Electric and Hybrid Vehicle Research, Development, and Demonstration Program; Equivalent Petroleum-Based Fuel Economy Calculation |
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Christine A. Ervin
Department of Energy
February 4, 1994
[Federal Register Volume 59, Number 24 (Friday, February 4, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Printing Office [www.gpo.gov] [FR Doc No: 94-2093] [[Page Unknown]] [Federal Register: February 4, 1994] VOL. 59, NO. 24 Friday, February 4, 1994 ======================================================================= DEPARTMENT OF ENERGY Office of Energy Efficiency and Renewable Energy 10 CFR Part 474 [Docket No. EE-RM-94-101] Electric and Hybrid Vehicle Research, Development, and Demonstration Program; Equivalent Petroleum-Based Fuel Economy Calculation AGENCY: Department of Energy. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: The Department of Energy (DOE) is proposing to amend its Electric Vehicle Research and Development Program to provide new factors for calculating the equivalent petroleum-based fuel economy of electric vehicles. The equivalent petroleum-based fuel economy value is intended to be used in calculating the corporate average fuel economy pursuant to regulations prescribed by the Environmental Protection Agency. DOE is required to develop the procedure pursuant to section 503(a)(3) of the Motor Vehicle Information and Cost Savings Act, as amended. DATES: Written comments (6 copies) must be received by DOE on or before April 5, 1994. The public hearing will be held on March 23, 1994 at 9:30 a.m. at the address listed below. Requests to speak at the hearing must be received by March 15, 1994. ADDRESSES: Written comments (6 copies) and requests to speak at the hearing are to be submitted to: U.S. Department of Energy, Office of Transportation Technologies, EE-30, Ms. Sheila Perez, 1000 Independence Avenue SW., room 6B-094, Docket Number EE-RM-94-101, Washington, DC 20585, (202) 586-6723. The public hearing will be held in room 1E-245, Forrestal Building, 1000 Independence Avenue, SW., Washington, DC Please bring eight copies of the prepared oral testimony to the hearing. Copies of the hearing transcript and written comments received may be obtained or inspected at the DOE Freedom of Information Reading Room, room 1E-190, 1000 Independence Avenue, SW., Washington, DC, 20585, (202) 586-6020, 9 a.m.-4 p.m., Monday-Friday, except holidays. FOR FURTHER INFORMATION CONTACT: Rogelio Sullivan, U.S. Department of Energy, Office of Transportation Technologies, Electric and Hybrid Propulsion Division, Mail Stop EE-321, 1000 Independence Avenue, SW., Washington, DC 20585, (202) 586-8042. Eugene Margolis, Esq., U.S. Department of Energy, Office of General Counsel, GC-41, 1000 Independence Avenue, SW., Washington, DC 20585, (202) 586-9507. SUPPLEMENTARY INFORMATION: I. Background II. Discussion A. Requirements of the Motor Vehicle Information and Cost Savings Act B. Test Procedures C. Calculation Procedures 1. Driving Pattern Factor 2. Electric Transmission Efficiency 3. Accessory Factor 4. Electricity Generation Efficiency and Relative Scarcity Factor 5. Petroleum Equivalency Factor Calculation 6. Alternative Measure of Relative Scarcity and Value D. Public Access to Information III. Opportunities for Public Comment A. Written Comments B. Public Hearing 1. Request to Speak Procedures 2. Conduct of the Hearing IV. Procedural Requirements A. Environmental Review B. Regulatory Review C. Regulatory Flexibility Act D. Federalism Review E. ``Takings'' Assessment Review F. Review Under Section 32 of the Federal Energy Administration Authorization Act G. Review Under Executive Order 12778 I. Background In an effort to conserve energy through improvements in the energy efficiency of motor vehicles, Congress in 1975 passed the Energy Policy and Conservation Act (Pub. L. 94-163). Title III of the Energy Policy and Conservation Act amended the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 1901, et seq.) by mandating fuel economy standards for automobiles produced in, or imported into, the United States. This legislation, as amended, requires that every manufacturer or importer meet a specified corporate average fuel economy standard for the fleet of vehicles which the manufacturer produces or imports in any model year. Although electric vehicles are included under the definition of the term ``automobile'' in the Motor Vehicle Information and Cost Savings Act, they do not consume ``fuel'' as defined in the Motor Vehicle Information and Cost Savings Act. Therefore, calculation of an electric vehicle manufacturer's corporate average fuel economy is impossible without a petroleum equivalency factor term. On January 7, 1980, the President signed the Chrysler Corporation Loan Guarantee Act of 1979 (Pub. L. 96-185). Section 18 of the Chrysler Corporation Loan Guarantee Act of 1979 added a new paragraph (2) to section 13(c) of the Electric and Hybrid Vehicle Research, Development, and Demonstration Act of 1976 (Pub. L. 94-413). Part of the new section 