[Federal Register Volume 89, Number 83 (Monday, April 29, 2024)]
[Rules and Regulations]
[Pages 33196-33203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09105]


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DEPARTMENT OF ENERGY

10 CFR Part 611

RIN 1901-AB60


Statutory Updates to the Advanced Technology Vehicles 
Manufacturing Program

AGENCY: Loan Programs Office, Department of Energy.

ACTION: Direct final rule.

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SUMMARY: The Department of Energy (``DOE'') issues this direct final 
rule to amend the regulations implementing the direct loan provisions 
for the Advanced Technology Vehicles Manufacturing Incentive Program 
established by section 136 of the Energy Independence and Security Act 
of 2007, as amended (``ATVM statute''). The ATVM statute provides for 
grants and loans to eligible automobile manufacturers and component 
suppliers for projects that

[[Page 33197]]

reequip, expand, or establish manufacturing facilities in the United 
States to produce qualifying advanced technology vehicles or qualifying 
components. Specifically, this rule: amends the existing applicable 
regulations in order to implement additional categories of advanced 
technology vehicles added to the ATVM statute by the Infrastructure 
Investment and Jobs Act and funded by the Inflation Reduction Act of 
2022, including certain medium-duty and heavy-duty vehicles, trains, 
locomotives, maritime vessels, aircraft, and hyperloop technology. This 
rule also amends the existing applicable regulations to reflect the 
ultra efficient vehicle category of advanced technology vehicles added 
to the ATVM statute through an earlier appropriations act. DOE is 
implementing these amendments through a final rule so that the 
implementing regulations are consistent with the statutory requirements 
of the ATVM statute.

DATES: This final rule is effective July 15, 2024, unless adverse 
comment is received by May 29, 2024. If adverse comments are received 
that DOE determines may provide a reasonable basis for withdrawal of 
the direct final rule, a timely withdrawal of this rule will be 
published in the Federal Register.

ADDRESSES: Interested persons may submit comments, identified by RIN 
1901-AB60, by any of the following methods:
    Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    Electronic Mail (Email): [email protected]. 
Include the RIN 1901-AB60 in the subject line of the message.
    Postal Mail: Loan Programs Office, Attn: LPO Legal Department, U.S. 
Department of Energy, 1000 Independence Avenue SW, Washington, DC 
20585-0121. Please submit one signed original paper copy. Due to 
potential delays in DOE's receipt and processing of mail sent through 
the U.S. Postal Service, we encourage respondents to submit comments 
electronically to ensure timely receipt.
    Hand Delivery/Courier: U.S. Department of Energy, Room 4B-122, 1000 
Independence Avenue SW, Washington, DC 20585.
    No telefacsimiles (faxes) will be accepted. For detailed 
instructions on submitting comments and additional information on the 
rulemaking process, see section IV of this document, Public 
Participation.
    Docket: The docket, which includes Federal Register notices, 
comments, and other supporting documents and materials, is available 
for review at www.regulations.gov. All documents in the docket are 
listed in the www.regulations.gov index. However, some documents listed 
in the index, such as those containing information that is exempt from 
public disclosure, may not be publicly available. The docket web page 
can be found at the www.regulations.gov web page associated with RIN 
1901-AB60. The docket web page contains simple instructions on how to 
access all documents, including public comments, in the docket. See 
section IV of this document, Public Participation, for information on 
how to submit comments through www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Steven Westhoff, Attorney-Adviser, 
Loan Programs Office, email: [email protected], or phone: 
(240) 220-4994.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction and Background
II. Discussion
III. Section-by-Section Analysis
IV. Public Participation
V. Regulatory and Notices Analysis
VI. Approval of the Office of the Secretary

I. Introduction and Background

A. ATVM Statute and Regulations

    Section 136 of the Energy Independence and Security Act of 2007, as 
amended (42 U.S.C. 17013) (``ATVM statute'') authorizes the Secretary 
of Energy (``Secretary'') to issue grants and direct loans to 
applicants for the costs of reequipping, expanding, or establishing 
manufacturing facilities in the United States to produce qualified 
advanced technology vehicles or qualifying components. The ATVM statute 
also authorizes the Secretary to issue grants and direct loans for the 
costs of engineering integration performed in the United States of 
qualifying advanced technology vehicles and qualifying components. The 
Advanced Technology Vehicles Manufacturing Loan Program (``ATVM 
Program'') represents the Secretary's implementation of the direct loan 
authority under the ATVM statute. The ATVM Program is administered by 
the U.S. Department of Energy's (``DOE'') Loan Programs Office 
(``LPO''). The purpose of the ATVM Program is to originate, underwrite, 
and service loans to eligible automotive manufacturers and component 
manufacturers to finance the cost of: (i) reequipping, expanding, or 
establishing manufacturing facilities in the United States to produce 
Advanced Technology Vehicles (``ATVs'') and qualifying components; and 
(ii) engineering integration performed in the United States of ATVs and 
qualifying components.
    Consistent with section 17013(e) of title 42 of the United States 
Code (``U.S.C.''), DOE promulgated regulations for the ATVM Program in 
2009, which are set forth at 10 Code of Federal Regulations (``CFR'') 
part 611.\1\ Part 611 provides eligibility criteria for automobile 
manufacturers, project eligibility requirements, and application 
requirements and general terms for the ATVM Program. Part 611 has since 
been amended twice to: (1) standardize the submission and handling 
within DOE's assistance programs, of trade secrets and commercial or 
financial information that is privileged or confidential \2\ and (2) 
clarify the eligibility of critical minerals projects.\3\
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    \1\ 73 FR 66721 (November 12, 2008).
    \2\ 76 FR 26579 (May 9, 2011).
    \3\ 86 FR 3747 (January 15, 2021).
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B. Energy and Water Development and Related Agencies Appropriations Act 
of 2010

