Alternative Methods for Calculating Off-Cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Application From Volkswagen Group of America, Inc., 49380-49381 [2018-21333]

Download as PDF 49380 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Notices Dated: September 18, 2018. Cosmo Servidio, Regional Administrator. [FR Doc. 2018–21330 Filed 9–28–18; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OAR–2018–0575; FRL–9984–82– OAR] Alternative Methods for Calculating Off-Cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Application From Volkswagen Group of America, Inc. Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: EPA is requesting comment on an application from Volkswagen Group of America, Inc. (‘‘Volkswagen’’) 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 benefit is not adequately 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’’ CO2 credits. Under the regulations, a manufacturer may apply for CO2 credits for off-cycle 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. Volkswagen has submitted an application that describes methodologies for determining off-cycle credits from technologies described in their application. Pursuant to applicable regulations, EPA is making the Volkswagen’s off-cycle credit calculation methodologies available for public comment. DATES: Comments must be received on or before October 31, 2018. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–HQ– OAR–2018–0575, to the Federal eRulemaking Portal: https:// 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 Once submitted, comments cannot be edited or withdrawn.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 amozie on DSK3GDR082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 17:50 Sep 28, 2018 Jkt 247001 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://www2.epa.gov/dockets/ commenting-epa-dockets. FOR FURTHER INFORMATION CONTACT: Roberts French, 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) 214–4380. Fax: (734) 214–4869. Email address: french.roberts@epa.gov. 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 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, if the technologies meet EPA regulatory definitions. In cases where the off-cycle technology is not on the menu but 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 1 See 2 See PO 00000 40 CFR 86.1869–12(b). 40 CFR 86.1869–12(c). Frm 00028 Fmt 4703 Sfmt 4703 real-world driving not adequately captured by the GHG compliance tests, including high speeds, hard accelerations, and cold temperatures. These first two methodologies were completely defined through notice and comment rulemaking and therefore no additional process is necessary for manufacturers to use these methods. 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 5cycle 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. 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, onroad 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. 3 See E:\FR\FM\01OCN1.SGM 40 CFR 86.1869–12(d). 01OCN1 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Notices • 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. amozie on DSK3GDR082PROD with NOTICES II. Off-Cycle Credit Applications Using the alternative methodology approach discussed above, Volkswagen Group of America (‘‘Volkswagen’’) is applying for credits for model years prior to 2014, and thus prior to when the list of default credits became available. Volkswagen has applied for off-cycle credits using the alternative demonstration methodology pathway for the following technologies: High efficiency exterior lighting, active aerodynamics, active transmission warmup, active engine warmup, and several thermal control technologies. EPA has already approved credits for these technologies for several other manufacturers, and Volkswagen’s request is consistent with previously approved methodologies and credits. The application covers 2010–2011 model year vehicles. These technologies are described in the predetermined list of credits available in the 2014 and later model years. The methodologies described by Volkswagen are consistent with those used by EPA to establish the predetermined list of credits in the regulations, and would result in the same credit values as described in the regulations. The magnitude of these credits is determined by specification or calculations in the regulations based on vehicle-specific measurements (e.g., the area of glass or the lighting locations using the specified technologies), but would be no higher than the following established regulatory values: Technology Off-cycle credit—cars (grams/mile) Off-cycle credit— trucks (grams/mile) 1.0 1.0 1.0 1.3 High efficiency lighting Active seat ventilation Active aerodynamics ... Based on measured reduction in the coefficient of drag. Active transmission warm-up ................... Active engine warm-up Solar reflective glass/ glazing ..................... Solar reflective paint ... 1.5 1.5 3.2 3.2 2.9 0.4 3.9 0.5 EPA has reviewed the application for completeness and is now making the application available for public review and comment as required by the regulations. The off-cycle credit application submitted by the manufacturer (with confidential business information redacted) have been placed in the public docket (see ADDRESSES section above) and on EPA’s website at https://www.epa.gov/vehicleand-engine-certification/complianceinformation-light-duty-greenhouse-gasghg-standards. 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. 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 the same manufacturerspecific pages shown above. 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 20, 2018. Byron J. Bunker, Director, Compliance Division, Office of Transportation and Air Quality, Office of Air and Radiation. [FR Doc. 2018–21333 Filed 9–28–18; 8:45 am] 4 See 40 CFR 86.1869–12(d)(2). VerDate Sep<11>2014 17:50 Sep 28, 2018 BILLING CODE 6560–50–P Jkt 247001 ENVIRONMENTAL PROTECTION AGENCY [[EPA–HQ–OECA–2013–0298; FRL–9984– 74–OEI] Proposed Information Collection Request; Comment Request; NESHAP for Industrial, Commercial, and Institutional Boilers Area Sources (Renewal) Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: The Environmental Protection Agency (EPA) is planning to submit an information collection request (ICR), NESHAP for Industrial, Commercial, and Institutional Boilers Area Sources (EPA ICR No. 2253.04, OMB Control No. 2060–0668) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act. Before doing so, EPA is soliciting public comments on specific aspects of the proposed information collection as described below. This is a proposed extension of the ICR, which is currently approved through October 31, 2018. An agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. DATES: Comments must be submitted on or before November 30, 2018. ADDRESSES: Submit your comments, referencing Docket ID No. EPA–HQ– OECA–2013–0298 online using www.regulations.gov (our preferred method), by email to docket.oeca@ epa.gov, or by mail to: EPA Docket Center, Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania Ave. NW, Washington, DC 20460. EPA’s policy is that all comments received will be included in the public docket without change including any personal information provided, unless the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. FOR FURTHER INFORMATION CONTACT: Patrick Yellin, Monitoring, Assistance, and Media Programs Division, Office of Compliance, Mail Code 2227A, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460; telephone number: (202) 564– 2970; fax number: (202) 564–0050; email address: yellin.patrick@epa.gov. SUPPLEMENTARY INFORMATION: Supporting documents, which explain SUMMARY: III. EPA Decision Process PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 49381 E:\FR\FM\01OCN1.SGM 01OCN1

