[Federal Register Volume 85, Number 169 (Monday, August 31, 2020)]
[Rules and Regulations]
[Pages 53676-53679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17217]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 600
[EPA-HQ-OAR-2020-0314; FRL-10012-25-OAR]
RIN 2060-AU89
Technical Correction to the Flex-Fuel Vehicle Provisions in CAFE
Regulations
AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.
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SUMMARY: This direct final rule corrects 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 rulemaking
action is not expected to result in any significant changes in
regulatory burdens or costs.
DATES: This rule is effective on November 30, 2020 without further
notice, unless EPA receives adverse comment by October 15, 2020. If EPA
receives adverse comment, we will publish a timely withdrawal in the
Federal Register informing the public that the rule, or the relevant
provisions of this rule on which EPA received adverse comment, will not
take effect.
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 using a direct final rule?
EPA is publishing this rule without a prior proposed rule because
we view this as a noncontroversial action and anticipate no adverse
comment. EPA believes this to be the case because the direct final rule
corrects an error in the regulations and the corrections will allow the
program to be implemented as originally intended, consistent with the
original final rule. However, in the ``Proposed Rules'' section of this
issue of the Federal Register, we are publishing a separate document
that will serve as the proposed rule to correct the regulations if
adverse comments are received on this direct final rule. We will not
institute a second comment period on this action. Any parties
interested in commenting must do so at this time. For further
information about commenting on this rule, see the ADDRESSES section of
this document.
If EPA receives adverse comment, we will publish a timely
withdrawal in the Federal Register informing the public that this
direct final rule will not take effect. If we receive adverse comment
on a distinct provision of this rulemaking, we will publish a timely
withdrawal in the Federal Register indicating which provisions we are
withdrawing. The provisions that are not withdrawn will become
effective on the date set out above, notwithstanding adverse
[[Page 53677]]
comment on any other provision. We would address all public comments in
any subsequent final rule based on the proposed rule.
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.
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NAICS Examples of potentially
Category codes \A\ 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. Direct Final Rule Provisions
This direct final rule corrects 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, 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
[[Page 53678]]
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 direct final rule corrects 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.
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 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 direct final 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)
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
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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.
L. Congressional Review Act (CRA)
This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is not a ``major rule'' as defined by 5
U.S.C. 804(2).
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.
For the reasons set forth in the preamble, the Environmental
Protection Agency is amending part 600 of title 40, Chapter I of the
Code of Federal Regulations as follows:
PART 600--FUEL ECONOMY AND GREENHOUSE GAS EXHAUST EMISSIONS OF
MOTOR VEHICLES
0
1. The authority citation for part 600 continues to read as follows:
Authority: 49 U.S.C. 32901-23919q, Pub. L. 109-58.
Subpart F--Procedures for Determining Manufacturer's Average Fuel
Economy and Manufacturer's Average Carbon-Related Exhaust Emissions
0
2. Section 600.510-12 is amended by revising paragraphs (h)
introductory text and (h)(1) to read as follows:
Sec. 600.510-12 Calculation of average fuel economy and average
carbon-related exhaust emissions.
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(h) The increase in average fuel economy determined in paragraph
(c) of this section attributable to dual fueled automobiles is subject
to a maximum value through model year 2019 that applies separately to
each category of automobile specified in paragraph (a)(1) of this
section. The increase in average fuel economy attributable to vehicles
fueled by electricity or, for model years 2016 and later, by compressed
natural gas, is not subject to a maximum value. The increase in average
fuel economy attributable to alcohol dual fuel model types calculated
under paragraph (c)(2)(v) of this section is also not subject to a
maximum value. The following maximum values apply under this paragraph
(h):
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Maximum
Model year increase (mpg)
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1993-2014............................................... 1.2
2015.................................................... 1.0
2016.................................................... 0.8
2017.................................................... 0.6
2018.................................................... 0.4
2019.................................................... 0.2
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(1) The Administrator shall calculate the increase in average fuel
economy to determine if the maximum increase provided in this paragraph
(h) has been reached. The Administrator shall calculate the increase in
average fuel economy for each category of automobiles specified in
paragraph (a)(1) of this section by subtracting the average fuel
economy values calculated in accordance with this section, assuming all
alcohol dual fueled automobiles subject to the provisions of paragraph
(c)(2)(iv) of this section are operated exclusively on gasoline (or
diesel fuel), from the average fuel economy values determined in
paragraph (c) of this section. The difference is limited to the maximum
increase specified in this paragraph (h).
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[FR Doc. 2020-17217 Filed 8-28-20; 8:45 am]
BILLING CODE 6560-50-P