[Federal Register Volume 59, Number 24 (Friday, February 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2093]


[[Page Unknown]]

[Federal Register: February 4, 1994]


                                                    VOL. 59, NO. 24

                                           Friday, February 4, 1994
=======================================================================

DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 474

[Docket No. EE-RM-94-101]

 

Electric and Hybrid Vehicle Research, Development, and 
Demonstration Program; Equivalent Petroleum-Based Fuel Economy 
Calculation

AGENCY: Department of Energy.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Department of Energy (DOE) is proposing to amend its 
Electric Vehicle Research and Development Program to provide new 
factors for calculating the equivalent petroleum-based fuel economy of 
electric vehicles. The equivalent petroleum-based fuel economy value is 
intended to be used in calculating the corporate average fuel economy 
pursuant to regulations prescribed by the Environmental Protection 
Agency. DOE is required to develop the procedure pursuant to section 
503(a)(3) of the Motor Vehicle Information and Cost Savings Act, as 
amended.

DATES: Written comments (6 copies) must be received by DOE on or before 
April 5, 1994. The public hearing will be held on March 23, 1994 at 
9:30 a.m. at the address listed below. Requests to speak at the hearing 
must be received by March 15, 1994.

ADDRESSES: Written comments (6 copies) and requests to speak at the 
hearing are to be submitted to: U.S. Department of Energy, Office of 
Transportation Technologies, EE-30, Ms. Sheila Perez, 1000 Independence 
Avenue SW., room 6B-094, Docket Number EE-RM-94-101, Washington, DC 
20585, (202) 586-6723.
    The public hearing will be held in room 1E-245, Forrestal Building, 
1000 Independence Avenue, SW., Washington, DC Please bring eight copies 
of the prepared oral testimony to the hearing. Copies of the hearing 
transcript and written comments received may be obtained or inspected 
at the DOE Freedom of Information Reading Room, room 1E-190, 1000 
Independence Avenue, SW., Washington, DC, 20585, (202) 586-6020, 9 
a.m.-4 p.m., Monday-Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: Rogelio Sullivan, U.S. Department of 
Energy, Office of Transportation Technologies, Electric and Hybrid 
Propulsion Division, Mail Stop EE-321, 1000 Independence Avenue, SW., 
Washington, DC 20585, (202) 586-8042.
    Eugene Margolis, Esq., U.S. Department of Energy, Office of General 
Counsel, GC-41, 1000 Independence Avenue, SW., Washington, DC 20585, 
(202) 586-9507.

SUPPLEMENTARY INFORMATION:

I. Background
II. Discussion
    A. Requirements of the Motor Vehicle Information and Cost 
Savings Act
    B. Test Procedures
    C. Calculation Procedures
    1. Driving Pattern Factor
    2. Electric Transmission Efficiency
    3. Accessory Factor
    4. Electricity Generation Efficiency and Relative Scarcity 
Factor
    5. Petroleum Equivalency Factor Calculation
    6. Alternative Measure of Relative Scarcity and Value
    D. Public Access to Information
III. Opportunities for Public Comment
    A. Written Comments
    B. Public Hearing
    1. Request to Speak Procedures
    2. Conduct of the Hearing
IV. Procedural Requirements
    A. Environmental Review
    B. Regulatory Review
    C. Regulatory Flexibility Act
    D. Federalism Review
    E. ``Takings'' Assessment Review
    F. Review Under Section 32 of the Federal Energy Administration 
Authorization Act
    G. Review Under Executive Order 12778