Agencies

[Federal Register Volume 83, Number 190 (Monday, October 1, 2018)]
[Notices]
[Pages 49380-49381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21333]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2018-0575; FRL-9984-82-OAR]


Alternative Methods for Calculating Off-Cycle Credits Under the 
Light-Duty Vehicle Greenhouse Gas Emissions Program: Application From 
Volkswagen Group of America, Inc.

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: EPA is requesting comment on an application from Volkswagen 
Group of America, Inc. (``Volkswagen'') 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 benefit is not adequately 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'' CO2 credits. Under the regulations, a 
manufacturer may apply for CO2 credits for off-cycle 
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. Volkswagen has submitted 
an application that describes methodologies for determining off-cycle 
credits from technologies described in their application. Pursuant to 
applicable regulations, EPA is making the Volkswagen's off-cycle credit 
calculation methodologies available for public comment.

DATES: Comments must be received on or before October 31, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ- 
OAR-2018-0575, to the Federal eRulemaking Portal: https://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 https://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Roberts French, 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) 214-4380. 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 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, if the technologies meet EPA regulatory definitions. In 
cases where the off-cycle technology is not on the menu but 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 adequately 
captured by the GHG compliance tests, including high speeds, hard 
accelerations, and cold temperatures. These first two methodologies 
were completely defined through notice and comment rulemaking and 
therefore no additional process is necessary for manufacturers to use 
these methods. 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.
---------------------------------------------------------------------------

    \1\ See 40 CFR 86.1869-12(b).
    \2\ See 40 CFR 86.1869-12(c).
    \3\ See 40 CFR 86.1869-12(d).
---------------------------------------------------------------------------

    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.

[[Page 49381]]

     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.
---------------------------------------------------------------------------

    \4\ See 40 CFR 86.1869-12(d)(2).
---------------------------------------------------------------------------

II. Off-Cycle Credit Applications

    Using the alternative methodology approach discussed above, 
Volkswagen Group of America (``Volkswagen'') is applying for credits 
for model years prior to 2014, and thus prior to when the list of 
default credits became available. Volkswagen has applied for off-cycle 
credits using the alternative demonstration methodology pathway for the 
following technologies: High efficiency exterior lighting, active 
aerodynamics, active transmission warmup, active engine warmup, and 
several thermal control technologies. EPA has already approved credits 
for these technologies for several other manufacturers, and 
Volkswagen's request is consistent with previously approved 
methodologies and credits. The application covers 2010-2011 model year 
vehicles. These technologies are described in the predetermined list of 
credits available in the 2014 and later model years. The methodologies 
described by Volkswagen are consistent with those used by EPA to 
establish the predetermined list of credits in the regulations, and 
would result in the same credit values as described in the regulations. 
The magnitude of these credits is determined by specification or 
calculations in the regulations based on vehicle-specific measurements 
(e.g., the area of glass or the lighting locations using the specified 
technologies), but would be no higher than the following established 
regulatory values:

------------------------------------------------------------------------
                                              Off-cycle      Off-cycle
                Technology                  credit--cars  credit--trucks
                                            (grams/mile)   (grams/mile)
------------------------------------------------------------------------
High efficiency lighting..................           1.0            1.0
Active seat ventilation...................           1.0            1.3
------------------------------------------------------------------------
Active aerodynamics.......................   Based on measured reduction
                                             in the coefficient of drag.
------------------------------------------------------------------------
Active transmission warm-up...............           1.5            3.2
Active engine warm-up.....................           1.5            3.2
Solar reflective glass/glazing............           2.9            3.9
Solar reflective paint....................           0.4            0.5
------------------------------------------------------------------------

III. EPA Decision Process

    EPA has reviewed the application for completeness and is now making 
the application available for public review and comment as required by 
the regulations. The off-cycle credit application submitted by the 
manufacturer (with confidential business information redacted) have 
been placed in the public docket (see ADDRESSES section above) and on 
EPA's website at https://www.epa.gov/vehicle-and-engine-certification/compliance-information-light-duty-greenhouse-gas-ghg-standards.
    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. 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 the same 
manufacturer-specific pages shown above. 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 20, 2018.
Byron J. Bunker,
Director, Compliance Division, Office of Transportation and Air 
Quality, Office of Air and Radiation.
[FR Doc. 2018-21333 Filed 9-28-18; 8:45 am]
 BILLING CODE 6560-50-P
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