[Federal Register Volume 84, Number 218 (Tuesday, November 12, 2019)]
[Notices]
[Pages 61053-61055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24572]


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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2019-0588; FRL-10001-99-OAR]


Alternative Methods for Calculating Off-Cycle Credits Under the 
Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From 
Nissan North America, Inc.

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: EPA is requesting comment on applications from Nissan North 
America, Inc. (``Nissan'') for off-cycle carbon dioxide 
(CO2) credits under EPA's light-duty vehicle greenhouse gas 
emissions standards. ``Off-cycle'' emission reductions can be achieved 
by employing technologies that result in real-world benefits, but where 
that benefit is not adequately captured on the test procedures used by 
manufacturers to demonstrate compliance with emission standards. EPA's 
light-duty vehicle greenhouse gas program acknowledges these benefits 
by giving automobile manufacturers several options for generating 
``off-cycle'' CO2 credits. Under the regulations, a 
manufacturer may apply for CO2 credits for off-cycle 
technologies that result in off-cycle benefits. In these cases, a 
manufacturer must provide EPA with a proposed methodology for 
determining the real-world off-cycle benefit. Nissan has submitted 
applications that describe methodologies for determining off-cycle 
credits from technologies described in their application. Pursuant to 
applicable regulations, EPA is making Nissan's off-cycle credit 
calculation methodologies available for public comment.

DATES: Comments must be received on or before December 12, 2019.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2019-0588, to the Federal eRulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or withdrawn. The 
EPA may publish any comment received to its public docket. Do not 
submit electronically any information you consider to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Multimedia submissions (audio, video, etc.) must 
be accompanied by a written comment. The written comment is considered 
the official comment and should include discussion of all points you 
wish to make. The EPA will generally not consider comments or comment 
contents located outside of the primary submission (i.e. on the web, 
cloud, or other file sharing system). For additional submission 
methods, the full EPA public comment policy, information about CBI or 
multimedia submissions, and general guidance on making effective 
comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Roberts French, Environmental 
Protection Specialist, Office of Transportation and Air Quality, 
Compliance Division, U.S. Environmental Protection Agency, 2000 
Traverwood Drive, Ann Arbor, MI 48105. Telephone: (734) 214-4380. Fax: 
(734) 214-4869. Email address: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    EPA's light-duty vehicle greenhouse gas (GHG) program provides 
three pathways by which a manufacturer may accrue off-cycle carbon 
dioxide (CO2) credits for those technologies that achieve 
CO2 reductions in the real world but where those reductions 
are not adequately captured on the test used to determine compliance 
with the CO2 standards, and which are not otherwise 
reflected in the standards' stringency. The first pathway is a 
predetermined list of credit values for specific off-cycle technologies 
that may be used beginning in model year 2014.\1\ This pathway allows 
manufacturers to use conservative credit values established by EPA for 
a wide range of technologies, with minimal data submittal or testing 
requirements, if the technologies meet EPA regulatory definitions. In 
cases where the off-cycle technology is not on the menu but additional 
laboratory testing can demonstrate emission benefits, a second pathway 
allows manufacturers to use a broader array of emission tests (known as 
``5-cycle'' testing because the methodology uses five different testing 
procedures) to demonstrate and justify off-cycle CO2 
credits.\2\ The additional emission tests allow emission benefits to be 
demonstrated over some elements of real-world driving not adequately 
captured by the GHG compliance tests, including high speeds, hard 
accelerations, and cold temperatures. These first two methodologies 
were completely defined through notice and comment rulemaking and 
therefore no additional process is necessary for manufacturers to use 
these methods. The third and last pathway allows manufacturers to seek 
EPA approval to use an alternative methodology for determining the off-
cycle CO2 credits.\3\ This option is only available if the 
benefit of the technology cannot be adequately demonstrated using the 
5-cycle methodology. Manufacturers may also use this option for model 
years prior to 2014 to demonstrate off-cycle CO2 reductions 
for technologies that are on the predetermined list, or to demonstrate 
reductions that exceed those available via use of the predetermined 
list.
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    \1\ See 40 CFR 86.1869-12(b).
    \2\ See 40 CFR 86.1869-12(c).
    \3\ See 40 CFR 86.1869-12(d).
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    Under the regulations, a manufacturer seeking to demonstrate off-
cycle credits with an alternative methodology (i.e., under the third 
pathway described above) must describe a methodology that meets the 
following criteria:
     Use modeling, on-road testing, on-road data collection, or 
other approved analytical or engineering methods;
     Be robust, verifiable, and capable of demonstrating the 
real-world emissions benefit with strong statistical significance;

