[Federal Register Volume 59, Number 148 (Wednesday, August 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18312]


[[Page Unknown]]

[Federal Register: August 3, 1994]


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Part II





Environmental Protection Agency





_______________________________________________________________________



40 CFR Parts 86 and 600




Fuel Economy Test Procedures Alternative-Fueled Automobile CAFE 
Incentives and Fuel Economy Labeling Requirements; Final Rule
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 86 and 600

[AMS-FRL-4675-2]
RIN 2060-AC78

 
Fuel Economy Test Procedures Alternative-Fueled Automobile CAFE 
Incentives and Fuel Economy Labeling Requirements

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This final rule amends the fuel economy regulations to include 
alternative-fueled automobiles. The Alternative Motor Fuels Act (AMFA) 
of 1988 includes 1993 model year and later alternative-fueled 
automobiles (passenger automobiles and light trucks) in the Corporate 
Average Fuel Economy (CAFE) program on a favorable basis to encourage 
the manufacture of these vehicles. The AMFA provides these CAFE 
``credits'' for automobiles designed to be fueled with methanol, 
ethanol, other alcohols, natural gas, or dual-fueled automobiles 
designed to operate on one or more of these alterative fuels and 
gasoline or diesel fuel. Under the AMFA, these credits are only 
available for automobiles that meet certain requirements regarding: 
alternative fuel content (e.g., for alcohol fuels, a minimum of 85 
percent by volume alcohol), energy efficiency, and driving range. 
Neither the AMFA nor today's final rule will affect automobiles that do 
not meet these requirements; such vehicles would not receive the 
favorable CAFE treatment. Alternative-fueled automobile labeling 
requirements are also specified in the AMFA. This final rule codifies 
the requirements of the AMFA in 40 CFR part 600. Recently, AMFA was 
amended by the Energy Policy Act of 1992, to extend the CAFE credit to 
automobiles designed to operate on additional types of alternative 
fuels. However, this final rule does not include these additional 
alternative fuel types, as they were not included in the CAFE program 
at the time the NPRM was published and the final rule was developed.

DATES: This final rule is effective September 2, 1994, except as 
follows: the effective date for the amendments to 40 CFR 600.006-
89(b)(1) (i) and (h) and footnote 4 to the table in 40 CFR 86.129-94(a) 
will be October 3, 1994, unless adverse comment is received by 
September 2, 1994, upon which the amendments to 40 CFR 600.006-89(b)(1) 
(i) and (h) and footnote 4 to the table in 40 CFR 86.129-94(a) will be 
withdrawn before the effective date by a document published in the 
Federal Register.
    The incorporation by reference of certain publications listed in 
this final rule is approved by the Director of the Office of the 
Federal Register as of September 2, 1994.
    40 CFR 600.113-93, 600.206-93, 600.207-93, 600.209-95, 600.307-95, 
600.510-93 are not effective until the Office of Management and Budget 
(OMB) has approved the Information Collection Requirements contained in 
them. EPA will publish a document in the Federal Register following OMB 
approval of the information collection requirements.

ADDRESSES: Comments regarding the amendments to 40 CFR 600.006-89(b)(1) 
(i) and (h) and footnote 4 to the table in 40 CFR 86.129-94(a) should 
be submitted to EPA Air Docket LE-131 (address following). Comments 
regarding the information collection requirements should be sent to 
Chief, Information Policy Branch (PM-2136); U.S. Environmental 
Protection Agency; 401 M Street, SW., Washington, DC 20460; and to the 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, Washington, DC 20503, marked ``Attention: Desk Officer for 
EPA.'' Materials relevant to this final rule are contained in EPA Air 
Docket LE-131, Attention: Docket No. A-89-24, located at the Air Docket 
Section, U.S. Environmental Protection Agency, Room M-1500, 401 M 
Street SW., Washington, DC 20460 telephone (202) 382-7548. The docket 
may be inspected between the hours of 8:30 a.m. to 12 noon and from 
1:30 to 3:30 p.m. weekdays. A reasonable fee may be charged by EPA for 
copying docket materials.

FOR FURTHER INFORMATION CONTACT: Kenneth L. Zerafa, Certification 
Division, U.S. Environmental Protection Agency, National Fuel and 
Vehicle Emissions Laboratory, 2565 Plymouth Road, Ann Arbor, Michigan 
48105. Telephone (313) 668-4331.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Authority
II. Introduction
III. Description of the Action
IV. Public Participation
    A. Options to Include Alternative-Fueled Automobiles
    B. Fuel Specifications
    C. Energy Efficiency of Dual-Fueled Automobiles
    D. Fuel Economy Calculations--Fuel Properties
    E. Fuel Economy Label Format Requirements
    F. Gas Guzzler Tax Applicability
V. Technical Amendments
VI. Administrative Requirements
    A. Administrative Designation
    B. Reporting & Recordkeeping Requirement
    C. Regulatory Flexibility Act

I. Authority

    The promulgation of these regulations is authorized by 15 U.S.C. 
2001, 2002, 2003, 2005, 2006, 2013; 42 U.S.C. 7521, 7522, 7524, 7525, 
7541, 7542, 7549, 7550, 7552, and 7601(a).

II. Introduction

    On October 14, 1988, Congress enacted the Alternative Motor Fuels 
Act (AMFA), Public Law 100-494, 15 U.S.C. 2001 et seq., to encourage: 
(1) The development and widespread use of methanol, ethanol, and 
natural gas as transportation fuels by consumers; and (2) the 
production of methanol, ethanol, and natural gas-fueled motor vehicles. 
(AMFA section 3) The Energy Policy Act of 1992 (Public Law 102-486, 
October 4, 1992) amended the AMFA to also include liquefied petroleum 
gas; hydrogen; coal derived liquid fuels; fuels derived from biological 
materials; electricity; and any other fuel the Secretary of 
Transportation determines, by rule, is substantially not petroleum and 
would yield substantial energy security benefits and substantial 
environmental benefits. The AMFA prescribes explicit requirements in 
two areas relating to fuel economy of alternative-fueled vehicles: (1) 
CAFE credit qualification and calculation; and (2) fuel economy 
labeling.
    Regarding the first area, the AMFA section 6, 15 U.S.C. 2013, as 
amended, provides for favorable CAFE treatment of certain dedicated 
alternative-fueled vehicles, and dual-fueled vehicles that meet 
specified requirements. Passenger automobiles and light-duty trucks 
that can be eligible for CAFE credit include those designed to: (1) 
Operate exclusively on alternative fuels, or (2) operate on either 
gasoline or diesel fuel, as well as alternative fuels, or a combination 
of gasoline or diesel fuel and alternative fuels (i.e., dual-fueled 
automobiles).
    The eligibility for favorable CAFE treatment of dual-fueled 
vehicles is dependent on their ability to meet certain energy 
efficiency requirements. 15 U.S.C. 2013(h)(1). In order to be eligible, 
dual-fueled automobiles are to provide equal or superior energy 
efficiency when operating on the alternative fuel as when operating 
gasoline or diesel fuel. In addition, in order to be eligible, 
automobiles capable of operating on a mixture of an alternative fuel 
and gasoline or diesel fuel which are manufactured in model years 1993 
through 1995 (or for a longer period if extended by the Administrator) 
are to achieve energy efficiency when operated on a mixture of 50 
percent alternative fuel and 50 percent gasoline or diesel equal to or 
superior to that achieved when operated exclusively on gasoline or 
diesel fuel.
    One further requirement established by the AMFA for dual-fueled 
passenger automobiles to be eligible for CAFE credit is that they 
comply with minimum driving range requirements established by the 
Secretary of Transportation. 15 U.S.C. 2013(h)(2) Ranges were 
established by the National Highway Traffic Safety Administration 
(NHTSA) for alcohol dual-fueled and natural gas dual-fueled passenger 
automobiles in the Federal Register on April 26, 1990 (55 FR 17611). 
The minimum driving range established in NHTSA's rule for alcohol dual-
fueled passenger automobiles is 200 miles and the range for natural gas 
dual-fueled passenger automobiles is 100 miles when operated on the 
alternative fuel. However, section 403 (5)(I) of the Energy Policy Act 
of 1992 amends the Motor Vehicle Information and Cost Savings Act 
(MVICSA) to require that all dual-fueled passenger automobiles (other 
than electric automobiles) meet a minimum driving range of 200 miles 
(or a higher value if determined by the Secretary of Transportation) 
while operating on the alternative fuel. 15 U.S.C. 2013(h)(2)(C). This 
amendment supersedes the requirements of AMFA and the NHTSA rulemaking.
    For dedicated automobiles, the fuel economy calculated for CAFE 
purposes is based on the gasoline or diesel content of the mixture 
which is deemed by AMFA to be 15 percent by volume. 15 U.S.C. 
2013(a)(c). Fuel economy for CAFE purposes is then based on the amount 
of gasoline or diesel fuel consumed. For example, a dedicated alcohol 
automobile which has a measured fuel economy of 18 miles per gallon of 
alcohol would receive a rating of 18/0.15 or 120 mpg for CAFE purposes.
    Similarly, for dedicated natural gas-fueled automobiles, a gallon 
equivalent of natural gas is deemed by AMFA to contain 15 percent 
gasoline or diesel fuel for CAFE purposes. The AMFA provides that 100 
cubic feet of natural gas shall be considered to contain 0.823 gallon 
equivalent of natural gas. 15 U.S.C. 2013(c). The fuel economy for CAFE 
purposes is based on the equivalent amount of gasoline or diesel fuel 
consumed. For example, a dedicated natural gas-fueled automobile with a 
measured fuel economy of 23 miles/100 cubic feet of natural gas at 
standard conditions would receive a value for CAFE purposes of 186.3 
mpg ((23 miles/100 cubic feet) x (100 cubic feet/0.823 gallons 
equivalent natural gas) x (1 gallon equivalent natural gas/0.15 gallon 
gasoline)).
    For dual-fueled automobiles, the fuel economy for CAFE purposes is 
to reflect the assumption that the automobiles are operated half of the 
time on gasoline or diesel fuel and half of the time on the alternative 
fuel. 15 U.S.C. 2013(b)(d). Therefore, fuel economy is based on the 
harmonic average of the fuel economy value when operated on gasoline or 
diesel and the credited fuel economy value when operated on the 
alternative fuel as described for the dedicated alternative-fueled 
vehicles above. The harmonic averaging method required by AMFA is 
equivalent to averaging fuel consumption (gallons/mile), which is the 
inverse of fuel economy (miles/gallon). For example, assume a model 
type achieves a combined city/highway fuel economy of 27 mpg on 
gasoline and 18 mpg on alcohol. If the model type were dedicated 
alcohol fueled, the rating for CAFE purposes would be 120 mpg as 
described previously. The fuel economy value for CAFE purposes of the 
dual-fueled model type would be 44.1 mpg (1/(((1/27)+(1/120))/2)).
    The AMFA also limits the maximum model year increase in a 
manufacturer's CAFE attributable to dual-fueled automobiles to 1.2 mpg 
for model years 1993 through 2004 and, if extended by the Secretary of 
Transportation, to 0.9 mpg for model years 2005 through 2008 for each 
compliance category of automobiles (i.e. domestic passenger, import 
passenger, domestic light truck, and import light truck). 15 U.S.C. 
2013(g). Furthermore, if the Secretary of Transportation reduces the 
average fuel economy standard applicable to passenger automobiles to 
less than 27.5 mpg for any model year, increases above 0.7 mpg in the 
manufacturer's average fuel economy attributable to dual-fueled 
passenger automobiles are to be reduced by the amount the standard was 
lowered, but may not be reduced to yield less than 0.7 mpg.
    Regarding the second area, fuel economy labeling requirements, the 
AMFA section 8, 15 U.S.C. 2006(a), requires that specific fuel economy 
information for dedicated alterative- fueled automobiles and dual-
fueled automobiles appear on the fuel economy label and in the Gas 
Mileage Guide published by the Department of Energy. For dedicated 
automobiles, the AMFA states that the fuel economy for labeling 
purposes shall be the fuel economy value calculated for CAFE purposes 
multiplied by the value, 0.15. 15 U.S.C. 2006(a)(4)(A). For dual-fueled 
automobiles, the AMFA 15 U.S.C. 2006(a)(4)(B) states that each label 
must: (i) Indicate the fuel economy of such automobiles when operated 
on gasoline or diesel fuel; (ii) clearly identify such automobiles as 
dual-fueled automobiles; (iii) clearly identify the fuels on which such 
automobiles may be operated; and (iv) contain a statement informing the 
consumer that the additional information is contained in the booklet 
published and distributed by the Department of Energy.
    To administer the provisions of the AMFA described above, the EPA 
published a Notice of Proposed Rulemaking (NPRM) in the Federal 
Register on March 1, 1991. The purpose of the NPRM was to propose to 
integrate the requirements of the AMFA into EPA's existing fuel economy 
regulations (40 CFR part 600) and to frame issues of potential interest 
to commenters. Again, as stated in the ``Summary'' section, today's 
final rule does not affect automobiles that do not meet the eligibility 
requirements for favorable CAFE treatment specified in the AMFA. Also, 
to avoid significant delays, this final rule only covers those fuels 
contained in the AMFA at the time of proposal, namely alcohols and 
natural gas, and does not address the other fuels added by the Energy 
Policy Act of 1992, since this Act was passed well after publication of 
the NPRM and late in the development of this final rule. EPA will 
include these other fuels in a future separate rulemaking. The sections 
that follow describe the final regulations that have been adopted and 
the consideration of public comment that led to decisions regarding the 
final regulations.

III. Description of the Action

    Today's final rule sets in place the CAFE credit mechanism and the 
fuel economy labeling requirements for the 1993 and later model year 
alternative-fueled vehicles covered by the AMFA, namely alcohol and 
natural gas automobiles. In addition, since emission standards and 
emission measurement procedures have already been developed for 
methanol-fueled automobiles (54 FR 14426), fuel economy measurement 
procedures for methanol-fueled vehicles are also included in today's 
rule. The fuel economy calculations for methanol-fueled vehicles are 
based on the carbon balance technique which relies on the premise that 
the quantity of carbon contained in the exhaust is equal to the 
quantity of carbon consumed by the engine as fuel. The proposed 
equation was based on fixed fuel properties. However, based on comments 
received in response to the NPRM, EPA decided that measured fuel 
properties are more appropriate for the calculation of fuel economy 
and, therefore, today's final rules are based on measured fuel 
properties. This is further discussed in section V. ``Public 
Participation''.
    EPA is currently developing emission standards, emission test 
procedures, and fuel economy calculation procedures for natural gas-
fueled vehicles in a separate rulemaking. The notice of proposed 
rulemaking, ``Standards for Emissions From Natural Gas-Fueled, and 
Liquified Petroleum Gas-Fueled Motor Vehicles and Motor Vehicle 
Engines, and Certification Procedures for Aftermarket Conversion 
Hardware'' was published in the Federal Register on November 5, 1992 
(57 FR 52912). EPA expects that this rule will be promulgated in 
advance of the completion of the 1993 model year annual production 
period, after which CAFE for the 1993 model year is calculated, thereby 
allowing manufacturers to obtain CAFE credits for 1993 model year and 
later natural gas-fueled vehicles. In the event that this rulemaking 
cannot be promulgated in time, EPA expects to promulgate those portions 
regarding fuel economy test and calculation procedures in order to 
ensure fuel economy credits are available for 1993 model year natural 
gas-fueled vehicles.
    EPA is currently developing a timeline for the development of 
emission standards and test procedures for ethanol-fueled vehicles. In 
the event that manufacturers introduce ethanol- fueled vehicles into 
commerce before federal fuel economy test procedures are established, 
EPA will consider proposing California test procedures and a fuel 
economy equation to ensure that a mechanism is in place for ethanol-
fueled vehicle CAFE credit as soon as possible.
    Today's rule also integrates the energy efficiency requirements of 
the AMFA into EPA's existing fuel economy regulations. These 
requirements must be met for a dual-fueled vehicle to be eligible for 
fuel economy credit. In the NPRM, EPA proposed that the manufacturer 
must test each dual-fueled vehicle used for fuel economy purposes on 
both the city and highway driving cycles using three fuels: gasoline or 
diesel fuel, the alternative fuel, and, in the case of alcohol dual-
fueled automobiles, a 50 percent gasoline/50 percent alcohol mixture to 
satisfy the energy efficiency requirements of the AMFA. 15 U.S.C. 
2013(h)(1)(C) (ii) and (iii). Although testing on both the alternative 
fuel and gasoline fuel is required to determine fuel economy, the 50/50 
mixture requirement is only needed to determine energy efficiency. 
After considering comments received from manufacturers, the EPA 
realizes that the requirement to test every fuel economy vehicle on 
three fuels could be excessively burdensome compared to the 
requirements for testing gasoline- fueled vehicles, which are tested on 
one fuel. Therefore, for dual-fueled vehicles, this final rule requires 
manufacturers to: (1) Perform city and highway fuel economy tests on 
all vehicles used for fuel economy purposes using both gasoline and the 
alcohol fuel and, (2) during initial certification, either perform city 
and highway fuel economy tests on one emission data vehicle per engine 
family using the 50/50 alcohol/gasoline mixture or provide a statement 
attesting that equal or superior energy efficiency is attained while 
using a 50/50 mixture compared to using gasoline, where applicable. EPA 
retains the right to audit test any vehicle used for fuel economy 
purposes to confirm the manufacturer's statement. This will reduce the 
test burden on the manufacturer while preserving the intent of the 
energy efficiency requirements of the AMFA by ensuring that vehicles 
are designed to be equally or more energy efficient while operating on 
the alternative fuel and a 50/50 alcohol/gasoline mixture than when 
operated on gasoline.
    Today's rule also integrates the fuel economy labeling requirements 
of the AMFA for alternative-fueled vehicles into the existing fuel 
economy regulations. Some minor modifications were made to the proposed 
label formats as a result of comments received on the NPRM. These 
changes are discussed in detail in the ``Public Participation'' 
section. In response to manufacturers' comments, the EPA is offering an 
optional label format for dual-fueled vehicles that contains fuel 
economy values for vehicle operation using the alternative fuel. The 
AMFA requires that the fuel economy values while operating on gasoline 
or diesel appear on the label with a statement that further information 
is contained in the Gas Mileage Guide available at the dealer. This 
optional label format contains a limited amount of additional 
information pertaining to the fuel economy while operating on the 
alternative fuel and should reduce consumer confusion and frustration 
in obtaining such fuel economy information. Also, this optional label 
will contain a statement that refers to the availability of additional 
information in the Gas Mileage Guide. The label formats established 
under this rulemaking are found in the revised regulations following 
the preamble.
    EPA is working with the Department of Energy (DOE), the Department 
of Transportation (DOT), and the Federal Trade Commission (FTC) to 
revise the Gas Mileage Guide to include information on alternative-
fueled vehicles. These changes will be coordinated with the FTC's 
implementation of section 406 of the Energy Policy Act of 1992 (Public 
Law 102-486) which mandates that the FTC promulgate rules to establish 
uniform labeling requirements for alternative fuels and alternative-
fueled vehicles, including requirements for appropriate information 
with respect to costs and benefits so as to reasonably enable the 
consumer to make choices and comparisons. The revisions to the Gas 
Mileage Guide (including changing the name of the guide to ``Fuel 
Economy Guide'') will not be completed in time for inclusion in the 
1994 model year guide. Therefore, the fuel economy labeling 
requirements for alternative-fueled vehicles, which contain label 
statements that refer the consumer to the Gas Mileage Guide for further 
information on the fuel economy of alternative-fueled vehicles, are 
applicable beginning with the 1995 model year. However, those 
manufacturers who produce 1993 or 1994 model year alternative-fueled 
automobiles may optionally comply with the labeling regulations in 
today's rule using the appropriate label wording modifications, 
approved by the Administrator, regarding availability of additional 
information in the Gas Mileage Guide.
    The AMFA does not address the applicability of the gas guzzler tax 
to dedicated alternative-fueled vehicles or dual-fueled vehicles. The 
Secretary of the Treasury (after consultation with the Secretary of 
Transportation) is authorized by Section 201 of the Energy Tax Act of 
1978, 26, U.S.C. 4064 et seq., to include in the gas guzzler tax 
program automobiles fueled with any product of petroleum or natural 
gas, if such inclusion is consistent with the need of the nation to 
conserve energy. Consequently, the alternative fuels covered by the 
AMFA could conceivably be included in the gas guzzler tax program. 
Currently the program is limited to passenger automobiles powered by 
gasoline or diesel fuel. The Secretary of Treasury has not made a 
determination to include alcohols or natural gas in the gas guzzler 
program; therefore, dedicated alternative-fueled vehicles are currently 
not included in the guzzler program. In the NPRM, the EPA solicited 
comments regarding whether alternative fueled automobiles or dual-
fueled automobiles should be included in the gas guzzler tax program. 
The comments were forwarded to the Treasury Department for 
consideration in the determination of applicability of gas guzzler tax 
to dual-fueled vehicles. The IRS agreed that EPA's decision to label 
dual- fueled automobiles for gas guzzler tax purposes based on the fuel 
economy while operating on gasoline is in accordance with the law.
    To save time and printing costs, some technical amendments of 40 
CFR parts 86 and 600 have also been included in this final rule.

