[Federal Register Volume 76, Number 210 (Monday, October 31, 2011)]
[Proposed Rules]
[Pages 67288-67313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-26761]
[[Page 67287]]
Vol. 76
Monday,
No. 210
October 31, 2011
Part III
Department of Energy
-----------------------------------------------------------------------
10 CFR Part 490
Alternative Fuel Transportation Program; Alternative Fueled Vehicle
Credit Program (Subpart F) Modification and Other Amendments; Proposed
Rule
Federal Register / Vol. 76, No. 210 / Monday, October 31, 2011 /
Proposed Rules
[[Page 67288]]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
10 CFR Part 490
[Docket ID No. EERE-2011-OT-0066]
RIN 1904-AB81
Alternative Fuel Transportation Program; Alternative Fueled
Vehicle Credit Program (Subpart F) Modification and Other Amendments
AGENCY: Department of Energy (DOE).
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: DOE today proposes a rule pursuant to the Energy Independence
and Security Act of 2007 (EISA), that would revise the allocation of
marketable credits under DOE's Alternative Fuel Transportation Program
(AFTP or Program), by including EISA-specified electric drive vehicles
and investments in qualified alternative fuel infrastructure, nonroad
equipment, and relevant emerging technologies. DOE also is proposing
modifications to the use of Program credits, revisions to the exemption
process, clarifications of the Alternative Compliance option, and
several technical and other amendments intended to make the Program
regulations clearer.
DATES: Public comments on this proposed rulemaking must be received no
later than December 30, 2011 to ensure consideration.
ADDRESSES: DOE has established a docket for this action under Docket ID
No. EERE-2011-OT-0066. All documents in the docket are listed in the
EDOCKET index and may be accessed at http://www.regulations.gov, under
the aforementioned docket number. Submit comments, identified by the
aforementioned docket number, by one of the following methods:
1. Federal eRulemaking Portal: http://www.regulations.gov. Follow
the on-line instructions.
2. Email: [email protected].
3. Mail or deliver: (eight copies) U.S. Department of Energy,
Office of Energy Efficiency and Renewable Energy, EE-2G, RIN 1904-AB81,
1000 Independence Avenue SW., Washington, DC 20585-0121. DOE is
currently using Microsoft Word. Organizations are strongly encouraged
to submit comments electronically, to facilitate timely receipt of
comments and inclusion in the electronic docket.
Copies of this notice and written comments will be placed at the
following Web site address: http://www1.eere.energy.gov/vehiclesandfuels/epact/private/index.html. Before taking final action
on today's proposal, DOE will consider all comments and other relevant
information received on or before the date specified above. All
comments submitted will be made available in the electronic docket set
up for this rulemaking. Therefore, no information desired to be kept
confidential should be submitted to the docket. This docket will be
available via the DOE EDOCKET through http://www.regulations.gov, which
may be located using key words or the above noted docket number. For
more information concerning public participation in this rulemaking,
see the SUPPLEMENTARY INFORMATION section on ``Opportunity for Public
Comment.''
FOR FURTHER INFORMATION CONTACT: For information concerning this
notice, contact Mr. Dana V. O'Hara, Office of Energy Efficiency and
Renewable Energy (EE-2G), U.S. Department of Energy, 1000 Independence
Avenue SW., Washington, DC 20585-0121; Telephone: (202) 586-9171;
Email: [email protected]; or Mr. Ari Altman, Office of the
General Counsel, U.S. Department of Energy, 1000 Independence Avenue
SW., Washington, DC 20585-0121; Telephone: (202) 287-6307; Email:
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
A. General
B. Current Status of Alternative Fuel Transportation Program
C. Statutory Authority for Proposals Included in This NOPR
1. EISA
2. Additional Proposed Revisions
III. Key Definitions
A. Existing Definitions
1. Alternative Fuel
2. Alternative Fueled Vehicle
3. Automobile
4. Dedicated Vehicle
5. Dual Fueled Vehicle
6. Electric Motor Vehicle and Electric-Hybrid Vehicle
7. Section 133--Identified Vehicles That Already Qualify as AFVs
B. New Definitions: EISA Section 133 Vehicles and Actions
1. Fuel Cell Electric Vehicle
2. Hybrid Electric Vehicle
3. Medium- or Heavy-Duty Electric Vehicle
4. Neighborhood Electric Vehicle
5. Plug-In Electric Drive Vehicle
6. Alternative Fuel Infrastructure
7. Alternative Fuel Nonroad Equipment
8. Emerging Technology
IV. Proposed Allocation of Credit
A. General Basis for Allocations
B. Electric Drive Vehicles
1. Hybrid Electric Vehicles (HEVs)
2. Plug-In Electric Drive Vehicles
3. Fuel Cell Electric Vehicles (FCEVs)
4. Neighborhood Electric Vehicles (NEVs)
5. Medium- or Heavy-Duty Electric Vehicles
a. General
b. Hybrid Electric and Plug-In Hybrid Electric Vehicles
C. Investments
1. Alternative Fuel Infrastructure
2. Alternative Fuel Nonroad Equipment
3. Emerging Technology
V. Proposed Modifications to the Existing AFTP
A. Timeliness of Exemption Request Submittals
B. Program Credits and Exemption Requests
C. Alternative Compliance
D. Other Regulatory Revisions
E. Other Issues
VI. Proposed Compliance
A. Credit Values
B. Reporting
VII. Opportunity for Public Comment
A. Participation in Rulemaking
B. Written Comment Procedures
VIII. Regulatory Review
A. Review Under Executive Order 12866
B. Review Under the Regulatory Flexibility Act
C. Review Under the Paperwork Reduction Act of 1995
D. Review Under the National Environmental Policy Act
E. Review Under Executive Order 12988
F. Review Under Executive Order 13132
G. Review Under the Unfunded Mandates Reform Act of 1995
H. Review Under the Treasury and General Government
Appropriations Act, 1999
I. Review Under the Treasury and General Government
Appropriations Act, 2001
J. Review Under Executive Order 13211
I. Introduction
Titles III through V of the Energy Policy Act of 1992 (EPAct 1992,
Pub. L. 102-486, as amended at 42 U.S.C. 13201 et seq.) focus on the
replacement of petroleum transportation fuels with fuels such as
alternative fuels and conventional/replacement fuel blends. The
provisions in EPAct 1992 encourage the purchase and use of replacement
fuels, requiring that certain fleets acquire alternative fueled
vehicles (AFVs) as part of their annual light duty vehicle (LDV)
acquisitions. Section 301(3) of EPAct 1992 (42 U.S.C. 13211(3)) defines
the term ``alternative fueled vehicle'' as a ``dedicated [alternative
fuel] or dual fueled vehicle,'' and sections 501 (42 U.S.C. 13251) and
507 (42 U.S.C. 13257) of the statute contain AFV-acquisition mandates
for alternative fuel provider fleets and State fleets, respectively.
These fleets may earn credits towards their light duty AFV-acquisition
requirements in various ways, as provided by section 508 of EPAct 1992
(42 U.S.C. 13258) and the Program regulations at 10 CFR part 490.
[[Page 67289]]
Congress has amended the EPAct 1992 fleet program for State and
alternative fuel provider (SFP) fleets several times. The amendments
have allowed covered fleets to earn additional credits for the use of
biodiesel in blends of 20 percent biodiesel or greater and have
provided an alternative compliance option. Note that upon the creation
of the ``Alternative Compliance'' option (see discussion in Part II.A),
the original program based upon AFV acquisitions and biodiesel use
became known as ``Standard Compliance.'' Each amendment has allowed the
fleets to explore the viability of expanded use of AFVs and alternative
fuels and thereby promote the use of replacement fuels.
For the purposes of EPAct 1992 and related programs, the terms
``alternative fuel'' and ``replacement fuel'' both are widely used, but
are not interchangeable. While a more specific definition of
``alternative fuel'' is set forth below, in general, alternative fuels
include a variety of non-petroleum transportation fuels, as provided in
section 301(2) of EPAct 1992. Replacement fuel, as defined in section
301(14), refers to the alternative fuel portion of an alternative/
petroleum fuel mix or a neat (i.e., 100%) alternative fuel. For
example, B20 (a 20 percent blend of biodiesel with 80 percent petroleum
diesel) is not an alternative fuel, but the 20 percent that is non-
petroleum is considered replacement fuel, while B100 (neat biodiesel)
is both an alternative fuel and a replacement fuel.
The primary focus of today's proposal is section 133 of EISA, which
amended section 508 of EPAct 1992. EISA section 133 provides
definitions and directs DOE to allocate credits under section 508 for
the acquisition by covered fleets of various types of electric drive
vehicles, and for investments by covered fleets in qualified
alternative fuel infrastructure, nonroad equipment, and emerging
technologies related to those electric drive vehicles. As discussed in
more detail below, some of the electric drive vehicles identified in
section 133 already meet the EPAct 1992 definition of an AFV and
therefore already are entitled to full credit under the AFTP, while
others do not currently meet the AFV definition. In today's action, DOE
is proposing credit allocations under the AFTP for the acquisition by
covered fleets of those section 133-identified electric drive vehicles
that do not already qualify as AFVs, and for several specific types of
investments that covered fleets may make. These credit allocations
would only impact SFP fleets operating under Standard Compliance.
DOE also is proposing today to modify several aspects of the
existing AFTP. These modifications would: Enhance the timeliness of
exemption requests; require covered fleets to use their own banked
credits before requesting exemptions; mandate that fleets without
sufficient AFV acquisitions, biodiesel fuel use credits, and banked
credits to meet their compliance requirements include in their annual
reports information about any efforts they made to acquire credits from
other fleets; and revise the deadline for submitting Alternative
Compliance waiver applications. Finally, DOE also is proposing a number
of clarifications as well as several revisions that would make the AFTP
regulations consistent with amendments to EPAct 1992.
II. Background
A. General
The overall objectives of the fleet programs and other efforts
under Titles III-V of EPAct 1992 are to expand the use of alternative
fuels and AFVs within specified fleets and to replace petroleum with
replacement fuels to the ``maximum extent practicable.'' \1\ The
requirements of Titles III through V of EPAct 1992 focus on particular
fleets, such as SFP fleets (which are the subjects of today's proposal)
and Federal fleets,\2\ as well as voluntary activities, such as those
implemented under DOE's Clean Cities Program.\3\ The mandated programs
for centrally-fueled fleets seek to catalyze maximum use of replacement
fuels, and, in particular, alternative fuels.
---------------------------------------------------------------------------
\1\ 42 U.S.C. 13252(a).
\2\ Under section 303 of EPAct 1992 (42 U.S.C. 13212), Federal
fleets were required to acquire AFVs starting in Fiscal Year (FY)
1993, increasing their acquisitions to 75 percent of all covered
acquisitions in FY 1999 and thereafter.
\3\ Under section 505 of EPAct 1992 (42 U.S.C. 13255), DOE
obtains voluntary commitments from fuel suppliers to make
replacement fuels available, from fleets to acquire AFVs and use
alternative fuels, and from vehicle manufacturers to make AFVs and
related services available to the public. These commitments comprise
the Clean Cities Program, which works to bring together all
necessary parties in given geographic areas to further the use of
alternative fuels.
---------------------------------------------------------------------------
As indicated above, EPAct 1992 establishes AFV-acquisition
requirements for SFP fleets, which DOE codified as the AFTP at 10 CFR
490.1 et seq.\4\ Titles III, IV, and V of EPAct 1992 do not provide
broad incentives for petroleum reduction or requirements for overall
emissions reductions, but rather focus on requirements for certain
centrally-fueled fleets to acquire AFVs.
---------------------------------------------------------------------------
\4\ DOE promulgated the AFTP regulations on March 14, 1996. 61
FR 10622.
---------------------------------------------------------------------------
EPAct 1992 requires that SFP fleets acquire AFVs as minimum
percentages of their annual LDV acquisitions (now 90 percent for
alternative fuel provider fleets and 75 percent for State fleets, in
Sections 501(a) and 507(o), respectively). The types of vehicles that
satisfy the SFP fleet acquisition mandates are determined primarily by
the definitions of ``alternative fuel'' and ``alternative fueled
vehicle'' in section 301 of the statute. The threshold that determines
whether an SFP fleet is subject to these respective acquisition
mandates turns on the size and location criteria set forth in the
section 301 definitions of ``fleet'' and ``covered person.'' Generally,
covered fleets under the AFTP are those State government entities and
alternative fuel providers that own, operate, lease, or otherwise
control 50 or more non-excluded LDVs, at least 20 of which are capable
of being centrally fueled and are used primarily in a metropolitan
statistical area (MSA) or consolidated MSA with a 1980 Census
population of more than 250,000.
Consistent with sections 501(a)(5) and 507(i)(1) of EPAct 1992, the
AFTP regulations at 10 CFR 490.204 and 490.308 provide a process
through which State fleets and alternative fuel provider fleets,
respectively, may request exemptions from the applicable AFV-
acquisition requirements for a particular model year. All covered
fleets may seek an exemption on the basis of lack of available AFVs or
lack of available alternative fuels; State fleets also may seek an
exemption on the basis of unreasonable financial hardship.
Under section 507(o)(2) of EPAct 1992 and its implementing
regulation, 10 CFR 490.203, States may submit a Light Duty Alternative
Fueled Vehicle Plan to DOE for approval, which serves as an additional
compliance option. An approved plan relieves those State fleets that
are included in the plan from otherwise having to meet the AFV-
acquisition mandate on their own. While the plan must provide for
voluntary acquisitions or conversions by State, local, and private
fleet participants that, in the aggregate, equal or exceed the State's
AFV-acquisition requirement, there is no limit to the number of State,
local, and private fleets that may participate in the plan. Any such
plan must include, among other information, a certification from the
appropriate State official and a written statement of commitment from
each plan participant.
Under the AFTP, covered fleets can earn, sell, or purchase AFV-
acquisition
[[Page 67290]]
credits. Section 508 of EPAct 1992 enables fleets to earn bankable and
tradable credits by acquiring AFVs prior to or in excess of
requirements. DOE's implementing regulations for the credit program
appear at subpart F of 10 CFR part 490.
In practice, SFP fleets typically generate surplus credits in one
of two ways--either by acquiring in a particular model year more of
their covered LDVs as AFVs (such as acquiring 100 percent as AFVs
instead of the required 75 or 90 percent), or by acquiring AFVs in
``excluded vehicle'' classes (such as employee take-home vehicles or
law enforcement vehicles).\5\ As indicated, they are also able to
generate credits by acquiring AFVs earlier than required.\6\ Fleets may
use the surplus credits generated in these ways in future model years
to cover shortfalls (banking), or they may sell or trade the credits to
other covered fleets.\7\ For a fleet that has not met its AFV-
acquisition requirement in a particular model year, purchasing or
trading for credits is a viable means by which to attain AFTP
compliance inasmuch as the fleet can obtain the necessary number of
credits and thereby compensate for its failure to acquire the requisite
number of AFVs.
---------------------------------------------------------------------------
\5\ See 10 CFR 490.3.
\6\ 10 CFR 490.502(b).
\7\ See 10 CFR 490.504 and 10 CFR 490.506, respectively.
---------------------------------------------------------------------------
The Energy Conservation Reauthorization Act of 1998 (Pub. L. 105-
388) included an amendment to the EPAct 1992 Title V fleet AFV-
acquisition requirement, allowing SFP fleets to use biodiesel blends
(of at least 20 percent biodiesel, B20) as a partial alternative means
of complying with their AFV-acquisition requirements (limited to
meeting 50 percent of requirements, except for biodiesel fuel
providers). In the Energy Policy Act of 2005 (EPAct 2005, Pub. L. 109-
58), Congress again amended the Title V fleet program to provide an
optional compliance path for covered fleets called ``Alternative
Compliance.'' Under this option, an SFP fleet may apply for an
Alternative Compliance waiver that, if granted by DOE, enables the
fleet to implement various means of achieving petroleum reductions,
including but not limited to the use of alternative fuels, the use of
biodiesel blends without either the B20 threshold or the 50 percent cap
that apply under Standard Compliance, fuel economy improvements, the
purchase of hybrid and other advanced technology (higher efficiency)
vehicles, idle time reductions, and a reduction in vehicle miles
traveled, in lieu of complying solely through AFV acquisitions and/or
biodiesel use (under Standard Compliance). The addition of this
Alternative Compliance option provided additional flexibility to fleets
exploring the use of alternative fuels, as well as certain fuel
efficiency technologies (e.g., hybrid vehicles, idle reduction) and
trip reduction approaches. In fact, the Alternative Compliance option
already allows fleets to explore many of the technologies that are the
subject of today's proposed rule.
Today's proposal would implement EISA section 133, allocating to
covered fleets operating under Standard Compliance credits under
section 508 for the acquisition of various types of electric drive
vehicles, and for investments in qualified alternative fuel
infrastructure, nonroad equipment, and emerging technologies related to
specific vehicle types. In developing this NOPR, DOE has been guided by
the fact that EISA section 133 specifically amends section 508 of EPAct
1992 and requires DOE to revise the manner in which credits may be
earned by covered fleets for purposes of achieving SFP fleet
compliance. For this reason, DOE is proposing that credits be allocated
to those electric drive vehicles identified in section 133 that do not
already qualify as AFVs based upon a yardstick of petroleum
displacement, rather than simply treating the vehicles as equivalent to
AFVs. The section 133-identified vehicles that already qualify as AFVs
are already entitled to full credit under the AFTP.
B. Current Status of Alternative Fuel Transportation Program
Since Model Year (MY) 2000, the AFTP has been highly successful.
Through MY 2009, covered SFP fleets acquired nearly 160,000 AFVs.
Annually, these fleets typically are acquiring between 10,000 and
14,000 AFVs.
SFP fleets unable to acquire AFVs or without alternative fuel
available for AFVs may file for exemptions from the AFV-acquisition
requirements, in accordance with the provisions of EPAct 1992 sections
501(a)(5) and 507(i). Since MY 2000, DOE has received nearly 350
exemption requests, granting exemptions and thereby relieving the
requesting fleets from having to acquire more than 9,600 AFVs.
Covered fleets have used and continue to use the credit program
regularly. In the early stages of the AFTP, the primary users of
credits were the fleets generating and banking them to provide
additional compliance flexibility in future years. Since MY 1997,
covered SFP fleets have applied more than 27,000 credits to meet AFV-
acquisition requirements. Subsequently, while applying banked credits
has remained a significant use of surplus credits, a number of fleets
have been selling their credits, with approximately 1,000-1,500 credits
now being exchanged each year, and more than 9,500 credits having been
exchanged since MY 1999. Overall, covered fleets currently hold over
61,500 banked credits, enough credits for perhaps four or more years of
operation of the entire AFTP.
