[Federal Register Volume 63, Number 74 (Friday, April 17, 1998)]
[Proposed Rules]
[Pages 19372-19378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10239]
[[Page 19371]]
_______________________________________________________________________
Part IV
Department of Energy
_______________________________________________________________________
Office of Energy Efficiency and Renewable Energy
_______________________________________________________________________
10 CFR Part 490
Alternative Fueled Vehicle Acquisition Requirements for Private and
Local Government Fleets; Proposed Rule
Federal Register / Vol. 63, No. 74 / Friday, April 17, 1998 /
Proposed Rules
[[Page 19372]]
DEPARTMENT OF ENERGY
Office of Energy Efficiency and Renewable Energy
10 CFR Part 490
[Docket No. EE-RM-98-507]
RIN 1904-AA98
Alternative Fueled Vehicle Acquisition Requirements for Private
and Local Government Fleets
AGENCY: Department of Energy (DOE).
ACTION: Advance notice of proposed rulemaking and notice of public
hearings.
-----------------------------------------------------------------------
SUMMARY: The Department of Energy is today publishing an advance notice
of proposed rulemaking, as required by the Energy Policy Act of 1992
(the Act), Pub. L. 102-486, that begins a process to determine whether
alternative fueled vehicle acquisition requirements for certain private
and local government automobile fleets should be promulgated under the
terms of section 507(g) of the Act. The establishment of such an
acquisition program is reliant on whether this program is necessary for
achieving the Act's replacement fuel goals and whether this program
will enable the actual realization of these goals. Thus, this notice
requests comments on the replacement fuel goals set forth in section
502(b)(2) of the Act, identifying the problems with achieving the
goals, assessing the adequacy and practicability of the goals, and
considering all actions necessary to meet the goals. Additionally, this
notice requests comments on whether DOE should propose the inclusion of
alternative fueled urban bus acquisition requirements for private and
local government fleets in conjunction with a fleet requirement program
that may be established under section 507(g) of the Act. This notice is
intended to stimulate comments that will inform DOE's decisions
concerning future rulemaking actions and non-regulatory initiatives to
promote alternative fuels and alternative fueled vehicles.
DATES: Written comments (8 copies) must be received by DOE by July 16,
1998. Where possible, commenters should identify the specific section
and question number to which they are responding.
Oral views, data, and arguments may be presented at the public
hearings, which are scheduled as follows:
1. In Los Angeles, CA, beginning at 9:30 a.m. on May 20, 1998.
2. In Minneapolis, MN, beginning at 9:30 a.m. on May 28, 1998.
3. In Washington, DC, beginning at 9:30 a.m. on June 4, 1998.
The hearings will end after all persons who have requested an
opportunity to speak have made oral presentations. Requests to speak at
any of the hearings should be phoned to Andi Kasarsky, (202) 586-3012,
and received no later than 4:00 p.m., May 18, 1998, for the Los
Angeles, CA, hearing; May 26, 1998, for the Minneapolis, MN, hearing;
and June 2, 1998, for the Washington, DC, hearing. Each oral
presentation is limited to 10 minutes.
ADDRESSES: The hearings will be held at the following addresses:
1. Los Angeles, CA--Roybal Federal Building, 255 E. Temple Street (at
Los Angeles Street), 2nd Floor Conference Room, Los Angeles, CA.
2. Minneapolis, MN--U.S. Court House, 300 South 4th Street (at 3rd
Avenue), Skyway Conference Center (Room 259--2nd level), Minneapolis,
MN.
3. Washington, DC--U.S. Department of Energy, Room 1E-245, 1000
Independence Avenue, SW., Washington, DC 20585.
Written comments should be addressed to: U.S. Department of Energy,
Office of Transportation Technologies, EE-34, Docket No. EE-RM-98-507,
1000 Independence Avenue, SW., Washington, DC 20585, telephone (202)
586-3012. Copies of the public hearing transcripts, written comments
received, technical reference materials mentioned in the notice, and
any other docket material received may be read and copied at the DOE
Freedom of Information Reading Room, U.S. Department of Energy, Room
1E-190, 1000 Independence Ave., SW., Washington, DC 20585, telephone
(202) 586-3142, between the hours of 8:30 a.m. and 4:00 p.m., Monday
through Friday, except Federal holidays. The docket file material will
be filed under ``EE-RM-98-507.''
For more information concerning public participation in this
rulemaking proceeding, see section V of this notice (Public Comment
Procedures).
FOR FURTHER INFORMATION CONTACT:
Kenneth R. Katz, Office of Energy Efficiency and Renewable Energy, EE-
34, U.S. Department of Energy, 1000 Independence Avenue, SW.,
Washington, DC 20585, [email protected]; or phone (202) 586-
9171.
Vivian S. Lewis, Office of the General Counsel, GC-72, U.S. Department
of Energy, 1000 Independence Avenue, SW., Washington, DC 20585.
For information concerning the public hearings, requests to speak
at a hearing, submission of written comments, and to obtain copies of
materials referenced in this notice, contact Andi Kasarsky, (202) 586-
3012.
