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Request for Information Regarding the Advanced Technology Vehicles Manufacturing Loan Program Publication: Federal Register Department: Energy Byline: Treena V. Garrett Date: 29 May 2024 Subject: American Government  , Electric Vehicles
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[Federal Register Volume 89, Number 104 (Wednesday, May 29, 2024)]
[Notices]
[Pages 46378-46382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11723]
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DEPARTMENT OF ENERGY
RIN 1901-AB55
Request for Information Regarding the Advanced Technology
Vehicles Manufacturing Loan Program
AGENCY: Loan Programs Office, Department of Energy.
ACTION: Request for information (``RFI'').
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SUMMARY: The Loan Programs Office (``LPO'') of the U.S. Department of
Energy (``DOE'') is seeking public input on this RFI to inform LPO's
implementation of the Inflation Reduction Act of 2022 provisions
relating to the Advanced Technology Vehicles Manufacturing Loan Program
(the ``ATVM Program'').
[[Page 46379]]
DATES: Written comments are requested by June 28, 2024. If you
anticipate difficulty in submitting comments within that period,
contact the person listed in FOR FURTHER INFORMATION CONTACT as soon as
possible.
ADDRESSES: Interested persons are encouraged to submit comments,
identified by ``ATVM Program RFI,'' by any of the following methods:
Email: lpofederalregistercomments@hq.doe.gov. Include ``ATVM
Program RFI'' in the subject line of the message. Email attachments can
be provided in PDF (preferred), Microsoft Word or Excel, WordPerfect,
or text (ASCII) file format, prepared in accordance with the detailed
instructions in section III of this document.
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.
FOR FURTHER INFORMATION CONTACT: 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
A. Background: Decarbonization of the Transportation Sector and
Strengthening Domestic Supply Chains
B. ATVM Program
C. Infrastructure Investment and Jobs Act & Inflation Reduction
Act
II. Request for Information
A. Trains or Locomotives
B. Maritime Vessels
C. Aircrafts
D. Hyperloop Technology
E. Community Jobs & Justice
III. Submission of Comments
I. Introduction
A. Background: Decarbonization of the Transportation Sector and
Strengthening Domestic Supply Chains
On August 16, 2022, President Joseph R. Biden signed the landmark
Inflation Reduction Act of 2022 (``IRA'') \1\ into law, which in part
supports the broad goals of deploying clean energy, strengthening
domestic manufacturing, and investing in workers and communities. The
IRA reflects advanced technology vehicle manufacturing's role in
advancing transportation decarbonization and the supply chain goals of
the Nation and U.S. manufacturers. Specifically, section 50142 of the
IRA appropriates $3 billion, available through September 30, 2028, for
the costs of providing direct loans under section 136(d) of the Energy
Independence and Security Act of 2007,\2\ the underlying authority for
DOE's ATVM Program.\3\
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\1\ Public Law 117-169 (2022).
\2\ 42 U.S.C. 17013(d).
\3\ The Consolidated Security, Disaster Assistance, and
Continuing Appropriations Act of 2009 provided loan authority of $25
billion and appropriated $7.51 billion for credit subsidy cost.
Public Law 110-329, sec. 129(a) (2008). The IRA removed the $25
billion cap on the total amount of ATVM Program loans established
under section 136(d)(1) of the Energy Independence and Security Act
of 2007. Public Law 117-169, sec. 50142(c) (2022).
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The ATVM Program can provide financing to help deploy eligible
advanced technology vehicles or the manufacturing of qualifying
components for eligible vehicles in the United States. These projects
can be along the advanced technology vehicle value chain, including
processing of critical materials for advanced technology vehicles;
manufacturing of battery cell components, battery cells, battery
modules, and battery packs for electric vehicles (``EVs''); recycling
of battery components or critical materials; manufacturing of various
nonroad advanced technology vehicles or their components; or
manufacturing of EV charging infrastructure components, among other
areas. The ATVM Program supports applicants' efforts to reequip,
modernize, or expand existing facilities for these purposes, and/or
support engineering integration performed related to the manufacturing
of eligible vehicles or components in the United States.
Onshoring and reshoring parts of advanced technology vehicle supply
chain is an important part of helping the United States increase its
energy independence and bolster its competitiveness in a global supply
chain. Advanced technology vehicles are often dependent on a consistent
and predictable supply chain. Today, the United States relies heavily
on importing advanced technology vehicle supply chain components from
abroad, exposing the nation to supply chain vulnerabilities that
threaten to disrupt the availability and cost of these technologies, as
well as the workforce that manufactures them.
