85 FR 25274, Apr. 30, 2020; 89 FR 18828, Mar. 15, 2024; 89 FR 52952, June 24, 2024]", "This part describes the measurement and calculation procedures manufacturers use to determine annual fuel consumption performance results. Manufacturers use the fuel consumption results determined in this part for calculating credit balances specified in \u00a7 535.7 and then determine whether they comply with standards as specified in \u00a7 535.10. Manufacturers must use EPA emissions test results for deriving NHTSA's fuel consumption performance rates. Consequently, manufacturers conducting testing for certification or annual demonstration testing and providing CO 2  emissions data to EPA must also provide equivalent fuel consumption results to NHTSA for all values. NHTSA and EPA reserve the right to verify separately or in coordination the results of any testing and measurement established by manufacturers in complying with the provisions of this program and as specified in 40 CFR 1037.301 and \u00a7 535.9. Any carry over data from the Phase 1 program may be carried into the Phase 2 only with approval from EPA and by using good engineering judgment considering differences in testing protocols between test procedures.\n\n(a)  Heavy-duty pickup trucks and vans.  This section describes the method for determining the fuel consumption performance rates for test groups and for fleets of complete heavy-duty pickup trucks and vans each model year. The NHTSA heavy-duty pickup truck and van fuel consumption performance rates correspond to the same requirements for EPA as specified in 40 CFR 86.1819-14.\n\n(1) For the Phase 1 program, if the manufacturer's fleet includes conventional vehicles (gasoline, diesel and alternative fueled vehicles) and advanced technology vehicles (hybrids with powertrain designs that include energy storage systems, vehicles with waste heat recovery, electric vehicles and fuel cell vehicles), it may divide its fleet into two separate fleets each with its own separate fleet average fuel consumption performance rate. For Phase 2 and later, manufacturers may calculate their fleet average fuel consumption rates for a conventional fleet and separate advanced technology vehicle fleets. Advanced technology vehicle fleets should be separated into plug-in hybrid electric vehicles, electric vehicles and fuel cell vehicles.\n\n(2) Vehicles in each fleet should be selected and divided into test groups or subconfigurations according to EPA in 40 CFR 86.1819-14(d).\n\n(3) Use the EPA CO 2  emissions test results for each test group, in grams per mile, for the selected vehicles.\n\n(i) Use CO 2  emissions test results for vehicles fueled by conventional and alternative fuels, including dedicated and dual-fueled (multi-fuel and flexible-fuel) vehicles using each fuel type as specified in 40 CFR 86.1819-14(d)(10).\n\n(ii) Use CO 2  emissions test results for dual-fueled vehicles using a weighted average of the manufacturer's emission results as specified in 40 CFR 600.510-12(k) for light-duty trucks.\n\n(iii) All electric vehicles are deemed to have zero emissions of CO 2 , CH 4 , and N 2 O. No emission testing is required for such electric vehicles. Assign the fuel consumption test group result to a value of zero gallons per 100 miles in paragraph (a)(4) of this section.\n\n(iv) Use CO 2  emissions test results for cab-complete and incomplete vehicles based upon the applicable complete sister vehicles as determined in 40 CFR 1819-14(j)(2).\n\n(v) Use CO 2  emissions test results for loose engines using applicable complete vehicles as determined in 40 CFR 86.1819-14(k)(8).\n\n(vi) Manufacturers can choose to analytically derive CO 2  emission rates (ADCs) for test groups or subconfigurations. Use ADCs for test groups or subconfigurations in accordance with 40 CFR 86.1819-14 (d) and (g).\n\n(4) Calculate equivalent fuel consumption results for all test groups, in gallons per 100 miles, from CO 2  emissions test group results, in grams per miles, and round to the nearest 0.001 gallon per 100 miles.\n\n(i) Calculate the equivalent fuel consumption test group results as follows for compression-ignition vehicles and alternative fuel compression-ignition vehicles. CO 2  emissions test group result (grams per mile)/10,180 grams per gallon of diesel fuel) \u00d7 (10\n 2 ) = Fuel consumption test group result (gallons per 100 mile).\n\n(ii) Calculate the equivalent fuel consumption test group results as follows for spark-ignition vehicles and alternative fuel spark-ignition vehicles. CO 2  emissions test group result (grams per mile)/((8,887 grams per gallon of gasoline fuel) \u00d7 (10 \u22122 )) = Fuel consumption test group result (gallons per 100 mile).\n\n(5) Calculate the fleet average fuel consumption result, in gallons per 100 miles, from the equivalent fuel consumption test group results and round the fuel consumption result to the nearest 0.001 gallon per 100 miles. Calculate the fleet average fuel consumption result using the following equation.\n\nWhere:\n \n Fuel Consumption Test Group Result i  = fuel consumption performance for each test group as defined in 49 CFR 523.4.\n \n Volume i  = production volume of each test group.\n\nWhere:\n\nFuel Consumption Test Group Result i  = fuel consumption performance for each test group as defined in 49 CFR 523.4.\n\nVolume i  = production volume of each test group.\n\n(6) Compare the fleet average fuel consumption standard to the fleet average fuel consumption performance. The fleet average fuel consumption performance must be less than or equal to the fleet fuel consumption standard to comply with standards in \u00a7 535.5(a).\n\n(b)  Heavy-duty vocational vehicles and tractors.  This section describes the method for determining the fuel consumption performance rates for vehicle families of heavy-duty vocational vehicles and tractors. The NHTSA heavy-duty vocational vehicle and tractor fuel consumption performance rates correspond to the same requirements for EPA as specified in 40 CFR 1037, subpart F.\n\n(1) Select vehicles and vehicle family configurations as specified in 40 CFR 1037.150 and 1037.230 for vehicles that make up each of the manufacturer's regulatory subcategories of vocational vehicles and tractors. For the Phase 2 program, select powertrain, axle and transmission families in accordance with 40 CFR 1037.231 and 1037.232.\n\n(2) Follow the EPA testing requirements in 40 CFR 1037.230 and 1037.501 to derive inputs for the Greenhouse gas Emissions Model (GEM).\n\n(3) Enter inputs into GEM, in accordance with 40 CFR 1037.520, to derive the emissions and fuel consumption performance results for all vehicles (conventional, alternative fueled and advanced technology vehicles).\n\n(4) For Phase 1 and 2, all of the following GEM inputs apply for vocational vehicles and other tractor regulatory subcategories, as follows:\n\n(i) Model year and regulatory subcategory (see \u00a7 535.3 and 40 CFR 1037.230).\n\n(ii) Coefficient of aerodynamic drag (C d A) or drag area, as described in 40 CFR 1037.520(b), 1037.525, 1037.527, and 1037.528. Alternatively, manufacturers may use C d A values as specified in 40 CFR 1037.530, 1037.532, or 1037.534 if used for determining CO 2  compliance for EPA. Manufacturers must use the same compliance approach for determining C d A values in GEM for the NHTSA and EPA programs.\n\n(iii) Steer and drive tire rolling resistance, as described in 40 CFR 1037.520(c).\n\n(iv) Vehicle speed limit, as described in 40 CFR 1037.520(d) (tractors only).\n\n(v) Vehicle weight reduction, as described in 40 CFR 1037.520(e) (tractors only for Phase 1).\n\n(vi) Automatic engine shutdown systems, as described in 40 CFR 1037.660 (only for Phase 1 Class 8 sleeper cabs). For Phase 1, enter a GEM input value of 5.0 g/ton-mile, or an adjusted value as specified in 40 CFR 1037.660.\n\n(5) For Phase 2 vehicles, the GEM inputs described in paragraphs (b)(4)(i) through (v) of this section continue to apply. Note that the provisions related to vehicle speed limiters and automatic engine shutdown systems are available for vocational vehicles in Phase 2. The additional GEM inputs that apply for vocational vehicles and other tractor regulatory subcategories for demonstrating compliance with Phase 2 standards are as follows:\n\n(i)  Engine characteristics.  Enter information from the engine manufacturer to describe the installed engine and its operating parameters as described in 40 CFR 1036.503 and 1037.520(f).\n\n(ii)  Vehicle information.  Enter information in accordance with 40 CFR 1037.520(g) for the vehicle and its operating parameters including:\n\n(A) Transmission make, model and type;\n\n(B) Drive axle configuration;\n\n(C) Drive axle ratio,  k a ;\n\n(D) GEM inputs associated with powertrain testing include powertrain family, transmission calibration identifier, test data from 40 CFR 1037.550, and the powertrain test configuration (dynamometer connected to transmission output or wheel hub).\n\n(iii)  Idle-reduction technologies.  Identify whether the manufacturer's vehicle has qualifying idle-reduction technologies, subject to the qualifying criteria in 40 and 1037.660 and enter values for stop start and neutral idle technologies as specified in 40 CFR 1037.520(h).\n\n(iv)  Axle and transmission efficiency.  Manufacturers may use axle efficiency maps as described in 40 CFR 1037.560 and transmission efficiency maps as described in 40 CFR 1037.565 to replace the default values in GEM.\n\n(v)  Additional reduction technologies.  Enter input values in GEM as follows to characterize the percentage CO 2  emission reduction corresponding to certain technologies and vehicle configurations, or enter 0 as specified in 40 CFR 1037.520(j):\n\n(A) Intelligent controls\n\n(B) Accessory load\n\n(C) Tire-pressure systems\n\n(D) Extended-idle reduction\n\n(E) Additional GEM inputs may apply as follows:\n\n( 1 ) Enter 1.7 and 0.9, respectively, for school buses and coach buses that have at least seven available forward gears.\n\n( 2 ) If the agencies approve an off-cycle technology under \u00a7 535.7(f) and 40 CFR 1037.610 in the form of an improvement factor, enter the improvement factor expressed as a percentage reduction in CO 2  emissions. (Note: In the case of approved off-cycle technologies whose benefit is quantified as a g/ton-mile credit, apply the credit to the GEM result, not as a GEM input value.)\n\n( 3 ) Manufacturers may use values to characterize torque converters as inputs to GEM as specified in the procedure defined in 40 CFR 1037.570.\n\n( 4 ) Vocational vehicle manufacturers may optionally use values for neutral coasting in GEM as specified in 40 CFR 1037.520.\n\n(vi)  Vehicles with hybrid power take-off (PTO).  For vocational vehicles, determine the delta PTO emission result of the manufacturer's engine and hybrid power take-off system as described in 40 CFR 1037.540.\n\n(vii)  Aerodynamic improvements for vocational vehicles.  For vocational vehicles certified using the Regional duty cycle, enter  \u0394C d A  values to account for using rear fairings and a reduced minimum frontal area as specified in 40 CFR 1037.520(m) and 1037.527.\n\n(viii)  Alternate fuels.  For fuels other than those identified in GEM, perform the simulation by identifying the vehicle as being diesel-fueled if the engine is subject to the compression-ignition standard, or as being gasoline-fueled if the engine is subject to the spark-ignition standards. Correct the engine or powertrain fuel map for mass-specific net energy content as described in 40 CFR 1036.535(b).\n\n(ix)  Custom chassis vehicles.  A simplified versions of GEM applies for custom chassis vehicle subject \u00a7 535.5(b)(6) in accordance with 40 CFR 1037.520(a)(2)(ii).\n\n(6) In unusual circumstances, manufacturers may ask EPA to use weighted average results of multiple GEM runs to represent special technologies for which no single GEM run can accurately reflect.\n\n(7) From the GEM results, select the CO 2  family emissions level (FEL) and equivalent fuel consumption values for vocational vehicle and tractor families in each regulatory subcategory for each model year. Equivalent fuel consumption FELs are derived in GEM and expressed to the nearest 0.0001 gallons per 1000 ton-mile. For families containing multiple subfamilies, identify the FELs for each subfamily.\n\n(c) [Reserved]\n\n(d)  Heavy-duty engines.  This section describes the method for determining equivalent fuel consumption family certification level (FCL) values for engine and powertrain families and subfamilies of heavy-duty truck tractors and vocational vehicles. The NHTSA heavy-duty engine fuel consumption FCLs are determined from the EPA FCLs tested in accordance with 40 CFR part 1036, subpart F. Each engine and powertrain family must use the same primary intended service class as designated for EPA in accordance with 40 CFR 1036.140.\n\n(1) Manufacturers must select emission-data engines representing the tested configuration of each engine family specified in 40 CFR 1036.501 for engines in heavy-duty truck tractors and vocational vehicles that make up each of the manufacturer's regulatory subcategories.\n\n(2) Standards in \u00a7 535.5(d) apply to the CO2 emissions rates for each emissions-data engine in an engine or powertrain family or sub-family subject to the procedures and equipment specified in 40 CFR part 1036, subpart F. Determine equivalent fuel consumptions rates using CO2 emissions rates in grams per hp-hr measured to at least one more decimal place than that of the applicable EPA standard in 40 CFR 1036.108.\n\n(i) Use the CO 2  emissions test results for engines running on each fuel type for conventional, dedicated, multi-fueled (dual-fuel, and flexible-fuel) engines as specified in 40 CFR part 1036, subpart F.\n\n(ii) Use the CO 2  emissions result for multi-fueled engines using the same weighted fuel mixture emission results as specified in 40 CFR 1036.235 and 40 CFR part 1036, subpart F.\n\n(iii) Use the CO 2  emissions test results for hybrid engines as described in 40 CFR 1036.525.\n\n(iv) All electric vehicles are deemed to have zero emissions of CO 2  and zero fuel consumption. No emission or fuel consumption testing is required for such electric vehicles.\n\n(3) For medium HD and heavy HD engines certified as tractor and other long-haul engine families, use the CO2 emissions test results from the steady-state duty cycle, which is referred to as the Supplemental Emission Test (SET), as specified in 40 CFR 1036.510 for each model year; for medium HD and heavy HD engines certified as tractor and vocational engine families, use the CO2 test results from the transient duty cycle, which is referred to as the Federal Test Procedure (FTP) duty cycle, as specified in 40 CFR 1036.512 for each model year; for all other engines (including those certifying to SI standards) use the CO2 emissions test results from the appropriate duty cycle, as specified in 40 CFR 1036.501 for each model year.\n\n(i) If a manufacturer certifies an engine family for use both as a vocational engine and as a tractor engine, the manufacturer must split the family into two separate subfamilies in accordance with 40 CFR 1036.230. The manufacturer may assign the numbers and configurations of engines within the respective subfamilies at any time prior to the submission of the end-of-year report required by 40 CFR 1036.730 and \u00a7 535.8. The manufacturer must track into which type of vehicle each engine is installed, although EPA may allow the manufacturer to use statistical methods to determine this for a fraction of its engines.