Alternative Method for Calculating Off-cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From BMW Group, Ford Motor Company, General Motors Corporation, and Volkswagen Group of America

Alternative Method for Calculating Off-cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From BMW Group, Ford Motor Company, General Motors Corporation, and Volkswagen Group of America

Alternative Method for Calculating Off-cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From BMW Group, Ford Motor Company, General Motors Corporation, and Volkswagen Group of America

Byron J. Bunker
Environmental Protection Agency
2 September 2016

[Federal Register Volume 81, Number 171 (Friday, September 2, 2016)]
[Notices]
[Pages 60694-60697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21217]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9951-82-OAR]

Alternative Method for Calculating Off-cycle Credits Under the
Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From
BMW Group, Ford Motor Company, General Motors Corporation, and
Volkswagen Group of America

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency (EPA) is requesting
comment on applications from BMW of North American (BMW), Ford Motor
Company (Ford), General Motors Corporation (GM), and Volkswagen Group
of America (VW) for off-cycle carbon dioxide (CO2) credits
under EPA's light-duty vehicle greenhouse gas emissions standards.
``Off-cycle'' emission reductions can be achieved by employing
technologies that result in real-world benefits, but where that benefit
is not adequately captured on the test procedures used by manufacturers
to demonstrate compliance with emission standards. EPA's light-duty
vehicle greenhouse gas program acknowledges these benefits by giving
automobile manufacturers several options for generating ``off-cycle''
carbon dioxide (CO2) credits. Under the regulations, a
manufacturer may apply for CO2 credits for off-cycle
technologies that result in off-cycle benefits. In these cases, a
manufacturer must provide EPA with a proposed methodology for
determining the real-world off-cycle benefit. These four manufacturers
have submitted applications that describe methodologies for determining
off-cycle credits. The off-cycle technologies vary by manufacturer and
include active aerodynamics systems, active cabin ventilation, active
seat ventilation, solar reflective glass/glazing, solar reflective
surface coating (paint), active engine warmup, active transmission
warmup, engine idle stop-start systems, and high efficiency lighting.
Pursuant to applicable regulations, EPA is making descriptions of each
manufacturer's off-cycle credit calculation methodologies available for
public comment.

DATES: Comments must be received on or before October 3, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2016-0503, to the Federal eRulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting
comments. Once submitted, comments cannot be edited or withdrawn. The
EPA may publish any comment received to its public docket. Do not
submit electronically any information you consider to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Multimedia submissions (audio, video, etc.) must
be accompanied by a written comment. The written comment is considered
the official comment and should include discussion of all points you
wish to make. The EPA will generally not consider comments or comment
contents located outside of the primary submission (i.e. on the web,
cloud, or other file sharing system). For additional submission
methods, the full EPA public comment policy, information about CBI or
multimedia submissions, and general guidance on making effective
comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Roberts French, Environmental
Protection Specialist, Office of Transportation and Air Quality,
Compliance Division, U.S. Environmental Protection Agency, 2000
Traverwood Drive, Ann Arbor, MI 48105. Telephone: (734) 214-4380. Fax:
(734) 214-4869. Email address: french.roberts@epa.gov.

SUPPLEMENTARY INFORMATION:

I. Background

EPA's light-duty vehicle greenhouse gas (GHG) program provides
three pathways by which a manufacturer may accrue off-cycle carbon
dioxide (CO2) credits for those technologies that achieve
CO2 reductions in the real world but where those reductions
are not adequately captured on the test used to determine compliance
with the CO2 standards, and which are not otherwise
reflected in the standards' stringency. The first pathway is a
predetermined list of credit values for specific off-cycle technologies
that may be used beginning in model year 2014.\1\ This pathway allows
manufacturers to use conservative credit values established by EPA for
a wide range of technologies, with minimal data submittal or testing
requirements, as long as the technologies meet EPA regulatory
definitions. In cases where the off-cycle technology is not on the menu
but additional laboratory testing can demonstrate emission benefits, a
second pathway allows manufacturers to use a broader array of emission
tests (known as ``5-cycle'' testing because the