13(c) added subsection (a)(3) to section 503 of the Motor Vehicle Information and Cost Savings Act. That subsection directs the Secretary of Energy to determine equivalent petroleum-based fuel economy values for various classes of electric vehicles. The intent of the legislation is to provide an incentive for vehicle manufacturers to produce electric vehicles by including the expected high equivalent fuel economy of these vehicles in the corporate average fuel economy calculation and thereby to accelerate the early commercialization of electric vehicles. Section 18 of the Chrysler Corporation Loan Guarantee Act of 1979 further amended the Electric and Hybrid Vehicle Research, Development and Demonstration Act of 1976 by adding a new paragraph (3) to section 13(c) which directed the Secretary of Energy, in consultation with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, to conduct a seven-year evaluation program of the inclusion of electric vehicles in the calculation of average fuel economy. In May 1980, pursuant to the requirements of section 503(a)(3) of the Motor Vehicle Information and Cost Savings Act, DOE proposed a method of calculating the equivalent petroleum-based fuel economy of electric vehicles. The rule was finalized in April 1981. The seven-year evaluation program was completed and the calculation of the annual petroleum equivalency factors was not extended past 1987. The equivalent petroleum-based fuel economy equation terms in this rulemaking change the way the electricity generation output, input and relative value factor terms are calculated. The updated equation incorporates off-peak electric vehicle charging and the relative scarcity of electricity generation fuel sources. Administrative responsibilities for the corporate average fuel economy program are assigned to the Department of Transportation and the Environmental Protection Agency under the Motor Vehicle Information and Cost Savings Act. The Secretary of Transportation is responsible for prescribing the corporate average fuel economy standard and enforcing the penalties for failure to meet these standards. The Administrator of the Environmental Protection Agency is responsible for calculating a manufacturer's corporate average fuel economy value. The Department of Energy is responsible for developing and promulgating the petroleum equivalency factor, the key component in the calculation of equivalent petroleum-based fuel economy for electric vehicles. II. Discussion A. Requirements of the Motor Vehicle Information and Cost Savings Act Section 503(a)(3) of the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 2003(a)(3)) requires DOE to determine the equivalent petroleum-based fuel economy values for various classes of electric vehicles, taking into account the following parameters: (i) The approximate electric energy efficiency of the vehicles considering the vehicle type, mission, and weight; (ii) The national average electricity generation and transmission efficiencies; (iii) The need of the Nation to conserve all forms of energy, and the relative scarcity and value to the Nation of all fuel used to generate electricity; and (iv) The specific driving patterns of electric vehicles as compared with those of petroleum-fueled vehicles. Section 503(a)(3) also provides for revision of such values if necessary. Due to continued technology development and a strong interest in the corporate average fuel economy of electric vehicles from industry, DOE is proposing an updated method of calculating the petroleum equivalency factor. Unlike the current version of 10 CFR part 474 which required annual updating of the petroleum equivalency factor, the updated methodology yields a fixed value valid through the year 2004. B. Test Procedures DOE is proposing to revise Sec. 474.3 to provide that the test procedure to be used in determining equivalent petroleum-based fuel economy shall be based on the Society of Automotive Engineers Electric Vehicle Energy Consumption and Range Test Procedure J1634, effective May 1993. In accordance with 1 CFR part 51, the DOE will incorporate by reference this test procedure for the final rulemaking. Copies of the material to be incorporated by reference are available at the location indicated in the ``ADDRESSES'' section of this notice. The Society of Automotive Engineers Test Procedure J1634 provides standard tests for determining the energy consumption and range of electric vehicles based on the same highway and urban cycles used for gasoline-powered vehicles. The tests address electric vehicles only, and judge performance on the total vehicle system and the battery. The current version of 10 CFR part 474 attempted to duplicate the Environmental Protection Agency urban driving cycle. The Environmental Protection Agency urban driving cycle was based heavily on stop-and-go as opposed to highway vehicle usage. Roughly 91 percent of this cycle was dedicated to stop-and-go testing and nine percent to freeway testing. The Society of Automotive Engineers J227a driving pattern closely duplicated the