SUPPLEMENTARY INFORMATION:
I. Introduction
A. Authority
B. Program Background and Goals
C. Required Rulemaking
D. Law Enforcement Vehicle and Urban Bus Optional Rulemakings
II. General Issues Relating to Replacement Fuel Goals
III. Issues Related to Fleet Requirement Determinations
IV. Issues Related to the Inclusion of Urban Buses in a Fleet
Requirement Program
V. Review and Analysis Requirements
VI. Public Comment Procedures
a. Participation in Rulemaking
b. Written Comment Procedures
c. Public Hearings
1. Procedure for Submitting Requests to Speak
2. Conduct of Hearing
I. Introduction
A. Authority
The Energy Policy Act of 1992 (Pub. L. 104-486) authorizes DOE to
pursue a rulemaking concerning alternative fueled vehicle acquisition
requirements for private and local government fleets on two distinct
schedules. First, section 507(b) provides for an early rulemaking,
which was to be completed by December 15, 1996. As part of that
rulemaking, section 507 (a)(3) of the Act required DOE to publish an
Advance Notice of Proposed Rulemaking (ANOPR) to begin a rulemaking
process for determining whether alternative fueled vehicle (AFV)
acquisition requirements for private and local government fleets are
necessary to achieve the Act's energy security and other goals. 42
U.S.C. 13256(a)(3). If no rule was promulgated by December 15, 1996,
then sections 507(b)(3), (c), and (e) require a later rulemaking to
determine by January 1, 2000, whether vehicle acquisition requirements
are ``necessary,'' as described in section 507(e). 42 U.S.C.
13256(b)(3), (c) and (e).
DOE published an ANOPR for the purposes described in section 507(a)
and (b) on August 7, 1996. 61 FR 41032. This notice was intended to
stimulate comments to assist DOE in making decisions concerning future
rulemaking actions and non-regulatory initiatives to promote
alternative fuels and alternative fueled vehicles. Three hearings were
held to receive oral comments on the ANOPR. They were held on September
17, 1996, in Dallas, Texas; on September 25, 1996, in Sacramento,
California; and on October 9, 1996, in Washington, DC. A total of 70
persons spoke at the three
[[Page 19373]]
hearings, and 105 written comments were received by November 5, 1996.
On April 23, 1997, DOE published a Notice of Termination stating
that DOE would not promulgate regulations to implement alternative
fueled vehicle requirements for certain private and local government
fleets according to the early schedule of section 507(a)(1) of the Act.
62 FR 19701. As required by sections 507(b)(3), (c), and (e), DOE today
begins a rulemaking under section 507(g) of the Act to determine, no
later than January 1, 2000, whether alternative fueled vehicle
acquisition requirements for private and local government automobile
fleets under the later schedule of section 507(g) are considered
``necessary'' to achieve the Act's ``replacement fuel'' goals. (A
``replacement'' fuel is the non-petroleum portion of an ``alternative
fuel'' as those terms are defined in section 301 of the Act. (42 U.S.C.
13211).)
Section 504(c) of the Act provides additional, albeit limited,
rulemaking authority to develop and implement programs, other than
regulatory alternative fueled vehicle acquisition mandates, to meet the
general program goals set forth in section 502(a) of the Act. (42
U.S.C. 13254(c).) Section 502(a) describes goals to promote
availability of domestic replacement fuels to the maximum extent
practicable in order to have the greatest impact in reducing oil
imports, improving the Nation's economy, and reducing greenhouse gas
emission. (42 U.S.C. 13252(a).) The predicate for using the rulemaking
authority under section 504(c) is a determination that achievement of
the specific numerical goals in section 502(b)(2) would result in a
``significant and correctable'' failure to meet the general program
goals in section 502(a). Section 504(c) precludes DOE from promulgating
rules that would mandate: production of alternative fueled vehicles;
vehicle marketing or pricing practices, policies, or strategies; and
production or delivery of alternative fuels. In preparing a notice of
proposed rulemaking following evaluation of comments received in
response to this advance notice, DOE will be considering whether to
propose rules under section 504(c).
From prior rulemaking activities under title V of the Act, DOE
knows that there are diverse interests with strongly held views about
the general program goals of the Act and the role that Government
should play in achieving those goals. Broad acceptance of final rules
setting forth an affirmative program would be desirable and, to that
end, DOE may use a neutral and experienced convener under the
Negotiated Rulemaking Act of 1990 to assist DOE in determining whether
to develop proposed rules using consensus rulemaking procedures. 5
U.S.C. 563.
B. Program Background and Goals
The transportation sector currently accounts for approximately two-
thirds of all U.S. petroleum use and roughly one-fourth of total U.S.
energy consumption. A virtual one-to-one relationship exists between
additional gasoline and diesel fuel consumption and America's increased
use of imported oil. The gap between the transportation sector's demand
for petroleum and our domestic petroleum production continues to widen.
Today, the U.S. consumes 4 million barrels per day more than it
produces for transportation purposes alone; that gap is projected to
rise to 8 million barrels per day by the year 2010. According to the
latest projections by the Energy Information Administration (EIA), the
transportation sector will consume 15.8 million barrels per day of
petroleum in 2010, if no significant changes are made to usage patterns
and vehicle efficiency. About 8.4 million of these barrels are
projected to be used by light duty vehicles. The transportation sector
represents one of the major sources of energy vulnerability for
American society and the American economy today.
U.S. dependence on imported petroleum has also grown since the
Act's enactment. In 1992, 41 percent of total U.S. petroleum
consumption was derived from foreign sources. By 1996, imports had
increased to 46 percent. EIA projects U.S. petroleum import dependence
to reach approximately 52 percent of consumption by 2000 and 60 percent
of petroleum consumption by 2010. Congress enacted the Act, in part, to
address these energy security concerns, many of which are more critical
now than at the time of passage. Titles III, IV, V, and VI of the Act
contain provisions requiring DOE to establish a variety of programs
aimed at displacing substantial quantities of oil consumed by motor
vehicles.