C. Statutory Authority for Proposals Included in This NOPR
1. EISA
EISA section 133 amended section 508 of EPAct 1992 by providing
definitions of specific electric drive vehicles. These electric drive
vehicles include ``fuel cell electric vehicles,'' ``hybrid electric
vehicles,'' ``medium- or heavy-duty electric vehicles,'' ``neighborhood
electric vehicles,'' and ``plug-in electric drive vehicles.'' (42
U.S.C. 13258(a)) EISA section 133(3) further amended section 508 by
directing DOE to allocate credit ``in an amount to be determined by
[DOE]'' for the acquisition of these electric drive vehicles, as well
as for ``investment in qualified alternative fuel infrastructure or
nonroad equipment, as determined by [DOE].'' (42 U.S.C. 13258(b)(2)(A))
DOE is also directed to ``allocate more than 1, but not to exceed 5,
credits for investment in an emerging technology relating to any'' of
the enumerated electric drive vehicles ``to encourage'' petroleum and
vehicle emissions reductions and technological advancement. (42 U.S.C.
13258(b)(2)(B))
Considered broadly, section 133 requires that DOE allocate some
level of credit for additional vehicle types and various investments,
further expanding the list of options that covered fleets may use in
their efforts to comply with EPAct 1992's AFV-acquisition requirements.
Importantly, section 133 does not define, nor require DOE to define,
the specified vehicle types as AFVs--it merely calls for DOE to
allocate some level of credit to these vehicle types.
DOE reiterates that EISA section 133 revised section 508 of EPAct
1992, which pertains to SFP fleets. Today's proposed rule therefore
addresses SFP fleets only, and not Federal fleets.
The allocations that DOE is proposing today are intended to ensure
consistency with the overall approach of the relevant provisions of
EPAct 1992, which focus on the replacement of
[[Page 67291]]
petroleum fuels through the use of replacement fuels to the maximum
extent practicable.
It is critical to consider the AFTP's existing definitions in order
to understand the proposed allocations. As discussed throughout this
NOPR, if a given vehicle type already qualifies as an AFV, it is
already eligible for full credit under the existing AFTP. If the
vehicle is not an AFV, the focus shifts to whether the specific vehicle
type is among the electric drive vehicles set forth in EISA section 133
and for which Congress directed DOE to determine a specific credit
level. Similarly, only those investments that fit within the
definitions provided in this NOPR would receive credit under the AFTP.
In addition to section 133, section 103(a) of EISA made changes to
the Energy Policy and Conservation Act's (EPCA, codified at 49 U.S.C.
32901-32919) definitions of the terms ``automobile'' and ``dual fueled
automobile.'' These definitions are included or referenced in subpart A
of the AFTP regulations.\8\ As part of the amended statutory definition
of ``automobile,'' EISA section 103(a) introduced and defined a new
term, ``work truck.'' DOE is proposing today to adopt in subpart A
these definitions of ``automobile'' and ``work truck,'' to revise
several of the existing regulatory definitions and provisions, and to
delete those that DOE believes are no longer needed.
---------------------------------------------------------------------------
\8\ See 10 CFR 490.2.
---------------------------------------------------------------------------
2. Additional Proposed Revisions
As indicated above, DOE also is proposing today various
modifications to the existing AFTP that are unrelated to EISA. These
proposed modifications, discussed more fully in Part V below, include:
Establishing a timeframe for the submission of exemption requests;
requiring covered fleets to use their own banked credits before
requesting exemptions; mandating that fleets without sufficient AFV
acquisitions, biodiesel fuel use credits, or banked credits to meet
their compliance requirements include in their annual reports
information about any efforts they have made to acquire credits from
other fleets; and creating a single due date for the submission of
Alternative Compliance waiver applications. Like the existing
regulations in 10 CFR part 490, the statutory basis for these proposed
modifications lies in Titles III-V of EPAct 1992, as amended.
In section 707 of EPAct 2005, Congress amended section 301(9)(E) of
EPAct 1992 to make clear that the ``emergency motor vehicles''
exclusion from the term ``fleet'' includes ``vehicles directly used in
the emergency repair of transmission lines and in the restoration of
electricity service following power outages, as determined by the
Secretary.'' \9\ DOE is proposing today to revise the regulatory
exclusion at 10 CFR 490.3(e) so that it is consistent with this
legislative amendment. DOE is also proposing to incorporate in the
regulatory definition of ``alternative fuel'' language pertaining to
liquid fuels domestically produced from natural gas, which Congress
added to the section 301 definition in 2000.\10\ Both of these proposed
changes would merely implement the particular statutory language
modifications that Congress made, and thus DOE considers these proposed
changes to be non-controversial.
---------------------------------------------------------------------------
\9\ See Pub. L. 109-58, section 707.
\10\ See Pub. L. 106-554 App. D, Div. B, Title I, section 122,
as codified at 42 U.S.C. 13211(2).
---------------------------------------------------------------------------
III. Key Definitions
This section of the NOPR discusses the AFTP definitions, both
existing and newly proposed, that are key to DOE's proposed approach to
the allocation of credits under EISA section 133, as well as the
existing definitions that DOE is proposing today to amend. The
rulemaking process associated with today's NOPR is intended to codify
the definitions set forth in EISA section 133 for purposes of the
AFTP's credit program (Subpart F). As developed pursuant to EPAct 1992,
as amended, compliance under the AFTP is determined primarily through
the acquisition of AFVs.
A. Existing Definitions
1. Alternative Fuel
The definition of ``alternative fuel'' for purposes of EPAct 1992
and its fleet programs is provided in section 301(2) of EPAct 1992,
\11\ and includes:
---------------------------------------------------------------------------
\11\ 42 U.S.C. 13211(2).
---------------------------------------------------------------------------
Methanol, denatured ethanol, and other alcohols;
Mixtures containing 85 percent or more by volume of
methanol, denatured ethanol, and other alcohols with gasoline or other
fuels (or such other percentage, but not less than 70 percent, as
determined by the Secretary, by rule);
Natural gas, including liquid fuels domestically produced
from natural gas;
Liquefied petroleum gas;
Hydrogen;
Coal-derived liquid fuels;
Fuels (other than alcohol) derived from biological
materials;
Electricity (including electricity from solar energy);
and,
Any other fuel the Secretary determines, by rule, is
substantially not petroleum and would yield substantial energy security
benefits and substantial environmental benefits.
The corresponding AFTP definition of ``alternative fuel'' appears
at 10 CFR 490.2. The explicit inclusion of electricity as an
alternative fuel is particularly relevant to today's proposal.
As indicated above, DOE is proposing to add to the AFTP definition
the phrase ``including liquid fuels domestically produced from natural
gas,'' which Congress added to the statutory definition in 2000.
2. Alternative Fueled Vehicle
As provided in section 301(3) of EPAct 1992, an alternative fueled
vehicle ``means a dedicated vehicle or a dual fueled vehicle.'' Thus,
vehicles acceptable for the AFTP (i.e., vehicles that receive full
credit under the AFTP) must either be ``dedicated vehicles,'' which are
vehicles that operate solely on alternative fuel, or ``dual fueled
vehicles,'' which have some capability for switching back and forth
from alternative fuel to conventional fuel (such as a bi-fuel natural
gas/gasoline vehicle) or otherwise can operate on a blend of
alternative and conventional fuels (such as flexible fuel vehicles).
Importantly, Congress has not added to or otherwise modified the
definition of an AFV as it applies to SFP fleets since its enactment in
1992.\12\
---------------------------------------------------------------------------
\12\ Congress did, however, previously amend the definition of
AFV in the context of Federal fleets, at section 2862 of the
National Defense Authorization Act for Fiscal Year 2008 (Pub. L.
110-181). See 147 153 Cong. Rec. S12355 (Oct. 1, 2007) (the
``purpose'' of section 2862 is ``[t]o allow additional types of
vehicles to be used to meet minimum Federal fleet requirements'').
The amended definition does not apply to the AFTP and SFP fleets
regulated under it.
---------------------------------------------------------------------------
The corresponding AFTP definition of an AFV appears at 10 CFR
490.2. When DOE promulgated this regulatory definition in 1996, it
included language clarifying that flexible fuel vehicles (FFVs) are
encompassed within the definition, and also provided a separate
definition of the term ``flexible fuel vehicle.'' DOE explained that it
took the latter definition from the Clean Fuel Fleet Program
regulations that the U.S. Environmental Protection Agency (EPA) issued
under the Clean Air Act.\13\ The National Highway Traffic Safety
Administration (NHTSA), the Federal agency responsible for setting and
enforcing the Corporate Average Fuel Economy (CAFE) standards under
EPCA, did not and still does not have a regulatory definition of
``flexible fuel vehicle.'' DOE has determined that the
[[Page 67292]]
reference to FFVs in the AFTP definition of ``alternative fueled
vehicle'' and the separate definition of ``flexible fuel vehicle'' are
unnecessary, principally because FFVs qualify as ``dual fueled
automobiles'' under the EPCA definition of that term (codified at 49
U.S.C. 32901(a)(9)). As recently as September 2010, NHTSA confirmed
that FFVs ``are considered `dual fueled [automobiles]' under [the]
EPCA'' meaning of that term.\14\ Because they are dual fueled
automobiles, FFVs are also AFVs. Hence, DOE proposes to streamline the
AFTP definition of ``alternative fueled vehicle'' by deleting the
parenthetical reference to FFVs. For the same reason, DOE also proposes
to delete the definition of ``flexible fuel vehicle,'' as well as
subsection (3) in the AFTP definition of ``dual fueled vehicle.''
---------------------------------------------------------------------------
\13\ 61 FR 10630-31.
\14\ 75 FR 58078, 58111 (Sept. 23, 2010); See also 75 FR 25324,
25665 (May 7, 2010); 76 FR 39478, 39499 (July 6, 2011).
---------------------------------------------------------------------------
3. Automobile
Because the AFTP definitions of ``dedicated vehicle'' and ``dual
fueled vehicle,'' each of which is discussed in more detail below,
incorporate by reference the term ``automobile,'' DOE saw fit in its
1996 final rule to include in 10 CFR 490.2 a definition of
``automobile.'' DOE noted that the AFTP definition was ``adapted from
and * * * intended to have the same meaning as `automobile' defined
in'' 49 U.S.C. 32901(a)(3).\15\
---------------------------------------------------------------------------
\15\ 61 FR 10622, 10630.
---------------------------------------------------------------------------
EISA section 103(a) redefined the term ``automobile'' to include
four-wheeled on-road vehicles rated at less than 10,000 pounds gross
vehicle weight. To maintain consistency with the revised EPCA
definition, DOE is proposing to make similar amendments to the AFTP
definition of ``automobile.'' DOE stresses, though, that while the
proposed definition in 10 CFR 490.2 would contain an express gross
vehicle weight rating cutoff of less than 10,000 pounds, this revision
would have no substantive effect on the AFTP. In other words, the AFTP
would continue to be a light duty motor vehicle program, with a covered
fleet's light duty AFV-acquisition requirement in a particular model
year hinging on the total number of light duty motor vehicles the fleet
acquired during that model year. The regulatory definition of ``light
duty motor vehicle'' would be unchanged, i.e., an LDV would continue to
be a light duty truck or light duty vehicle with a gross vehicle weight
rating of 8,500 pounds or less, in accordance with Section 301(11) of
EPAct 1992 (42 U.S.C. Sec. 13211(11)).
Because EISA added a reference to ``work truck'' in the definition
of ``automobile,'' the proposed AFTP definition of ``automobile'' will
also include a reference to the term ``work truck.'' DOE is therefore
also proposing to add a new definition of this term in the regulations,
consistent with the EISA section 103(a) definition of ``work truck'' as
a vehicle between 8,500 and 10,000 pounds gross vehicle weight that is
not a medium-duty passenger vehicle. The addition of this definition
would not represent a shift from the LDV focus of the AFTP.
4. Dedicated Vehicle
The AFTP regulations at 10 CFR 490.2 currently define the term
``dedicated vehicle'' to mean:
(1) An automobile that operates solely on alternative fuel; or
(2) A motor vehicle, other than an automobile, that operates solely
on alternative fuel.\16\
---------------------------------------------------------------------------
\16\ In addition to ``automobile,'' as discussed in the text
above, section 490.2 of the Program regulations also provides a
definition of the term ``motor vehicle.'' See 10 CFR 490.2.
---------------------------------------------------------------------------
For example, a pure (e.g., battery) electric vehicle (EV) is
considered a dedicated vehicle and hence an AFV, as defined above,
because electricity, the only fuel on which the vehicle operates, is
within the definition of alternative fuel. A hybrid electric vehicle
(HEV) that has an engine that operates solely on alternative fuel
(e.g., compressed natural gas (CNG)) also would be considered a
dedicated vehicle under the AFTP, and thus an AFV. DOE anticipates that
such a vehicle may enter the marketplace in the not too distant future.
DOE is proposing to make one minor change to the existing
definition of ``dedicated vehicle.'' DOE believes it is appropriate to
address the future possibility that certain vehicles may operate
exclusively on more than one alternative fuel. DOE proposes to do this
by amending the definition so that it states ``operates solely on one
or more alternative fuels.'' DOE believes this revision is non-
controversial.
5. Dual Fueled Vehicle
The AFTP regulations at 10 CFR 490.2 currently define the term
``dual fueled vehicle'' to mean:
(1) An automobile that meets the criteria for a dual fueled
automobile, as that term is defined in section 513(h)(1)(C) of the
Motor Vehicle Information and Cost Savings Act, 49 U.S.C. 32901(a)(8);
or
(2) A motor vehicle, other than an automobile, that is capable of
operating on alternative fuel and on gasoline or diesel; or
(3) A flexible fuel vehicle.
As discussed in Part III.A.2 above, DOE is proposing to delete
subsection (3) on the grounds that it is no longer necessary.
In promulgating the dual fueled vehicle definition in 1996, DOE
neglected to point out that Congress had revised and recodified the
Motor Vehicle Information and Cost Savings Act (MVICSA) ``without
substantive change'' on July 5, 1994.\17\ Nevertheless, DOE did cite to
the correct U.S.C. provision containing the definition of ``dual fueled
automobile,'' 49 U.S.C. 32901(a)(8). As a result of a change set forth
in EISA section 103(a), this statutory definition now appears in 49
U.S.C. 32901(a)(9).
---------------------------------------------------------------------------
\17\ See Pub. L. 103-272, Sec. Sec. 1(a), 6(a).
---------------------------------------------------------------------------
DOE is proposing to amend the AFTP definition of dual fueled
vehicle in accordance with the above. The amended definition would read
as follows:
(1) An automobile that meets the criteria for a dual fueled
automobile as set forth in 49 U.S.C. 32901(a)(9), or
(2) A motor vehicle, other than an automobile, that is capable of
operating on alternative fuel and on gasoline or diesel.
DOE also takes this opportunity to note that it has always
interpreted the definition of dual fueled vehicle in the context of
NHTSA's minimum driving range criteria for dual fueled automobiles.
Under those criteria, for a passenger automobile to be considered a
dual fueled automobile, it must be able to drive at least 200 miles
when operating on the alternative fuel; for a dual fueled electric
passenger automobile, the automobile must be able to operate on a full
EPA urban test cycle and a full EPA highway test cycle on electricity
alone, which means it must meet all speed and acceleration requirements
over a total of 17.7 miles.\18\ Only motor vehicles that meet these
minimum driving range criteria qualify as dual fueled vehicles and
hence are considered AFVs under the current AFTP definition.
---------------------------------------------------------------------------
\18\ 49 CFR 538.5 and 538.6. The test cycles consist of 7.5
miles of urban driving and 10.2 miles of highway driving, with
charging allowed prior to each test.
---------------------------------------------------------------------------
Although it has not been problematic to date, the dual fueled
vehicle determination may become more complicated as plug-in hybrid
electric vehicles (PHEV) are commercialized (see Part IV.B.2 below).
Except in those
[[Page 67293]]
instances in which it is clear to DOE that a vehicle is equipped with
an engine that can operate on both petroleum and liquid or gaseous
alternative fuel, DOE would look to NHTSA, meaning that if NHTSA
considers a particular automobile or motor vehicle to be dual fueled
under EPCA (i.e., for CAFE purposes), then DOE would treat the vehicle
as a dual fueled vehicle and hence an AFV under the AFTP.
6. Electric Motor Vehicle and Electric-Hybrid Vehicle
In its 1996 final rule, DOE adopted in 10 CFR 490.2 the definitions
of the terms ``electric motor vehicle'' and ``electric-hybrid vehicle''
located in section 601 of EPAct 1992 (42 U.S.C. 13271). This was
necessitated by the fact that section 501(c) of EPAct 1992, which
directed DOE to establish an option for electric utilities, referred
specifically to ``electric motor vehicles.'' The electric utility
option is contained in 10 CFR 490.307.
Because the electric utility option was time limited and the period
for the option has long since passed, DOE is proposing to delete
section 490.307 from the AFTP regulations and renumber the remaining
provisions in Subpart D. Correspondingly, DOE is proposing to remove
the ``electric motor vehicle'' and ``electric-hybrid vehicle''
definitions because they would be extraneous in the absence of the
electric utility option. DOE, which believes these amendments would not
have a major impact, solicits comments on them.
7. Section 133--Identified Vehicles That Already Qualify as AFVs
Of the electric drive vehicle types identified in EISA section 133,
several already qualify as AFVs and, for that reason, already are
entitled to one full credit under the AFTP. As discussed below, these
include certain HEVs, PHEVs, and fuel cell electric vehicles (FCEVs),
light duty battery electric vehicles, and medium- or heavy-duty battery
electric vehicles. For such vehicles, there is no need for DOE to
address the allocation of credit in this NOPR--if and when acquired by
covered fleets, these vehicles already are entitled to one AFV-
acquisition credit because the vehicles already qualify as AFVs
(although in the case of medium- or heavy-duty vehicles, the covered
fleet first must meet its light duty AFV-acquisition requirement).
An HEV or PHEV whose engine is capable of operating on alternative
fuel (such as E85) is either a dual fueled vehicle (if the engine can
operate on alternative fuel and on gasoline or diesel) or a dedicated
vehicle (if the engine operates solely on alternative fuel), and,
consequently, already an AFV. To date, though, DOE is aware of only a
small number of flexible fuel HEVs (e.g., Ford Escapes) that have been
built for demonstration purposes. Likewise, a PHEV with a conventional
gasoline engine would be a dual fueled vehicle and therefore already an
AFV under the AFTP if it were to qualify as a dual fueled electric
automobile under the applicable NHTSA criteria. DOE notes, though, that
not all PHEVs are expected to meet the minimum driving range criteria
for dual fueled automobiles under 49 U.S.C. 32901(a)(9).\19\
---------------------------------------------------------------------------
\19\ See 75 FR 58078, 58104 (Sept. 23, 2010); 76 FR 39478,
39480, 39502-04 (July 6, 2011).