Environmental Protection Agency urban driving cycle and was used for electric vehicle testing in both the stop-and-go and freeway driving patterns. DOE is today proposing that Society of Automotive Engineers Test Procedure J1634 replace Society of Automotive Engineers Test Procedure J227a to determine equivalent petroleum-based fuel economy. The current version of 10 CFR part 474 was based on the premise that electric vehicles would only be appropriate for urban use, and therefore excluded use of a separate highway test cycle when testing the electric vehicle. The resultant measurements were typical of stop-and-go driving with minimal freeway vehicle usage. In addition, the Society of Automotive Engineers Test Procedure J227a has a shorter, repetitive test cycle compared to the Society of Automotive Engineers Test Procedure J1634. This shorter, repetitive test cycle of Test Procedure J227a does not represent driving conditions for a gasoline-powered vehicle as well as the test cycle proposed in Society of Automotive Engineers Test Procedure J1634. C. Calculation Procedures Section 474.4 describes the steps necessary to calculate the equivalent petroleum-based fuel economy of an electric vehicle. The rule itself specifies a series of arithmetic steps one of which requires the inclusion of a Petroleum Equivalency Factor. The Petroleum Equivalency Factor is a single value incorporating the factors ii-iv specified by Congress in the Act. While the determination of the energy efficiency of an electric vehicle as specified in section 503(a)(3)(A)(i) is a straightforward task based on physical testing, the measurement of the remaining parameters listed in section 503(a)(3)(A) of the Motor Vehicle Information and Cost Savings Act is subject to less precise quantification. A discussion of DOE's consideration of these parameters follows and is further documented in ``Electric Vehicles and the Corporate Average Fuel Economy'' and ``Proposed Electric Vehicle Petroleum Equivalency Factor Equation'' which are contained in Docket No. EE-RM-93-301. At this time DOE is proposing the Petroleum Equivalency Factor value to be used through the year 2004. The actual figures are provided below. The Petroleum Equivalency Factor is determined as follows: TP04FE94.000 where: DPF = driving pattern factor nt = average national electrical transmission efficiency AF = accessory factor Etotal = total output electricity generation mix (%) Ii = input electricity generation of fuel i (%) Vi = relative scarcity factor of fuel i Each of these factors is described in further detail below: 1. Driving Pattern Factor Section 503(c)(3)(A)(iv) of the Motor Vehicle Information and Cost Savings Act requires that DOE take into account ``the specific driving patterns of electric vehicles as compared with those of petroleum- fueled vehicles.'' The driving pattern factor is the ratio of annual vehicle miles travelled for an electric vehicle to that of a petroleum- fueled vehicle. Since there is an insufficient number of electric vehicles in service for use as a sample, a factor of 100 percent (1.00) will be used until such time DOE has collected sufficient data to show otherwise. 2. Electric Transmission Efficiency Section 503(c)(3)(A)(ii) of the Motor Vehicle Information and Cost Savings Act requires DOE to take account of ``the national average electrical generation and transmission efficiencies.'' Since energy is lost in transmitting electricity, this factor has a negative effect on the equivalent petroleum-based fuel economy. The national average electrical transmission efficiency is 91.5 percent and is not expected to change significantly over the next several years. 3. Accessory Factor Sections 503(a)(3) (iii) and (iv) direct DOE to include ``the need * * * to conserve all forms of energy'' and ``specific driving patterns of electric vehicles as compared to petroleum-fueled vehicles'' in equivalent petroleum-based fuel economy. Accordingly, DOE considered the use of petroleum fueled accessories in the Petroleum Equivalency Factor calculations. This factor is directed exclusively at heater/ defroster installations that are powered by petroleum fuels and has been assigned a usage factor (reduction) of approximately ten percent per accessory. This results in three possible accessory factor values-- 1.00, .900, or .810--corresponding to whether the electric vehicle is equipped with none, one, or two petroleum-powered accessories respectively. 