[[Page 61054]]

     Result in a demonstration of baseline and controlled 
emissions over a wide range of driving conditions and number of 
vehicles such that issues of data uncertainty are minimized;
     Result in data on a model type basis unless the 
manufacturer demonstrates that another basis is appropriate and 
adequate.
    Further, the regulations specify the following requirements 
regarding an application for off-cycle CO2 credits:
     A manufacturer requesting off-cycle credits must develop a 
methodology for demonstrating and determining the benefit of the off-
cycle technology and carry out any necessary testing and analysis 
required to support that methodology.
     A manufacturer requesting off-cycle credits must conduct 
testing and/or prepare engineering analyses that demonstrate the in-use 
durability of the technology for the full useful life of the vehicle.
     The application must contain a detailed description of the 
off-cycle technology and how it functions to reduce CO2 
emissions under conditions not represented on the compliance tests.
     The application must contain a list of the vehicle 
model(s) which will be equipped with the technology.
     The application must contain a detailed description of the 
test vehicles selected and an engineering analysis that supports the 
selection of those vehicles for testing.
     The application must contain all testing and/or simulation 
data required under the regulations, plus any other data the 
manufacturer has considered in the analysis.
    Finally, the alternative methodology must be approved by EPA prior 
to the manufacturer using it to generate credits. As part of the review 
process defined by regulation, the alternative methodology submitted to 
EPA for consideration must be made available for public comment.\4\ EPA 
will consider public comments as part of its final decision to approve 
or deny the request for off-cycle credits.
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    \4\ See 40 CFR 86.1869-12(d)(2).
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II. Off-Cycle Credit Applications

A. Variable Crankcase Suction Valve Technology in Denso AC Compressors

    Using the alternative methodology approach discussed above, Nissan 
is applying for credits for an air conditioning compressor manufactured 
by Denso that results in air conditioning efficiency credits beyond 
those provided in the regulations. This request is for the 2017 and 
subsequent model years. This compressor, known as the Denso SAS 
compressor, improves the internal valve system within the compressor to 
reduce the internal refrigerant flow necessary throughout the range of 
displacements that the compressor may use during its operating cycle. 
The addition of a variable crankcase suction valve allows a larger mass 
flow under maximum capacity and compressor start-up conditions (when 
high flow is ideal), and then it can reduce to smaller openings with 
reduced mass flow in mid- or low-capacity conditions. The refrigerant 
exiting the crankcase is thus optimized across the range of operating 
conditions, reducing the overall energy consumption of the air 
conditioning system. EPA first approved credits for General Motors (GM) 
for the use of the Denso SAS compressor in 2015,\5\ and has 
subsequently approved such credits for BMW, Ford, and Hyundai.\6\
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    \5\ ``EPA Decision Document: Off-cycle Credits for Fiat Chrysler 
Automobiles, Ford Motor Company, and General Motors Corporation.'' 
Compliance Division, Office of Transportation and Air Quality, U.S. 
Environmental Protection Agency. EPA-420-R-15-014, September 2015.
    \6\ EPA Decision Document: Off-cycle Credits for BMW Group, Ford 
Motor Company, and Hyundai Motor Company.'' Compliance Division, 
Office of Transportation and Air Quality, U.S. Environmental 
Protection Agency. EPA-420-R-17-010, December 2017.
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    The credits calculated for the Denso SAS compressor would be in 
addition to the credits of 1.7 grams/mile for variable-displacement A/C 
compressors already allowed under EPA regulations.\7\ However, it is 
important to note that EPA regulations place a limit on the cumulative 
credits that can be claimed for improving the efficiency of A/C 
systems. The rationale for this limit is that the additional fuel 
consumption of A/C systems can never be reduced to zero, and the limits 
established by regulation reflect the maximum possible reduction in 
fuel consumption projected by EPA. These limits, or caps, on credits 
for A/C efficiency, must also be applied to A/C efficiency credits 
granted under the off-cycle credit approval process. In other words, 
cumulative A/C efficiency credits for an A/C system--from the A/C 
efficiency regulations and those granted via the off-cycle 
regulations--must comply with the stated limits.
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    \7\ See 40 CFR 86.1868-12.
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    Nissan is requesting an off-cycle GHG credit of 1.1 grams 
CO2 per mile for the Denso SAS compressor. Nissan cited the 
bench test modeling analysis referenced in the original GM application, 
which demonstrated a benefit of 1.1 grams/mile. Like other 
manufacturers, Nissan also ran vehicle tests using the AC17 test to 
confirm the credit amount. Seven tests were conducted, resulting in a 
calculated benefit of 4.4 grams/mile, thus substantiating the bench 
test results. Based on these results, Nissan is requesting a credit of 
1.1 grams/mile for all Nissan vehicles equipped with the Denso SAS 
compressor with variable crankcase suction valve technology, starting 
with 2017 model year vehicles. Details of the testing and analysis can 
be found in the manufacturer's application.