\n\n(ii) The following engines are excluded from the engine and powertrain families and subfamilies used to determine fuel consumption FCL values and the benefit for these engines is determined as an advanced technology credit under the ABT provisions provided in \u00a7 535.7(e); these provisions apply only for the Phase 1 program:\n\n(A) Engines certified as hybrid engines or power packs.\n\n(B) Engines certified as hybrid engines designed with PTO capability and that are sold with the engine coupled to a transmission.\n\n(C) Engines with Rankine cycle waste heat recovery.\n\n(4) Manufacturers generating CO 2  emissions rates to demonstrate compliance to EPA vehicle standards for model years 2021 and later, using engine fuel maps determined in accordance with 40 CFR 1036.535 and 1036.540 or engine powertrain results configuration, must use the same compliance pathway and model years for certifying under the NHTSA program. Manufacturers may omit providing equivalent fuel consumption FCLs under this section if all of its engines will be installed in vehicles that are certified based on powertrain testing as described in 40 CFR 1037.550.\n\n(5) Calculate equivalent fuel consumption values from the emissions CO 2  FCLs levels for certified engines, in gallons per 100 hp-hr and round each fuel consumption value to the nearest 0.0001 gallon per 100 hp-hr.\n\n(i) Calculate equivalent fuel consumption FCL values for compression-ignition engines and alternative fuel compression-ignition engines. CO 2  FCL value (grams per hp-hr)/10,180 grams per gallon of diesel fuel) \u00d7 (10\n 2 ) = Fuel consumption FCL value (gallons per 100 hp-hr).\n\n(ii) Calculate equivalent fuel consumption FCL values for spark-ignition engines and alternative fuel spark-ignition engines. CO 2  FCL value (grams per hp-hr)/((8,887 grams per gallon of gasoline fuel) \u00d7 (10 \u22122 )) = Fuel consumption FCL value (gallons per 100 hp-hr).\n\n(iii) Manufacturers may carryover fuel consumption data from a previous model year if allowed to carry over emissions data for EPA in accordance with 40 CFR 1036.235.\n\n(iv) If a manufacturer uses an alternate test procedure under 40 CFR 1065.10 and subsequently the data is rejected by EPA, NHTSA will also reject the data."], ["49:49:6.1.2.3.16.0.1.7", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.7 Averaging, banking, and trading (ABT) credit program.", "NHTSA", "", "", "[81 FR 74238, Oct. 25, 2016, as amended at 85 FR 25274, Apr. 30, 2020; 89 FR 18829, Mar. 15, 2024; 89 FR 52952, June 24, 2024]", "(a)  General provisions.  After the end of each model year, manufacturers must comply with the fuel consumption standards in \u00a7 535.5 for averaging, banking and trading credits. Manufacturers comply with standards if the sum of averaged, banked and traded credits generate a \u201czero\u201d credit balance or a credit surplus within an averaging set of vehicles or engines. Manufacturers fail to comply with standards if the sum of the credit flexibilities generate a credit deficit (or shortfall) in an averaging set. Credit shortfalls must be offset by banked or traded credits within three model years after the shortfall is incurred. These processes are hereafter referenced as the NHTSA ABT credit program. The following provisions apply to all fuel consumption credits.\n\n(1)  Credits (or fuel consumption credits (FCCs)).  Credits in this part mean a calculated weighted value representing the difference between the fuel consumption performance and the standard of a vehicle or engine family or fleet within a particular averaging set. Positive credits represent cases where a vehicle or engine family or fleets perform better than the applicable standard (the fuel consumption performance is less than the standard) whereas negative credits represent underperforming cases. The value of a credit is calculated according to paragraphs (b) through (e) of this section. FCCs are only considered earned or useable for averaging, banking or trading after EPA and NHTSA have verified the information in a manufacturer's final reports required in \u00a7 535.8. Types of FCCs include the following:\n\n(i)  Conventional credits.  Credits generated by vehicle or engine families or fleets containing conventional vehicles ( i.e.,  gasoline, diesel and alternative fueled vehicles).\n\n(ii)  Early credits.  Credits generated by vehicle or engine families or fleets produced for model year 2013. Early credits are multiplied by an incentive factor of 1.5 times.\n\n(iii)  Advanced technology credits.  Credits generated by vehicle or engine families or subconfigurations containing vehicles with advanced technologies ( i.e.,  hybrids with regenerative braking, vehicles equipped with Rankine-cycle engines, electric and fuel cell vehicles) as described in paragraph (f)(1) of this section.\n\n(iv)  Innovative and off-cycle technology credits.  Credits can be generated by vehicle or engine families or subconfigurations having fuel consumption reductions resulting from technologies not reflected in the GEM simulation tool or in the Federal Test Procedure (FTP) chassis dynamometer and that were not in common use with heavy-duty vehicles or engines before model year 2010 that are not reflected in the specified test procedure. Manufacturers should prove that these technologies were not in common use in heavy-duty vehicles or engines before model year 2010 by demonstrating factors such as the penetration rates of the technology in the market. NHTSA will not approve any request if it determines that these technologies do not qualify. The approach for determining innovative and off-cycle technology credits under this fuel consumption program is described in paragraph (f)(2) of this section and by the Environmental Protection Agency (EPA) under 40 CFR 86.1819-14(d)(13), 1036.610, and 1037.610. Starting in model year 2030, manufacturers certifying vehicles under \u00a7 535.5(a) may not earn off-cycle technology credits under 40 CFR 86.1819-14(d)(13).\n\n(2)  Averaging.  Averaging is the summing of a manufacturer's positive and negative FCCs for engines or vehicle families or fleets within an averaging set. The principle averaging sets are defined in \u00a7 535.4.\n\n(i) A credit surplus occurs when the net sum of the manufacturer's generated credits for engines or vehicle families or fleets within an averaging set is positive (a zero credit balance is when the sum equals zero).\n\n(ii) A credit deficit occurs when the net sum of the manufacturer's generated credits for engines or vehicle families or fleets within an averaging set is negative.\n\n(iii) Positive credits, other than advanced technology credits in Phase 1, generated and calculated within an averaging set may only be used to offset negative credits within the same averaging set.\n\n(iv) Manufacturers may certify one or more vehicle families (or subfamilies) to an FEL above the applicable fuel consumption standard, subject to any applicable FEL caps and other provisions allowed by EPA in 40 CFR parts 1036 and 1037, if the manufacturer shows in its application for certification to EPA that its projected balance of all FCC transactions in that model year is greater than or equal to zero or that a negative balance is allowed by EPA under 40 CFR 1036.745 and 1037.745.\n\n(v) If a manufacturer certifies a vehicle family to an FEL that exceeds the otherwise applicable standard, it must obtain enough FCC to offset the vehicle family's deficit by the due date of its final report required in \u00a7 535.8. The emission credits used to address the deficit may come from other vehicle families that generate FCCs in the same model year (or from the next three subsequent model years), from banked FCCs from previous model years, or from FCCs generated in the same or previous model years that it obtained through trading.\n\n(vi) Manufacturers may certify a vehicle or engine family using an FEL (as described in \u00a7 535.6) below the fuel consumption standard (as described in \u00a7 535.5) and choose not to generate conventional fuel consumption credits for that family. Manufacturers do not need to calculate fuel consumption credits for those families and do not need to submit or keep the associated records described in \u00a7 535.8 for these families. Manufacturers participating in NHTSA's FCC program must provide reports as specified in \u00a7 535.8.\n\n(3)  Banking.  Banking is the retention of surplus FCC in an averaging set by the manufacturer for use in future model years for the purpose of averaging or trading.\n\n(i) Surplus credits may be banked by the manufacturer for use in future model years, or traded, given the restriction that the credits have an expiration date of five model years after the year in which the credits are generated. For example, banked credits earned in model year 2014 may be utilized through model year 2019. Surplus credits will become banked credits unless a manufacturer contacts NHTSA to expire its credits.\n\n(ii) Surplus credits become earned or usable banked FCCs when the manufacturer's final report is approved by both agencies. However, the agencies may revoke these FCCs at any time if they are unable to verify them after reviewing the manufacturer's reports or auditing its records.\n\n(iii) Banked FCC retain the designation from the averaging set and model year in which they were generated.\n\n(iv) Banked credits retain the designation of the averaging set in which they were generated.\n\n(4)  Trading.  Trading is a transaction that transfers banked family regulatory subcategory or averaging set fuel consumption credits. Tractor, vocational vehicle and engine manufacturers may trade credits generated for vehicle or engine families or subfamilies while manufacturers of heavy-duty pickup trucks and vans certified as complete vehicles may trade credit credits generated for averaging sets. A manufacturer may use traded FCCs for averaging, banking, or further trading transactions.\n\n(i) Manufacturers may only trade banked credits to other manufacturers to use for compliance with fuel consumption standards. Traded FCCs, other than advanced technology credits earned in Phase 1, may be used only within the averaging set in which they were generated. Manufacturers may only trade credits to other entities for the purpose of expiring credits.\n\n(ii) Advanced technology credits earned in Phase 1 can be traded across different averaging sets.\n\n(iii) The agencies may revoke traded FCCs at any time if they are unable to verify them after reviewing the manufacturer's reports or auditing its records.\n\n(iv) If a negative FCC balance results from a transaction, both the buyer and seller are liable, except in cases the agencies deem to involve fraud. See \u00a7 535.9 for cases involving fraud. EPA also may void the certificates of all vehicle families participating in a trade that results in a manufacturer having a negative balance of emission credits. See 40 CFR 1037.745.\n\n(v) [Reserved]\n\n(vi) Manufacturers with deficits or projecting deficits before or during a production model year may not trade credits until its available credits exceed the deficit. Manufacturers with a deficit may not trade credits if the deadline to offset that credit deficit has passed.\n\n(5)  Credit deficit (or credit shortfall).  A credit shortfall or deficit occurs when the sum of the manufacturer's generated credits for engines or vehicle families or fleets within an averaging set is negative. Credit shortfalls must be offset by an available credit surplus within three model years after the shortfall was incurred. If the shortfall cannot be offset, the manufacturer is liable for civil penalties as discussed in \u00a7 535.9.\n\n(6)  FCC credit plan.  (i) Each model year manufacturers submit credit plan in their certificates of conformity as required in 40 CFR 1036.725(b)(2) and 40 CFR 1037.725(b)(2). The plan is required to contain equivalent fuel consumption information in accordance \u00a7 535.8(c). The plan must include:\n\n(A) Detailed calculations of projected emission and fuel consumption credits (positive or negative) based on projected U.S.-directed production volumes. The agencies may require a manufacturer to include similar calculations from its other engine or vehicle families to project its net credit balances for the model year. If a manufacturer projects negative emission and/or fuel consumption credits for a family, it must state the source of positive emission and/or fuel consumption credits it expects to use to offset the negative credits demonstrating how it plans to resolve any credit deficits that might occur for a model year within a period of up to three model years after that deficit has occurred.\n\n(B) Actual emissions and fuel consumption credit balances, credit transactions, and credit trades.\n\n(ii) Manufacturers are required to provide updated credit plans after receiving their final verified reports from EPA and NHTSA after the end of each model year.\n\n(iii) The agencies may determine that a manufacturer's plan is unreasonable or unrealistic based on a consideration of past and projected use of specific technologies, the historical sales mix of its vehicle models, subsequent failure to follow any submitted plans, and limited expected access to traded credits.\n\n(iv) The agencies may also consider the plan unreasonable if the manufacturer's credit deficit increases from one model year to the next. The agencies may require that the manufacturers must send interim reports describing its progress toward resolving its credit deficit over the course of a model year.\n\n(v) If NHTSA determines that a manufacturers plan is unreasonable or unrealistic, the manufacturer is deemed as not comply with fuel consumption standards as specified in \u00a7 535.10(c) and the manufacturer may be liable for civil penalties.\n\n(7)  Revoked credits.  NHTSA may revoke fuel consumption credits if unable to verify any information after auditing reports or records or conducting confirmatory testing. In the cases where EPA revokes emissions CO 2  credits, NHTSA will revoke the equivalent amount of fuel consumption credits.\n\n(8)  Transition to Phase 2 standards.  The following provisions allow for enhanced use of fuel consumption credits from Phase 1 tractors and vocational vehicles for meeting the Phase 2 standards:\n\n(i) Fuel consumption credits a manufacturer generates for light and medium heavy-duty vocational vehicles in model years 2018 through 2021 may be used through model year 2027, instead of being limited to a five-year credit life as specified in this part. Fuel consumption credits that small manufacturers generate for heavy heavy-duty vocational vehicles in model years 2018 through may be used through model year 2027, instead of being limited to a five-year credit life as specified in this part. Fuel consumption credits that a small manufacturer generates for vocational vehicles in model year 2022 that are certified to Phase 1 standards as permitted under \u00a7 535.3(e)(2)(ii)(B) may be used through model year 2027.\n\n(ii) The manufacturer may use the off-cycle provisions of paragraph (f) of this section to apply technologies to Phase 1 vehicles as follows:\n\n(A) A manufacturer may apply an improvement factor of 0.988 for tractors and vocational vehicles with automatic tire inflation systems on all axles.\n\n(B) For vocational vehicles with automatic engine shutdown systems that conform with 40 CFR 1037.660, a manufacturer may apply an improvement factor of 0.95.