---------------------------------------------------------------------------
With respect to the HEVs currently on the market, DOE takes this
opportunity to reiterate that it provides no credit under Standard
Compliance because none of these vehicles qualify as AFVs. Equipped
with gasoline-only engines, HEVs available to date ``obtain their
electric power from their onboard conventional gasoline engine and
energy captured through regenerative braking.'' \20\ Because they
cannot operate without gasoline, these vehicles are not dedicated
vehicles. Nor do they qualify as dual fueled vehicles, either as that
term is presently defined or as it would be redefined under this NOPR.
Contrary to what is required by the word ``fueled,'' the electricity
that can propel the vehicle at low speeds for short distances does not
emanate from an off-board source (e.g., the electric grid).
---------------------------------------------------------------------------
\20\ Id. at 58087 n.45.
---------------------------------------------------------------------------
Figure 1 below depicts the HEVs and PHEVs that already qualify as
AFVs and those HEVs and PHEVs for which credit would be allocated under
this NOPR.
[[Page 67294]]
[GRAPHIC] [TIFF OMITTED] TP31OC11.004
FCEVs, as discussed more fully in Parts III.B.1 and IV.B.3 below,
use a ``fuel cell,'' which typically is fueled by hydrogen, an
alternative fuel, but which can also be fueled by a petroleum fuel
(e.g., gasoline or diesel). An FCEV that operates on alternative fuel
is either a dedicated vehicle (if the FCEV's fuel cell is fueled solely
by alternative fuel) or a dual fueled vehicle (if the FCEV's fuel cell
can be fueled by alternative fuel and by gasoline or diesel fuel) and,
consequently, already an AFV eligible for one credit under the AFTP.
FCEVs that are not AFVs would be allocated credit under today's NOPR.
Battery electric vehicles are already considered AFVs under section
301 of EPAct 1992 by virtue of electricity's inclusion within the
definition of alternative fuel. Hence, when acquired by covered fleets,
they, too, are already eligible for full AFV-acquisition credit under
the AFTP. Finally, medium- or heavy-duty battery electric vehicles
already are entitled to one credit under the creditable action
provisions of 10 CFR 490.502 because they, too, already qualify as
AFVs.
In sum, the following qualify as AFVs: (1) HEVs and PHEVs with an
engine that operates solely on alternative fuel or one that can operate
on alternative fuel and on gasoline or diesel; (2) PHEVs that meet the
NHTSA minimum driving range criteria and thus qualify as dual fueled
electric automobiles; (3) FCEVs that operate solely on alternative fuel
or on alternative fuel and on gasoline or diesel; (4) light duty
battery electric vehicles; and (5) medium- or heavy-duty battery
electric vehicles. As a result, these vehicles already are entitled to
one credit under the AFTP, although in the case of medium- or heavy-
duty AFVs, they are not entitled to credit until the fleet has met it
light duty AFV-acquisition requirement.
B. New Definitions: EISA Section 133 Vehicles and Actions
DOE is proposing definitions of key terms for purposes of Subpart F
of the AFTP regulations, in accordance with the definitions within EISA
section 133, as described in the paragraphs that follow.
1. Fuel Cell Electric Vehicle
A ``fuel cell electric vehicle'' is defined for purposes of section
508 of EPAct 1992, as amended, as an ``on-road or non-road vehicle that
uses a fuel cell (as defined in section 803 of the Spark M. Matsunaga
Hydrogen Act of 2005 (42 U.S.C. 16152)).'' Section 803 of the Hydrogen
Act of 2005 defines ``fuel cell'' as a ``device that directly converts
the chemical energy of a fuel, which is supplied from an external
source, and an oxidant into electricity by electrochemical processes
occurring at separate electrodes in the device.'' Typically, FCEVs are
actually fuel cell hybrid vehicles that include some form of electric
storage medium (such as batteries) to allow for better matching of
vehicle generation capabilities to performance demand. Most FCEVs
currently under development are fueled by hydrogen, either in
compressed or liquefied form, but some that have been developed use
onboard reformers to allow fueling with other fuels (e.g., petroleum
fuels). DOE is proposing to adopt the definition of ``fuel cell
electric
[[Page 67295]]
vehicle'' in Subpart F of the AFTP regulations, but substituting the
defined term ``motor vehicle'' in place of the term ``on-road.'' \21\
---------------------------------------------------------------------------
\21\ DOE notes that this definition is not identical to the
definition of ``fuel cell vehicle'' that EPA promulgated as part of
its light duty vehicle greenhouse gas emission standards under the
Clean Air Act. See 75 FR 25324, 25684 (May 7, 2010). DOE, however,
is constrained by the statutory definition set forth in EISA section
133.
---------------------------------------------------------------------------
2. Hybrid Electric Vehicle
EISA defines a ``hybrid electric vehicle'' for purposes of section
508 of EPAct 1992, as amended, as a ``new qualified hybrid motor
vehicle (as defined in section 30B(d)(3) of the Internal Revenue Code
of 1986).'' Section 30B(d)(3) of the Internal Revenue Code (IRC) (26
U.S.C. Sec. 30B(d)(3)) defines ``new qualified hybrid motor vehicle''
and sets specific conditions for purposes of meeting this definition,
including that a motor vehicle be one that ``draws propulsion energy
from onboard sources of stored energy which are both an internal
combustion or heat engine using consumable fuel and a rechargeable
energy storage system'' and has a maximum available power of a set
minimum amount. In the case of a light duty vehicle, the vehicle also
must be one that ``has received a certificate of conformity under the
Clean Air Act and meets or exceeds the [applicable] equivalent
qualifying California low emission vehicle standard under section
243(e)(2) of the Clean Air Act'' as well as ``the [applicable] emission
standard [established by EPA] under section 202(i) of the Clean Air
Act,'' among other conditions.\22\ In the case of a vehicle with a
gross vehicle weight rating of more than 8,500 pounds, the vehicle also
must be one that ``has an internal combustion engine which has received
a certificate of conformity under the Clean Air Act as meeting the
emission standards set [by EPA for] diesel heavy duty engines or
ottocycle heavy duty engines,'' among other conditions.\23\
---------------------------------------------------------------------------
\22\ See generally Internal Revenue Service, Notice 2006-9--
Credit for New Qualified Alternative Motor Vehicles (Advanced Lean
Burn Technology Motor Vehicles and Qualified Hybrid Motor Vehicles),
available at http://www.irs.gov/irb/2006-06_IRB/ar11.html.
\23\ See generally Internal Revenue Service, Notice 2007-23--
Credit for New Qualified Heavy-Duty Hybrid Motor Vehicles, available
at http://www.irs.gov/irb/2007-23_IRB/ar08.html.
---------------------------------------------------------------------------
DOE is proposing today to adopt the EISA definition of ``hybrid
electric vehicle'' in Subpart F of the AFTP regulations.\24\
---------------------------------------------------------------------------
\24\ DOE notes that this definition is not identical to the HEV
definition that EPA promulgated as part of its light duty vehicle
greenhouse gas emission standards under the Clean Air Act. See 75 FR
25324, 25684 (May 7, 2010). DOE, however, is constrained by the
statutory definition set forth in EISA section 133.
---------------------------------------------------------------------------
3. Medium- or Heavy-Duty Electric Vehicle
EISA defines a ``medium- or heavy-duty electric vehicle'' for
purposes of section 508 of EPAct 1992, as amended, as ``an electric,
hybrid electric, or plug-in hybrid electric vehicle with a gross
vehicle weight of more than 8,501 pounds.'' For the purposes of
consistency with EPAct 1992 section 301(11), which defines a light duty
motor vehicle as 8,500 pounds or less, DOE proposes to modify EISA's
definition of medium- or heavy-duty electric vehicle to ``an electric,
hybrid electric, or plug-in hybrid electric vehicle with a gross
vehicle weight rating of more than 8,500 pounds.'' \25\
---------------------------------------------------------------------------
\25\ In EISA section 133, Congress provided a definition of
``hybrid electric vehicle'' (see Part III.B.2 above), but not of the
terms ``electric vehicle'' and ``plug-in hybrid electric vehicle,''
both of which appear in the definition of a ``medium- or heavy-duty
electric vehicle.'' With respect to ``plug-in hybrid electric
vehicle,'' DOE proposes that PHEVs may be considered a type of
``plug-in electric drive vehicle'' (see Part III.B. 5 below). As for
the term ``electric vehicle,'' DOE would interpret this term to mean
a vehicle that operates solely on electricity (i.e., a battery
electric vehicle).
---------------------------------------------------------------------------
4. Neighborhood Electric Vehicle
EISA defines a ``neighborhood electric vehicle'' for purposes of
section 508 of EPAct 1992, as amended, as ``a 4-wheeled on-road or
nonroad vehicle that--(A) has a top attainable speed in 1 mile of more
than 20 mph and not more than 25 mph on a paved level surface; and (B)
is propelled by an electric motor and [an] on-board, rechargeable
energy storage system that is rechargeable using an off-board source of
electricity.'' DOE is proposing today to adopt this statutory
definition.
5. Plug-In Electric Drive Vehicle
EISA defines a ``plug-in electric drive vehicle'' for purposes of
section 508 of EPAct 1992, as amended, as ``a vehicle that (A) draws
motive power from a battery with a capacity of at least 4 kilowatt-
hours; (B) can be recharged from an external source of electricity for
motive power; and (C) is a light-, medium-, or heavy duty motor vehicle
or nonroad vehicle (as those terms are defined in section 216 of the
Clean Air Act (42 U.S.C. 7550)).'' Section 216 of the Clean Air Act
defines the term ``motor vehicle'' to mean ``any self-propelled vehicle
designed for transporting persons or property on a street or highway,''
and it defines ``nonroad vehicle'' as a vehicle that is ``powered by a
nonroad engine and that is not a motor vehicle or a vehicle used solely
for competition.'' DOE is proposing today to adopt EISA's definition of
plug-in electric drive vehicle.
There are two primary forms of plug-in electric drive vehicles--
dedicated EVs (e.g., battery electric vehicles) and PHEVs, assuming
they have a minimum battery capacity of four kilowatt-hours.\26\ For
the purposes of this rulemaking, PHEVs are considered similar in many
cases to today's available HEVs, but PHEVs include greater electric
storage capacity (and thus more/larger batteries) than HEVs, possess
the capability to recharge their electric storage system by ``plugging
in'' to the grid, and often have some duration of electric-only
operation. DOE considers a PHEV to be a dual fueled vehicle if it is
able to complete the EPA urban and highway test cycles on electricity
alone.
---------------------------------------------------------------------------
\26\ DOE expects that all PHEVs will have a battery capacity of
at least four kilowatt-hours, because that is the minimum battery
capacity needed for a vehicle to qualify for the $7,500 Federal tax
credit for new qualified plug-in electric drive motor vehicles. See
26 U.S.C. 30D(d)(1)(F)(i).
---------------------------------------------------------------------------
6. Alternative Fuel Infrastructure
EISA section 133 provides no definition of the term ``alternative
fuel infrastructure,'' merely indicating that DOE should allocate
credits for ``investment in qualified alternative fuel infrastructure *
* * as determined by the Secretary.''
Section 179A(d) of the Internal Revenue Code (26 U.S.C. 179A(d))
defines a similar phrase, ``qualified clean-fuel vehicle refueling
property,'' to mean a property that is:
(A) For the storage or dispensing of a clean-burning fuel into
the fuel tank of a motor vehicle propelled by such fuel, but only if
the storage or dispensing of the fuel is at the point where such
fuel is delivered into the fuel tank of the motor vehicle, or
(B) for the recharging of motor vehicles propelled by
electricity, but only if the property is located at the point where
the motor vehicles are recharged.\27\
---------------------------------------------------------------------------
\27\ 26 U.S.C. 179A(d)(3).
DOE proposes to base the definition of the term ``alternative fuel
infrastructure'' on the Internal Revenue Code definition of ``qualified
clean-fuel vehicle refueling property,'' clarifying the language,
however, regarding the requirement that fueling take place where the
infrastructure is located.
In short, ``alternative fuel infrastructure'' would mean one or
more alterative fueling stations or one or more charging or battery
exchange stations for EISA section 133-specified electric drive
vehicles.
[[Page 67296]]
7. Alternative Fuel Nonroad Equipment
Similarly, EISA section 133 provides no definition of the term
``alternative fuel nonroad equipment.'' Congress simply instructed DOE
to allocate credits for ``investment in qualified alternative fuel * *
* nonroad equipment, as determined by the Secretary.'' Therefore, DOE
must determine the types of alternative fuel nonroad equipment that
would qualify for Program credit within the context of section 133's
overall objectives.
DOE proposes to consider as eligible for credit only alternative
fuel nonroad equipment that is mobile, such as mobile cargo and
material handling equipment (e.g., forklifts) and mobile farm or
construction equipment (e.g., tractors, bulldozers, backhoes, front-end
loaders, rollers/compactors). A fleet requesting credit would have to
certify that the equipment is being operated on alternative fuel,
within the constraints of best practices or seasonal fuel availability.
DOE requests comments on this point. Consistent with the Program's
focus on vehicle acquisitions, no stationary non-road equipment would
qualify for credit.
8. Emerging Technology
EISA section 133 likewise provides no definition of the term
``emerging technology,'' although, as discussed in more detail in Part
IV.C.3 of this NOPR, the statute explicitly requires that such
technology ``relat[e] to'' at least one of the five vehicle types
described earlier in the provision. Based on its experience in
deploying advanced technologies, DOE proposes to interpret the term
``emerging technology'' to mean pre-production or pre-commercially-
available vehicles of the five types described in section 133. DOE
believes that once these vehicle technologies reach the point of being
mass produced or commercially available and thus are beyond the stage
of demonstration or initial data collection, the provision of any
investment credit under section 508 of EPAct 1992 would be
inappropriate inasmuch as acquisition credit would then be warranted
(see Part IV.C.3 below). DOE requests comments from stakeholders on
whether drawing a distinction between pre-production and commercially
available in the context of the definition of ``emerging technology''
is sufficient and appropriate.
IV. Proposed Allocation of Credit
A. General Basis for Allocations
As described in Part I of this NOPR, the EPAct 1992 fleet programs
use centrally-fueled fleets as launching pads for AFV technologies to
encourage the growth of alternative fuel infrastructure. Through EISA
section 133, Congress has expanded the range of vehicles that may earn
AFV-acquisition credits under the Standard Compliance path of the AFTP.
Congress has directed DOE, and DOE is today proposing, to allocate
credit values for those section 133-specified vehicles that do not
already qualify as AFVs.
EPAct 1992 Title V and the AFTP are designed to encourage the
replacement of petroleum fuels with non-petroleum fuels, through the
use of AFVs. In implementing the EPAct 1992 program for SFP fleets, DOE
has maintained an approach that focuses primarily on the petroleum
replacement capability of vehicles subject to the program. For these
reasons, DOE is proposing to allocate only partial credit to those
section 133-identified electric drive vehicles that do not already
qualify as AFVs, such as HEVs with an internal combustion engine that
operates solely on conventional petroleum fuels.
For those electric drive vehicles identified in section 133 that
previously qualified as ``alternative fueled vehicles,'' based on their
status as either dedicated vehicles or dual fueled vehicles, full AFV-
acquisition credit is already warranted under the AFTP. No further
discussion of these vehicles is needed.
DOE believes that non-AFVs should not receive as much credit as
AFVs, but rather should receive only partial credit because they do not
have as significant an effect on petroleum replacement as do AFVs. For
example, consider an HEV that is not an AFV; even if the vehicle
achieves twice the efficiency of a comparable vehicle, the vehicle
itself is only reducing petroleum consumption by one half, whereas an
AFV has the potential to decrease petroleum consumption in full if it
is operated solely on alternative fuel. Further, fleets that seek
credit for non-AFVs are encouraged to use the AFTP's Alternative
Compliance option, which allows extensive use of various technologies
including higher efficiency vehicles, all toward achieving compliance
with the AFTP.
In today's notice, DOE also proposes to allocate credits for
investments by covered fleets in qualified alternative fuel
infrastructure (e.g., fueling stations), alternative fuel nonroad
equipment (e.g., mobile construction or material/cargo handling
equipment), and emerging technologies (e.g., pre-production vehicles),
with 1 credit to be earned for every $25,000 invested. Within each
category, the number of investment credits would be capped at 5 credits
in a single model year, although for alternative fuel infrastructure
investments, the cap would be 10 credits in a single model year when
the infrastructure at issue is publicly accessible rather than private.
This higher cap for publicly-accessible infrastructure is being
proposed to provide a somewhat greater incentive for those investments
that DOE believes would make alternative fuel infrastructure more
widely available. DOE maintains that this is a key to increasing
petroleum substitution, in accordance with EPAct 1992's purposes (as
implemented through Titles III through V). Congress, in EISA section
133, imposed a five-credit cap on investments in emerging technologies,
and DOE believes for reasons of administrative consistency that a
comparable credit cap should likewise be placed on the other types of
creditable investments. Moreover, DOE is of the view that placing a cap
on investments in alternative fuel infrastructure and nonroad equipment
would help to limit the degree to which the AFTP's existing surplus of
banked credits grows in the future (see Part V.B below).
DOE is proposing that for the purpose of calculating the number of
credits earned, fleets should be allowed to aggregate dollar amounts
spent in the areas of alternative fuel infrastructure, alternative fuel
nonroad equipment, and emerging technology. DOE also proposes the
following limitation: that such aggregation be allowed only to the
extent that additional funds from a category for which the fleet has
already earned the maximum number of credits may not be used to
increase the number of credits earned in another category. For example,
a fleet that spends $40,000 on alternative fuel nonroad equipment and
$60,000 on emerging technology may aggregate the funds to total
$100,000 and claim 2 credits for alternative fuel nonroad equipment and
2 credits for emerging technology. In another example demonstrating the
proposed limitation, a fleet that spends $45,000 on alternative fuel
nonroad equipment and $130,000 on emerging technology may tally 5
credits for emerging technology and 1 credit for nonroad equipment; the
$5,000 spent on emerging technology beyond the cap of $125,000 cap
applicable to emerging technology investment credits may not be used to
increase the amount of funds and hence the number of credits earned
overall by combining with the investment in the alternative fuel
nonroad equipment category. In other words, there is a ceiling on the
amount
[[Page 67297]]
of funds spent in one category that may be used to increase the number
of credits earned in the second or third category. This limitation is
necessary to ensure a cap on the number of credits that may be earned
for funds spent in any one of the three categories. DOE considered not
allowing aggregation of amounts spent. Because DOE is not allowing
fractional credits for amounts lower than $25,000 spent in any one of
the categories, DOE hopes that the proposed approach may be viewed as a
reward for addressing the need for additional deployment in these
categories. DOE welcomes comments on the proposed approach.