B. Off-Cycle GHG Credits for Calsonic Kansei A/C Compressor 
Incorporating Flowpath Resistance Reduction Technology

    Using the alternative methodology approach discussed above, Nissan 
is applying for credits for an air conditioning compressor manufactured 
by Calsonic Kansei that results in air conditioning efficiency credits 
beyond those provided in the regulations. This request is for the 2018 
and subsequent model years. This compressor (the ``Calsonic Kansei CR-
Phase 4 compressor''), improves the efficiency of the compressor by 
changing the contours of the refrigerant flow path, reducing the 
pressure loss and improving the efficiency relative to previous 
versions of the system.
    The credits calculated for the Calsonic Kansei compressor would be 
in addition to the credits of 1.7 grams/mile for variable-displacement 
A/C compressors already allowed under EPA regulations.\8\ However, it 
is important to note that EPA regulations place a limit on the 
cumulative credits that can be claimed for improving the efficiency of 
A/C systems. The rationale for this limit is that the additional fuel 
consumption of A/C systems can never be reduced to zero, and the limits 
established by regulation reflect the maximum possible reduction in 
fuel consumption projected by EPA. These limits, or caps, on credits 
for A/C efficiency, must also be applied to A/C efficiency credits 
granted under the off-cycle credit approval process. In other words, 
cumulative A/C efficiency credits for an A/C system--from the A/C 
efficiency regulations and those granted via the off-cycle 
regulations--must comply with the stated limits.
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    \8\ See 40 CFR 86.1868-12.
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    Nissan is requesting an off-cycle GHG credit of 1.1 grams 
CO2 per mile for the Calsonic Kansei compressor. Nissan 
cited the bench test modeling analysis conducted by Calsonic Kansei, 
using the procedures contained in SAE standard J2765, which 
characterize a system's coefficient of performance. Nissan also ran six 
vehicle tests comparing compressors on the AC17 test protocol; these 
tests demonstrated a 1.7 gram/

[[Page 61055]]

mile benefit. Finally, Calsonic Kansei used the LCCP model to estimate 
the benefits of the technology, and this modeling also supported a 
credit value of 1.1 grams/mile. Details of the bench testing, vehicle 
testing, and modeling are available in Nissan's application.

III. EPA Decision Process

    EPA has reviewed the applications for completeness and is now 
making the applications available for public review and comment as 
required by the regulations. The off-cycle credit applications 
submitted by the manufacturer (with confidential business information 
redacted) have been placed in the public docket (see ADDRESSES section 
above) and on EPA's website at https://www.epa.gov/vehicle-and-engine-certification/compliance-information-light-duty-greenhouse-gas-ghg-standards.
    EPA is providing a 30-day comment period on the applications for 
off-cycle credits described in this notice, as specified by the 
regulations. The manufacturers may submit a written rebuttal of 
comments for EPA's consideration, or may revise an application in 
response to comments. After reviewing any public comments and any 
rebuttal of comments submitted by manufacturers, EPA will make a final 
decision regarding the credit requests. EPA will make its decision 
available to the public by placing a decision document (or multiple 
decision documents) in the docket and on EPA's website at the same 
manufacturer-specific pages shown above. While the broad methodologies 
used by these manufacturers could potentially be used for other 
vehicles and by other manufacturers, the vehicle specific data needed 
to demonstrate the off-cycle emissions reductions would likely be 
different. In such cases, a new application would be required, 
including an opportunity for public comment.

    Dated: November 1, 2019.
Byron J. Bunker,
Director, Compliance Division, Office of Transportation and Air 
Quality, Office of Air and Radiation.
[FR Doc. 2019-24572 Filed 11-8-19; 8:45 am]
BILLING CODE 6560-50-P