I. Background

    In an effort to conserve energy through improvements in the energy 
efficiency of motor vehicles, Congress in 1975 passed the Energy Policy 
and Conservation Act (Pub. L. 94-163). Title III of the Energy Policy 
and Conservation Act amended the Motor Vehicle Information and Cost 
Savings Act (15 U.S.C. 1901, et seq.) by mandating fuel economy 
standards for automobiles produced in, or imported into, the United 
States. This legislation, as amended, requires that every manufacturer 
or importer meet a specified corporate average fuel economy standard 
for the fleet of vehicles which the manufacturer produces or imports in 
any model year. Although electric vehicles are included under the 
definition of the term ``automobile'' in the Motor Vehicle Information 
and Cost Savings Act, they do not consume ``fuel'' as defined in the 
Motor Vehicle Information and Cost Savings Act. Therefore, calculation 
of an electric vehicle manufacturer's corporate average fuel economy is 
impossible without a petroleum equivalency factor term.
    On January 7, 1980, the President signed the Chrysler Corporation 
Loan Guarantee Act of 1979 (Pub. L. 96-185). Section 18 of the Chrysler 
Corporation Loan Guarantee Act of 1979 added a new paragraph (2) to 
section 13(c) of the Electric and Hybrid Vehicle Research, Development, 
and Demonstration Act of 1976 (Pub. L. 94-413). Part of the new section 
13(c) added subsection (a)(3) to section 503 of the Motor Vehicle 
Information and Cost Savings Act. That subsection directs the Secretary 
of Energy to determine equivalent petroleum-based fuel economy values 
for various classes of electric vehicles. The intent of the legislation 
is to provide an incentive for vehicle manufacturers to produce 
electric vehicles by including the expected high equivalent fuel 
economy of these vehicles in the corporate average fuel economy 
calculation and thereby to accelerate the early commercialization of 
electric vehicles.
    Section 18 of the Chrysler Corporation Loan Guarantee Act of 1979 
further amended the Electric and Hybrid Vehicle Research, Development 
and Demonstration Act of 1976 by adding a new paragraph (3) to section 
13(c) which directed the Secretary of Energy, in consultation with the 
Secretary of Transportation and the Administrator of the Environmental 
Protection Agency, to conduct a seven-year evaluation program of the 
inclusion of electric vehicles in the calculation of average fuel 
economy. In May 1980, pursuant to the requirements of section 503(a)(3) 
of the Motor Vehicle Information and Cost Savings Act, DOE proposed a 
method of calculating the equivalent petroleum-based fuel economy of 
electric vehicles. The rule was finalized in April 1981. The seven-year 
evaluation program was completed and the calculation of the annual 
petroleum equivalency factors was not extended past 1987. The 
equivalent petroleum-based fuel economy equation terms in this 
rulemaking change the way the electricity generation output, input and 
relative value factor terms are calculated. The updated equation 
incorporates off-peak electric vehicle charging and the relative 
scarcity of electricity generation fuel sources.
    Administrative responsibilities for the corporate average fuel 
economy program are assigned to the Department of Transportation and 
the Environmental Protection Agency under the Motor Vehicle Information 
and Cost Savings Act. The Secretary of Transportation is responsible 
for prescribing the corporate average fuel economy standard and 
enforcing the penalties for failure to meet these standards. The 
Administrator of the Environmental Protection Agency is responsible for 
calculating a manufacturer's corporate average fuel economy value. The 
Department of Energy is responsible for developing and promulgating the 
petroleum equivalency factor, the key component in the calculation of 
equivalent petroleum-based fuel economy for electric vehicles.

II. Discussion

A. Requirements of the Motor Vehicle Information and Cost Savings Act

    Section 503(a)(3) of the Motor Vehicle Information and Cost Savings 
Act (15 U.S.C. 2003(a)(3)) requires DOE to determine the equivalent 
petroleum-based fuel economy values for various classes of electric 
vehicles, taking into account the following parameters:
    (i) The approximate electric energy efficiency of the vehicles 
considering the vehicle type, mission, and weight;
    (ii) The national average electricity generation and transmission 
efficiencies;
    (iii) The need of the Nation to conserve all forms of energy, and 
the relative scarcity and value to the Nation of all fuel used to 
generate electricity; and
    (iv) The specific driving patterns of electric vehicles as compared 
with those of petroleum-fueled vehicles.
    Section 503(a)(3) also provides for revision of such values if 
necessary.
    Due to continued technology development and a strong interest in 
the corporate average fuel economy of electric vehicles from industry, 
DOE is proposing an updated method of calculating the petroleum 
equivalency factor. Unlike the current version of 10 CFR part 474 which 
required annual updating of the petroleum equivalency factor, the 
updated methodology yields a fixed value valid through the year 2004.