IV. Public Participation

    A number of interested parties provided comments on EPA's March 1, 
1991 NPRM. These comments and other documents relevant to the 
development of this final rule are contained in the public docket. The 
Agency has fully considered these comments in developing today's final 
rule.
    The following section presents a brief summary of the major 
comments received on the NPRM and EPA's responses to those comments. A 
separate and more detailed Summary and Analysis of Comments on the NPRM 
has been prepared and is contained in the public docket. The interested 
reader is referred to that document for a more complete discussion of 
the comments, including some of the more minor concerns that have been 
evaluated, but are not presented here.

A. Options To Include Alternative-Fueled Automobiles in the Fuel 
Economy Regulations

Summary of the Proposal
    EPA proposed to establish the CAFE incentive mechanism (credit 
calculation procedures) provided by the AMFA for methanol, ethanol, and 
natural gas-fueled automobiles in the regulations. EPA also proposed 
fuel economy measurement procedures for methanol-fueled automobiles. 
The current requirement that fuel economy data vehicles be covered by a 
certificate demonstrating compliance with emission standards was 
proposed to be revised so that it applies only when the vehicles are 
subject to emission standards. The Agency requested comments on how 
test procedures for alternative-fueled vehicles other than methanol 
could be promulgated on a timely basis, and whether there are any 
alternative fuels other than those addressed in the Alternative Motor 
Fuels Act, that could be included in the CAFE program in a manner 
consistent with the need of the nation to conserve energy. More 
specifically, EPA requested comments on whether the Agency would have 
good cause to dispense with prior notice and comment (i.e., direct 
final rule), if necessary to promulgate test procedures in time for 
manufacturers to obtain credits for vehicles designed to run on 
alternative fuels not already covered by established test procedures.
Summary of Comments
    The Motor Vehicle Manufacturers' Association (MVMA) agreed with the 
proposal to revise the current requirements so that fuel economy data 
vehicles be covered by a certificate of conformity only when such 
vehicles are subject to emission standards. Atlantic Richfield Co. 
(ARCO) took issue with this proposal, stating that equal treatment is 
preferred for all the fuels, and that fuel economy determinations 
should be made on vehicles meeting emission standards both for gasoline 
and any alternative fuels considered.
    A number of comments were received regarding the importance of a 
level playing field for alternative fuels and that a lack of federal 
regulations may impede the development of alternative-fueled vehicles. 
Particularly, a number of commenters urged that the establishment of 
emission standards and fuel economy test procedures for natural gas 
vehicles not be delayed. Comments were also received recommending that 
a timetable for implementation of ethanol-fueled automobile standards 
and test procedures be established as this technology develops. One 
manufacturer further commented that it is working on electric vehicles 
and urged the EPA to work with the Department of Energy to establish a 
CAFE credit mechanism for electric vehicles. The Northeast Sustainable 
Energy Association (NESEA) expressed that they were very concerned that 
the proposed amendments did not address electric vehicles and that 
electric-powered vehicles and electric dual-fueled vehicles should be 
included in fuel economy regulations. The NESEA also encouraged EPA to 
pursue emission standards for solar, hydrogen, and electric powered 
automobiles. ARCO stressed that gasoline reformulations should be 
included when working toward a level playing field for alternative 
fuels.
    A number of commenters recommended that California's existing 
alternative-fueled vehicle test procedures could be used to generate 
fuel economy data until federal regulations are promulgated.
    Comments were received in response to EPA's request for comments on 
a direct final rule type approach. Ford stated that manufacturers 
should be allowed to comment on both test procedures and standards 
before they are finalized. Ford recommended that EPA schedule workshops 
to discuss proposed rulemaking, which would be advantageous in allowing 
manufacturers and EPA to raise questions and concerns before test 
procedures are published. The Natural Gas Vehicle Coalition (NGVC) 
believes that sufficient ``good cause'' exists for EPA to take 
immediate action to establish emission standards and procedures for 
natural gas vehicles based on California's standards and procedures.
EPA Response to Comments
    The EPA recognizes ARCO's concern that fuel economy determinations 
be made on vehicles meeting emission standards both for gasoline and 
alternative fuels. EPA has promulgated emission standards and test 
procedures for methanol-fueled vehicles and is currently developing 
standards for gaseous-fueled (CNG and LPG) vehicles. In addition, EPA 
will continue to assess the need to develop emission standards for 
other alternative-fueled vehicles. However, in the event that emission 
standards are not developed and promulgated for alternative-fueled 
vehicles covered by the AMFA before a manufacturer produces and enters 
such vehicles into commerce, the current regulations that require that 
fuel economy data vehicles be covered by a certificate demonstrating 
compliance with emission standards would not provide a mechanism for 
obtaining CAFE credit. Therefore, EPA is revising the current 
regulation so that it applies only where the vehicles are subject to 
emission standards. This will serve as an interim policy to ensure that 
manufacturers receive the CAFE credit provided by the AMFA for natural 
gas-fueled vehicles, ethanol-fueled vehicles and other alternative-
fueled vehicles in the event that such vehicles are entered into 
commerce before emission standards are promulgated.
    The EPA agrees with the comments received regarding the importance 
of a level playing field for the alternative fuels covered by the AMFA 
as well as other promising alternative fuels. The intent of EPA is to 
establish emission standards for any alternative-fueled vehicle design 
before such vehicles are commercially produced or, at the latest, 
before their sales volume could significantly impact a manufacturer's 
CAFE. As discussed previously, the EPA has promulgated emission 
standards and test procedures for methanol-fueled vehicles and is 
currently developing emission standards and test procedures for natural 
gas-fueled vehicles. The notice of proposed rulemaking for emission 
standards and emission test procedures as well as fuel economy 
calculation procedures for natural gas-fueled vehicles was published on 
November 5, 1992 (57 FR 52912). EPA expects that this rule will be 
finalized in advance of the completion of the 1993 model year annual 
production period after which CAFE for the 1993 model year is 
calculated, thereby allowing manufacturers to obtain CAFE credits for 
1993 model year and later natural gas-fueled vehicles. In the event 
that this rulemaking cannot be promulgated in time, EPA will expect to 
finalize those portions regarding fuel economy test and calculation 
procedures in order to ensure fuel economy credits are available for 
1993 model year natural gas-fueled vehicles.
    EPA is currently developing a timeline for the development of 
emission standards and test procedures for ethanol-fueled vehicles. In 
the event that manufacturers introduce ethanol-fueled vehicles into 
commerce before federal fuel economy test procedures are established, 
EPA will consider proposing California test procedures or procedures 
similar thereto and a fuel economy equation to ensure that a mechanism 
is in place for ethanol-fueled vehicle CAFE credit as soon as possible.
    EPA has not established a timeline for the development of emission 
standards or test procedures for hydrogen, electric, and solar powered 
vehicles. EPA will continue to assess the need for establishing 
emission standards and test procedures for these vehicles.
    The Department of Energy, under the Chrysler Corporation Loan 
Guarantee Act of 1979, is responsible for developing petroleum 
equivalency factors for electric vehicles for the purpose of including 
such vehicles in the CAFE program. The CAFE calculation and test 
procedures for electric vehicles are contained in 10 CFR 474.4. The 
petroleum equivalency factors for electric vehicles were not extended 
past 1987. However, due to continued technology development and a 
strong industry interest in the CAFE treatment of electric vehicles, 
DOE is currently developing a notice of proposed rule to establish new 
petroleum equivalency factors.
    EPA is currently developing a reformulated gasoline program. 
Reformulated gasoline will be used in current gasoline-fueled vehicles. 
The AMFA does not provide CAFE credits for reformulated gasoline-fueled 
vehicles.

B. Fuel Specifications

Summary of the Proposal
    The Agency proposed that alcohol fuel and natural gas fuel used for 
fuel economy testing and service accumulation shall be representative 
of commercially available fuel for motor vehicles.
Summary of Comments
    Several automobile manufacturers recommended that definite fuel 
specifications for methanol and natural gas fuels used for emissions 
and fuel economy testing be adopted. The commenters stated that the 
proposed procedure allows for too much potential inconsistency between 
the manufacturers and EPA in fuels used for testing. Without fuel 
specifications, fuel economy and emission results could vary in 
response to differences in fuel properties. The manufacturers suggested 
that specifications for methanol blends be based on chemical grade 
methanol (ASTM D 1152) and certification grade gasoline (40 CFR 86.113-
82a).
EPA Response to Comments
    The Agency agrees that setting fuel specifications for alternative 
fuels for emission and fuel economy testing would reduce the 
uncertainty associated with certification using unspecified 
commercially representative fuels. However, EPA believes that, to the 
extent variability in fuel specifications can affect emissions, fuel 
specifications for methanol, natural gas, and other alternative fuels 
used for emissions testing (and, therefore, fuel economy testing since 
they are calculated from the same test) should be representative of 
fuels encountered in-use. Certified automobiles are expected to comply 
with emission standards under normal in-use conditions, which includes 
the use of fuels that are representative of those commercially 
available. The Administrator reserves the right to test vehicles using 
fuels representative of those that in-use vehicles will encounter.
    Ideally, fuel specifications should be developed that are 
representative of in-use fuels. However, since the markets for these 
fuels for use in motor vehicles are not yet established, and the fuels 
that become commercially available could vary significantly in 
composition, a single set of specifications may not be representative 
of the fuels that could be used. Also, it is difficult to identify 
which compositions are representative in the absence of established 
markets.
    On April 11, 1989, EPA published a final rulemaking in the Federal 
Register (54 FR 14426) which established emission standards and test 
procedures for methanol-fueled automobiles. In that rulemaking, 
methanol test fuels were required to be representative of in-use fuels. 
However, the methanol fuel market is not yet at a level of development 
to allow for the determination of a representative fuel. EPA has 
developed a package of proposed technical amendments (58 FR 11816, 
March 1, 1993) to the above-mentioned final rule to improve the quality 
of emissions data and increase the flexibility for manufacturers to 
meet the requirements. One of the proposals in this package is to allow 
a combination of chemical grade methanol and certification gasoline for 
test fuels in proportions that reflect the composition of the intended 
in-use fuel (currently this would be 85% methanol and 15% gasoline) 
until specifications for a fuel representative of in-use fuel can be 
determined. EPA plans to apply these provisions for both emissions and 
fuel economy testing purposes.
    For natural gas, the issue of setting fuel specifications is being 
addressed in a separate rulemaking (``Standards for Emissions From 
Natural Gas-Fueled, and Liquified Petroleum Gas-Fueled Motor Vehicles 
and Motor Vehicle Engines * * *'' NPRM published on November 5, 1992, 
57 FR 52912). In the interim, EPA will allow a manufacturer to petition 
the Administrator to use a specific composition of natural gas, 
provided that the manufacturer can demonstrate that this fuel is 
similar in composition to currently available in-use fuel. If standard 
grade fuels emerge when methanol, natural gas, ethanol, and other 
alternative fuels become commercially available, EPA will consider such 
fuels for setting test fuel specifications.

C. Energy Efficiency of Dual-Fueled Automobiles

Summary of the Proposal
    EPA proposed a method for determining whether a vehicle meets the 
AMFA energy efficiency requirements to be eligible for CAFE credit. The 
method proposed by EPA required each fuel economy data vehicle to be 
tested under both the city and highway test cycles using the 
alternative fuel, the petroleum fuel, and, for alcohol dual-fueled 
vehicles, a 50 percent by volume alcohol and 50 percent petroleum 
(gasoline or diesel) fuel mixture. The calculation of energy efficiency 
that was proposed would require manufacturers to determine, and the 
Administrator to approve, the net heating values and densities of the 
alternative fuel, petroleum fuel, and 50/50 mixture.
Summary of the Comments
    Many manufacturers expressed concern that the proposed testing to 
determine energy efficiency of dual-fueled automobiles is excessive and 
may be a deterrent to alternative-fueled vehicle development and 
production. The manufacturers recommended that the equal or superior 
energy efficiency determination could be adequately demonstrated when 
the vehicle is first certified. The comparison of the three fuels could 
be made one time, for each engine family and could be based on the 
highway test only. The regulations should allow EPA to waive the 50/50 
mixture testing requirement if demonstrated M85 (or M100) tests 
indicate a significant increase in fuel efficiency when compared to 
gasoline tests in the same vehicle.
EPA Response to Comments
    The AMFA does not specify how the energy efficiency is to be 
calculated. However, the intent of the Act is to encourage the use of 
alternative fuels and the energy efficiency requirement is a means of 
ensuring that dual-fueled automobiles are designed to be equally or 
more energy efficient while operating on the alternative fuel. Based on 
comments submitted by manufacturers, EPA realizes that the proposal to 
require the manufacturer to test each vehicle used for fuel economy 
purposes using the three fuels could be unnecessarily burdensome and 
costly for the manufacturer as compared to the test requirements for 
gasoline-fueled vehicles, which require tests using one test fuel. For 
example, if a vehicle, when fueled with an M85 blend, demonstrated 
significantly superior energy efficiency performance compared to when 
fueled with gasoline, it is likely to have superior energy efficiency 
performance when operating on the 50/50 blend as when operating on 
gasoline. EPA expects that in the vast majority of vehicles 
demonstrating a superior M85 energy efficiency performance, testing 
with a 50/50 blend would only serve to confirm expected performance. 
The energy efficiency requirements could still be equally served by 
lessening the testing requirements on the manufacturer in conjunction 
with provisions for EPA to reserve the right to audit test any vehicle 
used for fuel economy purposes.
    Therefore, this final rule requires that to satisfy the equal or 
superior energy efficiency requirements of AMFA for favorable CAFE 
treatment eligibility for dual-fueled vehicles, manufacturers must: (1) 
Perform city and highway fuel economy tests on all vehicles used for 
fuel economy purposes using both gasoline and the alternative fuel, 
and, additionally for alcohol dual-fueled vehicles, (2) during initial 
certification, either perform city and highway fuel economy tests on 
one emission data vehicle (EDV) per engine family using the 50/50 
alcohol/gasoline mixture, or provide a statement attesting that equal 
or superior energy efficiency is attained while using a 50/50 mixture 
compared to using gasoline. The EPA retains the right to audit test any 
vehicle used for fuel economy purposes to confirm the manufacturer's 
statement. This approach will reduce the test burden on the 
manufacturer while preserving the intent of the AMFA to ensure that 
vehicles are designed to be equally or more energy efficient while 
operating on both the alternative fuel and 50/50 alcohol/gasoline 
mixture than when operating on gasoline.
    The recommendations regarding the sole use of the highway test 
cycle for determining energy efficiency may not ensure that the equal 
or superior energy efficiency requirements of the AMFA are met. City 
and highway energy efficiencies could differ due to engine calibration 
differences and other design differences. This may not assure that the 
city energy efficiency requirements for CAFE credit are met as a result 
of testing using the highway cycle. To better represent in-use driving 
conditions, the energy efficiency determination should be based on both 
the city and highway cycles. After experience is gained with the 
relationship between highway and city energy efficiency for 
alternative-fueled vehicles, this issue can be revisited.

