Petroleum-Equivalent Fuel Economy Calculation

<RULE> DEPARTMENT OF ENERGY <CFR>10 CFR Part 474</CFR> <DEPDOC>[EERE-2021-VT-0033]</DEPDOC> <RIN>RIN 1904-AF47</RIN> <SUBJECT>Petroleum-Equivalent Fuel Economy Calculation</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Office of Energy Efficiency and Renewable Energy, Department of Energy. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The U.S. Department of Energy (DOE) publishes a final rule that revises the value for the petroleum-equivalency factor (PEF). This final rule revises DOE's regulations regarding procedures for calculating a value for the petroleum-equivalent fuel economy of electric vehicles (EVs). The PEF is used by the Environmental Protection Agency (EPA) in calculating light-duty vehicle manufacturers' compliance with the Department of Transportation's (DOT) Corporate Average Fuel Economy (CAFE) standards. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> This rule is effective June 12, 2024. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> The docket for this rulemaking, which includes <E T="04">Federal Register</E> notices, public meeting attendee lists and transcripts, comments, and other supporting documents/materials, is available for review at <E T="03">www.regulations.gov/docket/EERE-2021-VT-0033.</E> All documents in the docket are listed in the <E T="03">www.regulations.gov</E> index. However, not all documents listed in the index may be publicly available, such as information that is exempt from public disclosure. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Mr. Kevin Stork, U.S. Department of Energy, Vehicle Technologies Office, EE-3V, 1000 Independence Avenue SW, Washington, DC 20585. Telephone: (202) 586-8306. Email: <E T="03">Kevin.Stork@ee.doe.gov.</E> Ms. Laura Zuber, U.S. Department of Energy, Office of the General Counsel, Forrestal Building, GC-33, 1000 Independence Avenue SW, Washington, DC 20585. Telephone: (240) 306-7651. Email: <E T="03">laura.zuber@hq.doe.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Table of Contents</HD> <EXTRACT> <FP SOURCE="FP-2">I. Introduction and Background</FP> <FP SOURCE="FP-2">II. Public Comments on the 2023 NOPR</FP> <FP SOURCE="FP-2">III. Discussion of Final Rule</FP> <FP SOURCE="FP1-2">A. Statutory Factors</FP> <FP SOURCE="FP1-2">B. Current Methodology</FP> <FP SOURCE="FP1-2">C. Revised Methodology</FP> <FP SOURCE="FP1-2">1. Approximate Electrical Energy Efficiency of EVs</FP> <FP SOURCE="FP1-2">2. Gasoline-Equivalent Fuel Economy of Electricity</FP> <FP SOURCE="FP1-2">a. Average Electricity Generation and Transmission Efficiency</FP> <FP SOURCE="FP1-2">b. Petroleum Refining and Distribution Efficiency</FP> <FP SOURCE="FP1-2">c. Annual Gasoline-Equivalent Fuel Economy of Electricity</FP> <FP SOURCE="FP1-2">3. Cumulative Gasoline-Equivalent Fuel Economy of Electricity</FP> <FP SOURCE="FP1-2">4. Fuel Content Factor</FP> <FP SOURCE="FP1-2">5. Accessory Factor</FP> <FP SOURCE="FP1-2">6. Driving Pattern Factor</FP> <FP SOURCE="FP1-2">7. Revised PEF Value</FP> <FP SOURCE="FP1-2">8. Compliance Period</FP> <FP SOURCE="FP1-2">9. Annual Review</FP> <FP SOURCE="FP-2">IV. Responses to Additional Comments</FP> <FP SOURCE="FP1-2">A. Revisions to Section 474.3</FP> <FP SOURCE="FP1-2">B. Consideration of All Forms of Energy Conservation</FP> <FP SOURCE="FP1-2">C. Need for Multiple PEF Values</FP> <FP SOURCE="FP1-2">D. Impact of Revised PEF on Plug-In Hybrid Electric Vehicles</FP> <FP SOURCE="FP1-2">E. Compliance With NHTSA and EPA Standards</FP> <FP SOURCE="FP1-2">F. Related Rulemakings</FP> <FP SOURCE="FP1-2">G. Miscellaneous</FP> <FP SOURCE="FP-2">V. Revisions to 10 CFR P art 474</FP> <FP SOURCE="FP1-2">A. 10 CFR 474.3</FP> <FP SOURCE="FP1-2">B. Appendix to Part 474</FP> <FP SOURCE="FP-2">VI. Procedural Issues and Regulatory Review</FP> <FP SOURCE="FP1-2">A. Review Under Executive Orders 12866, 13563 and 14094</FP> <FP SOURCE="FP1-2">B. Review Under the Regulatory Flexibility Act</FP> <FP SOURCE="FP1-2">C. Review Under the Paperwork Reduction Act of 1995</FP> <FP SOURCE="FP1-2">D. Review Under the National Environmental Policy Act of 1969</FP> <FP SOURCE="FP1-2">E. Review Under Executive Order 13132</FP> <FP SOURCE="FP1-2">F. Review Under Executive Order 12988</FP> <FP SOURCE="FP1-2">G. Review Under the Unfunded Mandates Reform Act of 1995</FP> <FP SOURCE="FP1-2">H. Review Under the Treasury and General Government Appropriations Act of 1999</FP> <FP SOURCE="FP1-2">I. Review Under Executive Order 12630</FP> <FP SOURCE="FP1-2">J. Review Under the Treasury and General Government Appropriations Act, 2001</FP> <FP SOURCE="FP1-2">K. Review Under Executive Order 13211</FP> <FP SOURCE="FP1-2">L. Congressional Notification</FP> <FP SOURCE="FP-2">VII. Approval of the Office of the Secretary</FP> </EXTRACT> <HD SOURCE="HD1">I. Introduction and Background</HD> In an effort to conserve energy through improvements in the energy efficiency of motor vehicles, in 1975, Congress passed the Energy Policy and Conservation Act (EPCA), Public Law 94-163. Title III of EPCA amended the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 1901 <E T="03">et seq.