Affidavit: Annual Delegated Assembly Emission Compliance 10-Minute Training Module 2015

INTRODUCTION  Welcome to the Delegated Assembly: Annual Affidavit module.  This course is intended to inform you about the Environmental Protection Agency (EPA) Regulation specified around Annual Affidavit Reporting.  These Affidavits are required for any engine system requiring aftertreatment.  Upon completion of this course, you will be familiar with the Cummins Inc. requirement to achieve compliance with the EPA delegated assembly provision for Aftertreatment. Cummins Confidential2 Prior to this course, it is recommended that you be familiar with CIRCUIT, Global Customer Engineering, the EBU Learning Management System, Distributor Portal and Emissions.cummins.com. These will be valuable tools in the compliance process. 2015

Annual Affidavit Requirement  EPA requires the engine manufacturer (CMI) to ensure the original equipment manufacturer (OEM) follows delegated assembly provisions.  A contractual, Regulatory Agreement obligates the OEM to provide an Annual Affidavit to Cummins Inc.  This Agreement with the OEM obligates that entity to complete the final assembly of the engine in its certified configuration.  It is to Cummins’ advantage to communicate this requirement thoughtfully to OEMs. Cummins Confidential3 2015

Timing of Annual Affidavit Process  Cummins Product Certification & Compliance (PC&C) and the Engine Business Unit (EBU) will work with the Distribution Channel early each year.  Once the Channel has direction, timely requests to the OEMs need to be sent, signed and gathered in the allotted timeframe.  Signed & notarized Affidavits are due before the deadline, usually within 90 days of request, for the prior year’s sales. Cummins Confidential days

Annual Affidavit Key Facts  An EPA-required document  Declares that the OEM (or Distributor) has ordered sufficient Aftertreatment for the number of engines purchased  For all engine purchases requiring Aftertreatment for the previous year’s sales  Not to verify Cummins process, but to verify OEM emission compliance capability, process, documentation, manufacturing and auditing related to Delegated Assembly  Shall be signed and notarized by a binding agent of the OEM/Distributor  Shall be uploaded to RAWeb by the Distributor Local Compliance Leader (LCL) Cummins Confidential5 2015

Annual Affidavit: Where to Find Information  Information about Annual Affidavits is contained in Application Engineering Bulletin (AEB)  AEBs are located in the Global Customer Engineering (GCE) Database.  Also, a quick reference for Emission Compliance requirements can be found in AEB , often called the Emission Compliance “Tip Card.” Cummins Confidential6 2015

Annual Affidavit: Page 1  Page 1 – Affidavit –Signed and Notarized –Many OEMs have their own Notaries In US - found at many public places such as libraries In other countries, notaries may be expensive or are known by another name Cummins Confidential7 2015

Annual Affidavit: Page 2  Page 2 – Attachment A –OEMs/Distributor list all Aftertreatment Part Numbers for Cummins engines –Do not list ESNs Cummins Confidential8 Example Only 2015

How to comply with Annual Affidavit Cummins Confidential9  What Annual Affidavit forms are sent to OEMs/Distributors by Cummins Inc. each year.  When Notarized, signed, original Affidavits are due to Cummins on or before deadline, usually within 90 days of request, for the prior year’s sales.  Who Those allowed to sign the Annual Affidavits for the OEM or Distributor are those who are binding agents of that entity – usually the CEO, CFO or sometimes a Vice President. Signatories are a business decision.  How Distributor Account Managers should send Annual Affidavits to their Distributor Local Compliance Leaders (LCL). Factory accounts should send information via respective Account Representatives.  Where Completed Annual Affidavits shall be uploaded into RAWeb by the LCL or Account Manager. 2015

Annual Affidavit: Role of RAWeb Role: –The tool that acts as ‘gatekeeper’ prior to orders –Ensures emission compliance requirements met –Annual Affidavits must be uploaded within 90 days of notice. Details: –More information about RAWeb may be found on the Circuit Emission Compliance Portal Cummins Confidential

Ramifications of not Complying Cummins Confidential11 Clean Air Act Civil penalties may be applied if this requirement is not followed. But the more imminent penalty is the loss of ordering capability until that Annual Affidavit is signed, notarized and returned to Cummins. Note: It is the OEM's responsibility to have such process, documentation and audit capability in place that the OEM knows the number of Aftertreatment matched to the number of engines built into its equipment for the previous year. 2015