Title III sets forth mandatory requirements for Federal fleet
acquisitions of alternative fueled vehicles, which began in fiscal year
1993. Since that time, approximately 30,000 alternative fueled vehicles
have been acquired by the Federal fleet. Federal agencies have gained
considerable experience with many types of alternative fuels and
alternative fueled vehicles.
Title IV directs DOE to establish a program to certify alternative
fuel technicians, acquire data about alternative fuels and alternative
fueled vehicles, and establish a public information program. DOE has
established a cooperative program with the auto service industry and
numerous technical colleges to develop and implement national standards
for certification of alternative fuel training programs.
Title IV also includes programs related to demonstrating the
feasibility of the commercial application of using alternative fuels
for urban buses and other motor vehicles used for mass transit. Since
1992, many fleets across the country have begun replacing their buses
with alternative fueled buses. Currently, alternative fueled transit
buses are operated in thirty-eight States. According to the American
Public Transit Association and the Federal Transit Association, more
than 2,600 alternative fueled buses were in use in 1996. That number is
estimated to increase to about 4,500 in 1998. Approximately 22 percent
of new buses on order for the January 1998 through April 1998 time
frame will be operated on alternative fuels. In comparison, 14 percent
of new buses ordered in 1996 operated on alternative fuels.
Over the last several years, DOE has analyzed the costs and
benefits of alternative fuel and AFV use in the transportation sector.
A series of technical reports recorded the results of these analyses
and is entitled ``Assessment of Costs and Benefits of Flexible and
Alternative Fuel Use in the U.S. Transportation Sector.'' These reports
will be placed in the public docket for this rulemaking in DOE's
Freedom of Information Reading Room.
Section 502 requires DOE to establish a program to promote
development and use of replacement fuels, especially domestic
replacement fuels, in light duty motor vehicles. DOE is required to
focus on those replacement fuels having the most impact in: Reducing
oil imports, improving the health of the Nation's economy, and reducing
emissions of greenhouse gases. DOE is in the process of performing
analytical work to guide the design of this replacement fuel demand and
supply program. Section 502(b) requires DOE to assess, among other
things, the feasibility of producing adequate replacement fuels to
displace 10 percent of U.S. motor fuel by 2000 and 30 percent by 2010.
DOE has undertaken such a study, the partial results of which have been
published by DOE's Office of Policy as Technical Report Fourteen:
Market Potential and Impacts of Alternative Fuel Use in Light-Duty
Vehicles: A 2000/2010 Analysis. This
[[Page 19374]]
analysis was conducted in 1994 under a set of premises (i.e., estimated
future oil prices) that were more favorable to alternative fuel use
than the expectations found in the Annual Energy Outlook 1998 (DOE/EIA-
0383(98)). This report is available by calling the National Alternative
Fuels Hotline at 1-800-423-1DOE or 703-528-3500. A copy will be placed
in the docket file for this rulemaking.
The following key results and conclusions emerged from the analysis
contained in this report:
For the year 2000, ten percent replacement of light duty
motor fuel use with alternative and replacement fuels is feasible and
appears likely with existing practices and policies.
Displacing thirty percent of light duty motor fuel use by
2010 also appears feasible, however, feasibility is based on several
assumptions that may not be realized without additional alternative
fuel incentives.
With a fully established refueling infrastructure and
sufficient vehicle availability, market forces would continue to
support 30 percent use of alternative fuels and would sustain even
higher levels as alternative fueled vehicles assume an increasingly
larger share of the total light duty vehicle population.
In long-run equilibrium, making alternative fuels and
alternative fueled vehicles available would provide an estimated net
annual economic benefit of up to $10.3 billion in 2010. Much of this
benefit--$4.2 billion--consists of an increase in consumer satisfaction
from the availability of new classes of vehicles and less expensive
fuels; the remaining $6.1 billion reflects dollar cost savings from
alternative fuel use, mainly through the reduced cost of fuel imports.
Benefits from reduced emissions of criteria pollutants are
estimated to be up to $3.7 billion annually.
Although this analysis indicates that a free market could sustain a
large volume of alternative fuel use, it does not appear at the present
that the market will move toward such a scenario without Government
action. The report states that in order to realize any substantial use
of alternative fuels by 2010, the Federal and/or State governments will
have to take steps soon to encourage the increased use of alternative
fuels and vehicles.
DOE is also required by section 506 to prepare a Technical and
Policy Analysis of various issues related to replacement fuels and
alternative fueled vehicles for submission to the President and
Congress. On October 27, 1997, DOE published a Notice of Availability
and Request for Comments (62 FR 55622) on a proposed analysis on these
issues, prior to its final transmission to the President and Congress.
Comments were due to DOE by January 26, 1998. Copies of the proposed
Technical and Policy Analysis may be obtained from the National
Alternative Fuels Hotline, 9300 Lee Highway, Fairfax, VA 22301-1207,
(800) 423-1DOE, or electronically from the Office of Energy Efficiency
and Renewable Energy's Transportation Technologies website at: http://
www.ott.doe.gov/office.rules.html. DOE is required by section 506(c) to
preserve all comments received on the analysis for use in required
rulemaking proceedings under section 507, including the rulemaking,
covered in today's notice, for determining whether local government and
private fleets should be required to acquire alternative fueled
vehicles. Public comments on the section 506 Technical Analysis can be
reviewed at DOE's Freedom of Information Reading Room under Docket
Number EE-NOA-97-506. Currently, twelve written comments have been
received on the analysis.