DOE is proposing that when fleets report to DOE the total credits
they have earned in a model year (i.e., the total of AFV-acquisition
and relevant investment credits), fleets should total the credits,
including all fractional credits, and then round that aggregate figure
to the nearest whole number. This rounding approach is discussed
further in Part VI.A below.
B. Electric Drive Vehicles
EISA specifies several types of vehicle technologies for which DOE
must determine the amount of credit each is to be allocated under the
AFTP credit program.
1. Hybrid Electric Vehicles (HEVs)
Currently available HEVs have a conventional gasoline engine and an
electric motor that provides a boost or otherwise provides only some
motive force. As indicated above, because they are neither dedicated
vehicles nor dual fueled vehicles, they have not previously qualified
for credit under the AFTP. Current HEVs simply offer higher efficiency
than conventionally-fueled vehicles, as represented by mile per gallon
(mpg) ratings.
Under the Alternative Compliance option, fleets can comply by using
HEVs to help meet their petroleum reduction requirement. For more
information on HEVs and Alternative Compliance, see http://www1.eere.energy.gov/vehiclesandfuels/epact/pdfs/alt_compliance_guide.pdf or the final rule for Alternative Compliance at 72 FR 12958
(March 20, 2007).
HEVs that are not AFVs because they lack an alternative fuel (e.g.,
E85)-capable engine would receive \1/2\ credit under today's proposed
rule, rather than the full credit that dedicated and dual fueled
vehicles already receive.\28\ DOE's proposal to allocate \1/2\ credit
is based on the petroleum replacement potential of these vehicles, as
well as their energy efficiency (i.e., fuel economy), which effectively
dictates their petroleum replacement potential.
---------------------------------------------------------------------------
\28\ Note that in order to give meaning to the EISA section 133
amendments, covered fleets would earn credits for light duty HEVs
under this proposed rule even if they have not yet met their light
duty AFV acquisition requirements. While each light duty HEV
purchase would increase the fleet's acquisition requirements as a
covered LDV purchase at a faster rate than it would offset such
requirements, the rule would provide the concomitant benefit of
providing immediately available credits. If the rule were to only
allow the allocation of credits once the AFV acquisition
requirements had been met, an HEV purchase would afford no
compliance benefit.
---------------------------------------------------------------------------
DOE assumed the same annual usage (i.e., miles driven per year) for
an HEV and a conventional vehicle. For the vast majority of HEVs (other
than PHEVs, as described below), the fuel economy improvement that each
HEV model achieves versus a conventional vehicle model is limited. DOE
examined the efficiency gains and believes that most HEVs generate
efficiency gains that would suggest that DOE propose a lower credit
value, on the order of \1/4\ credit or less in some instances. Some HEV
models, in fact, achieve fuel economy barely greater than conventional
internal combustion engine versions of the same model, while other HEV
models actually achieve lower fuel economy than the most fuel efficient
models in the same size class.
Still other HEVs, however, do achieve a considerably higher
efficiency than the most fuel efficient conventional models in the same
EPA size class. The most notable of these HEVs are the 2011 Toyota
Prius, Mercury Milan Hybrid FWD, and Ford Fusion Hybrid FWD, which are
the most fuel efficient midsize HEVs on the market. According to the
2011 Fuel Economy Guide (available at http://www.fueleconomy.gov), the
Prius achieves 50 mpg ``combined'' (i.e., city/highway) while the
Mercury Milan and Ford Fusion Hybrids each achieve 39 mpg combined.
These three models, which together average almost 43 mpg combined, use
an average of 2.4 gallons combined (city/highway) to travel 100 miles.
This compares to the average of 31 mpg combined, translating into an
average 3.2 gallons combined to travel 100 miles, achieved by the top
three conventional midsize automatic cars, the Hyundai Elantra (33 mpg
combined), Nissan Versa (30 mpg combined), and Kia Forte Eco (30 mpg
combined). In view of this approximately 39% fuel economy improvement
and 25% fuel reduction, DOE has opted to allocate \1/2\ credit to all
HEVs.
DOE specifically considered proposing a higher credit value for
those HEVs that do provide significant efficiency gains and lower
values for those HEVs with comparatively smaller efficiency gains, with
the increments of credits being 0 (0 to 25% efficiency gains when
compared with the most efficient conventional vehicles in their size
class), \1/4\ (25% to 50% efficiency gains), and \1/2\ (over 50%
efficiency gains). In the end, though, DOE believes that a single
credit value for all HEVs would be most manageable from an
administrative standpoint and represents an approximation of the
petroleum reduction of the average hybrid electric vehicle. Although
the petroleum displacement achieved by the most efficient midsize HEVs,
when compared to the most efficient conventional midsize cars, suggests
a credit value closer to \1/3\, to provide an incentive for fleets to
acquire HEVs, DOE believes \1/2\ credit for all non-AFV HEVs is
warranted. While certain vehicles may therefore earn credit out of
proportion to their petroleum savings, \1/2\ credit would still be
appropriate given the AFTP's goal of having fleets serve both as
launching pads for new technologies and as entities seeking to achieve
petroleum consumption reductions. In addition, it also is anticipated
that as hybrid technologies develop, the efficiency of these vehicles
should increase.
Figure 2 below provides the credit allocation determination process
for HEVs.
[[Page 67298]]
[GRAPHIC] [TIFF OMITTED] TP31OC11.005
2. Plug-In Electric Drive Vehicles
Battery electric vehicles are already entitled to a full credit, as
they qualify as dedicated vehicles and, hence, alternative fueled
vehicles under EPAct 1992 section 301.
Because all PHEVs are expected to have at least a 4 kilowatt-hour
battery, they would qualify as plug-in electric drive vehicles under
section 133. Like HEVs, however, PHEVs are anticipated to operate on
both electricity and either conventional petroleum fuel or alternative
fuel. PHEVs typically have more electrical storage capacity onboard
than HEVs, to allow for more significant operation on battery power
alone. PHEVs differ from other HEVs, however, in that they are designed
to operate in part on electric power obtained from off-board sources.
For example, for a PHEV20 (20-mile electric-only range), if the
operator's average daily use is 40 miles, half of the vehicle's
operation could be supplied by electricity assuming no daytime
charging. PHEVs may also hold special promise to enhance fuel
efficiency gains over conventional vehicles and enable the use of
renewable energy in either centralized or distributed power generating
systems. Thus, PHEVs could contribute substantially both to reducing
petroleum use and reducing the associated generation of greenhouse
gases. DOE invites public comments on each of these points.
PHEVs that do not already qualify as AFVs, because they are not
equipped with an engine that is capable of operating (or one that
operates solely) on alternative fuel, nor able to meet the NHTSA
criteria for a dual fueled electric automobile, would be treated under
this proposed rule in the same manner as HEVs, meaning their
acquisition by a covered fleet would result in \1/2\ credit. In
addition to commercially available PHEVs, several organizations
currently perform conversions. To qualify for credit under the AFTP,
any such conversion must be completed within four months of the
vehicle's acquisition under 10 CFR 490.202(c) for states and 10 CFR
490.305(c) for alternative fuel providers.
DOE's rationale behind allocating to non-AFV PHEVs the same credit
value that would be allocated to non-AFV HEVs, \1/2\ credit, is that
both sets of vehicles are non-AFVs and, further, efficiency gains
offered by the former vehicles versus the latter vehicles are
relatively small and do not justify disparate treatment. DOE invites
comments from stakeholders on this equal treatment approach, and
emphasizes that where a commenter believes that a non-AFV PHEV should
be allocated more credit than a non-AFV HEV, the commenter should
include in its comments a sufficiently detailed explanation, ideally
supported by relevant data, articulating why a non-AFV PHEV deserves
more credit than a non-AFV HEV.
Figure 2 in section 1 above depicts the credit allocation
determination process for PHEVs.
3. Fuel Cell Electric Vehicles (FCEVs)
FCEVs with fuel cells that can be powered by hydrogen or some other
alternative fuel already qualify as AFVs
[[Page 67299]]
and thus already are eligible for full credit under the AFTP. To DOE's
knowledge, the majority of FCEVs under development are fueled by
hydrogen, but DOE cannot dismiss the possibility of a non-alternative
fuel-based FCEV one day reaching the market. As a result, DOE is
required by EISA section 133 to establish a credit value for non-AFV
FCEVs.
DOE proposes to treat FCEVs that are neither dedicated vehicles nor
dual fueled vehicles in the same manner as non-AFV HEVs and PHEVs and
allocate them \1/2\ credit. This determination is based on the fact
that current AFV FCEVs typically offer significant efficiency gains
over conventional vehicles, but non-AFV FCEVs, while offering similar
efficiency gains, would not displace as much petroleum as an AFV
operating solely on alternative fuel. DOE solicits comments on this
proposed allocation level, and advises stakeholders who believe that
more than \1/2\ credit is warranted to provide specific data in support
of their position that FCEVs powered solely by non-alternative fuel
(e.g., gasoline or diesel fuel) deserve a higher credit value.
Figure 2 in section 1 above depicts the credit allocation
determination process for FCEVs.
4. Neighborhood Electric Vehicles (NEVs)
Most commonly-available NEVs have been produced as a type of low-
speed vehicle, limited to a top speed of between 20 and 25 mph. NEVs
are typically used for driving short distances on low-speed streets or
on campus-like sites (such as schools or power plants). NEVs
functionally substitute for only some of the activities for which
conventional vehicles are used, and in part serve as substitutes for
walking or bicycling.\29\ In many areas, NEVs are not able to be
licensed for use on public roads. Even in the jurisdictions where they
may be licensed, they typically are limited to streets with speed
limits of 35 mph or less and can never be driven on highways. To date,
the AFTP has treated NEVs, which do not fall under the Clean Air Act
section 216(2) definition of ``motor vehicles'' as interpreted by
EPA,\30\ as ineligible for credit as AFVs.
---------------------------------------------------------------------------
\29\ A 2001 DOE study showed that, of the 348 fleet NEVs
studied, only 18 NEVs had been acquired to replace previous on-road
vehicles, though some of the other NEVs might also have been
acquired in lieu of new on-road vehicles (i.e., fleet expansion).
The 348 NEVs were driven an average of 9 miles per day. See Idaho
National Engineering and Environmental Laboratory, Field Operations
Program--Neighborhood Electric Vehicle Fleet Use (July 2001) (INEEL
Study), at 4, available at http://avt.inel.gov/pdf/nev/nevstudy.pdf.
\30\ Section 301(13) of EPAct 1992 defines ``motor vehicle'' to
have ``the meaning given such term under section 216(2) of the Clean
Air Act (42 U.S.C. 7550(2)).'' In interpreting section 216(2), which
states that a ``motor vehicle'' is ``any self-propelled vehicle
designed for transporting persons or property on a street or
highway,'' DOE defers to EPA, which has found that ``a vehicle shall
be deemed not a motor vehicle and excluded from the operation of the
Act [if the] vehicle cannot exceed a maximum speed of 25 miles per
hour over level, paved surfaces * * *'' 40 CFR 85.1703(a). DOE has
therefore historically chosen not to treat NEVs as motor vehicles.
---------------------------------------------------------------------------
In a 2001 study, DOE found that NEVs are driven an average of 3,410
miles per year.\31\ This compares to the average annual use of light
duty household vehicles in the U.S. in 2009 of 10,100 miles per
year.\32\ For light duty business fleet vehicles, however, average
annual use in 2008 ranged from 22,968 to 28,020 miles.\33\ Therefore,
the use of NEVs substitutes for a small percentage of conventional
vehicles' applications. While NEVs might serve well as substitutes for
motor vehicles in some covered fleets, such as State college campus
fleets, their potential for addressing the EPAct 1992 goal of petroleum
fuel replacement is limited by their capabilities and reduced number of
vehicles miles traveled.
---------------------------------------------------------------------------
\31\ Id.
\32\ See DOE, Transportation Energy Data Book: Edition 29 (July
2010), at Table 8.9.
\33\ Id. at Table 7.3.
---------------------------------------------------------------------------
A comparison of the data above on average annual miles driven by
NEVs and average annual miles driven by business fleets suggests that a
credit of no more than \1/8\ may be warranted. DOE, however, is
proposing to allocate \1/4\ (0.25) credit for each NEV acquired, in an
effort to provide a general incentive for covered fleets to eliminate
petroleum consumption through the acquisition of these vehicles
notwithstanding their limited fuel replacement value. The \1/4\ credit
level may appear small, but the actual resulting value to the acquiring
fleet is larger than the \1/4\ allocated. This stems from the fact that
NEVs are not considered motor vehicles under the AFTP and thus are not
included within the covered LDV count used to set AFV-acquisition
requirements; in other words, unlike the acquisition of a light duty
AFV, the acquisition of an NEV does not increase the vehicle count that
is the basis for calculating the AFV-acquisition requirements. Thus,
the acquisition by a covered fleet of an NEV, rather than a light duty
AFV, would provide an additional benefit to the fleet inasmuch as the
acquisition of the light duty AFV would itself generate a requirement
for the acquisition of 0.75 (State fleet) or 0.9 (alternative fuel
provider fleet) of yet another light duty AFV, meaning the net credit
result stemming from the acquisition of the initial light duty AFV
would be either 0.25 (1 minus 0.75) or 0.1 (1 minus 0.9) of a credit.
In the case of an NEV acquired by a covered fleet, the acquisition
would result in a net surplus of \1/4\ credit.\34\
---------------------------------------------------------------------------
\34\ Under the existing AFTP, neither AFV-acquisition
requirements nor AFV credits are addressed in amounts below one, but
fleet aggregates implicitly involve fractional credits for
individual acquisitions.
---------------------------------------------------------------------------
In addition, DOE believes that for administrative management
reasons, the \1/4\ credit value is the smallest value that should be
allocated under the AFTP.
5. Medium- or Heavy-Duty Electric Vehicles
a. General
Currently, medium- or heavy-duty electric vehicles are commercially
available, though perhaps only in limited numbers outside of the
transit bus sector. Conventional medium- or heavy-duty vehicles
typically use several times the amount of fuel that conventional LDVs
use. Thus, the deployment of higher efficiency or alternative fuel
versions of such vehicles would be expected to have significant
potential to reduce U.S. petroleum use.
Under the existing AFTP, the acquisition of a medium- or heavy-duty
AFV yields one credit, but only after the fleet meets its light duty
AFV-acquisition requirements. Medium- or heavy-duty vehicles are not
covered vehicles under the AFTP, meaning that, unlike the acquisition
of light duty AFVs, the acquisition of medium- or heavy-duty AFVs does
not increase the vehicle count that is the basis for calculating the
AFV-acquisition requirements. Thus, as with NEVs (see Part IV.B.4
above), under the existing AFTP the acquisition by a covered fleet of a
medium- or heavy-duty AFV, rather than a light duty AFV, provides an
additional benefit to the fleet inasmuch as the acquisition of the
light duty AFV would itself generate a requirement for the acquisition
of 0.75 (State fleet) or 0.9 (alternative fuel provider fleet) of yet
another light duty AFV, thereby yielding a net credit result stemming
from the acquisition of the initial light duty AFV of either 0.25 (1
minus 0.75) or 0.1 (1 minus 0.9) of a credit. In the case of medium- or
heavy-duty AFVs, including battery electric vehicles, acquired by a
fleet, the acquisition results in a net surplus of one full credit.
[[Page 67300]]
b. Hybrid Electric and Plug-In Hybrid Electric Vehicles
EISA section 133 calls for DOE to determine how to allocate credit
to medium- or heavy-duty HEVs and PHEVs that do not already qualify for
credits under the AFTP as AFVs. As indicated earlier, DOE proposes to
define a ``medium- or heavy-duty electric vehicle'' to mean an
``electric, hybrid electric, or plug-in hybrid electric vehicle with a
gross vehicle weight rating of more than 8,500 pounds.'' Medium- or
heavy-duty battery electric vehicles, as dedicated vehicles, already
qualify as AFVs and therefore already are eligible for one credit.
Similarly, HEVs or PHEVs in excess of 8,500 pounds with an internal
combustion engine that can operate (or that operates solely) on
alternative fuel, already qualify as AFVs. For medium- or heavy-duty
non-AFV HEVs and PHEVs, DOE considered the following options:
Allocate one credit, accounting for the fact that
conventional medium- or heavy-duty vehicles consume more fuel than do
conventional LDVs and thus a greater potential impact results from the
acquisition of a medium- or heavy-duty non-AFV HEV or PHEV; or
Allocate \1/2\ credit, accounting for the potentially
greater impact (as compared to an LDV) that a medium- or heavy-duty
non-AFV HEV or PHEV can have over a conventional medium- or heavy-duty
vehicle, but also noting that despite the increased efficiency, such a
medium- or heavy-duty non-AFV HEV or PHEV still is not an AFV.
DOE is proposing to allocate \1/2\ credit for the acquisition of
medium- or heavy-duty HEVs and PHEVs (as well as medium- or heavy-duty
fuel cell electric vehicles) that do not otherwise qualify as AFVs. DOE
requests comments on this proposed allocation, and reminds covered
fleets that they would still be able to earn biodiesel fuel use credits
by using biodiesel blends of B20 or greater in medium- or heavy-duty
non-AFV HEVs or PHEVs with diesel engines (or in medium- or heavy-duty
fuel cell electric vehicles with diesel-powered fuel cells). DOE also
clarifies that \1/2\ credit would be earned only for the acquisition of
a medium- or heavy-duty non-AFV HEV or PHEV with an electric
drivetrain, as opposed to those that use electric power only to run
their onboard equipment while stationary at a site. Thus, a utility-
type truck with a plug-in electric bucket system, but no electric
drivetrain, would not be eligible for credit under the allocation
system proposed today. At the same time, acquisition of such a vehicle
may allow the fleet to reduce idling time, thus saving fuel. In such a
case, the fleet could still receive credit for the vehicle by choosing
to comply under Alternative Compliance, where petroleum use reductions
stemming from idle reduction technologies may be counted toward a
fleet's petroleum reduction requirement.