D. Fuel Economy Calculations--Fuel Properties

Summary of the Proposal
    The proposed fuel economy equation was based on fixed values for 
the fuel properties of carbon weight fraction and density. For 
determining energy efficiency, EPA proposed that the manufacturers 
would be required to determine the net heating values and densities of 
the alternative fuel, petroleum fuel, and a 50 percent alcohol, 50 
percent gasoline mixture where appropriate. EPA proposed that upon 
reviewing the net heating values and densities submitted by the 
manufacturer, the Administrator would determine the net heating values 
and densities to be used in the energy efficiency determination.
Summary of the Comments
    The MVMA and Ford recommend that actual methanol fuel properties be 
used in both the fuel economy calculation and energy efficiency 
equations with the option of using standard or ``fixed'' values if the 
methanol fuel property data are unavailable. The use of actual fuel 
properties for the gasoline calculations and standard fuel properties 
for the methanol calculations creates an inconsistency in the energy 
efficiency calculations since the proposed energy efficiency comparison 
equation is a ratio of these two values.
    MVMA suggested two alternative methods to be used for determining 
the heating value for methanol fuel blends. The first is to measure the 
heating value using ASTM D 240, which uses a bomb calorimeter. The 
second method is to calculate the heating value using:

LHV(BTU/lb)=(mass fraction methanol x 8560)+(mass fraction 
gasoline x LHV gasoline),

where the LHV gasoline is the heating value of the gasoline portion of 
the M85 fuel and is measured using ASTM D 3338.
    Ford recommended the following equation to calculate fuel economy 
for methanol vehicles using measured values for the carbon weight 
fraction and density of the methanol blend:

(CWF  x  SG  x  3777.623)/[(CWFexHC  x  HC)+(0.429  x  CO)+(0.273 
x  CO2)+(0.375  x  CH3OH)+(0.400  x  HCHO)]

Ford recommended that the carbon weight fraction (CWF) of the methanol 
blend should be determined using ASTM D 3343 and the specific gravity 
of the methanol blend should be determined using ASTM D 1298. The 
equation proposed in the NPRM should be contained in the regulation 
only as an option; with the density of gasoline in the equation revised 
from 2796 to 2830.
    Regarding the determination of the carbon weight fraction of 
exhaust hydrocarbons (CWFexHC) in the denominator of the methanol 
fuel economy equation, manufacturers agreed that the effect of this 
term on fuel economy is very small and measurement of this value is 
difficult to obtain. They agreed that a standard value should be 
determined. However, some of the commenters stated that the standard 
value of 0.866 is not appropriate and the carbon weight fraction of the 
exhaust hydrocarbons of each blend should be specified and based on 
test data. One manufacturer agreed that the hydrogen to carbon ratio of 
1.85:1 (i.e., CWFexHC=0.866) is adequate for calculating fuel 
economy.
EPA Response to Comments
    Although fixed fuel properties were proposed for the determination 
of fuel economy for methanol-fueled vehicles in the NPRM, EPA requested 
comments on the appropriateness of using fixed fuel properties in place 
of measured fuel properties. The comments reflect a common desire among 
manufacturers to use measured fuel properties for the determination of 
fuel economy of methanol-fueled vehicles. Although the use of measured 
fuel properties is more burdensome, it is consistent with current 
gasoline fuel economy regulations and eliminates problems associated 
with energy efficiency comparisons between gasoline operation and 
alternative fuel operation. With minor revision, the fuel economy 
equation for methanol-fueled vehicles recommended by Ford is an 
appropriate equation if measured fuel properties are used. However, the 
use of ASTM D 3343 for the measurement of the carbon weight fraction of 
the methanol blend is not appropriate. This procedure applies to 
hydrocarbon fuels and is not appropriate for oxygenated fuels. Rather, 
the carbon weight fraction of the blend can be calculated by the 
following:

CWF = (CWFg x mass fraction gasoline)+(CWFm x mass fraction 
methanol)

where:
    CWFg=carbon weight fraction of gasoline as measured by ASTM D 
3343.
    CWFm=carbon weight fraction of methanol=0.375
    mass fraction gasoline=(G  x  SGg)/(G x SGg+M x SGm)
    mass fraction methanol = (M x SGm)/(G x SGg+M x SGm)
where:
    G=volume fraction of gasoline
    M=volume fraction of methanol
    SGg=specific gravity of gasoline as measured by ASTM D 1298
    SGm=specific gravity of methanol fuel as measured by ASTM D 
1298

This method requires measurement of the fuel properties of the 
individual fuels prior to blending. EPA is currently investigating 
acceptable methods for measuring the carbon weight fraction of the 
fuels after blending. As these methods are developed and proven 
satisfactory, EPA plans to revise the regulations to include such 
methods. EPA will allow the use of other procedures for measuring the 
carbon weight fraction of the fuel blend if the manufacturer can show 
that the procedures are superior to or equally as accurate as those 
specified in the final rule. To provide flexibility and reduce the 
burden on manufacturers who may blend the fuels at the pump, the 
specific gravity of the blend can be optionally determined by measuring 
the specific gravity of the individual fuels before blending and 
combining those values as follows:
SG=SGg x volume fraction gasoline+SGm x volume fraction 
methanol

    The correct value of the term in the numerator of the fuel economy 
equation which converts the specific gravity from dimensionless units 
to grams/gallon should be 3781.8 grams/gallon. This is the product of 
multiplying the density of pure water at 60 deg.F of 0.99904 grams/
cubic centimeter (reference ASTM D 4052) by the volume conversion of 
3785.412 cubic centimeters/gallon. Therefore, the value suggested by 
Ford of 3777.623 is replaced by 3781.8 for the final rule.
    The NPRM is unclear as to how the net heating value and the density 
of methanol/gasoline mixtures are to be determined. EPA agrees that 
test procedures should be specified in the regulations to eliminate 
this ambiguity. Therefore, for the final rule, ASTM D 240 is to be used 
for the determination of net heating value and ASTM D 1298 for the 
determination of density. However, the use of other procedures will be 
allowed if the manufacturer can show these procedures to be equal or 
superior to the specified procedures.
    Regarding the determination of the carbon weight fraction of 
exhaust hydrocarbons (CWFexHC), again the effect of this value on 
the determination of fuel economy is expected to be negligible. While 
the use of different values for different fuel blends would be 
technically more accurate than using the value of 0.866 for all blends, 
insufficient data is available to determine appropriate values at this 
time. In addition, the use of different values would add additional 
complexity to fuel economy calculations while having a negligible 
effect on fuel economy values. Therefore, the EPA does not believe that 
it is appropriate to assign different carbon weight fractions for 
exhaust hydrocarbons from various methanol/gasoline blends at this 
time. Until the carbon/hydrogen ratios of the exhaust hydrocarbon 
constituents can be better assessed, the carbon weight fraction of the 
exhaust hydrocarbons will be equal to the carbon weight fraction 
measured for the gasoline portion of the blend or, for neat methanol, 
equal to 0.866. As experience is gained with measuring the carbon/
hydrogen ratios of exhaust hydrocarbons from vehicles fueled with 
methanol/gasoline blends, this issue can be revisited.

E. Fuel Economy Label Format Requirements

Statement of Proposal
    The proposed fuel economy labeling requirements for alternative-
fueled automobiles are those currently specified for gasoline-fueled 
and diesel-fueled automobiles with modification to satisfy AMFA 
requirements. For dedicated alternative-fueled automobiles, the EPA 
proposed that the fuel title (e.g. Methanol, Natural Gas) be located 
above the fuel pump logo and for dual-fueled automobiles, that the 
title ``Dual Fuel'' be positioned above the logo. For dedicated 
alternative-fueled automobiles the EPA proposed that the bottom border 
of the label contain the statement: ``This vehicle operates on [insert 
appropriate fuel(s)] only''. For dual-fueled automobiles, the 
statement: ``This dual fuel vehicle operates on ([gasoline or diesel] 
or [list alcohols or natural gas])'' was proposed to be located on the 
bottom border of the label. EPA proposed that fuel economy labels for 
natural gas-fueled automobiles include the statement: ``All fuel 
economy values on this label pertain to gasoline equivalent fuel 
economy. To convert these values into units of miles per 100 cubic feet 
of natural gas, multiply by 0.823.'' For dual-fueled automobiles, EPA 
proposed that the statement: ``All fuel economy values on this label 
pertain to [gasoline or diesel] fuel usage. [List alcohols or natural 
gas] fuel usage will yield different values. See the Gas Mileage Guide 
for information on [list alcohols or natural gas] fuel usage.'' The 0.9 
and 0.78 multiplicative factors currently used for adjusting the 
petroleum-fueled vehicle city and highway measured fuel economy values 
to better represent in-use fuel economy were proposed to be applied to 
alcohol-fueled, natural gas-fueled, and dual-fueled automobiles.
Summary of Comments
    A number of manufacturers expressed concerns regarding the proposed 
fuel economy labeling requirements for alternative-fueled vehicles. One 
concern common to many manufacturers related to the requirement to have 
statements appear on the bottom border of the label. Since 
manufacturers use printed forms to generate fuel economy labels, the 
number of preprinted types of forms that manufacturers would have to 
purchase would increase because of the differences in border wording 
for different vehicles. Instead, manufacturers recommended that these 
statements be written just above the bottom border, leaving the 
preprinted portion of the label unchanged. Manufacturers also 
recommended that the size of the fuel pump logo be reduced to 
accommodate fuel titles above the pump logo and that ``Gas Mileage 
Information'' be replaced by a more generic and appropriate title such 
as ``Fuel Mileage Information''.
    Manufacturers recommended that EPA establish an optional label 
format to include the fuel economy values for dual-fueled vehicles 
while operated on the alternative fuel in addition to the fuel economy 
values while operated on gasoline as required by the AMFA. They 
recommended that these optional fuel economy values could take the 
place of the reference to having the customer obtain the information 
from the gas mileage guide.
    One manufacturer recommended that the proposed label for natural 
gas vehicles, which includes a conversion factor of 0.823 to be used by 
the consumer to convert mpg to miles per 100 cubic feet of natural gas, 
should be changed so that the manufacturer would perform the 
calculation for the consumer. The manufacturer would then report the 
natural gas fuel economy on the lower right hand side of the label in 
units that are used at retail.
    Several manufacturers commented that the multiplicative factors for 
label values for gasoline vehicles developed by EPA of 0.90 and 0.78 
should also be applied to alcohol and natural gas fuel economy label 
values. However, these factors may have to be revised as more 
experience is gained with the use of alternative-fueled vehicles.
EPA Response to Comments
    The EPA believes that the concerns of manufacturers regarding 
printing statements on the bottom border of the fuel economy label are 
valid. The purpose of the proposed location of the statement on the 
bottom border was to ensure that the statement was clearly visible and 
caught the eye of the consumer. However, this objective can still be 
reached if large print is used and the statement is printed just above 
the bottom border of the label. Therefore, for the final rule, EPA is 
requiring that this statement be located just above the bottom border 
of the label.
    EPA agrees with the comments received in regard to the size of the 
fuel pump logo be slightly reduced to provide adequate space for the 
fuel title to be positioned above the logo. The slight reduction in 
logo size will not have any adverse impact on the effectiveness of the 
label in informing the consumer of the vehicle's fuel economy. In 
addition, the fuel pump logo statement ``Gas Mileage Information'' is 
not appropriate for vehicles powered by alternative fuels. However, in 
clarifying the comments received on this issue, the commenters who 
recommended the use of ``Fuel Mileage'' in place of Gas Mileage agreed 
with EPA that an even more appropriate term would be ``Fuel Economy''. 
Therefore, for the final rule, all label occurrences of the term ``Gas 
Mileage'' are replaced by ``Fuel Economy''.
    The AMFA clearly mandates that the label for dual-fueled vehicles 
contain the fuel economy values when operated on gasoline or diesel 
fuel, and that additional information be contained in the Gas Mileage 
Guide regarding operation on the alternative fuel. The information 
required to be published in the Gas Mileage Guide includes: the energy 
efficiency and cost of operation of such automobiles when operated on 
gasoline or diesel fuels as compared to operation of alcohol or natural 
gas; the driving range of such automobiles when operated on gasoline or 
diesel fuel as compared to such automobiles when operated on alcohol or 
natural gas; information regarding the miles per gallon achieved by 
dual-fueled automobiles when operated on alcohol; and an explanation of 
how the information may be expected to change when the automobile is 
operated on mixtures of alcohol and gasoline or diesel fuel (15 U.S.C. 
2006(b)(3)). This information will most likely be of interest to a 
consumer who is deciding whether or not to purchase a dual-fueled 
vehicle. Congress recognized that it would be impractical to 
incorporate all of this information on the fuel economy label and 
required that, at a minimum, the label contain gasoline fuel economy 
information while alternative fuel information is contained in the Gas 
Mileage Guide. However, the AMFA does not specifically prohibit other 
label formats.
    To avoid consumer confusion and frustration with dual-fueled 
vehicle labeling, EPA agrees with commenters that it would be 
beneficial to include fuel economy values while operating on the 
alternative fuel in addition to those while operating on gasoline on 
the same label. This could help avoid problems which would occur when a 
model is offered for sale before the Gas Mileage Guide is available for 
a particular model year. However, it would not be practical to design 
an optional label that would contain all the information that the AMFA 
requires to be contained in the Gas Mileage Guide. Therefore, EPA is 
providing an optional label format for dual-fueled vehicles that 
contains limited information on the fuel economy while operated on the 
alternative fuel. Also, this optional label will contain a statement 
that refers to the availability of additional information in the Gas 
Mileage Guide.
    The AMFA mandates that the fuel economy label values for dedicated 
natural gas-fueled vehicles are the values used for CAFE purposes 
multiplied by 0.15. This requires that the fuel economy value units are 
in terms of miles per equivalent gallon of gasoline for natural gas-
fueled automobiles. The most appropriate units in terms of consumer 
usefulness are dependent on how the fuel will be sold at retail (e.g., 
per volume, per weight, per equivalent gallon gasoline). Since the 
vehicle fuel market for natural gas is not yet established, the most 
appropriate label units are not known at this time. Therefore, the 
statement: ``To convert these values into units of miles per 100 cubic 
feet of natural gas, multiply by 0.823.'' will only be required if 
natural gas as a motor vehicle fuel is sold on a volume (cubic feet) 
basis. As an option, the manufacturer can perform the calculation for 
the consumer and display the values on the label in the following 
format: ``The fuel economy in units of miles per [insert units used in 
retail] is estimated to be [insert city fuel economy value] in the 
city, and [insert highway fuel economy value] on the highway.'' This 
format can also be used if natural gas is sold in terms of units other 
than gallon equivalent of gasoline or cubic feet. Also, for the 
optional label format for natural gas dual-fueled vehicles, the fuel 
economy units while operating on natural gas will be based on units 
used at retail.
    The EPA agrees with manufacturers' comments regarding the necessity 
to reevaluate the multiplicative city and highway fuel economy 
adjustment factors for label values to better represent in-use fuel 
economy when more experience and data are available for alternative-
fueled vehicles.

F. Gas Guzzler Tax Applicability to Alternative-Fueled Vehicles

Statement of Proposal
    The Alternative Motor Fuels Act did not address the applicability 
of the so-called ``gas guzzler tax'' to dedicated or dual alternative-
fueled vehicles. The Energy Tax Act of 1978, 26 U.S.C. 4064, authorizes 
the Secretary of the Treasury (after consultation with the Secretary of 
Transportation) to include in the gas guzzler tax program automobiles 
fueled with any product of petroleum or natural gas if such inclusion 
is consistent with the need of the nation to conserve energy. While 
alternative fuels thus could be included in the gas guzzler tax 
program, the Secretary of Treasury has not included such fuels by 
regulation under this section to date, and dedicated alternative-fueled 
automobiles thus do not appear to be currently subject to the gas 
guzzler tax. However, since dual-fueled automobiles can operate on 
gasoline, the applicability of the gas guzzler tax under current law is 
less clear. The EPA solicited comments regarding whether alternative-
fueled automobiles or dual-fueled automobiles should be included in the 
gas guzzler tax program, but did not make any proposals in the NPRM. 
These comments were submitted to the Internal Revenue Service for their 
consideration.
Summary of Comments
    Several automobile manufacturers provided comments recommending 
that dedicated and dual alternative-fueled vehicles not be included in 
the gas guzzler tax program. These manufacturers stated that the 
purpose of the AMFA is to facilitate widespread use of alternative 
fuels through incentives and that subjecting these vehicles to the gas 
guzzler tax program would contravene the goals of the AMFA. The Senate 
bill originally included a section intended to ``clarify that the lower 
energy content of the alternative fuels covered by this bill do not 
trigger the so-called 'gas-guzzler' tax provisions of current law.'' 
However, this section was deleted since taxes are revenue related 
matters that most appropriately should originate in the House of 
Representatives. Senator Rockefeller stated in the Congressional 
Record-Senate of April 15, 1988, page S. 4101: ``in deleting section 8 
from S.1518 that we believe the interpretation of the law should remain 
exactly as it was with section 8 in the bill.''
    ARCO recommended that any motor fuel tax be applied equally to all 
motor fuels including alternative fuels to preserve the energy 
conservation intent of the Energy Tax Act of 1978. ARCO suggested that 
dual-fueled vehicles be subject to the gas guzzler tax based on the 
fuel economy when operated on gasoline. This will appropriately tax 
vehicles that are designed to run on the alternative fuel but will most 
likely operate inefficiently on gasoline. The generation of CAFE 
credits provided by the AMFA would likely result in the production of 
gas-guzzling vehicles. ARCO provided an example that showed that a M85 
dual-fueled vehicle which has an mpg rating of 20 while operating on 
gasoline and 16 while operating on M85 would have a calculated fuel 
economy under the CAFE credit provisions of the AMFA of 34 mpg. They 
state for this example, at 34 mpg, that the dual-fueled vehicle would 
not be taxed as a gas guzzler. However, at 20 mpg gasoline fuel 
economy, ARCO feels that the tax would be justifiable and consistent 
with the intent of the Energy Tax Act to conserve energy.
    NESEA stated that because of the positive attributes of 
alternative-fueled vehicles and the urgency of switching away from oil-
fueled cars, alternative-fueled and dual-fueled vehicles should be 
included in the gas guzzler tax program as this is an excellent first 
step in acknowledging the real costs of running gasoline powered 
vehicles.
EPA Position
    The EPA does not have the authority to decide which vehicles and 
fuels are subject to the gas guzzler tax program. This authority lies 
with the Department of Treasury. The IRS agreed that EPA's decision to 
label dual-fueled automobiles for gas guzzler tax purposes based on the 
fuel economy while operating on gasoline is in accordance with the law. 
Therefore, EPA will label dual-fueled vehicles using the current 
regulations for gasoline-fueled vehicles contained in 40 CFR part 600, 
Sec. 600.513.