The preliminary partial results of the section 506 Technical
Analysis indicate that the potential use of replacement fuels
sustainable by the market could be as high as 30 to 38 percent under
various scenarios and ultimately could be greater than 50 percent. In
order to reach these levels of replacement fuel use, major transitional
impediments would have to be overcome, including changes in the
relative fuel/vehicle prices to consumers. Changes to the price that
customers pay for alternative fueled vehicles and alternative fuels may
require the establishment of additional financial, and non-financial,
incentives both for the end user and for the vehicle and fuel
providers.
For example, the analysis states that the Act's suggested goals of
displacing 10 percent of transportation fuels in the year 2000 and 30
percent in the year 2010 would require that AFV sales:
Grow to between 35 and 40 percent of total new light duty
vehicle sales by 1999 to meet the 2000 goal; and
Stay in the range of 30 to 38 percent to build an AFV
population sufficiently large enough to meet the 2010 goal.
If the 30 percent goal applied to year 2020, instead of 2010, the
analysis states that AFV growth would have to:
Double every year between 1995 and 2000, going from
approximately 30,000 to 500,000 sales per year;
Increase by 50 percent per year to 4,000,000 in the
period from 2001 through 2005; and
Remain at a constant 32 percent of total light duty
vehicle sales in the period from 2005 through 2010.
Under this scenario, the AFV population in 2020 would be large
enough so that 30 percent of light duty vehicle motor fuel would be
replacement fuel. This scenario is believed to be more representative
of new vehicle technology market introduction generally, than the
growth paths necessary to meet the Act's suggested goals. However, the
draft analysis indicates that it is unlikely that the estimated growth
in alternative fueled vehicles and alternative fuel use will occur
solely due to the Federal, State, local government, and fuel provider
alternative fueled vehicle acquisition requirements of the Act. The
draft analysis suggests that new policies may need to be established
before these projections of alternative fuel and alternative fueled
vehicle use can be realized. These policies could result in additional
grant programs, budget increases for existing grant programs,
additional financial and non-financial incentives, additional excise
tax changes, and/or the establishment of new programs.
In addition to the hearings, reports and analyses required by Title
V, DOE held two stakeholder forums in 1997 for the purpose of
discussing the replacement fuel goals, the potential private and local
government fleet acquisition requirements, and the issue of mandates
versus incentives. These forums took place on June 24, 1997, in Long
Beach, CA, and on November 19, 1997, in Dallas, TX. Issues discussed at
these forums included the current availability and use of alternative
fuels and alternative fueled vehicles; existing governmental
incentives, both financial and non-financial; taxes on alternative
fuels; alternative fuel economics; and the need for additional programs
and incentives that will catalyze the alternative fuels market. In
preparation for the Dallas forum, DOE produced a ``Fleet Forum White
Paper'' that summarized the current status of these issues,
characterized the types of incentives and provided a basis for
discussion. This document will be placed in the docket for this
rulemaking and can be reviewed at DOE's Freedom of Information Reading
Room.
Pursuant to section 505 of the Act, 42 U.S.C. 13255, DOE is
promoting voluntary use of alternative fueled vehicles through its
Clean Cities Program. Under this program, DOE joins with local
governments and organizations in public/private partnerships aimed at
developing markets for alternative fueled vehicles.
[[Page 19375]]
The program aims to bring together enough participants in each local
area to reach the necessary volume of alternative fueled vehicle use to
justify installation of refueling infrastructure and other joint
facilities, as well as to promote other forms of cooperation. As of
March 1998, 61 U.S. communities have signed agreements to participate.
Title V also contains non-discretionary alternative fueled vehicle
acquisition requirements. Sections 501 and 507(o) of the Act require
certain alternative fuel provider and State government fleets to
include increasing percentages of alternative fueled vehicles in their
annual acquisitions of new light duty vehicles. DOE published a final
rule to implement these vehicle acquisition requirements on March 14,
1996. 61 FR 10621. As a result of these requirements, alternative fuel
provider and State fleets have reported, to date, the acquisition of
approximately 5,000 alternative fueled vehicles to DOE. This quantity
is expected to increase after additional reports are received and
tabulated.
The use of alternative fueled vehicles, alternative fuels, and
replacement fuels has been steadily growing since 1992. According to
the EIA report entitled, ``Alternatives to Traditional Transportation
Fuels 1996'' (December 1997), the following estimates apply in respect
to the use of alternative fueled vehicles, alternative fuels, and
replacement fuels:
More than 380,000 alternative fueled vehicles were in use
in 1997; a 51 percent increase since 1992.
An additional 50,000 alternative fueled vehicles are
expected to be in use by the end of 1998.
From 1992 to 1996, gasoline-equivalent gallon consumption
of alternative and replacement fuels increased by 76 percent, while
consumption of traditional fuels increased just 10 percent.
From 1992 to 1996, alternative and replacement fuel
consumption increased from 2,106,000 to 3,707,000 billion gasoline-
equivalent gallons, while consumption of traditional fuels increased
from 134,000,000 to 148,000,000 billion gasoline-equivalent gallons.
United States consumption of alternative fuels is
expected to grow by more than 45 million gasoline-equivalent gallons
from 1996 to 1998.