4. Electricity Generation Efficiency and Relative Scarcity Factor The last term in the Petroleum Equivalency Factor formula takes account of the remaining parameters listed in the Motor Vehicle Information and Cost Savings Act: The national average electricity generation efficiency and the relative scarcity and value to the Nation of all fuel used to generate electricity. The term is the ratio of total output electricity generation mix to input electricity generation, weighed by a relative scarcity factor. The derivation of values for this term, and therefore, for the Petroleum Equivalency Factor, depends on the availability of data for (1) total electricity generation, (2) energy sources used in electricity generation, (3) electricity generation mix, (4) fuel source reserves, and (5) consumption of electricity generation fuel sources. Section 503(a)(3)(A)(ii) of the Motor Vehicle Information and Cost Savings Act requires DOE to take into account average electricity generation efficiency. Electricity generation efficiency is defined as the total output electricity generation mix (Etotal) divided by the sum of the input electricity generation mix (I2i) values. The updated Petroleum Equivalency Factor equation includes the effects of off-peak electric vehicle charging in its calculation of average electricity generation efficiency. The input electricity generation mix values, based on off-peak electric vehicle charging, were multiplied by the ratio of electricity generation fuel source (quadrillion BTUs) output (Eqi) to input (Iqi) values (Table I), to obtain output electricity generation mix values (Table II). Table I.--Eqi, Iqi and Eqi/Iqi Ratio ------------------------------------------------------------------------ Eqi\1\(quads) Iqi\2\(quads) Eqi/Iqi Fuel source Ratio ------------------------------------------------------------------------ Coal............................. 5.318 16.150 0.329 Nuclear.......................... 1.968 6.186 0.318 Hydroelectric.................... 0.955 2.911 0.328 Natural Gas...................... 0.901 2.881 0.313 Petroleum........................ 0.400 1.251 0.320 --------------- Total........................ 9.542 ............. 29.379 ------------------------------------------------------------------------ \1\Source: Monthly Energy Review, November 1991, Table 7.1, Electric Utility Net Generation of Electricity, p. 89 (million kilowatthours). \2\Source: Monthly Energy Review, November 1991, Table 2.6, Energy Input at Electric Utilities, p. 31 (quadrillion BTU). Table II.--Calculation of Etotal ------------------------------------------------------------------------ Eqi/Iqi Etotal Fuel source Ii (%) ratio (%) ------------------------------------------------------------------------ Coal....................................... 50.17 0.329 16.52 Nuclear.................................... 23.33 0.318 7.42 Hydroelectric.............................. 14.52 0.328 4.76 Natural Gas................................ 5.72 0.313 1.79 Oil........................................ 6.29 0.320 2.01 ---------------------------- Total................................ 100.00 ....... 32.51 ------------------------------------------------------------------------ Section 503(a)(3)(A)(iii) of the Motor Vehicle Information and Cost Savings Act also requires in part that ``the relative scarcity and value to the Nation of all fuel used to generate electricity'' be taken into account. The Petroleum Equivalency Factor accomplishes this by multiplying each of the individual input energy generation mix value terms used in calculating electricity generation efficiency by a relative scarcity factor (Vi). The relative scarcity factor is derived by determining the U.S. percent and numeric share of the world reserve market (Table III), and calculating the rate at which the U.S. is depleting each fuel source's reserves. These values are then normalized to obtain the relative scarcity value for each fuel source (Table IV). Table III.--Calculation of U.S. Share of World Reserve Market ------------------------------------------------------------------------ U.S. percent U.S. share Fuel source World reserve of fuel of world value\1\ source reserve market market\2\ ------------------------------------------------------------------------ Crude Oil, billion barrels...... 967.7 26.3 254.8 Dry Natural Gas, trillion cubic feet........................... 4,083.0 26.0 1,061.6 Recoverable Coal, million short tons........................... 1,482,801.0 17.1 253,559.0 ------------------------------------------------------------------------ \1\Source: 1989 International Energy Annual (February, 1991) Tables 35 and 36, pgs. 97-101. The world reserve value expressed in this table is the average of the minimum and the maximum world reserve values obtained from the 1989 International Energy Annual. \2\Source: U.S. Share of the World Reserve Market = World Reserve Value x U.S. percent of Fuel Source Market. Table IV.--Calculation of Relative Scarcity Value, V ------------------------------------------------------------------------ Years 1 before % of total ----------- Relative Fuel source depletion (abundance) Abundance scarcity, V ------------------------------------------------------------------------ Crude Oil................. 34 .176 5.68 .487 Natural Gas............... 45 .233 4.29 .368 Coal...................... 114 .591 1.69 .145 Nuclear................... NA NA NA .010 Hydro..................... NA NA NA .010 --------------------------------------------- Total............... 193 ........... 