V. Technical Amendments

    To save the time and printing costs involved in publishing them 
under a separate notice, the following technical amendments to the 40 
CFR parts 86 and 600 are included in this final rule. Technical 
amendments described under items A and B below were proposed in the 
NPRM. EPA received no comments on these amendments and therefore will 
be included in the final rule as proposed. Technical amendments 
described under items C, D, and E, were not included in the NPRM. By 
issuing these technical amendments directly as a final rule, EPA is 
foregoing the issuance of an NPRM and the opportunity for public 
comment on the proposal provided by the NPRM rulemaking process. Such a 
curtailed procedure is permitted by 5 U.S.C. 553(b) and section 307(d) 
of the Clean Air Act when issuance of a proposal and public comments 
would be impracticable, unnecessary, or contrary to the public 
interest. The Agency is publishing this action without prior proposal 
because these are non-controversial corrections that rectify minor 
errors and omissions in the Part 600 regulations in a manner that does 
not substantively change the requirements of the final rule. The Agency 
finds that this constitutes good cause under 5 U.S.C. 553(b) for a 
determination that the issuance of an NPRM is unnecessary.
    A. A formaldehyde concentration term is being added to the dilution 
factor equation located in 40 CFR 86.144-90(c)(7)(ii) and 86.144-
94(c)(7)(ii). Although the magnitude of the formaldehyde concentration 
is very low, it is possible that an assumption of zero concentration 
could lead to a slight change in calculated fuel economy. There is no 
reason why the formaldehyde concentration term should be left out of 
the equation. With this amendment, all measured carbon-containing 
compounds will be included in the dilution factor equation.
    B. The symbol ``x'' is struck from the dilution factor equation on 
40 CFR 86.144-90(c)(7)(ii) and 86.144-94(c)(7)(ii) the first time it 
appears in the equation. The first time ``x'' appears in the equation, 
it is used to represent multiplication. All other occurrences of ``x'' 
in the equation represent the measured fuel composition parameter: 
CxHyOz. By dropping the first occurrence of ``x'', only 
the latter meaning is retained. The multiplication function can be 
assumed by virtue of a number adjacent to a variable enclosed in 
parenthesis.
    C. Part 600.513-91 (b)(2)(xii) currently reads ``(xii) At least 
12.5 mpg, the gas guzzler tax statement shall show a tax of $7,700''. 
This has been mis-typed; ``At least'' should read ``Less than''. 
Therefore, the statement is amended to read: ``Less than 12.5 mpg, the 
gas guzzler tax statement shall show a tax of $7,700''.
    D. To clarify the definition of the ``c'' factor in 40 CFR 
600.513(a)(2) the current language which reads: ``c=1.300 x 10-3 
for the 1986 and later model years'' is amended to read: ``c=gas 
guzzler adjustment factor = 1.300 x 10-3 for the 1986 and later 
model years''.
    E. To correct the references for calculating the ``FE'' and 
``ag'' terms in CFR 40 600.513-91(a)(2) each occurrence of the 
phrase ``in accordance with paragraph (a)(2) of the section'' is 
replaced by the phrase: ``in accordance with Sec. 600.207''.
    F. In its Control of Air Pollution From New Motor Vehicles and New 
Motor Vehicle Engines: Gaseous and Particulate Emission Regulations for 
1994 and Later Model Year Light-Duty Vehicles and Light-Duty Trucks; 
Final Rule (also known as Tier 1), 56 FR 25724 (June 5, 1991), EPA 
adopted the term ``heavy light duty truck'' (HLDT) for light duty 
trucks with a gross vehicle weight rating (GVWR) greater than 6000 lbs. 
Pursuant to the definition of test weight in section 216(8) of the 
Clean Air Act, as amended in 1990, the Tier I rule also adopted the 
term ``adjusted loaded vehicle weight'' (ALVW) (the average of curb 
weight and GVWR) and required that ALVW be used for emission testing of 
HLDTs for one-half the fleet in model year 1996 and the entire fleet 
beginning in model year 1997. Prior to this time, emissions test 
weights were determined based on loaded vehicle weight (LVW), which is 
curb weight plus 300 lbs., and this weight was also used for fuel 
economy testing conducted at the same time. ALVW is higher than LVW. 
Testing at a higher weight would negatively impact fuel economy values. 
Increasing the test weight would therefore have the practical effect of 
increasing the stringency of the fuel economy standard, which might be 
addressed by adjusting the standard. Under the Motor Vehicle 
Information and Cost Savings Act (MVICSA), 15 U.S.C. 2003(d)(1), fuel 
economy is to be measured in accordance with testing procedures 
established by the EPA Administrator by rule. Also under that 
provision, fuel economy tests are, to the extent practicable, to be 
conducted in conjunction with emissions tests under the Clean Air Act. 
The National Highway Traffic and Safety Administration (NHTSA) is 
responsible for setting the fuel economy standards. 15 U.S.C. 2002(b).
    In its Light Truck Average Fuel Economy Standards for Model Year 
1995; Proposed Rule, 57 FR 61377 (December 24, 1992), NHTSA requested 
comments on the issue of test weight for light trucks over 6000 lbs. 
GVWR in the context of setting the MY 1995-97 light truck fuel economy 
standards. GM, Ford, Chrysler, American Automobile Manufacturers 
Association and Rover Group all supported the continuation of fuel 
economy testing at LVW. In its Light Truck Average Fuel Economy 
Standards for Model Year 1995; Final Rule, 58 FR 18019 (April 7, 1993), 
NHTSA quoted extensively from a January 7, 1993 letter from EPA to 
industry trade associations explaining that EPA would consider comments 
during the NHTSA rulemaking regarding the proper test weight for fuel 
economy testing when developing EPA guidance or rulemaking on this 
subject. The EPA letter was further quoted as stating that EPA plans to 
defer to NHTSA's policy decisions on issues such as the competitiveness 
effects of the alternatives and would follow NHTSA's resolution of the 
CAFE issue with conforming amendments to its regulations or policy.
    NHTSA then concluded in that notice that the preferable solution 
would be to retain LVW as the test weight for fuel economy purposes. 
This conclusion was based, in part, on comments expressing the concern 
that changing the test weight for only a portion of the light truck 
fleet would cause consumer confusion and affect the competitiveness of 
manufacturers with a higher proportion of sales of the heavier light 
trucks. NHTSA finally quoted from a March 4, 1993 letter from EPA to 
NHTSA that if NHTSA decided against adjusting the CAFE standard to 
reflect a higher test weight, EPA would undertake ``the regulatory and 
guidance revisions needed to allow dual testing.''
    Accordingly, EPA is today promulgating a technical amendment to 
provide that while ALVW is required for emission testing of HLDTs, it 
is not required for fuel economy testing of such vehicles. 
Manufacturers may, instead, continue to use LVW as the test weight for 
fuel economy testing. Vehicle manufacturers, however, have had and 
continue to have the option of performing simultaneous emissions and 
fuel economy testing using heavier test weights (ALVW in this case). 
Therefore, for HLDTs, separate testing using ALVW for emissions and LVW 
for fuel economy, or combined emissions and fuel economy testing using 
ALVW is acceptable. However, fuel economy adjustments will not be made 
to account for potentially lower fuel economy values due to the use of 
the heavier test weight (ALVW). This technical amendment changes 40 CFR 
600.006-89 (b)(1) (i) and (h) and footnote 4 to the table found at 40 
CFR 86.129-94(a) to specify the test weight basis for heavy light duty 
trucks.
    The Agency also reiterates that despite the change in the HLDT 
emission test weight basis, vehicle manufacturers must still assure 
that fuel economy data vehicles comply with the applicable exhaust 
emission standards. The Administrator reserves the right to require the 
manufacturer to either test using ALVW or submit the vehicle for 
testing by the Administrator for emission standards compliance using 
ALVW for HLDTs.
    This action is being taken without prior proposal because EPA 
believes that this technical amendment is noncontroversial and has been 
subject to notice and comment through NHTSA's rulemaking and EPA's 
January 7, 1993 letter referring interested parties to the NHTSA 
proposed rule and advising that EPA would consider comments from that 
rulemaking. For these reasons, EPA believes that a prior EPA proposal 
is unnecessary under the Administrative Procedure Act, 5 U.S.C. 
553(b)(3)(B).
    Nevertheless, the public is advised that this action will be 
effective October 3, 1994, unless notice is received by September 2, 
1994, that someone wished to submit adverse or critical comments. If 
such notice is received, this action will be withdrawn and two 
subsequent documents will be published. One document, which will be 
published before the effective date, will withdraw the final action. 
Another document will begin a new rulemaking by announcing a proposal 
of the action and establishing a comment period. Interested persons are 
invited to submit comments on this proposed approval. EPA will consider 
all comments received by September 2, 1994. Consequently, this 
procedure still allows the opportunity for public comment under the 
Administrative Procedure Act, but provides an expedited procedure for 
final action where a rulemaking is not expected to be controversial, 
public comment has already been received by another federal agency, and 
no adverse comment is expected.

VI. Administrative Requirements

A. Administrative Designation

Executive Order 12866
    Under Executive Order 12866, (58 FR 51735 (October 1, 1993)) the 
Agency must determine whether the regulatory action is ``significant'' 
and therefore subject to OMB review and the requirements of the 
Executive Order. The Order defines ``significant regulatory action'' as 
one that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    This regulation was submitted to the Office of Management and 
Budget (OMB) for review under the old Executive Order 12291. It has 
been determined that this rule is not a ``significant regulatory 
action'' under the terms of Executive Order 12866. OMB reviewed this 
document under Executive Order 12866 and had no comment.

B. Reporting & Recordkeeping Requirement

    The information collection requirements in this rule have been 
submitted for approval to the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. An 
Information Collection Request document has been prepared by EPA (ICR 
NO. 783.29) and a copy may be obtained from Sandy Farmer, Information 
Policy Branch; EPA, 401 M Street, SW., 2740. These requirements are not 
effective until OMB approves them and a technical amendment to that 
effect is published in the Federal Register.
    This collection of information has an estimated reporting burden 
averaging 14,600 hours per response and an estimated annual 
recordkeeping burden averaging 1,250 hours per respondent. These 
estimates include time for reviewing instructions, searching existing 
data sources, gathering and maintaining the date needed, and completing 
and reviewing the collection of information. The regulations do not 
impose any new significant reporting or recordkeeping burden. They 
provide for the inclusion of alternative-fueled automobiles in the 
current fuel economy programs. The reporting and recordkeeping burdens 
associated with fuel economy of alternative-fueled and current 
automobiles are identical with the exception of minor changes in fuel 
economy label wording for alternative-fueled automobiles. In addition, 
it is difficult to accurately separate the total burden of the fuel 
economy program, because much of the testing and data input for 
determining fuel economy is coincident to that of the emissions 
program. In summary, the current impact of the final regulations' 
testing, recordkeeping and reporting burden is negligible.
    Send comments regarding the burden estimate or any other aspect of 
this collection of information, including suggestions for reducing this 
burden to Chief, Information Policy Branch (PM-2136); U.S. 
Environmental Protection Agency; 401 M Street, SW., Washington, DC 
20460; and to the Office of Information and Regulatory Affairs, Office 
of Management and Budget, Washington, DC 20503, marked ``Attention: 
Desk Officer for EPA.''

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 requires federal agencies to 
identify potentially adverse impacts of federal regulations upon small 
entities. In instances where significant impacts are possible on a 
substantial number of these entities, agencies are required to perform 
a Regulatory Flexibility Analysis (RFA).
    Pursuant to section 605(b) of the Regulatory Flexibility Act, 5 
U.S.C. 605(b), the Administrator certifies that this rule will not have 
a significant economic impact on a substantial number of small 
entities. The fuel economy regulation revisions herein provide 
Corporate Average Fuel Economy (CAFE) credits to manufacturers of 
alternative-fueled vehicles who are subject to the CAFE program, most 
of which are large automobile manufacturers and therefore will not have 
a significant impact on a substantial number of small entities.

List of Subjects

40 CFR Part 86

    Environmental protection, Administrative practice and procedure, 
Confidential business information, Labeling, Motor vehicle pollution, 
Reporting and recordkeeping requirements.

40 CFR Part 600

    Administrative practice and procedure, Electric power, Energy 
conservation, Fuel economy, Gasoline, Incorporation by reference, 
Labeling, Reporting and recordkeeping requirements.

    Authority: 15 U.S.C. 2001, 2002, 2003, 2005, 2006, 2013; 42 
U.S.C. 7521, 7522, 7524, 7525, 7541, 7542, 7549, 7550, 7552, and 
7601(a).

    Dated: April 13, 1994.
Carol M. Browner,
Administrator.

Appendix to Preamble 

               Table of Changes Made to Various Subparts                
------------------------------------------------------------------------
      Section                  Change                    Reason         
------------------------------------------------------------------------
1. Part 86,           None....................                          
 Authority.                                                             
2. Sec. 86.129-94\4\  Addition of text to       Technical amendments.   
                       clarify test weight                              
                       basis for heavy light-                           
                       duty trucks.                                     
3. Sec. 86.144-       Addition of formaldehyde  Technical amendments.   
 90,(c)(7)(ii).        concentration term to                            
                       DF equation and                                  
                       clarification of ``x''                           
                       term.                                            
4. Sec. 86.144-94,    Addition of formaldehyde  Technical amendments.   
 (c)(7)(ii).           concentration term to                            
                       DF equation and                                  
                       clarification of ``x''                           
                       term.                                            
5. Part 600,          Addition of citations...  Incorporate all         
 Authority.                                      authority citations.   
6. Sec. 600.001-93..  Addition of section       Do.                     
                       600.001-93.                                      
7. Sec. 600.002-93..  Addition of section       Do.                     
                       600.002-93.                                      
8. Sec. 600.004-77..  Addition of text to       Clarification.          
                       clarify section                                  
                       reference structure.                             
9. Sec. 600.006-89,   Addition of text to       Technical amendments.   
 (b)(1) (i), (h).      clarify test weight                              
                       basis for heavy light -                          
                       duty trucks.                                     
10. Sec. 600.007-80,  Add words ``and for       Add language to clarify 
 (f).                  which emission            requirements for       
                       standards apply''.        vehicle acceptability. 
11. Sec. 600.011-93.  Addition of section       Do.                     
                       600.011-93.                                      
12. Sec. 600.101-93.  Addition of section       Do.                     
                       600.101-93.                                      
13. Sec. 600.107-93.  Addition of section       Do.                     
                       600.107-93.                                      
14. Sec. 600.111-93.  Addition of section       Do.                     
                       600.111-93.                                      
15. Sec. 600.113-93.  Addition of section       Add fuel economy        
                       600.113-93.               equation for methanol- 
                                                 fueled and methanol    
                                                 dual fuel vehicles.    
16. Sec. 600.201-93.  Addition of section       Incorporation of alcohol
                       600.201-93.               fueled, natural gas    
                                                 fueled, alcohol dual   
                                                 fuel, and natural gas  
                                                 dual fuel vehicles into
                                                 the regulations.       
17. Sec. 600.206-93.  Addition of section       Do.                     
                       600.206-93.                                      
18. Sec. 600.207-93.  Addition of section       Do.                     
                       600.207-93.                                      
19. Sec. 600.209-95.  Addition of section       Do.                     
                       600.209-93.                                      
20. Sec. 600.301-95.  Addition of section       Do.                     
                       600.301-94.                                      
21. Sec. 600.307-95.  Addition of section       Do.                     
                       600.307-94.                                      
22. Sec. 600.501-93.  Addition of section       Do.                     
                       600.501-93.                                      
23. Sec. 600.510-93.  Addition of section       Do.                     
                       600.510-93.                                      
24. Sec. 600.513-91,  Add text regarding dual   Incorporate dual fuel   
 (a), (a)(2),          fuel vehicles, clarify    vehicles and Technical 
 (b)(2)(xii).          FE, ag, and c terms,      amendments.            
                       correct tax                                      
                       applicability <12 mpg..                          
25. Appendix VIII...  Addition of example       Do.                     
                       label formats for                                
                       alternative-fueled                               
                       vehicles..                                       
------------------------------------------------------------------------
\4\For model year 1994 and later heavy light-duty trucks not subject to 
  the Tier 0 standards of Sec. 86.094-9 of subpart A, test weight basis 
  is as follows: for emissions tests, the basis shall be adjusted loaded
  vehicle weight, as defined in Sec. 86.094-2 of subpart A; and for fuel
  economy tests, the basis shall be loaded vehicle weight, as defined in
  Sec. 86.082-2 of subpart A, or, at the manufacturer's option, adjusted
  loaded vehicle weight as defined in Sec. 86.094-2 of subpart A. For   
  all other vehicles, test weight basis shall be loaded vehicle weight, 
  as defined in Sec. 86.082-2 of subpart A.                             

    For the reasons set forth in the preamble, chapter I of title 40 of 
the Code of Federal Regulations is amended as follows:

PART 86--CONTROL OF AIR POLLUTION FROM NEW AND IN-USE MOTOR 
VEHICLES AND NEW AND IN-USE MOTOR VEHICLE ENGINES: CERTIFICATION 
AND TEST PROCEDURES

    1. The authority citation for part 86 continues to read as follows:

    Authority: Secs. 202, 203, 205, 206, 207, 208, 215, 216, 217, 
301(a), of the Clean Air Act as amended (42 U.S.C. 7521, 7522, 7524, 
7525, 7541, 7542, 7549, 7550, 7552, and 7601(a)).

    2. Section 86.129-94 is amended by revising footnote 4 to the table 
in paragraph (a) to read as follows:


Sec. 86.129-94  Road load power, test weight, inertia weight class 
determination, and fuel temperature profile.

* * * * *
    (a) * * *
* * * * *
    3. Section 86.144-90 is amended by revising the dilution factor 
equation in paragraph (c)(7)(ii) to read as follows:


Sec. 86.144-90  Calculations; exhaust emissions.

* * * * *
    (c) * * *
    (7) * * *
    (ii)

TR03AU94.000

* * * * *
    4. Section 86.144-94 is amended by revising the dilution factor 
equation in paragraph (c)(7)(ii) to read as follows:


Sec. 86.144-94  Calculations; exhaust emissions.

* * * * *
    (c) * * *
    (7) * * *
    (ii)

TR03AU94.001

* * * * *

PART 600--FUEL ECONOMY OF MOTOR VEHICLES

    5. The authority citation for part 600 is revised to read as 
follows:

    Authority: 15 U.S.C. 2001, 2002, 2003, 2005, 2006, and 2013.

Subpart A--[Amended]

    6. A new Sec. 600.001-93 is added to subpart A to read as follows:


Sec. 600.001-93  General applicability.

    (a) The provisions of this subpart are applicable to 1993 and later 
model year gasoline-fueled, diesel-fueled, alcohol-fueled, natural gas-
fueled, alcohol dual fuel, and natural gas dual fuel automobiles.
    (b) (1) Manufacturers that produce only electric vehicles are 
exempt from the requirement of this subpart, except with regard to the 
requirements in those sections pertaining specifically to electric 
vehicles.
    (2) Manufacturers with worldwide production (excluding electric 
vehicle production) of less than 10,000 gasoline-fueled and/or diesel 
powered passenger automobiles and light trucks may optionally comply 
with the electric vehicle requirements in this subpart.
    7. A new Sec. 600.002-93 is added to subpart A to read as follows:


Sec. 600.002-93  Definitions.