The availability of alternative fueled vehicles from Original
Equipment Manufacturers (OEMs) has been increasing steadily. Several
types of alternative fueled vehicles, including light-, medium-, and
heavy-duty vehicles are available from OEMs. Alternative fueled
vehicles are available from Chrysler, Ford, General Motors, Honda, and
Toyota. Manufacturers have announced plans for new offerings of
alternative fueled vehicles in the next few years. Both Chrysler and
Ford announced that they intend to produce large numbers of flexible-
fuel vehicles (including sedans, minivans, and compact pickup trucks)
that are capable of operating on E85, a blend of 85 percent ethanol and
15 percent gasoline, and/or gasoline. Currently, available model types
include compact and full-size pickup trucks; cargo and passenger vans;
minivans; compact sport utility vehicles; delivery trucks; and
subcompact, compact, mid-size, and full-size passenger cars. Available
fuel types include 85 percent ethanol (E85), 85 percent methanol (M85),
compressed natural gas (CNG), liquefied natural gas (LNG), propane
(liquefied petroleum gas or LPG), and electricity.
C. Required Rulemaking
This advance notice of proposed rulemaking is the first step in a
required rulemaking under section 507(g) of the Act for determining
whether local government and private fleets (other than alternative
fuel providers subject to section 501) should be required to acquire
alternative fueled vehicles. 42 U.S.C. 13257(g). A DOE decision to
impose alternative fueled vehicle acquisition requirements on private
and local government fleets is dependent on a determination that such
requirements are ``necessary'' to achieve the replacement fuel goals of
section 502(b)(2)(B), or as modified by DOE under section 504 or
507(e), and that the requirements would enable the actual realization
of these goals. If the replacement fuel goals, as modified, cannot be
met by the imposition of these acquisition requirements, the Act does
not permit DOE to go forward with such a program.
Such a fleet mandate would cover local government and private
fleets (excluding alternative fuel provider fleets covered by section
501 of the Act) of 20 or more light duty motor vehicles (including
passenger cars and trucks under 8500 lbs. gross vehicle weight rating),
which are:
Centrally fueled or capable of being centrally fueled;
Operated primarily within a metropolitan statistical area
with a population of at least 250,000 according to the 1980 census; and
Owned, leased, operated or otherwise controlled by an
entity which owns or operates 50 or more such vehicles in the United
States.
Various classes of light duty motor vehicles are excluded from the
basis for determining coverage. Excluded categories are listed in
section 490.3 of DOE's final rule for State government fleets and
certain alternative fuel providers. 10 CFR part 490. Appendix A to
subpart A of 10 CFR part 490 provides a list of the 125 metropolitan
statistical areas with a population of at least 250,000, according to
the 1980 Census.
The statutory authority for the required rulemakings is described
below. Each may require a separate rulemaking action, or may be
combined into a single rulemaking. Additionally, a third optional
rulemaking, as described below in section D, may require a separate
rulemaking, or may be included in this single rulemaking action.
1. Advance Notice of Proposed Rulemaking
Section 507(c) of the Act requires DOE to publish an advance notice
of proposed rulemaking for the purposes of: (a) evaluating progress
toward the goals of producing replacement fuels to replace, on an
energy equivalent basis, at least 10 percent of motor fuel consumption
by the year 2000 and at least 30 percent by the year 2010; (b)
identifying the problems with achieving those goals; (c) assessing the
adequacy and practicability of those goals; and (d) considering all
actions necessary to achieve those goals. Today's notice is issued to
comply with this statutory requirement.
2. Later Rulemaking
Sections 507(e) and (g) of the Act require DOE to initiate a
rulemaking to determine if the statutory conditions for a later
mandate, beginning in model year 2002 or thereafter, are met. In order
to determine that a mandate is ``necessary,'' section 507(e) of the
Act, 42 U.S.C. 13257(e), requires that DOE make the following findings
by rule:
(a) The goal of replacement fuel use described in section
502(b)(2)(B), or as modified by section 504, is not expected to be
actually achieved by 2010 by voluntary means or pursuant to Title V
or any other law without such a fleet requirement program, taking
into consideration the status of the achievement of the interim goal
described in section 502(b)(2)(A); and
(b) Such goal is practicable and actually achievable within
periods specified in section 502(b)(2) (or such other date as is
established under section 504) through implementation of such a
fleet requirement program in combination with voluntary means and
the application of other programs relevant to achieving such goals.
[[Page 19376]]
Section 507(g) provides the following alternative fueled vehicle
acquisition schedule for a program established by this later
rulemaking:
20 percent of the light duty motor vehicles acquired in model year
2002;
40 percent of those acquired in model year 2003;
60 percent of those acquired in model year 2004; and
70 percent of those acquired in model year 2005 and thereafter.
Under section 507(e)(2), these percentages can be reduced by rule, to
no less than 10 percent. Additionally, section 507(g)(2) allows DOE the
option of starting the acquisition schedule later than model year 2002.
If DOE were eventually to determine under section 507(f) that a
fleet requirement program is unnecessary, DOE would be required by
section 509 of the Act to submit to Congress recommendations for
possible requirements or incentives applying to fuel suppliers, vehicle
suppliers, and motorists that would achieve the Act's fuel replacement
goals.