    Section 312 of the Energy and Water Development and Related 
Agencies Appropriations Act of 2010 \4\ amended the ATVM statute to 
include the ultra efficient vehicle category within the statutory 
definition of ATVs. In this final rule, DOE is adding this category of 
vehicles to part 611 to reflect the ATVM statute.
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    \4\ Public Law 111-85 (2009).
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C. Infrastructure Investment and Jobs Act

    Section 40401(b) of the Infrastructure Investment and Jobs Act 
(``IIJA'') \5\ amended the definitions provision of the ATVM statute to 
add the following categories of vehicles within the statutory 
definition of ATVs: a medium-duty vehicle or a heavy-duty vehicle that 
exceeds 125 percent of the greenhouse gas emissions and fuel efficiency 
standards established by the final rule of the Environmental Protection 
Agency entitled ``Greenhouse Gas Emissions and Fuel Efficiency 
Standards for Medium- and Heavy-Duty Engines and Vehicles-Phase 2'' (81 
FR 73478 (October 25, 2016)); a train or locomotive; a maritime vessel; 
an aircraft; and hyperloop technology.\6\
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    \5\ Public Law 117-58 (2021).
    \6\ Section 40401(l) of the IIJA prohibited the Secretary from 
using amounts appropriated prior to the date of the enactment of the 
IIJA to provide direct loans under section 136(d) for the costs of 
activities that were not eligible for those loans prior to that 
date. Public Law 117-58 (2021). However, this prohibition was later 
eliminated by the Consolidated Appropriations Act of 2023. Public 
Law 117-328 (2022).

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[[Page 33198]]

    In this final rule, DOE is adding these categories of vehicles to 
part 611 in order for them to be eligible for a direct loan under the 
ATVM Program.

D. Inflation Reduction Act

    The Inflation Reduction Act of 2022 (``IRA'') \7\ contains energy 
and climate provisions that appropriate $3 billion for the ATVM 
Program, including to support the categories of ATVs added to the 
program by the IIJA. However, section 50142 of the IRA, which provides 
the Secretary with the authority to use funds appropriated by the IRA 
for the costs of providing direct loans to the categories of ATVs added 
to the definition of ATV by the IIJA, also provides that, with respect 
to trains or locomotives; maritime vessels; aircraft; and hyperloop 
technology, such funds may be used for that purpose only if the 
relevant advanced technology vehicles emit, under any possible 
operational mode or condition, low or zero exhaust emissions of 
greenhouse gases. The IRA appropriations for the ATVM Program are 
available through September 30, 2028.
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    \7\ Public Law 117-169 (2022).
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E. Intended Future Rulemaking Process

    This direct final rule is focused on revising part 611 to implement 
additional categories of advanced technology vehicles that are already 
statutorily eligible. In addition to this current rulemaking, DOE 
expects to undertake a separate rulemaking to implement further 
improvements to part 611 based on experience implementing the ATVM 
Program and to potentially further define the requirements for nonroad 
advanced technology vehicle projects. In that separate rulemaking, DOE 
intends to issue a request for information requesting public feedback 
regarding ATVM Program design as related to the new categories of 
advanced technology vehicles and regarding potential demand for loans 
for manufacturing facilities for such ATVs, as well as invite 
additional public input regarding part 611 and the ATVM Program. 
Following further consideration of such issues and comments, which may 
include related comments received in response to this direct final 
rule, DOE may then issue a notice of proposed rulemaking proposing more 
expansive changes to part 611. In addition to the two rulemakings, DOE 
expects to conduct a broader set of updates to the ATVM Program 
guidance and application materials to reflect the changes in these 
rulemakings. DOE does not expect ATVM Program applicants in the new ATV 
categories relying on this direct final rule to be materially impacted 
by the future rulemaking.

