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40 CFR § 1039.740 - What restrictions apply for using emission credits?

---
identifier: "/us/cfr/t40/s1039.740"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "40 CFR § 1039.740 - What restrictions apply for using emission credits?"
title_number: 40
title_name: "Protection of Environment"
section_number: "1039.740"
section_name: "What restrictions apply for using emission credits?"
chapter_name: "ENVIRONMENTAL PROTECTION AGENCY"
subchapter_number: "U"
subchapter_name: "AIR POLLUTION CONTROLS"
part_number: "1039"
part_name: "CONTROL OF EMISSIONS FROM NEW AND IN-USE NONROAD COMPRESSION-IGNITION ENGINES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 7401-7671q."
regulatory_source: "69 FR 39213, June 29, 2004, unless otherwise noted."
cfr_part: "1039"
---

# 1039.740 What restrictions apply for using emission credits?

The following restrictions apply for using emission credits:

(a) *Averaging sets.* Emission credits may be exchanged only within an averaging set. For emission credits generated by Tier 4 engines, there are two averaging sets—one for engines at or below 560 kW and another for engines above 560 kW.

(b) *Emission credits from earlier tiers of standards.* (1) For purposes of ABT under this subpart, you may not use emission credits generated from engines subject to emission standards identified in appendix I of this part, except as specified in § 1039.102(d)(1) or as follows:

| If the maximum power of the credit-generating engine is * * * | And it was certified to the following standards identified in appendix I of this part * * * | Then you may use those banked credits for the following Tier 4 engines * * * |
| --- | --- | --- |
| (i) kW < 19 | Tier 2 | kW < 19. |
| (ii) 19 ≤ kW < 37 | Tier 2 | kW ≥ 19. |
| (iii) 37 ≤ kW ≤ 560 | Tier 3 | kW ≥ 19. |
| (iv) kW > 560 | Tier 2 | kW ≥ 19. |

(2) Emission credits generated from marine engines certified to the standards identified in appendix I of this part for land-based engines may not be used under this part.

(c) *NO*<sub>X</sub> *and NO*<sub>X</sub>* + NMHC emission credits.* You may use NO<sub>X</sub> emission credits without adjustment to show compliance with NO<sub>X</sub> + NMHC standards. You may use NO<sub>X</sub> + NMHC emission credits to show compliance with NO<sub>X</sub> standards, but you must adjust the NO<sub>X</sub> + NMHC emission credits downward by twenty percent when you use them, as shown in the following equation:

NO<sub>X</sub> emission credits = (0.8) × (NO<sub>X</sub> + NMHC emission credits).

(d) *Other restrictions.* Other sections of this part specify additional restrictions for using emission credits under certain special provisions.

[69 FR 39213, June 29, 2004, as amended at 70 FR 40464, July 13, 2005; 81 FR 74140, Oct. 25, 2016; 86 FR 34506, June 29, 2021]