[[Page 60695]]

methodology uses five different testing procedures) to demonstrate and
justify off-cycle CO2 credits.\2\ The additional emission
tests allow emission benefits to be demonstrated over some elements of
real-world driving not adequately captured by the GHG compliance tests,
including high speeds, hard accelerations, and cold temperatures. These
first two methodologies were completely defined through notice and
comment rulemaking and therefore no additional process is necessary for
manufacturers to use these methods. The third and last pathway allows
manufacturers to seek EPA approval to use an alternative methodology
for determining the off-cycle CO2 credits.\3\ This option is
only available if the benefit of the technology cannot be adequately
demonstrated using the 5-cycle methodology. Manufacturers may also use
this option for model years prior to 2014 to demonstrate off-cycle
CO2 reductions for technologies that are on the
predetermined list, or to demonstrate reductions that exceed those
available via use of the predetermined list.
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\1\ See 40 CFR 86.1869-12(b).
\2\ See 40 CFR 86.1869-12(c).
\3\ See 40 CFR 86.1869-12(d).
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Under the regulations, a manufacturer seeking to demonstrate off-
cycle credits with an alternative methodology (i.e., under the third
pathway described above) must describe a methodology that meets the
following criteria:
Use modeling, on-road testing, on-road data collection, or
other approved analytical or engineering methods;
Be robust, verifiable, and capable of demonstrating the
real-world emissions benefit with strong statistical significance;
Result in a demonstration of baseline and controlled
emissions over a wide range of driving conditions and number of
vehicles such that issues of data uncertainty are minimized;
Result in data on a model type basis unless the
manufacturer demonstrates that another basis is appropriate and
adequate.
Further, the regulations specify the following requirements
regarding an application for off-cycle CO2 credits:
A manufacturer requesting off-cycle credits must develop a
methodology for demonstrating and determining the benefit of the off-
cycle technology, and carry out any necessary testing and analysis
required to support that methodology.
A manufacturer requesting off-cycle credits must conduct
testing and/or prepare engineering analyses that demonstrate the in-use
durability of the technology for the full useful life of the vehicle.
The application must contain a detailed description of the
off-cycle technology and how it functions to reduce CO2
emissions under conditions not represented on the compliance tests.
The application must contain a list of the vehicle
model(s) which will be equipped with the technology.
The application must contain a detailed description of the
test vehicles selected and an engineering analysis that supports the
selection of those vehicles for testing.
The application must contain all testing and/or simulation
data required under the regulations, plus any other data the
manufacturer has considered in the analysis.
Finally, the alternative methodology must be approved by EPA prior
to the manufacturer using it to generate credits. As part of the review
process defined by regulation, the alternative methodology submitted to
EPA for consideration must be made available for public comment.\4\ EPA
will consider public comments as part of its final decision to approve
or deny the request for off-cycle credits.
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\4\ See 40 CFR 86.1869-12(d)(2).
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II. Off-Cycle Credit Applications

A. BMW of North America

Using the alternative methodology approach discussed above, BMW of
North America (BMW) is applying for credits for model years prior to
2014, and thus prior to when the list of default credits became
available. BMW has applied for off-cycle credits using the alternative
demonstration methodology pathway for the following technologies: high
efficiency exterior lighting, solar reflective glass/glazing, active
seat ventilation, active cabin ventilation, and active engine warmup.
With the exception of active cabin ventilation, EPA has already
approved credits for these technologies for model years prior to
2014.\5\ BMW's request is consistent with previously approved
methodologies and credits. The application covers 2009-2013 model year
vehicles. All of these technologies are described in the predetermined
list of credits available in the 2014 and later model years. The
methodologies described by BMW are consistent with those used by EPA to
establish the predetermined list of credits in the regulations, and
would result in the same credit values as described in the regulations.
The magnitude of these credits is determined by specification or
calculations in the regulations based on vehicle-specific measurements
(e.g., the area of glass or the lighting locations using the specified
technologies), but would be no higher than the following established
regulatory values:
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\5\ ``EPA Decision Document: Off-cycle Credits for Fiat Chrysler
Automobiles, Ford Motor Company, and General Motors Corporation.''
Compliance Division, Office of Transportation and Air Quality, U.S.
Environmental Protection Agency. EPA-420-R-15-014, September 2015.