D. Law Enforcement Vehicle and Urban Bus Optional Rulemakings
Section 507(k)(1) allows the Secretary, by rule, to include fleets
of law enforcement vehicles in a fleet requirement program established
under section 507(g), if it is determined that this inclusion would
contribute to achieving the goal described in section 502(b)(2)(B) (or
such other date as is established under section 504). 42 U.S.C.
13257(k)(1). A DOE decision to include law enforcement motor vehicles
in a fleet requirement program established under section 507(g) is
dependent upon a determination that this inclusion will not hinder the
use of motor vehicles for law enforcement purposes. Only one rulemaking
may be initiated under section 507(k)(1). Under section 507(k)(3), this
rulemaking may not occur unless a rulemaking is carried out under
section 507(g).
Many law enforcement agencies currently are using alternative
fueled vehicles satisfactorily. In some cases, alternative fuels can
reduce life-cycle operation costs for high-mileage patrol vehicles. The
operational characteristics of many administrative law enforcement
vehicles create a good match with those of alternative fueled vehicles.
However, DOE recognizes that many law enforcement agencies have unique
operational practices and requirements that would reduce opportunities
for alternative fueled vehicles. DOE is interested in receiving
comments as to whether acquisition requirements for alternative fueled
law enforcement motor vehicles should be included in a fleet
requirement program and how this program should be structured,
including the program start date and acquisition percentages.
Section 507(k)(2) allows the Secretary, by rule, to include new
urban buses, as defined by the Environmental Protection Agency (EPA),
under title II of the Clean Air Act, in a fleet requirement program
established under section 507(g), if it is determined that this
inclusion would contribute to achieving the goal described in section
502(b)(2)(B) (or such other date as is established under section 504).
42 U.S.C. 13257(k)(2). An urban bus is defined by EPA as:
A heavy-duty diesel-powered passenger-carrying vehicle with a
load capacity of fifteen or more passengers and intended primarily
for intra-city operation, i.e., within the confines of a city or
greater metropolitan area. Urban bus operation is characterized by
short rides and frequent stops. To facilitate this type of
operation, more than one set of quick-operating entrance and exit
doors would normally be installed. Since fares are usually paid in
cash or tokens rather than purchased in advance in the form of
tickets, urban buses would normally have equipment installed for
collection of fares. Urban buses are also typically characterized by
the absence of equipment and facilities for long distance travel,
e.g., rest rooms, large luggage compartments, and facilities for
stowing carry-on luggage. The useful life for urban buses is the
same as the useful life for other heavy-duty diesel engines. 40 CFR
86.091-2.
A DOE decision to include new urban buses in a fleet requirement
program established under section 507(g) is dependent upon a
determination that this inclusion will be consistent with energy
security goals and the needs and objectives of encouraging and
facilitating the greater use of such urban buses by the public, taking
into consideration the impact of such application on public transit
entities. Only one rulemaking may be initiated under section 507(k)(2).
Under section 507(k)(3), this rulemaking may not occur unless a
rulemaking is carried out under section 507(g).
II. General Issues Relating to Replacement Fuel Goals
As explained in Section I of this notice, section 507(c) of the Act
requires DOE to publish an advance notice of proposed rulemaking for
the purposes of: Evaluating progress toward the replacement fuel goals
of producing replacement fuels to replace, on an energy equivalent
basis, at least 10 percent of motor fuels consumption by the year 2000
and at least 30 percent by the year 2010 (or as modified under section
504); identifying the problems with achieving those goals; assessing
the adequacy and practicability of those goals; and considering all
actions necessary to achieve those goals.
Section 502(a) lays out a specific goal for a ``Replacement Fuel
Supply and Demand Program'': To promote the development and use in
light duty motor vehicles of domestic replacement fuels to substitute
for imported petroleum motor fuels to the maximum extent practicable.
42 U.S.C. 13252.
In designing the program, DOE is to focus on those replacement
fuels having the most impact in reducing oil imports, improving the
health of the Nation's economy, and reducing emissions of greenhouse
gases. Section 502(b)(2) further requires DOE to assess, among other
things, the feasibility of producing adequate replacement fuels to
displace 10 percent of U.S. motor fuel by 2000 and 30 percent by 2010.
42 U.S.C. 13252(b)(2).
DOE invites comments on the following general issues related to
achieving the Act's suggested replacement fuel goals:
1. Can the goal of replacing 30 percent of motor fuel consumption
be achieved by 2010? What are the problems with achieving the goal?
2. If the 30 percent goal cannot be achieved by 2010, then what is
an achievable goal in terms of percentage and time frame?
3. What methods or criteria should DOE use to assess the adequacy
and practicality of specific replacement fuel goals (i.e., the 10
percent and 30 percent targets) or for determining whether the goals
should be modified?
4. What type of a replacement fuels program should DOE establish
that would maximize usage of alternative fuels, replacement fuels, and
energy efficient vehicles? How should such a program be structured and
implemented?
5. What types of programs could be employed in combination with, or
in place of, mandated fleet AFV acquisitions to help achieve the 30
percent replacement fuel goal in 2010?
6. What specific types of incentives, should be employed to help
achieve the 30 percent replacement fuel goal in 2010? What form should
these incentives take (e.g., financial, non-financial)? Who should
benefit from these incentives (e.g., consumers, fleet operators,
vehicle manufacturers, fuel providers, equipment suppliers) and how?
7. How should the potential for dramatic changes in the price and
availability of petroleum (e.g., due to a sharp curtailment in world
petroleum
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supplies) be factored into the design of a replacement fuels program?
