Alternative Methods for Calculating Off-Cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From Volkswagen Group of America, Inc., 67535-67536 [2020-23464]

Download as PDF Federal Register / Vol. 85, No. 206 / Friday, October 23, 2020 / Notices ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ– OAR–2018–0575; FRL 10016–09– OAR] Alternative Methods for Calculating Off-Cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From Volkswagen Group of America, Inc. Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: EPA is requesting comment on applications from Volkswagen Group of America, Inc. (‘‘Volkswagen ’’) for offcycle 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 describe methodologies for determining off-cycle credits from technologies described in their application. Pursuant to applicable regulations, EPA is making these offcycle credit calculation methodologies available for public comment. DATES: Comments must be received on or before November 23, 2020. 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 Once submitted, comments cannot be edited or withdrawn.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 khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:09 Oct 22, 2020 Jkt 253001 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: Linc Wehrly, Office of Transportation and Air Quality, Compliance Division, U.S. Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105. Phone: (734) 214–4286. Fax: (734) 214–4869. Email address: wehrly.linc@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 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 1 See 2 See PO 00000 40 CFR 86.1869–12(b). 40 CFR 86.1869–12(c). Frm 00028 Fmt 4703 Sfmt 4703 67535 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 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. • 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. 3 See E:\FR\FM\23OCN1.SGM 40 CFR 86.1869–12(d). 23OCN1 67536 Federal Register / Vol. 85, No. 206 / Friday, October 23, 2020 / Notices khammond on DSKJM1Z7X2PROD with NOTICES 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. II. Off-Cycle Credit Applications Using the alternative methodology approach discussed above, Volkswagen is applying for credits for model years 2016, 2017, 2018 and 2019 model years for off-cycle credits using the alternative demonstration methodology pathway for high-efficiency alternators. Automotive alternators convert mechanical energy from a combustion engine into electrical energy that can be used to power a vehicle’s electrical systems. Alternators inherently place a load on the engine, which results in increased fuel consumption and CO2 emissions. High efficiency alternators use new technologies to reduce the overall load on the engine yet continue to meet the electrical demands of the vehicle systems, resulting in lower fuel consumption and lower CO2 emissions. Some comments on EPA’s proposed rule for GHG standards for the 2016–2025 model years suggested that EPA provide a credit for high-efficiency alternators on the pre-defined list in the regulations. While EPA agreed that high-efficiency alternators can reduce electrical load and reduce fuel consumption, and that these impacts are not seen on the emission test procedures because accessories that use electricity are turned off, EPA noted the difficulty in defining a one-size-fits-all credit due to lack of data. Since then, however a methodology has been developed that scales credits based on the efficiency of the alternator; alternators with efficiency (as measured using an accepted industry standard procedure) above a baseline value could get credits. EPA has previously approved credits for high-efficiency alternators using this methodology for Ford Motor Company, General Motors Corporation, Fiat Chrysler Automobiles, Hyundai, Kia, and Toyota Motor Company. Details of the testing and analysis can be found in the manufacturer’s applications. 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 4 See 40 CFR 86.1869–12(d)(2). VerDate Sep<11>2014 18:09 Oct 22, 2020 Jkt 253001 regulations. The off-cycle credit applications 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 30day 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: October 19, 2020. Byron Bunker, Director, Compliance Division, Office of Transportation and Air Quality, Office of Air and Radiation. [FR Doc. 2020–23464 Filed 10–22–20; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY [ER–FRL–9053–5] Environmental Impact Statements; Notice of Availability Responsible Agency: Office of Federal Activities, General Information 202– 564–5632 or https://www.epa.gov/nepa. Weekly receipt of Environmental Impact Statements (EIS) Filed October 9, 2020 10 a.m. EST Through October 19, 2020 10 a.m. EST Pursuant to 40 CFR 1506.9. Notice: Section 309(a) of the Clean Air Act requires that EPA make public its comments on EISs issued by other Federal agencies. EPA’s comment letters on EISs are available at: https:// PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 cdxnodengn.epa.gov/cdx-enepa-public/ action/eis/search. EIS No. 20200206, Draft Supplement, NRCS, MO, East Locust Creek Watershed Revised Plan, Comment Period Ends: 12/07/2020, Contact: Chris Hamilton 573–876–9416. EIS No. 20200207, Final, BIA, CA, Tejon Trust Acquisition and Casino Project, Review Period Ends: 11/23/2020, Contact: Chad Broussard 916–978– 6165. EIS No. 20200208, Final, BLM, WY, Final Resource Management Plan Amendments/Environmental Impact Statement Wyoming Pipeline Corridor Initiative, Review Period Ends: 11/23/ 2020, Contact: Heather Schultz 307– 775–6084. Dated: October 19, 2020. Cindy S. Barger, Director, NEPA Compliance Division, Office of Federal Activities. [FR Doc. 2020–23482 Filed 10–22–20; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OPP–2017–0750; FRL–10015–60] Pesticide Registration Review; Proposed Interim Decision for Paraquat Environmental Protection Agency (EPA). ACTION: Notice. AGENCY: This notice announces the availability of EPA’s proposed interim registration review decision and opens a 60-day public comment period on the proposed interim decision for paraquat. DATES: Comments must be received on or before December 22, 2020. ADDRESSES: Submit your comments, identified by the docket identification (ID) number for the specific pesticide of interest provided in the Table in Unit IV, by one of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the online instructions for submitting comments. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. • Mail: OPP Docket, Environmental Protection Agency Docket Center (EPA/ DC), (28221T), 1200 Pennsylvania Ave. NW, Washington, DC 20460–0001. • Hand Delivery: To make special arrangements for hand delivery or delivery of boxed information, please follow the instructions at https:// www.epa.gov/dockets/contacts.html. SUMMARY: E:\FR\FM\23OCN1.SGM 23OCN1