II. Discussion

    This final rule allows the Secretary to implement the amendments to 
the ATVM statute enacted by the IIJA and funded by the IRA by codifying 
these requirements in the Code of Federal Regulations. Without 
revisions to part 611, applicants for projects that were made eligible 
for the ATVM Program under the IIJA and the IRA would not be eligible 
for direct loans under the regulations applicable to the ATVM Program. 
Further, the requirements applicable to the use of the funds provided 
for the cost of direct loans under the IRA for the applicable vehicle 
categories are not currently set forth in part 611.
    As such, this final rule amends the definition of ``advanced 
technology vehicle'' under part 611 to include the categories of ATVs 
added by the IIJA. It also amends the provisions describing the 
eligibility requirements for these new categories of ATVs as provided 
by the IRA and distinguishes between the requirements applicable to on-
road advanced technology vehicles and nonroad advanced technology 
vehicles. These technical and administrative changes to part 611 
represent conforming changes to the text of the ATVM statute, as 
amended by the IIJA and the IRA requirements applicable to the use of 
funds appropriated by the IRA for the ATVM Program. The final rule 
adopts the IRA requirement that projects for nonroad ATVs support only 
ATVs that ``emit, under any possible operational mode or condition, low 
or zero exhaust emissions of greenhouse gases'' for all nonroad ATV 
projects in order to prescribe a single eligibility standard.\8\
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    \8\ DOE notes that certain appropriations for the ATVM Program 
are not subject to the IRA requirement. However, DOE believes the 
IRA requirement demonstrates Congressional intent regarding how the 
ATVM Program should consider nonroad advanced technology vehicles as 
``advanced'' and therefore eligible for loans under the program.
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    For consistency and completeness, this direct final rule also makes 
conforming changes to reflect the earlier amendments to the ATVM 
statute that established the ultra efficient vehicles category of ATVs.

III. Section-by-Section Analysis

    Provided below is a section-by-section analysis of the changes made 
by this direct final rule.
Sec.  611.1 Purpose
    DOE is revising Sec.  611.1 to include legal references relating to 
the IIJA and the IRA, as well as the Energy and Water Development and 
Related Agencies Appropriations Act of 2010.
Sec.  611.2 Definitions
    DOE is revising the definition of ``advanced technology vehicle'' 
to include both on-road advanced technology vehicles and nonroad 
advanced technology vehicles; adding a definition of ``on-road advanced 
technology vehicle'' that includes ultra efficient vehicles, light duty 
vehicles, medium duty vehicles, and heavy duty vehicles, in each case 
as defined in the ATVM statute; adding a definition of ``nonroad 
advanced technology vehicle'' that includes low or zero emission trains 
or locomotives, maritime vessels, aircraft, and hyperloop technologies; 
and adding a definition of ``ultra efficient vehicle'' from the ATVM 
statute.
Sec.  611.3 On-Road Advanced Technology Vehicle
    DOE is revising Sec.  611.3 to refer to ``on-road advanced 
technology vehicles'' as this section describes program requirements 
that are specific to on-road vehicle manufacturers and not to 
manufacturers of nonroad advanced technology vehicles.
Sec.  611.4 Nonroad Advanced Technology Vehicle
    DOE is adding a new Sec.  611.4, ``Nonroad advanced technology 
vehicle'' to distinguish and describe the program requirements 
applicable to a manufacturer of a nonroad advanced technology vehicle 
or a manufacturer of a nonroad advanced technology vehicle qualifying 
component as provided by section 50142(a) of the IRA.
Sec.  611.100 Eligible Applicant
    DOE is revising Sec.  611.100 to distinguish between the 
requirements applicable to on-road advanced technology vehicle 
manufacturers and those applicable to nonroad advanced technology 
vehicle manufacturers. Due to the addition of new categories of on-road 
advanced technology vehicles, DOE is also clarifying, consistent with 
the current statute and pre-existing Sec.  611.100, that the specified 
improved fuel economy requirements of paragraph (b) continue to apply 
only to manufacturers of light duty vehicles.

[[Page 33199]]

IV. Public Participation

    DOE will accept comments, data, and information regarding this 
final rule on or before the date provided in the DATES section at the 
beginning of this final rule. Interested parties may submit comments, 
data, and other information using any of the methods described in the 
ADDRESSES section at the beginning of this document.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov web page will require you to provide your name and 
contact information. Your contact information will not be publicly 
viewable except for your first and last names, organization name (if 
any), and submitter representative name (if any). If your comment is 
not processed properly because of technical difficulties, DOE will use 
this information to contact you. If DOE cannot read your comment due to 
technical difficulties and cannot contact you for clarification, DOE 
may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment itself or in any documents attached to your 
comment. Any information that you do not want to be publicly viewable 
should not be included in your comment, nor in any document attached to 
your comment. Otherwise, persons viewing comments will see only first 
and last names, organization names, correspondence containing comments, 
and any documents submitted with the comments.
    Do not submit to www.regulations.gov information the disclosure of 
which is restricted by statute, such as trade secrets and commercial or 
financial information (hereinafter referred to as Confidential Business 
Information (``CBI'')). Comments submitted through www.regulations.gov 
cannot be claimed as CBI. Comments received through the website will 
waive any CBI claims for the information submitted. For information on 
submitting CBI, see the Confidential Business Information section.
    DOE processes submissions made through www.regulations.gov before 
posting. Normally, comments will be posted within a few days of being 
submitted. However, if large volumes of comments are being processed 
simultaneously, your comment may not be viewable for up to several 
weeks. Please keep the comment tracking number that www.regulations.gov 
provides after you have successfully uploaded your comment.
    Submitting comments via email, hand delivery/courier, or postal 
mail. Comments and documents submitted via email, hand delivery/
courier, or postal mail also will be posted to www.regulations.gov. If 
you do not want your personal contact information to be publicly 
viewable, do not include it in your comment or any accompanying 
documents. Instead, provide your contact information in a cover letter. 
Include your first and last names, email address, telephone number, and 
optional mailing address. The cover letter will not be publicly 
viewable as long as it does not include any comments.
    Include contact information each time you submit comments, data, 
documents, and other information to DOE. If you submit via postal mail 
or hand delivery/courier, please provide all items on a CD, if 
feasible, in which case it is not necessary to submit printed copies. 
No telefacsimiles (faxes) will be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are written in English, and that are free of any defects or viruses. 
Documents should not contain special characters or any form of 
encryption. If possible, documents should carry the electronic 
signature of the author.
    Confidential Business Information. Pursuant to 10 CFR 1004.11, any 
person submitting information that they believe to be confidential and 
exempt by law from public disclosure should submit via email, postal 
mail, or hand delivery/courier two well-marked copies: One copy of the 
document marked ``confidential'' including all the information believed 
to be confidential, and one copy of the document marked ``non-
confidential'' that deletes the information believed to be 
confidential. Submit these documents via email or on a CD, if feasible. 
DOE will make its own determination about the confidential status of 
the information and will treat it according to its determination. It is 
DOE's policy that all comments, including any personal information 
provided in the comments, may be included in the public docket, without 
change and as received, except for information deemed to be exempt from 
public disclosure.