    (a) As used in this subpart, all terms not defined in this section 
shall have the meaning given them in the Act:
    (1) Act means Part I of Title V of the Motor Vehicle Information 
and Cost Savings Act (15 U.S.C. 1901 et seq.).
    (2) Administrator means the Administrator of the Environmental 
Protection Agency or his authorized representative.
    (3) Secretary means the Secretary of Transportation or his 
authorized representative.
    (4) Automobile means:
    (i) Any four-wheel vehicle propelled by a combustion engine using 
onboard fuel, or by an electric motor drawing current from rechargeable 
storage batteries or other portable energy storage devices 
(rechargeable using energy from a source off the vehicle such as 
residential electric service);
    (ii) Which is manufactured primarily for use on public streets, 
roads, or highways (except any vehicle operated on a rail or rails);
    (iii) Which is rated at not more than 8,500 pounds gross vehicle 
weight, which has a curb weight of not more than 6,000 pounds, and 
which has a basic vehicle frontal area of not more than 45 square feet; 
or
    (iv) Is a type of vehicle which the Secretary determines is 
substantially used for the same purposes.
    (5) Passenger automobile means any automobile which the Secretary 
determines is manufactured primarily for use in the transportation of 
no more than 10 individuals.
    (6) Model year means the manufacturer's annual production period 
(as determined by the Administrator) which includes January 1 of such 
calendar year. If a manufacturer has no annual production period, the 
term ``model year'' means the calendar year.
    (7) Federal emission test procedure refers to the dynamometer 
driving schedule, dynamometer procedure, and sampling and analytical 
procedures described in Part 86 for the respective model year, which 
are used to derive city fuel economy data.
    (8) Federal highway fuel economy test procedure refers to the 
dynamometer driving schedule, dynamometer procedure, and sampling and 
analytical procedures described in Subpart B of this part and which are 
used to derive highway fuel economy data.
    (9) Fuel means:
    (i) Gasoline and diesel fuel for gasoline- or diesel-powered 
automobiles; or
    (ii) Electrical energy for electrically powered automobiles; or
    (iii) Alcohol for alcohol-powered automobiles; or
    (iv) Natural gas for natural gas-powered automobiles.
    (10) Fuel economy means:
    (i) The average number of miles traveled by an automobile or group 
of automobiles per volume of fuel consumed as computed in Sec. 600.113 
or Sec. 600.207; or
    (ii) The equivalent petroleum-based fuel economy for an 
electrically powered automobile as determined by the Secretary of 
Energy.
    (11) City fuel economy means the fuel economy determined by 
operating a vehicle (or vehicles) over the driving schedule in the 
Federal emission test procedure.
    (12) Highway fuel economy means the fuel economy determined by 
operating a vehicle (or vehicles) over the driving schedule in the 
Federal highway fuel economy test procedure.
    (13) Combined fuel economy means:
    (i) The fuel economy value determined for a vehicle (or vehicles) 
by harmonically averaging the city and highway fuel economy values, 
weighted 0.55 and 0.45 respectively.
    (ii) For electric vehicles, the term means the equivalent 
petroleum-based fuel economy value as determined by the calculation 
procedure promulgated by the Secretary of Energy.
    (14) Average fuel economy means the unique fuel economy value as 
computed under Sec. 600.510 for a specific class of automobiles 
produced by a manufacturer that is subject to average fuel economy 
standards.
    (15) Certification vehicle means a vehicle which is selected under 
Sec. 86.084-24(b)(1) of this chapter and used to determine compliance 
under Sec. 86.084-30 of this chapter for issuance of an original 
certificate of conformity.
    (16) Fuel economy data vehicle means a vehicle used for the purpose 
of determining fuel economy which is not a certification vehicle.
    (17) Label means a sticker that contains fuel economy information 
and is affixed to new automobiles in accordance with subpart D of this 
part.
    (18) Dealer means a person who resides or is located in the United 
States, any territory of the United States, or the District of Columbia 
and who is engaged in the sale or distribution of new automobiles to 
the ultimate purchaser.
    (19) Model type means a unique combination of car line, basic 
engine, and transmission class.
    (20) Car line means a name denoting a group of vehicles within a 
make or car division which has a degree of commonality in construction 
(e.g., body, chassis). Car line does not consider any level of decor or 
opulence and is not generally distinguished by characteristics as roof 
line, number of doors, seats, or windows, except for station wagons or 
light-duty trucks. Station wagons and light-duty trucks are considered 
to be different car lines than passenger cars.
    (21) Basic engine means a unique combination of manufacturer, 
engine displacement, number of cylinders, fuel system (as distinguished 
by number of carburetor barrels or use of fuel injection), catalyst 
usage, and other engine and emission control system characteristics 
specified by the Administrator. For electric vehicles, basic engine 
means a unique combination of manufacturer and electric traction motor, 
motor controller, battery configuration, electrical charging system, 
energy storage device, and other components as specified by the 
Administrator.
    (22) Transmission class means a group of transmissions having the 
following common features: Basic transmission type (manual, automatic, 
or semi-automatic); number of forward gears used in fuel economy 
testing (e.g., manual four-speed, three-speed automatic, two-speed 
semi-automatic); drive system (e.g., front wheel drive, rear wheel 
drive; four wheel drive), type of overdrive, if applicable (e.g., final 
gear ratio less than 1.00, separate overdrive unit); torque converter 
type, if applicable (e.g., non-lockup, lockup, variable ratio); and 
other transmission characteristics that may be determined to be 
significant by the Administrator.
    (23) Base level means a unique combination of basic engine, inertia 
weight class and transmission class.
    (24) Vehicle configuration means a unique combination of basic 
engine, engine code, inertia weight class, transmission configuration, 
and axle ratio within a base level.
    (25) Engine code means a unique combination, within an engine-
system combination (as defined in Part 86 of this chapter), of 
displacement, carburetor (or fuel injection) calibration, distributor 
calibration, choke calibration, auxiliary emission control devices, and 
other engine and emission control system components specified by the 
Administrator. For electric vehicles, engine code means a unique 
combination of manufacturer, electric traction motor, motor 
configuration, motor controller, and energy storage device.
    (26) Inertia weight class means the class, which is a group of test 
weights, into which a vehicle is grouped based on its loaded vehicle 
weight in accordance with the provisions of part 86 of this chapter.
    (27) Transmission configuration means the Administrator may further 
subdivide within a transmission class if the Administrator determines 
that sufficient fuel economy differences exist. Features such as gear 
ratios, torque converter multiplication ratio, stall speed, shift 
calibration, or shift speed may be used to further distinguish 
characteristics within a transmission class.
    (28) Axle ratio means the number of times the input shaft to the 
differential (or equivalent) turns for each turn of the drive wheels.
    (29) Auxiliary emission control device (AECD) means an element of 
design as defined in part 86 of this chapter.
    (30) Rounded means a number shortened to the specific number of 
decimal places in accordance with the ``Round Off Method'' specified in 
ASTM E 29 (Incorporated by reference as specified in Sec. 600.011-93).
    (31) Calibration means the set of specifications, including 
tolerances, unique to a particular design, version of application of a 
component, or component assembly capable of functionally describing its 
operation over its working range.
    (32) Production volume means, for a domestic manufacturer, the 
number of vehicle units domestically produced in a particular model 
year but not exported, and for a foreign manufacturer, means the number 
of vehicle units of a particular model imported into the United States.
    (33) Body style means a level of commonality in vehicle 
construction as defined by number of doors and roof treatment (e.g., 
sedan, convertible, fastback, hatchback) and number of seats (i.e., 
front, second, or third seat) requiring seat belts pursuant to National 
Highway Traffic Safety Administration safety regulations in 49 CFR part 
571. Station wagons and light trucks are identified as car lines.
    (34) Hatchback means a passenger automobile where the conventional 
luggage compartment, i.e., trunk, is replaced by a cargo area which is 
open to the passenger compartment and accessed vertically by a rear 
door which encompasses the rear window.
    (35) Pickup truck means a nonpassenger automobile which has a 
passenger compartment and an open cargo bed.
    (36) Station wagon means a passenger automobile with an extended 
roof line to increase cargo or passenger capacity, cargo compartment 
open to the passenger compartment, a tailgate, and one or more rear 
seats readily removed or folded to facilitate cargo carrying.
    (37) Gross vehicle weight rating means the manufacturer's gross 
weight rating for the individual vehicle.
    (38) Ultimate consumer means the first person who purchases an 
automobile for purposes other than resale or leases an automobile.
    (39) Van means any light truck having an integral enclosure fully 
enclosing the driver compartment and load carrying device, and having 
no body sections protruding more than 30 inches ahead of the leading 
edge of the windshield.
    (40) Base vehicle means the lowest priced version of each body 
style that makes up a car line.
    (41) Nonpassenger automobile means an automobile that is not a 
passenger automobile, as defined by the Secretary of Transportation at 
49 CFR 523.5.
    (42) Four-wheel-drive general utility vehicle means a four-wheel-
drive, general purpose automobile capable of off-highway operation that 
has a wheelbase not more than 110 inches and that has a body shape 
similar to a 1977 Jeep CJ-5 or CJ-7, or the 1977 Toyota Land Cruiser, 
as defined by the Secretary of Transportation at 49 CFR 553.4.
    (43) Test weight means the weight within an inertia weight class 
which is used in the dynamometer testing of a vehicle, and which is 
based on its loaded vehicle weight in accordance with the provisions of 
part 86 of this chapter.
    (44) Secretary of Energy means the Secretary of Energy or his 
authorized representative.
    (45) Electric traction motor means an electrically powered motor 
which provides tractive energy to the wheels of a vehicle.
    (46) Energy storage device means a rechargeable means of storing 
tractive energy on board a vehicle such as storage batteries or a 
flywheel.
    (47) Motor controller means an electronic or electro-mechanical 
device to convert energy stored in an energy storage device into a form 
suitable to power the traction motor.
    (48) Electrical charging system means a device to convert 60Hz 
alternating electric current, as commonly available in residential 
electric service in the United States, to a proper form for recharging 
the energy storage device.
    (49) Battery configuration means the electrochemical type, voltage, 
capacity (in Watt-hours at the c/3 rate), and physical characteristics 
of the battery used as the tractive energy device.
    (50) Drive system is determined by the number and location of drive 
axles (e.g., front wheel drive, rear wheel drive, four wheel drive) and 
any other feature of the drive system if the Administrator determines 
that such other features may result in a fuel economy difference.
    (51) Subconfiguration means a unique combination within a vehicle 
configuration of equivalent test weight, road-load horsepower, and any 
other operational characteristics or parameters which the Administrator 
determines may significantly affect fuel economy within a vehicle 
configuration.
    (52) Alcohol means a mixture containing 85 percent or more by 
volume methanol, ethanol, or other alcohols, in any combination.
    (53) Alcohol-fueled automobile means an automobile designed to 
operate exclusively on alcohol.
    (54) Alcohol dual fuel automobile means an automobile:
    (i) Which is designed to operate on alcohol and on gasoline or 
diesel fuel;
    (ii) Which provides equal or greater energy efficiency as 
calculated in accordance with Sec. 600.510(g)(1) while operating on 
alcohol as it does while operating on gasoline or diesel fuel;
    (iii) Which, for model years 1993 through 1995, provides equal or 
superior energy efficiency, as determined in Sec. 600.510(g)(2) while 
operating on a mixture of alcohol and gasoline or diesel fuel 
containing 50 percent gasoline or diesel fuel as it does while 
operating on gasoline or diesel fuel; and
    (iv) Which, in the case of passenger automobiles, meets or exceeds 
the minimum driving range established by the Department of 
Transportation in 49 CFR 538.
    (55) ``Natural gas-fueled automobile'' means an automobile designed 
to operate exclusively on natural gas.
    (56) ``Natural gas dual fuel automobile'' means an automobile:
    (i) Which is designed to operate on natural gas and on gasoline or 
diesel fuel;
    (ii) Which provides equal or greater energy efficiency as 
calculated in Sec. 600.510(g)(1) while operating on natural gas as it 
does while operating on gasoline or diesel fuel; and
    (iii) Which, in the case of passenger automobiles, meets or exceeds 
the minimum driving range established by the Department of 
Transportation in 49 CFR part 538.
    (b) [Reserved]
    8. Section 600.004-77 of subpart A is revised to read as follows:


Sec. 600.004-77  Section numbering, construction.

    (a) The model year of initial applicability is indicated by the 
section number. The two digits following the hyphen designate the first 
model year for which a section is effective. A section is effective 
until superseded.

    Example: Section 600.111-78 applies to the 1978 and subsequent 
model years until superseded. If a Sec. 600.111-81 is promulgated, 
it would take effect beginning with the 1981 model year; 
Sec. 600.111-78 would apply to model years 1978 through 1980.

    (b) A section reference without a model year suffix refers to the 
section applicable for the appropriate model year.
    9. Section 600.006-89 of subpart A is amended by revising paragraph 
(b)(1)(i) and adding paragraph (h) to read as follows:


Sec. 600.006-89  Data and information requirements for fuel economy 
vehicles.

* * * * *
    (b)(1) * * *
    (i) A description of the vehicle, exhaust emission test results, 
applicable deterioration factors, adjusted exhaust emission levels, and 
test fuel property values as specified in Sec. 600.113-93 except as 
specified in paragraph (h) of this section.
* * * * *
    (h) For light-duty fuel economy trucks over 6000 lbs GVWR, the 
manufacturer must submit emissions data generated while using the 
following test weight basis:
    (1) Adjusted Loaded Vehicle Weight (ALVW) as defined in 
Sec. 86.094-2 of this chapter; or
    (2) Loaded Vehicle Weight (LVW) as defined in Sec. 86.082-2 of this 
chapter, in which case the Administrator reserves the right to either 
require the manufacturer to test using ALVW and submit the data or 
submit the vehicle for testing by the Administrator for emission 
standards compliance.
    10. Section 600.007-80 of subpart A is amended by revising 
paragraph (f) introductory text to read as follows:


Sec. 600.007-80  Vehicle acceptability.

* * * * *
    (f) All vehicles used to generate fuel economy data, and for which 
emission standards apply, must be covered by a certificate of 
conformity under part 86 of this chapter before:
* * * * *
    11. Section 600.011-93 is added to subpart A to read as follows:


Sec. 600.011-93  Reference materials.

    (a) Incorporation by reference. The documents in paragraph (b) of 
this section have been incorporated by reference. The incorporation by 
reference was approved by the Director of the Federal Register in 
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies may be 
inspected at USEPA, OAR, 401 M Street, SW., Washington DC 20460, or at 
the Office of the Federal Register, 800 N. Capitol Street, NW., suite 
700, Washington, DC.
    (b) The following paragraphs and tables set forth the material that 
has been incorporated by reference in this part.
    (1) ASTM material. The following table sets forth material from the 
American Society for Testing and Materials which has been incorporated 
by reference. The first column lists the number and name of the 
material. The second column lists the section(s) of this part, other 
than Sec. 600.011, in which the matter is referenced. Copies of these 
materials may be obtained from American Society for Testing and 
Materials, 1916 Race Street, Philadelphia, PA 19103.

------------------------------------------------------------------------
                                              40 CFR part 600 Preference
          Document number and name                                      
------------------------------------------------------------------------
ASTM E 29-67 (Reapproved 1973) Standard       600.002-93(a)(30); 600.113-
 Recommended Practice for Indicating which     93(d)                    
 Places of Figures are to be Considered                                 
 Significant in Specified Limiting Values.                              
ASTM D 1298-85 (Reapproved 1990) Standard     600.113-93(c)(1)(i),      
 Practice for Density, Relative Density        (c)(2)(i)(A),            
 (Specific Gravity), or API Gravity of Crude   (c)(2)(i)(B), (c)(2)(ii);
 Petroleum and Liquid Petroleum Products by    600.510-93 (g)(1)(ii)(B),
 Hydrometer Method.                            (g)(2)(ii)(B).           
ASTM D 3343-90 Standard Test Method for       600.113-93(c)(1)(ii),     
 Estimation of Hydrogen Content of Aviation    (c)(2)(ii).              
 Fuels.                                                                 
ASTM D 3338-92 Standard Test Method for       600.113-93(c)(1)(iii).    
 Estimation of Net Heat of Combustion of                                
 Aviation Fuels.                                                        
ASTM D 240-92 Standard Test Method for Heat   600.113-93(c)(2)(iii);    
 of Combustion of Liquid Hydrocarbon Fuels     600.510-93 (g)(1)(ii)(A),
 by Bomb Calorimeter.                          (g)(2)(ii)(A).           
------------------------------------------------------------------------

    (2) [Reserved]

Subpart B--[Amended]

    12. A new Sec. 600.101-93 is added to subpart B to read as follows:


Sec. 600.101-93  General applicability.

    The provisions of this subpart are applicable to 1993 and later 
model year gasoline-fueled, diesel-fueled, alcohol-fueled, natural gas-
fueled, alcohol dual fuel, and natural gas dual fuel automobiles.

    13. A new Sec. 600.107-93 is added to subpart B to read as follows:


Sec. 600.107-93  Fuel specifications.

    (a) The test fuel specifications for gasoline-fueled automobiles 
are given in Sec. 86.113(a) (1) and (2) of this chapter.
    (b) The test fuel specifications for diesel-fueled automobiles are 
given in Sec. 86.113(b) (1) through (3) of this chapter.
    (c) The test fuel specifications for methanol fuel used in Otto-
cycle automobiles are given in Sec. 86.113(a) (3) and (4) of this 
chapter.
    (d) The test fuel specifications for methanol fuel used in diesel 
cycle automobiles are given in Sec. 86.113(b) (4) through (6) of this 
chapter.
    (e) The test fuel specifications for mixtures of petroleum and 
methanol fuels for methanol dual fuel vehicles are given in 
Sec. 86.113(d) of this chapter.
    (f) The specification range of the fuels to be used under 
paragraphs (c) and (d) of this section shall be reported in accordance 
with Sec. 86.090-21(b)(3) of this chapter.

    14. A new Sec. 600.111-93 is added to subpart B to read as follows:


Sec. 600.111-93  Test procedures.

