Statutory Updates to the Advanced Technology Vehicles Manufacturing Program, 33196-33203 [2024-09105]
Download as PDF
<![CDATA[
33196
Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024 / Rules and Regulations
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 (62 FR 12820) (also available at
www.energy.gov/gc/office-generalcounsel). This interim final rule does
not contain an intergovernmental
mandate or a mandate that may result in
the expenditure of $100 million or more
in any year, so these requirements under
the Unfunded Mandates Reform Act do
not apply.
I. Review Under the Treasury and
General Government Appropriations
Act of 1999
Section 654 of the Treasury and
General Government Appropriations
Act, 1999 (Pub. L. 105–277) requires
Federal agencies to issue a Family
Policymaking Assessment for any rule
that may affect family well-being. This
interim final rule would 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.
khammond on DSKJM1Z7X2PROD with RULES
J. Review Under Executive Order 12630
Pursuant to E.O. 12630,
‘‘Governmental Actions and Interference
with Constitutionally Protected Property
Rights,’’ 53 FR 8859 (March 18, 1988),
DOE has determined that this interim
final rule would not result in any
takings that might require compensation
under the Fifth Amendment to the U.S.
Constitution.
K. Review Under the Treasury and
General Government Appropriations
Act, 2001
The Treasury and General
Government Appropriations Act, 2001
(44 U.S.C. 3516 note) 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 (Feb. 22, 2002), and DOE’s
guidelines were published at 67 FR
62446 (Oct. 7, 2002). DOE has reviewed
this interim final rule under the OMB
and DOE guidelines and has concluded
that it is consistent with applicable
policies in those guidelines.
L. Review Under Executive Order 13211
Executive Order 13211, ‘‘Actions
Concerning Regulations That
Significantly Affect Energy Supply,
VerDate Sep<11>2014
15:46 Apr 26, 2024
Jkt 262001
Distribution, or Use,’’ 66 FR 28355 (May
22, 2001), requires Federal agencies to
prepare and submit to the Office of
Information and Regulatory Affairs
(OIRA), Office of Management and
Budget, 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 interim final rule would not have
a significant adverse effect on the
supply, distribution, or use of energy
and, therefore, is not a significant
energy action. Accordingly, DOE has not
prepared a Statement of Energy Effects.
M. Congressional Notification
As required by 5 U.S.C. 801, DOE will
report to Congress on the promulgation
of this rule prior to its effective date.
The report will state that it has been
determined that the rule is not a ‘‘major
rule’’ as defined by 5 U.S.C. 804(2).
IV. Approval of the Office of the
Secretary
document upon publication in the
Federal Register.
Signed in Washington, DC, on April 23,
2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
For the reasons set forth in the
preamble, the Department of Energy
amends part 420 of chapter II,
subchapter D of title 10 of the Code of
Federal Regulations as set forth below:
PART 420—STATE ENERGY
PROGRAM
1. The authority citation for part 420
is revised to read as follows:
■
Authority: Title III, part B, as amended, of
the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.); Department of Energy
Organization Act (42 U.S.C. 7101 et seq.)
2. Amend § 420.15 by revising the
section heading and adding a new
paragraph (g) to read as follows:
■
§ 420.15 Annual State applications and
amendments to State plans.
*
*
*
*
*
(g) The mandatory conduct of
activities to support transmission and
distribution planning, including—
(1) Support for local governments and
Indian Tribes;
(2) Feasibility studies for transmission
line routes and alternatives;
(3) Preparation of necessary project
design and permits; and
(4) Outreach to affected stakeholders.
[FR Doc. 2024–08984 Filed 4–26–24; 8:45 am]
BILLING CODE 6450–01–P
The Secretary of Energy has approved
publication of this interim final rule.
DEPARTMENT OF ENERGY
List of Subjects in 10 CFR Part 420
10 CFR Part 611
Energy conservation, Grant
programs—energy, Technical assistance.