V. Regulatory and Notices Analysis

A. Executive Orders 12866, 13563, and 14094

    Executive Order (``E.O.'') 12866, ``Regulatory Planning and 
Review,'' 58 FR 51735 (October 4, 1993), as supplemented and reaffirmed 
by E.O. 13563, ``Improving Regulation and Regulatory Review,'' 76 FR 
3821 (Jan. 21, 2011), and amended by E.O. 14094, ``Modernizing 
Regulatory Review,'' 88 FR 21879 (April 11, 2023), requires agencies, 
to the extent permitted by law, to (1) propose or adopt a regulation 
only upon a reasoned determination that its benefits justify its costs 
(recognizing that some benefits and costs are difficult to quantify); 
(2) tailor regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives, taking into account, 
among other things, and to the extent practicable, the costs of 
cumulative regulations; (3) select, in choosing among alternative 
regulatory approaches, those approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity); (4) to the 
extent feasible, specify performance objectives, rather than specifying 
the behavior or manner of compliance that regulated entities must 
adopt; and (5) identify and assess available alternatives to direct 
regulation, including providing economic incentives to encourage the 
desired behavior, such as user fees or marketable permits, or providing 
information upon which choices can be made by the public. DOE 
emphasizes as well that E.O. 13563 requires agencies to use the best 
available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible. In its guidance, the 
Office of Information and Regulatory Affairs (``OIRA'') has emphasized 
that such techniques may include identifying changing future compliance 
costs that might result from technological innovation or anticipated 
behavioral changes. For the reasons stated in the preamble, this 
regulatory action is consistent with these principles.
    Section 6(a) of E.O. 12866 requires agencies to submit 
``significant regulatory actions'' to OIRA for review. This final rule 
has been determined to be a ``significant regulatory action'' under 
E.O. 12866. Accordingly, this action was subject to review by OIRA.
    Section 6(a) of E.O. 12866 requires an agency issuing a 
``significant regulatory action'' to provide an assessment of the 
potential costs and benefits of the regulatory action. To that end, DOE 
has further assessed the qualitative and quantitative costs and 
benefits of this direct final rule.
    As discussed in previous sections of this direct final rule, DOE is 
aligning its regulations with the statutory

[[Page 33200]]