</E> ) (the Motor Vehicle Act) by mandating fuel economy standards for automobiles produced in, or imported into, the United States. This legislation, as amended, requires every manufacturer to meet applicable specified corporate average fuel economy (CAFE) standards for their fleets of light-duty vehicles under 8,500 pounds that the manufacturer manufactures in any model year. <SU>1</SU> <FTREF/> The Secretary of Transportation (through the National Highway Traffic Safety Administration (NHTSA)) is responsible for prescribing the CAFE standards and enforcing the penalties for failure to meet these standards. 49 U.S.C. 32902. The Administrator of the Environmental Protection Agency (EPA) is responsible for calculating each manufacturer's fleet CAFE value. 49 U.S.C. 32902 and 32904. <FTNT> <SU>1</SU>  The relevant provisions of the CAFE program, including DOE's establishment of equivalent petroleum-based fuel economy values were transferred to Title 49 of the U.S. Code by Public Law 103-272 (July 5, 1984). <E T="03">See</E> 49 U.S.C. 32901 <E T="03">et seq.</E> The authority for DOE's establishment of equivalent petroleum-based fuel economy values was transferred to 49 U.S.C. 32904(a)(2)(B). </FTNT> On January 7, 1980, President Carter signed the Chrysler Corporation Loan Guarantee Act of 1979 (Pub. L. 96-185). Section 18 of the Chrysler Corporation Loan Guarantee Act of 1979 added a new paragraph (2) to section 13(c) of the Electric and Hybrid Vehicle Research, Development, and Demonstration Act of 1976 (Pub. L. 94-413). Part of the new section 13(c) added paragraph (a)(3) to section 503 of the Motor Vehicle Act. That subsection provides: If a manufacturer manufactures an electric vehicle, the Administrator [of EPA] shall include in the calculation of average fuel economy under paragraph (1) of this subsection equivalent petroleum based fuel economy values determined by the Secretary of Energy for various classes of electric vehicles. The Secretary shall review those values each year and determine and propose necessary revisions based on the following factors: <EXTRACT> (i) The approximate electrical energy efficiency of the vehicle, considering the kind of vehicle and the mission and weight of the vehicle. (ii) The national average electrical generation and transmission efficiencies. (iii) The need of the United States to conserve all forms of energy and the relative scarcity and value to the United States of all fuel used to generate electricity. (iv) The specific patterns of use of electric vehicles compared to petroleum-fueled vehicles. </EXTRACT> <FP>49 U.S.C. 32904(a)(2)(B).</FP> Section 18 of the Chrysler Corporation Loan Guarantee Act of 1979 further amended the Electric and Hybrid Vehicle Research, Development, and Demonstration Act of 1976 by adding a new paragraph (3) to section 13(c), which directed the Secretary of Energy, in consultation with the Secretary of Transportation and the Administrator of EPA, to conduct a seven-year evaluation program of the inclusion of electric vehicles  <SU>2</SU> <FTREF/> in the calculation of average fuel economy. As required by section 503(a)(3) of the Motor Vehicle Act, DOE proposed a method of calculating the petroleum-equivalent fuel economy of electric vehicles utilizing a PEF in a new 10 CFR part 474 on May 21, 1980. 45 FR 34008. The rule was finalized on April 21, 1981, and became effective May 21, 1981. 46 FR 22747. The seven-year evaluation program was completed in 1987, and the calculation of the annual petroleum equivalency factors was not extended past 1987. <FTNT> <SU>2</SU>  For purposes of paragraph (a)(2) of 49 U.S.C. 32904, EPCA defines an “electric vehicle” as “a vehicle powered primarily by an electric motor drawing electrical current from a portable source.” </FTNT> DOE published a proposed rule for a permanent PEF for use in calculating petroleum-equivalent fuel economy values of electric vehicles on February 4, 1994, and obtained comments from interested parties. 59 FR 5336. Following consideration of comments, DOE's own internal re-examination of the assumptions underlying the proposed rule, and existing regulations for other classes of alternative fuel vehicles, DOE decided to modify the PEF calculation approach proposed in 1994. The 1994 proposed rule was later withdrawn, and DOE proposed a modified approach in a July 14, 1999, notice of proposed rulemaking. 64 FR 37905 (1999 NOPR). DOE published a final rule with a PEF of 82,049 Watt-hours per gallon on June 12, 2000, that amended 10 CFR part 474. 65 FR 36985 (2000 Final Rule). DOE has not updated 10 CFR part 474 since the 2000 Fina ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 140k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━