\n\n(C) For vocational vehicles with stop-start systems that conform with 40 CFR 1037.660, a manufacturer may apply an improvement factor of 0.92.\n\n(D) For vocational vehicles with neutral-idle systems conforming with 40 CFR 1037.660, manufacturers may apply an improvement factor of 0.98. Manufacturers may adjust this improvement factor if we approve a partial reduction under 40 CFR 1037.660(a)(2); for example, if the manufacturer's design reduces fuel consumption by half as much as shifting to neutral, it may apply an improvement factor of 0.99.\n\n(9)  Credits for small business manufacturers.  Small manufacturers may generate fuel consumption credits for natural gas-fueled vocational vehicles as follows:\n\n(i) Small manufacturers may certify their vehicles instead of relying on the exemption of \u00a7 535.3.\n\n(ii) Use Phase 1 GEM to determine a fuel consumption level for vehicle, then multiply this value by the engine's FCL for fuel consumption and divide by the engine's applicable fuel consumption standard.\n\n(iii) Use the value determined in paragraph (ii) in the credit equation specified in part (c) of this section in place of the term (Std \u2212 FEL).\n\n(iv) The following provisions apply uniquely to small businesses under the custom-chassis standards of \u00a7 535.5(b)(6):\n\n(A) Manufacturers may use fuel consumption credits generated under paragraph (c) of this section, including banked or traded credits from any averaging set. Such credits remain subject to other limitations that apply under this part.\n\n(B) Manufacturers may produce up to 200 drayage tractors in a given model year to the standards described in \u00a7 535.5(b)(6) for \u201cother buses\u201d. Treat these drayage tractors as being in their own averaging set. This limit applies with respect to vehicles produced by manufacturers within a control relationship as defined \u00a7 534.3.\n\n(10)  Certifying non-gasoline engines.  A manufacturer producing non-gasoline engines complying with model year 2021 or later medium heavy-duty spark-ignition standards may not generate fuel consumption credits. Only manufacturers producing gasoline engines certifying to spark-ignition standards can generate fuel consumption credits under paragraph (d) of this part.\n\n(11) Fuel consumption credits may not be generated more than once. This means that fuel consumption credits may only be generated once for a given engine or vehicle and fuel consumption credits may not be generated for both a given engine and the vehicle in which the engine is installed. For example, if a manufacturer generates fuel consumption credits for a given hybrid vehicle under this part, no one may generate fuel consumption credits for the associated hybrid engine. This provision, however, does not prevent manufacturers from generating fuel consumption credits for engines that are identical to the given engine in the example if those engines are installed in vehicles for which fuel consumption credits are not generated. This provision does not impact any adjustment factor or multiplier that is applied to the fuel consumption credits as specified or permitted by this part.\n\n(b)  ABT provisions for heavy-duty pickup trucks and vans.  (1) Calculate fuel consumption credits in a model year for one fleet of conventional heavy-duty pickup trucks and vans and if designated by the manufacturer another consisting of advance technology vehicles for the averaging set as defined in \u00a7 535.4. Calculate credits for each fleet separately using the following equation:\n\nTotal MY Fleet FCC (gallons) =(Std\u2212Act) \u00d7 (Volume) \u00d7 (UL) \u00d7 (10\n 2 )\n\nWhere:\n \n Std = Fleet average fuel consumption standard (gal/100 mile).\n \n Act = Fleet average actual fuel consumption value (gal/100 mile).\n \n Volume = the total U.S.-directed production of vehicles in the regulatory subcategory.\n \n UL = the useful life for the regulatory subcategory. The useful life value for heavy- pickup trucks and vans manufactured for model years 2013 through 2020 is equal to the 120,000 miles. The useful life for model years 2021 and later is equal to 150,000 miles.\n\nWhere:\n\nStd = Fleet average fuel consumption standard (gal/100 mile).\n\nAct = Fleet average actual fuel consumption value (gal/100 mile).\n\nVolume = the total U.S.-directed production of vehicles in the regulatory subcategory.\n\nUL = the useful life for the regulatory subcategory. The useful life value for heavy- pickup trucks and vans manufactured for model years 2013 through 2020 is equal to the 120,000 miles. The useful life for model years 2021 and later is equal to 150,000 miles.\n\n(2) Adjust the fuel consumption performance of subconfigurations with advanced technology for determining the fleet average actual fuel consumption value as specified in paragraph (f)(1) of this section and 40 CFR 86.1819-14(d)(6)(iii). Advanced technology vehicles can be separated in a different fleet for the purpose of applying credit incentives as described in paragraph (f)(1) of this section.\n\n(3) Adjust the fuel consumption performance for subconfigurations with innovative technology. A manufacturer is eligible to increase the fuel consumption performance of heavy-duty pickup trucks and vans in accordance with procedures established by EPA set forth in 40 CFR part 600. The eligibility of a manufacturer to increase its fuel consumption performance through use of an off-cycle technology requires an application request made to EPA and NHTSA in accordance with 40 CFR 86.1869-12 and an approval granted by the agencies. For off-cycle technologies that are covered under 40 CFR 86.1869-12, NHTSA will collaborate with EPA regarding NHTSA's evaluation of the specific off-cycle technology to ensure its impact on fuel consumption and the suitability of using the off-cycle technology to adjust fuel consumption performance. NHTSA will provide its views on the suitability of the technology for that purpose to EPA. NHTSA will apply the criteria in section (f) of this section in granting or denying off-cycle requests.\n\n(4) Fuel consumption credits may be generated for vehicles certified in model year 2013 to the model year 2014 standards in \u00a7 535.5(a). If a manufacturer chooses to generate CO 2  emission credits under EPA's provisions in 40 CFR part 86, it may also voluntarily generate early credits under the NHTSA fuel consumption program. To do so, a manufacturer must certify its entire U.S.-directed production volume of vehicles in its fleet. The same production volume restrictions specified in 40 CFR 1037.150(a)(2) relating to when test groups are certified apply to the NHTSA early credit provisions. Credits are calculated as specified in paragraph (b)(3) of this section relative to the fleet standard that would apply for model year 2014 using the model year 2013 production volumes. Surplus credits generated under this paragraph (b)(4) are available for banking or trading. Credit deficits for an averaging set prior to model year 2014 do not carry over to model year 2014. These credits may be used to show compliance with the standards of this part for 2014 and later model years. Once a manufacturer opts into the NHTSA program they must stay in the program for all of the optional model years and remain standardized with the same implementation approach being followed to meet the EPA CO 2  emission program.\n\n(5) Calculate the averaging set credit value by summing together the fleet credits for conventional and advanced technology vehicles including any adjustments for innovative technologies. Manufacturers may sum conventional and innovative technology credits before adding any advanced technology credits in each averaging set.\n\n(6) For credits that manufacturers calculate based on a useful life of 120,000 miles, multiply any banked credits carried forward for use in model year 2021 and later by 1.25. For credit deficits that a manufacturer calculates based on a useful life of 120,000 miles and that it offsets with credits originally earned in model year 2021 and later, it multiplies the credit deficit by 1.25.\n\n(c)  ABT provisions for vocational vehicles and tractors.  (1) Calculate the fuel consumption credits in a model year for each participating family or subfamily consisting of conventional vehicles in each averaging set (as defined in \u00a7 535.4) using the equation in this section. Each designated vehicle family or subfamily has a \u201cfamily emissions limit\u201d (FEL) that is compared to the associated regulatory subcategory standard. An FEL that falls below the regulatory subcategory standard creates \u201cpositive credits,\u201d while fuel consumption level of a family group above the standard creates a \u201cnegative credits.\u201d The value of credits generated for each family or subfamily in a model year is calculated as follows and must be rounded to nearest whole number:\n\nVehicle Family FCC (gallons) =(Std\u2212FEL) \u00d7 (Payload) \u00d7 (Volume) \u00d7 (UL) \u00d7 (10\n 3 )\n \n Where:\n \n Std = the standard for the respective vehicle family regulatory subcategory (gal/1,000 ton-mile).\n \n FEL = family emissions limit for the vehicle family (gal/1,000 ton-mile).\n \n Payload = the prescribed payload in tons for each regulatory subcategory as shown in the following table:\n\nVehicle Family FCC (gallons) =(Std\u2212FEL) \u00d7 (Payload) \u00d7 (Volume) \u00d7 (UL) \u00d7 (10\n 3 )\n\nWhere:\n\nStd = the standard for the respective vehicle family regulatory subcategory (gal/1,000 ton-mile).\n\nFEL = family emissions limit for the vehicle family (gal/1,000 ton-mile).\n\nPayload = the prescribed payload in tons for each regulatory subcategory as shown in the following table:\n\nTable 1 to Paragraph  (c)(1)  Introductory Text\n\nVolume = the number of U.S.-directed production volume of vehicles in the corresponding vehicle family.\n \n UL = the useful life for the regulatory subcategory (miles) as shown in the following table:\n\nVolume = the number of U.S.-directed production volume of vehicles in the corresponding vehicle family.\n\nUL = the useful life for the regulatory subcategory (miles) as shown in the following table:\n\nTable 2 to Paragraph  (c)(1)  Introductory Text\n\n(i) Calculate the value of credits generated in a model year for each family or subfamily consisting of vehicles with advanced technology vehicles in each averaging set using the equation above and the guidelines provided in paragraph (f)(1) of this section. Manufacturers may generate credits for advanced technology vehicles using incentives specified in paragraph (f)(1) of this section.\n\n(ii) Calculate the value of credits generated in a model year for each family or subfamily consisting of vehicles with off-cycle technology vehicles in each averaging set using the equation above and the guidelines provided in paragraph (f)(2) of this section.\n\n(2) Manufacturers must sum all negative and positive credits for each vehicle family within each applicable averaging set to obtain the total credit balance for the model year before rounding. The sum of fuel consumptions credits must be rounded to the nearest gallon. Calculate the total credits generated in a model year for each averaging set using the following equation:\n\nTotal averaging set MY credits = \u03a3 Vehicle family credits within each averaging set\n\n(3) Manufacturers can sum conventional and innovative technology credits before adding any advanced technology credits in each averaging set.\n\n(4) If a manufacturer chooses to generate CO 2  emission credits under EPA provisions of 40 CFR 1037.150(a), it may also voluntarily generate early credits under the NHTSA fuel consumption program as follows:\n\n(i) Fuel consumption credits may be generated for vehicles certified in model year 2013 to the model year 2014 standards in \u00a7 535.5(b) and (c). To do so, a manufacturer must certify its entire U.S.-directed production volume of vehicles. The same production volume restrictions specified in 40 CFR 1037.150(a)(1) relating to when test groups are certified apply to the NHTSA early credit provisions. Credits are calculated as specified in paragraph (c)(11) of this section relative to the standards that would apply for model year 2014. Surplus credits generated under this paragraph (c)(4) may be increased by a factor of 1.5 for determining total available credits for banking or trading. For example, if a manufacturer has 10 gallons of surplus credits for model year 2013, it may bank 15 gallons of credits. Credit deficits for an averaging set prior to model year 2014 do not carry over to model year 2014. These credits may be used to show compliance with the standards of this part for 2014 and later model years. Once a manufacturer opts into the NHTSA program they must stay in the program for all of the optional model years and remain standardized with the same implementation approach being followed to meet the EPA CO 2  emission program.\n\n(ii) A tractor manufacturer may generate fuel consumption credits for the number of additional SmartWay designated tractors (relative to its MY 2012 production), provided that credits are not generated for those vehicles under paragraph (c)(4)(i) of this section. Calculate credits for each regulatory sub-category relative to the standard that would apply in model year 2014 using the equations in paragraph (c)(2) of this section. Use a production volume equal to the number of verified model year 2013 SmartWay tractors minus the number of verified model year 2012 SmartWay tractors. A manufacturer may bank credits equal to the surplus credits generated under this paragraph multiplied by 1.50. A manufacturer's 2012 and 2013 model years must be equivalent in length. Once a manufacturer opts into the NHTSA program they must stay in the program for all of the optional model years and remain standardized with the same implementation approach being followed to meet the EPA CO 2  emission program.\n\n(5) If a manufacturer generates credits from vehicles certified for advanced technology in accordance with paragraph (e)(1) of this section, a multiplier of 1.5 can be used, but this multiplier cannot be used on the same credits for which the early credit multiplier is used.\n\n(6) For model years 2012 and later, manufacturers may generate or use fuel consumption credits for averaging to demonstrate compliance with the alternative standards as described in \u00a7 535.5(b)(6) of this part. Manufacturers can specify a Family Emission Limit (FEL) for fuel consumption for each vehicle subfamily. The FEL may not be less than the result of emissions and fuel consumption modeling as described in 40 CFR 1037.520 and \u00a7 535.6. These FELs serve as the fuel consumption standards for the vehicle subfamily instead of the standards specified in this \u00a7 535.5(b)(6). Manufacturers may not use averaging for motor homes, coach buses, emergency vehicles or concrete mixers meeting standards under \u00a7 535.5(b)(5).\n\n(7) Manufacturers may not use averaging for vehicles meeting standards \u00a7 535.5(b)(6)(iv) through (vi), and manufacturers may not use fuel consumption credits for banking or trading for any vehicles certified under \u00a7 535.5(b)(6).\n\n(8) Manufacturers certifying any vehicles under \u00a7 535.5(b)(6) must consider each separate vehicle type (or group of vehicle types) as a separate averaging set.\n\n(d)  ABT provisions for heavy-duty engines.  (1) Calculate the fuel consumption credits in a model year for each participating family or subfamily consisting of engines in each averaging set (as defined in \u00a7 535.4) using the equation in this section. Each designated engine family has a \u201cfamily certification level\u201d (FCL) which is compared to the associated regulatory subcategory standard. A FCL that falls below the regulatory subcategory standard creates \u201cpositive credits,\u201d while fuel consumption level of a family group above the standard creates a \u201ccredit shortfall.\u201d The value of credits generated in a model year for each engine family or subfamily is calculated as follows and must be rounded to nearest whole number:\n\nEngine Family FCC (gallons) = (Std\u2212FCL) \u00d7 (CF) \u00d7(Volume) \u00d7 (UL) \u00d7 (10\n 2 )\n\nWhere:\n \n Std = the standard for the respective engine regulatory subcategory (gal/100 hp-hr).\n \n FCL = family certification level for the engine family (gal/100 hp-hr).\n \n CF= a transient cycle conversion factor in hp-hr/mile which is the integrated total cycle horsepower-hour divided by the equivalent mileage of the applicable test cycle. For engines subject to spark-ignition heavy-duty standards, the equivalent mileage is 6.3 miles. For engines subject to compression-ignition heavy-duty standards, the equivalent mileage is 6.5 miles.\n \n Volume = the number of engines in the corresponding engine family.\n \n UL = the useful life of the given engine family (miles) as shown in the following table:\n\nWhere:\n\nStd = the standard for the respective engine regulatory subcategory (gal/100 hp-hr).\n\nFCL = family certification level for the engine family (gal/100 hp-hr).\n\nCF= a transient cycle conversion factor in hp-hr/mile which is the integrated total cycle horsepower-hour divided by the equivalent mileage of the applicable test cycle. For engines subject to spark-ignition heavy-duty standards, the equivalent mileage is 6.3 miles. For engines subject to compression-ignition heavy-duty standards, the equivalent mileage is 6.5 miles.\n\nVolume = the number of engines in the corresponding engine family.\n\nUL = the useful life of the given engine family (miles) as shown in the following table:\n\nTable 3 to Paragraph ( d )(1) Introductory Text\n\n(i) Calculate the value of credits generated in a model year for each family or subfamily consisting of engines with advanced technology vehicles in each averaging set using the equation above and the guidelines provided in paragraph (f)(1) of this section. Manufacturers may generate credits for advanced technology vehicles using incentives specified in paragraph (f)(1) of this section.\n\n(ii) Calculate the value of credits generated in a model year for each family or subfamily consisting of engines with off-cycle technology vehicles in each averaging set using the equation above and the guidelines provided in paragraph (f)(2) of this section.\n\n(2) Manufacturers shall sum all negative and positive credits for each engine family within the applicable averaging set to obtain the total credit balance for the model year before rounding. The sum of fuel consumptions credits should be rounded to the nearest gallon.\n\nCalculate the total credits generated in a model year for each averaging set using the following equation:\n\nTotal averaging set MY credits = \u03a3 Engine family credits within each averaging set\n\n(3) The provisions of this section apply to manufacturers utilizing the compression-ignition engine voluntary alternate standard provisions specified in \u00a7 535.5(d)(4) as follows:\n\n(i) Manufacturers may not certify engines to the alternate standards if they are part of an averaging set in which they carry a balance of banked credits. For purposes of this section, manufacturers are deemed to carry credits in an averaging set if they carry credits from advance technology that are allowed to be used in that averaging set.\n\n(ii) Manufacturers may not bank fuel consumption credits for any engine family in the same averaging set and model year in which it certifies engines to the alternate standards. This means a manufacturer may not bank advanced technology credits in a model year it certifies any engines to the alternate standards.\n\n(iii) Note that the provisions of paragraph (d)(10) of this section apply with respect to credit deficits generated while utilizing alternate standards.\n\n(4) Where a manufacturer has chosen to comply with the EPA alternative compression-ignition engine phase-in standard provisions in 40 CFR 1036.150(e), and has optionally decided to follow the same path under the NHTSA fuel consumption program, it must certify all of its model year 2013 compression-ignition engines within a given averaging set to the applicable alternative standards in \u00a7 535.5(d)(5). Engines certified to these standards are not eligible for early credits under paragraph (d)(14) of this section. Credits are calculated using the same equation provided in paragraph (d)(11) of this section.\n\n(5) If a manufacturer chooses to generate early CO 2  emission credits under EPA provisions of 40 CFR 1036.150, it may also voluntarily generate early credits under the NHTSA fuel consumption program. Fuel consumption credits may be generated for engines certified in model year 2013 (2015 for spark-ignition engines) to the standards in \u00a7 535.5(d). To do so, a manufacturer must certify its entire U.S.-directed production volume of engines except as specified in 40 CFR 1036.150(a)(2). Credits are calculated as specified in paragraph (d)(11) of this section relative to the standards that would apply for model year 2014 (2016 for spark-ignition engines). Surplus credits generated under this paragraph (d)(3) may be increased by a factor of 1.5 for determining total available credits for banking or trading. For example, if a manufacturer has 10 gallons of surplus credits for model year 2013, it may bank 15 gallons of credits. Credit deficits for an averaging set prior to model year 2014 (2016 for spark-ignition engines) do not carry over to model year 2014 (2016 for spark-ignition engines). These credits may be used to show compliance with the standards of this part for 2014 and later model years. Once a manufacturer opts into the NHTSA program they must stay in the program for all of the optional model years and remain standardized with the same implementation approach being followed to meet the EPA CO 2  emission program.\n\n(6) Manufacturers may generate fuel consumption credits from an engine family subject to spark-ignition standards for exchanging with other engine families only if the engines in the family are gasoline-fueled.\n\n(7) Engine credits generated for compression-ignition engines in model year 2020 and earlier may be used in model year 2021 and later as follows:\n\n(i) For credit-generating engines certified to the tractor engine standards in \u00a7 535.5(d), you may use credits calculated relative to the tractor engine standards.\n\n(ii) For credit-generating engines certified to the vocational engine standards in \u00a7 535.5(d), you may use credits calculated relative to the following family certification levels (FCLs):\n\n(A) Medium Heavy-Duty Engines = 5.4813 gallons/100 hp-hr\n\n(B) Heavy Heavy-Duty Engines = 5.1572 gallons/100 hp-hr\n\n(C) To transfer Phase 1 credits for use in the Phase 2 fuel consumption program, manufacturers must recalculate credit values for the Phase 1 model years by substituting the FCLs in paragraph (d)(1) of this section with the those in paragraphs (d)(7)(ii)(A) and (B) of this section.\n\n(8) Engine families manufacturers certify with a nonconformance penalty under 40 CFR part 86, subpart L, and may not generate fuel consumption credits.\n\n(9)  Alternate transition option for Phase 2 engine standards.  The following provisions allow for enhanced generation and use of fuel consumption credits for manufacturers complying with engines standards in accordance with \u00a7 535.7(d)(11):\n\n(i) If a manufacturer is eligible to certify all of its model year 2020 engines within the averaging set to the tractor and vocational vehicle engine standards in \u00a7 535.5(d)(11) and the requirements applicable to model year 2021 engines, the banked and traded fuel consumption credits generated for model year 2018 through 2024 engines may be used through model year 2030 as specified in paragraph (d)(9)(ii) of this section or through a five-year credit life, whichever is later.\n\n(ii) Banked and traded fuel consumption credits generated under this paragraph (d)(9) for model year 2018 through 2024 engines may be used through model year 2030 with the extended credit life values shown in the table:\n\n(e) [Reserved]\n\n(f)  Additional credit provisions \u2014(1)  Advanced technology credits.  (i) For the Phase 1 program, manufacturers of heavy-duty pickup trucks and vans, vocational vehicles, tractors and the associated engines showing improvements in CO 2  emissions and fuel consumption using hybrid vehicles with regenerative braking, vehicles equipped with Rankine-cycle engines, electric vehicles and fuel cell vehicles are eligible for advanced technology credits. Manufacturers shall use sound engineering judgment to determine the performance of the vehicle or engine with advanced technology. Advanced technology credits for vehicles or engines complying with Phase 1 standards may be increased by a 1.5 multiplier. Manufacturers may not apply this multiplier in addition to any early-credit multipliers. The maximum amount of credits a manufacturer may bring into the service class group that contains the heavy-duty pickup and van averaging set is 5.89 \u00b7 10\n 6  gallons (for advanced technology credits based upon compression-ignition engines) or 6.76 \u00b7 10\n 6  gallons (for advanced technology credits based upon spark-ignition engines) per model year as specified in 40 CFR part 86 for heavy-duty pickup trucks and vans, 40 CFR 1036.740 for engines and 40 CFR 1037.740 for tractors and vocational vehicles. The specified limit does not cap the amount of advanced technology credits that can be used across averaging sets within the same service class group. Advanced technology credits can be used to offset negative credits in the same averaging set or other averaging sets. A manufacturer must first apply advanced technology credits to any deficits in the same averaging set before applying them to other averaging.\n\n(A)  Heavy-duty pickup trucks and vans.  For advanced technology systems (hybrid vehicles with regenerative braking, vehicles equipped with Rankine-cycle engines and fuel cell vehicles), calculate fleet-average performance rates consistent with good engineering judgment and the provisions of 40 CFR 86.1819-14 and 86.1865.\n\n(B)  Tractors and vocational vehicles.  For advanced technology system (hybrid vehicles with regenerative braking, vehicles equipped with Rankine-cycle engines and fuel cell vehicles), calculate the advanced technology credits as follows:\n\n( 1 ) Measure the effectiveness of the advanced system by conducting A to B testing a vehicle equipped with the advanced system and an equivalent conventional system in accordance with 40 CFR 1037.615.\n\n( 2 ) For purposes of this paragraph (f), a conventional vehicle is considered to be equivalent if it has the same footprint, intended vehicle service class, aerodynamic drag, and other relevant factors not directly related to the advanced system powertrain. If there is no equivalent vehicle, the manufacturer may create and test a prototype equivalent vehicle. The conventional vehicle is considered Vehicle A, and the advanced technology vehicle is considered Vehicle B.\n\n( 3 ) The benefit associated with the advanced system for fuel consumption is determined from the weighted fuel consumption results from the chassis tests of each vehicle using the following equation:\n\nBenefit (gallon/1000 ton mile) = Improvement Factor \u00d7 GEM Fuel Consumption Result__B\n\nWhere:\n \n Improvement Factor = (Fuel Consumption__A\u2212Fuel Consumption__B)/(Fuel Consumption__A).\n \n Fuel Consumption Rates A and B are the gallons per 1000 ton-mile of the conventional and advanced vehicles, respectively as measured under the test procedures specified by EPA. GEM Fuel Consumption Result B is the estimated gallons per 1000 ton-mile rate resulting from emission modeling of the advanced vehicle as specified in 40 CFR 1037.520 and \u00a7 535.6(b).\n\nWhere:\n\nImprovement Factor = (Fuel Consumption__A\u2212Fuel Consumption__B)/(Fuel Consumption__A).\n\nFuel Consumption Rates A and B are the gallons per 1000 ton-mile of the conventional and advanced vehicles, respectively as measured under the test procedures specified by EPA. GEM Fuel Consumption Result B is the estimated gallons per 1000 ton-mile rate resulting from emission modeling of the advanced vehicle as specified in 40 CFR 1037.520 and \u00a7 535.6(b).\n\n( 4 ) Calculate the benefit in credits using the equation in paragraph (c) of this section and replacing the term (Std-FEL) with the benefit.\n\n( 5 ) For electric vehicles calculate the fuel consumption credits using an FEL of 0 g/1000 ton-mile.\n\n(C)  Heavy-duty engines.  This section specifies how to generate advanced technology-specific fuel consumption credits for hybrid powertrains that include energy storage systems and regenerative braking (including regenerative engine braking) and for engines that include Rankine-cycle (or other bottoming cycle) exhaust energy recovery systems.\n\n( 1 ) Pre-transmission hybrid powertrains are those engine systems that include features that recover and store energy during engine motoring operation but not from the vehicle wheels. These powertrains are tested using the hybrid engine test procedures of 40 CFR part 1065 or using the post-transmission test procedures.\n\n( 2 ) Post-transmission hybrid powertrains are those powertrains that include features that recover and store energy from braking at the vehicle wheels. These powertrains are tested by simulating the chassis test procedure applicable for hybrid vehicles under 40 CFR 1037.550.\n\n( 3 ) Test engines that include Rankine-cycle exhaust energy recovery systems according to the test procedures specified in 40 CFR part 1036, subpart F, unless EPA approves the manufacturer's alternate procedures.\n\n(D)  Credit calculation.  Calculate credits as specified in paragraph (c) of this section. Credits generated from engines and powertrains certified under this section may be used in other averaging sets as described in 40 CFR 1036.740(d).\n\n(ii) There are no separate credit allowances for advanced technology vehicles in the Phase 2 program. Instead, through model year 2027, vehicle families containing plug-in battery electric hybrids, all-electric, and fuel cell vehicles certifying to Phase 2 vocational and tractor standards may multiply credits by a multiplier of:\n\n(A) 3.5 times for plug-in hybrid electric vehicles;\n\n(B) 4.5 times for all-electric vehicles; and\n\n(C) 5.5 times for fuel cell vehicles.\n\n(D) Incentivized credits for vehicles equipped with advanced technologies maintain the same credit flexibilities and restrictions as conventional credits specified in paragraph (a) of this section during the Phase 2 program.\n\n(E) For vocational vehicles and tractors subject to Phase 2 standards, create separate vehicle families if there is a credit multiplier for advanced technology; group those vehicles together in a vehicle family if they use the same multiplier.\n\n(F) For Phase 2 plug-in hybrid electric vehicles and for fuel cells powered by any fuel other than hydrogen, calculate fuel consumption credits using an FEL based on equivalent emission measurements from powertrain testing. Phase 2 advanced-technology credits do not apply for hybrid vehicles that have no plug-in capability.