    (a) The test procedures to be followed for generation of the city 
fuel economy data are those prescribed in Secs. 86.127 through 86.138 
of this chapter, as applicable, except as provided for in paragraph (d) 
of this section. (The evaporative loss portion of the test procedure 
may be omitted unless specifically required by the Administrator.)
    (b) The test procedures to be followed for generation of the 
highway fuel economy data are those specified in paragraphs (b) through 
(j) of this section.
    (1) The Highway Fuel Economy Dynamometer Procedure consists of 
preconditioning highway driving sequence and a measured highway driving 
sequence.
    (2) The highway fuel economy test is designated to simulate non-
metropolitan driving with an average speed of 48.6 mph and a maximum 
speed of 60 mph. The cycle is 10.2 miles long with 0.2 stop per mile 
and consists of warmed-up vehicle operation on a chassis dynamometer 
through a specified driving cycle. A proportional part of the diluted 
exhaust emission is collected continuously for subsequent analysis of 
hydrocarbons, carbon monoxide, carbon dioxide using a constant volume 
(variable dilution) sampler. Diesel dilute exhaust is continuously 
analyzed for hydrocarbons using a heated sample line and analyzer. 
Methanol and formaldehyde samples are collected and individually 
analyzed for methanol-fueled vehicles (measurement of methanol and 
formaldehyde may be omitted for 1993 through 1994 model year methanol-
fueled vehicles provided a HFID calibrated on methanol is used for 
measuring HC plus methanol).
    (3) Except in cases of component malfunction or failure, all 
emission control systems installed on or incorporated in a new motor 
vehicle must be functioning during all procedures in this subpart. The 
Administrator may authorize maintenance to correct component 
malfunction or failure.
    (c) Transmission. The provisions of Sec. 86.128 of this chapter 
apply for vehicle transmission operation during highway fuel economy 
testing under this subpart.
    (d) Road load power and test weight determination. Section 86.129 
of this chapter applies for determination of road load power and test 
weight for highway fuel economy testing. The test weight for the 
testing of a certification vehicle will be that test weight specified 
by the Administrator under the provisions of part 86 of this chapter. 
The test weight for a fuel economy data vehicle will be that test 
weight specified by the Administrator from the test weights covered by 
that vehicle configuration. The Administrator will base his selection 
of a test weight on the relative projected sales volumes of the various 
test weights within the vehicle configuration.
    (e) Vehicle preconditioning. The Highway Fuel Economy Dynamometer 
Procedure is designed to be performed immediately following the Federal 
Emission Test Procedure, Secs. 86.127 through 86.138 of this chapter. 
When conditions allow, the tests should be scheduled in this sequence. 
In the event the tests cannot be scheduled within three hours of the 
Federal Emission Test Procedure (including one hour hot soak 
evaporative loss test, if applicable) the vehicle should be 
preconditioned as in paragraph (e) (1) or (2) of this section, as 
applicable.
    (1) If the vehicle has experienced more than three hours of soak 
(68  deg.F-86  deg.F) since the completion of the Federal Emission Test 
Procedure, or has experienced periods of storage outdoors, or in 
environments where soak temperature is not controlled to 68  deg.F-86 
deg.F, the vehicle must be preconditioned by operation on a dynamometer 
through one cycle of the EPA Urban Dynamometer Driving Schedule, 
Sec. 86.115 of this chapter.
    (2) In unusual circumstances where additional preconditioning is 
desired by the manufacturer, the provisions of Sec. 86.132(a)(3) of 
this chapter apply.
    (f) Highway fuel economy dynamometer procedure. (1) The dynamometer 
procedure consists of two cycles of the Highway Fuel Economy Driving 
Schedule (Sec. 600.109(b)) separated by 15 seconds of idle. The first 
cycle of the Highway Fuel Economy Driving Schedule is driven to 
precondition the test vehicle and the second is driven for the fuel 
economy measurement.
    (2) The provisions of paragraphs (b), (c), (e), (f), (g) and (h) of 
Sec. 86.135 Dynamometer procedure of this chapter, apply for highway 
fuel economy testing.
    (3) Only one exhaust sample and one background sample are collected 
and analyzed for hydrocarbons (except diesel hydrocarbons which are 
analyzed continuously), carbon monoxide, and carbon dioxide. Methanol 
and formaldehyde samples (exhaust and dilution air) are collected and 
analyzed for methanol-fueled vehicles (measurement of methanol and 
formaldehyde may be omitted for 1993 through 1994 model year methanol-
fueled vehicles provided a HFID calibrated on methanol is used for 
measuring HC plus methanol).
    (4) The fuel economy measurement cycle of the test includes two 
seconds of idle indexed at the beginning of the second cycle and two 
seconds of idle indexed at the end of the second cycle.
    (g) Engine starting and restarting. (1) If the engine is not 
running at the initiation of the highway fuel economy test 
(preconditioning cycle), the start-up procedure must be according to 
the manufacturer's recommended procedures.
    (2) False starts and stalls during the preconditioning cycle must 
be treated as in Sec. 86.136(d) and (e) of this chapter. If the vehicle 
stalls during the measurement cycle of the highway fuel economy test, 
the test is voided, corrective action may be taken according to 
Sec. 86.079-25 of this chapter, and the vehicle may be rescheduled for 
test. The person taking the corrective action shall report the action 
so that the test records for the vehicle contain a record of the 
action.
    (h) Dynamometer test run. The following steps must be taken for 
each test:
    (1) Place the drive wheels of the vehicle on the dynamometer. The 
vehicle may be driven onto the dynamometer.
    (2) Open the vehicle engine compartment cover and position the 
cooling fans(s) required. Manufacturers may request the use of 
additional cooling fans for additional engine compartment or under-
vehicle cooling and for controlling high tire or brake temperatures 
during dynamometer operation.
    (3) Preparation of the CVS must be performed before the measurement 
highway driving cycle.
    (4) Equipment preparation. The provisions of Sec. 86.137(b)(3) 
through (6) of this chapter apply for highway fuel economy test except 
that only one exhaust sample collection bag and one dilution air sample 
collection bag need be connected to the sample collection systems.
    (5) Operate the vehicle over one Highway Fuel Economy Driving 
Schedule cycle according to the dynamometer driving schedule specified 
in Sec. 600.109(b).
    (6) When the vehicle reaches zero speed at the end of the 
preconditioning cycle, the driver has 17 seconds to prepare for the 
emission measurement cycle of the test. Reset and enable the roll 
revolution counter.
    (7) Operate the vehicle over one Highway Fuel Economy Driving 
Schedule cycle according to the dynamometer driving schedule specified 
in Sec. 600.109(b) while sampling the exhaust gas.
    (8) Sampling must begin two seconds before beginning the first 
acceleration of the fuel economy measurement cycle and must end two 
seconds after the end of the deceleration to zero. At the end of the 
deceleration to zero speed, the roll or shaft revolutions must be 
recorded.
    (i) For methanol dual fuel automobiles, the procedures of 
Sec. 600.111 (a) and (b) shall be performed for each of the required 
test fuels:
    (1) Gasoline or diesel fuel as specified in Sec. 600.107 (a) and 
(b); and
    (2) Methanol fuel as specified in Sec. 600.107 (c) and (d); and
    (3) A mixture containing 50% gasoline or diesel and 50% methanol by 
volume, applicable during model years 1993 through 1995; or
    (4) In lieu of testing using the mixture containing 50% gasoline or 
diesel and 50% methanol by volume, the manufacturer must provide a 
written statement attesting that the equal or superior energy 
efficiency is attained while using the 50% gasoline or diesel and 50% 
methanol mixture compared to using gasoline.
    15. A new Sec. 600.113-93 is added to subpart B to read as follows:


Sec. 600.113-93  Fuel economy calculations.

    The Administrator will use the calculation procedure set forth in 
this section for all official EPA testing of vehicles fueled with 
gasoline, diesel, or methanol fuel. The calculations of the weighted 
fuel economy values require input of the weighted grams/mile values for 
HC, CO, and CO2, and, additionally for methanol fueled automobiles 
CH3OH and HCHO for both the city fuel economy test and the highway 
fuel economy test. Additionally, the specific gravity, carbon weight 
fraction and net heating value of the test fuel must be determined. The 
city and highway fuel economy values shall be calculated as specified 
in this section. A sample appears in Appendix II to this part.
    (a) Calculate the weighted grams/mile values for the city fuel 
economy test for HC, CO, and CO2, and, additionally for methanol-
fueled automobiles, CH3OH and HCHO as specified in Sec. 86.144 of 
this chapter. Measure and record the test fuel's properties as 
specified in paragraph (c) of this section.
    (b)(1) Calculate the mass values for the highway fuel economy test 
for HC, CO, and CO2, and CH3OH and HCHO where applicable, as 
specified in Sec. 86.144(b) of this chapter. Measure and record the 
test fuel's properties as specified in paragraph (c) of this section.
    (2) Calculate the grams/mile values for the highway fuel economy 
test for HC, CO, and CO2, and CH3OH and HCHO where 
applicable, by dividing the mass values obtained in paragraph (b)(1) of 
this section, by the actual distance traveled, measured in miles, as 
specified in Sec. 86.135(h) of this chapter.
    (c)(1) Gasoline test fuel properties shall be determined by 
analysis of a fuel sample taken from the fuel supply. A sample shall be 
taken after each addition of fresh fuel to the fuel supply. 
Additionally, the fuel shall be resampled once a month to account for 
any fuel property changes during storage. Less frequent resampling may 
be permitted if EPA concludes, on the basis of manufacturer-supplied 
data, that the properties of test fuel in the manufacturer's storage 
facility will remain stable for a period longer than one month. The 
fuel samples shall be analyzed to determine the following fuel 
properties:
    (i) Specific gravity per ASTM D 1298 (Incorporated by reference as 
specified in Sec. 600.011-93).
    (ii) Carbon weight fraction per ASTM D 3343 (Incorporated by 
reference as specified in Sec. 600.011-93).
    (iii) Net heating value (Btu/lb) per ASTM D 3338 (Incorporated by 
reference as specified in Sec. 600.011-93).
    (2) Methanol test fuel shall be analyzed to determine the following 
fuel properties:
    (i) Specific gravity using either:
    (A) ASTM D 1298 (incorporated by reference as specified in 
Sec. 600.011-93) for the blend or:
    (B) ASTM D 1298 (incorporated by reference as specified in 
Sec. 600.011-93) for the gasoline fuel component and also for the 
methanol fuel component and combining as follows:

SG=SGg x volume fraction gasoline+SGm x volume fraction 
methanol.

    (ii)(A) Carbon weight fraction using the following equation:

CWF=CWFg x MFg+0.375 x MFm

Where:

CWFg=Carbon weight fraction of gasoline portion of blend per ASTM 
D 3343 (incorporated by reference as specified in Sec. 600.011-93).
MFg=Mass fraction gasoline=(GxSGg)/(GxSGg+MxSGm)
MFm=Mass fraction methanol=(MxSGm)/(GxSGg+MxSGm)

Where:

G=Volume fraction gasoline
M=Volume fraction methanol
SGg=Specific gravity of gasoline as measured by ASTM D 1298 
(Incorporated by reference as specified in Sec. 600.011-93).
SGm=Specific gravity of methanol as measured by ASTM D 1298 
(Incorporated by reference as specified in Sec. 600.011-93).

    (B) Upon the approval of the Administrator, other procedures to 
measure the carbon weight fraction of the fuel blend may be used if the 
manufacturer can show that the procedures are superior to or equally as 
accurate as those specified in this paragraph (c)(2)(ii).
    (iii) Net heating value (BTU/lb) per ASTM D 240 (Incorporated by 
reference as specified in Sec. 600.011-93).
    (d) Calculate the city fuel economy and highway fuel economy from 
the grams/mile values for HC, CO, CO2, and CH3OH and HCHO 
where applicable, and, the test fuel's specific gravity, carbon weight 
fraction and net heating value. The emission values (obtained per 
paragraph (a) or (b) of this section, as applicable) used in each 
calculation of this section shall be rounded in accordance with 
Sec. 86.084-26(a)(6)(iii) of this chapter. The CO2 values 
(obtained per paragraph (a) or (b) of this section, as applicable) used 
in each calculation of this section shall be rounded to the nearest 
gram/mile. The specific gravity and the carbon weight fraction 
(obtained per paragraph (c) of this section) shall be recorded using 
three places to the right of the decimal point. The net heating value 
(obtained per paragraph (c) of this section) shall be recorded to the 
nearest whole Btu/lb. These numbers shall be rounded in accordance with 
the ``Rounding Off Method'' specified in ASTM E 29 (Incorporated by 
reference as specified in Sec. 600.011-93).
    (e)(1) For gasoline-fueled automobiles, the fuel economy in miles 
per gallon is to be calculated using the following equation:

mpg=(5174 x 10\4\ x CWF x SG)/ [((CWF x HC)+(0.429 x  
CO)+(0.273 x CO2))  x ((0.6 x SGxNHV)+5471)]
Where:

HC=Grams/mile HC as obtained in paragraph (d) of this section.
CO=Grams/mile CO as obtained in paragraph (d) of this section.
CO2=Grams/mile CO2 as obtained in paragraph (d) of this 
section.
CWF=Carbon weight fraction of test fuel as obtained in paragraph (d) of 
this section.
NHV=Net heating value by mass of test fuel as obtained in paragraph (d) 
of this section.
SG=Specific gravity of test fuel as obtained in paragraph (d) of this 
section.

    (2) Round the calculated result to the nearest 0.1 miles per 
gallon.
    (f)(1) For diesel-fueled automobiles, calculate the fuel economy in 
miles per gallon of diesel fuel by dividing 2778 by the sum of three 
terms:
    (i) 0.866 multiplied by HC (in grams/miles as obtained in paragraph 
(d) of this section);
    (ii) 0.429 multiplied by CO (in grams/mile as obtained in paragraph 
(d) of this section); and
    (iii) 0.273 multiplied by CO2 (in grams/mile as obtained in 
paragraph (d) of this section).
    (2) Round the quotient to the nearest 0.1 mile per gallon.
    (g) For methanol-fueled automobiles and automobiles designed to 
operate on mixtures of gasoline and methanol, the fuel economy in miles 
per gallon is to be calculated using the following equation:

mpg = (5174 x 10\4\ x CWF x SG)/[((CWF x HC) + (0.429 x CO) + 
(0.273 x CO2))  x  ((0.6 x SGxNHV) + 5471)]

Where:

CWF=Carbon weight fraction of the fuel as determined in paragraph 
(c)(2)(ii) of this section.
SG=Specific gravity of the fuel as determined in paragraph (c)(2)(i) of 
this section.
CWFexHC=Carbon weight fraction of exhaust hydrocarbons= CWFg 
as determined in (c)(2)(ii) of this section (for M100 fuel, 
CWFexHC=0.866).
HC=Grams/mile HC as obtained in paragraph (d) of this section.
CO=Grams/mile CO as obtained in paragraph (d) of this section.
CO2=Grams/mile CO2 as obtained in paragraph (d) of this 
section.
CH3OH=Grams/mile CH3OH (methanol) as obtained in paragraph 
(d) of this section.
HCHO=Grams/mile HCHO (formaldehyde) as obtained in paragraph (d) of 
this section.

Subpart C--[Amended]

    16. A new Sec. 600.201-93 is added to subpart C to read as follows:


Sec. 600.201-93  General applicability.

    The provisions of this subpart are applicable to 1993 and later 
model year gasoline-fueled, diesel-fueled, alcohol-fueled, natural gas-
fueled, alcohol dual fuel, and natural gas dual fuel automobiles.
    17. A new Sec. 600.206-93 is added to subpart C to read as follows:


Sec. 600.206-93  Calculation and use of fuel economy values for 
gasoline-fueled, diesel-fueled, electric, alcohol-fueled, natural gas-
fueled, alcohol dual fuel, and natural gas dual fuel vehicle 
configurations.

    (a) Fuel economy values determined for each vehicle, and as 
approved in Sec. 600.008 (b) or (f), are used to determine city, 
highway, and combined fuel economy values for each vehicle 
configuration (as determined by the Administrator) for which data are 
available.
    (1) If only one set of city and highway fuel economy values is 
accepted for a vehicle configuration, these values, rounded to the 
nearest tenth of a mile per gallon, comprise the city and highway fuel 
economy values for that configuration.
    (2) If more than one city or highway fuel economy value is accepted 
for a vehicle configuration:
    (i) All data shall be grouped according to the subconfiguration for 
which the data were generated using sales projections supplied in 
accordance with Sec. 600.207(a)(3).
    (ii) Within each group of data, all values are harmonically 
averaged and rounded to the nearest 0.0001 of a mile per gallon in 
order to determine city and highway fuel economy values for each 
subconfiguration at which the vehicle configuration was tested.
    (iii) All city fuel economy values and all highway fuel economy 
values calculated in paragraph (a)(2)(ii) of this section are 
(separately for city and highway) averaged in proportion to the sales 
fraction (rounded to the nearest 0.0001) within the vehicle 
configuration (as provided to the Administrator by the manufacturer) of 
vehicles of each tested subconfiguration. The resultant values, rounded 
to the nearest 0.0001 mile per gallon, are the city and highway fuel 
economy values for the vehicle configuration.
    (3) The combined fuel economy value for a vehicle configuration is 
calculated by harmonically averaging the city and highway fuel economy 
values, as determined in Sec. 600.206(a) (1) or (2), weighted 0.55 and 
0.45 respectively, and rounded to the nearest 0.0001 mile per gallon. A 
sample of this calculation appears in Appendix II to this part.
    (4) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles the procedures of paragraphs (a) (1) through (3) of this 
section shall be used to calculate two separate sets of city, highway, 
and combined fuel economy values for each configuration.
    (i) Calculate the city, highway, and combined fuel economy values 
from the tests performed using gasoline or diesel test fuel.
    (ii) Calculate the city, highway, and combined fuel economy values 
from the tests performed using alcohol or natural gas test fuel.
    (b) If only one equivalent petroleum-based fuel economy value 
exists for an electric configuration, that value, rounded to the 
nearest tenth of a mile per gallon, will compose the petroleum-based 
fuel economy for that configuration.
    (c) If more than one equivalent petroleum-based fuel economy value 
exists for an electric vehicle configuration, all values for that 
vehicle configuration are harmonically averaged and rounded to the 
nearest 0.0001 mile per gallon for that configuration.
    18. A new Sec. 600.207-93 is added to subpart C to read as follows:


Sec. 600.207-93  Calculation of fuel economy values for a model type.

    (a) Fuel economy values for a base level are calculated from 
vehicle configuration fuel economy values as determined in 
Sec. 600.206(a) for low-altitude tests.
    (1) If the Administrator determines that automobiles intended for 
sale in the State of California are likely to exhibit significant 
differences in fuel economy from those intended for sale in other 
states, he will calculate fuel economy values for each base level for 
vehicles intended for sale in California and for each base level for 
vehicles intended for sale in the rest of the states.
    (2) In order to highlight the fuel efficiency of certain designs 
otherwise included within a model type, a manufacturer may wish to 
subdivide a model type into one or more additional model types. This is 
accomplished by separating subconfigurations from an existing base 
level and placing them into a new base level. The new base level is 
identical to the existing base level except that it shall be 
considered, for the purposes of this paragraph, as containing a new 
basic engine. The manufacturer will be permitted to designate such new 
basic engines and base level(s) if:
    (i) Each additional model type resulting from division of another 
model type has a unique car line name and that name appears on the 
label and on the vehicle bearing that label;
    (ii) The subconfigurations included in the new base levels are not 
included in any other base level which differs only by basic engine 
(i.e., they are not included in the calculation of the original base 
level fuel economy values); and
    (iii) All subconfigurations within the new base level are 
represented by test data in accordance with Sec. 600.010(c)(ii).
    (3) The manufacturer shall supply total model year sales 
projections for each car line/vehicle subconfiguration combination.
    (i) Sales projections must be supplied separately for each car 
line-vehicle subconfiguration intended for sale in California and each 
car line/vehicle subconfiguration intended for sale in the rest of the 
states if required by the Administrator under paragraph (a)(1) of this 
section.
    (ii) Manufacturers shall update sales projections at the time any 
model type value is calculated for a label value.
    (iii) The requirements of this paragraph may be satisfied by 
providing an amended application for certification, as described in 
Sec. 86.084-21 of this chapter.
    (4) Vehicle configuration fuel economy values, as determined in 
Sec. 600.206(a), are grouped according to base level.
    (i) If only one vehicle configuration within a base level has been 
tested, the fuel economy value from that vehicle configuration 
constitutes the fuel economy for that base level.
    (ii) If more than one vehicle configuration within a base level has 
been tested, the vehicle configuration fuel economy values are 
harmonically averaged in proportion to the respective sales fraction 
(rounded to the nearest 0.0001) of each vehicle configuration and the 
resultant fuel economy value rounded to the nearest 0.0001 mile per 
gallon.
    (5) The procedure specified in Sec. 600.207(a) will be repeated for 
each base level, thus establishing city, highway, and combined fuel 
economy values for each base level.
    (6) For the purposes of calculating a base level fuel economy 
value, if the only vehicle configuration(s) within the base level are 
vehicle configuration(s) which are intended for sale at high altitude, 
the Administrator may use fuel economy data from tests conducted on 
these vehicle configuration(s) at high altitude to calculate the fuel 
economy for the base level.
    (7) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles the procedures of paragraphs (a)(1) through (6) of this 
section shall be used to calculate two separate sets of city, highway, 
and combined fuel economy values for each base level.
    (i) Calculate the city, highway, and combined fuel economy values 
from the tests performed using gasoline or diesel test fuel.
    (ii) Calculate the city, highway, and combined fuel economy values 
from the tests performed using alcohol or natural gas test fuel.
    (b) For each model type, as determined by the Administrator, a 
city, highway, and combined fuel economy value will be calculated by 
using the projected sales and fuel economy values for each base level 
within the model type.
    (1) If the Administrator determines that automobiles intended for 
sale in the State of California are likely to exhibit significant 
differences in fuel economy from those intended for sale in other 
states, he will calculate fuel economy values for each model type for 
vehicles intended for sale in California and for each model type for 
vehicles intended for sale in the rest of the states.
    (2) The sales fraction for each base level is calculated by 
dividing the projected sales of the base level within the model type by 
the projected sales of the model type and rounding the quotient to the 
nearest 0.0001.
    (3) The city fuel economy values of the model type (calculated to 
the nearest 0.0001 mpg) are determined by dividing one by a sum of 
terms, each of which corresponds to a base level and which is a 
fraction determined by dividing:
    (i) The sales fraction of a base level; by
    (ii) The city fuel economy value for the respective base level.
    (4) The procedure specified in paragraph (b)(3) of this section is 
repeated in an analogous manner to determine the highway and combined 
fuel economy values for the model type.
    (5) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles the procedures of paragraphs (b)(1) through (4) of this 
section shall be used to calculate two separate sets of city, highway, 
and combined fuel economy values for each model type.
    (i) Calculate the city, highway, and combined fuel economy values 
from the tests performed using gasoline or diesel test fuel.
    (ii) Calculate the city, highway, and combined fuel economy values 
from the tests performed using alcohol or natural gas test fuel.
    19. A new Sec. 600.209-95 is added to subpart C to read as follows:


Sec. 600.209-95  Calculation of fuel economy values for labeling.

