Regulatory Requirements and Recordkeeping for TPEM Hardship Relief

Requirements for hardship relief depend on the type of relief.

• Technical or engineering hardship relief
• Economic hardship relief

Technical or Engineering Hardship Relief

This type of relief is available for TPEM participants who are not able to bring their equipment into compliance with Tier 4 standards due to issues of an engineering or technical nature.

Before applying for technical or engineering hardship relief, be sure to read all applicable regulations.

General Eligibility

• Used only for equipment models for which you, or an affiliated company, do not also produce the engine;
• Used within the specified seven year period for the applicable category (that is, technical relief does not extend the amount of time TPEM allowances are available); and
• For an impending hardship due to "extreme and unusual circumstances that are clearly outside your control and that could not have been avoided with reasonable discretion.”

Eligibility for Percent of Production Allowance

• Must exhaust their percent of production allowance for the applicable power category before using any additional allowances granted under hardship relief.
• May not exceed 200% of additional allowances for each power category.
• May use the additional allowances only for the specific equipment model(s) covered by their request.

Eligibility for Small Volume Allowance

• May not obtain or use relief under both the percent of production allowance and the small volume allowance for the same power category.
• Must exhaust their small volume allowance for the applicable power category before using any additional allowances granted under hardship relief.
• May not exceed 2,000 units of additional allowances.
• May have EPA lift their TPEM allowance’s annual limits (as part of the approved relief) instead of, or in addition to, increasing the total number of allowances.
• May use the additional allowances only for the specific equipment model(s) covered by your request.

• Of all equipment produced under technical hardship relief (as well as other TPEM-related records);
• For at least five full years after the final year in which allowances are available in each power category.

• 40 CFR Part 1039.625(h)

Economic Hardship Relief

This type of relief is available for TPEM participants who are not able to bring their equipment into compliance with Tier 4 standards due to economic hardship.

Economic hardship relief is available for a maximum of 12 months. If you qualify as a small-volume manufacturer, your relief may last for up to 24 months.

Before applying for technical or engineering hardship relief, be sure to read the all regulations at 40 CFR Part 1039.630 and 40 CFR Part 1068.255 .

Eligibility Requirements

• Show that they have or will have used up their regular TPEM allowances before using any additional allowances approved as hardship relief.
• Request relief before they are in violation of TPEM limits and requirements.
• Show that they are not at fault for the impending violation.
• Show that they would face serious economic hardship if EPA does not grant relief.
• Not manufacture the engine used in the equipment for which you are requesting relief.

EPA's Consideration

• May impose other conditions, such as the use of engines meeting standards less stringent than Tier 4 or to recover the lost environmental benefit.
• Will consider all relevant factors, including:
  • The size of your request (the number of extra allowances you are requesting).
  • The size of your company and your ability to endure hardship.
  • The amount of time you had to redesign your equipment to accommodate Tier 4 engines.
  • Whether there was any breach of contract by a supplier.
  • The potential for market disruption.

Recordkeeping Requirements

If you receive economic hardship relief, you must keep records for at least for eight years.

• 40 CFR Part 1068.25(b)