B. Ford Motor Company

Using the alternative methodology approach discussed above, Ford
Motor Company (Ford) is applying for credits for model years prior to
2014, and thus prior to when the list of default credits became
available. Ford has applied for off-cycle credits using the alternative
demonstration methodology pathway for the following technologies: high
efficiency exterior lighting, active seat ventilation, active
aerodynamics, active transmission warmup, active engine warmup, and
engine idle stop-start systems. EPA has already approved credits for
these technologies for the 2012 and 2013 model years for Ford, and for
some of these technologies for Fiat Chrysler for the 2009-2013 model
years.\6\ Ford's request is consistent with

[[Page 60696]]

previously approved methodologies and credits. The application covers
the 2009-2011 model year vehicles, model years which were inadvertently
omitted from Ford's previous request. All of these technologies are
described in the predetermined list of credits available in the 2014
and later model years. The methodologies described by Ford are
consistent with those used by EPA to establish the predetermined list
of credits in the regulations, and would result in the same credit
values as described in the regulations. The magnitude of these credits
is determined by specification or calculations in the regulations based
on vehicle-specific measurements (e.g., the area of glass or the
lighting locations using the specified technologies), but would be no
higher than the following established regulatory values:
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\6\ ``EPA Decision Document: Off-cycle Credits for Fiat Chrysler
Automobiles, Ford Motor Company, and General Motors Corporation.''
Compliance Division, Office of Transportation and Air Quality, U.S.
Environmental Protection Agency. EPA-420-R-15-014, September 2015.

------------------------------------------------------------------------
Off-cycle Off-cycle
Technology credit--cars credit--trucks
(grams/mile) (grams/mile)
------------------------------------------------------------------------
high efficiency lighting............ 1.0 1.0
Active seat ventilation............. 1.0 1.3
-----------------------------------
Active aerodynamics................. Based on measured reduction in the
coefficient of drag.
-----------------------------------
Active transmission warm-up......... 1.5 3.2
Active engine warm-up............... 1.5 3.2
Engine idle start-stop.............. 2.5 4.4
------------------------------------------------------------------------

C. General Motors Corporation

Using the alternative methodology approach discussed above, General
Motors Corporation (GM) is applying for credits for model years prior
to 2014, and thus prior to when the list of default credits became
available. GM has applied for off-cycle credits using the alternative
demonstration methodology pathway for the following technologies: high
efficiency exterior lighting, solar reflective glass/glazing, solar
reflective paint, active seat ventilation, active aerodynamics, active
engine warmup, and engine idle stop-start systems. EPA has already
approved credits for these technologies for model years prior to
2014.\7\ GM's request is consistent with previously approved
methodologies and credits. The application covers the 2009-2013 model
year vehicles. All of these technologies are described in the
predetermined list of credits available in the 2014 and later model
years. The methodologies described by GM are consistent with those used
by EPA to establish the predetermined list of credits in the
regulations, and would result in the same credit values as described in
the regulations. The magnitude of these credits is determined by
specification or calculations in the regulations based on vehicle-
specific measurements (e.g., the area of glass or the lighting
locations using the specified technologies), but would be no higher
than the following established regulatory values:
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\7\ ``EPA Decision Document: Off-cycle Credits for Fiat Chrysler
Automobiles, Ford Motor Company, and General Motors Corporation.''
Compliance Division, Office of Transportation and Air Quality, U.S.
Environmental Protection Agency. EPA-420-R-15-014, September 2015.