    (a) For the purposes of calculating the city model type fuel 
economy value for labeling the manufacturer shall:
    (1)(i) For general labels for gasoline-fueled, diesel-fueled, 
alcohol-fueled, and natural gas-fueled automobiles multiply the city 
model type fuel economy value determined in Sec. 600.207 (b), by 0.90, 
rounding the product to the nearest whole mpg; or
    (ii) For general labels for alcohol dual fuel and natural gas dual 
fuel automobiles:
    (A) Multiply the city model type fuel economy calculated from the 
tests performed using gasoline or diesel test fuel as determined in 
Sec. 600.207 (b)(5)(i) by 0.90, rounding the product to the nearest 
whole mpg; and
    (B) Multiply the city model type fuel economy calculated from the 
tests performed using alcohol or natural gas test fuel as determined in 
Sec. 600.207 (b)(5)(ii) by 0.90, rounding the product to the nearest 
whole mpg; or
    (2)(i) For specific labels for gasoline-fueled, diesel-fueled, 
alcohol-fueled, and natural gas-fueled automobiles, multiply the city 
model type fuel economy value determined in Sec. 600.206 (a)(2)(iii), 
by 0.90, rounding the product to the nearest whole mpg; or
    (ii) For specific labels for alcohol dual fuel and natural gas dual 
fuel automobiles:
    (A) Multiply the city model type fuel economy calculated from the 
tests performed using gasoline or diesel test fuel as determined in 
Sec. 600.206 (a)(2)(iii) and (4)(i) by 0.90, rounding the product to 
the nearest whole mpg; and
    (B) Multiply the city model type fuel economy calculated from the 
tests performed using alcohol or natural gas test fuel as determined in 
Sec. 600.206 (a)(2)(iii) and (4)(ii) by 0.90, rounding the product to 
the nearest whole mpg.
    (b) For the purposes of calculating the highway model type fuel 
economy value for labeling the manufacturer shall:
    (1)(i) For general labels for gasoline-fueled, diesel-fueled, 
alcohol-fueled, and natural gas-fueled automobiles, multiply the 
highway model type fuel economy value determined in Sec. 600.207 (b), 
by 0.78, rounding the product to the nearest whole mpg; or
    (ii) For general labels for alcohol dual fuel and natural gas dual 
fuel automobiles:
    (A) Multiply the highway model type fuel economy calculated from 
the tests performed using gasoline or diesel test fuel as determined in 
Sec. 600.207 (b)(5)(i) by 0.78, rounding the product to the nearest 
whole mpg; and
    (B) Multiply the highway model type fuel economy calculated from 
the tests performed using alcohol or natural gas test fuel as 
determined in Sec. 600.207 (b)(5)(ii) by 0.78, rounding the product to 
the nearest whole mpg; or
    (2)(i) For specific labels for gasoline-fueled, diesel-fueled, 
alcohol-fueled, and natural gas-fueled automobiles, multiply the 
highway model type fuel economy value determined in Sec. 600.206 
(a)(iii), by 0.78, rounding the product to the nearest whole mpg; or
    (ii) For specific labels for alcohol dual fuel and natural gas dual 
fuel automobiles:
    (A) Multiply the highway model type fuel economy calculated from 
the tests performed using gasoline or diesel test fuel as determined in 
Sec. 600.206 (a)(2)(iii) and (4)(i) by 0.78, rounding the product to 
the nearest whole mpg; and
    (B) Multiply the highway model type fuel economy calculated from 
the tests performed using alcohol or natural gas test fuel as 
determined in Sec. 600.206 (a)(2)(iii) and (4)(ii) by 0.78, rounding 
the product to the nearest whole mpg.
    (c) If the resulting city value determined in paragraph (a) of this 
section exceeds the resulting highway value determined in paragraph (b) 
of this section, the city value will be set equal to the highway value.
    (d) For the purposes of calculating the combined fuel economy for a 
model type, to be used in determining annual fuel costs under 
Sec. 600.307, the manufacturer shall (except as provided for in 
paragraph (d)(2) of this section):
    (1)(i) For gasoline-fueled, diesel-fueled, alcohol-fueled, and 
natural gas-fueled automobiles, harmonically average the unrounded city 
and highway values, determined in paragraphs (a)(1)(i) and (b)(1)(i), 
or (a)(2)(i) and (b)(2)(i) of this section weighted 0.55 and 0.45 
respectively, and round to the nearest whole mpg. (An example of this 
calculation procedure appears in Appendix II of this part); or
    (ii) For alcohol dual fuel and natural gas dual fuel automobiles, 
harmonically average the unrounded city and highway values from the 
tests performed using gasoline or diesel test fuel as determined in 
paragraphs (a)(1)(ii)(A) and (b)(1)(ii)(A), or (a)(2)(ii)(A) and 
(b)(2)(ii)(A) of this section.
    (2) If the resulting city value determined in paragraph (a) of this 
section exceeds the resulting highway value determined in paragraph (b) 
of this section, the combined fuel economy will be set equal to the 
highway value, rounded to the nearest whole mpg.

Subpart D--[Amended]

    20. A new Sec. 600.301-95 is added to subpart D to read as follows:


Sec. 600.301-95  General applicability.

    (a) The provisions of this subpart are applicable to 1995 and later 
model year gasoline-fueled, diesel-fueled, alcohol-fueled, natural gas-
fueled, alcohol dual fuel, and natural gas dual fuel automobiles.
    (b)(1) Manufacturers that produce only electric vehicles are exempt 
from the requirement of this subpart, except with regard to the 
requirements in those sections pertaining specifically to electric 
vehicles.
    (2) Manufacturers with worldwide production (excluding electric 
vehicle production) of less than 10,000 gasoline-fueled and/or diesel 
powered passenger automobiles and light trucks may optionally comply 
with the electric vehicle requirements in this subpart.
    21. A new Sec. 600.307-95 is added to subpart D to read as follows:


Sec. 600.307-95  Fuel economy label format requirements.

    (a)(1) Fuel economy labels must be:
    (i) Rectangular in shape with a minimum height of 4.5 inches (114 
mm) and a minimum length of 7.0 inches (178 mm) as depicted in Appendix 
VIII of this part.
    (ii) Printed in a color which contrasts with the paper color.
    (iii) The label shall have a contrasting border at least 0.25 
inches (6.4 mm) wide.
    (2) The top 50 percent of the total fuel economy label area shall 
contain only the following information and in the same format depicted 
in the label format in Appendix VIII of this part:
    (i) The titles ``CITY MPG'' and ``HIGHWAY MPG'', centered over the 
applicable fuel economy estimates, in bold caps 10 points in size.
    (ii)(A) For gasoline-fueled, diesel-fueled, alcohol-fueled, and 
natural gas-fueled automobiles, the city and highway fuel economy 
estimates calculated in accordance with Sec. 600.209 (a) and (b).
    (B) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the city and highway fuel economy estimates for operation 
on gasoline or diesel fuel as calculated in Sec. 600.209 (a)(1)(ii)(A) 
or (2)(ii)(A) and Sec. 600.209 (b)(1)(ii)(A) or (2)(ii)(A).
    (iii) The fuel pump logo.
    (iv) The phrase ``Compare this [vehicle/truck] to others in the 
FREE FUEL ECONOMY GUIDE available at the dealer,'' shall be ``dropped-
out'' of the top border as depicted in the sample label format in 
Appendix VIII of this part. The phase shall be in lower case in a 
medium condensed type except for the words ``FREE FUEL ECONOMY GUIDE'' 
which shall be capitalized in a bold condensed type and no smaller than 
12 points in size.
    (v)(A) For alcohol-fueled automobiles, the title ``(insert 
appropriate fuel (example ``METHANOL ``(M85))'')''. The title shall be 
positioned above the fuel pump logo and shall be in upper case in a 
bold condensed type and no smaller than 12 points in size.
    (B) For natural gas-fueled automobiles, the title ``NATURAL GAS*''. 
The title shall be positioned above the fuel pump logo and shall be in 
uppercase in a bold condensed type and no smaller than 12 points in 
size.
    (C) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the title ``DUAL FUEL*''. The title shall be positioned 
above the fuel pump logo and shall be in upper case in a bold condensed 
type and no smaller than 12 points in size.
    (vi)(A) For alcohol-fueled automobiles, the title ``(insert 
appropriate fuel (example ``M85''))'' centered above the title ``CITY 
MPG'' and above the title ``HIGHWAY MPG'' in bold caps 10 points in 
size.
    (B) For natural gas-fueled automobile, the title ``GASOLINE 
EQUIVALENT'' centered above the title ``CITY MPG'' and above the title 
``HIGHWAY MPG'' in bold caps 10 points in size.
    (C) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the title ``GASOLINE'' centered above the title ``CITY 
MPG'' and above the title ``HIGHWAY MPG'' in bold caps 10 points in 
size.
    (3) The bottom 50 percent of the label shall contain the following 
information:
    (i) The [vehicle/truck] description, as described in paragraph (c) 
or (d) of this section, when applicable.
    (ii)(A) A statement: ``Actual mileage will vary with options, 
driving conditions, driving habits and [vehicle's/truck's] condition. 
Results reported to EPA indicate that the majority of [vehicles/trucks] 
with these estimates will achieve between ______ and ______ mpg in the 
city, and between ______ and ______  mpg on the highway.''
    (B) The range values for this statement are to be calculated in 
accordance with the following:
    (1) The lower range values shall be determined by multiplying the 
city and highway estimates by 0.85, then rounding to the next lower 
integer value.
    (2) The upper range values shall be determined by multiplying the 
city and highway estimates by 1.15 and rounding to the next higher 
integer value.
    (iii)(A) A statement: ``For comparison shopping, all [vehicles/
trucks] classified as [insert category as determined in Sec. 600.315] 
have been issued mileage ratings ranging from ______ to ______ mpg city 
and ______ to ______ mpg highway.'' (The range values are those 
determined in accordance with Sec. 600.311.); or, when applicable,
    (B) A statement: ``A range of fuel economy values for other 
[vehicles/trucks] classified as [insert category as determined in 
Sec. 600.315] is not available at this time.'' or by the statement: 
``Not available.''
    (iv)(A) The statement: ``Estimated Annual Fuel Cost:'' followed by 
the appropriate value calculated in accordance with paragraph (g) or 
(h) of this section. The estimated annual fuel cost value for alcohol 
dual fuel automobiles and natural gas dual fuel vehicles to appear on 
the fuel economy label shall be that calculated based on operating the 
vehicle on gasoline or diesel fuel as determined in Sec. 600.307(g) and 
(h). At the manufacturers option, the label may also contain the 
estimated annual fuel cost value based on operating the vehicle on the 
alternative fuel.
    (B) At the manufacturers option, it may include the fuel cost and 
the annual mileage interval used to determine the annual fuel cost.
    (v) For the 1986 model year only, the statement: ``Under EPA's 
previous fuel economy program, used prior to the 1985 model year, this 
[vehicle/truck] would have received a single estimate of [insert 
unadjusted city value rounded to the nearest whole mpg, as determined 
in Sec. 600.207(b)] mpg.''
    (vi)(A) The Gas Guzzler statement, when applicable (see paragraph 
(f) of this section), must be centered on a separate line between the 
bottom border and the Estimated Annual Fuel Cost statements. The words 
``Gas Guzzler'' shall be highlighted.
    (B) The type size shall be at least as large as the largest type 
size in the bottom 50 percent of the label.
    (vii)(A) For alcohol-fueled, and natural gas-fueled automobiles, 
the statement: ``*This vehicle operates on [insert appropriate fuel(s)] 
only.'' shall appear above the bottom border. The phrase shall be in 
lower case in a medium condensed type except for the fuels listed which 
shall be capitalized in a bold condensed type no smaller than 12 points 
in size.
    (B) For natural gas-fueled automobiles, the statements: ``All fuel 
economy values on this label pertain to gasoline equivalent fuel 
economy. To convert these values into units of miles per 100 cubic feet 
of natural gas, multiply by 0.823.'' At the manufacturers option, the 
statement ``To convert these values into units of miles per 100 cubic 
feet of natural gas, multiply by 0.823.'' may be replaced by the 
statement ``The fuel economy in units of miles per (insert units used 
in retail) is estimated to be (insert city fuel economy value) in the 
city, and (insert highway fuel economy value) on the highway.
    (C) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the statement: ``This vehicle operates on [insert gasoline 
or diesel as appropriate] and [insert other fuel(s) as appropriate].'' 
shall appear above the bottom border. The phrase shall be in lower case 
in a medium condensed type except for the words ``gasoline'' or 
``diesel'' (as appropriate) and the other fuels listed, which shall be 
capitalized in a bold condensed type no smaller than 12 points in size.
    (viii) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the statement: ``All fuel economy values on this label 
pertain to [insert gasoline or diesel as appropriate] fuel usage. 
[insert other fuel(s) as appropriate] fuel(s) usage will yield 
different values. See the FREE FUEL ECONOMY GUIDE for information on 
[insert other fuel(s)] .'' At the manufacturers option, the above 
statements may be replaced by the statement ``The fuel economy while 
using [insert appropriate fuel (example ``M85)] is estimated to be 
[insert city fuel economy value and appropriate units] in the city and 
[insert highway fuel economy value and appropriate units] on the 
highway. See the FREE FUEL ECONOMY GUIDE for other information on 
[insert appropriate fuel].
    (4) The maximum type size for the statements located in the lower 
50 percent of the label shall not exceed 10 points in size, except as 
provided for in paragraphs (a)(3)(vii)(A) and (B) of this section.
    (b)(1) The city mpg number shall be displayed on the left and the 
highway mpg number displayed on the right.
    (2)(i) Except for the digit ``one,'' each mpg digit shall measure 
at least 0.35 inches by 0.6 inches (9x15mm) in width and height 
respectively.
    (ii) The digit ``one,'' shall measure at least 0.2 inches by 0.6 
inches (5x15mm) in width and height respectively.
    (3) The strike width of each mpg digit shall be at least 0.075 
inches (1.9mm).
    (4)(i) MPG digits not printed as a single character shall be made 
of a matrix of smaller characters. This matrix shall be at least four 
characters wide by five characters high (with the exception of three 
characters wide for the numerical character denoting ``one''.)
    (ii) The small characters shall be made of successive overstrikes 
to form a reasonably dark and continuous line that approximates a 
single large character.
    (5)(i) If manufacturer chooses to enlarge the label from that 
depicted in Appendix VIII of this part, the logo and the fuel economy 
label values, including the titles ``CITY MPG'' and ``HIGHWAY MPG,'' 
must be increased in the same proportion.
    (ii) The area bounded by the bottom of the fuel pump logo to the 
top of the border must continue to represent at least 50 percent of the 
available label area.
    (c) The vehicle description on general labels will be as follows:
    (1) Model year;
    (2) Vehicle car line;
    (3) Engine displacement, in cubic inches, cubic centimeters, or 
liters whichever is consistent with the customary description of that 
engine;
    (4) Number of engine cylinders or rotors;
    (5) Additional engine description, if necessary to distinguish 
otherwise identical model types, as approved by the Administrator;
    (6) Fuel metering system, including number of carburetor barrels, 
if applicable;
    (7) Transmission class;
    (8) Catalyst usage, if necessary to distinguish otherwise identical 
model types; and
    (9) California emission control system usage, if applicable and if 
the Administrator determines that automobiles intended for sale in the 
State of California are likely to exhibit significant differences in 
fuel economy from those intended for sale in other states.
    (d) The vehicle description on specific labels will be as follows:
    (1) The descriptions of paragraph (c) of this section;
    (2) Inertia weight class;
    (3) Axle ratio; and
    (4) Other engine or vehicle parameters, if approved by the 
Administrator.
    (e) Where the fuel economy label is incorporated with the pricing 
information sticker, the applicable vehicle description, as set forth 
in paragraph (c) or (d) of this section, does not have to be repeated 
if the information is readily found on the Motor Vehicle Information 
and Cost Savings Act label.
    (f)(1) For fuel economy labels of passenger automobile model types 
requiring a tax statement under Sec. 600.513, the phrase ``* * * Gas 
Guzzler Tax: $____________ * * *''.
    (2) The tax value required by this paragraph shall be based on the 
combined fuel economy value for the model type calculated in accordance 
with Sec. 600.207 and rounded to the nearest 0.1 mpg. Adjustments in 
accordance with Sec. 600.209 will not be used to determine the tax 
liability.
    (g) General labels. The annual fuel cost estimate for operating an 
automobile included in a model type shall be computed by using values 
for the fuel cost per volume (gallon for liquid fuels, cubic foot for 
gaseous fuels) and average annual mileage, predetermined by the 
Administrator, and the fuel economy determined in Sec. 600.209(d).
    (1) The annual fuel cost estimate for a model type is computed by 
multiplying:
    (i) Fuel cost per gallon (natural gas must be expressed in units of 
cost per equivalent gallon, where 100 SCF = 0.823 equivalent gallons) 
expressed in dollars to the nearest 0.05 dollar; by
    (ii) Average annual mileage, expressed in miles per year to the 
nearest 1,000 miles per year; by
    (iii) The average, rounded to the nearest 0.0001 gallons per mile 
(natural gas must be expressed in units of gallons equivalent per mile 
where 100 SCF=0.823 equivalent gallons) of the fuel economy value 
determined in Sec. 600.209(d) for a model type.
    (2) The product computed in paragraph (g)(1) of this section and 
rounded to the nearest dollar per year will comprise the annual fuel 
cost estimate that appears on general labels for the model type.
    (h) Specific labels. The annual fuel cost estimate for operating an 
automobile included in a vehicle configuration will be computed by 
using the values for the fuel cost per volume (gallon for liquid fuels, 
cubic feet for gaseous fuels) and average mileage and the fuel economy 
determined in paragraph (h)(1)(iii) of this section.
    (1) The annual fuel cost estimate for vehicle configuration is 
computed by multiplying:
    (i) Fuel cost per gallon (natural gas must be expressed in units of 
cost per equivalent gallon, where 100 SCF=0.823 equivalent gallons) 
expressed in dollars to the nearest 0.05 dollar; by
    (ii) Average annual mileage, expressed in miles per year to the 
nearest 1,000 miles per year; by
    (iii) The inverse, rounded to the nearest 0.0001 gallons per mile 
(natural gas must be expressed in units of gallon equivalent per mile, 
where 100 SCF=0.823 equivalent gallons) of the fuel economy value 
determined in Sec. 600.206(a)(2)(iii) for a vehicle configuration (city 
and highway values will be adjusted by the factors in Sec. 600.209(a) 
and (b) and combined according to Sec. 600.209(d) before the 
calculation).
    (2) The product computed in paragraph (h)(1) of this section and 
rounded to the nearest dollar per year will comprise the annual fuel 
cost estimate that appears on specific labels for that vehicle 
configuration.