LPO projects are often first movers in these sectors in the United
States, helping American manufacturers scale up domestic manufacturing
capacity, develop technical know-how, and create good-paying American
jobs in new sectors. By providing flexible access to capital for
borrowers in clean energy sectors where traditional commercial debt is
unavailable, LPO can help support American entrepreneurs' efforts in
these areas. This is critical as DOE seeks to deploy advanced
technology vehicle production at scale while protecting the research,
technology, and economic security interests of the American people.
Investment in American manufacturing also helps the United States lead
the world in clean energy industries and positions U.S. firms to export
these clean technologies to our global partners. In addition,
supporting the advanced technology vehicle supply chain and deploying
these vehicles helps meet our climate and emissions reduction
objectives as a Nation.
President Biden set an ambitious goal that at least 50 percent of
all new passenger cars and light trucks and at least 30 percent of all
medium and heavy-duty vehicles sold in 2030 be zero-emission vehicles,
including battery electric, plug-in hybrid electric, or fuel cell
EVs.\4\ The transportation sector is the largest source of greenhouse
gas (``GHG'') emissions in the United States, accounting for 27 percent
of all emissions in 2020. Transportation also is a major source of
smog-forming nitrogen oxides and particulate matter, which can trigger
asthma attacks and other health problems for the most vulnerable among
us.\5\ Advanced technology vehicles and qualifying components stand to
help reduce GHG emissions and other mobile source air pollutants that
may have a disproportionate impact on the air quality in overburdened
and underserved communities.
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\4\ E.O. 14037, ``Strengthening American Leadership in Clean
Cars and Trucks,'' 86 FR 43583 (August 10, 2021); ``FACT SHEET:
Biden-Harris Administration Proposes New Standards to Protect Public
Health that Will Save Consumers Money, and Increase Energy
Security,'' April 12, 2023. Available at www.whitehouse.gov/briefing-room/statements-releases/2023/04/12/fact-sheet-biden-harris-administration-proposes-new-standards-to-protect-public-health-that-will-save-consumers-money-and-increase-energy-security/.
\5\ Building a Clean Energy Economy: A Guidebook to the
Inflation Reduction Act's Investments in Clean Energy and Climate
Action, Version 2, January 2023. Available at www.whitehouse.gov/wp-content/uploads/2022/12/Inflation-Reduction-Act-Guidebook.pdf.
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Onshoring and reshoring parts of advanced technology vehicle supply
chain in the United States is critical to growing America's
manufacturing base, reaching the Biden-Harris Administration's climate
and multi-pollutant emissions reduction objectives, and protecting
taxpayer resources and our national security.
[[Page 46380]]
B. ATVM Program
Section 136 of the Energy Independence and Security Act of 2007, as
amended (42 U.S.C. 17013) (the ``ATVM statute'') authorizes the
Secretary of Energy (the ``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 ATVM Program represents the Secretary's implementation
of the direct loan authority under the ATVM statute and is administered
by LPO. The purpose of the ATVM Program is to originate, underwrite,
and service loans to eligible vehicle 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 and qualifying components; and (ii)
engineering integration performed in the United States of advanced
technology vehicles and qualifying components. These manufacturing
facilities support vehicles that demonstrate improved performance and/
or emissions standards compared to the existing vehicle fleet, in
furtherance of the Administration's transportation decarbonization and
EV goals.
C. Infrastructure Investment and Jobs Act & Inflation Reduction Act
Section 40401(b) of the Infrastructure Investment and Jobs Act \6\
(the ``IIJA'') amended the definitions provision of the ATVM statute to
add the following categories of vehicles within the ATVM statute's
definition of ``advanced technology vehicle'': 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.\7\
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\6\ Public Law 117-58 (2021).
\7\ 42 U.S.C. 17013(a)(1)(B)-(F).
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Section 50142 of the IRA appropriates $3 billion for the ATVM
Program, including to support direct loans for projects in the
categories of advanced technology vehicles added to the program by the
IIJA. However, section 50142 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 such advanced
technology vehicles emit, under any possible operational mode or
condition, low or zero exhaust emissions of greenhouse gases''
(emphasis added).8 9 This standard was made part of the ATVM
Program regulations at 10 CFR part 611.\10\
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\8\ Public Law 117-169, sec. 50142(a) (2022).
\9\ Section 40401 of the IIJA also prohibited the Secretary from
using amounts appropriated prior to the date of the enactment of the
IIJA to provide direct loans under the ATVM statute for the costs of
activities that were not eligible for those loans prior to that
date. Public Law 117-58, sec. 40401(b)(3)(E) (2021), adding 42
U.S.C. 17013(l). However, this prohibition was later eliminated by
the Consolidated Appropriations Act of 2023. Public Law 117-328,
div. D, tit. III, sec. 308 (2022), repealing 42 U.S.C. 17013(l).