B. Test Procedures

    DOE is proposing to revise Sec. 474.3 to provide that the test 
procedure to be used in determining equivalent petroleum-based fuel 
economy shall be based on the Society of Automotive Engineers Electric 
Vehicle Energy Consumption and Range Test Procedure J1634, effective 
May 1993. In accordance with 1 CFR part 51, the DOE will incorporate by 
reference this test procedure for the final rulemaking. Copies of the 
material to be incorporated by reference are available at the location 
indicated in the ``ADDRESSES'' section of this notice. The Society of 
Automotive Engineers Test Procedure J1634 provides standard tests for 
determining the energy consumption and range of electric vehicles based 
on the same highway and urban cycles used for gasoline-powered 
vehicles. The tests address electric vehicles only, and judge 
performance on the total vehicle system and the battery.
    The current version of 10 CFR part 474 attempted to duplicate the 
Environmental Protection Agency urban driving cycle. The Environmental 
Protection Agency urban driving cycle was based heavily on stop-and-go 
as opposed to highway vehicle usage. Roughly 91 percent of this cycle 
was dedicated to stop-and-go testing and nine percent to freeway 
testing. The Society of Automotive Engineers J227a driving pattern 
closely duplicated the Environmental Protection Agency urban driving 
cycle and was used for electric vehicle testing in both the stop-and-go 
and freeway driving patterns.
    DOE is today proposing that Society of Automotive Engineers Test 
Procedure J1634 replace Society of Automotive Engineers Test Procedure 
J227a to determine equivalent petroleum-based fuel economy. The current 
version of 10 CFR part 474 was based on the premise that electric 
vehicles would only be appropriate for urban use, and therefore 
excluded use of a separate highway test cycle when testing the electric 
vehicle. The resultant measurements were typical of stop-and-go driving 
with minimal freeway vehicle usage. In addition, the Society of 
Automotive Engineers Test Procedure J227a has a shorter, repetitive 
test cycle compared to the Society of Automotive Engineers Test 
Procedure J1634. This shorter, repetitive test cycle of Test Procedure 
J227a does not represent driving conditions for a gasoline-powered 
vehicle as well as the test cycle proposed in Society of Automotive 
Engineers Test Procedure J1634.

C. Calculation Procedures

    Section 474.4 describes the steps necessary to calculate the 
equivalent petroleum-based fuel economy of an electric vehicle. The 
rule itself specifies a series of arithmetic steps one of which 
requires the inclusion of a Petroleum Equivalency Factor. The Petroleum 
Equivalency Factor is a single value incorporating the factors ii-iv 
specified by Congress in the Act.
    While the determination of the energy efficiency of an electric 
vehicle as specified in section 503(a)(3)(A)(i) is a straightforward 
task based on physical testing, the measurement of the remaining 
parameters listed in section 503(a)(3)(A) of the Motor Vehicle 
Information and Cost Savings Act is subject to less precise 
quantification. A discussion of DOE's consideration of these parameters 
follows and is further documented in ``Electric Vehicles and the 
Corporate Average Fuel Economy'' and ``Proposed Electric Vehicle 
Petroleum Equivalency Factor Equation'' which are contained in Docket 
No. EE-RM-93-301.
    At this time DOE is proposing the Petroleum Equivalency Factor 
value to be used through the year 2004. The actual figures are provided 
below.
    The Petroleum Equivalency Factor is determined as follows:

TP04FE94.000

where:

DPF = driving pattern factor
nt = average national electrical transmission efficiency
AF = accessory factor
Etotal = total output electricity generation mix (%)
Ii = input electricity generation of fuel i (%)
Vi = relative scarcity factor of fuel i