11.66 ......... ------------------------------------------------------------------------ It should be noted that direct reserve values are not available for hydroelectric or nuclear power. Thus, relative scarcity values of .01 are assigned to each since zero values would theoretically mean infinite supplies of each exist. 5. Petroleum Equivalency Factor Calculation The Petroleum Equivalency Factor terms, including the driving pattern factor term, average national electricity transmission efficiency term, accessory factor term, and the electric generation output, input and relative scarcity term, are multiplied together to determine the proposed Petroleum Equivalency Factor (Table V). The three different Petroleum Equivalency Factor values reflect the three possible values of the accessory factor. Table V.--Petroleum Equivalency Factor Calculation ---------------------------------------------------------------------------------------------------------------- Total Electrical output transmiss. Accessory elect Sum of Petroleum Driving pattern factor efficiency factor gen. mix Ii x Vi equivalency (t) (%) factor (Etotal) ---------------------------------------------------------------------------------------------------------------- 1.000................................................. .915 1.000 .900 .810 .325 .128 2.32 2.09 1.88 ---------------------------------------------------------------------------------------------------------------- 6. Alternative Measure of Relative Scarcity and Value Inherent in the calculation of the petroleum equivalency is a measure of the relative scarcity and value to the Nation of all electric generation fuels. This proposed rule uses a resource based measure of scarcity and value. It utilizes the estimated reserves of electric generation fuels and their rate of consumption as an estimate of each fuel's scarcity and value. Though we are confident of the soundness of this approach, we recognize that there is some support for a measure of resource scarcity and value based on its market price. The previous rule utilized this approach. It has been suggested that a BTU adjusted market price of fuel might be a more realistic and measurable reflection of the scarcity and value of electric generation fuels. Under this approach, long term price projections such as those made by the Energy Information Administration could be used instead of marginal prices to address the problems associated with frequent updating of the petroleum equivalency factor to reflect market prices. We seek comments on this alternative market price based approach as well. Comments are sought on the merits of the market price based approach and its impact on the users of the petroleum equivalency factor. D. Public Access to Information To assist the public in commenting on this proposed rulemaking, copies of the sources of information used in developing this rulemaking (which will be incorporated by reference) are available in Docket No. EE-RM-94-101 for public inspection and copying in the DOE Freedom of Information Reading Room 1E-190, Forrestal Building, 1000 Independence Avenue, SW, Washington, DC, between the hours of 9 a.m. and 4 p.m., Monday through Friday. III. Opportunities for Public Comment A. Written Comments Interested persons are invited to participate in this rulemaking by submitting data, views, or comments with respect to the proposed rulemaking. Comments should be submitted to the address indicated in the ADDRESSES section of this notice and should be identified on the outside of the envelope and on documents submitted to DOE with the designation ``Inclusion of Electric Vehicles in Corporate Average Fuel Economy Calculation--Proposed Regulation Update'' (Docket No. EE-RM-94- 101). Six copies should be submitted. All comments received on or before the date indicated at the beginning of the notice and all other relevant information will be considered by DOE before issuance of a final rule. Pursuant to the provisions of 10 CFR 1004.11 any person submitting information believed to be confidential and that may be exempt by law from public disclosure should submit one complete copy and eight copies from which information claimed to be confidential has been deleted. In accordance with the procedures established by 10 CFR 1004.11, DOE shall make its own determination with regard to any claim that information submitted be exempt from public disclosure. B. Public Hearing 1. Request To Speak Procedures The time and place of the public hearing are indicated in the DATES and ADDRESSES sections of this notice. DOE invites any person who has an interest in the proposed rulemaking, or who is a representative of a group or class of persons that has an interest in the proposed rulemaking, to make a request for an opportunity to make an oral presentation. Such a request should be directed to DOE at the address indicated in the ADDRESSES section of this notice. The person making the request should briefly describe the interest concerned and if appropriate, state why he or she is a proper representative of a group or class of persons that has such an interest, and a daytime telephone number where the requester may be contacted. Six copies of a speaker's statement should be brought to the hearing. In the event that any person wishing to testify cannot provide eight copies, alternative arrangements can be made in advance of the hearing. 