CONDENSED VERSION OF THE EPA POLICY FOR KIT CARS
(this applies primarily to businesses)
Reading federal codes and policies can be boring and frustrating, but for those businesses engaged in furnishing parts, components, or automobiles for use on the federal highways there are some exacting requirements and stiff penalties for ignoring them. As a business furnishing automobiles under these conditions I studied the policy carefully, had several conferences with EPA in Washington, DC as well as California Air Resources Board (CARB) and have religiously conducted our business in accordance with those requirements.
For information purposes only I have condensed the requirements to those that specifically apply to our operation of building cars. You may review the unaltered version at http://www.epa.gov/otaq/imports/kitcar.htm
This is the only acceptable guidance that EPA will acknowledge and is still current. It is very clear and is achievable under most conditions we would ever embrace. There are key elements in that guideline that constitute the heart of the matter and I will paraphrase them here:
An assembled kit car or complete kit car package which meets the following guidelines will be considered to be a rebuilt vehicle of a previously certified configuration and will be considered to be covered by that configuration's original EPA certificate of conformity. (This is a very important condition)
The components of the drive train (engine, transmission, differential) must be exclusively or substantially used and/or rebuilt. Regardless of the combination of new and used components, the engine must be used or used and rebuilt. The engine block and cylinder head(s) must be used, other components of the engine may be new. "Used" means the component has been in a vehicle that has been titled to an ultimate purchaser. A rebuilt component is defined as a used component which has been refurbished with new or other used parts.
Kit vehicles must: (1) have the same transmission configuration (i.e., manual, automatic, semi-automatic, number of forward gears, and shift calibration) as the originally certified configuration; and (2) consistent with AC 17F, have an N/V ratio (speed of vehicle in miles per hour/speed of engine in revolutions per minute) which matches the N/V ratio of the originally certified configuration within three (3) percent in every gear.*
Except with regard to kit vehicles meeting the guidelines at "2" above; an individual or firm that assembles kits for hire or resale, that produces assembled kit cars for resale or that produces complete kit car packages for resale will be considered to be a manufacturer of new motor vehicles under the Clean Air Act. Such manufacturers and their vehicles are subject to all applicable regulations under the Act including civil penalties of up to $25,000 per vehicle for each new motor vehicle distributed in commerce, sold, offered for sale, or introduced, or delivered for introduction, into commerce, unless such vehicle is covered by a certificate of conformity issued by EPA. (This refers back to the first paragraph)
A "certified configuration" is an engine or engine chassis design which has been "certified" (approved) by EPA prior to the production of vehicles with that design. Generally, the manufacturer submits an application for certification of the designs of each engine or vehicle it proposes to manufacture prior to production. The application includes design requirements for all emission related parts, engine calibrations, and other design parameters for each different type of engine (in heavy-duty vehicles), or engine chassis combination (in light-duty vehicles). EPA then "certifies" each acceptable design for use, in vehicles of the upcoming model year.
Another situation recently brought to EPA's attention involves the offering for sale of used foreign-built engines. These engines are often not covered by a certified configuration for any vehicle sold in this country. In such a case, there is no way to install such an engine legally. EPA has recently brought enforcement actions against certain parties who have violated the tampering prohibition by performing illegal engine switches. (This prohibits the use of JDM and similar engines)
While EPA does not require these programs (State Emission laws) to fail engine switched vehicles which are not in compliance with federal policy, the Agency does strongly recommend that these programs set their requirements so as to be consistent with the federal law. State or local programs which pass illegally engine switched vehicles may mislead federally regulated parties into believing that engine switching is allowed by federal law. (This means that even if a state allows registration of illegal cars it does not exonerate the company providing them)
Now you can see why we spend such an inordinate time wiring and equipping our cars to achieve "conformity". If even a single element of the conforming driveline is altered or defeated the "tampering prohibition" is violated and you are subject to the fines and penalties dictated by EPA. One EPA official with whom I spoke stated that a simple gesture of disconnecting the Check Engine Light to conceal the presence of a code is tampering and subject to the penalties. I won't even discuss the violations that occur daily by individuals.
EPA officials have advised me they have no intentions of pursuing individuals; however, they said that companies engaged in any element of the kit car industry who violate these conforming configurations will be pursued and will face penalties. They stated an example: one tampering violation is an "event", an event is a car. The penalty for businesses is $10,000 and to make matters worse that can be imposed "per day" for every day the car is registered and on the road. i.e. one year for one car is $365,000. There is no statute of limitations of how many years back they can search.
This can be supported by the famous citation of Jesse James the notable motorcycle guru who was fined for altering the engines of motorcycles from their conforming configuration. The period of time audited was 10 years and that involved numerous motorcycles. The initial fine was as stated above, but was later reduced to $275,000. He closed his business shortly thereafter. Boyd Coddington got nailed for a variety of violations for cars he had built in his shop.
So this is why we must deliver each car to conform to the configuration appropriate to the model and year used in the conversion. It also assures that your car can be registered in areas where emissions are checked which can also affect future sale of your car.
SUMMARY
An assembled kit car will be considered to be a rebuilt vehicle of a previously certified configuration and will be considered to be covered by that configuration's original EPA certificate of conformity.
The components of the drive train (engine, transmission, differential) must be exclusively or substantially used and/or rebuilt. The engine block and cylinder head (s) must be used, other components of the engine may be new.
Kit vehicles must have the same transmission configuration as the originally certified configuration
a company that produces assembled kit cars for resale will be considered to be a manufacturer of new motor vehicles under the Clean Air Act. Such manufacturers and their vehicles are subject to all applicable regulations under the Act including civil penalties of up to $25,000 per vehicle for each new motor vehicle distributed unless such vehicle is covered by a certificate of conformity issued by EPA.
A "certified configuration" is an engine or engine chassis design which has been "certified" (approved) by EPA
the offering for sale of used foreign-built engines such as a JDM is prohibited. In such a case, there is no way to install such an engine legally. EPA has recently brought enforcement actions against certain parties who have violated the tampering prohibition by performing illegal engine switches.
State or local programs (like California SB100) which pass illegally engine switched vehicles may mislead federally regulated parties (manufacturers) into believing that engine switching is allowed by federal law. (This means that even if a state allows registration of illegal cars it does not exonerate the company providing them from the penalties imposed by EPA)
companies engaged in any element of the kit car industry who violate these conforming configurations will be pursued and will face penalties. They stated an example: one tampering violation is an "event", an event is a car. The penalty for businesses is $10,000 and to make matters worse that can be imposed "per day" for every day the car is registered and on the road. i.e. one year for one car is $365,000