\10\ Statutory Updates to the Advanced Technology Vehicles
Manufacturing Program, 89 FR 33196 (April 29, 2024); anticipated to
become effective July 15, 2024, unless adverse comment is received
by May 29, 2024.
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LPO is currently establishing additional criteria pursuant to which
it will evaluate loan applications under the expanded categories of
advanced technology vehicles, including satisfaction of the GHG
emission requirements of the IRA. LPO expects that these requirements
will evolve over time as each applicable advanced technology vehicle
sector matures.
II. Request for Information
The purpose of this RFI is to solicit feedback from manufacturers,
project and technology developers, investors, minority-owned
businesses, academia, research laboratories, government agencies, State
and local officials, labor unions, Tribes, community-based
organizations, and other interested parties on issues related to the
implementation of the changes to the ATVM Program stemming from the IRA
and IIJA. This is solely a request for information.
You may answer as few or as many of the questions below as you
would like but please focus on the areas that are most pertinent to
your expertise. When responding, please use the bolded category letters
and sub-numbers as headings in your response to the greatest extent
possible and refer to the questions (e.g., A.1., A.2., A.3., . . .) in
the body of your responses. This helps save time both for the responder
and the reviewers. Especially where noted, respondents should think in
terms of potential categories of advanced technology vehicles that
would fall within the purpose and scope of the expanded ATVM Program:
trains or locomotives, maritime vessels; aircraft; and hyperloop
technology.
Please be as specific as possible in all responses, including what
subset of an industry your answer is in reference to (e.g., Offshore
Support Vessels or Commercial Harbor Craft in the maritime industry),
if applicable.
A. Trains or Locomotives
1. ``Advanced technology vehicles'' in the context of the ATVM
Program are defined as having increased performance requirements, for
example, better fuel economy for on-road advanced technology vehicles.
The IRA requires trains or locomotives to ``emit, under any possible
operational mode or condition, low or zero exhaust emissions of
greenhouse gases'' to be eligible for IRA funding.\11\ Recognizing that
different trains, locomotives, or qualifying components within the rail
industry have different potential performance requirements and metrics,
please indicate what sub-category of the industry your answer reflects.
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\11\ Footnote 8, supra.
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a. How could DOE consider the performance requirements for
``business as usual'' trains or locomotives? How could DOE consider the
performance requirements for low or zero GHG emission ``advanced
technology'' trains or locomotives?
b. What metrics/testing protocols/standards do customers typically
use to measure the performance requirements and performance targets of
trains or locomotives? How do they validate or qualify performance?
c. Do existing bodies, such as regulators or industry monitors,
measure these performance and emissions metrics? Please describe what
bodies do so and how they measure.
2. Please comment on the near and long term expected capital
investment in the train and locomotive industry, including components.
a. What investments are planned for new and existing manufacturing
facilities? What factors influence these investment decisions?
b. What is the expected volume and distribution of new or modified
vehicles in the train and locomotive industry? What factors influence
procurement decisions in this sector?
3. Please comment on key barriers to implementing advanced
technology vehicle manufacturing projects in the rail industry.
[[Page 46381]]
4. What supply chain issues do the advanced technology rail
industry face? Are these expected to change over time and if so, how?
5. Please comment on any current or upcoming regulatory
requirements or factors impacting the rail industry and LPO's ability
to support train or locomotive manufacturing projects.
a. Are there standard certification or readiness indicators
applicable to the rail sector which indicate a rail product's
commercial readiness?
B. Maritime Vessels
1. ``Advanced technology vehicles'' in the context of the ATVM
Program are defined as having increased performance requirements, for
example, better fuel economy for on-road advanced technology vehicles.
The IRA requires maritime vessels to ``emit, under any possible
operational mode or condition, low or zero exhaust emissions of
greenhouse gases'' to be eligible for IRA funding.\12\ Recognizing that
different maritime vessels or qualifying components within the maritime
industry have different potential performance requirements and metrics,
please indicate what sub-category of the industry your answer reflects.
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\12\ Footnote 8, supra.
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a. How could DOE consider the performance requirements for
``business as usual'' maritime vessels? How could DOE consider the
performance requirements for low or zero GHG emission ``advanced
technology'' maritime vessels?
b. What metrics do customers typically use to measure the
performance requirements and performance targets of maritime vessels?
How do they validate or qualify performance?
c. Do existing bodies, such as regulators or industry monitors,
measure these performance and emissions metrics? Please describe what
bodies do so and how they measure.
2. Please comment on the near and long term expected capital
investment in the maritime industry, including components.
a. What investments are planned for new and existing manufacturing
facilities? What factors influence these investment decisions?
b. What is the expected volume and distribution of new or modified
vehicles in the maritime industry. What factors influence procurement
decisions in this sector?
