[Federal Register Volume 85, Number 63 (Wednesday, April 1, 2020)]
[Notices]
[Pages 18227-18228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06709]


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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ- OAR-2019-0333; FRL-10007-19-OAR]


Alternative Methods for Calculating Off-Cycle Credits Under the 
Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From 
Toyota Motor North America

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency (EPA) is requesting 
comment on applications from Toyota Motor North America (``Toyota'') 
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. Toyota has submitted applications that describe methodologies 
for determining off-cycle credits from technologies described in their 
applications. Pursuant to applicable regulations, EPA is making these 
off-cycle credit calculation methodologies available for public 
comment.

DATES: Comments must be received on or before May 1, 2020.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ- 
OAR-2019-0333, 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 Once submitted, comments cannot be edited or withdrawn.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 https://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Linc Wehrly, Director, Light Duty 
Vehicle Center, Compliance Division, Office of Transportation and Air 
Quality, U.S. Environmental Protection Agency, 2000 Traverwood Drive, 
Ann Arbor, MI 48105. Telephone: (734) 214-4286. Fax: (734) 214-4053. 
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 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;
     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

[[Page 18228]]

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. Denso Electric Scroll Air Conditioning Compressor

    Toyota is applying for off-cycle GHG credits for the use of the 
Denso Electric Scroll Air Conditioning Compressor Variation B (ESB) 
with pressure adjusting valve technology. This technology improves the 
efficiency of the electric scroll compressor using a pressure adjusting 
valve to optimize back pressure on the fixed scroll and reduce 
mechanical losses. This is similar to the off cycle alternative method 
technology for the belt driven Denso SES/SAS compressor, for which 
credits were granted to Toyota in June 2018.\5\ The requested credit 
amount was confirmed by Toyota through bench testing, following the 
method in the Society of Automotive Engineers (SAE) procedure J2765, to 
confirm air conditioning system power reduction of the technology 
resulting from the reduced mechanical losses in the compressor. The SAE 
J2766 standard (using the GREEN MAC Life Cycle Climate Performance 
Model) was used to calculate the normalized grams CO2 per 
mile improvement of the technology for the U.S. market. The 
CO2 grams per mile improvement was derived from the bench 
test results.
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    \5\ ``EPA Decision Document: Off-cycle Credits for General 
Motors and Toyota Motor Corporation.'' Compliance Division, Office 
of Transportation and Air Quality, U.S. Environmental Protection 
Agency. EPA-420-R-18-014, June 2018.
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    Toyota is applying for a credit of 1.9 grams/mile for 2016 and 
later model years for vehicles sold in the U.S. and equipped with the 
Denso ESB air conditioning compressor. EPA considers this compressor 
technology to be a technology that, if approved, will be subject to the 
maximum limits for an A/C system of 5.0 g/mi for passenger automobiles 
and 7.2 g/mi for light trucks specified in the regulations.\6\ Details 
of the testing and analysis can be found in the manufacturer's 
applications.
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    \6\ See 40 CFR 86.1868-12 (b).
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B. Dual Layer HVAC Technology

    Toyota is applying for off-cycle GHG credits for the use of a dual 
layer (or 2-layer) HVAC technology. Ventilation and heat transfer 
losses between the cabin and outside ambient are the key HVAC thermal 
losses during warmup. Ventilation losses can be reduced by 
recirculating the cabin air, but this has the adverse effect of 
building up cabin humidity, which can then become a safety hazard due 
to increased windshield fogging. Dual layer HVAC uses two separate 
``layers'' of airflow within the vehicle and a two[hyphen]stage fan 
that can recirculate air through the lower outlets while flowing fresh, 
low humidity air through the upper ducts (includes the windshield 
defroster). The module has a door that selects full fresh, full 
recirculate, or dual layer mode based on logic parameters. Low humidity 
air is needed to better defog the windshield and recirculated air 
improves warm up performance. With the use of recirculated air less 
engine heat is needed to warm the cabin, and both the cabin and the 
engine warm up faster. Faster engine warmup improves vehicle 
efficiency.
    Toyota is applying for a credit of 0.6 grams/mile for 2016 and 
later model years for vehicles sold in the U.S. and equipped with the 
dual layer HVAC technology. Details of the testing and analysis can be 
found in the manufacturer's applications.

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 manufacturers (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 document, 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: March 25, 2020.
Byron J. Bunker,
Director, Compliance Division, Office of Transportation and Air 
Quality, Office of Air and Radiation.
[FR Doc. 2020-06709 Filed 3-31-20; 8:45 am]
 BILLING CODE 6560-50-P