DOE also requests that commenters address whether the preferred
approach of \1/2\ credit should only be available for commercially-
available/production vehicles and not for demonstration vehicles. DOE
considers demonstration vehicles to be pre-production vehicles, which,
as discussed in Part III.B.8 above, constitute ``emerging technology,''
credit for which is addressed in Part IV.C.3 of this NOPR. Fleets,
however, would not be able to earn multiple credits for the same
vehicle acquisition (e.g., credit under one of the above acquisition
approaches as well as credit for an emerging technology investment).
Rather, a fleet would have to choose whether to earn credit for the
acquisition itself, or for the investment in emerging technology.
Finally, DOE notes that, like medium- or heavy-duty AFVs, which
receive credit only after the particular covered fleet has met its
light duty AFV-acquisition requirement (10 CFR sections 490.502 and
490.503), acquired medium- or heavy-duty non-AFVs would not be entitled
to \1/2\ credit until the covered fleet has met its light duty AFV-
acquisition mandate. DOE seeks to maintain a level playing field for
all vehicles with a gross vehicle weight rating of more than 8,500
pounds, regardless of the drive or fuel type, and believes that because
the light duty AFV precondition already applies to medium- or heavy-
duty AFVs, it also should apply to medium- or heavy-duty non-AFVs that
would receive \1/2\ credit under this NOPR. A non-level playing field
effectively would mean that covered fleets have an incentive to acquire
medium- or heavy-duty non-AFVs over AFVs. To avoid this result, and to
draw a clearer distinction between light duty versus medium- or heavy-
duty vehicles, DOE proposes revisions to existing 10 CFR 490.502(a)-
(b), 490.503(a)-(b), and 490.507(b). DOE invites comments on these
modifications.
C. Investments
1. Alternative Fuel Infrastructure
To address EISA section 133's requirement that DOE allocate credits
for investments in alternative fuel infrastructure, DOE chooses first
to focus on EPAct 1992's original objectives in its replacement fuel
programs. In general, the concept behind the EPAct 1992 fleet programs
is to use the covered centrally-fueled fleets to catalyze both
manufacturer AFV offerings and refueling infrastructure, paving the way
for AFV use by other fleets and, ultimately, the general public. While
the statutory requirements were set in terms of vehicle acquisitions,
the EPAct section 502(a) goal of maximizing replacement fuel use also
involves consideration of infrastructure availability. Thus, the
development of an alternative fuel refueling infrastructure that
ultimately serves as much of the population as possible is important to
achieving the program goals.
As explained in Part III.B.6 of this NOPR, DOE interprets the
phrase ``alternative fuel infrastructure'' to mean one or more
alternative fueling or charging/battery exchange stations. In
determining the allocation of credits for alternative fuel
infrastructure investment, DOE is proposing that a covered fleet that
installs a new alternative fueling or charging/battery exchange station
would be eligible to receive one credit for every $25,000 invested
toward developing that infrastructure. DOE believes that $25,000 per
investment credit is an appropriate dollar figure inasmuch as the
installation of an E85 pump and tank historically has cost roughly
$25,000.\35\ We also note that the average new LDV costs $25,000, as
discussed in the next section, and as the investment credit proposal
provides an alternative to acquiring light duty AFVs, the consistent
$25,000 threshold is appropriate. DOE requests comments from
stakeholders on the appropriateness of this dollar figure for purposes
of determining the applicable investment credit.
---------------------------------------------------------------------------
\35\ The average of the E85 stations listed on the ``Sample E85
Station Costs'' Web page of DOE's Alternative Fuels & Advanced
Vehicles Data Center (http://www.afdc.energy.gov/afdc/ethanol/cost.html) is approximately $27,000. This figure has been rounded
down slightly for administrative purposes.
---------------------------------------------------------------------------
DOE also is proposing to limit the number of credits that may be
earned in a single model year to a maximum of 5 credits per fleet if
the infrastructure is private, and a maximum of 10 credits per fleet if
the infrastructure is publicly accessible. (Additionally, a fleet that
installs both public and private infrastructure in a given model year
would be limited to a maximum of 10 credits.) The difference is
intended to reflect DOE's preference for alternative fuel
infrastructure that can be accessed by the public, as such
accessibility
[[Page 67301]]
would expand alternative fuel refueling options more broadly to other
fleets and vehicles.
To be eligible for investment credit, the alternative fuel
infrastructure would have to be installed and paid for by the fleet
requesting credit, or at least paid for by that fleet. Infrastructure
that is installed and paid for or simply paid for by entities or
organizations not subject to the requirements of the AFTP would not be
eligible for credits.
To receive infrastructure investment credit, DOE would need to know
how much money was expended, the period or model year during which the
investment was made, and on exactly what infrastructure the investment
was spent. Covered fleets would have to apply to DOE through the credit
activity reporting mechanism in subpart F of the AFTP regulations and
clearly identify the alternative fuel type, specific location, date of
initial operation, and level of accessibility of the station.
Importantly, the station would have to begin operation during the model
year for which credit is sought, and each fleet would be limited to one
award of credits per site, per model year. For example, if a covered
fleet's infrastructure investment spans more than one year, with the
fleet having invested $12,500 in a new AFV fueling station during one
model year and then an additional $12,500 in that station during the
following model year, and with the new station becoming operational
during that second year, the fleet would be entitled to 1 investment
credit in the second model year. Should the fleet neglect to seek
credit during that second model year for its $25,000 total investment
but instead apply for the single credit in a later year, DOE would
allocate no credit. Similarly, if the fleet applies for credit in its
credit activity report for the first model year, DOE would reject the
request on the grounds that the alternative fuel infrastructure did not
become operational during that year.
Credits would be awarded for new fueling or charging stations, or
for the expansion of existing stations if additional fueling or
charging capability is being added (such as an additional dispensing
unit at an existing station), in which case the additional capability
would have to become operational during the model year for which credit
is sought. Simply installing additional electrical outlets, however,
would not qualify for investment credit.\36\ Nor would credit be
provided for maintenance of or improvements to existing equipment at an
existing station. Fleets would have to certify the accuracy of the
information provided.
---------------------------------------------------------------------------
\36\ DOE would distinguish an electrical outlet from charging
stations, such as those currently available (See, e.g., http://www.afdc.energy.gov/afdc/vehicles/electric_charging_equipment.html).
---------------------------------------------------------------------------
For administrative management reasons, DOE is proposing to allocate
only whole number values of credits for investments in alternative fuel
infrastructure.
2. Alternative Fuel Nonroad Equipment
``Alternative fuel nonroad equipment'' eligible for investment
credit allocation has been defined in Part III.B.7 of this NOPR to
include only mobile equipment that operates on alternative fuel.
Stationary equipment would not be eligible to receive credit. DOE
anticipates that some stationary equipment may be eligible for credit
as ``alternative fuel infrastructure,'' which would be defined to
include charging or battery exchange stations. DOE's view is that
credit for investment in such a station is better suited under the
alternative fuel infrastructure mechanism as opposed to the alternative
fuel nonroad equipment mechanism. For this reason, a fleet seeking
credit for investment in a new or expanded charging or battery exchange
station would be expected to proceed under the approach set forth for
alternative fuel infrastructure. The fleet could not seek investment
credit for the new or expanded charging or battery exchange station as
alternative fuel nonroad equipment. Further, similar to the requirement
for alternative fuel infrastructure, credit would only be provided for
new mobile equipment, not maintenance of or improvements to existing
mobile equipment.
DOE has preliminarily chosen to base the allocation of credit on
the rough value represented by the average price of a new LDV sold in
the United States in 2008. According to the latest edition of DOE's
Transportation Energy Data Book, this average price was $23,186 (in
2009 dollars).\37\ Converting this value to 2010 dollars (using the
Department of Labor's CPI Inflation Calculator), the figure is
approximately $25,000. DOE believes that the appropriate expenditure
level for purposes of earning a credit for investment in alternative
fuel nonroad equipment is this amount, or $25,000. DOE believes that
this value is a sufficiently high value to demonstrate a significant
investment in nonroad equipment rather than rewarding credit for
actions a fleet otherwise planned to take. In addition, this amount is
equivalent to the other investment-type credits under today's action,
providing for some level of administrative consistency. Therefore, DOE
is proposing to allocate 1 credit for every $25,000 invested in
alternative fuel nonroad equipment. Credits would be applied in whole
number values, with 1 credit allocated for each $25,000 threshold
achieved, with a maximum of 5 credits earned per fleet in a single
model year. To be eligible for consideration of credit, the investment
would have to have been made by the requesting fleet. Investments made
by organizations not subject to the requirements of the AFTP would not
be eligible for credits.
---------------------------------------------------------------------------
\37\ See DOE, Transportation Energy Data Book: Edition 30 (July
2011), at Table 10.12.
---------------------------------------------------------------------------
Each fleet would have to apply for alternative fuel nonroad
equipment credit through a credit activity report. To receive nonroad
equipment investment credit, DOE would need to know how much money was
expended, the period or model year during which the investment was
made, and on exactly what mobile equipment the investment was spent.
Consistent with the proposed definition of alternative fuel nonroad
equipment, a fleet requesting credit would have to certify that the
equipment is being operated on alternative fuel, within the constraints
of best practices and seasonal fuel availability. DOE requests comments
on this point.
DOE acknowledges that a covered fleet's investment in alternative
fuel nonroad equipment may not necessarily coincide with the fleet's
acquisition of the equipment. For consistency, however, DOE is
proposing that a fleet would get credit for the year in which the
nonroad equipment is put into operation.
For administrative management reasons, DOE is proposing to allocate
only whole number values of credits for alternative fuel nonroad
equipment investments. DOE specifically considered setting the level
for earning credit at twice the proposed level, or 1 credit per $50,000
invested. DOE is therefore requesting comments upon the appropriate
investment level for credit purposes.
3. Emerging Technology
As discussed in Part III.B.8 of this NOPR, availability of credits
for investments in emerging technology would be based on the
development status of the relevant vehicle technologies. In EISA
section 133, Congress has instructed DOE to allocate credits for such
emerging technology investments so as ``to encourage (i) a reduction in
petroleum demand; (ii) technological advancement; and (iii) a reduction
in vehicle emissions.'' In
[[Page 67302]]
DOE's view, only by deploying the five vehicle technologies listed in
section 133 (hybrid electric vehicles, plug-in electric drive vehicles,
neighborhood electric vehicles, fuel cell electric vehicles, and
medium- or heavy-duty electric vehicles) before widespread commercial
availability (or production) can necessary data from actual users be
generated, including data related to performance and operating costs.
These types of data can be critical to determining whether a technology
needs improvement and if so, how it should be improved to allow wider
use. If data show that no improvement is needed, then such data could
assist future potential users in deciding whether to select the
technology.
Under the emerging technology investment credit allocation, DOE is
proposing to allocate no additional credits for the acquisition of a
pre-production version of any of the five vehicle types themselves,
although DOE's position is that the pre-production vehicle constitutes
an emerging technology. DOE is proposing that such pre-production
vehicles would yield one credit by virtue of their acquisition (if they
qualify as AFVs, or the appropriate level if they qualify as one of the
five electric drive vehicles but not as an AFV) or they can yield
emerging technology investment credits, but not both. In other words,
fleets would not be able to earn duplicate credits for multiple reasons
stemming from the same vehicle acquisition (e.g., credit under one of
the vehicle acquisition approaches as well as credit for an emerging
technology investment).
DOE is proposing that investments in pre-production versions of the
five vehicle types would earn 1 credit per $25,000 invested. DOE
solicits comments from fleets and other stakeholders on this proposed
level of credit allocation. As with investments in alternative fuel
nonroad equipment, the $25,000 level is based on the average price of a
new LDV sold in the United States in 2008. DOE also is proposing to
limit the number of credits that may be earned in a single model year
under this category of credits to a maximum of 5 credits per fleet.
Under this approach, as an example, a covered fleet spending
$500,000 on the acquisition of 10 pre-production PHEVs (i.e., $50,000
per PHEV) could obtain a total of 12 credits; 5 credits for the
expenditure of at least $125,000 to acquire three of the vehicles and 7
credits for the acquisition of the other seven PHEVs. In the above
example, if the subject vehicles instead were pre-production non-AFV
PHEVs, then the fleet would receive the same 5 credits for the
investment of the $125,000, plus another 3.5 credits (7 x \1/2\ credit,
subject to rounding rules when totaled) for the remaining seven
vehicles.
DOE considered allocating emerging technology investment credit for
additional fleet investments (i.e., investments apart from the pre-
production vehicle's acquisition) that are required to support
incorporation of emerging technology versions of the enumerated
electric drive vehicles into covered fleets, as well as for investments
in components of the enumerated vehicles. For example, incorporating a
given emerging technology electric drive vehicle into a fleet might
require the fleet to acquire specialized maintenance equipment to
address the new vehicle's needs. DOE solicits comments on this issue
and encourages stakeholders, to the extent they believe credit should
be allocated for investments in components and/or support equipment, to
address in particular the manageability aspect of such an approach.
In summary, DOE is proposing to allocate one credit for every
$25,000 investment in eligible emerging technologies, with a maximum of
five credits to be earned per fleet per model year, consistent with
other ``investment-type'' provisions under this proposed rule. DOE did
consider whether to allow fleets to earn more than a maximum of five
credits annually per technology, however, in an effort to limit the
degree to which the system's credits surplus grows, DOE has chosen to
allot a maximum of five credits per model year, per fleet, for this
category of credits. Eligibility for such credit would only exist while
the underlying vehicle technology is still considered ``emerging,'' in
accordance with the definition provided in Part III.B.8 of this NOPR.
Therefore, an investment that might be eligible for investment credit
in one year might not be eligible the next year, if the underlying
vehicle technology moves into commercial production. In addition, to be
eligible for consideration of credit, the requesting fleet would have
to have made the investment. Investments in emerging technologies by
organizations not subject to the requirements of the AFTP would not be
eligible for credits (e.g., payments to industry groups or associations
or for education outreach, lobbying, or other similar activities for
which the fleet has little or no control over the activity).
DOE is proposing to allocate credits in whole number values, with
credit allocated for each $25,000 threshold achieved. As with the other
investment-related credits, DOE would not allot fractional credits for
investments in emerging technology. Each fleet would have to apply to
DOE to receive credit for emerging technology investments. The
documentation the fleet provides would be critical to any allocation of
credit DOE makes; therefore, fleets requesting credit under this
provision should be prepared to supply sufficiently-detailed
information from which DOE could verify the specific purposes of the
subject investment, as well as the specific amount of the investment
and that the investment has not been the subject of credit elsewhere
under this program. Fleets would have to certify the accuracy of the
information provided. DOE acknowledges that a covered fleet's
investment in emerging technology may not necessarily coincide with the
fleet's acquisition of the technology. For consistency, however, DOE is
proposing that a fleet would get credit for the year in which the
emerging technology is put into operation.
The amounts submitted for consideration for credit should not
include amounts or activities that are credited elsewhere under the
provisions related to acquisition of AFVs, electric drive vehicles,
alternative fuel infrastructure, or alternative fuel nonroad equipment.
DOE solicits comments from fleets and other stakeholders on the
proposed level of credit allocation ($25,000/credit).
Summary Table of Credits
Proposed Credit Levels Under Standard Compliance for Electric Drive
Vehicles Not Classified as AFVS and for Other Actions
------------------------------------------------------------------------
Credit category Credit allotment Limitations/other
------------------------------------------------------------------------
HEV........................... \1/2\ credit.....
PHEV.......................... \1/2\ credit.....
FCEV.......................... \1/2\ credit.....
[[Page 67303]]
NEV........................... \1/4\ credit..... Not included in
covered LDV count.
Medium- or heavy-duty HEV/PHEV \1/2\ credit..... Not included in
covered LDV count.
Alternative Fuel 1 credit per Maximum of 5 credits
Infrastructure. $25,000 invested if private
*. infrastructure, 10
credits if publicly-
accessible
infrastructure;
credit allocated in
model year placed
into operation.
Alternative Fuel Nonroad 1 credit per Maximum of 5 credits
Equipment. $25,000 invested per fleet per model
*. year.
Emerging Technology........... 1 credit per Maximum of 5 credits
$25,000 if counting based on
invested, or 1 amount invested, per
credit per pre- fleet per model
production year.
vehicle *.
------------------------------------------------------------------------
* Aggregation of dollar amounts allowed (see Part IV.A above).
V. Proposed Modifications to the Existing AFTP
Covered SFP fleets have been complying with the AFTP for almost
fifteen years. Since its establishment in 1996, the AFTP has operated
smoothly, with tremendous compliance rates. DOE has considered the
successes of the AFTP and its applicable requirements in the context of
seeking continued efficient and simple AFTP operation within a
framework of limited resources. As a result, DOE has identified several
areas in which it believes modifications to the existing AFTP can
benefit AFTP stakeholders and increase Program efficiencies. DOE seeks
comments from stakeholders on each of the proposals set forth below.
A. Timeliness of Exemption Request Submittals
On occasion, DOE has received complete exemption requests before
and also well past the model year for which the requests would apply.
In other instances, DOE has received incomplete exemption requests and,
following correspondence between DOE and the submitter, the latter has
not provided necessary information to DOE in a timely fashion. The
result in these instances is that a complete exemption request was not
submitted to DOE until well past the relevant model year.
The existing AFTP does not provide specific time frames in which
covered fleets must submit their exemption requests to DOE. The
regulations, specifically 10 CFR 490.204 (State fleets) and 490.308
(alternative fuel provider fleets), currently specify neither the
earliest date nor a deadline by which exemption requests must be
submitted; in the case of States, section 490.204(b) specifically
provides that requests for exemptions ``may be submitted at any time *
* *.''
When an exemption request is submitted before the model year for
which the exemption would apply, there is a distinct risk that the
submitting fleet will not have in hand information sufficient to be
able to commit to vehicle specifics in its request. Moreover, when an
exemption request is submitted before the start of and even during a
model year, the fleet's planned acquisitions often will change
subsequent to the request's submission. For example, the requesting
fleet may acquire a different number of LDVs, or a different makeup
(e.g., make and model) of LDVs, compared to what was indicated in the
fleet's exemption request. Similarly, a fleet requesting exemptions
before the close of a given model year on the basis that alternative
fuel is unavailable may find that an appropriate alternative fuel
station has opened after submission of its request. Such changes during
the model year have resulted in fleets having to resubmit their
exemption requests.
DOE believes that submitting an exemption request before the close
of the subject model year (i.e., before August 31) often leads to these
situations. As required under 42 U.S.C. 13251(a)(5) and 13257(i),
exemption requests must ``demonstrate[] to the satisfaction of the
Secretary'' that certain factors apply. In establishing a start date
for submissions, DOE hopes to encourage more accurate exemption
requests, thus reducing the likelihood that fleets would have to revise
and resubmit their requests.