------------------------------------------------------------------------
Off-cycle Off-cycle
Technology credit--cars credit--trucks
(grams/mile) (grams/mile)
------------------------------------------------------------------------
High efficiency lighting............ 1.0 1.0
Solar reflective glass/glazing...... 2.9 3.9
Solar reflective paint.............. 0.4 0.5
Active seat ventilation............. 1.0 1.3
-----------------------------------
Active aerodynamics................. Based on measured reduction in the
coefficient of drag.
-----------------------------------
Active engine warm-up............... 1.5 3.2
Engine idle start-stop.............. 2.5 4.4
------------------------------------------------------------------------

D. Volkswagen of America

Using the alternative methodology approach discussed above,
Volkswagen of America (VW) is applying for credits for model years
prior to 2014, and thus prior to when the list of default credits
became available. VW has applied for off-cycle credits using the
alternative demonstration methodology pathway for the following
technologies: Active aerodynamics systems, active seat ventilation,
solar reflective glass/glazing, solar reflective surface coating
(paint), active engine warmup, active transmission warmup, engine idle
stop-start systems, and high efficiency lighting. EPA has already
approved credits for these technologies for model years prior to
2014.\8\ VW's request is consistent with previously approved
methodologies and credits. The application covers the 2012-2013 model
year vehicles. All of these technologies are described in the
predetermined list of credits available in the 2014 and later model
years. The methodologies described by VW are consistent with those used
by EPA to establish the predetermined list of credits in the
regulations, and would result in the same credit values as described in
the regulations. The magnitude of these

[[Page 60697]]

credits is determined by specification or calculations in the
regulations based on vehicle-specific measurements (e.g., the area of
glass or the lighting locations using the specified technologies), but
would be no higher than the following established regulatory values:
---------------------------------------------------------------------------

\8\ ``EPA Decision Document: Off-cycle Credits for Fiat Chrysler
Automobiles, Ford Motor Company, and General Motors Corporation.''
Compliance Division, Office of Transportation and Air Quality, U.S.
Environmental Protection Agency. EPA-420-R-15-014, September 2015.

------------------------------------------------------------------------
Off-cycle Off-cycle
Technology credit--cars credit--trucks
(grams/mile) (grams/mile)
------------------------------------------------------------------------
High efficiency lighting............ 1.0 1.0
Solar reflective glass/glazing...... 2.9 3.9
Solar reflective paint.............. 0.4 0.5
Active seat ventilation............. 1.0 1.3
-----------------------------------
Active aerodynamics................. Based on measured reduction in the
coefficient of drag.
-----------------------------------
Active engine warm-up............... 1.5 3.2
Active transmission warm-up......... 1.5 3.2
Engine idle start-stop.............. 2.5 4.4
------------------------------------------------------------------------

III. EPA Decision Process

EPA has reviewed the applications for completeness and is now
making the applications available for public review and comment as
required by the regulations. The off-cycle credit applications
submitted by BMW, Ford, GM, and VW (with confidential business
information redacted) have been placed in the public docket (see
ADDRESSES section above) and on EPA's Web site at http://www.epa.gov/otaq/regs/ld-hwy/greenhouse/ld-ghg.htm. EPA is providing a 30-day
comment period on the applications for off-cycle credits described in
this notice, as specified by the regulations. The manufacturers may
submit a written rebuttal of comments for EPA's consideration, or may
revise an application in response to comments. After reviewing any
public comments and any rebuttal of comments submitted by
manufacturers, EPA will make a final decision regarding the credit
requests. EPA will make its decision available to the public by placing
a decision document (or multiple decision documents) in the docket and
on EPA's Web site at http://www.epa.gov/otaq/regs/ld-hwy/greenhouse/ld-ghg.htm. While the broad methodologies used by these manufacturers
could potentially be used for other vehicles and by other
manufacturers, the vehicle specific data needed to demonstrate the off-
cycle emissions reductions would likely be different. In such cases, a
new application would be required, including an opportunity for public
comment.

Dated: August 26, 2016.
Byron J. Bunker,
Director, Compliance Division, Office of Transportation and Air
Quality, Office of Air and Radiation.
[FR Doc. 2016-21217 Filed 9-1-16; 8:45 am]
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