[Federal Register Volume 85, Number 169 (Monday, August 31, 2020)]
[Proposed Rules]
[Pages 53722-53725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17214]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 600
[EPA-HQ-OAR-2020-0314; FRL-10012-24-OAR]
RIN 2060-AU89
Technical Correction to the Flex-Fuel Vehicle Provisions in CAFE
Regulations
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: EPA is proposing to correct an error in EPA's regulations for
test procedures used in the Corporate Average Fuel Economy (CAFE)
program finalized in a 2012 rulemaking. EPA established the procedures
under the general provisions of Energy Policy and Conservation Act
(EPCA) which authorize EPA to establish test and calculation procedures
for CAFE. The correction clarifies the method for how flex-fuel
vehicles are accounted for in manufacturer fuel economy calculations in
model years 2020 and later. This correction allows the program to be
implemented as originally intended in the 2012 rule. This proposed
action is not expected to result in any significant changes in
regulatory burdens or costs. In the ``Rules and Regulations'' section
of this Federal Register, we are taking direct final action without a
prior proposed rule. If we receive no adverse comment, we will not take
further action on this proposed rule.
DATES: Comments: Written comments must be received by October 15, 2020.
If EPA receives a request for a public hearing by September 8, 2020, we
will publish information related to the hearing and new deadline for
public comment in a subsequent Federal Register document.
Public hearing: EPA will not hold a public hearing on this matter
unless a request is received by the person identified in the FOR
FURTHER INFORMATION CONTACT section of this preamble by September 8,
2020. If EPA receives such a request, we will hold a public hearing.
Additional information about the hearing would be published in a
subsequent Federal Register document.
ADDRESSES: You may send comments, identified by Docket ID No. EPA-HQ-
OAR-2020-0314, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov/
(our preferred method). Follow the online instructions for submitting
comments.
Email: [email protected]. Include Docket ID No. EPA-
HQ-OAR-2020-0314 in the subject line of the message.
Fax: (202) 566-9744 Include Docket ID No. EPA-HQ-OAR-2020-
0314 on the cover of the fax.
Mail: U.S. Environmental Protection Agency, EPA Docket
Center, OAR, Docket EPA-HQ-OAR-2020-0314, Mail Code 28221T, 1200
Pennsylvania Avenue NW, Washington, DC 20460.
Hand Delivery/Courier: EPA Docket Center, WJC West
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004.
The Docket Center's hours of operations are 8:30 a.m.-4:30 p.m.,
Monday-Friday (except Federal Holidays).
Instructions: All submissions received must include the Docket ID
No. for this rulemaking. Comments received may be posted without change
to https://www.regulations.gov/, including any personal information
provided. For detailed instructions on sending comments and additional
information on the rulemaking process, see the ``Public Participation''
heading of the SUPPLEMENTARY INFORMATION section of this document. Out
of an abundance of caution for members of the public and our staff, the
EPA Docket Center and Reading Room are closed to the public, with
limited exceptions, to reduce the risk of transmitting COVID-19. Our
Docket Center staff will continue to provide remote customer service
via email, phone, and webform. We encourage the public to submit
comments via https://www.regulations.gov/ or email, as there may be a
delay in processing mail and faxes. Hand deliveries and couriers may be
received by scheduled appointment only. For further information on EPA
Docket Center services and the current status, please visit us online
at https://www.epa.gov/dockets.
FOR FURTHER INFORMATION CONTACT: Christopher Lieske, Office of
Transportation and Air Quality (OTAQ), Assessment and Standards
Division (ASD), Environmental Protection Agency, 2000 Traverwood Drive,
Ann Arbor, MI 48105; telephone number: (734) 214-4584; email address:
[email protected] fax number: (734) 214-4816.
SUPPLEMENTARY INFORMATION:
I. Why is EPA issuing this proposed rule?
This document proposes to correct an error in EPA's regulations for
test procedures used in the Corporate Average Fuel Economy (CAFE)
program finalized in a 2012 rulemaking. The correction clarifies the
method for how flex-fuel vehicles are accounted for in manufacturer
fuel economy calculations in model years 2020 and later. This
correction allows the program to be implemented as originally intended
in the 2012 rule.