Similarly, exemption requests and responses to DOE requests for
clarification or additional information would be limited by a deadline
under this NOPR. DOE believes this is appropriate given that a fleet
should have an adequate level of certainty regarding the availability
of alternative fuels and vehicles for the just-completed model year.
Based on the foregoing, DOE is proposing the following:
[dec221] A covered fleet may submit an exemption request no earlier
than September 1 following the subject model year, and the exemption
request must be preceded by the fleet's annual report for that model
year.
[dec221] DOE must receive an exemption request no later than
January 31 following the subject model year for which the exemption
request would apply.
[dec221] For submitted exemption requests on which DOE seeks
clarification or additional information, the requesting fleet must
respond to DOE within 30 days, or DOE would process the exemption
request based solely upon the information it has.
Therefore, covered fleets would have a five-month period in which
to seek exemptions from DOE. If a covered fleet were to submit an
exemption request during the subject model year (i.e., prior to the
model year's close on August 31) and, therefore, prior to having
submitted its annual report, DOE would inform the fleet's point of
contact (POC) by electronic mail that the request was submitted too
early and, for that reason, DOE would not consider it unless it were
resubmitted after the fleet filed its required annual report. Should a
covered fleet submit an exemption request after January 31 following
the subject model year (i.e., more than five months after the model
year ended), DOE would notify the POC by electronic mail that because
the exemption request was submitted too late, DOE will not provide a
written determination under section 490.204 or section 490.308.
Similarly, if a covered fleet does not respond to a request from DOE
for additional information within a timely manner (i.e., 30 days), DOE
would process the fleet's exemption request based on the information
DOE already has, which might not be sufficient to support the granting
of the request either in whole or in part.
DOE has based this schedule upon the experience it has gained since
the inception of the AFTP, and believes that five months is sufficient
time for covered fleets to submit their exemption requests. To date,
the vast majority of exemption requests have been submitted by fleets
after the applicable model year has ended, and, in fact, after
[[Page 67304]]
the respective fleet's submission of its required annual report. Only a
few isolated cases have occurred outside of the proposed five-month
filing period. Thus, no hardship is anticipated by formalizing this
schedule.
Moreover, requiring the prior submission of a fleet's annual
report, which is due no later than December 31 following the model year
(10 CFR Sec. 490.205 and 490.309), should limit the need for DOE to
seek clarification or additional information from the requesting fleet.
Even those fleets that file their annual report on the December 31
reporting deadline would still have one full month to prepare their
exemption requests, although earlier submission of reports is still
recommended.
B. Program Credits and Exemption Requests
Under the AFTP, covered fleets that go beyond compliance under the
Standard Compliance method by acquiring more AFVs than they are
required to acquire in a given model year may bank credits earned for
these additional acquisitions. 10 CFR 490.503(a). These fleets may then
draw upon these banked credits as they need them in future model years,
or they may sell or trade these credits to other covered fleets that
need credits for purposes of complying with their own Standard
Compliance obligations. Thus, the purpose of the credit program is to
provide flexibility to fleets. Since 1996, covered SFP fleets have
generated a significant number of banked credits.
The credit banking system has matured greatly since its inception.
Fleets have generated and accumulated more credits than they are using.
As of the start of MY 2010, there were over 61,500 banked AFV-
acquisition credits in the system. This number of credits is an amount
sufficient to keep the AFTP operating without any fleets acquiring AFVs
for at least an estimated four years. Clearly, as a group, covered
fleets are not having trouble generating AFV-acquisition credits, and
this proposed rule, once promulgated, would only increase the number of
ways in which fleets can obtain credits under the AFTP.
Despite this surplus of credits, covered SFP fleets annually
request exemptions from AFV-acquisition requirements. Since MY 2000,
DOE has granted exemptions for over 9,600 AFVs, which were included in
nearly 350 exemption requests. In many instances, covered fleets with
banked credits request and receive exemptions.
DOE is not required to grant AFV-acquisition exemption requests
unless certain demonstrations are made to its satisfaction. A request
for exemptions should be a form of administrative relief of the last
resort, in the event a fleet is unable to satisfy its AFV-acquisition
requirements through the available compliance avenues, including AFV
acquisitions, biodiesel use in medium- and heavy-duty vehicles, and
obtaining banked credits from other fleets. Overall, DOE does not
believe that exemptions further the replacement of petroleum fuels in
accordance with EPAct 1992. Exemptions should therefore be viewed
purely as administrative relief in the event a fleet cannot otherwise
meet its AFV-acquisition requirements.
In order to address the surplus of credits and the use of the
exemption process, DOE is proposing three revisions. First, DOE is
proposing that covered fleets be required to use their own banked
credits before requesting exemptions from DOE. With respect to any
covered fleet whose annual report reveals an AFV-acquisition
deficiency, under today's proposed rule, DOE would not need to receive
a specific request from the fleet to apply banked credits towards the
existing deficiency. With the proposed coordinated timeframes for
submitting exemption requests and model year annual reports, DOE would
be able to consider a fleet's available credits when a deficiency is
identified in an annual report, and then consider exemption requests as
necessary. Pursuant to 10 CFR 490.504, which would become section
490.505, DOE, in response to a fleet's request that its banked credits
be counted as AFV acquisitions, would continue to apply the credits in
such manner. In the absence of a request, though, DOE would
automatically apply a deficient fleet's banked credits towards the
credit shortfall. Proposed language to this effect is included in new
section 490.505(b). In the case where a requesting fleet has some
banked credits but not enough to negate the need for any exemptions,
DOE would apply the fleet's banked credits first, reducing the number
of exemptions sought.
Second, DOE is proposing to require that deficient fleets without a
sufficient number of banked credits to resolve the deficiency provide
information in their annual reports regarding any efforts they have
made to purchase or trade for credits in the credit market.
Third, DOE is proposing in this rulemaking that exemption requests
submitted by a fleet within 90 days of that fleet's sale of banked
credits will not be granted.
This NOPR would expand the array of creditable actions available to
fleets, thus making it easier for covered fleets to comply with their
AFV-acquisition requirements and simultaneously expanding the
compliance options that fleets must explore in advance of pursuing
exemptions. DOE believes that going forward there will be fewer
justifications for granting exemptions. To date, DOE has granted
exemptions as a means to provide fleets flexibility when their efforts
to comply have resulted in a shortfall of credits. Today DOE proposes
steps that are designed to ensure that fleets use their existing
credits for the purpose for which they were generated. DOE seeks
comments from stakeholders on applying a fleet's credits prior to
granting exemptions, requiring covered fleets to provide information
regarding their attempts to purchase or trade for credits in their
annual reports, and the restriction on banked credit sales 90 days
prior to an exemption request.
In these ways, DOE seeks to limit the growth of the store of
credits currently in the AFTP, and in so doing, ensure banked credits
have value and further the goals of the AFTP. Reducing the store of
credits and ensuring a demand for these credits would help to increase
the value of credits and thereby make these credits relevant in a
fleet's decision-making regarding how to comply with the AFV-
acquisition requirements. A fleet lacking credits may have to consider
whether purchasing a market-priced credit is a better financial option
than participating in the AFTP's Alternative Compliance option. DOE
believes this latter option can save the fleet financial resources by
helping the fleet reduce its petroleum consumption. As an option of
last resort, a State fleet may still request an exemption based on
unreasonable financial hardship (10 CFR 490.204(a)(3)).
C. Alternative Compliance
As mentioned earlier, Congress created the Alternative Compliance
option in 2005, and DOE promulgated its final rule establishing subpart
I of 10 CFR part 490 on March 20, 2007. Covered fleets that wish to opt
into Alternative Compliance are required to apply for a waiver. 10 CFR
490.805(b)(1) requires that a preliminary intent to apply for a waiver
be registered by March 31 prior to the model year for which the waiver
is sought. Under 10 CFR 490.805(b)(2), a fleet's complete waiver
application is due no later than July 31 if the application is
dependent on information regarding the availability of motor vehicle
models to be released by auto manufacturers, while under 10 CFR
490.805(b)(3), the complete waiver
[[Page 67305]]
application is due by June 30 if it is not dependent on such
information. DOE established these alternative due dates to alleviate
difficulties associated with preparing an application in the face of
new model year vehicle data, which manufacturers generally do not
release until summer.
After several years of experience with Alternative Compliance, DOE
has determined that it is appropriate to have a single deadline for
complete waiver applications. Having one due date is expected to be
less confusing to fleets. In addition, it has proven to be difficult
for DOE to determine whether a fleet should have submitted its waiver
application by the earlier submittal date. Ultimately, DOE encourages
covered fleets to submit Alternative Compliance waiver applications and
seeks to ensure that interested fleets have sufficient time to submit
their applications. Therefore, DOE is proposing to delete the June 30
due date and establish a uniform application deadline of July 31. All
waiver applications would be due no later than July 31 prior to the
model year for which a waiver is sought. The deadline for filing a
notice of intent, which is March 31 prior to the model year for which a
waiver is sought, would be unaffected.
Based upon its implementation to date of the Alternative Compliance
option, DOE also has realized that the existing regulatory provisions
pertaining to the rollover of excess petroleum reductions achieved
through Alternative Compliance in a previous model year could be
clearer for fleets. Therefore, DOE is proposing revisions to the
language in 10 CFR 490.804(c) to clarify the steps for requesting and
applying rollover reductions to future model years for which a waiver
is sought. Under proposed section 490.804(c)(2)(i), a fleet wishing to
roll over for future use the excess petroleum reductions that it
achieved in a particular model year would have to make a written
request to DOE as part of the fleet's annual report for that year.
Similarly, under proposed section 490.804(c)(2)(ii), if the fleet seeks
to apply any of the excess petroleum reductions previously rolled over
to a later model year for which an Alternative Compliance waiver was
also granted, the fleet would have to include a written request as part
of its annual report for that later model year.
Finally, DOE is proposing a modification to section 409.809 to
address the situation in which DOE has revoked a fleet's Alternative
Compliance waiver. The modification would clarify that such a fleet is
precluded from requesting any exemptions under Standard Compliance for
the model year of the revoked waiver. DOE previously has explained
``that it would not grant exemptions to a State under [section] 490.204
or to a covered person under [section] 490.308 if the State or covered
person has been granted an alternative compliance waiver.'' \38\ The
proposed revision to section 490.809 would set forth in the regulations
DOE's longstanding position that a fleet that has been granted a waiver
for a particular model year is not eligible for any exemptions during
that model year.
---------------------------------------------------------------------------
\38\ 72 FR 12958, 12962 (Mar. 20, 2007); See also 71 FR 36034,
36036 (June 23, 2006).
---------------------------------------------------------------------------
D. Other Regulatory Revisions
DOE also is proposing today several minor technical amendments that
are designed to make the AFTP regulations internally consistent. These
amendments, which DOE believes are non-controversial, clarify the
definitions of ``capable of being centrally fueled'' and ``fleet'' as
they appear in 10 CFR section 490.2, correct an error in 490.308(f),
and standardize the use of the terms ``alternative fueled,''
``dedicated'', and ``dual-fueled'' as they appear in the following
provisions:
10 CFR 490.202(a);
10 CFR 490.205(b)(5)(iv);
10 CFR 490.305(a); and,
10 CFR 490.309(b)(5)(iv).
E. Other Issues
DOE also wishes to clarify that alternative fuel provider fleets
will continue to receive credit under the AFTP for the acquisition of a
light duty AFV irrespective of whether the appropriate alternative fuel
is available in the area in which the vehicle is located or operated.
10 CFR 490.306, consistent with section 501(a)(4) of EPAct 1992,
provides that acquired AFVs ``shall be operated solely on alternative
fuels, except when these vehicles are operating in an area where the
appropriate alternative fuel is unavailable.'' DOE has found that
acquisition credits for AFVs, which serve to get vehicles on the road,
are valuable inasmuch as they spur demand not only for the vehicles
but, just as importantly, for the alternative fuel. If the alternative
fuel becomes available, however, section 490.306 requires the fleet to
use the fuel in the acquired AFV.
DOE reminds alternative fuel provider fleets that the operating
requirement in 10 CFR 490.306 is a continuous one, and encourages
fleets to review on a regular basis the availability of alternative
fuels in their AFV operating areas, for example through DOE's
Alternative Fueling Station Locator, which is available at http://www.afdc.energy.gov/afdc/locator/stations/, and to contact their local
Clean Cities coalitions (see http://www.afdc.energy.gov/cleancities/progs/coalition_locations.php) for the latest information on
alternative fuel availability.
Finally, in the context of this issue and exemption requests, DOE
reiterates that today's NOPR would increase the number of creditable
actions under the AFTP and, consequently, expand the range of
compliance options available to all covered fleets. In particular, as
discussed earlier, credit would be allocated for the acquisition by
fleets of non-AFV HEVs, among other vehicles. With respect to such
HEVs, DOE notes both that the vehicles and their fuel (i.e., gasoline)
are widely available throughout the country. For this reason, DOE
intends to adopt an approach to the granting of exemptions that is
similar to DOE's longstanding policy on biodiesel. Under that policy,
unless a covered fleet seeking exemptions either indicates in its
exemption request that it does not own or operate any or a sufficient
number of medium- or heavy-duty diesel vehicles or demonstrates that
biodiesel is unavailable to it, DOE limits the number of exemptions
granted to no more than one-half of the fleet's AFV-acquisition
requirements, inasmuch as biodiesel fuel use credits may account for up
to 50% of those annual requirements (10 CFR Sec. 490.705(b)). Because
non-AFV HEVs are widely available, DOE would therefore also expect a
covered fleet seeking exemptions under these proposed regulations to
demonstrate in its exemption request why it was unable to acquire such
HEVs and therefore meet at least 50% of its AFV-acquisition
requirements with such vehicles (based on the \1/2\ credit allocated
for each HEV).\39\ DOE would limit the number of exemptions granted
based on a shortfall of HEV purchases, unless the fleet shows that HEVs
were not available in the light duty vehicle type needed by the fleet.
---------------------------------------------------------------------------
\39\ Note that a covered fleet could potentially meet 100% of
its AFV-acquisition requirements through a combination of non-AFV
HEV purchases and biodiesel fuel use credits. As noted earlier in
this proposed rule, like biodiesel purchases, light duty HEV
purchases would earn credits even if a fleet has not yet met its AFV
acquisition requirements.
---------------------------------------------------------------------------
VI. Proposed Compliance
A. Credit Values
The approach that DOE is proposing today allocates less than one
credit to certain vehicle types, and whole number values of credits for
investments in alternative fuel infrastructure, alternative fuel
nonroad equipment, and relevant emerging
[[Page 67306]]
technologies. DOE also is proposing that when fleets report to DOE the
total credits they have earned in a model year, they should total the
credits, including all fractional credits earned for vehicle
acquisitions, and round to the nearest whole number. In rounding to the
nearest whole number, fractions greater than or equal to one half (0.5)
should be rounded up and fractions less than one half should be rounded
down. For example, DOE would approve 14 credits for a fleet that
submits appropriate documentation supporting its acquisition of AFVs
and non-AFVs that total 13\1/2\ or 13\3/4\ credits. Similarly, DOE
would approve 13 credits for a fleet that submits appropriate
documentation supporting its acquisition of AFVs and non-AFVs that
total 13\1/4\ credits. This rounding approach to fractional credits is
consistent with how fleets already round for purposes of calculating
their AFV-acquisition requirements.
B. Reporting
As with the existing AFTP, fleet compliance reporting may be
accomplished through the Internet. Over the past several years,
approximately 75 percent of reporting fleets have consistently
submitted their compliance information to DOE through the available
Internet online reporting system. Reporting compliance information
online serves several purposes. First, reporting is immediate. Second,
filing the information online reduces the potential for the
introduction of errors through entry and transcription of compliance
information. Third, reporting online is less burdensome and a more
efficient use of both fleet and DOE resources.
VII. Opportunity for Public Comment
A. Participation in Rulemaking
Interested persons are invited to participate in this proceeding by
submitting written data, views, or comments with respect to the
subjects and DOE proposals set forth in this notice. DOE encourages the
maximum level of public participation possible in this proceeding.
Individual consumers, representatives of consumer groups,
manufacturers, associations, coalitions, alternative fuel providers,
States or other government entities, and others are urged to submit
written comments on the proposal. Whenever applicable, full supporting
rationale, data and detailed analyses should also be submitted.
B. Written Comment Procedures
Written comments (eight copies) should be identified on the outside
of the envelope, and on the comments themselves, with the designation:
``Alternative Fuel Transportation Program: Alternative Fuel
Transportation Program; Alternative Fueled Vehicle Credit Program
(Subpart F) Modification,'' NOPR, RIN 1904-AB81, and must be received
by the date specified at the beginning of this notice. In the event any
person wishing to submit written comments cannot provide eight copies,
alternative arrangements can be made in advance by calling Mr. Dana
O'Hara at (202) 586-8063. Additionally, DOE would appreciate an
electronic copy of the comments to the extent possible. Electronic
copies should be emailed to [email protected]. DOE is
currently using Microsoft Word.
Before taking final action on today's proposal, DOE will consider
all comments and other relevant information received on or before the
date specified at the beginning of this NOPR. All comments submitted
will be made available in the electronic docket set up for this
rulemaking. Therefore, no information desired to be kept confidential
should be submitted to the docket. This docket will be available via
the DOE EDOCKET through http://www.regulations.gov, which may be
located using key words or the above noted docket number.
VIII. Regulatory Review
A. Review Under Executive Order 12866
Today's proposed rule has been determined not to be a ``significant
regulatory action'' under section 3(f) of Executive Order 12866,
``Regulatory Planning and Review,'' 58 FR 51735 (October 4, 1993).
Accordingly, this action was not subject to review under that Executive
Order by the Office of Information and Regulatory Affairs (OIRA) of the
Office of Management and Budget (OMB).
B. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA; 5 U.S.C. 601 et seq.) requires
the preparation of an initial regulatory flexibility analysis for any
rule that by law must be proposed for public comment, unless the agency
certifies that the rule, if promulgated, will not have a significant
economic impact on a substantial number of small entities. As required
by Executive Order 13272, ``Proper Consideration of Small Entities in
Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE published
procedures and policies on February 19, 2003, to ensure that the
potential impacts of its rules on small entities are properly
considered during the rulemaking process. 68 FR 7990. These procedures
and policies are available at http://www.gc.doe.gov/documents/eo13272.pdf.