\n\n(G) Advanced technology credits increased with a multiplier in Phase 2, in accordance with \u00a7 535.7(f)(1)(ii), cannot be used across averaging sets.\n\n(2)  Innovative and off-cycle technology credits.  This provision allows fuel saving innovative and off-cycle engine and vehicle technologies to generate fuel consumption credits (FCCs) comparable to CO\n 2  emission credits consistent with the provisions of 40 CFR 86.1819-14(d)(13) (for heavy-duty pickup trucks and vans), 40 CFR 1036.610 (for engines), and 40 CFR 1037.610 (for vocational vehicles and tractors). Heavy-duty pickup trucks and vans may only generate FCCs through model year 2029.\n\n(i) For model years 2013 through 2020, manufacturers may generate innovative technology credits for introducing technologies that were not in-common use for heavy-duty tractor, vocational vehicles or engines before model year 2010 and that are not reflected in the EPA specified test procedures. Upon identification and joint approval with EPA, NHTSA will allow equivalent fuel consumption credits into its program to those allowed by EPA for manufacturers seeking to obtain innovative technology credits in a given model year. Such credits must remain within the same regulatory subcategory in which the credits were generated. NHTSA will adopt fuel consumption credits depending upon whether\u2014\n\n(A) The technology has a direct impact upon reducing fuel consumption performance; and\n\n(B) The manufacturer has provided sufficient information to make sound engineering judgments on the impact of the technology in reducing fuel consumption performance.\n\n(ii) For model years 2021 and later, or for model years 2021 through 2029, for heavy-duty pickup trucks and vans manufacturers may generate off-cycle technology credits for introducing technologies that are not reflected in the EPA specified test procedures. Upon identification and joint approval with EPA, NHTSA will allow equivalent FCCs into its program to those allowed by EPA for manufacturers seeking to obtain innovative technology credits in a given model year. Such credits must remain within the same regulatory subcategory in which the credits were generated. NHTSA will adopt FCCs depending upon whether\u2014\n\n(A) The technology meets paragraphs (f)(2)(i)(A) and (B) of this section.\n\n(B) For heavy-duty pickup trucks and vans, manufacturers using the 5-cycle test to quantify the benefit of a technology are not required to obtain approval from the agencies to generate results.\n\n(iii) The following provisions apply to all innovative and off-cycle technologies:\n\n(A) Technologies found to be defective, or identified as a part of NHTSA's safety defects program, and technologies that are not performing as intended will have the values of approved off-cycle credits removed from the manufacturer's credit balance.\n\n(B) Approval granted for innovative and off-cycle technology credits under NHTSA's fuel efficiency program does not affect or relieve the obligation to comply with the Vehicle Safety Act (49 U.S.C. Chapter 301), including the \u201cmake inoperative\u201d prohibition (49 U.S.C. 30122), and all applicable Federal motor vehicle safety standards issued thereunder (FMVSSs) (49 CFR part 571). In order to generate off-cycle or innovative technology credits manufacturers must state\u2014\n\n( 1 ) That each vehicle equipped with the technology for which they are seeking credits will comply with all applicable FMVSS(s); and\n\n( 2 ) Whether or not the technology has a fail-safe provision. If no fail-safe provision exists, the manufacturer must explain why not and whether a failure of the innovative technology would affect the safety of the vehicle.\n\n(C) Manufacturers requesting approval for innovative technology credits are required to provide documentation in accordance with 40 CFR 86.1869-12, 1036.610, and 1037.610.\n\n(D) Credits will be accepted on a one-for-one basis expressed in terms of gallons in comparison to those approved by EPA.\n\n(E) For the heavy-duty pickup trucks and vans, the average fuel consumption will be calculated as a separate credit amount (rounded to the nearest whole number) using the following equation:\n\nOff-cycle FC credits = (CO 2  Credit/CF) \u00d7 Production \u00d7 VLM\n\nWhere:\n \n CO 2  Credits = the credit value in grams per mile determined in 40 CFR 86.1869-12(c)(3), (d)(1), (d)(2) or (d)(3).\n \n CF = conversion factor, which for spark-ignition engines is 8,887 and for compression-ignition engines is 10,180.\n \n Production = the total production volume for the applicable category of vehicles\n \n VLM = vehicle lifetime miles, which for 2b-3 vehicles shall be 150,000 for the Phase 2 program.\n \n The term (CO 2  Credit/CF) should be rounded to the nearest 0.0001\n\nWhere:\n\nCO 2  Credits = the credit value in grams per mile determined in 40 CFR 86.1869-12(c)(3), (d)(1), (d)(2) or (d)(3).\n\nCF = conversion factor, which for spark-ignition engines is 8,887 and for compression-ignition engines is 10,180.\n\nProduction = the total production volume for the applicable category of vehicles\n\nVLM = vehicle lifetime miles, which for 2b-3 vehicles shall be 150,000 for the Phase 2 program.\n\nThe term (CO 2  Credit/CF) should be rounded to the nearest 0.0001\n\n(F) NHTSA will not approve innovative technology credits for technology that is related to crash-avoidance technologies, safety critical systems or systems affecting safety-critical functions, or technologies designed for the purpose of reducing the frequency of vehicle crashes.\n\n(iv) Manufacturers normally may not calculate off-cycle credits or improvement factors under this section for technologies represented by GEM, but the agencies may allow a manufacturer to do so by averaging multiple GEM runs for special technologies for which a single GEM run cannot accurately reflect in-use performance. For example, if a manufacturer use an idle-reduction technology that is effective 80 percent of the time, the agencies may allow a manufacturer to run GEM with the technology active and with it inactive, and then apply an 80% weighting factor to calculate the off-cycle credit or improvement factor. A may need to perform testing to establish proper weighting factors or otherwise quantify the benefits of the special technologies.\n\n(v) [Reserved]\n\n(vi)  Carry-over Approval.  Manufacturers may carry-over these credits into future model years as described below:\n\n(A) For model years before 2021, manufacturers may continue to use an approved improvement factor or credit for any appropriate engine or vehicle family in future model years through 2020.\n\n(B) For model years 2021 and later, or for model years 2021 through 2029 for heavy-duty pickup trucks and vans, manufacturers may not rely on an approval for model years before 2021. Manufacturers must separately request the agencies' approval before applying an improvement factor or credit under this section for 2021 and later engines and vehicle, even if the agencies approve the improvement factor or credit for similar engine and vehicle models before model year 2021.\n\n(C) The following restrictions also apply to manufacturers seeking to continue to carryover the improvement factor (not the credit value) if\u2014\n\n( 1 ) The FEL is generated by GEM or 5-cycle testing;\n\n( 2 ) The technology is not changed or paired with any other off-cycle technology;\n\n( 3 ) The improvement factor only applies to approved vehicle or engine families;\n\n( 4 ) The agencies do not expect the technology to be incorporated into GEM at any point during the Phase 2 program; and\n\n(D) The documentation to carryover credits that would primarily justify the difference in fuel efficiency between real world and compliance protocols is the same for both Phase 1 and Phase 2 compliance protocols. The agencies must approve the justification. If the agencies do not approve the justification, the manufacturer must recertify."], ["49:49:6.1.2.3.16.0.1.8", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.8 Reporting and recordkeeping requirements.", "NHTSA", "", "", "[81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18831, Mar. 15, 2024]", "(a)  General requirements.  Manufacturers producing heavy-duty vehicles and engines applicable to fuel consumption standards in \u00a7 535.5, for each given model year, must submit the required information as specified in paragraphs (b) through (h) of this section.\n\n(1) The information required by this part must be submitted by the deadlines specified in this section and must be based upon all the information and data available to the manufacturer 30 days before submitting information.\n\n(2) Manufacturers must submit information electronically through the EPA database system as the single point of entry for all information required for this national program and both agencies will have access to the information. In special circumstances, data may not be able to be received electronically ( i.e.,  during database system development work). The agencies will inform manufacturer of the alternatives can be used for submitting information. The format for the required information will be specified by EPA in coordination with NHTSA.\n\n(3) Manufacturers providing incomplete reports missing any of the required information or providing untimely reports are considered as not complying with standards ( i.e.,  if good-faith estimates of U.S.-directed production volumes for EPA certificates of conformity are not provided) and are liable to pay civil penalties in accordance with 49 U.S.C. 32912.\n\n(4) Manufacturers certifying a vehicle or engine family using an FEL or FCL below the applicable fuel consumption standard as described in \u00a7 535.5 may choose not to generate fuel consumption credits for that family. In which case, the manufacturer is not required to submit reporting or keep the associated records described in this part for that family.\n\n(5) Manufacturers must use good engineering judgment and provide comparable fuel consumption information to that of the information or data provided to EPA under 40 CFR 86.1865, 1036.250, 1036.730, 1036.825 1037.250, 1037.730, and 1037.825.\n\n(6) Any information that must be sent directly to NHTSA. In instances in which EPA has not created an electronic pathway to receive the information, the information should be sent through an electronic portal identified by NHTSA or through the NHTSA CAFE database ( i.e.,  information on fuel consumption credit transactions). If hardcopy documents must be sent, the information should be sent to the Associate Administrator of Enforcement at 1200 New Jersey Avenue SE, NVS-200, Office W45-306, Washington, DC 20590.\n\n(b)  Pre-model year reports.  Manufacturers producing heavy-duty pickup trucks and vans must submit reports in advance of the model year providing early estimates demonstrating how their fleet(s) would comply with GHG emissions and fuel consumption standards. Note, the agencies understand that early model year reports contain estimates that may change over the course of a model year and that compliance information manufacturers submit prior to the beginning of a new model year may not represent the final compliance outcome. The agencies view the necessity for requiring early model reports as a manufacturer's good faith projection for demonstrating compliance with emission and fuel consumption standards.\n\n(1)  Report deadlines.  For model years 2013 and later, manufacturer of heavy-duty pickup trucks and vans complying with voluntary and mandatory standards must submit a pre-model year report for the given model year as early as the date of the manufacturer's annual certification preview meeting with EPA and NHTSA, or prior to submitting its first application for a certificate of conformity to EPA in accordance with 40 CFR 86.1819-14(d). For example, a manufacturer choosing to comply in model year 2014 could submit its pre-model year report during its precertification meeting which could occur before January 2, 2013, or could provide its pre-model year report any time prior to submitting its first application for certification for the given model year.\n\n(2)  Contents.  Each pre-model year report must be submitted including the following information for each model year.\n\n(i) A list of each unique subconfiguration in the manufacturer's fleet describing the make and model designations, attribute based-values ( i.e.,  GVWR, GCWR, Curb Weight and drive configurations) and standards;\n\n(ii) The emission and fuel consumption fleet average standard derived from the unique vehicle configurations;\n\n(iii) The estimated vehicle configuration, test group and fleet production volumes;\n\n(iv) The expected emissions and fuel consumption test group results and fleet average performance;\n\n(v) If complying with MY 2013 fuel consumption standards, a statement must be provided declaring that the manufacturer is voluntarily choosing to comply early with the EPA and NHTSA programs. The manufacturers must also acknowledge that once selected, the decision cannot be reversed and the manufacturer will continue to comply with the fuel consumption standards for subsequent model years for all the vehicles it manufacturers in each regulatory category for a given model year;\n\n(vi) If complying with MYs 2014, 2015 or 2016 fuel consumption standards, a statement must be provided declaring whether the manufacturer will use fixed or increasing standards in accordance with \u00a7 535.5(a). The manufacturer must also acknowledge that once selected, the decision cannot be reversed and the manufacturer must continue to comply with the same alternative for subsequent model years for all the vehicles it manufacturers in each regulatory category for a given model year;\n\n(vii) If complying with MYs 2014 or 2015 fuel consumption standards, a statement must be provided declaring that the manufacturer is voluntarily choosing to comply with NHTSA's voluntary fuel consumption standards in accordance with \u00a7 535.5(a)(4). The manufacturers must also acknowledge that once selected, the decision cannot be reversed and the manufacturer will continue to comply with the fuel consumption standards for subsequent model years for all the vehicles it manufacturers in each regulatory category for a given model year;\n\n(viii) The list of Class 2b and 3 incomplete vehicles (cab-complete or chassis complete vehicles) and the method used to certify these vehicles as complete pickups and vans identifying the most similar complete sister- or other complete vehicles used to derive the target standards and performance test results;\n\n(ix) The list of Class 4 and 5 incomplete and complete vehicles and the method use to certify these vehicles as complete pickups and vans identifying the most similar complete or sister vehicles used to derive the target standards and performance test results;\n\n(x) List of loose engines included in the heavy-duty pickup and van category and the list of vehicles used to derive target standards and performance test results;\n\n(xi) Copy of any notices a vehicle manufacturer sends to the engine manufacturer to notify the engine manufacturers that their engines are subject to emissions and fuel consumption standards and that it intends to use their engines in excluded vehicles;\n\n(xii) A fuel consumption credit plan as specified \u00a7 535.7(a) identifying the manufacturers estimated credit balances, planned credit flexibilities ( i.e.,  credit balances, planned credit trading, innovative, advanced and early credits and etc.) and if needed a credit deficit plan demonstrating how it plans to resolve any credit deficits that might occur for a model year within a period of up to three model years after that deficit has occurred; and\n\n(xiii) The supplemental information specified in paragraph (h) of this section.