We have published a direct final rule in the ``Rules and
Regulations'' section of this Federal Register because we view this as
a noncontroversial action and anticipate no adverse comment. We have
explained our reasons for this action in the preamble to the direct
final rule; that document also includes draft regulations detailing all
the amendments under consideration.
If we receive no adverse comment, we will not take further action
on this proposed rule. If we receive adverse comment, we will publish a
timely withdrawal in the Federal Register informing the public that the
direct final rule, or the relevant provisions of the rule, will not
take effect. We would address all public comments in any subsequent
final rule based on this proposed rule.
We do not intend to institute a second comment period on this
action. Any parties interested in commenting must do so at this time.
For further information, please see the information provided in the
ADDRESSES section of this document.
II. Does this action apply to me?
This action affects companies that manufacture or sell passenger
automobiles (passenger cars) and non-passenger automobiles (light
trucks) as defined under NHTSA's CAFE regulations.\1\ Regulated
categories and entities include:
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\1\ ``Passenger car'' and ``light truck'' are defined in 49 CFR
part 523.
[[Page 53723]]
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NAICS
Category codes A Examples of potentially
regulated entities
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Industry............................ 336111 Motor Vehicle
336112 Manufacturers.
Industry............................ 811111 Commercial Importers of
811112 Vehicles and Vehicle
811198 Components.
423110
Industry............................ 335312 Alternative Fuel
811198 Vehicle Converters.
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A North American Industry Classification System (NAICS).
This list is not intended to be exhaustive, but rather provides a
guide regarding entities likely to be regulated by this action. To
determine whether particular activities may be regulated by this
action, you should carefully examine the regulations. You may direct
questions regarding the applicability of this action to the person
listed in FOR FURTHER INFORMATION CONTACT.
III. Public Participation
EPA will keep the record open until October 15, 2020. All
information will be available for inspection at the EPA Air Docket No.
EPA-HQ-OAR-2020-0314. Submit your comments, identified by Docket ID No.
EPA-HQ-OAR-2020-0314, at https://www.regulations.gov (our preferred
method), or the other methods identified in the ADDRESSES section. Once
submitted, comments cannot be edited or removed from the docket. The
EPA may publish any comment received to its public docket. Do not
submit to EPA's docket at https://www.regulations.gov 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://www.epa.gov/dockets/commenting-epa-dockets.
The EPA is temporarily suspending its Docket Center and Reading
Room for public visitors, with limited exceptions, to reduce the risk
of transmitting COVID-19. Our Docket Center staff will continue to
provide remote customer service via email, phone, and webform. We
encourage the public to submit comments via https://www.regulations.gov/ as there may be a delay in processing mail and
faxes. Hand deliveries or couriers will be received by scheduled
appointment only. For further information and updates on EPA Docket
Center services, please visit us online at https://www.epa.gov/dockets.
The EPA continues to carefully and continuously monitor information
from the Centers for Disease Control and Prevention (CDC), local area
health departments, and our Federal partners so that we can respond
rapidly as conditions change regarding COVID-19.
IV. Proposed Provisions
This proposal would correct a technical error in EPA regulations
pertaining to the treatment of model year (MY) 2020 and later E85 flex-
fuel vehicles (FFVs) in the Corporate Average Fuel Economy (CAFE)
program. These provisions were established in the 2012 final rule
``2017 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions
and Corporate Average Fuel Economy Standards,'' where EPA adopted new
test procedures for weighting the measured fuel economy of MY 2020 and
later FFVs when the vehicles are tested on both E85 and gasoline test
fuels.\2\ EPA established the procedures under the general provisions
of Energy Policy and Conservation Act (EPCA) which authorize EPA to
establish test and calculation procedures for CAFE.\3\
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\2\ See 77 FR 62830 and 63127, October 15, 2012.
\3\ 49 U.S.C. 32904(a), (c).