    Each of these factors is described in further detail below:
1. Driving Pattern Factor
    Section 503(c)(3)(A)(iv) of the Motor Vehicle Information and Cost 
Savings Act requires that DOE take into account ``the specific driving 
patterns of electric vehicles as compared with those of petroleum-
fueled vehicles.'' The driving pattern factor is the ratio of annual 
vehicle miles travelled for an electric vehicle to that of a petroleum-
fueled vehicle. Since there is an insufficient number of electric 
vehicles in service for use as a sample, a factor of 100 percent (1.00) 
will be used until such time DOE has collected sufficient data to show 
otherwise.
2. Electric Transmission Efficiency
    Section 503(c)(3)(A)(ii) of the Motor Vehicle Information and Cost 
Savings Act requires DOE to take account of ``the national average 
electrical generation and transmission efficiencies.'' Since energy is 
lost in transmitting electricity, this factor has a negative effect on 
the equivalent petroleum-based fuel economy. The national average 
electrical transmission efficiency is 91.5 percent and is not expected 
to change significantly over the next several years.
3. Accessory Factor
    Sections 503(a)(3) (iii) and (iv) direct DOE to include ``the need 
* * * to conserve all forms of energy'' and ``specific driving patterns 
of electric vehicles as compared to petroleum-fueled vehicles'' in 
equivalent petroleum-based fuel economy. Accordingly, DOE considered 
the use of petroleum fueled accessories in the Petroleum Equivalency 
Factor calculations. This factor is directed exclusively at heater/
defroster installations that are powered by petroleum fuels and has 
been assigned a usage factor (reduction) of approximately ten percent 
per accessory. This results in three possible accessory factor values--
1.00, .900, or .810--corresponding to whether the electric vehicle is 
equipped with none, one, or two petroleum-powered accessories 
respectively.
4. Electricity Generation Efficiency and Relative Scarcity Factor
    The last term in the Petroleum Equivalency Factor formula takes 
account of the remaining parameters listed in the Motor Vehicle 
Information and Cost Savings Act: The national average electricity 
generation efficiency and the relative scarcity and value to the Nation 
of all fuel used to generate electricity. The term is the ratio of 
total output electricity generation mix to input electricity 
generation, weighed by a relative scarcity factor. The derivation of 
values for this term, and therefore, for the Petroleum Equivalency 
Factor, depends on the availability of data for (1) total electricity 
generation, (2) energy sources used in electricity generation, (3) 
electricity generation mix, (4) fuel source reserves, and (5) 
consumption of electricity generation fuel sources.
    Section 503(a)(3)(A)(ii) of the Motor Vehicle Information and Cost 
Savings Act requires DOE to take into account average electricity 
generation efficiency. Electricity generation efficiency is defined as 
the total output electricity generation mix (Etotal) divided by 
the sum of the input electricity generation mix (I2i) values. The 
updated Petroleum Equivalency Factor equation includes the effects of 
off-peak electric vehicle charging in its calculation of average 
electricity generation efficiency. The input electricity generation mix 
values, based on off-peak electric vehicle charging, were multiplied by 
the ratio of electricity generation fuel source (quadrillion BTUs) 
output (Eqi) to input (Iqi) values (Table I), to obtain 
output electricity generation mix values (Table II).

                  Table I.--Eqi, Iqi and Eqi/Iqi Ratio                  
------------------------------------------------------------------------
                                   Eqi\1\(quads)  Iqi\2\(quads)  Eqi/Iqi
           Fuel source                                            Ratio 
------------------------------------------------------------------------
Coal.............................       5.318          16.150      0.329
Nuclear..........................       1.968           6.186      0.318
Hydroelectric....................       0.955           2.911      0.328
Natural Gas......................       0.901           2.881      0.313
Petroleum........................       0.400           1.251      0.320
                                  ---------------                       
    Total........................       9.542     .............   29.379
------------------------------------------------------------------------
\1\Source: Monthly Energy Review, November 1991, Table 7.1, Electric    
  Utility Net Generation of Electricity, p. 89 (million kilowatthours). 
\2\Source: Monthly Energy Review, November 1991, Table 2.6, Energy Input
  at Electric Utilities, p. 31 (quadrillion BTU).                       