\n\nNHTSA may also ask a manufacturer to provide additional information if necessary to verify compliance with the fuel consumption requirements of this section.\n\n(c)  Applications for certificate of conformity.  Manufacturers producing vocational vehicles, tractors and heavy-duty engines are required to submit applications for certificates of conformity to EPA in accordance with 40 CFR 1036.205 and 1037.205 in advance of introducing vehicles for commercial sale. Applications contain early model year information demonstrating how manufacturers plan to comply with GHG emissions. For model years 2013 and later, manufacturers of vocational vehicles, tractors and engine complying with NHTSA's voluntary and mandatory standards must submit applications for certificates of conformity in accordance through the EPA database including both GHG emissions and fuel consumption information for each given model year.\n\n(1)  Submission deadlines.  Applications are primarily submitted in advance of the given model year to EPA but cannot be submitted any later than December 31 of the given model year.\n\n(2)  Contents.  Each application for certificates of conformity submitted to EPA must include the following equivalent fuel consumption.\n\n(i) Equivalent fuel consumption values for emissions CO 2  FCLs values used to certify each engine family in accordance with 40 CFR 1036.205(e). This provision applies only to manufacturers producing heavy-duty engines.\n\n(ii) Equivalent fuel consumption values for emission CO 2  data engines used to comply with emission standards in 40 CFR 1036.108. This provision applies only to manufacturers producing heavy-duty engines.\n\n(iii) Equivalent fuel consumption values for emissions CO 2  FELs values used to certify each vehicle families or subfamilies in accordance with 40 CFR 1037.205(k). This provision applies only to manufacturers producing vocational vehicles and tractors.\n\n(iv) Report modeling results for ten configurations in terms of CO 2  emissions and equivalent fuel consumption results in accordance with 40 CFR 1037.205(o). Include modeling inputs and detailed descriptions of how they were derived. This provision applies only to manufacturers producing vocational vehicles and tractors.\n\n(v) Credit plans including the fuel consumption credit plan described in \u00a7 535.7(a).\n\n(3)  Additional supplemental information.  Manufacturers are required to submit additional information as specified in paragraph (h) of this section for the NHTSA program before or at the same time it submits its first application for a certificate of conformity to EPA. Under limited conditions, NHTSA may also ask a manufacturer to provide additional information directly to the Administrator if necessary to verify the fuel consumption requirements of this regulation.\n\n(d)  End of the Year (EOY) and Final reports.  Heavy-duty vehicle and engine manufacturers participating in the ABT program are required to submit EOY and final reports containing information for NHTSA as specified in paragraph (d)(2) of this section and in accordance with 40 CFR 86.1865, 1036.730, and 1037.730. Only manufacturers without credit deficits may decide not to participate in the ABT or may waive the requirement to send an EOY report. The EOY and final reports are used to review a manufacturer's preliminary or final compliance information and to identify manufacturers that might have a credit deficit for the given model year. For model years 2013 and later, heavy-duty vehicle and engine manufacturers complying with NHTSA's voluntary and mandatory standards must submit EOY and final reports through the EPA database including both GHG emissions and fuel consumption information for each given model year.\n\n(1)  Report deadlines.  (i) For model year 2013 and later, heavy-duty vehicle and engine manufacturers complying with NHTSA voluntary and mandatory standards must submit EOY reports through the EPA database including both GHG emissions and fuel consumption information within 90 days after the end of the given model year and no later than March 31 of the next calendar year.\n\n(ii) For model year 2013 and later, heavy-duty vehicle and engine manufacturers complying with NHTSA voluntary and mandatory standards must submit final reports through the EPA database including both GHG emissions and fuel consumption information within 270 days after the end of the given model year and no later than September 30 of the next calendar year.\n\n(iii) A manufacturer may ask NHTSA and EPA to extend the deadline of a final report by up to 30 days. A manufacturer unable to provide, and requesting to omit an emissions rate or fuel consumption value from a final report must obtain approval from the agencies prior to the submission deadline of its final report.\n\n(iv) If a manufacturer expects differences in the information reported between the EOY and the final year report specified in 40 CFR 1036.730 and 1037.730, it must provide the most up-to-date fuel consumption projections in its final report and identify the information as preliminary.\n\n(v) If the manufacturer cannot provide any of the required fuel consumption information, it must state the specific reason for the insufficiency and identify the additional testing needed or explain what analytical methods are believed by the manufacturer will be necessary to eliminate the insufficiency and certify that the results will be available for the final report.\n\n(2)  Contents.  Each EOY and final report must be submitted including the following fuel consumption information for each model year. EOY reports contain preliminary final estimates and final reports must include the manufacturer's final compliance information.\n\n(i) Engine and vehicle family designations and averaging sets.\n\n(ii) Engine and vehicle regulatory subcategory and fuel consumption standards including any alternative standards used.\n\n(iii) Engine and vehicle family FCLs and FELs in terms of fuel consumption.\n\n(iv) Production volumes for engines and vehicles.\n\n(v) A summary as specified in paragraph (g)(7) of this section describing the vocational vehicles and vocational tractors that were exempted as heavy-duty off-road vehicles. This applies to manufacturers participating and not participating in the ABT program.\n\n(vi) A summary describing any advanced or innovative technology engines or vehicles including alternative fueled vehicles that were produced for the model year identifying the approaches used to determinate compliance and the production volumes.\n\n(vii) A list of each unique subconfiguration included in a manufacturer's fleet of heavy-duty pickup trucks and vans identifying the attribute based-values (GVWR, GCWR, Curb Weight, and drive configurations) and standards. This provision applies only to manufacturers producing heavy-duty pickup trucks and vans.\n\n(viii) The fuel consumption fleet average standard derived from the unique vehicle configurations. This provision applies only to manufacturers producing heavy-duty pickup trucks and vans.\n\n(ix) The subconfiguration and test group production volumes. This provision applies only to manufacturers producing heavy-duty pickup trucks and vans.\n\n(x) The fuel consumption test group results and fleet average performance. This provision applies only to manufacturers producing heavy-duty pickup trucks and vans.\n\n(xi) Manufacturers may correct errors in EOY and final reports as follows:\n\n(A) Manufacturers may correct any errors in their end-of-year report when preparing the final report, as long as manufacturers send us the final report by the time it is due.\n\n(B) If manufacturers or the agencies determine within 270 days after the end of the model year that errors mistakenly decreased he manufacturer's balance of fuel consumption credits, manufacturers may correct the errors and recalculate the balance of its fuel consumption credits. Manufacturers may not make any corrections for errors that are determined more than 270 days after the end of the model year. If manufacturers report a negative balance of fuel consumption credits, NHTSA may disallow corrections under this paragraph (d)(2)(xi)(B).\n\n(C) If manufacturers or the agencies determine any time that errors mistakenly increased its balance of fuel consumption credits, manufacturers must correct the errors and recalculate the balance of fuel consumption credits.\n\n(xii) Under limited conditions, NHTSA may also ask a manufacturer to provide additional information directly to the Administrator if necessary to verify the fuel consumption requirements of this regulation.\n\n(e)  Amendments to applications for certification.  At any time, a manufacturer modifies an application for certification in accordance with 40 CFR 1036.225 and 1037.225, it must submit GHG emissions changes with equivalent fuel consumption values for the information required in paragraphs (b) through (e) and (h) of this section.\n\n(f)  Confidential information.  Manufacturers must submit a request for confidentiality with each electronic submission specifying any part of the for information or data in a report that it believes should be withheld from  public  disclosure as trade secret or other confidential business information. Information submitted to EPA should follow EPA guidelines for treatment of confidentiality. Requests for confidential treatment for information submitted to NHTSA must be filed in accordance with the requirements of 49 CFR part 512, including submission of a request for confidential treatment and the information for which confidential treatment is requested as specified by part 512. For any information or data requested by the manufacturer to be withheld under 5 U.S.C. 552(b)(4) and 49 U.S.C. 32910(c), the manufacturer shall present arguments and provide evidence in its request for confidentiality demonstrating that\u2014\n\n(1) The item is within the scope of 5 U.S.C. 552(b)(4) and 49 U.S.C. 32910(c);\n\n(2) The disclosure of the information at issue would cause significant competitive damage;\n\n(3) The period during which the item must be withheld to avoid that damage; and\n\n(4) How earlier disclosure would result in that damage.\n\n(g)  Additional required information.  The following additional information is required to be submitted through the EPA database. NHTSA reserves the right to ask a manufacturer to provide additional information if necessary to verify the fuel consumption requirements of this regulation.\n\n(1)  Small businesses.  For model years 2013 through 2020, vehicles and engines produced by small business manufacturers meeting the criteria in 13 CFR 121.201 are exempted from the requirements of this part. Qualifying small business manufacturers must notify EPA and NHTSA Administrators before importing or introducing into U.S. commerce exempted vehicles or engines. This notification must include a description of the manufacturer's qualification as a small business under 13 CFR 121.201. Manufacturers must submit this notification to EPA, and EPA will provide the notification to NHTSA. The agencies may review a manufacturer's qualification as a small business manufacturer under 13 CFR 121.201.\n\n(2)  Emergency vehicles.  For model years 2021 and later, emergency vehicles produced by heavy-duty pickup truck and van manufacturers are exempted except those produced by manufacturers voluntarily complying with standards in \u00a7 535.5(a). Manufacturers must notify the agencies in writing if using the provisions in \u00a7 535.5(a) to produce exempted emergency vehicles in a given model year, either in the report specified in 40 CFR 86.1865 or in a separate submission.\n\n(3)  Early introduction.  The provision applies to manufacturers seeking to comply early with the NHTSA's fuel consumption program prior to model year 2014. The manufacturer must send the request to EPA before submitting its first application for a certificate of conformity.\n\n(4)  NHTSA voluntary compliance model years.  Manufacturers must submit a statement declaring whether the manufacturer chooses to comply voluntarily with NHTSA's fuel consumption standards for model years 2014 through 2015. The manufacturers must acknowledge that once selected, the decision cannot be reversed and the manufacturer will continue to comply with the fuel consumption standards for subsequent model years. The manufacturer must send the statement to EPA before submitting its first application for a certificate of conformity.\n\n(5)  Alternative engine standards.  Manufacturers choosing to comply with the alternative engine standards must notify EPA and NHTSA of their choice and include in that notification a demonstration that it has exhausted all available credits and credit opportunities. The manufacturer must send the statement to EPA before submitting its EOY report.\n\n(6)  Alternate phase-in.  Manufacturers choosing to comply with the alternative engine phase-in must notify EPA and NHTSA of their choice. The manufacturer must send the statement to EPA before submitting its first application for a certificate of conformity.\n\n(7)  Off-road exclusion (tractors and vocational vehicles only).  (i) Tractors and vocational vehicles primarily designed to perform work in off-road environments such as forests, oil fields, and construction sites may be exempted without request from the requirements of this regulation as specified in 49 CFR 523.2 and \u00a7 535.5(b). Within 90 days after the end of each model year, manufacturers must send EPA and NHTSA through the EPA database a report with the following information:\n\n(A) A description of each excluded vehicle configuration, including an explanation of why it qualifies for this exclusion.\n\n(B) The number of vehicles excluded for each vehicle configuration.\n\n(ii) A manufacturer having an off-road vehicle failing to meet the criteria under the agencies' off-road exclusions will be allowed to request an exclusion of such a vehicle from EPA and NHTSA. The approval will be granted through the certification process for the vehicle family and will be done in collaboration between EPA and NHTSA in accordance with the provisions in 40 CFR 1037.150, 1037.210, and 1037.631.\n\n(8)  Vocational tractors.  Tractors intended to be used as vocational tractors may comply with vocational vehicle standards in \u00a7 535.5(b). Manufacturers classifying tractors as vocational tractors must provide a description of how they meet the qualifications in their applications for certificates of conformity as specified in 40 CFR 1037.205.\n\n(9)  Approval of alternate methods to determine drag coefficients (tractors only).  Manufacturers seeking to use alternative methods to determine aerodynamic drag coefficients must provide a request and gain approval by EPA in accordance with 40 CFR 1037.525. The manufacturer must send the request to EPA before submitting its first application for a certificate of conformity.\n\n(10)  Innovative and off-cycle technology credits.  