86.1838-01—Small volume manufacturer certification procedures.
(a)
The small-volume manufacturers certification procedures described in paragraphs (b) and (c) of this section are optional. Small-volume manufacturers may use these optional procedures to demonstrate compliance with the general standards and specific emission requirements contained in this subpart.
(b) Eligibility requirements—
(1) Small volume manufacturers.
The optional small-volume manufacturers certification procedures apply to LDV/Ts and MDPVs produced by manufacturers with sales in all states and territories of the United States, including all vehicles and engines imported under provisions of 40 CFR 85.1505 and 85.1509 (for the model year in which certification is sought) of fewer than 15,000 units (LDV/Ts, MDPVs, heavy-duty vehicles and heavy-duty engines combined).
(ii)
If the aggregated sales in all states and territories of the United States of the manufacturer, as determined in paragraph (b)(3) of this section are fewer than 15,000 units, the manufacturer (or each manufacturer in the case of manufacturers in an aggregated relationship) may certify under the provisions of paragraph (c) of this section.
(2) Small volume test groups.
(i)
If the aggregated sales in all states and territories of the United States, as determined in paragraph (b)(3) of this section are equal to or greater than 15,000 units, then the manufacturer (or each manufacturer in the case of manufacturers in an aggregated relationship) will be allowed to certify a number of units under the small volume test group certification procedures in accordance with the criteria identified in paragraphs (b)(2)(ii) through (iv) of this section.
(ii)
If there are no additional manufacturers in an aggregated relationship meeting the provisions of paragraph (b)(3) of this section, then the manufacturer may certify whole test groups whose total aggregated sales (including heavy-duty engines) are less than 15,000 units using the small volume provisions of paragraph (c) of this section.
(iii)
If there is an aggregated relationship with another manufacturer which satisfies the provisions of paragraph (b)(3) of this section, then the following provisions shall apply:
(A)
If none of the manufacturers own 50 percent or more of another manufacturer in the aggregated relationship, then each manufacturer may certify whole test groups whose total aggregated sales (including heavy-duty engines) are less than 15,000 units using the small volume provisions of paragraph (c) of this section.
(B)
If any of the manufacturers own 50 percent or more of another manufacturer in the aggregated relationship, then the limit of 14,999 units must be shared among the manufacturers in such a relationship. In total for all the manufacturers involved in such a relationship, aggregated sales (including heavy-duty engines) of up to 14,999 units may be certified using the small volume provisions of paragraph (c) of this section. Only whole test groups shall be eligible for small volume status under paragraph (c) of this section.
(iv)
In the case of a joint venture arrangement (50/50 ownership) between two manufacturers, each manufacturer retains its eligibility for 14,999 units under the small-volume test group certification procedures, but the joint venture must draw its maximum 14,999 units from the units allocated to its parent manufacturers. Only whole test groups shall be eligible for small volume status under paragraph (c) of this section.
(3) Sales aggregation for related manufacturers.
The projected or actual sales from different firms shall be aggregated in the following situations:
(i)
Vehicles and/or engines produced by two or more firms, one of which is 10 percent or greater part owned by another;
(ii)
Vehicles and/or engines produced by any two or more firms if a third party has equity ownership of 10 percent or more in each of the firms;
(iii)
Vehicles and/or engines produced by two or more firms having a common corporate officer(s) who is (are) responsible for the overall direction of the companies;
(iv)
Vehicles and/or engines imported or distributed by all firms where the vehicles and/or engines are manufactured by the same entity and the importer or distributor is an authorized agent of the entity.
(c)
Small-volume manufacturers and/or small volume test groups shall demonstrate compliance with the all applicable sections of this subpart except as provided in paragraphs (c)(1) and (2) of this section. Small volume manufacturers and/or test groups may optionally meet the following requirements:
(1)
Durability demonstration. Use the provisions of § 86.1826-01 rather than the requirements of §§ 86.1823, 86.1824, and/or 86.1825.
(2) In-use verification testing.
See § 86.1845-01 for applicability of in-use verification testing to small volume manufacturers and small volume test groups except as noted in this paragraph (c)(2).
(i)
Small volume in-use verification test vehicles may be procured from customers or may be owned by, or under the control of the manufacturer, provided that the vehicle has accumulated mileage in typical operation on public streets and has received typical maintenance.
(ii)
In lieu of procuring small volume in-use verification test vehicles that have a minimum odometer reading of 50,000 miles, a manufacturer may demonstrate to the satisfaction of the Agency that, based on owner survey data, the average mileage accumulated after 4 years for a given test group is less than 50,000 miles. The Agency may approve a lower minimum odometer reading based on such data.
(iii)
The provisions of §§ 86.1845-01(c)(2) and 86.1845-04(c)(2) that require one vehicle of each test group during high mileage in-use verification testing to have a minimum odometer mileage of 75 percent of the full useful life mileage for Tier 1 and NLEV LDV/Ts, or 90,000 (or 105,000) miles for Tier 2 and interim non-Tier 2 vehicles, do not apply.
(iv)
Manufacturers intending to use the provisions of paragraphs (c)(2)(i) or (ii) of this section shall submit to the Agency, prior to the certification of the subject vehicles, a plan detailing how these provisions will be met.