2. Conduct of the Hearing DOE reserves the right to select the persons to be heard at the hearing, to schedule their respective presentations, and to establish the procedures governing the conduct of the hearing. The length of each presentation may be limited, based on the number of persons requesting to be heard. A DOE official will be designated to preside at the hearing. This will not be an evidentiary or judicial-type hearing but will be conducted in accordance with 5 U.S.C. 553 and section 501 of the Department of Energy Organization Act, 42 U.S.C. 7191. Questions may be asked only by those conducting the hearing. At the conclusion of all initial oral statements, each person who has made an oral statement will be given the opportunity, if he or she so desires, to make a rebuttal or clarifying statement. The statements will be given in the order in which the initial statements were made and will be subject to time limitations. Any further procedural rules needed for the proper conduct of the hearing will be announced by the presiding officer. IV. Procedural Requirements A. Environmental Review Pursuant to section 7(a) of the Federal Energy Administration Act of 1974 (15 U.S.C. 766(a)), a copy of this notice was submitted to the Administrator of the Environmental Protection Agency for the Administrator's comments concerning the impacts of this proposal on the quality of the environment. This rulemaking has been reviewed in accordance with the requirements of the DOE--National Environmental Policy Act Final Rule as published in the Federal Register on April 24, 1992. Based on that review, this rulemaking was found to qualify for a categorical exclusion under Appendix A to subpart D, Item A5 of the Final Rule: Rulemaking (interpreting/amending), no change in environmental effect. The rulemaking does not change the environmental effect of the current version of 10 CFR part 474. B. Regulatory Review Pursuant to the January 22, 1993, memorandum on the subject of regulatory review from the Director of the Office of Management and Budget (58 FR 6074, January 25, 1993), DOE submitted this notice to the Director for appropriate review. The Director has completed his review. Separately, DOE has determined that there is no need for a regulatory impact analysis because the rule is not a major rule as that term is defined in section 1(b) of Executive Order 12291. C. Regulatory Flexibility Act The Regulatory Flexibility Act (Pub. L. 96-345) (5 U.S.C. 601-612) requires that an agency prepare an initial regulatory flexibility analysis to be published at the time the proposed rule is published. This requirement (which appears in section 603) does not apply if the agency certifies that the rule will not, if promulgated, have a ``significant economic impact on a substantial number of small entities.'' DOE certifies that this action will have little, if any, effect on small business. It is directed at vehicle manufacturers that will be concerned with a mix of petroleum and electric fueled vehicles in their annual production. D. Federalism Review Executive Order 12612 (52 FR 41685, October 30, 1987) requires that regulations or rules be reviewed for any substantial direct effects on States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among various levels of government. If there are sufficient substantial direct effects, then Executive Order 12612 requires preparation of a federalism assessment to be used in all decisions involved in promulgating such a regulation or rule. DOE's responsibility with this action and 10 CFR part 474 serve only to provide a method of interpreting 40 CFR part 600 (Fuel Economy of Motor Vehicles) for electric vehicles. The action does not involve any substantial direct effects on States of other considerations stated in Executive Order 12612. Hence, no federalism assessment is required. E. ``Takings'' Assessment Review It has been determined that pursuant to Executive Order 12630 (52 FR 8859, March 18, 1988), this proposed regulation, if adopted, would not result in any takings which might require compensation under the Fifth Amendment to the United States Constitution. F. Review Under Section 32 of the Federal Energy Administration Authorization Act Section 32 of the Federal Energy Administration Act of 1974 (15 U.S.C. 788) imposes certain requirements when a proposed rule contains commercial standards or authorizes or requires the use of such standards. The commercial standards proposed today incorporate commercial standards to measure the energy consumption and range of electric vehicles. The commercial standards are the Society of Automotive Engineers Electric Vehicle Energy Consumption and Range Test Procedure J1634. DOE has evaluated the promulgation of these standards in light of the public participation criteria of section 32(b). The Department is unable to conclude whether