                    Table II.--Calculation of Etotal                    
------------------------------------------------------------------------
                                                        Eqi/Iqi   Etotal
                Fuel source                   Ii (%)     ratio     (%)  
------------------------------------------------------------------------
Coal.......................................      50.17    0.329    16.52
Nuclear....................................      23.33    0.318     7.42
Hydroelectric..............................      14.52    0.328     4.76
Natural Gas................................       5.72    0.313     1.79
Oil........................................       6.29    0.320     2.01
                                            ----------------------------
      Total................................     100.00  .......    32.51
------------------------------------------------------------------------

    Section 503(a)(3)(A)(iii) of the Motor Vehicle Information and Cost 
Savings Act also requires in part that ``the relative scarcity and 
value to the Nation of all fuel used to generate electricity'' be taken 
into account. The Petroleum Equivalency Factor accomplishes this by 
multiplying each of the individual input energy generation mix value 
terms used in calculating electricity generation efficiency by a 
relative scarcity factor (Vi). The relative scarcity factor is 
derived by determining the U.S. percent and numeric share of the world 
reserve market (Table III), and calculating the rate at which the U.S. 
is depleting each fuel source's reserves. These values are then 
normalized to obtain the relative scarcity value for each fuel source 
(Table IV).

     Table III.--Calculation of U.S. Share of World Reserve Market      
------------------------------------------------------------------------
                                                     U.S.               
                                                   percent    U.S. share
          Fuel source              World reserve   of fuel     of world 
                                     value\1\       source     reserve  
                                                   market     market\2\ 
------------------------------------------------------------------------
Crude Oil, billion barrels......           967.7       26.3        254.8
Dry Natural Gas, trillion cubic                                         
 feet...........................         4,083.0       26.0      1,061.6
Recoverable Coal, million short                                         
 tons...........................     1,482,801.0       17.1   253,559.0 
------------------------------------------------------------------------
\1\Source: 1989 International Energy Annual (February, 1991) Tables 35  
  and 36, pgs. 97-101. The world reserve value expressed in this table  
  is the average of the minimum and the maximum world reserve values    
  obtained from the 1989 International Energy Annual.                   
\2\Source: U.S. Share of the World Reserve Market = World Reserve Value 
  x U.S. percent of Fuel Source Market.                                 


          Table IV.--Calculation of Relative Scarcity Value, V          
------------------------------------------------------------------------
                              Years                     1               
                              before    % of total -----------  Relative
       Fuel source          depletion  (abundance)  Abundance  scarcity,
                                                                   V    
------------------------------------------------------------------------
Crude Oil.................        34        .176        5.68       .487 
Natural Gas...............        45        .233        4.29       .368 
Coal......................       114        .591        1.69       .145 
Nuclear...................        NA          NA          NA       .010 
Hydro.....................        NA          NA          NA       .010 
                           ---------------------------------------------
      Total...............       193   ...........     11.66   .........
------------------------------------------------------------------------

    It should be noted that direct reserve values are not available for 
hydroelectric or nuclear power. Thus, relative scarcity values of .01 
are assigned to each since zero values would theoretically mean 
infinite supplies of each exist.
5. Petroleum Equivalency Factor Calculation
    The Petroleum Equivalency Factor terms, including the driving 
pattern factor term, average national electricity transmission 
efficiency term, accessory factor term, and the electric generation 
output, input and relative scarcity term, are multiplied together to 
determine the proposed Petroleum Equivalency Factor (Table V). The 
three different Petroleum Equivalency Factor values reflect the three 
possible values of the accessory factor.

                               Table V.--Petroleum Equivalency Factor Calculation                               
----------------------------------------------------------------------------------------------------------------
                                                                                    Total                       
                                                          Electrical               output                       
                                                          transmiss.   Accessory    elect    Sum of   Petroleum 
                Driving pattern factor                    efficiency    factor    gen. mix  Ii x Vi  equivalency
                                                        (t)                (%)               factor   
                                                                                  (Etotal)                      
----------------------------------------------------------------------------------------------------------------
1.000.................................................        .915        1.000                                 
                                                                           .900                                 
                                                                           .810       .325     .128       2.32  
                                                                                                          2.09  
                                                                                                         1.88   
----------------------------------------------------------------------------------------------------------------