3. Please comment on key barriers to implementing advanced
technology vehicle manufacturing projects in the maritime industry.
4. What supply chain issues do the advanced technology maritime
industry face? Are these expected to change over time and if so, how?
5. Please comment on any regulatory requirements or factors
impacting the maritime industry and LPO's ability to support maritime
vessel manufacturing projects.
a. Are there standard certification or readiness indicators
applicable to the maritime sector which indicate a maritime product's
commercial readiness?
C. Aircrafts
1. ``Advanced technology vehicles'' in the context of the ATVM
Program are defined as having increased performance requirements, for
example, better fuel economy for on-road advanced technology vehicles.
The IRA requires aircraft to ``emit, under any possible operational
mode or condition, low or zero exhaust emissions of greenhouse gases''
to be eligible for IRA funding.\13\ Recognizing that different aircraft
or qualifying components within the aircraft industry have different
potential performance requirements and metrics, please indicate what
sub-category of the industry your answer reflects.
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\13\ Footnote 8, supra.
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a. How could DOE consider the performance requirements for
``business as usual'' aircraft? How could DOE consider the performance
requirements for low or zero GHG emission ``advanced technology''
aircraft?
b. What metrics do customers typically use to measure the
performance requirements and performance targets of aircraft? How do
they validate or qualify performance?
c. Do existing bodies, such as regulators or industry monitors,
measure these performance and emissions metrics? Please describe what
bodies do so and how they measure.
2. Please comment on the near and long term expected capital
investment in the aircraft industry, including components.
a. What investments are planned for new and existing manufacturing
facilities? What factors influence these investment decisions?
b. What is the expected volume and distribution of new or modified
vehicles in the aircraft industry. What factors influence procurement
decisions in this sector?
3. Please comment on key barriers to implementing advanced
technology vehicle manufacturing projects in the aircraft industry.
4. What supply chain issues do the advanced technology aircraft
industry face? Are these expected to change over time and if so, how?
5. Please comment on any regulatory requirements or factors
impacting the aircraft industry and LPO's ability to support aircraft
manufacturing projects.
a. Are there standard certification or readiness indicators
applicable to the aircraft sector which indicate an aircraft product's
commercial readiness?
D. Hyperloop Technology
1. Please comment on definitions DOE could consider for hyperloop
technology.
2. ``Advanced technology vehicles'' in the context of the ATVM
Program are defined as having increased performance requirements, for
example, better fuel economy for on-road advanced technology vehicles.
The IRA requires hyperloop vehicles to ``emit, under any possible
operational mode or condition, low or zero exhaust emissions of
greenhouse gases'' to be eligible for IRA funding.\14\
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\14\ Footnote 8, supra.
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a. How could DOE consider a ``business as usual'' case for
hyperloop vehicles? How could DOE consider the performance requirements
for low or zero GHG emission ``advanced technology'' hyperloop
vehicles?
b. What design factors or technology components contribute to the
GHG emissions of hyperloop vehicles? What innovations could contribute
to future reductions in GHG emissions from hyperloop vehicles?
3. Please comment on use cases that would represent significant
emissions reductions or efficiency improvements through the use of
advanced technology hyperloop vehicles.
4. Please comment on existing hyperloop technology and potential
near- to mid-term commercial deployments of hyperloop technology.
E. Community Jobs & Justice
1. Please comment on how DOE can consider the broad goals of
deploying clean energy, strengthening domestic manufacturing, investing
in workers and communities, supporting the Justice40 Initiative \15\
including mitigating environmental justice concerns, and engaging in
meaningful tribal consultations when reviewing and evaluating
applications for projects in the ATVM Program.
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\15\ See www.energy.gov/justice/justice40-initiative.
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[[Page 46382]]
III. Submission of Comments
DOE invites all interested parties to submit in writing by June 28,
2024, comments and information on matters addressed in this RFI.
Submitting comments via email or postal mail. 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 on 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.
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 not secured, written in English, and free of any defects or
viruses. Documents should not contain special characters or any form of
encryption and, if possible, they should carry the electronic signature
of the author. Attachments should be limited to no more than 10
megabytes (MB) in size.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This reduces comment processing and posting
time.
Confidential Business Information. According to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt by law from public disclosure should submit via
email 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''
with the information believed to be confidential deleted. Submit these
documents via email. DOE will make its own determination about the
confidential status of the information and treat it according to its
determination.
Signing Authority
This document of the Department of Energy was signed on May 22,
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 May 23, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-11723 Filed 5-28-24; 8:45 am]
BILLING CODE 6450-01-P