Manufacturers pursuing innovative and off-cycle technology credits must submit information to the agencies and may be subject to a public evaluation process in which the public would have opportunity for comment if the manufacturer is not using a test procedure in accordance with 40 CFR 1037.610(c). Whether the approach involves on-road testing, modeling, or some other analytical approach, the manufacturer would be required to present a final methodology to EPA and NHTSA. EPA and NHTSA would approve the methodology and credits only if certain criteria were met. Baseline emissions and fuel consumption and control emissions and fuel consumption would need to be clearly demonstrated over a wide range of real world driving conditions and over a sufficient number of vehicles to address issues of uncertainty with the data. Data would need to be on a vehicle model-specific basis unless a manufacturer demonstrated model-specific data was not necessary. The agencies may publish a notice of availability in the  Federal Register  notifying the public of a manufacturer's proposed alternative off-cycle credit calculation methodology and provide opportunity for comment. Any notice will include details regarding the methodology, but not include any Confidential Business Information.\n\n(11)  Credit trades.  If a manufacturer trades fuel consumption credits, it must send EPA and NHTSA a fuel consumption credit plan as specified in \u00a7 535.7(a) and provide the following additional information:\n\n(i) As the seller, the manufacturer must include the following information:\n\n(A) The corporate names of the buyer and any brokers.\n\n(B) A copy of any contracts related to the trade.\n\n(C) The averaging set corresponding to the engine and powertrain families and subfamilies that generated fuel consumption credits for the trade, including the number of fuel consumption credits from each averaging set.\n\n(ii) As the buyer, the manufacturer or entity must include the following information in its report:\n\n(A) The corporate names of the seller and any brokers.\n\n(B) A copy of any contracts related to the trade.\n\n(C) How the manufacturer or entity intends to use the fuel consumption credits, including the number of fuel consumption credits it intends to apply for each averaging set.\n\n(D) A copy of the contract with signatures from both the buyer and the seller.\n\n(12)  Production reports.  Within 90 days after the end of the model year and no later than March 31st, manufacturers participating and not-participating in the ABT program must send to EPA and NHTSA a report including the total U.S.-directed production volume of vehicles it produced in each vehicle and engine family during the model year (based on information available at the time of the report) as required by 40 CFR 1036.250 and 1037.250. Each manufacturer shall report by vehicle or engine identification number and by configuration and identify the subfamily identifier. Report uncertified vehicles sold to secondary vehicle manufacturers. Small business manufacturers may omit reporting. Identify any differences between volumes included for EPA but excluded for NHTSA.\n\n(13)  Transition to engine-based model years.  The following provisions apply for production and ABT reports during the transition to engine-based model year determinations for tractors and vocational vehicles in 2020 and 2021:\n\n(i) If a manufacturer installs model year 2020 or earlier engines in the manufacturer's vehicles in calendar year 2020, include all those Phase 1 vehicles in its production and ABT reports related to model year 2020 compliance, although the agencies may require the manufacturer to identify these separately from vehicles produced in calendar year 2019.\n\n(ii) If a manufacturer installs model year 2020 engines in its vehicles in calendar year 2021, submit production and ABT reports for those Phase 1 vehicles separate from the reports it submits for Phase 2 vehicles with model year 2021 engines.\n\n(h)  Public information.  Based upon information submitted by manufacturers and EPA, NHTSA will publish fuel consumption standards and performance results.\n\n(i)  Information received from EPA.  NHTSA will receive information from EPA as specified in 40 CFR 1036.755 and 1037.755. The knowing and willful submission of false, fictitious or fraudulent information under this part will subject a manufacturer to the civil and criminal penalties of 18 U.S.C. 1001.\n\n(j)  Recordkeeping.  NHTSA has the same recordkeeping requirements as the EPA, specified in 40 CFR 86.1865-12(k), 1036.250, 1036.735, 1036.825, 1037.250, 1037.735, and 1037.825. The agencies each reserve the right to request information contained in reports separately.\n\n(1) Manufacturers must organize and maintain records for NHTSA as described in this section. NHTSA in conjunction or separately from EPA may review a manufacturers records at any time.\n\n(2) Keep the records required by this section for at least eight years after the due date for the end-of-year report. Manufacturers may not use fuel consumption credits for any engines if it does not keep all the records required under this section. Manufacturers must therefore keep these records to continue to bank valid credits. Store these records in any electronic format and on any media, as long as the manufacturer can promptly send the agencies organized records in English if the agencies ask for them. Manufacturers must keep these records readily available. NHTSA may review them at any time.\n\n(3) Keep a copy of the reports required in \u00a7 535.8 and 40 CFR 1036.725,1036.730, 1037.725 and 1037.730.\n\n(4) Keep records of the vehicles and engine identification number (usually the serial number) for each vehicle and engine produced that generates or uses fuel consumption credits under the ABT program. Manufacturers may identify these numbers as a range. If manufacturers change the FEL after the start of production, identify the date started using each FEL/FCL and the range of vehicles or engine identification numbers associated with each FEL/FCL. Manufacturers must also identify the purchaser and destination for each vehicle and engine produced to the extent this information is available.\n\n(5) The agencies may require manufacturers to keep additional records or to send relevant information not required by this section in accordance with each agency's authority.\n\n(6) If collected separately and NHTSA finds that information is provided fraudulent or grossly negligent or otherwise provided in bad faith, the manufacturer may be liable to civil penalties in accordance with each agency's authority."], ["49:49:6.1.2.3.16.0.1.9", 49, "Transportation", "V", "", "535", "PART 535\u2014MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM", "", "", "", "\u00a7 535.9 Enforcement approach.", "NHTSA", "", "", "[81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18831, Mar. 15, 2024]", "(a)  Compliance.  (1) Each year NHTSA will assess compliance with fuel consumption standards as specified in \u00a7 535.10.\n\n(i) NHTSA may conduct audits or confirmatory testing on any configuration prior to first sale throughout a given model year or after the model year in order to validate data received from manufacturers and will discuss any potential issues with EPA and the manufacturer. NHTSA may perform confirmatory testing. Any such testing would be performed as specified in EPA's regulations at 40 CFR part 1037. Audits may periodically be performed to confirm manufacturers' credit balances, or other credit transactions or other information submitted to EPA and NHTSA.\n\n(ii) NHTSA may also conduct field inspections either at manufacturing plants or at new vehicle dealerships to validate data received from manufacturers. Field inspections will be carried out in order to validate the condition of vehicles, engines or technology prior to first commercial sale to verify each component's certified configuration as initially built. NHTSA reserves the right to conduct inspections at other locations but will target only those components for which a violation would apply to OEMs and not the fleets or vehicle owners. Compliance inspections could be carried out through a number of approaches including during safety inspections or during compliance safety testing.\n\n(iii) NHTSA will conduct audits and inspections in the same manner and, when possible, in conjunction with EPA. NHTSA will also attempt to coordinate inspections with EPA and share results.\n\n(iv) Documents collected under NHTSA safety authority may be used to support fuel efficiency audits and inspections.\n\n(v) NHTSA may require a manufacturer to perform selective enforcement audits with respect to any GEM inputs in its application for certification or in the end of the year ABT final reports. Any required selective enforcement audits would be required to be conducted in a manner consistent with EPA's corresponding provisions at 40 CFR 1037.301, 1037.305, and 1037.320.\n\n(2) At the end of each model year NHTSA will confirm a manufacturer's fleet or family performance values against the applicable standards and, if a manufacturer uses a credit flexibility, the amount of credits in each averaging set. The averaging set balance is based upon the engines or vehicles performance above or below the applicable regulatory subcategory standards in each respective averaging set and any credits that are traded into or out of an averaging set during the model year.\n\n(i) If the balance is positive, the manufacturer is designated as having a credit surplus.\n\n(ii) If the balance is negative, the manufacturer is designated as having a credit deficit.\n\n(iii) NHTSA will provide notification to each manufacturer confirming its credit balance(s) after the end of each model year directly or through EPA.\n\n(3) Manufacturer are required to confirm the negative balance and submit a fuel consumption credit plan as specified in \u00a7 535.7(a) along with supporting documentation indicating how it will allocate existing credits or earn (providing information on future vehicles, engines or technologies), and/or acquire credits, or else be liable for a civil penalty as determined in paragraph (b) of this section. The manufacturer must submit the information within 60 days of receiving agency notification.\n\n(4) Credit shortfall within an averaging set may be carried forward only three years, and if not offset by earned or traded credits, the manufacturer may be liable for a civil penalty as described in paragraph (b) of this section.\n\n(5) Credit allocation plans received from a manufacturer will be reviewed and approved by NHTSA. NHTSA will approve a credit allocation plan unless it determines that the proposed credits are unavailable or that it is unlikely that the plan will result in the manufacturer earning or acquiring sufficient credits to offset the subject credit shortfall. In the case where a manufacturer submits a plan to acquire future model year credits earned by another manufacturer, NHTSA will require a signed agreement by both manufacturers to initiate a review of the plan. If a plan is approved, NHTSA will revise the respective manufacturer's credit account accordingly by identifying which existing or traded credits are being used to address the credit shortfall, or by identifying the manufacturer's plan to earn future credits for addressing the respective credit shortfall. If a plan is rejected, NHTSA will notify the respective manufacturer and request a revised plan. The manufacturer must submit a revised plan within 14 days of receiving agency notification. The agency will provide a manufacturer one opportunity to submit a revised credit allocation plan before it initiates civil penalty proceedings.\n\n(6) For purposes of this regulation, NHTSA will treat the use of future credits for compliance, as through a credit allocation plan, as a deferral of civil penalties for non-compliance with an applicable fuel consumption standard.\n\n(7) If NHTSA receives and approves a manufacturer's credit allocation plan to earn future credits within the following three model years in order to comply with regulatory obligations, NHTSA will defer levying civil penalties for non-compliance until the date(s) when the manufacturer's approved plan indicates that credits will be earned or acquired to achieve compliance, and upon receiving confirmed CO 2  emissions and fuel consumption data from EPA. If the manufacturer fails to acquire or earn sufficient credits by the plan dates, NHTSA will initiate civil penalty proceedings.\n\n(8) In the event that NHTSA fails to receive or is unable to approve a plan for a non-compliant manufacturer due to insufficiency or untimeliness, NHTSA may initiate civil penalty proceedings.\n\n(9) In the event that a manufacturer fails to report accurate fuel consumption data for vehicles or engines covered under this rule, noncompliance will be assumed until corrected by submission of the required data, and NHTSA may initiate civil penalty proceedings.\n\n(10) If EPA suspends or revoke a certificate of conformity as specified in 40 CFR 1036.255 or 1037.255, and a manufacturer is unable to take a corrective action allowed by EPA, noncompliance will be assumed, and NHTSA may initiate civil penalty proceedings or revoke fuel consumption credits.\n\n(b)  Civil penalties \u2014(1)  Generally.  NHTSA may assess a civil penalty for any violation of this part under 49 U.S.C. 32902(k). This section states the procedures for assessing civil penalties for violations of \u00a7 535.3(h). The provisions of 5 U.S.C. 554, 556, and 557 do not apply to any proceedings conducted pursuant to this section.\n\n(2)  Initial determination of noncompliance.  An action for civil penalties is commenced by the execution of a Notice of Violation. A determination by NHTSA's Office of Enforcement of noncompliance with applicable fuel consumption standards utilizing the certified and reported CO 2  emissions and fuel consumption data provided by the Environmental Protection Agency as described in this part, and after considering all the flexibilities available under \u00a7 535.7, underlies a Notice of Violation. If NHTSA Enforcement determines that a manufacturer's averaging set of vehicles or engines fails to comply with the applicable fuel consumption standard(s) by generating a credit shortfall, the incomplete vehicle, complete vehicle or engine manufacturer, as relevant, shall be subject to a civil penalty.\n\n(3)  Numbers of violations and maximum civil penalties.  Any violation shall constitute a separate violation with respect to each vehicle or engine within the applicable regulatory averaging set. The maximum civil penalty is not more than $37,500.00 per vehicle or engine. The maximum civil penalty under this section for a related series of violations shall be determined by multiplying $37,500.00 times the vehicle or engine production volume for the model year in question within the regulatory averaging set. NHTSA may adjust this civil penalty amount to account for inflation.\n\n(4)  Factors for determining penalty amount.  In determining the amount of any civil penalty proposed to be assessed or assessed under this section, NHTSA shall take into account the gravity of the violation, the size of the violator's business, the violator's history of compliance with applicable fuel consumption standards, the actual fuel consumption performance related to the applicable standards, the estimated cost to comply with the regulation and applicable standards, the quantity of vehicles or engines not complying, and the effect of the penalty on the violator's ability to continue in business. The \u201cestimated cost to comply with the regulation and applicable standards,\u201d will be used to ensure that penalties for non-compliance will not be less than the cost of compliance.