requirements for the voluntary federal loan program provided in the 
ATVM statute. However, DOE has considered the costs and benefits in 
this analysis for transparency. DOE does not expect the costs and 
benefits associated with applying to the ATVM Program in connection 
with the new categories of ATVs to deviate materially from the costs 
associated with the current categories of ATVs. The estimated costs of 
completing an application for a newly eligible project under the direct 
final rule are detailed in the current Paperwork Reduction Act burden 
analysis: $27,075 per applicant. While the range of advanced ATVs and 
qualifying components projects may broaden under the amendments under 
this direct final rule, DOE anticipates receiving the previously 
estimated 40 annual applications to the ATVM Program across all vehicle 
categories, resulting in the same estimated $1,083,000 combined annual 
cost to applicants as articulated in DOE's current burden analysis. As 
DOE has previously noted, much of the financial and technical 
information and other activities required as part of an ATVM Program 
loan application is required of an applicant that is raising equity, 
seeking a loan in the private sector, or exploring other financing 
sources for a project of similar complexity, size, and risk.
    DOE estimated its annual costs in administering the ATVM Program 
for fiscal year 2024 to be $25,000,000.\9\ DOE anticipates that the new 
ATV classes will produce 2-4 more loan applications per year in the 12 
months following the effectiveness of this direct final rule. Given the 
above-mentioned cost estimates of $27,075 per applicant, that would 
amount to between $54,150 and $108,300 per year in costs borne by 
industry for these ATV applications. At the same time, DOE expects a 
natural decrease in the number of applications from the prior ATV 
categories, as parties planning projects under those categories have 
already applied to the ATVM Program, leaving the overall volume of ATVM 
Program applications steady over the next few years. Given the number 
of loan applications generated by nonroad vehicle technologies, DOE 
does not anticipate requiring additional resources, personnel, or staff 
time compared to its baseline to process applications in new ATV 
categories. DOE has issued eight loans for a total of more than $10 
billion obligated to borrowers, with a further conditional commitment 
of eight more loans and $16 billion more dollars. In total, this would 
suggest on average a loan amount of roughly $1.73 billion per loan, 
although many loans are expected to be less than $1 billion. To the 
extent any of the loan applications for nonroad technology classes 
introduced by this rulemaking are successful, without additional 
information on the size of the loan requests at this stage DOE would 
anticipate a similar level of transfer. DOE does not anticipate any 
greater administrative costs to the Federal Government resulting from 
this direct final rule.
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    \9\ See DOE's Fiscal Year 2024 Budget Justification, Loan 
Programs Office Summary, available at https://www.energy.gov/sites/default/files/2023-03/doe-fy-2024-budget-vol-3-lpo-v2.pdf.
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    While the ATVM Program has no application fee, each applicant would 
incur the following costs: costs by DOE's independent advisors in 
connection with the applicant's project; and a fee at the time of 
closing of a loan, equal to 10 basis points (0.1%) of the principal 
amount of the loan. The interest rate associated with an ATVM Program 
loan is equal to the U.S. Treasury-equivalent yield curve with zero 
credit spread.
    Like other federal credit programs, the ATVM Program accounts for 
the cost of each individual loan in accordance with the Federal Credit 
Reform Act of 1990, as amended (2 U.S.C. 661 et seq.) (``FCRA''), which 
requires agencies to estimate the cost to the government of extending 
or guaranteeing credit. This cost, referred to as credit subsidy cost, 
equals the net present value of estimated cash flows from the 
government minus estimated cash flows to the government over the life 
of the loan and excluding administrative costs. In accordance with 
FCRA, the non-administrative cost to the Federal Government of issuing 
each individual loan under the ATVM Program must be estimated, using a 
model provided by the Office of Management and Budget (``OMB'').
    The benefits of this direct final rule derive from facilitating the 
applications for statutorily eligible projects under the ATVM Program. 
Under the existing part 611 and over the course of the ATVM Program, 
DOE has financed facilities for the manufacturing of advanced 
automobiles, as well as more recently for the manufacturing of electric 
vehicle batteries and battery-grade critical minerals. Throughout its 
history, the ATVM Program has issued eight total loans, and more than 
$10 billion has been obligated to borrowers. Since the passage of the 
IIJA, the ATVM Program has added two loans to its portfolio: Ultium 
Cells and Syrah Technologies.
    Loans for relatively newer low or zero emissions vehicle 
technologies might differ from loans for the existing vehicle 
definitions. At present, DOE does not have an estimate on the average 
size of a loan for the additional categories of nonroad vehicles added 
to the ATVM Program by this rule, nor does DOE have an estimate for the 
failure rate of loans for nonroad technologies. These are important 
considerations when projecting the impact the nonroad vehicle classes 
will have on available ATVM Program funds. For example, if project 
failure rates are relatively higher for the nonroad vehicle classes, 
then DOE might make different decisions on the size of disbursed funds 
based on the likelihood of retrieving loaned amounts. Similarly, if 
loans tend to be relatively larger in this space, then the pool of 
funding might be exhausted faster as loan applications are approved 
than in DOE's previous experience. As DOE develops more experience with 
loan applications for nonroad technologies, DOE will consider providing 
additional guidance or rulemaking.
    To date, projects that have been financed in part by ATVM Program 
loans have produced vehicles that are estimated to have saved over 19 
billion gallons of gasoline, equivalent to a cumulative 26 million 
metric tons of carbon dioxide emissions, and created more than 43,000 
direct jobs across eight states. DOE has issued conditional commitments 
for eight additional projects, potentially totaling over $16 billion in 
ATVM Program loans, that would further contribute to the reduction of 
vehicle emissions and to the creation of new domestic manufacturing 
opportunities. Through the ATVM Program, domestic and foreign 
automakers and manufacturers have deployed advanced technologies, saved 
or created thousands of jobs, reduced costs for consumers through 
increased fuel efficiency, and enhanced U.S. energy independence and 
security. DOE anticipates that this direct final rule will, consistent 
with current law, potentially advance the same types of benefits seen 
in existing and pending ATVM Program loans across a broader range of 
advanced technology vehicles and qualifying components.
    A final consideration for the addition of new vehicle classes is 
the spillover impacts the new vehicle classes might have on existing 
classes. The IRA provided $3 billion in additional funding for the ATVM 
Program, including for the purpose of nonroad vehicle technologies. 
This funding is also available for technologies currently eligible for 
ATVM Program loans. To the extent that loan demand increases for 
existing technologies, it is possible that funding might become limited 
for

[[Page 33201]]

nonroad vehicles. In the reverse case, where nonroad loan demand is 
especially high, the loan amounts for currently eligible technologies 
might decrease. DOE does not believe that demand for loans will exceed 
the point such that either of the above are practical concerns, but 
does note that in the event of this possibility, further communication 
might be necessary.