6. Alternative Measure of Relative Scarcity and Value
    Inherent in the calculation of the petroleum equivalency is a 
measure of the relative scarcity and value to the Nation of all 
electric generation fuels. This proposed rule uses a resource based 
measure of scarcity and value. It utilizes the estimated reserves of 
electric generation fuels and their rate of consumption as an estimate 
of each fuel's scarcity and value. Though we are confident of the 
soundness of this approach, we recognize that there is some support for 
a measure of resource scarcity and value based on its market price. The 
previous rule utilized this approach. It has been suggested that a BTU 
adjusted market price of fuel might be a more realistic and measurable 
reflection of the scarcity and value of electric generation fuels. 
Under this approach, long term price projections such as those made by 
the Energy Information Administration could be used instead of marginal 
prices to address the problems associated with frequent updating of the 
petroleum equivalency factor to reflect market prices. We seek comments 
on this alternative market price based approach as well. Comments are 
sought on the merits of the market price based approach and its impact 
on the users of the petroleum equivalency factor.

D. Public Access to Information

    To assist the public in commenting on this proposed rulemaking, 
copies of the sources of information used in developing this rulemaking 
(which will be incorporated by reference) are available in Docket No. 
EE-RM-94-101 for public inspection and copying in the DOE Freedom of 
Information Reading Room 1E-190, Forrestal Building, 1000 Independence 
Avenue, SW, Washington, DC, between the hours of 9 a.m. and 4 p.m., 
Monday through Friday.

III. Opportunities for Public Comment

A. Written Comments

    Interested persons are invited to participate in this rulemaking by 
submitting data, views, or comments with respect to the proposed 
rulemaking. Comments should be submitted to the address indicated in 
the ADDRESSES section of this notice and should be identified on the 
outside of the envelope and on documents submitted to DOE with the 
designation ``Inclusion of Electric Vehicles in Corporate Average Fuel 
Economy Calculation--Proposed Regulation Update'' (Docket No. EE-RM-94-
101). Six copies should be submitted. All comments received on or 
before the date indicated at the beginning of the notice and all other 
relevant information will be considered by DOE before issuance of a 
final rule. Pursuant to the provisions of 10 CFR 1004.11 any person 
submitting information believed to be confidential and that may be 
exempt by law from public disclosure should submit one complete copy 
and eight copies from which information claimed to be confidential has 
been deleted. In accordance with the procedures established by 10 CFR 
1004.11, DOE shall make its own determination with regard to any claim 
that information submitted be exempt from public disclosure.

B. Public Hearing

1. Request To Speak Procedures
    The time and place of the public hearing are indicated in the DATES 
and ADDRESSES sections of this notice. DOE invites any person who has 
an interest in the proposed rulemaking, or who is a representative of a 
group or class of persons that has an interest in the proposed 
rulemaking, to make a request for an opportunity to make an oral 
presentation. Such a request should be directed to DOE at the address 
indicated in the ADDRESSES section of this notice.
    The person making the request should briefly describe the interest 
concerned and if appropriate, state why he or she is a proper 
representative of a group or class of persons that has such an 
interest, and a daytime telephone number where the requester may be 
contacted. Six copies of a speaker's statement should be brought to the 
hearing. In the event that any person wishing to testify cannot provide 
eight copies, alternative arrangements can be made in advance of the 
hearing.
2. Conduct of the Hearing
    DOE reserves the right to select the persons to be heard at the 
hearing, to schedule their respective presentations, and to establish 
the procedures governing the conduct of the hearing. The length of each 
presentation may be limited, based on the number of persons requesting 
to be heard.
    A DOE official will be designated to preside at the hearing. This 
will not be an evidentiary or judicial-type hearing but will be 
conducted in accordance with 5 U.S.C. 553 and section 501 of the 
Department of Energy Organization Act, 42 U.S.C. 7191. Questions may be 
asked only by those conducting the hearing. At the conclusion of all 
initial oral statements, each person who has made an oral statement 
will be given the opportunity, if he or she so desires, to make a 
rebuttal or clarifying statement. The statements will be given in the 
order in which the initial statements were made and will be subject to 
time limitations.
    Any further procedural rules needed for the proper conduct of the 
hearing will be announced by the presiding officer.