development of these standards fully complied with section 32(b) regarding the manner of public participation. Finally, as required by section 32(c), DOE will consult with the Attorney General and the Chairman of the Federal Trade Commission concerning the impact of these standards on competition, prior to prescribing final test procedures. G. Review Under Executive Order 12778 Section 2 of Executive Order 12778 instructs each agency subject to Executive Order 12291 to adhere to certain requirements in promulgating new regulations and reviewing existing regulations. These requirements, set forth in sections 2(a) and (b)(2), include eliminating drafting errors and needless ambiguity, drafting the regulations to minimize litigation, providing clear and certain legal standards for affected conduct, and promoting simplification and burden reduction. Agencies are also instructed to make every reasonable effort to ensure that the regulation specifies clearly any preemptive effect, effect on existing Federal law or regulation, and retroactive effect; describes any administrative proceedings to be available prior to judicial review and any provisions for the exhaustion of such administrative proceedings; and defines key terms. The DOE certifies that today's proposed rule meets the requirements of sections 2(a) and (b)(2) of Executive Order 12778. List of Subjects in 10 CFR Part 474: Electric power, Energy conservation, Incorporation by reference, Motor vehicles, Research. For the reasons set forth in the preamble, DOE proposes to amend part 474 of chapter II of title 10 of the Code of Federal Regulations as set forth below. Issued in Washington, DC, on January 14, 1994. Christine A. Ervin, Assistant Secretary, Energy Efficiency and Renewable Energy. PART 474--ELECTRIC AND HYBRID VEHICLE RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM; EQUIVALENT PETROLEUM-BASED FUEL ECONOMY CALCULATION 1. The authority citation for part 474 continues to read as follows: Authority: Section 503(a)(3) Motor Vehicle Information and Cost Savings Act, Pub. L. 94-163 (15 U.S.C. 2003(a)(3)), as added by Section 18, Chrysler Corporation Loan Guarantee Act of 1979, Pub. L. 96-185; Department of Energy Organization Act, Pub. L. 95-91. 2. Section 474.2 is amended by removing the definitions for ``Steady- speed electrical efficiency value'' and ``Stop-and-go electrical efficiency value'' and adding the following definitions in alphabetical order: Sec. 474.2 Definitions. * * * * * Highway fuel economy test procedure driving schedule electrical efficiency value means the average number of kilowatt-hours of electrical energy required for an electric vehicle to travel 1 mile of the highway fuel economy test procedure driving schedule, as determined in accordance with Sec. 474.3(c). * * * * * Urban driving schedule electrical efficiency value means the average number of kilowatt-hours of electrical energy required for an electric vehicle to travel one mile of the urban driving schedule, as determined in accordance with Sec. 474.3(b). 3. Section 474.3 is revised to read as follows: Sec. 474.3 Test procedures. (a) The conditions and equipment in the Electric Vehicle Energy Consumption and Range Test Procedure--J1634 of the Society of Automotive Engineers shall be used for conducting the test procedures set forth in this section. (b) The energy consumption test procedures prescribed in Society of Automotive Engineers procedure J1634, Section 6, using the Environmental Protection Agency Urban Driving Schedule, shall be used for generation of the urban driving schedule electrical efficiency value. (c) The energy consumption test procedures prescribed in Society of Automotive Engineers procedure J1634, Section 6, using the Highway Fuel Economy Test Procedure Driving Schedule, shall be used for generation of the highway fuel economy test procedure driving schedule electrical efficiency value. 4. Section 474.4 is amended by revising paragraphs (a), (b) and (e) to read as follows: Sec. 474.4 Equivalent petroleum-based fuel economy calculation. (a) Calculate the equivalent petroleum-based fuel economy of an electric vehicle as follows: (1) Determine the urban driving schedule electrical efficiency value, according to Sec. 474.3(b). (2) Determine the highway driving schedule electrical efficiency value, according to Sec. 474.3(c). (b) Calculate the electrical energy efficiency value by: (1) Multiplying the urban driving schedule electrical efficiency value by 0.55; and (2) Multiplying the highway fuel economy test procedure driving schedule electrical efficiency value by 0.45; and (3) Adding the resulting two figures, rounding to the nearest 0.01 kWh/mile. * * * * * (e) Calculate the equivalent petroleum-based fuel economy value in miles per gallon by multiplying the electric energy efficiency value by one of the three petroleum equivalency factor values which reflect the three production volume/accessory combinations specified in Sec. 474.4(d): (i) 2.32; (ii) 2.09; or (iii) 1.88. [FR Doc. 94-2093 Filed 2-3-94; 8:45 am] BILLING CODE 6450-01-P