RIN 1901–AB60
Signing Authority
This document of the Department of
Energy was signed on April 22, 2024, by
David Crane, Under Secretary for
Infrastructure, 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
PO 00000
Frm 00014
Fmt 4700
Sfmt 4700
Statutory Updates to the Advanced
Technology Vehicles Manufacturing
Program
Loan Programs Office,
Department of Energy.
ACTION: Direct final rule.
AGENCY:
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
SUMMARY:
E:\FR\FM\29APR1.SGM
29APR1
Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024 / Rules and Regulations
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.
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):
lpofederalregistercomments@
hq.doe.gov. 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.
khammond on DSKJM1Z7X2PROD with RULES
ADDRESSES:
VerDate Sep<11>2014
15:46 Apr 26, 2024
Jkt 262001
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:
steven.westhoff@hq.doe.gov, 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
PO 00000
Frm 00015
Fmt 4700
Sfmt 4700
33197
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
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.
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 mediumduty 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
1 73
FR 66721 (November 12, 2008).
FR 26579 (May 9, 2011).
3 86 FR 3747 (January 15, 2021).
4 Public Law 111–85 (2009).
5 Public Law 117–58 (2021).
6 Section 40401(l) of the IIJA prohibited the
Secretary from using amounts appropriated prior to
2 76
E:\FR\FM\29APR1.SGM
Continued
29APR1
33198
Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024 / Rules and Regulations
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.
khammond on DSKJM1Z7X2PROD with RULES
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.
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
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
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
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.
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).
7 Public Law 117–169 (2022).
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.
VerDate Sep<11>2014
15:46 Apr 26, 2024
Jkt 262001
PO 00000
Frm 00016
Fmt 4700
Sfmt 4700
III. Section-by-Section Analysis
Provided below is a section-by-section
analysis of the changes made by this
direct final rule.
§ 611.1 Purpose
DOE is revising § 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.
§ 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.
§ 611.3 On-Road Advanced
Technology Vehicle
DOE is revising § 611.3 to refer to ‘‘onroad 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.
§ 611.4 Nonroad Advanced
Technology Vehicle
DOE is adding a new § 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.
§ 611.100 Eligible Applicant
DOE is revising § 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 onroad advanced technology vehicles,
DOE is also clarifying, consistent with
the current statute and pre-existing
§ 611.100, that the specified improved
fuel economy requirements of paragraph
(b) continue to apply only to
manufacturers of light duty vehicles.
E:\FR\FM\29APR1.SGM
29APR1
Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024 / Rules and Regulations
khammond on DSKJM1Z7X2PROD with RULES
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.
VerDate Sep<11>2014
15:46 Apr 26, 2024
Jkt 262001
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
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
33199
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
E:\FR\FM\29APR1.SGM
29APR1
khammond on DSKJM1Z7X2PROD with RULES
33200
Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024 / Rules and Regulations
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
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.
VerDate Sep<11>2014
15:46 Apr 26, 2024
Jkt 262001
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.
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 nonadministrative 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
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
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
E:\FR\FM\29APR1.SGM
29APR1
Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024 / Rules and Regulations
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.
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.
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.
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.
khammond on DSKJM1Z7X2PROD with RULES
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
VerDate Sep<11>2014
15:46 Apr 26, 2024
Jkt 262001
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
PO 00000
Frm 00019
Fmt 4700
Sfmt 4700
33201
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
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.
10 64
FR 43255 (August 4, 1999).
FR 13735 (March 14, 2000).
12 65 FR 67249 (November 9, 2000).
11 65
E:\FR\FM\29APR1.SGM
29APR1
33202
Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024 / Rules and Regulations
I. Unfunded Mandates Reform Act of
1995
prepare a Family Policymaking
Assessment.
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.
K. Treasury and General Government
Appropriations Act, 2001
khammond on DSKJM1Z7X2PROD with RULES
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
Law 104–4 (1995).