IV. Procedural Requirements

A. Environmental Review

    Pursuant to section 7(a) of the Federal Energy Administration Act 
of 1974 (15 U.S.C. 766(a)), a copy of this notice was submitted to the 
Administrator of the Environmental Protection Agency for the 
Administrator's comments concerning the impacts of this proposal on the 
quality of the environment.
    This rulemaking has been reviewed in accordance with the 
requirements of the DOE--National Environmental Policy Act Final Rule 
as published in the Federal Register on April 24, 1992. Based on that 
review, this rulemaking was found to qualify for a categorical 
exclusion under Appendix A to subpart D, Item A5 of the Final Rule: 
Rulemaking (interpreting/amending), no change in environmental effect. 
The rulemaking does not change the environmental effect of the current 
version of 10 CFR part 474.

B. Regulatory Review

    Pursuant to the January 22, 1993, memorandum on the subject of 
regulatory review from the Director of the Office of Management and 
Budget (58 FR 6074, January 25, 1993), DOE submitted this notice to the 
Director for appropriate review. The Director has completed his review. 
Separately, DOE has determined that there is no need for a regulatory 
impact analysis because the rule is not a major rule as that term is 
defined in section 1(b) of Executive Order 12291.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (Pub. L. 96-345) (5 U.S.C. 601-612) 
requires that an agency prepare an initial regulatory flexibility 
analysis to be published at the time the proposed rule is published. 
This requirement (which appears in section 603) does not apply if the 
agency certifies that the rule will not, if promulgated, have a 
``significant economic impact on a substantial number of small 
entities.''
    DOE certifies that this action will have little, if any, effect on 
small business. It is directed at vehicle manufacturers that will be 
concerned with a mix of petroleum and electric fueled vehicles in their 
annual production.

D. Federalism Review

    Executive Order 12612 (52 FR 41685, October 30, 1987) requires that 
regulations or rules be reviewed for any substantial direct effects on 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among 
various levels of government. If there are sufficient substantial 
direct effects, then Executive Order 12612 requires preparation of a 
federalism assessment to be used in all decisions involved in 
promulgating such a regulation or rule.
    DOE's responsibility with this action and 10 CFR part 474 serve 
only to provide a method of interpreting 40 CFR part 600 (Fuel Economy 
of Motor Vehicles) for electric vehicles. The action does not involve 
any substantial direct effects on States of other considerations stated 
in Executive Order 12612. Hence, no federalism assessment is required.

E. ``Takings'' Assessment Review

    It has been determined that pursuant to Executive Order 12630 (52 
FR 8859, March 18, 1988), this proposed regulation, if adopted, would 
not result in any takings which might require compensation under the 
Fifth Amendment to the United States Constitution.

F. Review Under Section 32 of the Federal Energy Administration 
Authorization Act

    Section 32 of the Federal Energy Administration Act of 1974 (15 
U.S.C. 788) imposes certain requirements when a proposed rule contains 
commercial standards or authorizes or requires the use of such 
standards.
    The commercial standards proposed today incorporate commercial 
standards to measure the energy consumption and range of electric 
vehicles. The commercial standards are the Society of Automotive 
Engineers Electric Vehicle Energy Consumption and Range Test Procedure 
J1634.
    DOE has evaluated the promulgation of these standards in light of 
the public participation criteria of section 32(b). The Department is 
unable to conclude whether development of these standards fully 
complied with section 32(b) regarding the manner of public 
participation.
    Finally, as required by section 32(c), DOE will consult with the 
Attorney General and the Chairman of the Federal Trade Commission 
concerning the impact of these standards on competition, prior to 
prescribing final test procedures.

G. Review Under Executive Order 12778

    Section 2 of Executive Order 12778 instructs each agency subject to 
Executive Order 12291 to adhere to certain requirements in promulgating 
new regulations and reviewing existing regulations. These requirements, 
set forth in sections 2(a) and (b)(2), include eliminating drafting 
errors and needless ambiguity, drafting the regulations to minimize 
litigation, providing clear and certain legal standards for affected 
conduct, and promoting simplification and burden reduction. Agencies 
are also instructed to make every reasonable effort to ensure that the 
regulation specifies clearly any preemptive effect, effect on existing 
Federal law or regulation, and retroactive effect; describes any 
administrative proceedings to be available prior to judicial review and 
any provisions for the exhaustion of such administrative proceedings; 
and defines key terms. The DOE certifies that today's proposed rule 
meets the requirements of sections 2(a) and (b)(2) of Executive Order 
12778.