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49 U.S.C. 32905 specifies how the fuel economy of dual fuel
vehicles is to be calculated for the purposes of CAFE through the 2019
model year. The basic calculation includes a 50/50 harmonic average
weighting of the fuel economy for the alternative fuel and the
conventional fuel, irrespective of the actual usage of each fuel. In a
related provision, 49 U.S.C. 32906, the amount by which a
manufacturer's CAFE value (for domestic passenger cars, import
passenger cars, or light-duty trucks) can be improved by the statutory
incentive for dual fuel vehicles is limited by EPCA to 1.2 mpg through
2014, and then gradually reduced until it is phased out entirely
starting in model year 2020.\4\
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\4\ 49 U.S.C. 32906.
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Recognizing the expiration of the special calculation procedures in
49 U.S.C. 32905 for dual fuel vehicles, EPA established, in the 2012
rule, calculation procedures for model years 2020 and later FFVs under
the general provisions of EPCA noted above authorizing EPA to establish
CAFE testing and calculation procedures. EPA regulations at 40 CFR
600.510-12(c)(2)(v) specify weighting the fuel economy measured when an
FFV is tested on E85 and gasoline test fuel using the same weighting
factor as is used in the greenhouse gas program for weighting
CO2 emissions measured on the two fuels.\5\ As part of the
2012 rule, NHTSA modified its regulations at Part 536.10 to limit the
applicability of the EPCA limits to MYs 2019 and earlier and to state
that for MYs 2020 and beyond a manufacturer must calculate the fuel
economy of dual-fuel vehicles in accordance with EPA's regulations at
40 CFR 600.510-12(c)(2)(v).
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\5\ This weighting factor is commonly referred to as the ``F-
factor.'' The F-factor is a value specified by EPA in accordance
with 40 CFR 600.510-12(k) based on EPA's assessment of the real-
world use of E85 over the life of the FFVs.
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The preamble for the 2012 rule summarized EPA's approach for MY
2020 and later as follow: ``EPA is finalizing its proposal, under its
EPCA authority, to use the ``utility factor'' methodology for PHEV and
CNG vehicles described above to determine how to apportion the fuel
economy when operating on gasoline or diesel fuel and the fuel economy
when operating on the alternative fuel. For FFVs under the CAFE
program, EPA is using the same methodology it uses for the GHG program
to apportion the fuel economy, namely based on actual usage of E85. As
proposed, EPA is continuing to use Petroleum Equivalency Factors and
the 0.15 divisor used in the MY 2012-2016 rule for the alternative
fuels,
[[Page 53724]]
however with no cap on the amount of fuel economy increase allowed.''
\6\
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\6\ 77 FR 62653.
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EPA noted in the 2012 preamble ``[i]n a related provision, 49
U.S.C. 32906, the amount by which a manufacturer's CAFE value (for
domestic passenger cars, import passenger cars, or light-duty trucks)
can be improved by the statutory incentive for dual fuel vehicles is
limited by EPCA to 1.2 mpg through 2014, and then gradually reduced
until it is phased out entirely starting in model year 2020. With the
expiration of the special calculation procedures in 49 U.S.C. 32905 for
dual fueled vehicles, the CAFE calculation procedures for model years
2020 and later vehicles need to be set under the general provisions
authorizing EPA to establish testing and calculation procedures.'' \7\
The 2012 rule preamble also notes ``NHTSA interprets section 32906(a)
as not limiting the impact of duel fueled vehicles on CAFE calculations
after MY2019.'' \8\ The 2012 rule preamble states ``we interpret
Congress' statement in section 32906(a)(7) that the maximum increase in
fuel economy attributable to dual-fueled automobiles is `0 miles per
gallon for model years after 2019' within the context of the
introductory language of section 32906(a) and the language of section
32906(b), which, again, refers clearly to the statutory credit, and not
to dual-fueled automobiles generally. It would be an unreasonable
result if the phaseout of the credit meant that manufacturers would be
effectively penalized, in CAFE compliance, for building dual-fueled
automobiles . . .'' \9\ EPA believes all of these statements from the
2012 final rule make clear EPA's intent not to apply the 49 U.S.C.
32906 credit limits to CAFE calculations for model year 2020 and later
vehicles.
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\7\ 77 FR 62830.
\8\ 77 FR 62830.
\9\ 77 FR 63020.