DOE has reviewed today's proposed rule under the provisions of the
RFA and the procedures and policies published on February 19, 2003. The
requirements in 10 CFR part 490 apply only to alternative fuel
providers and State government entities that own, operate, lease, or
otherwise control 50 or more non-excluded LDVs, at least 20 of which
are centrally fueled or capable of being centrally fueled and are used
primarily in a metropolitan statistical area (MSA) or consolidated MSA
with a 1980 Census population of more than 250,000. DOE has identified
certain fleet operators that may qualify as small entities under RFA.
Today's action, if finalized, however, would provide additional
compliance options and amend the administrative process for
demonstrating compliance, and therefore will not have a significant
economic impact on a substantial number of small entities. DOE's
certification and supporting statement of factual basis will be
provided to the Chief Counsel for Advocacy of the Small Business
Administration pursuant to 5 U.S.C. 605(b).
C. Review Under the Paperwork Reduction Act of 1995
Under the Paperwork Reduction Act of 1995 (PRA; 44 U.S.C. 3501 et
seq.) and the regulations implementing the PRA, 5 CFR 1320.1 et seq., a
``person'' is not required to respond to a ``collection of
information'' unless it displays a currently valid OMB control number.
This proposed rule would contain a collection of information that is
subject to review by OMB under the PRA. DOE plans to obtain
documentation to support the allocation of credits through use of the
AFTP's annual reporting form, DOE/FCVT/101, Standard Compliance
Reporting Spreadsheet. OMB Control Number 1910-5101 is currently valid
and assigned to the AFTP's annual report(s). As part of this proposed
rule, DOE is proposing to collect additional information regarding
investments in refueling infrastructure, alternative fuel non-road
equipment, and emerging technology, as well as efforts made to procure
credits on the credit market.
Proposed Sec. 490.508 (``Credit activity reporting requirements'')
contain information collection requirements. DOE has submitted this
proposed
[[Page 67307]]
collection of information to the Office of Management and Budget for
approval pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.) and the procedures implementing that Act, 5 CFR 1320.1 et
seq. A person is not required to respond to a collection of information
unless it displays a currently valid OMB control number.
DOE estimates that all covered fleets may seek to earn credits for
acquiring electric drive vehicles, but that fewer fleets will seek to
earn credits for acquiring and deploying alternative fuel
infrastructure, alternative fuel nonroad equipment, and emerging
technology. DOE estimates that a State or covered person seeking
credits for both acquiring electric drive vehicles and for acquiring
and deploying alternative fuel infrastructure, alternative fuel nonroad
equipment, and emerging technology would expend 1 additional hour to
comply with the reporting requirements of EISA section 508. DOE
estimates the total annual costs to a State or covered person that
receives credits proposed under today's NOPR are negligible,
particularly given that the covered fleet is already submitting an
annual report to achieve compliance with Program requirements.
DOE estimates that approximately 10 to 30 fleets request exemptions
each model year. Under today's proposed rule, these fleets would have
to provide information in their annual reports regarding any efforts
they have made to purchase or trade for credits in the credit market.
DOE estimates that fleet in this instance would expend 1 additional
hour to comply with this requirement. DOE estimates that the total
annual costs to a state or covered person complying with this
requirement for the purpose of requesting an exemption under the
Program, as proposed under today's NOPR, are negligible, particularly
given that the covered fleet may already have attempted to acquire
credits from another covered fleet.
DOE invites public comment on: (1) Whether the proposed information
collection requirements are necessary for the performance of DOE's
functions, including whether the information will have practical
utility; (2) the accuracy of DOE's estimates of the burden of the
proposed information collection requirements; (3) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(4) ways to minimize the burden of the information collection
requirements on respondents. Comments should be addressed to the
Department of Energy Desk Officer, Office of Information and Regulatory
Affairs, OMB, 725 17th Street, NW., Washington, DC 20503. Persons
submitting comments to OMB also are requested to send a copy to the
contact person at the address given in the ADDRESSES section of this
notice of proposed rulemaking. Interested persons may obtain a copy of
the DOE's Paperwork Reduction Act Submission to OMB from the contact
person named in this notice of proposed rulemaking.
D. Review Under the National Environmental Policy Act
DOE has determined that this proposed rule is covered under the
Categorical Exclusion found in DOE's National Environmental Policy Act
regulations at paragraph A5 of Appendix A to Subpart D, 10 CFR part
1021, which applies to any rulemaking amending an existing rule or
regulation that does not change the environmental effect of the rule or
regulation being amended. Under this proposed rule, covered fleets
would be able to earn credits for the acquisition of specified electric
drive vehicles and for investments in alternative fuel infrastructure,
nonroad equipment, and relevant emerging technologies, activities for
which they may not earn credits under the existing AFTP. The proposed
rule has been structured to ensure that the petroleum reductions
achieved by the AFTP in the future would be equivalent to those
achieved in past years. Because the proposed rule would not change the
environmental effect of compliance with 10 CFR part 490, neither an
environmental assessment nor an environmental impact statement is
required.
E. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of Executive Order 12988,
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on
Federal agencies the general duty to adhere to the following
requirements: (1) Eliminate drafting errors and ambiguity; (2) write
regulations to minimize litigation; and (3) provide a clear legal
standard for affected conduct rather than a general standard and
promote simplification and burden reduction. Section 3(b) of Executive
Order 12988 specifically requires that Federal agencies make every
reasonable effort to ensure that the regulation: (1) Clearly specifies
the preemptive effect, if any; (2) clearly specifies any effect on
existing Federal law or regulation; (3) provides a clear legal standard
for affected conduct while promoting simplification and burden
reduction; (4) specifies the retroactive effect, if any; (5) adequately
defines key terms; and (6) addresses other important issues affecting
clarity and general draftsmanship under any guidelines issued by the
Attorney General. Section 3(c) of Executive Order 12988 requires
Federal agencies to review regulations in light of the applicable
standards in sections 3(a) and 3(b) to determine whether those
standards are met or it is unreasonable to meet one or more of them.
DOE has completed the required review and determined that, to the
extent permitted by law, this proposed rule meets the relevant
standards of Executive Order 12988.
F. Review Under Executive Order 13132
Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 10,
1999), imposes certain requirements on agencies formulating and
implementing policies or regulations that preempt State law or that
have federalism implications. Agencies are required to examine the
constitutional and statutory authority supporting any action that would
limit the policymaking discretion of the States and carefully assess
the necessity for such actions. DOE has examined this proposed rule and
determined that it would not preempt State law and would not have a
substantial direct effect on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government. Therefore,
no further action is required by Executive Order 13132.
G. Review Under the Unfunded Mandates Reform Act of 1995
DOE reviewed this proposed rule under Title II of the Unfunded
Mandates Reform Act of 1995 (UMRA; Pub. L. 104-4), which requires each
Federal agency to assess the effects of its regulatory actions on
State, local, and tribal governments and the private sector. For a
proposed regulatory action likely to result in the promulgation of a
rule that includes a Federal mandate that may result in the expenditure
by State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more in any one year (adjusted
annually for inflation), section 202 of UMRA requires the agency to
prepare a written statement assessing the resulting costs, benefits,
and other effects of the rule on the national economy (2 U.S.C. 1532(a)
and (b)). UMRA also requires a Federal agency to develop an effective
process to permit meaningful and timely input by elected officers of
State, local, and tribal governments on any proposal containing a
``significant Federal
[[Page 67308]]
intergovernmental mandate,'' and requires an agency to develop a plan
for providing potentially affected small governments with notice and an
opportunity for timely input prior to the establishment of any
regulatory requirements that might significantly or uniquely affect
small governments (2 U.S.C. 1533 and 1534). On March 18, 1997, DOE
published a statement of policy on its process for intergovernmental
consultation under UMRA (62 FR 12820) (also available at http://www.gc.doe.gov).
Today's proposed rule provides additional compliance options under
10 CFR Part 490 by expanding credits under the existing AFTP, and
therefore contains neither an intergovernmental mandate nor a private
sector mandate that may result in the expenditure by State, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more in any year. Accordingly, no assessment or analysis is
required under UMRA.
H. Review Under the Treasury and General Government Appropriations Act,
1999
Section 654 of the Treasury and General Government Appropriations
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family
Policymaking Assessment for any proposed rule that may affect family
well-being. This proposed rule would not have any impact on the
autonomy or integrity of the family as an institution. Accordingly, DOE
has concluded that it is not necessary to prepare a Family Policymaking
Assessment.
I. Review Under the Treasury and General Government Appropriations Act,
2001
The Treasury and General Government Appropriations Act, 2001 (44
U.S.C. 3516 note) provides for agencies to review most disseminations
of information to the public under guidelines established by each
agency pursuant to general guidelines issued by OMB. OMB's guidelines
were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines
were published at 67 FR 62446 (October 7, 2002). DOE has reviewed
today's proposed rule under the OMB and DOE guidelines, and has
concluded that it is consistent with applicable policies in those
guidelines.
J. Review Under Executive Order 13211
Executive Order 13211, ``Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355
(May 22, 2001), requires Federal agencies to prepare and submit to OIRA
a Statement of Energy Effects for any proposed significant energy
action. A ``significant energy action'' is defined as any action by an
agency that promulgates or is expected to lead to the promulgation of a
final rule or regulation, and that: (1) Is a significant regulatory
action under Executive Order 12866, or any successor order; and (2) is
likely to have a significant adverse effect on the supply,
distribution, or use of energy; or (3) is designated by the
Administrator of OIRA as a significant energy action. The Statement of
Energy Effects must discuss any adverse effects on energy supply,
distribution, or use should the proposal be implemented, and reasonable
alternatives to the action and their expected benefits on energy
supply, distribution, and use.
As discussed in section VIII.A above, this proposed rule has been
determined not to be a ``significant regulatory action'' under
Executive Order 12866. In addition, the proposal is not likely to have
a significant adverse effect on the supply, distribution, or use of
energy and, therefore, is not a significant energy action. Nor has OIRA
designated this action as a significant energy action. Accordingly, DOE
has not prepared a Statement of Energy Effects.
List of Subjects in 10 CFR Part 490
Administrative practice and procedure, Energy conservation, Fuel
economy, Gasoline, Motor vehicles, Natural gas, Penalties, Petroleum,
Reporting and recordkeeping requirements.
Issued in Washington, DC, on October 5, 2011.
Henry C. Kelly,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.
For the reasons set forth in the preamble, the Department of Energy
is proposing to amend Part 490 of Title 10, Chapter II of the Code of
Federal Regulations as set forth below:
PART 490--ALTERNATIVE FUEL TRANSPORTATION PROGRAM
1. The authority citation for Part 490 continues to read as
follows:
Authority: 42 U.S.C. 7191 et seq.; 42 U.S.C. 13201, 13211,
13220, 13251 et seq.
2. Section 490.2 is amended by:
a. Adding ``, including liquid fuels domestically produced from
natural gas'' after the words ``natural gas'' in the definition of
``Alternative Fuel''.
b. Removing the definitions of ``Electric-hybrid Vehicle,''
``Electric Motor Vehicle,'' and ``Flexible Fuel Vehicle''.
c. Revising the definitions of ``Alternative Fueled Vehicle,''
``Automobile,'' ``Capable of Being Centrally Fueled,'' ``Dedicated
Vehicle,'' ``Dual Fueled Vehicle,'' and ``Fleet''.
d. Adding the definition of ``Work Truck'' in alphabetical order.
The additions and revisions read as follows:
Sec. 490.2 Definitions.
* * * * *
Alternative Fueled Vehicle means a dedicated vehicle or a dual
fueled vehicle, as those terms are defined in this section.
* * * * *
Automobile means a 4-wheeled vehicle that is propelled by
conventional fuel, or by alternative fuel, manufactured primarily for
use on public streets, roads, and highways and having a gross vehicle
weight rating of less than 10,000 pounds, except:
(1) A vehicle operated only on a rail line;
(2) A vehicle manufactured in different stages by two or more
original equipment manufacturers, if no intermediate or final-stage
original equipment manufacturer of that vehicle manufactures more than
10,000 multi-stage vehicles per year; or
(3) A work truck, as that term is defined in this section.
Capable of Being Centrally Fueled means that a vehicle can be
refueled at least 75 percent of the time at a location that is owned,
operated, or controlled by the fleet or covered person, or is under
contract with the fleet or covered person for refueling purposes.
Dedicated Vehicle means--
(1) An automobile that operates solely on one or more alternative
fuels; or
(2) A motor vehicle, other than an automobile, that operates solely
on one or more alternative fuels.
Dual Fueled Vehicle means--
(1) An automobile that meets the criteria for a dual fueled
automobile as set forth in 49 U.S.C. 32901(a)(9); or
(2) A motor vehicle, other than an automobile, that is capable of
operating on alternative fuel and on gasoline or diesel.
* * * * *
Fleet means a group of 20 or more light duty motor vehicles,
excluding certain categories of vehicles as provided by Sec. 490.3 of
this part, used primarily in a metropolitan statistical area or
consolidated metropolitan statistical area, as established by the
Bureau of the Census as of December 31, 1992, with a 1980 Census
population of more than 250,000 (listed in Appendix A to this Subpart),
that are centrally
[[Page 67309]]
fueled or capable of being centrally fueled, and are owned, operated,
leased, or otherwise controlled--
(1) By a person who owns, operates, leases, or otherwise controls
50 or more light duty motor vehicles within the United States and its
possessions and territories;
(2) By any person who controls such person;
(3) By any person controlled by such person; or
(4) By any person under common control with such person.
* * * * *
Work Truck means a vehicle having a gross vehicle weight rating of
more than 8,500 and less than or equal to 10,000 pounds that is not a
medium-duty passenger vehicle as that term is defined in 40 CFR
86.1803-01.
3. Section 490.3, paragraph (e), is revised to read as follows:
Sec. 490.3 Excluded vehicles.
* * * * *
(e) Emergency motor vehicles including vehicles directly used in
the emergency repair of transmission lines and in the restoration of
electricity service following power outages;
* * * * *
Subpart C--[Amended]
4. Section 490.202, paragraph (a), is revised to read as follows:
Sec. 490.202 Acquisitions satisfying the mandate.
* * * * *
(a) The purchase or lease of an Original Equipment Manufacturer
light duty vehicle (regardless of the model year of manufacture) that
is an alternative fueled vehicle and that was not previously under the
control of the State or State agency;
* * * * *
5. Section 490.204 is amended by:
a. Revising paragraph (b);
b. Redesignating paragraphs (g) through (h) as paragraphs (h)
through (i); and
c. Adding a new paragraph (g).
The revision and addition read as follows:
Sec. 490.204 Process for granting exemptions.
* * * * *
(b) Requests for exemption must be accompanied by supporting
documentation, must be submitted no earlier than September 1 following
the model year for which the exemption is sought and no later than
January 31 following the model year for which the exemption is sought,
and will only be considered following submission of the annual report
under Sec. 490.205 of this part. A fleet may not request exemptions
within 90 days of selling any or all of its banked credits. Any such
exemption request will be denied.
* * * * *
(g) If DOE, in response to a request for exemption, seeks
clarification or additional information from the State, such
clarification or additional information must be submitted to DOE in
accordance with paragraph (f) of this section within 30 days of DOE's
inquiry. In the event a State does not comply with this timeframe, DOE
will proceed under paragraph (h) of this section based on the
documentation provided to date.
* * * * *
6. Section 490.205 is amended by:
a. Revising paragraph (b)(5)(iv); and
b. Adding a new paragraph (b)(5)(vi).
The revision and addition read as follows:
Sec. 490.205 Reporting requirements.
* * * * *
(b) * * *
(5) * * *
(iv) Dedicated vehicle or dual fueled vehicle;
* * * * *
(vi) A description of all efforts made to acquire alternative
fueled vehicle credits; and
* * * * *
Subpart D--[Amended]
Sec. 490.302 [Amended]
7. Section 490.302 is amended by removing the reference ``section
490.308'' in paragraph (e) and adding in its place `` Sec. 490.307.''
8. Section 490.305, paragraph (a), is revised to read as follows:
Sec. 490.305 Acquisitions satisfying the mandate.
(a) The purchase or lease of an Original Equipment Manufacturer
light duty vehicle (regardless of the model year of manufacture) that
is an alternative fueled vehicle and that was not previously under the
control of the covered person;
* * * * *
Sec. 490.307 [Removed]
9. Section 490.307 is removed.
Sec. 490.308 [Redesignated as Sec. 490.307]
10. Section 490.308 is redesignated as Sec. 490.307 and newly
redesignated Sec. 490.307 is amended by:
a. Adding ``(1)'' after the letter ``(a)'' in paragraph (a);
b. Adding new paragraphs (a)(2), and (c)(4); and
c. Removing, in paragraph (f), the word ``State's'' and adding in
its place, ``covered person's''.
The additions read as follows:
Sec. 490.307 Process for granting exemptions.
(a)(1) * * *
(2) Requests for exemption must be accompanied by supporting
documentation, must be submitted no earlier than September 1 following
the model year for which the exemption is sought and no later than
January 31 following the model year for which the exemption is sought,
and will only be considered following submission of the annual report
under Sec. 490.308 of this part. A fleet may not request exemptions
within 90 days of selling any or all of its banked credits. Any such
exemption request will be denied.
* * * * *
(c) * * *
(4) If DOE, in response to a request for exemption, seeks
clarification or additional information from the covered person, such
clarification or additional information must be submitted to DOE in
accordance with paragraph (a)(1) of this section within 30 days of
DOE's inquiry. In the event a covered person does not comply with this
timeframe, DOE will proceed under paragraph (f) of this section based
on the documentation provided to date.
* * * * *
Sec. 490.309 [Redesignated as Sec. 490.308]
11. Section 490.309 is redesignated as Sec. 490.308, and newly
redesignated Sec. 490.308 is amended by:
a. Removing ``or section 490.307,'' from paragraph (a); and
b. Revising paragraph (b)(5)(iv);
c. Adding a new paragraph (b)(5)(vi).
The revision and addition read as follows:
Sec. 490.308 Annual reporting requirements.
* * * * *
(b) * * *
(5) * * *
(iv) Dedicated vehicle or dual fueled vehicle;
* * * * *
(vi) A description of all efforts made to acquire alternative
fueled vehicle credits; and
* * * * *
Sec. 490.310 [Redesignated as Sec. 490.309]
12. Section 490.310 is redesignated as Sec. 490.309.
Subpart F--[Amended]
13. Section 490.500 is revised to read as follows:
[[Page 67310]]
Sec. 490.500 Purpose and scope.
This subpart implements the statutory requirements of section 508
of the Act, which provides for the allocation of credits to fleets or
covered persons that:
(a) Acquire alternative fueled vehicles in excess of the number
they are required to acquire under this part or obtain alternative
fueled vehicles before the model year when they are required to do so
under this part;
(b) Acquire certain other vehicles; or
(c) Invest in qualified alternative fuel infrastructure or non-road
equipment or an emerging technology.