B. Administrative Procedure Act

    The Administrative Procedure Act (5 U.S.C. 551 et seq.) (``APA'') 
exempts from the APA's notice and comment procedures under 5 U.S.C. 
553(b) and (c) rulemakings that involve matters relating to public 
property, loans, grants, benefits, or contracts. (5 U.S.C. 553(a)(2)). 
As this rule relates to the issuance of loans, DOE has determined that 
notice of proposed rulemaking (and comment thereon) is not required.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that 
an agency prepare an initial regulatory flexibility analysis for any 
rule that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. As required 
by Executive Order 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE published 
procedures and policies on February 19, 2003, to ensure that the 
potential impacts of its rules on small entities are properly 
considered during the rulemaking process (68 FR 7990).
    This final rule updates part 611. DOE is not obligated to prepare a 
regulatory flexibility analysis for this rulemaking because there is 
not a requirement to publish a general notice of proposed rulemaking 
for rules related to loans under the APA. (See 5 U.S.C. 553(a)(2)). 
Furthermore, this direct final rule implements, without substantive 
change, amendments to the ATVM statute and applicable provisions from 
the IRA.

D. Paperwork Reduction Act of 1995

    The final rule would impose no new information or record keeping 
requirements. Accordingly, OMB clearance is not required under the 
Paperwork Reduction Act. (See 42 U.S.C. 3501 et seq.). The information 
collection necessary to administer DOE loans under the ATVM Program 
under 10 CFR part 611 is subject to approval under the Paperwork 
Reduction Act. The information collection provisions of this part were 
previously approved by the OMB under OMB Control Number 1910-5137.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB Control Number.

E. National Environmental Policy Act of 1969

    In this rule, DOE amends part 611 to add additional categories of 
advanced technology vehicles authorized to be considered eligible for 
loans under the ATVM Program. DOE has determined that this final rule 
qualifies for categorical exclusion under 10 CFR part 1021, subpart D 
Appendix A5 as a rulemaking that amends an existing rule or regulation 
(i.e., part 611) without changing the environmental effect of that 
rule. Therefore, DOE has determined that this final rule is not a major 
Federal action significantly affecting the quality of the human 
environment within the meaning of NEPA and does not require an 
environmental assessment or an environmental impact statement. Through 
the issuance of this rule, DOE is making no decision relative to the 
approval of a loan for a particular project. DOE would prepare 
appropriate NEPA review for any proposed project.

F. Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
executive agencies the general duty to adhere to the following 
requirements: (1) eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction.
    With regard to the review required by section 3(a), section 3(b) of 
Executive Order 12988 specifically requires, in pertinent part, that 
executive agencies make every reasonable effort to ensure that the 
regulation: (1) clearly specifies the preemptive effect, if any; (2) 
clearly specifies any effect on existing Federal law or regulation; (3) 
provides a clear legal standard for affected conduct while promoting 
simplification and burden reduction; (4) specifies the retroactive 
effect, if any; (5) adequately defines key terms; and (6) addresses 
other important issues affecting clarity and general draftsmanship 
under any guidelines issued by the Attorney General.
    Section 3(c) of Executive Order 12988 requires Executive agencies 
to review regulations in light of applicable standards in section 3(a) 
and section 3(b) to determine whether they are met or it is 
unreasonable to meet one or more of them.
    DOE has completed the required review and determined that, to the 
extent permitted by law, this rule meets the relevant standards of 
Executive Order 12988.

G. Executive Order 13132

    Executive Order 13132, ``Federalism,'' \10\ imposes certain 
requirements on agencies formulating and implementing policies or 
regulations that preempt State law or that have federalism 
implications. Agencies are required to examine the constitutional and 
statutory authority supporting any action that would limit the 
policymaking discretion of the States and to carefully assess the 
necessity for such actions. The Executive order also requires agencies 
to have an accountable process to ensure meaningful and timely input by 
State and local officials in the development of regulatory policies 
that have federalism implications. On March 14, 2000, DOE published a 
statement of policy describing the intergovernmental consultation 
process it will follow in the development of such regulations.\11\
---------------------------------------------------------------------------

    \10\ 64 FR 43255 (August 4, 1999).
    \11\ 65 FR 13735 (March 14, 2000).
---------------------------------------------------------------------------

    DOE has examined this final rule and has determined that it will 
not preempt State law and will not have a substantial direct effect 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. Accordingly, no further action is 
required by Executive Order 13132.

H. Executive Order 13175

    Under Executive Order 13175, ``Consultation and Coordination with 
Indian Tribal Governments,'' \12\ DOE may not issue a discretionary 
rule that has ``Tribal'' implications and imposes substantial direct 
compliance costs on Indian Tribal governments. DOE has determined that 
this final rule will not have such effects and has concluded that 
Executive Order 13175 does not apply to this final rule.
---------------------------------------------------------------------------

    \12\ 65 FR 67249 (November 9, 2000).

