§ 86.1860-17 — How to comply with the Tier 3 and Tier 4 fleet average standards.

40 CFR § 86.1860-17

• Title: Title 40: Protection of Environment
• Part: Part 86: Control of Emissions from New and In-Use Highway Vehicles and Engines
• Source: eCFR (current through May 19, 2026)

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86.1860-17 How to comply with the Tier 3 and Tier 4 fleet average standards.

(a) You must show that you meet the applicable Tier 3 fleet average NMOG+NOX standards from §§ 86.1811-17 and 86.1816-18, the Tier 3 fleet average evaporative emission standards from § 86.1813-17, and the Tier 4 fleet average NMOG+NOX standards from § 86.1811-27 as described in this section. Note that separate fleet average calculations are required for Tier 3 FTP and SFTP exhaust emission standards under § 86.1811-17.

(b) Calculate your fleet average value for each model year for all vehicle models subject to a separate fleet average standard using the following equation, rounded to the nearest 0.001 g/mile for NMOG+NOX emissions and the nearest 0.001 g/test for evaporative emissions:

Equation 1 to Paragraph (b) Where: i = A counter associated with each separate test group or evaporative family. b = The number of separate test groups or evaporative families from a given averaging set to which you certify your vehicles. Ni = The actual nationwide sales for the model year for test group or evaporative family i. Include allowances for evaporative emissions as described in § 86.1813. FELi = The FEL selected for test group or evaporative family i. Disregard any separate standards that apply for in-use testing or for testing under high-altitude conditions. Ntotal = The actual nationwide sales for the model year for all vehicles from the averaging set, except as described in paragraph (c) of this section. The pool of vehicle models included in Ntotal may vary by model year, and it may be different for evaporative standards, FTP exhaust standards, and SFTP exhaust standards in a given model year.

(c) Do not include any of the following vehicles to calculate your fleet-average value:

(1) Vehicles that you do not certify to the standards of this part because they are permanently exempted under 40 CFR part 85 or part 1068.

(2) Exported vehicles.

(3) Vehicles excluded under § 86.1801.

(d) Except as specified in paragraph (e) of this section, your calculated fleet-average value may not exceed the corresponding fleet-average standard for the model year.

(e) You may generate or use emission credits related to your calculated fleet-average value as follows:

(1) You may generate emission credits as described in § 86.1861 if your fleet-average value is below the corresponding fleet-average standard.

(2) You may use emission credits as described in § 86.1861 if your fleet-average value is above the corresponding fleet-average standard. Except as specified in paragraph (e)(3) of this section, you must use enough credits for each model year to show that your adjusted fleet average value does not exceed the fleet-average standard.

(3) The following provisions apply if you do not have enough emission credits to demonstrate compliance with a fleet-average standard in a given model year:

(i) You may have a credit deficit for up to three model years within an averaging set under § 86.1861-17(c). You may not bank emission credits with respect to a given emission standard during a model year in which you have a credit deficit in the same averaging set. If you fail to meet the fleet-average standard for four consecutive model years, the vehicles causing you to exceed the fleet-average standard will be considered not covered by the certificate of conformity. You will be subject to penalties on an individual-vehicle basis for sale of vehicles not covered by a certificate of conformity.

(ii) You must notify us in writing how you plan to eliminate the credit deficit within the specified time frame. If we determine that your plan is unreasonable or unrealistic, we may deny an application for certification for a test group or evaporative family if its bin standard or FEL would increase your credit deficit. We may determine that your plan is unreasonable or unrealistic based on a consideration of past and projected use of specific technologies, the historical sales mix of your vehicle models, your commitment to limit sales of higher-emission vehicles, and expected access to traded credits. We may also consider your plan unreasonable if your fleet-average emission level increases relative to the first model year of a credit deficit or any later model year. We may require that you send us interim reports describing your progress toward resolving your credit deficit over the course of a model year.

(f) If the applicable bin standards and FELs for all your vehicle models are at or below a corresponding fleet-average standard for a given model year, and you do not want to generate emission credits, you may omit the calculations described in this section.

(g) For purposes of calculating the statute of limitations, the following actions are all considered to occur at the expiration of the deadline for offsetting a deficit as specified in paragraph (e)(3) of this section:

(1) Failing to meet the requirements of paragraph (e)(3) of this section.

(2) Failing to satisfy the conditions upon which a certificate was issued relative to offsetting a deficit.

(3) Selling, offering for sale, introducing or delivering into U.S. commerce, or importing vehicles that are found not to be covered by a certificate as a result of failing to offset a deficit.

[79 FR 23735, Apr. 28, 2014, as amended at 89 FR 28190, Apr. 18, 2024]