14. Section 490.501 is revised to read as follows:
Sec. 490.501 Definitions.
In addition to the definitions found in Sec. 490.2 of this part,
the following definitions apply to this subpart:
Alternative Fuel Infrastructure means property that is for:
(1) The storage and dispensing of an alternative fuel into the fuel
tank of a motor vehicle propelled by such fuel; or
(2) The recharging of motor vehicles propelled by electricity.
Alternative Fuel Non-road Equipment means mobile, non-road
equipment that operates on alternative fuel (including but not limited
to forklifts, tractors, bulldozers, backhoes, front-end loaders, and
rollers/compactors).
Emerging Technology means a pre-production or pre-commercially
available version of a fuel cell electric vehicle, hybrid electric
vehicle, medium- or heavy-duty electric vehicle, neighborhood electric
vehicle, or plug-in electric drive vehicle, as such vehicles are
defined in this section.
Fuel Cell Electric Vehicle means a motor vehicle or non-road
vehicle that uses a fuel cell, as that term is defined in section 803
of the Spark M. Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152(1)).
Hybrid Electric Vehicle means a new qualified hybrid motor vehicle
as defined in section 30B(d)(3) of the Internal Revenue Code of 1986
(26 U.S.C. 30B(d)(3)).
Medium- or Heavy-Duty Electric Vehicle means an electric, hybrid
electric, or plug-in hybrid electric vehicle with a gross vehicle
weight rating of more than 8,500 pounds.
Medium- or Heavy-Duty Fuel Cell Electric Vehicle means a fuel cell
electric vehicle with a gross vehicle weight rating of more than 8,500
pounds.
Neighborhood Electric Vehicle means a 4-wheeled on-road or non-road
vehicle that--
(1) Has a top attainable speed in 1 mile of more than 20 mph and
not more than 25 mph on a paved level surface; and
(2) Is propelled by an electric motor and an on-board, rechargeable
energy storage system that is rechargeable using an off-board source of
electricity.
Plug-in Electric Drive Vehicle means a vehicle that--
(1) Draws motive power from a battery with a capacity of at least 4
kilowatt-hours;
(2) Can be recharged from an external source of electricity for
motive power;
(3) Is a light-, medium-, or heavy-duty motor vehicle or non-road
vehicle, as those terms are defined in section 216 of the Clean Air Act
(42 U.S.C. 7550); and
(4) In the case of a plug-in hybrid electric vehicle, also includes
an on-board method of charging the energy storage system and/or
providing motive power.
15. Section 490.502 is revised to read as follows:
Sec. 490.502 Applicability.
This subpart applies to all fleets and covered persons that are
required to acquire alternative fueled vehicles by this part.
16. Section 490.503 is revised to read as follows:
Sec. 490.503 Creditable actions.
A fleet or covered person becomes entitled to alternative fueled
vehicle credits, at the allocation levels specified in Sec. 490.504 of
this part, by:
(a)(1) Acquiring light duty alternative fueled vehicles, including
those in excluded categories under Sec. 490.3 of this part, in excess
of the number of light duty alternative fueled vehicles that the fleet
or covered person is required to acquire in a model year when
acquisition requirements apply under Sec. 490.201 or Sec. 490.302 of
this part;
(2) Acquiring alternative fueled vehicles, including those in
excluded categories under Sec. 490.3 of this part, with a gross
vehicle weight rating of more than 8,500 pounds, in excess of the
number of light duty alternative fueled vehicles that the fleet or
covered person is required to acquire in a model year when acquisition
requirements apply under Sec. 490.201 or Sec. 490.302 of this part;
(3) Acquiring any of the following vehicles in excess of the number
of light duty alternative fueled vehicles that the fleet or covered
person is required to acquire in a model year when acquisition
requirements apply under Sec. 490.201 or Sec. 490.302 of this part:
(i) Medium- or heavy-duty fuel cell electric vehicles that are not
alternative fueled vehicles; or
(ii) Medium- or heavy-duty electric vehicles that are not
alternative fueled vehicles;
(b) Acquiring alternative fueled vehicles, including those in
excluded categories under Sec. 490.3 of this part and those with a
gross vehicle weight rating of more than 8,500 pounds, in model years
before the model year when that fleet or covered person is first
required to acquire light duty alternative fueled vehicles under Sec.
490.201 or Sec. 490.302 of this part;
(c) Investing, in a model year when acquisition requirements apply
under Sec. 490.201 or Sec. 490.302 of this part, at least $25,000 in
an emerging technology or alternative fuel infrastructure or
alternative fuel non-road equipment, provided that:
(1) The technology, infrastructure, or equipment is put into
operation during the year in which the fleet has applied for credits;
(2) In the case of an emerging technology, the amount invested by
the fleet or covered person is not the basis for credit under
paragraphs (a), (b), or (d) of this section; and
(3) In the case of alternative fuel non-road equipment, the
equipment is being operated on alternative fuel, within the constraints
of best practices and seasonal fuel availability; or
(d) Acquiring, in a model year when acquisition requirements apply
under Sec. 490.201 or Sec. 490.302 of this part, any of the following
vehicles, including those in excluded categories under Sec. 490.3 of
this part:
(1) A hybrid electric vehicle that is a light duty motor vehicle,
but that is not an alternative fueled vehicle;
(2) A plug-in electric drive vehicle that is a light duty motor
vehicle, but that is not an alternative fueled vehicle;
(3) A fuel cell electric vehicle that is a light duty motor
vehicle, but that is not an alternative fueled vehicle; or
(4) A neighborhood electric vehicle.
(e) For purposes of this subpart, a fleet or covered person that
acquired a motor vehicle on or after October 24, 1992, and converted it
to an alternative fueled vehicle before April 15, 1996, shall be
entitled to a credit for that vehicle notwithstanding the time limit on
conversions established by Sec. Sec. 490.202(a)(3) and 490.305(a)(3)
of this part.
17. Section 490.504 is revised to read as follows:
Sec. 490.504 Credit allocation.
(a) Based on annual credit activity report information, as
described in Sec. 490.508 of this subpart, DOE shall allocate:
(1) One alternative fueled vehicle credit for each alternative
fueled
[[Page 67311]]
vehicle, regardless of the vehicle's gross vehicle weight rating, that
a fleet or covered person acquires in excess of the number of light
duty alternative fueled vehicles that the fleet or covered person is
required to acquire in a model year when acquisition requirements apply
under Sec. 490.201 or Sec. 490.302 of this part; and
(2) One-half of an alternative fueled vehicle credit for each
medium- or heavy-duty fuel cell electric vehicle that is not an
alternative fueled vehicle and each medium- or heavy-duty electric
vehicle that is not an alternative fueled vehicle that a fleet or
covered person acquires in excess of the number of light duty
alternative fueled vehicles that the fleet or covered person is
required to acquire in a model year when acquisition requirements apply
under Sec. 490.201 or Sec. 490.302 of this part.
(b) If an alternative fueled vehicle, regardless of the vehicle's
gross vehicle weight rating, is acquired by a fleet or covered person
in a model year before the first model year that fleet or covered
person is required to acquire light duty alternative fueled vehicles by
this part, as reported in the annual credit activity report, DOE shall
allocate one credit per alternative fueled vehicle for each year the
alternative fueled vehicle is acquired before the model year when
acquisition requirements apply.
(c) DOE shall allocate credits to fleets and covered persons under
paragraph (b) of this section only for alternative fueled vehicles
acquired on or after October 24, 1992.
(d) Based on annual credit activity report information, as
described in Sec. 490.508 of this subpart, DOE shall allocate
alternative fueled vehicle credit in the amount set forth below for
each of the following vehicles that a fleet or covered person acquires
in a model year when acquisition requirements apply under Sec. 490.201
or Sec. 490.302 of this part:
(1) A hybrid electric vehicle that is a light duty motor vehicle,
but that is not an alternative fueled vehicle--\1/2\ credit;
(2) A plug-in electric drive vehicle that is a light duty motor
vehicle, but that is not an alternative fueled vehicle--\1/2\ credit;
(3) A fuel cell electric vehicle that is a light duty motor
vehicle, but that is not an alternative fueled vehicle--\1/2\ credit;
and
(4) A neighborhood electric vehicle--\1/4\ credit.
(e) Based on annual credit activity report information, as
described in Sec. 490.508 of this subpart, DOE shall allocate one
alternative fueled vehicle credit for every $25,000 that a fleet or
covered person invests, in a model year when acquisition requirements
apply under Sec. 490.201 or Sec. 490.302 of this part, in:
(1) Alternative fuel infrastructure that is:
(i) Publicly accessible, provided that the maximum number of
credits under this paragraph shall not exceed ten for the model year
and the alternative fuel infrastructure became operational in the same
model year, and provided further that the total number of credits
allocated under this paragraph (e)(1)(i) and paragraph (e)(1)(ii) of
this section do not exceed ten in a given model year; or
(ii) Not publicly accessible, provided that the maximum number of
credits under this paragraph shall not exceed five for the model year
and the alternative fuel infrastructure became operational in the same
model year, and provided further that the total number of credits
allocated under this paragraph (e)(1)(ii) and paragraph (e)(1)(i) of
this section do not exceed ten in a given model year;
(2) Alternative fuel non-road equipment, provided that the maximum
number of credits under this paragraph (e) shall not exceed five for
the model year, and provided further that the equipment is being
operated on alternative fuel; and
(3) An emerging technology, provided that the maximum number of
credits under this paragraph (e) shall not exceed five for the model
year, and provided further that the amount for which credit is
allocated under this paragraph has not been the basis for credit
allocation under paragraphs (a), (b), or (d) of this section.
(f) A fleet or covered person may aggregate the amount of money
invested in a model year on alternative fuel infrastructure,
alternative fuel non-road equipment, and emerging technology such that
funds from multiple categories may be used to achieve the $25,000
threshold for the purpose of earning an alternative fueled vehicle
credit, so long as no funds are aggregated from a category for which
the fleet has already been allocated the maximum number of credits
allowed for that category, as set forth in paragraph (e) of this
section.
18. Section 490.505 is revised to read as follows:
Sec. 490.505 Use of alternative fueled vehicle credits.
(a) At the request of a fleet or covered person in an annual report
under this part, DOE shall treat each credit as the acquisition of an
alternative fueled vehicle that the fleet or covered person is required
to acquire under this part. Each credit shall count as the acquisition
of one alternative fueled vehicle in the model year for which the fleet
or covered person requests the credit to be applied.
(b) If an annual report shows that the fleet or covered person did
not meet its acquisition requirements under Sec. 490.201 or Sec.
490.302 of this part, and the fleet or covered person has credits in
its credit account under Sec. 490.506, DOE will apply the number of
credits needed from those available to offset the shortfall. Each
credit shall count as the acquisition of one alternative fueled vehicle
in the model year of the subject annual report.
19. Section 490.506 is revised to read as follows:
Sec. 490.506 Credit accounts.
(a) DOE shall establish a credit account for each fleet or covered
person who obtains an alternative fueled vehicle credit.
(b) DOE shall send to each fleet and covered person an annual
credit account balance statement after the receipt of its credit
activity report under Sec. 490.508.
20. Section 490.507 is revised to read as follows:
Sec. 490.507 Alternative fueled vehicle credit transfers.
(a) Any fleet or covered person that is required to acquire
alternative fueled vehicles may transfer an alternative fueled vehicle
credit to--
(1) A fleet that is required to acquire alternative fueled
vehicles; or
(2) A covered person subject to the requirements of this part, if
the transferor provides certification to the covered person that the
credit represents a vehicle that operates solely on alternative fuel.
(b) Proof of credit transfer may be on a form provided by DOE, or
otherwise in writing, and must include dated signatures of the
transferor and transferee. The proof should be received by DOE within
30 days of the transfer date at the Office of Energy Efficiency and
Renewable Energy, U.S. Department of Energy, EE-2G, 1000 Independence
Avenue SW., Washington, DC 20585-0121, or such other address as DOE
publishes in the Federal Register.
21. Section 490.508 is revised to read as follows:
Sec. 490.508 Credit activity reporting requirements.
(a) A covered person or fleet applying for allocation of
alternative fueled vehicle credits must submit a credit activity report
by the December 31 after the close of a model year to the Office of
Energy Efficiency and Renewable Energy, U.S. Department of Energy, EE-
2G, 1000 Independence Avenue SW.,
[[Page 67312]]
Washington, DC 20585-0121, or such other address as DOE may publish in
the Federal Register.
(b) This report must include the following information:
(1) Number of alternative fueled vehicle credits requested for:
(i) Light duty alternative fueled vehicles acquired in excess of
the required acquisition number;
(ii) Alternative fueled vehicles with a gross vehicle weight rating
of more than 8,500 pounds acquired in excess of the required
acquisition number;
(iii) Medium- or heavy-duty fuel cell electric vehicles that are
not alternative fueled vehicles, acquired in excess of the required
acquisition number;
(iv) Medium- or heavy-duty electric vehicles that are not
alternative fueled vehicles, acquired in excess of the required
acquisition number;
(v) Light duty alternative fueled vehicles acquired in model years
before the first model year the fleet or covered person is required to
acquire light duty alternative fueled vehicles by this part;
(vi) Alternative fueled vehicles with a gross vehicle weight rating
of more than 8,500 pounds acquired before the first model year the
fleet or covered person is required to acquire light duty alternative
fueled vehicles by this part;
(vii) The acquisition of light duty hybrid electric vehicles that
are not alternative fueled vehicles;
(viii) The acquisition of light duty plug-in electric drive
vehicles that are not alternative fueled vehicles;
(ix) The acquisition of light duty fuel cell electric vehicles that
are not alternative fueled vehicles; and
(x) The acquisition of neighborhood electric vehicles.
(2) Number of alternative fueled vehicle credits, in whole number
values, requested for each of the following:
(i) Investment in alternative fuel infrastructure;
(ii) Investment in alternative fuel non-road equipment; and
(iii) Investment in an emerging technology.
(3) For investment in alternative fuel infrastructure, supporting
documentation and a written statement, certified by a responsible
official of the fleet or covered person, indicating or providing:
(i) The model year or period in which the investment was made;
(ii) The amount of money invested by the fleet or covered person
and to whom the money was provided;
(iii) The physical location(s) (address and zip code) and a
detailed description of the alternative fuel infrastructure, including
the name and address of the construction/installation company (where
appropriate), whether the infrastructure is publicly accessible, and
the type(s) of alternative fuel offered; and
(iv) The date on which the alternative fuel infrastructure became
operational.
(4) For investment in alternative fuel non-road equipment,
supporting documentation and a written statement, certified by a
responsible official of the fleet or covered person, indicating or
providing:
(i) The model year or period in which the investment was made;
(ii) The amount of money invested by the fleet or covered person
and to whom the money was provided; and
(iii) A detailed description of the alternative fuel non-road
equipment, including the name and address of the manufacturer, the
type(s) of alternative fuel on which the equipment is capable of being
operated, a certification that the equipment is being operated on that
alternative fuel, and the date on which the fleet or covered person
purchased the equipment and the date on which it was put into
operation.
(5) For investment in an emerging technology, supporting
documentation and a written statement, certified by a responsible
official of the fleet or covered person, indicating or providing:
(i) The model year or period in which the investment was made;
(ii) The amount of money invested by the fleet or covered person
and to whom the money was provided;
(iii) A certification that the emerging technology's acquisition is
not included in paragraph (b)(1) of this section and the amount
invested is not included in paragraph (b)(3)(ii) or (b)(4)(ii) of this
section; and
(iv) A detailed description of the emerging technology, including
the name and address of the manufacturer and the date on which the
fleet or covered person purchased the emerging technology and the date
on which it was put it into operation.
(6) The total number of alternative fueled vehicle credits
requested by the fleet or covered person, calculated by adding the two
subtotals under paragraphs (b)(1) and (b)(2) of this section and then
rounding the aggregate figure to the nearest whole number; in rounding
to the nearest whole number, any fraction equal to or greater than one
half shall be rounded up and any fraction less than one half shall be
rounded down.
(7) Purchases of alternative fueled vehicle credits:
(i) Credit source; and
(ii) Date of purchase;
(8) Sales of alternative fueled vehicle credits:
(i) Credit purchaser; and
(ii) Date of sale.
Subpart I--[Amended]
22. Section 490.804, paragraph (c) is revised to read as follows:
Sec. 490.804 Eligible reductions in petroleum consumption.
* * * * *
(c) Rollover of excess petroleum reductions. (1) Upon approval by
DOE, petroleum fuel use reductions achieved by a fleet in excess of the
amount required for alternative compliance in a previous model year may
be applied towards the fleet's petroleum fuel use reduction requirement
under Sec. 490.803(a) of this part in another model year for which a
waiver is granted.
(2)(i) A fleet seeking to roll over for future use the petroleum
fuel use reductions that it achieved in excess of the amount required
for alternative compliance in a particular model year must make a
written request to DOE as part of the fleet's annual report required
under Sec. 490.807 of this part for the model year in which the
reductions were achieved.
(ii) A fleet seeking to apply, in a later model year for which a
waiver was granted, any excess petroleum fuel use reductions rolled
over pursuant to paragraph (c)(2)(i) of this section must make a
written request to DOE as part of the fleet's annual report required
for that model year under Sec. 490.807 of this part. The written
request must specify the amount of the rollover reductions (in GGE) the
fleet wishes to have applied and the total balance of rollover
reductions (in GGE) the fleet possesses.
(3) DOE will apply approved rollover reductions to a model year for
which a waiver was granted but the fleet's required reduction in
petroleum fuel use was not achieved only to the extent that additional
reductions attributable to motor vehicles were not reasonably
available.
* * * * *
23. Section 490.805 is amended by removing paragraph (b)(3) and
revising paragraph (b)(2) to read as follows:
Sec. 490.805 Application for waiver.
* * * * *
(b) * * *
(2) A complete waiver application must be received by DOE no later
than July 31 prior to the model year for which a waiver is sought.
* * * * *
[[Page 67313]]
24. Section 490.809 is revised to read as follows:
Sec. 490.809 Violations.
If a State or covered person that received a waiver under this
subpart fails to comply with the petroleum motor fuel reduction or
reporting requirements of this subpart, DOE will revoke the waiver and
may impose on the State or covered person a penalty under subpart G of
this part. A State or covered person whose waiver has been revoked by
DOE is precluded from requesting an exemption under Sec. 490.204 or
Sec. 490.307 of this part from the vehicle acquisition mandate for the
model year of the revoked waiver.
[FR Doc. 2011-26761 Filed 10-28-11; 8:45 am]
BILLING CODE 6450-01-P