Subpart F--[Amended]

    22. A new Sec. 600.501-93 is added to subpart F to read as follows:


Sec. 600.501-93  General applicability.

    (a) The provisions of this subpart are applicable to 1993 and later 
model year gasoline-fueled, diesel-fueled, alcohol-fueled, natural gas-
fueled, alcohol dual fuel and natural gas dual fuel automobiles.
    (b)(1) Manufacturers that produce only electric vehicles are exempt 
from the requirement of this subpart, except with regard to the 
requirements in those sections pertaining specifically to electric 
vehicles.
    (2) Manufacturers with worldwide production (excluding electric 
vehicle production) of less than 10,000 gasoline-fueled and/or diesel 
powered passenger automobiles and light trucks may optionally comply 
with the electric vehicle requirements in this subpart.
    23. A new Sec. 600.510-93 is added to subpart F to read as follows:


Sec. 600.510-93  Calculation of average fuel economy.

    (a) Average fuel economy will be calculated to the nearest 0.1 mpg 
for the classes of automobiles identified in this section, and the 
results of such calculations will be reported to the Secretary of 
Transportation for use in determining compliance with the applicable 
fuel economy standards.
    (1) An average fuel economy calculation will be made for the 
category of passenger automobiles that is domestically manufactured as 
defined in Sec. 600.511(d)(1).
    (2) An average fuel economy calculation will be made for the 
category of passenger automobiles that is not domestically manufactured 
as defined in Sec. 600.511(d)(2).
    (3) An average fuel economy calculation will be made for the 
category of light trucks that is domestically manufactured as defined 
in Sec. 600.511(e)(1).
    (4) An average fuel economy calculation will be made for the 
category of light trucks that is not domestically manufactured as 
defined in Sec. 600.511(e)(2).
    (b) For the purpose of calculating average fuel economy under 
paragraph (c), of this section:
    (1) All fuel economy data submitted in accordance with 
Sec. 600.006(e) or Sec. 600.502(c) shall be used.
    (2) The combined city/highway fuel economy will be calculated for 
each model type in accordance with Sec. 600.207 of this section except 
that:
    (i) Separate fuel economy values will be calculated for model types 
and base levels associated with car lines that are:
    (A) Domestically produced; and
    (B) Nondomestically produced and imported;
    (ii) Total model year production data, as required by this subpart, 
will be used instead of sales projections;
    (iii) The fuel economy value of diesel-powered model types will be 
multiplied by the factor 1.0 to correct gallons of diesel fuel to 
equivalent gallons of gasoline;
    (iv) The fuel economy value will be rounded to the nearest 0.1 mpg; 
and
    (v) At the manufacturer's option, those vehicle configurations that 
are selfcompensating to altitude changes may be separated by sales into 
high-altitude sales categories and low-altitude sales categories. These 
separate sales categories may then be treated (only for the purpose of 
this section) as separate configurations in accordance with the 
procedure of paragraph Sec. 600.207(a)(4)(ii).
    (3) The fuel economy value for each vehicle configuration is the 
combined fuel economy calculated according to Sec. 600.206 except that:
    (i) Separate fuel economy values will be calculated for vehicle 
configurations associated with car lines that are:
    (A) Domestically produced; and
    (B) Nondomestically produced and imported;
    (ii) Total model year production data, as required by this subpart 
will be used instead of sales projections; and
    (iii) The fuel economy value of diesel-powered model types will be 
multiplied by the factor 1.0 to convert gallons of diesel fuel to 
equivalent gallons of gasoline.
    (c) Except as permitted in paragraph (d) of this section, the 
average fuel economy will be calculated individually for each category 
identified in paragraph (a) of this section as follows:
    (1) Divide the total production volume of that category of 
automobiles; by
    (2) A sum of terms, each of which corresponds to a model type 
within that category of automobiles and is a fraction determined by 
dividing:
    (i) The number of automobiles of that model type produced by the 
manufacturer in the model year; by
    (ii) For gasoline-fueled and diesel-fueled model types, the fuel 
economy calculated for that model type in accordance with paragraph 
(b)(2) of this section; or
    (iii) For alcohol-fueled model types, the fuel economy value 
calculated for that model type in accordance with (b)(2) of this 
section divided by 0.15 and rounded to the nearest 0.1 mpg; or
    (iv) For natural gas-fueled model types, the fuel economy value 
calculated for that model type in accordance with (b)(2) of this 
section divided by 0.15 and rounded to the nearest 0.1 mpg; or
    (v) For alcohol dual fuel model types, for model years 1993 through 
2004, the harmonic average of the following two terms; the result 
rounded to the nearest 0.1 mpg:
    (A) The combined model type fuel economy value for operation on 
gasoline or diesel fuel as determined in Sec. 600.207(b)(5)(i); and
    (B) The combined model type fuel economy value for operation on 
alcohol fuel as determined in Sec. 600.207(b)(5)(ii) divided by 0.15 
provided the requirements of Sec. 600.510 (g) are met; or
    (vi) For natural gas dual fuel model types, for model years 1993 
through 2004, the harmonic average of the following two terms; the 
result rounded to the nearest 0.1 mpg:
    (A) The combined model type fuel economy value for operation on 
gasoline or diesel as determined in Sec. 600.207(b)(5)(i); and
    (B) The combined model type fuel economy value for operation on 
natural gas as determined in Sec. 600.207(b)(5)(ii) divided by 0.15 
provided the requirements of paragraph (g) of this section are met.
    (d) The Administrator may approve alternative calculation methods 
if they are part of an approved credit plan under the provisions of 15 
U.S.C. 2003.
    (e) For passenger categories identified in paragraphs (a) (1) and 
(2) of this section, the average fuel economy calculated in accordance 
with paragraph (c) of this section shall be adjusted using the 
following equation:

AFEadj = AFE[((0.55 x a x c) + (0.45 x c) + (0.5556 x a) + 0.4487) 
/ ((0.55 x a) + 0.45)] + IW

Where:

AFEadj = Adjusted average combined fuel economy, rounded to the 
nearest 0.1 mpg.
AFE = Average combined fuel economy as calculated in paragraph (c) of 
this section, rounded to the nearest 0.0001 mpg.
a = Sales-weight average (rounded to the nearest 0.0001 mpg) of all 
model type highway fuel economy values (rounded to the nearest 0.1 mpg) 
divided by the sales-weighted average (rounded to the nearest 0.0001 
mpg) of all model type city fuel economy values (rounded to the nearest 
0.1 mpg). The quotient shall be rounded to 4 decimal places. These 
average fuel economies shall be determined using the methodology of 
paragraph (c) of this section.
c = 0.0022 for the 1986 model year.
c = A constant value, fixed by model year. For 1987, the Administrator 
will specify the c value after the necessary laboratory humidity and 
test fuel data become available. For 1988 and later model years, the 
Administrator will specify the c value after the necessary laboratory 
humidity and test fuel data become available.
IW = (9.2917 x 10-3 x SF3IWC x FE3IWC) - (3.5123 x 
10-3 x SF4ETW x FE4IWC)

    Note: Any calculated value of IW less than zero shall be set 
equal to zero.

SF3IWC = The 3000 lb. inertia weight class sales divided by total 
sales. The quotient shall be rounded to 4 decimal places.
SF4ETW = The 4000 lb. equivalent test weight category sales 
divided by total sales. The quotient shall be rounded to 4 decimal 
places.
FE4IWC = The sales-weighted average combined fuel economy of all 
3000 lb. inertia weight class base levels in the compliance category. 
Round the result to the nearest 0.0001 mpg.
FE4IWC = The sales-weighted average combined fuel economy of all 
4000 lb. inertia weight class base levels in the compliance category. 
Round the result to the nearest 0.0001 mpg.

    (f) The Administrator shall calculate and apply additional average 
fuel economy adjustments if, after notice and opportunity for comment, 
the Administrator determines that, as a result of test procedure 
changes not previously considered, such correction is necessary to 
yield fuel economy test results that are comparable to those obtained 
under the 1975 test procedures. In making such determinations, the 
Administrator must find that:
    (1) A directional change in measured fuel economy of an average 
vehicle can be predicted from a revision to the test procedures;
    (2) The magnitude of the change in measured fuel economy for any 
vehicle or fleet of vehicles caused by a revision to the test 
procedures is quantifiable from theoretical calculations or best 
available test data;
    (3) The impact of a change on average fuel economy is not due to 
eliminating the ability of manufacturers to take advantage of 
flexibility within the existing test procedures to gain measured 
improvements in fuel economy which are not the result of actual 
improvements in the fuel economy of production vehicles;
    (4) The impact of a change on average fuel economy is not solely 
due to a greater ability of manufacturers to reflect in average fuel 
economy those design changes expected to have comparable effects on in-
use fuel economy;
    (5) The test procedure change is required by EPA or is a change 
initiated by EPA in its laboratory and is not a change implemented 
solely by a manufacturer in its own laboratory.
    (g)(1) Alcohol dual fuel automobiles and natural gas dual fuel 
automobiles must provide equal or greater energy efficiency while 
operating on alcohol or natural gas as while operating on gasoline or 
diesel fuel to obtain the CAFE credit determined in paragraphs 
(c)(2)(v) and (vi) of this section. The following equation must hold 
true:

Ealt/Epet > or = 1

Where:

Ealt = [FEalt/(NHValtxDalt)]x106 = energy 
efficiency while operating on alternative fuel rounded to the nearest 
0.01 miles/million BTU.
Epet = [FEpet/(NHVpetxDpet)]x106 = energy 
efficiency while operating on gasoline or diesel (petroleum) fuel 
rounded to the nearest 0.01 miles/million BTU.
FEalt is the fuel economy [miles/gallon for liquid fuels or miles/
100 standard cubic feet for gaseous fuels] while operated on the 
alternative fuel as determined in Sec. 600.113;
FEpet is the fuel economy [miles/gallon] while operated on 
petroleum fuel (gasoline or diesel) as determined in Sec. 600.113;
NHValt is the net (lower) heating value [BTU/lb] of the 
alternative fuel;
NHVpet is the net (lower) heating value [BTU/lb] of the petroleum 
fuel;
Dalt is the density [lb/gallon for liquid fuels or lb/100 standard 
cubic feet for gaseous fuels] of the alternative fuel;
Dpet is the density [lb/gallon] of the petroleum fuel.

    (i) The equation must hold true for both the city and highway fuel 
economy values for each test of each test vehicle.
    (ii)(A) The net heating value for alcohol fuels shall be determined 
per ASTM D 240 (Incorporated by reference as specified in Sec. 600.011-
93).
    (B) The density for alcohol fuels shall be determined per ASTM D 
1298 (Incorporated by reference as specified in Sec. 600.011-93).
    (iii) The net heating value and density of gasoline are to be 
determined by the manufacturer in accordance with Sec. 600.113(c).
    (2) For model years 1993 through 1995, alcohol dual fuel 
automobiles designed to operate on mixtures of alcohol and gasoline 
must, in addition to paragraph (g)(1) of this section, to obtain the 
CAFE credit determined in paragraphs (c)(2)(v) and (vi) of this 
section, provide equal or superior energy efficiency while operating on 
a mixture of 50% alcohol, 50% gasoline by volume, as while operating on 
gasoline fuel. The following equation must hold true:

E50/Eg>or=1

Where:

E50=[FE50/(NHV50 x D50)] x 106=energy 
efficiency while operating on 50% alcohol, 50% gasoline rounded to the 
nearest 0.01 miles/million BTU.
Eg=[FEg/(NHVg x Dg)]x106=energy efficiency 
while operating on gasoline fuel rounded to the nearest 0.01 miles/
million BTU.
FE50 is the fuel economy [miles/gallon] while operated on 50% 
alcohol, 50% gasoline as determined in Sec. 600.113;
FEg is the fuel economy [miles/gallon] while operated on gasoline 
as determined in Sec. 600.113;
NHV50 is the net (lower) heating value [BTU/lb] of the 50/50 
blend;
NHVg is the net (lower) heating value [BTU/lb] of gasoline;
D50 is the density [lb/gallon] of the 50/50 blend;
Dg is the density [lb/gallon] of the gasoline.

    (i) To demonstrate that the equation holds true for each engine 
family, the manufacturer will:
    (A) Test one test vehicle in each engine family on both the city 
and highway cycles; or
    (B) In lieu of testing, provide a written statement attesting that 
equal or superior energy efficiency is attained while using a 50% 
alcohol, 50% gasoline mixture compared to using 100% gasoline.
    (ii)(A) The net heating value for the 50% alcohol, 50% gasoline 
mixture shall be determined by ASTM D 240 (Incorporated by reference as 
specified in Sec. 600.011-93).
    (B) The density for the 50% alcohol, 50% gasoline mixture shall be 
determined per ASTM D 1298 (Incorporated by reference as specified in 
Sec. 600.011-93).
    (iii) The net heating value and density of gasoline are to be 
determined by the manufacturer in accordance with Sec. 600.113(c).
    (3) Alcohol dual fuel passenger automobiles and natural gas dual 
fuel passenger automobiles manufactured during model years 1993 through 
2004 must meet the minimum driving range requirements established by 
the Secretary of Transportation (49 CFR part 538) to obtain the CAFE 
credit determined in paragraphs (c)(2)(v) and (vi) of this section.
    (h) For each of the model years 1993 through 2004, and for each 
category of automobile identified in paragraph (a) of this section, the 
maximum increase in average fuel economy determined in paragraph (c) of 
this section attributable to alcohol dual fuel automobiles and natural 
gas dual fuel automobiles shall be 1.2 miles per gallon or as provided 
for in paragraph (i) of this section.
    (1) The Administrator shall calculate the increase in average fuel 
economy to determine if the maximum increase provided in paragraph (h) 
of this section has been reached. The Administrator shall calculate the 
average fuel economy for each category of automobiles specified in 
paragraph (a) of this section by subtracting the average fuel economy 
values calculated in accordance with this section by assuming all 
alcohol dual fuel and natural gas dual fuel automobiles are operated 
exclusively on gasoline (or diesel) fuel from the average fuel economy 
values determined in paragraphs (b)(2)(vi), (b)(2)(vii), and (c) of 
this section. The difference is limited to the maximum increase 
specified in paragraph (h) of this section.
    (i) In the event that the Secretary of Transportation lowers the 
corporate average fuel economy standard applicable to passenger 
automobiles below 27.5 miles per gallon for any model year during 1993 
through 2004, the maximum increase of 1.2 mpg per year specified in 
paragraph (h) of this section shall be reduced by the amount the 
standard was lowered, but not reduced below 0.7 mpg per year.
    24. Section 600.513-91 is amended by revising paragraphs (a) 
introductory text, (a)(2), and (b)(2)(xii) to read as follows:


Sec. 600.513-91  Gas guzzler tax.

    (a) This section applies only to passenger automobiles sold after 
December 27, 1991, regardless of the model year of those vehicles. For 
alcohol dual fuel and natural gas dual fuel automobiles, the fuel 
economy while such automobiles are operated on gasoline will be used 
for Gas Guzzler Tax assessments.
    (1) * * *
    (2) For 1991 and later model year passenger automobiles, the 
combined general label model type fuel economy value used for Gas 
Guzzler Tax assessments shall be calculated in accordance with the 
following equation, rounded to the nearest 0.1 mpg:

FEadj=FE [((0.55 x ag x c) + (0.45 x c) + (0.5556 x ag) 
+ 0.4487)/((0.55 x ag) + 0.45)] + IWg
Where:

FEadj=Fuel economy value to be used for determination of gas 
guzzler tax assessment rounded to the nearest 0.1 mpg.
FE=Combined model type fuel economy calculated in accordance with 
Sec. 600.207, rounded to the nearest 0.0001 mpg.
ag=Model type highway fuel economy, calculated in accordance with 
Sec. 600.207, rounded to the nearest 0.0001 mpg divided by the model 
type city fuel economy calculated in accordance with Sec. 600.207, 
rounded to the nearest 0.0001 mpg. The quotient shall be rounded to 4 
decimal places.
c=gas guzzler adjustment factor=1.300 x 10-3 for the 1986 and 
later model years.
IWg=(9.2917 x 10-3 x SF3IWCG FE3IWCG)
-(3.5123 x 10-3 x SF4ETWG x FE4IWCG)

    Note: Any calculated value of IW less than zero shall be set 
equal to zero.

SF3IWCG=The 3000 lb. inertia weight class sales in the model type 
divided by the total model type sales; the quotient shall be rounded to 
4 decimal places.
SF4ETWG=The 4000 lb. equivalent test weight sales in the model 
type divided by the total model type sales, the quotient shall be 
rounded to 4 decimal places.
FE3IWCG=The 3000 lb. inertial weight class base level combined 
fuel economy used to calculate the model type fuel economy rounded to 
the nearest 0.0001 mpg.
FE4IWCG=The 4000 lb. inertial weight class base level combined 
fuel economy used to calculate the model type fuel economy f/rounded to 
the nearest 0.001 mpg.

    (b) * * *
    (2) * * *
    (xii) Less than 12.5 mpg, the Gas Guzzler Tax statement shall show 
a tax of $7,700.
    25. Appendix VIII to part 600 is revised to read as follows:

Appendix VIII to Part 600--Fuel Economy Label Formats

BILLING CODE 6560-50-P

TR03AU94.002


TR03AU94.003


TR03AU94.004


TR03AU94.005


[FR Doc. 94-18312 Filed 8-2-94; 8:45 am]
BILLING CODE 6560-50-C