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[[Page 33202]]

I. Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (``UMRA'') 
\13\ requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and tribal governments and the 
private sector. For a proposed regulatory action likely to result in a 
rule that may cause the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector of $100 million 
or more in any one year (adjusted annually for inflation), section 202 
of UMRA requires a Federal agency to publish a written statement that 
estimates the resulting costs, benefits, and other effects on the 
national economy (2 U.S.C. 1532(a) and (b)). UMRA also requires a 
Federal agency to develop an effective process to permit timely input 
by elected officers of State, local, and tribal governments on a 
proposed ``significant intergovernmental mandate'' and requires an 
agency plan for giving notice and opportunity for timely input to 
potentially affected small governments before establishing any 
requirements that might significantly or uniquely affect small 
governments. On March 18, 1997, DOE published a statement of policy on 
its process for intergovernmental consultation under UMRA.\14\ DOE 
examined this final rule according to UMRA and its statement of policy 
and has determined that the final rule contains neither an 
intergovernmental mandate nor a mandate that may result in the 
expenditure of $100 million or more in any year by State, local, and 
tribal governments, in the aggregate, or by the private sector. The 
final rule establishes only requirements that are a condition of 
Federal assistance or a duty arising from participation in a voluntary 
program. Accordingly, no further assessment or analysis is required 
under UMRA.
---------------------------------------------------------------------------

    \13\ Public Law 104-4 (1995).
    \14\ 62 FR 12820 (March 18, 1997); also available at 
www.energy.gov/gc/office-general-counsel.
---------------------------------------------------------------------------

J. Treasury and General Government Appropriations Act of 1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 \15\ requires Federal agencies to issue a Family Policymaking 
Assessment for any proposed rule that may affect family well-being. 
This final rule will not have any impact on the autonomy or integrity 
of the family as an institution. Accordingly, DOE has concluded that it 
is not necessary to prepare a Family Policymaking Assessment.
---------------------------------------------------------------------------

    \15\ Public Law 105-277 (1998); 5 U.S.C. 601 note.
---------------------------------------------------------------------------

K. Treasury and General Government Appropriations Act, 2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 \16\ provides for Federal agencies to review most 
disseminations of information to the public under guidelines 
established by each agency pursuant to general guidelines issued by 
OMB. OMB's guidelines were published at 67 FR 8452 (February 22, 2002), 
and DOE's guidelines were published at 67 FR 62446 (October 7, 2002). 
Pursuant to OMB Memorandum M-19-15, ``Improving Implementation of the 
Information Quality Act'' (April 24, 2019), DOE published updated 
guidelines which are available at: https://www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf.
---------------------------------------------------------------------------

    \16\ Public Law 106-554 (2000); 44 U.S.C. 3516 note.
---------------------------------------------------------------------------

    DOE has reviewed this final rule under the OMB and DOE guidelines 
and has concluded that it is consistent with applicable policies in 
those guidelines.

L. Executive Order 13211

    Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use,'' \17\ 
requires Federal agencies to prepare and submit to the OMB, a Statement 
of Energy Effects for any proposed significant energy action. A 
``significant energy action'' is defined as any action by an agency 
that promulgated or is expected to lead to promulgation of a final 
rule, and that: (1) is a significant regulatory action under Executive 
Order 12866, or any successor order; and (2) is likely to have a 
significant adverse effect on the supply, distribution, or use of 
energy, or (3) is designated by the Administrator of OIRA as a 
significant energy action. For any proposed significant energy action, 
the agency must give a detailed statement of any adverse effects on 
energy supply, distribution, or use should the proposal be implemented, 
and of reasonable alternatives to the action and their expected 
benefits on energy supply, distribution, and use. This regulatory 
action will not have a significant adverse effect on the supply, 
distribution, or use of energy and is therefore not a significant 
energy action. Accordingly, DOE has not prepared a Statement of Energy 
Effects.
---------------------------------------------------------------------------

    \17\ 66 FR 28355 (May 22, 2001).
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M. Congressional Review Act

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of this rule. The report will state that OIRA has 
determined that the rule meets the criteria set forth in 5 U.S.C. 
804(2).

VI. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this direct 
final rule.

List of Subjects in 10 CFR Part 611

    Administrative practice and procedure, Energy, Loan programs, 
Reporting and recordkeeping requirements.

Signing Authority

    This document of the Department of Energy was signed on April 23, 
2024, by Jigar Shah, Executive Director, Loan Programs Office, pursuant 
to delegated authority from the Secretary of Energy. That document with 
the original signature and date is maintained by DOE. For 
administrative purposes only, and in compliance with requirements of 
the Office of the Federal Register, the undersigned DOE Federal 
Register Liaison Officer has been authorized to sign and submit the 
document in electronic format for publication, as an official document 
of the Department of Energy. This administrative process in no way 
alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on April 24, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

    For the reasons stated in the preamble, DOE amends part 611 of 
chapter II of title 10 of the Code of Federal Regulations as set forth 
below:

PART 611--ADVANCED TECHNOLOGY VEHICLES MANUFACTURER ASSISTANCE 
PROGRAM

0
1. The authority citation for part 611 is revised to read as follows:

    Authority:  Pub. L. 110-140 (42 U.S.C. 17013), Pub. L. 110-329, 
Pub. L. 111-85, Pub. L. 117-58.