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[Federal Register Volume 85, Number 206 (Friday, October 23, 2020)]
[Notices]
[Pages 67535-67536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23464]



[[Page 67535]]

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

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ- OAR-2018-0575; FRL 10016-09-OAR]


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: EPA is requesting comment on applications 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 describe methodologies for determining off-cycle 
credits from technologies described in their application. Pursuant to 
applicable regulations, EPA is making these off-cycle credit 
calculation methodologies available for public comment.

DATES: Comments must be received on or before November 23, 2020.

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: Linc Wehrly, Office of Transportation 
and Air Quality, Compliance Division, U.S. Environmental Protection 
Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105. Phone: (734) 214-
4286. 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 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.
     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.

[[Page 67536]]

    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 is applying for credits for model years 2016, 2017, 2018 and 
2019 model years for off-cycle credits using the alternative 
demonstration methodology pathway for high-efficiency alternators. 
Automotive alternators convert mechanical energy from a combustion 
engine into electrical energy that can be used to power a vehicle's 
electrical systems. Alternators inherently place a load on the engine, 
which results in increased fuel consumption and CO2 
emissions. High efficiency alternators use new technologies to reduce 
the overall load on the engine yet continue to meet the electrical 
demands of the vehicle systems, resulting in lower fuel consumption and 
lower CO2 emissions. Some comments on EPA's proposed rule 
for GHG standards for the 2016-2025 model years suggested that EPA 
provide a credit for high-efficiency alternators on the pre-defined 
list in the regulations. While EPA agreed that high-efficiency 
alternators can reduce electrical load and reduce fuel consumption, and 
that these impacts are not seen on the emission test procedures because 
accessories that use electricity are turned off, EPA noted the 
difficulty in defining a one-size-fits-all credit due to lack of data. 
Since then, however a methodology has been developed that scales 
credits based on the efficiency of the alternator; alternators with 
efficiency (as measured using an accepted industry standard procedure) 
above a baseline value could get credits. EPA has previously approved 
credits for high-efficiency alternators using this methodology for Ford 
Motor Company, General Motors Corporation, Fiat Chrysler Automobiles, 
Hyundai, Kia, and Toyota Motor Company. Details of the testing and 
analysis can be found in the manufacturer's applications.

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 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: October 19, 2020.
Byron Bunker,
Director, Compliance Division, Office of Transportation and Air 
Quality, Office of Air and Radiation.
[FR Doc. 2020-23464 Filed 10-22-20; 8:45 am]
BILLING CODE 6560-50-P
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