FR 12820 (March 18, 1997); also available
at www.energy.gov/gc/office-general-counsel.
15 Public Law 105–277 (1998); 5 U.S.C. 601 note.
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%20
Updated%20IQA%20Guidelines%20
Dec%202019.pdf.
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.
13 Public
14 62
VerDate Sep<11>2014
15:46 Apr 26, 2024
Jkt 262001
16 Public Law 106–554 (2000); 44 U.S.C. 3516
note.
17 66 FR 28355 (May 22, 2001).
PO 00000
Frm 00020
Fmt 4700
Sfmt 4700
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
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.
■
2. Revise § 611.1 to read as follows:
§ 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
E:\FR\FM\29APR1.SGM
29APR1
Federal Register / Vol. 89, No. 83 / Monday, April 29, 2024 / Rules and Regulations
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.
■ 3. Amend § 611.2 by:
■ a. Revising the definitions for
‘‘Advanced technology vehicle’’ and;
■ 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:
§ 611.2
Definitions.
khammond on DSKJM1Z7X2PROD with RULES
*
*
*
*
*
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
VerDate Sep<11>2014
15:46 Apr 26, 2024
Jkt 262001
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.
4. Amend § 611.3 by revising the
section heading, the introductory text,
and paragraph (a) to read as follows:
■
§ 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
*
*
*
*
*
5. Add § 611.4 to subpart A to read as
follows:
■
§ 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.
6. Amend § 611.100 by revising
paragraph (a)(1) to read as follows.
■
§ 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
PO 00000
Frm 00021
Fmt 4700
Sfmt 4700
33203
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
DEPARTMENT OF ENERGY
10 CFR Part 955
RIN 1903–AA12
Elemental Mercury Management and
Storage Fees
Office of Environmental
Management, U.S. Department of
Energy.
ACTION: Final rule.
AGENCY:
The Department of Energy
(DOE) is removing the regulatory
provisions established by the final rule
Elemental Mercury Management and
Storage Fees that was published in the
Federal Register on December 23, 2019.
On September 5, 2020, the U.S. District
Court for the District of Columbia issued
an order that vacated and remanded the
rule to DOE for reconsideration. This
action amends the Code of Federal
Regulations to reflect the Court’s order.
DATES: This rule is effective on April 29,
2024. However, the Court’s order had
legal effect immediately upon its
issuance on September 5, 2020.
FOR FURTHER INFORMATION CONTACT:
Timothy Herald, U.S. Department of
Energy, Office of Environmental
Management, Room B126, 19901
Germantown Road, Germantown, MD
20874; (240) 243–8753 or
timothy.herald@em.doe.gov.
SUPPLEMENTARY INFORMATION: Section
5(a)(1) of the Mercury Export Ban Act
(MEBA), as amended, 42 U.S.C.
6939f(a)(1), provides that the Secretary
of Energy shall designate a facility or
facilities of DOE for the purpose of longterm management and storage of
elemental mercury generated within the
United States. MEBA section 5(b)(1), 42
U.S.C. 6939f(b)(1), further provides that
DOE shall assess and collect a fee at the
time of delivery for providing such
management and storage, based on the
pro rata cost of long-term management
and storage of elemental mercury
delivered to the facility.
On December 6, 2019, DOE published
its Record of Decision (ROD) identifying
a portion of two buildings at a Texas
facility leased by DOE and owned by
SUMMARY:
E:\FR\FM\29APR1.SGM
29APR1
]]>Agencies
[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]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\1\ 73 FR 66721 (November 12, 2008).
\2\ 76 FR 26579 (May 9, 2011).
\3\ 86 FR 3747 (January 15, 2021).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\4\ Public Law 111-85 (2009).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
[[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.
---------------------------------------------------------------------------
\7\ Public Law 117-169 (2022).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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).
---------------------------------------------------------------------------
[[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).
---------------------------------------------------------------------------
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
