New Phase 3 Engine Standards
Affecting Retailers and Importers of
Lawn and Garden Equipment
The Environmental Protection Agency (EPA) has adopted new
regulations for nonroad spark-ignition engines that operate at or
below 19 kW (www.epa.gov/otaq/regs/nonroad/marinesi*equipld/bond*
frm.pdf). These engines, often called Small SI engines, are used in
lawn and garden equipment and a wide range of other residential and
commercial equipment. This fact sheet answers questions about these
new standards for retailers, dealers, distributors and importers of this
equipment.
What are the new regulations, and when do they go into effect?
The new regulations put in place a set of more stringent exhaust standards and
establish new evaporative emission standards for the fuel tanks and fuel lines used in
this equipment. We refer to these as the Phase 3 standards. They apply starting in the
2011 model year for Class II engines (above 225 cc) and in the 2012 model year for
Class I engines (less than 225 cc, used in nonhandheld applications). The Phase 3
standards generally start in 2010 for handheld products.
Who should read this fact sheet?
Manufactures, retailers, dealers and distributors of Small SI engines should read this
fact sheet to learn about their responsibilities under the new regulations, and to learn
some practical steps to ensure compliance.
In the case of imported engines and equipment, this fact sheet is addressed primarily
to retailers that are not the importer of record. Because retailers that are the importer
of record are subject to all the requirements that apply for importers under the Clean
Air Act and the regulations, they have additional responsibilities beyond what we
describe in this fact sheet.
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
EPA-420-F-09-031
August 2009
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How do these new regulations impact U.S. manufacturers of Small SI engines?
In order to sell this equipment in the U.S., manufacturers must first apply to EPA for a certificate
of conformity (certificate). To obtain a certificate, manufacturers must perform tests and complete
a certification process to ensure they meet emission standards. Each engine covered by a certifi-
cate must have an EPA emission label that describes its certification status.
The new regulations also clarify that retailers, dealers, and distributors have responsibilities un-
der the Clean Air Act to ensure that Small SI engines conform to the regulations.
What are the general responsibilities of retailers, dealers and distributors under these
new regulations?
The new regulations clarify that it is a violation of the federal Clean Air Act to "cause someone
to commit a prohibited act," such as importing or manufacturing noncompliant engines, equip-
ment or regulated fuel-system components. For example, in certain circumstances we may hold
you responsible for causing the importation of uncertified engines or equipment. We may also
hold you responsible if the manufacturer failed to properly label the engines or equipment or if
they have not met other requirements under the regulations. We may assess a civil penalty of up
to $37,500 for each engine or piece of equipment in violation.
In assessing whether you have committed a violation, we will consider your particular efforts or
influence that may have caused or could have prevented the prohibited act from occurring.
Accordingly, you should take reasonable precautions to ensure that your suppliers and their
products comply fully with the regulations.
How can I ensure compliance?
You can take some or all of the following steps to confirm that you are not in violation by caus-
ing a prohibited act:
• Request copies of the EPA certificates of conformity before you commit to purchasing
engine-powered equipment,
• Review certification information on our web site at www.epa.gov/otaq/certdata.htm. This
web site identifies the engines and equipment models that have received a certificate of
conformity from EPA. EPA updates this information on a routine basis, but there can be
some lag time from when certificates are issues to when they are posted,
• Ask the manufacturer or importer to send a picture of the EPA emission label before you
purchase their products. You may also want to inspect shipped products to confirm that
proper emission labels are in place,
• Starting January 1, 2010 for 2010 model year products, the regulations require manufac-
turers or importers to post a bond for their products if they don't meet certain criteria.
Ask your supplier to show how they either have arranged for a bond or they qualify for an
exemption,
• Starting with 2010 model year products, manufacturers or importers must maintain a repair
network and meet other requirements to ensure compliance with warranty requirements.
Ask your supplier to show how they meet these requirements.
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What are the labeling requirements in the new regulations?
Emission labels are one of the most important tools for EPA or U.S. Customs inspectors to
determine whether products meet regulatory requirements. These labels can also help you avoid
a situation where you purchase products that do not conform to the regulations.
The new Phase 3 regulations require that engines, fuel-system components and evaporative
emission control systems must be properly labeled with permanent and legible labels to indicate
that they meet all applicable EPA requirements.
For the last several years, certified engines have included labels describing how they comply
with exhaust emission standards. This label contains basic information such as the manufactur-
er's name and EPA family name. Starting with the Phase 3 standards, manufacturers must also
include the regulatory useful life of the engine on the label. See the complete list of engine label
requirements for Phase 3 engines at §1054.135 (http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ec
fr&sid=670538974a7fa304d732ffc6067a8ef7&rgn=div8&view=text&node=40:32.0.1.1.8.2.1.11
&idno=40).
The equipment and fuel system components must also be labeled to demonstrate compliance
with evaporative emission standards. See §1060.135 (http://ecfr.gpoaccess.gov/cgi/t/text/text-
idx?c=ecfr&sid=670538974a7fa304d732ffc6067a8ef7&rgn=div8&view=text&node=40:32.0.1.1
,9.2.1.9
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Manufacturers or importers may in some circumstances look to retailers to help them meet the
requirement to maintain an adequate network of authorized repair centers. In any case, you
would do well to understand specifically how your suppliers intend to meet these requirements
related to their warranty service.
What are the bond requirements in the new regulations?
In some cases, the Phase 3 regulations require manufacturers or importers of certified engines
to post a bond to cover the cost of any potential compliance or enforcement actions under the
Clean Air Act. Manufacturers or importers are exempted from the bond requirement if they
have a specified level of fixed assets in the United States ($3 million, $6 million, or $10 million,
depending on the type of company) and they have a specified number of authorized service cen-
ters to respond to warranty claims and product recalls (100 service centers or one for every 5,000
engines, whichever is less). Manufacturers or importers that are not exempt will need to post
a bond to cover the potential costs of an emission'related recall or penalties. Where a retailer
is the importer of record for imported engines or equipment, the need for a bond may be deter-
mined based on the retailer's service centers and level of fixed assets,
EPA will require bonds of at least $500,000 before products may be introduced into U.S. com-
merce. The bond requirements apply for 2010 and later model year products that are introduced
in U.S. commerce starting January 1, 2010. For more detailed information on the bond require-
ments, see our bond fact sheet at www.epa.gov/otaq/certdat2.htm.
Where can I get more information?
More information on these regulations can be found on our web site at www.epa.gov/otaq/equip-
ld.htm. If you have questions, you may contact us at:
U.S. Environmental Protection Agency
Office of Transportation and Air Quality
Compliance and Innovative Strategies Division
2000 Traverwood
Ann Arbor, MI 48108
Phone: 734.214-4343
Email: complianceinfo@epa.gov
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