0
2. Revise Sec.  611.1 to read as follows:


Sec.  611.1  Purpose.

    This part is issued by the Department of Energy (DOE) pursuant to 
section 136 of the Energy Independence and Security Act of 2007, Public 
Law 110-140, as amended by section 129 of Consolidated Security, 
Disaster Assistance, and Continuing

[[Page 33203]]

Appropriations Act of 2009, Public Law 110-329, section 312 of Energy 
and Water Development and Related Agencies Appropriations Act of 2010, 
Public Law 111-85, section 40401(b) of the Infrastructure Investment 
and Jobs Act, Public Law 117-58, and section 50142 of the Inflation 
Reduction Act of 2022, Public Law 117-169. Specifically, section 136(e) 
directs DOE to promulgate an interim final rule establishing 
regulations that specify eligibility criteria and that contain other 
provisions that the Secretary deems necessary to administer this 
section and any loans made by the Secretary pursuant to this section.


0
3. Amend Sec.  611.2 by:
0
a. Revising the definitions for ``Advanced technology vehicle'' and;
0
b. Adding, in alphabetical order, definitions for ``Nonroad advanced 
technology vehicle'', ``On-road advanced technology vehicle'', and 
``Ultra efficient vehicle''.
    The additions and revision read as follows:


Sec.  611.2   Definitions.

* * * * *
    Advanced technology vehicle means an on-road advanced technology 
vehicle or a nonroad advanced technology vehicle.
* * * * *
    Nonroad advanced technology vehicle means:
    (1) A train or locomotive;
    (2) A maritime vessel;
    (3) An aircraft; and
    (4) Hyperloop technology
    That, in each case, emit, under any possible operational mode or 
condition, low or zero exhaust emissions of greenhouse gases.
    On-road advanced technology vehicle means
    (1) An ultra efficient vehicle or a light duty vehicle that meets--
    (i) The Bin 5 Tier II emission standard established in regulations 
issued by the Administrator of the Environmental Protection Agency 
under section 202(i) of the Clean Air Act (the Act) (42 U.S.C. 
7521(i)), as of the date of application, or a lower-numbered Bin 
emission standard;
    (ii) Any new emission standard in effect for fine particulate 
matter prescribed by the Administrator under the Act (42 U.S.C. 7401 et 
seq.), as of the date of application; and
    (iii) At least 125 percent of the harmonic production weighted 
average combined fuel economy, for vehicles with substantially similar 
attributes in model year 2005.
    (2) A medium duty vehicle or heavy duty vehicle that exceeds 125 
percent of the greenhouse gas emissions and fuel efficiency standards 
established by the final rule of the Environmental Protection Agency 
entitled ``Greenhouse Gas Emissions and Fuel Efficiency Standards for 
Medium- and Heavy-Duty Engines and Vehicles--Phase 2'' (81 FR 73478 
(October 25, 2016)).
* * * * *
    Ultra efficient vehicle means a fully closed compartment vehicle 
designed to carry at least 2 adult passengers that achieves--
    (1) At least 75 miles per gallon while operating on gasoline or 
diesel fuel;
    (2) At least 75 miles per gallon equivalent while operating as a 
hybrid electric-gasoline or electric-diesel vehicle; or
    (3) At least 75 miles per gallon equivalent while operating as a 
fully electric vehicle.


0
4. Amend Sec.  611.3 by revising the section heading, the introductory 
text, and paragraph (a) to read as follows:


Sec.  611.3  On-road advanced technology vehicle.

    In order to demonstrate that a light duty vehicle is an ``on-road 
advanced technology vehicle'', an automobile manufacturer must provide 
the following:
    (a) Emissions certification. An automobile manufacturer must 
certify in writing that the vehicle meets, or will meet, the emissions 
requirements specified in the definition of ``on-road advanced 
technology vehicle''; and
* * * * *


0
5. Add Sec.  611.4 to subpart A to read as follows:


Sec.  611.4   Nonroad advanced technology vehicle.

    A manufacturer of a nonroad advanced technology vehicle or a 
manufacturer of a nonroad advanced technology vehicle qualifying 
component must provide DOE with such information to demonstrate to the 
satisfaction of DOE that the applicable nonroad advanced technology 
vehicle emits, under any possible operational mode or condition, low or 
zero exhaust emissions of greenhouse gases.


0
6. Amend Sec.  611.100 by revising paragraph (a)(1) to read as follows.


Sec.  611.100  Eligible applicant.

    (a) * * *
    (1) Must be--
    (i) An on-road advanced technology vehicle manufacturer that, if it 
is a light duty vehicle manufacturer, can demonstrate an improved fuel 
economy as specified in paragraph (b) of this section, or otherwise 
satisfies the applicable standards set forth in the definition of on-
road advanced technology vehicle,
    (ii) A manufacturer of a qualifying component, or
    (iii) A nonroad advanced technology vehicle manufacturer; and
* * * * *

[FR Doc. 2024-09105 Filed 4-26-24; 8:45 am]
BILLING CODE 6450-01-P