Annual Affidavit Regulation Applicability  YES –All OEMs/Distributors who complete final assembly of engine systems requiring Aftertreatment –The engine system must be set in its certified configuration at the conclusion of final assembly.  NO –End Users –Customers receiving fully assembled engine systems –No engines purchased requiring Aftertreatment in the previous year Cummins Confidential

Annual Affidavit Exemption  Use the Nonroad or On-Highway Affidavit Exemption Contract Type if:  If a Distributor/OEM did not buy any engines requiring Aftertreatment in the previous year, or  Only pre-assembled engine system units (e.g. assembled Cummins Power Products) purchased  Click the Exemption box as applicable. –This check in RAWeb acknowledges no Delegated Assembly engines purchased for year in question. –This Exemption then allows ordering to proceed with the proper system checks in place. Cummins Confidential13 [market] [year] 2015

Annual Affidavit: Contacts/More information? Cummins Confidential14 For additional questions about the Annual Delegated Assembly Affidavit, contact:  The Distributor Local Compliance Leader (LCL)  Engine Business Unit (EBU) or Distribution Business Unit (DBU) Emissions Compliance Leader LCL EBU DBU 2015

Annual Affidavit: Review  Cummins Inc. continues to comply with all EPA regulations for Delegated Assembly Requirements.  EPA regulations mandate an Annual Delegated Assembly Affidavit filed by each equipment manufacturer/Distributor completing final engine assembly for engine systems requiring aftertreatment.  Annual Affidavits are sent out early each year by Cummins Inc. Notarized, signed original Affidavits are due/uploaded to Cummins Inc. within 90 days of notice of each year, for the prior year’s sales.  Information about Annual Delegated Assembly Affidavits can be found on GCE webpage, under AEB and AEB  Contact the Distributor LCL or DBU / EBU Emission Compliance Leader for more information. Cummins Confidential

Quiz Questions Cummins Confidential16 1. What engines should be included in the Annual Delegated Assembly Affidavit?  a. All new 2008 and subsequent MY California and clean idle  certified automotive engines (GVWR>14000 lbs).  b. Clean Idle certified EPA-ARB MY 2007 engines  c. All California certified diesel engines  d. All delegated assembly engine systems 2. Where is the information to explain “Annual Delegated Assembly Affidavit” located?  a. In QSI Database  b. On the Distribution Portal  c. On the Cummins GCE webpage (AEBs) and the EPA web site  d. None of the above 3. True or False? Notarized, signed original Annual Affidavits are due to Cummins Inc. within 90 days of notice, for the prior year’s sales.  TRUE or FALSE 4. The Annual Affidavit process is not complete until: a.The document is signed by a binding agent of the OEM or Distributor. b.The document is notarized. c.The document is uploaded into RAWeb. d.All of the above. 5. True or False? Equipment manufacturers doing final Engine system assembly, requiring Aftertreatment, should confirm by signing the Annual Affidavit that the number of Aftertreatment devices received were sufficient for the number of engines purchased.  TRUE or FALSE 6.True or False? If an OEM or Distributor has no engine orders requiring aftertreatment in the previous year, then an Annual Affidavit Exemption is clicked within RAWeb.  TRUE or FALSE 2015

Quiz Answers 4. The Annual Affidavit process is not complete until: a.The document is signed by a binding agent of the OEM or Distributor. b.The document is notarized. c.The document is uploaded into RAWeb. d.All of the above. 5. True or False? Equipment manufacturers doing final Engine system assembly, requiring Aftertreatment, should confirm by signing the Annual Affidavit that the number of Aftertreatment devices received were sufficient for the number of engines purchased.  TRUE 6.True or False? If an OEM or Distributor has no engine orders requiring aftertreatment in the previous year, then an Annual Affidavit Exemption is clicked within RAWeb.  TRUE 2015 Cummins Confidential17 1. What engines should be included in the Annual Delegated Assembly Affidavit?  a. All new 2008 and subsequent MY California and clean idle  certified automotive engines (GVWR>14000 lbs).  b. Clean Idle certified EPA-ARB MY 2007 engines  c. All California certified diesel engines  d. All delegated assembly engine systems 2. Where is the information to explain “Annual Delegated Assembly Affidavit” located?  a. In QSI Database  b. On the Distribution Portal  c. On the Cummins GCE webpage (AEBs) & the EPA web site  d. None of the above 3. True or False? Notarized, signed original Annual Affidavits are due to Cummins Inc. within 90 days of notice, for the prior year’s sales.  TRUE