List of Subjects in 10 CFR Part 474:

    Electric power, Energy conservation, Incorporation by reference, 
Motor vehicles, Research.

    For the reasons set forth in the preamble, DOE proposes to amend 
part 474 of chapter II of title 10 of the Code of Federal Regulations 
as set forth below.

    Issued in Washington, DC, on January 14, 1994.
Christine A. Ervin,
Assistant Secretary, Energy Efficiency and Renewable Energy.

PART 474--ELECTRIC AND HYBRID VEHICLE RESEARCH, DEVELOPMENT, AND 
DEMONSTRATION PROGRAM; EQUIVALENT PETROLEUM-BASED FUEL ECONOMY 
CALCULATION

    1. The authority citation for part 474 continues to read as 
follows:


    Authority: Section 503(a)(3) Motor Vehicle Information and Cost 
Savings Act, Pub. L. 94-163 (15 U.S.C. 2003(a)(3)), as added by 
Section 18, Chrysler Corporation Loan Guarantee Act of 1979, Pub. L. 
96-185; Department of Energy Organization Act, Pub. L. 95-91.

    2. Section 474.2 is amended by removing the definitions for 
``Steady- speed electrical efficiency value'' and ``Stop-and-go 
electrical efficiency value'' and adding the following definitions in 
alphabetical order:


Sec. 474.2  Definitions.

* * * * *
    Highway fuel economy test procedure driving schedule electrical 
efficiency value means the average number of kilowatt-hours of 
electrical energy required for an electric vehicle to travel 1 mile of 
the highway fuel economy test procedure driving schedule, as determined 
in accordance with Sec. 474.3(c).
* * * * *
    Urban driving schedule electrical efficiency value means the 
average number of kilowatt-hours of electrical energy required for an 
electric vehicle to travel one mile of the urban driving schedule, as 
determined in accordance with Sec. 474.3(b).
    3. Section 474.3 is revised to read as follows:


Sec. 474.3  Test procedures.

    (a) The conditions and equipment in the Electric Vehicle Energy 
Consumption and Range Test Procedure--J1634 of the Society of 
Automotive Engineers shall be used for conducting the test procedures 
set forth in this section.
    (b) The energy consumption test procedures prescribed in Society of 
Automotive Engineers procedure J1634, Section 6, using the 
Environmental Protection Agency Urban Driving Schedule, shall be used 
for generation of the urban driving schedule electrical efficiency 
value.
    (c) The energy consumption test procedures prescribed in Society of 
Automotive Engineers procedure J1634, Section 6, using the Highway Fuel 
Economy Test Procedure Driving Schedule, shall be used for generation 
of the highway fuel economy test procedure driving schedule electrical 
efficiency value.
    4. Section 474.4 is amended by revising paragraphs (a), (b) and (e) 
to read as follows:


Sec. 474.4  Equivalent petroleum-based fuel economy calculation.

    (a) Calculate the equivalent petroleum-based fuel economy of an 
electric vehicle as follows:
    (1) Determine the urban driving schedule electrical efficiency 
value, according to Sec. 474.3(b).
    (2) Determine the highway driving schedule electrical efficiency 
value, according to Sec. 474.3(c).
    (b) Calculate the electrical energy efficiency value by:
    (1) Multiplying the urban driving schedule electrical efficiency 
value by 0.55; and
    (2) Multiplying the highway fuel economy test procedure driving 
schedule electrical efficiency value by 0.45; and
    (3) Adding the resulting two figures, rounding to the nearest 0.01 
kWh/mile.
* * * * *
    (e) Calculate the equivalent petroleum-based fuel economy value in 
miles per gallon by multiplying the electric energy efficiency value by 
one of the three petroleum equivalency factor values which reflect the 
three production volume/accessory combinations specified in 
Sec. 474.4(d):
    (i) 2.32;
    (ii) 2.09; or
    (iii) 1.88.

[FR Doc. 94-2093 Filed 2-3-94; 8:45 am]
BILLING CODE 6450-01-P