8. How should DOE estimate the fuel replacement impacts from other
Federal or State alternative fueled vehicle mandates, voluntary
commitments, use of dual fueled vehicles (that operate only part time
on alternative fuels), and other measures?
9. What methods are currently being used by fleets for tracking the
use of alternative fuel in dual fueled vehicles? How should DOE use
this data to verify alternative fuel use?
10. How should DOE encourage alternative fuel use in dual fueled
vehicles?
11. What factors should DOE take into account when estimating the
impact of replacement fuels on reducing oil imports, improving the
health of the Nation's economy, and reducing greenhouse gas and other
emissions?
III. Issues Related to Fleet Requirement Determinations
Sections 507(e) and (g) require that DOE publish a rule in the
Federal Register, no later than January 1, 2000, for the purpose of
determining whether a fleet requirement for local government and
private fleets to acquire alternative fueled vehicles is necessary.
Such a program shall be considered necessary if the Secretary finds
that:
(a) the goal of replacement fuel use described in section
502(b)(2)(B) (or as modified under section 504) is not expected to be
actually achieved by 2010 (or other such date as established under
section 504) by voluntary means or pursuant to Title V or any other law
without such a fleet requirement program; and
(b) the goal (or as modified under section 504) is practicable and
actually achievable through implementation of such a fleet requirement
program in combination with voluntary means and the application of
other programs relevant to achieving the goal.
Section 507(e)(2) requires that the rule published under section
507(g) also must modify the goal described in section 502(b)(2)(B) and
establish a revised goal pursuant to section 504 if the Secretary
determines that the 30 percent motor fuel replacement goal by 2010 is
inadequate or impracticable, and not expected to be achieved. The goal
as modified and established is applicable in making these findings.
Under section 507(e)(2), if DOE modifies the suggested 30 percent
motor fuel replacement by 2010 goal, it also may modify the annual
fleet acquisition requirements with the minimum percentage being no
less than 10 percent of new light duty vehicle acquisitions.
Likewise, section 507(g)(2) provides that DOE may, by rule,
establish a lesser AFV acquisition requirement for any model year and
that DOE may establish a fleet requirement program start date later
than 2002. However, DOE may not establish acquisition percentages
greater than those in section 507(g)(1).
Regarding local government entities, section 507(i)(1)(C) provides
an exemption for a local government entity if it can demonstrate to DOE
that a fleet requirement program, under section 507(g), would pose an
unreasonable financial hardship on the entity. The Act does not provide
a similar exemption for private fleets that may be covered. However,
for all fleets, sections 507(i)(1)(A) and (B) allow an exemption if the
fleet demonstrates that alternative fueled vehicles that meet the
normal requirements and practices of the principal business of the
fleet owner are not reasonably available for acquisition or the
alternative fuels that meet the normal requirements and practices of
the principal business of the fleet owner are not available in the area
in which the vehicles are to operated.
DOE seeks comment on the following issues that may be relevant to
any future DOE decision to propose alternative fueled vehicle
acquisition requirements for local government and private fleets:
1. If a fleet requirement program is established, should the
acquisition percentages be the same as those provided in section 507(g)
for the acquisition of new light duty motor vehicles or should a
different acquisition schedule apply? If a different schedule should
apply, what should the schedule look like (e.g., program start date,
acquisition percentages)?
2. If the Act's suggested goal of replacing 30 percent of the motor
fuel used by 2010 is impracticable and not expected to be achieved,
what should the modified fuel replacement goal be in terms of
percentage replacement and the year the goal is expected to be
achieved?
3. What methods or criteria should DOE use to determine the
contribution of a fleet requirement program towards meeting the fuel
replacement goal as modified?
4. What types of programs should be established, instead of a fleet
requirement program, that will result in market penetration of
alternative fueled vehicles and alternative fuels to the maximum extent
practicable? And what market penetration(s) would be possible with the
establishment of these programs?
5. What types of voluntary and incentive measures should be
undertaken, either in conjunction with fleet AFV requirements or in
lieu of such mandates, such as a program that awarded credits for the
amount of petroleum displaced or replaced, that would encourage
progress toward the fuel replacement goals?
6. DOE is required by section 507(l) to take into consideration the
following factors: energy security, costs, safety, lead time
requirements, vehicle miles traveled annually, effect on greenhouse
gases, technological feasibility, energy requirements, economic impacts
including impacts on fleets, workers, and consumers, such as users of
the alternative fuels for other (non-transportation) purposes, and the
availability of alternative fuels and alternative fueled vehicles.
What bearing or weighting factor, if any, should these factors have
on a DOE determination as to whether it should impose alternative
fueled vehicle acquisition requirements on local government and private
fleets?
IV. Issues Related to the Inclusion of Urban Buses in a Fleet
Requirement Program
DOE seeks comment on the following issues that may be relevant to
any future DOE decision to propose the inclusion of alternative fueled
urban bus acquisition requirements for local government and private
fleets under a fleet requirement program that may be established under
section 507(g) of the Act:
1. What methods or criteria should DOE use in determining whether
the inclusion of alternative fueled urban buses in a fleet requirement
program under section 507(g) would contribute to achieving the goal of
section 502(b)(2)(B) (or other such goal as modified by section 504)?
2. What methods or criteria should DOE use in determining whether
the inclusion of alternative fueled urban buses in a fleet requirement
program will be consistent with the energy security goals and the needs
and objectives of encouraging and facilitating the greater use of
alternative fueled buses by the public?