\n\n(5)  NHTSA enforcement report of determination of non-compliance.  (i) If NHTSA Enforcement determines that a violation has occurred, NHTSA Enforcement may prepare a report and send the report to the NHTSA Chief Counsel.\n\n(ii) The NHTSA Chief Counsel will review the report prepared by NHTSA Enforcement to determine if there is sufficient information to establish a likely violation.\n\n(iii) If the Chief Counsel determines that a violation has likely occurred, the Chief Counsel may issue a Notice of Violation to the party.\n\n(iv) If the Chief Counsel issues a Notice of Violation, he or she will prepare a case file with recommended actions. A record of any prior violations by the same party shall be forwarded with the case file.\n\n(6)  Notice of violation.  (i) The Notice of Violation will contain the following information:\n\n(A) The name and address of the party;\n\n(B) The alleged violation(s) and the applicable fuel consumption standard(s) violated;\n\n(C) The amount of the proposed penalty and basis for that amount;\n\n(D) The place to which, and the manner in which, payment is to be made;\n\n(E) A statement that the party may decline the Notice of Violation and that if the Notice of Violation is declined within 30 days of the date shown on the Notice of Violation, the party has the right to a hearing, if requested within 30 days of the date shown on the Notice of Violation, prior to a final assessment of a penalty by a Hearing Officer; and\n\n(F) A statement that failure to either pay the proposed penalty or to decline the Notice of Violation and request a hearing within 30 days of the date shown on the Notice of Violation will result in a finding of violation by default and that NHTSA will proceed with the civil penalty in the amount proposed on the Notice of Violation without processing the violation under the hearing procedures set forth in this subpart.\n\n(ii) The Notice of Violation may be delivered to the party by\u2014\n\n(A) Mailing to the party (certified mail is not required);\n\n(B) Use of an overnight or express courier service; or\n\n(C) Facsimile transmission or electronic mail (with or without attachments) to the party or an employee of the party.\n\n(iii) At any time after the Notice of Violation is issued, NHTSA and the party may agree to reach a compromise on the payment amount.\n\n(iv) Once a penalty amount is paid in full, a finding of \u201cresolved with payment\u201d will be entered into the case file.\n\n(v) If the party agrees to pay the proposed penalty, but has not made payment within 30 days of the date shown on the Notice of Violation, NHTSA will enter a finding of violation by default in the matter and NHTSA will proceed with the civil penalty in the amount proposed on the Notice of Violation without processing the violation under the hearing procedures set forth in this subpart.\n\n(vi) If within 30 days of the date shown on the Notice of Violation a party fails to pay the proposed penalty on the Notice of Violation, and fails to request a hearing, then NHTSA will enter a finding of violation by default in the case file, and will assess the civil penalty in the amount set forth on the Notice of Violation without processing the violation under the hearing procedures set forth in this subpart.\n\n(vii) NHTSA's order assessing the civil penalty following a party's default is a final agency action.\n\n(7)  Hearing Officer.  (i) If a party timely requests a hearing after receiving a Notice of Violation, a Hearing Officer shall hear the case.\n\n(ii) The Hearing Officer will be appointed by the NHTSA Administrator, and is solely responsible for the case referred to him or her. The Hearing Officer shall have no other responsibility, direct or supervisory, for the investigation of cases referred for the assessment of civil penalties. The Hearing Officer shall have no duties related to the light-duty fuel economy or medium- and heavy-duty fuel efficiency programs.\n\n(iii) The Hearing Officer decides each case on the basis of the information before him or her.\n\n(8)  Initiation of action before the Hearing Officer.  (i) After the Hearing Officer receives the case file from the Chief Counsel, the Hearing Officer notifies the party in writing of\u2014\n\n(A) The date, time, and location of the hearing and whether the hearing will be conducted telephonically or at the DOT Headquarters building in Washington, DC;\n\n(B) The right to be represented at all stages of the proceeding by counsel as set forth in paragraph (b)(9) of this section; and\n\n(C) The right to a free copy of all written evidence in the case file.\n\n(ii) On the request of a party, or at the Hearing Officer's direction, multiple proceedings may be consolidated if at any time it appears that such consolidation is necessary or desirable.\n\n(9)  Counsel.  A party has the right to be represented at all stages of the proceeding by counsel. A party electing to be represented by counsel must notify the Hearing Officer of this election in writing, after which point the Hearing Officer will direct all further communications to that counsel. A party represented by counsel bears all of its own attorneys' fees and costs.\n\n(10)  Hearing location and costs.  (i) Unless the party requests a hearing at which the party appears before the Hearing Officer in Washington, DC, the hearing may be held telephonically. In Washington, DC, the hearing is held at the headquarters of the U.S. Department of Transportation.\n\n(ii) The Hearing Officer may transfer a case to another Hearing Officer at a party's request or at the Hearing Officer's direction.\n\n(iii) A party is responsible for all fees and costs (including attorneys' fees and costs, and costs that may be associated with travel or accommodations) associated with attending a hearing.\n\n(11)  Hearing procedures.  (i) There is no right to discovery in any proceedings conducted pursuant to this subpart.\n\n(ii) The material in the case file pertinent to the issues to be determined by the Hearing Officer is presented by the Chief Counsel or his or her designee.\n\n(iii) The Chief Counsel may supplement the case file with information prior to the hearing. A copy of such information will be provided to the party no later than three business days before the hearing.\n\n(iv) At the close of the Chief Counsel's presentation of evidence, the party has the right to examine respond to and rebut material in the case file and other information presented by the Chief Counsel. In the case of witness testimony, both parties have the right of cross-examination.\n\n(v) In receiving evidence, the Hearing Officer is not bound by strict rules of evidence. In evaluating the evidence presented, the Hearing Officer must give due consideration to the reliability and relevance of each item of evidence.\n\n(vi) At the close of the party's presentation of evidence, the Hearing Officer may allow the introduction of rebuttal evidence that may be presented by the Chief Counsel.\n\n(vii) The Hearing Officer may allow the party to respond to any rebuttal evidence submitted.\n\n(viii) After the evidence in the case has been presented, the Chief Counsel and the party may present arguments on the issues in the case. The party may also request an opportunity to submit a written statement for consideration by the Hearing Officer and for further review. If granted, the Hearing Officer shall allow a reasonable time for submission of the statement and shall specify the date by which it must be received. If the statement is not received within the time prescribed, or within the limits of any extension of time granted by the Hearing Officer, it need not be considered by the Hearing Officer.\n\n(ix) A verbatim transcript of the hearing will not normally be prepared. A party may, solely at its own expense, cause a verbatim transcript to be made. If a verbatim transcript is made, the party shall submit two copies to the Hearing Officer not later than 15 days after the hearing. The Hearing Officer shall include such transcript in the record.\n\n(12)  Determination of violations and assessment of civil penalties.  (i) Not later than 30 days following the close of the hearing, the Hearing Officer shall issue a written decision on the Notice of Violation, based on the hearing record. This may be extended by the Hearing officer if the submissions by the Chief Counsel or the party are voluminous. The decision shall address each alleged violation, and may do so collectively. For each alleged violation, the decision shall find a violation or no violation and provide a basis for the finding. The decision shall set forth the basis for the Hearing Officer's assessment of a civil penalty, or decision not to assess a civil penalty. In determining the amount of the civil penalty, the gravity of the violation, the size of the violator's business, the violator's history of compliance with applicable fuel consumption standards, the actual fuel consumption performance related to the applicable standard, the estimated cost to comply with the regulation and applicable standard, the quantity of vehicles or engines not complying, and the effect of the penalty on the violator's ability to continue in business. The assessment of a civil penalty by the Hearing Officer shall be set forth in an accompanying final order. The Hearing Officer's written final order is a final agency action.\n\n(ii) If the Hearing Officer assesses civil penalties in excess of $1,000,000, the Hearing Officer's decision shall contain a statement advising the party of the right to an administrative appeal to the Administrator within a specified period of time. The party is advised that failure to submit an appeal within the prescribed time will bar its consideration and that failure to appeal on the basis of a particular issue will constitute a waiver of that issue in its appeal before the Administrator.\n\n(iii) The filing of a timely and complete appeal to the Administrator of a Hearing Officer's order assessing a civil penalty shall suspend the operation of the Hearing Officer's penalty, which shall no longer be a final agency action.\n\n(iv) There shall be no administrative appeals of civil penalties assessed by a Hearing Officer of less than $1,000,000.\n\n(13)  Appeals of civil penalties in excess of $1,000,000.  (i) A party may appeal the Hearing Officer's order assessing civil penalties over $1,000,000 to the Administrator within 21 days of the date of the issuance of the Hearing Officer's order.\n\n(ii) The Administrator will review the decision of the Hearing Officer de novo, and may affirm the decision of the hearing officer and assess a civil penalty, or\n\n(iii) The Administrator may\u2014\n\n(A) Modify a civil penalty;\n\n(B) Rescind the Notice of Violation; or\n\n(C) Remand the case back to the Hearing Officer for new or additional proceedings.\n\n(iv) In the absence of a remand, the decision of the Administrator in an appeal is a final agency action.\n\n(14)  Collection of assessed or compromised civil penalties.  (i) Payment of a civil penalty, whether assessed or compromised, shall be made by check, postal money order, or electronic transfer of funds, as provided in instructions by the agency. A payment of civil penalties shall not be considered a request for a hearing.\n\n(ii) The party must remit payment of any assessed civil penalty to NHTSA within 30 days after receipt of the Hearing Officer's order assessing civil penalties, or, in the case of an appeal to the Administrator, within 30 days after receipt of the Administrator's decision on the appeal.\n\n(iii) The party must remit payment of any compromised civil penalty to NHTSA on the date and under such terms and conditions as agreed to by the party and NHTSA. Failure to pay may result in NHTSA entering a finding of violation by default and assessing a civil penalty in the amount proposed in the Notice of Violation without processing the violation under the hearing procedures set forth in this part.\n\n(c)  Changes in corporate ownership and control.  Manufacturers must inform NHTSA of corporate relationship changes to ensure that credit accounts are identified correctly and credits are assigned and allocated properly.\n\n(1) In general, if two manufacturers merge in any way, they must inform NHTSA how they plan to merge their credit accounts. NHTSA will subsequently assess corporate fuel consumption and compliance status of the merged fleet instead of the original separate fleets.\n\n(2) If a manufacturer divides or divests itself of a portion of its automobile manufacturing business, it must inform NHTSA how it plans to divide the manufacturer's credit holdings into two or more accounts. NHTSA will subsequently distribute holdings as directed by the manufacturer, subject to provision for reasonably anticipated compliance obligations.\n\n(3) If a manufacturer is a successor to another manufacturer's business, it must inform NHTSA how it plans to allocate credits and resolve liabilities per 49 CFR part 534."]], "truncated": false, "filtered_table_rows_count": 59, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, title_number, title_name, chapter, subchapter, part_number, part_name, subpart, subpart_name, section_number, section_heading, agency, authority, source_citation, amendment_citations, full_text from cfr_sections where \"part_number\" = :p0 order by section_id limit 101", "params": {"p0": "535"}}, "facet_results": {"title_number": {"name": "title_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=535", "results": [{"value": 46, "label": 46, "count": 49, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&title_number=46", "selected": false}, {"value": 49, "label": 49, "count": 10, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&title_number=49", "selected": false}], "truncated": false}, "agency": {"name": "agency", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=535", "results": [{"value": "FMC", "label": "FMC", "count": 49, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&agency=FMC", "selected": false}, {"value": "NHTSA", "label": "NHTSA", "count": 10, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&agency=NHTSA", "selected": false}], "truncated": false}, "part_number": {"name": "part_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=535", "results": [{"value": "535", "label": "535", "count": 59, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json", "selected": true}], "truncated": false}}, "suggested_facets": [{"name": "title_name", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&_facet=title_name"}, {"name": "chapter", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&_facet=chapter"}, {"name": "subchapter", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&_facet=subchapter"}, {"name": "part_name", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&_facet=part_name"}, {"name": "subpart", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&_facet=subpart"}, {"name": "subpart_name", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&_facet=subpart_name"}, {"name": "amendment_citations", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=535&_facet=amendment_citations"}], "next": null, "next_url": null, "private": false, "allow_execute_sql": true, "query_ms": 2576.726926025003, "source": "Federal Register API & Regulations.gov API", "source_url": "https://www.federalregister.gov/developers/api/v1", "license": "Public Domain (U.S. Government data)", "license_url": "https://www.regulations.gov/faq"}