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A discrepancy in EPA's regulations exists in section 40 CFR
600.510-12(h), where prior to the 2012 rule, EPA codified the EPCA
limits in EPA's regulations. These regulations specify that the impact
of certain dual-fuel vehicles on a manufacturer's fleet CAFE
calculations is limited to 0.0 for MY 2020 and later. EPA inadvertently
did not revise the regulations at 40 CFR 600.510-12(h) to account for
the 2012 rule's treatment of MY 2020 and later FFVs. The existing 40
CFR 600.510-12(h) provisions may be read as applying the EPCA limits to
MY 2020 and later FFVs, inconsistent with the clear intent of the 2012
rule. This proposal would correct this error by making narrow revisions
to this section of the regulations to clarify that the limits do not
apply to MY 2020 and later FFVs, where the emissions of those vehicles
are calculated in accordance with 40 CFR 600.510-12(c)(2)(v),
consistent with the intent of the 2012 final rule.
For additional discussion of the proposed rule changes, see the
direct final rule EPA has published in the ``Rules and Regulations''
section of today's Federal Register. This proposal incorporates by
reference all the reasoning, explanation, and regulatory text from the
direct final rule.
V. Statutory and Executive Order Reviews
Additional information about these statutes and Executive Orders
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.
B. Executive Order 13771: Reducing Regulations and Controlling
Regulatory Costs
This action is not expected to be an Executive Order 13771
regulatory action because this action is not significant under
Executive Order 12866.
C. Paperwork Reduction Act
This action does not impose any new information collection burden
under the PRA, since it merely clarifies and corrects existing
regulatory language. OMB has previously approved the information
collection activities contained in the existing regulations and has
assigned OMB control number of 2060-0104.
D. Regulatory Flexibility Act (RFA)
I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. In
making this determination, the impact of concern is any significant
adverse economic impact on small entities. An agency may certify that a
rule will not have a significant economic impact on a substantial
number of small entities if the rule relieves regulatory burden, has no
net burden or otherwise has a positive economic effect on the small
entities subject to the rule. This rule merely clarifies and corrects
existing regulatory language. We therefore anticipate no costs and
therefore no regulatory burden associated with this rule.
E. Unfunded Mandates Reform Act (UMRA)
This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect
small governments. The action imposes no enforceable duty on any state,
local or tribal governments. Requirements for the private sector do not
exceed $100 million in any one year.
F. Executive Order 13132: Federalism
This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.
G. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have tribal implications as specified in
Executive Order 13175. This rule only corrects and clarifies regulatory
provisions that apply to light-duty vehicle manufacturers. Tribal
governments would be affected only to the extent they purchase and use
regulated vehicles. Thus, Executive Order 13175 does not apply to this
action.
H. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
This action is not subject to Executive Order 13045 because it is
not economically significant as defined in Executive Order 12866, and
because the EPA does not believe the environmental health or safety
risks addressed by this action present a disproportionate risk to
children. This proposed rule merely corrects and clarifies previously
established regulatory provisions.
I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution or Use
This action is not subject to Executive Order 13211, because it is
not a significant regulatory action under Executive Order 12866.
J. National Technology Transfer and Advancement Act (NTTAA)
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note)
[[Page 53725]]
directs EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. NTTAA directs agencies to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards.
This action modifies existing regulations to correct an error in
the regulations and therefore involves technical standards previously
established by EPA. The amendments to the regulations do not involve
the application of new technical standards. EPA is continuing to use
the technical standards previously established in its rules regarding
the light-duty vehicle GHG standards for MYs 2017-2025. See 77 FR 62960
and 85 FR 25265.
K. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
The EPA believes that this action does not have disproportionately
high and adverse human health or environmental effects on minority
populations, low-income populations and/or indigenous peoples, as
specified in Executive Order 12898 (59 FR 7629, February 16, 1994).
This regulatory action merely corrects previously established
provisions that auto manufacturers use to demonstrate compliance for
light-duty vehicles.
List of Subjects in 40 CFR Part 600
Environmental protection, Administrative practice and procedure,
Electric power, Fuel economy, Labeling, Reporting and recordkeeping
requirements.
Andrew Wheeler,
Administrator.
[FR Doc. 2020-17214 Filed 8-28-20; 8:45 am]
BILLING CODE 6560-50-P