3. What factors should DOE take into consideration when estimating
the impact on public transit entities of a program requiring the
acquisition of alternative fueled buses?
4. If a fleet requirement program is established, should
requirements for the acquisition of alternative fueled urban buses
apply to both local government and private fleets? Or, should
requirements only apply to local government fleets?
5. Should the acquisition percentages be the same as those that
apply to local
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government and private fleets for new light duty vehicles under section
507(g) or should a different acquisition schedule apply? If a different
schedule should apply to the acquisition of alternative fueled urban
buses, what should the schedule look like (e.g., program start date,
acquisition percentages)?
6. What types of exemptions and/or exclusions should be included in
such a fleet requirement program?
V. Review and Analysis Requirements
DOE provided to the Office of Information and Regulatory Affairs
(OIRA) in the Office of Management and Budget a copy of this notice for
comment. At the proposal stage for this rulemaking, DOE and OIRA will
determine whether this rulemaking is a significant regulatory action
under Executive Order 12866, Regulatory Planning and Review, 58 FR
51735 (Oct. 4, 1993). Were DOE to propose alternative fueled vehicle
acquisition requirements for local government and private fleets, the
rulemaking could constitute an economically significant regulatory
action, and DOE would prepare and submit to OIRA for review the
assessment of costs and benefits required by section 6(a)(3) of
Executive Order 12866. Other procedural and analysis requirements in
other Executive Orders and statutes also may apply to such future
rulemaking action, including the requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq.; the Paperwork Reduction Act, 44
U.S.C. 3501 et seq.; and the Unfunded Mandates Act of 1995, Pub. L.
104-4; and the National Environmental Policy Act, 42 U.S.C. 4321 et
seq.
VI . Public Comment Procedures
A. Participation in Rulemaking
DOE encourages the maximum level of public participation possible
in this rulemaking. Individual fleet operators; representatives of
trade groups; local governments; consumers of fleet services; vehicle
manufacturers; fuel providers, including producers; distributors and
service station operators; associations; States or other governmental
entities; and others are urged to submit written comments on the
proposal. DOE also encourages interested persons to participate in the
public hearings to be held at the times and places indicated at the
beginning of this notice.
DOE has established a period of 90 days following publication of
this notice for persons and organizations to comment on this advance
notice of proposed rulemaking. All public comments, public hearing
transcripts, and other docket material will be available for review and
copying in the DOE Freedom of Information Reading Room at the address
shown at the beginning of this notice. The docket file material will be
filed under ``EE-RM-98-507.''
B. Written Comment Procedures
Interested persons are invited to participate in this proceeding by
submitting written data, views or arguments with respect to the
subjects set forth in this notice. Instructions for submitting written
comments are set forth at the beginning of this notice and below. Where
possible, commenters should identify the specific section and question
number to which they are responding.
Comments (8 copies) should be labeled both on the envelope and on
the documents, ``Fleet AFV Acquisition Requirements Rulemaking (Docket
No. EE-RM-98-507),'' and must be received by the date specified at the
beginning of this notice. All comments and other relevant information
received by the date specified at the beginning of this notice will be
considered by DOE in the subsequent stages of the rulemaking process.
Pursuant to the provisions of 10 CFR 1004.11, any person submitting
information or data that is believed to be confidential and exempt by
law from public disclosure should submit one complete copy of the
document and 3 copies, if possible, from which the information believed
to be confidential has been deleted. DOE will make its own
determination with regard to the confidential status of the information
or data and treat it according to its determination.
C. Public Hearings
1. Procedure for Submitting Requests to Speak
The dates, times and places of the public hearings are indicated at
the beginning of this notice. DOE invites any person who has an
interest in these proceedings, or who is a representative of a group or
class of persons having an interest, to make a request for an
opportunity to make an oral presentation at the public hearings.
Requests may be telephoned to the telephone number given at the
beginning of this notice. The person making the request should give a
telephone number where he or she may be contacted. Persons will be
notified by DOE as to the approximate time they will be speaking.
Each person is requested to submit 8 copies of his/her statement at
the registration desk prior to the beginning of the hearing. In the
event any person wishing to testify cannot meet this requirement, that
person may make alternative arrangements by calling (202) 586-3012 in
advance.
2. Conduct of Hearing
DOE reserves the right to select the persons to be heard at the
hearings, to schedule the respective presentations, and to establish
the procedures governing the conduct of the hearings. Each presentation
is limited to 10 minutes.
A DOE official will be designated to preside at the hearings. The
hearings will not be judicial or evidentiary-type hearings, but will be
conducted in accordance with the Administrative Procedure Act, 5 U.S.C.
553, and section 501 of the DOE Organization Act, 42 U.S.C. 7191. At
the conclusion of all initial oral statements, each person who has made
an oral statement will be given the opportunity to make a rebuttal or
clarifying statement, subject to time limitations. Any further
procedural rules regarding proper conduct of the hearings will be
announced by the presiding official.
Transcripts of the hearings will be made and the entire record of
this rulemaking, including the transcripts, will be retained by DOE and
made available for inspection at the DOE Freedom of Information Reading
Room as provided at the beginning of this notice. Any person may
purchase a copy of the transcripts from the transcribing reporter.
Issued in Washington, DC, on April 8, 1998.
Dan W. Reicher,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 98-10239 Filed 4-16-98; 8:45 am]
BILLING CODE 6450-01-P