[Federal Register Volume 85, Number 193 (Monday, October 5, 2020)]
[Notices]
[Pages 62724-62726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21931]


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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ- OAR-2020-0427; FRL 10015-29-OAR]


Alternative Method for Calculating Off-Cycle Credits Under the 
Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From 
North American Subaru, Inc.

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: EPA is requesting comment on applications from North American 
Subaru, Inc., (Subaru) 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

[[Page 62725]]

benefit is not adequately or entirely 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'' carbon dioxide (CO2) credits. Under 
the regulations, a manufacturer may apply for CO2 credits 
for 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. Subaru has submitted 
applications that describe methodologies for determining off-cycle 
credits from high efficiency alternator and brushless motor 
technologies. Subaru's application is limited to 2017 and later model 
year vehicles for the high efficiency alternator and 2019 model year 
and later as the brushless motor technology is adopted across Subaru's 
product line. Pursuant to applicable regulations, EPA is making 
descriptions of the manufacturers' off-cycle credit calculation 
methodologies available for public comment.

DATES: Comments must be received on or before November 4, 2020.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ- 
OAR-2020-0427, 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 Once submitted, comments cannot be edited or withdrawn.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: David Wright, 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) 214-4467. 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 or entirely 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. In cases where 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 captured by 
the GHG compliance tests, including high speeds, hard accelerations, 
and cold temperatures. Credits determined according to either of these 
methodologies do not undergo additional public review. 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;
     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

    Using the alternative methodology approach discussed above, Subaru 
is applying for credits for model years 2017 and later. Subaru has 
applied for

[[Page 62726]]

off-cycle credits using the alternative demonstration methodology 
pathway for the following technologies: high efficiency alternator and 
brushless motor. The application covers 2017 model year and later 
vehicles. The methodologies described by Subaru are generally 
consistent with those used by other manufacturers to determine similar 
credit values.

----------------------------------------------------------------------------------------------------------------
                                                                   Total credit   A/C on  (g CO2/   A/C off  (g
                     Brushless motor credits                        (g CO2/mi)          mi)           CO2/mi)
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Manual A/C......................................................             0.4             0.2             0.2
Automatic A/C...................................................             0.4             0.3             0.1
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------------------------------------------------------------------------
            High efficiency alternator on % of baseline level
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                                                            Credit  (g/
                   VDA efficiency  (%)                         mile)
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67......................................................             0.0
68......................................................             0.2
69......................................................             0.3
70......................................................             0.5
71......................................................             0.6
72......................................................             0.8
73......................................................             1.0
74......................................................             1.1
75......................................................             1.3
76......................................................             1.4
77......................................................             1.6
78......................................................             1.8
79......................................................             1.9
80......................................................             2.1
81......................................................             2.2
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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 Subaru (with confidential business information redacted) 
have been placed in the public docket (see ADDRESSES section above) and 
on EPA's website at http://www.epa.gov/otaq/regs/ld-hwy/greenhouse/ld-ghg.htm. 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. An EPA decision regarding these 
off-cycle credit requests will only apply to the vehicles and model 
years specified in the applications submitted by each manufacturer. 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 http://www.epa.gov/otaq/regs/ld-hwy/greenhouse/ld-ghg.htm. 
An EPA decision to approve off-cycle credit requests would only apply 
to the manufacturers, model years, vehicles, and technologies specified 
in the credit applications. Such decision would not apply to other 
vehicles or vehicles from other manufacturers. 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: September 29, 2020.
Byron Bunker,
Director, Compliance Division, Office of Transportation and Air 
Quality, Office of Air and Radiation.
[FR Doc. 2020-21931 Filed 10-2-20; 8:45 am]
BILLING CODE 6560-50-P