1. (a) The following exemptions shall apply to specified motor vehicles or motor vehicle engines:

   1. (1) Motor vehicles or motor vehicle engines which are registered as farm vehicles with the Motor Vehicle Division of the Texas Department of Highways and Public Transportation and are intended solely or primarily for use on a farm or ranch; or are intended solely or primarily for legally sanctioned motor competitions, for research and development uses, or for instruction in a bona fide vocational training program where the use of a system or device would be detrimental to the purpose for which the vehicle or engine is intended to be used are exempt from the provisions of §114.20(a), (b), and (d) of this title (relating to Maintenance and Operation of Air Pollution Control Systems or Devices Used To Control Emissions from Motor Vehicles).
   2. (2) Motor vehicles or motor vehicle engines intended solely or primarily for research and development uses, or for instruction in a bona fide vocational training program where the introduction of leaded gasoline or the circumvention of an emission control system or device is necessary for the intended purposes of the program are exempt from the provisions of §114.20(e) of this title.

2. (b) Vehicles belonging to members of the U.S. Department of Defense (DoD) participating in the DoD Privately Owned Vehicle Import Program or other persons being transferred to a foreign country are exempt from the provisions of §114.20(a), (b), and (d) of this title if the following conditions are met:

   1. (1) Only the catalytic converter, oxygen sensor, and/or the fuel filler inlet restrictor are removed from the vehicle.
   2. (2) The vehicle is delivered to the appropriate port for overseas shipment within 30 days after the emission control device(s) is removed.
   3. (3) If the vehicle is returned to the United States, all systems or devices used to control emissions from the vehicle are restored to good operable condition within 30 days of pick-up of the vehicle from the appropriate port of importation.

   4. (4) Documentation shall be kept with the vehicle at all times while the vehicle is operated in Texas which provides sufficient information to demonstrate compliance with all appropriate qualifications and conditions of this exemption, including the following:

      1. (A) the unique vehicle identification number (VIN) of the subject vehicle;
      2. (B) the agency, company, or organization which employs the owner of the subject vehicle;
      3. (C) the country to which the owner of the subject vehicle is being transferred;
      4. (D) the dates when applicable alterations were performed on the subject vehicle;
      5. (E) the date when the subject vehicle is scheduled to be delivered to the appropriate port for shipment out of the United States; and
      6. (F) the date when the subject vehicle is picked up from the port of importation upon returning to the United States.

3. (c) Any person owning or operating a motor vehicle or motor vehicle engine may apply to the executive director for an exclusion from the provisions of §114.20(a) and (b) of this title. Such an exclusion may be granted if the following conditions are met.

   1. (1) The application shall include the applicant's full name, business address, and telephone number. A single vehicle and vehicle engine shall be specified in the application and must be identified by the unique vehicle identification number assigned to that vehicle by the manufacturer and by the manufacturer's engine family number.
   2. (2) The air pollution control systems or devices on the vehicle or vehicle engine which would be covered by the exclusion shall be specified in the application.

   3. (3) A demonstration shall be made in the application that provides adequate justification for special consideration of the specified vehicle under the provisions of this chapter. This demonstration shall include, but shall not be limited to, the following information necessary to determine that the use of certain pollution control devices or systems on the vehicle to be covered by the exclusion would result in a clear danger to persons or property or would be detrimental to the purpose for which the vehicle is intended to be used:

      1. (A) Proposed use of the vehicle and description of adverse circumstances;
      2. (B) Locations where the vehicle will primarily be operated;
      3. (C) Estimated length of time the vehicle is expected to be operated in adverse circumstances;
      4. (D) Estimated percentages of the time the vehicle will primarily be operated in adverse circumstances and on public roadways;
      5. (E) History of problems related to the use of specified control devices or systems;
      6. (F) Evidence of the potential hazards and consequences of operating the vehicle for the intended use with the identified control devices or systems in place.
   4. (4) The applicant shall agree and ensure that a copy of the exclusion shall be kept with the vehicle at all times and shall be available for inspection by representatives of the Texas Natural Resource Conservation Commission, the Texas Department of Public Safety (DPS), or any other law enforcement agency upon request. The approved exclusion shall also be presented to the certified vehicle inspector before each annual vehicle safety inspection of the vehicle as administered by the DPS.
   5. (5) The applicant shall agree and ensure that the exclusion shall be void and all pollution control systems and devices replaced on the vehicle and/or engine covered by the exclusion when the vehicle changes ownership or is no longer used for the purpose identified in the exclusion application. The executive director shall be informed in writing prior to the change of ownership or usage.
   6. (6) The applicant shall comply with all special provisions and conditions specified by the executive director in the exclusion.

4. (d) The following vehicle transactions involving "wholesale dealers" and "retail dealers" as defined in the Texas Dealer Law, Article 6686, Vernon's Texas Civil Statutes, Title 43, Texas Administrative Code, are exempt from the requirements of §114.20(c) of this title:

   1. (1) sales or transfers from one vehicle wholesale dealer to another;
   2. (2) sales or transfers from a vehicle wholesale dealer to a vehicle retail dealer;
   3. (3) sales, transfers, or trade-ins from an individual to a vehicle wholesale or retail dealer;
   4. (4) sales or transfers from one retail dealer to another retail dealer; and
   5. (5) sales or transfers from a retail dealer to a wholesale dealer.

5. (e) Federal, state, and local agencies or their agents which sell abandoned, confiscated, or seized vehicles and any commercial vehicle auction facilities are exempt from the provisions of §114.20(c) of this title if the following conditions are met.

   1. (1) The DPS motor vehicle safety inspection certificates must be removed from the vehicle and destroyed before the vehicle may be offered for sale or displayed for public examination.
   2. (2) All potential buyers of the vehicle must be informed that deficiencies may be present in the vehicle pollution control systems on the vehicle. The buyer must also be informed of the liabilities to the buyer under §114.20 of this title and §114.50 of this title (relating to Inspection Requirements) of operating the vehicle prior to the adequate restoration of all pollution control systems or devices on the vehicle as originally equipped. The seller of the vehicle shall provide to the buyer a written acknowledgment of the receipt of this information which must be signed by the buyer prior to completion of the sales transaction. The seller shall retain a copy of this signed acknowledgment and shall make it available, upon request.
6. (f) The owner of a motor vehicle which has been totally disabled by accident, age, or malfunction and which will no longer be operated is exempt from the provisions of §114.20(c) of this title if the DPS motor vehicle safety inspection certificate is removed and destroyed before the vehicle is offered for sale or displayed for public examination.

Source Note:The provisions of this §114.21 adopted to be effective December 1, 1997, 22 TexReg 11388.