[Federal Register Volume 64, Number 96 (Wednesday, May 19, 1999)]
[Rules and Regulations]
[Pages 27169-27175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12571]
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DEPARTMENT OF ENERGY
Office of Energy Efficiency and Renewable Energy
10 CFR Part 490
RIN 1904-AB-00
[Docket No. EE-RM-99-BIOD]
Alternative Fuel Transportation Program; Biodiesel Fuel Use
Credit
AGENCY: Department of Energy.
ACTION: Interim final rule and opportunity for public comment.
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SUMMARY: The Department of Energy (DOE) is today publishing an interim
final rule required by the Energy Conservation Reauthorization Act of
1998 (ECRA), which amended Title III of the Energy Policy Act of 1992
(EPACT) to allow fleets that are required to purchase alternative
fueled vehicles under Titles III, IV and V of EPACT to meet these
requirements, in part, through the use of biodiesel fuel use credits.
The rule establishes procedures for fleets and covered persons to
request credits for specified biodiesel fuel use and implements ECRA's
credit eligibility and allocation provisions. By publishing this rule,
DOE is giving fleets and covered persons, who are otherwise required
under EPACT to purchase an alternative fueled vehicle, the option of
purchasing and using 450 gallons of biodiesel in vehicles in excess of
8,500 lbs. gross vehicle weight instead of acquiring an alternative
fueled vehicle.
DATES: This interim final rule is effective June 18, 1999. DOE will
[[Page 27170]]
consider any public comments that are received on or before July 19,
1999.
ADDRESSES: Written comments (5 copies) should be sent to: Paul McArdle,
U.S. Department of Energy, EE-34, Docket No. EE-RM-99-BIOD, 1000
Independence Ave., SW, Washington, DC 20585. Comments will be available
for public inspection at DOE's Freedom of Information Reading Room,
Room 1E-190, 1000 Independence Avenue, SW, Washington, DC between the
hours of 9:00 a.m. and 4:00 p.m. Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Paul McArdle, Office of Energy
Efficiency and Renewable Energy, EE-34, U.S. Department of Energy, 1000
Independence Avenue, SW, Washington, DC 20585, (202) 586-9171.
SUPPLEMENTARY INFORMATION:
I. Introduction
A. Overview of DOE's Alternative Fuel Transportation Program
B. Prior Administrative Action on Biodiesel
II. Section-by-Section Discussion of Interim Final Rule
III. Public Comment
IV. Regulatory and Procedural Requirements
A. Review Under Executive Order 12866
B. Review Under Executive Order 12612
C. Review Under the Regulatory Flexibility Act
D. Review Under the National Environmental Policy Act
E. Review Under the Paperwork Reduction Act
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates Reform Act of 1995
H. Congressional Notification
I. Introduction
Section 7 of the Energy Conservation Reauthorization Act of 1998
(ECRA), Pub. L. 105-388, adds section 312 to Title III of the Energy
Policy Act of 1992 (EPACT), 42 U.S.C. 13211-13219. Section 312 allows
Titles III and V fleets and covered persons, which are required to
acquire certain annual percentages of alternative fueled vehicles, to
use biodiesel fuel use credits to meet, in part, these acquisition
requirements (although Title IV is included as one of the Titles that
is covered in ECRA, this inclusion appears to be a drafting error since
Title IV has no mandated acquisition requirements for fleets and
covered persons). DOE is required to allocate one credit to fleets and
covered persons for using in certain vehicles 450 gallons (or
``qualifying volume'') of the biodiesel component of a motor fuel
containing at least 20 percent biodiesel by volume.
Although the ``qualifying volume'' is denominated in gallons of
neat biodiesel (B-100), which is a fuel composed of 100 percent
biodiesel by volume, a fleet or covered person can also be allocated a
biodiesel fuel use credit through the use of motor fuels containing at
least 20 percent biodiesel by volume. So for example, if a fleet wished
to qualify for the credit using B-100, it would need to purchase and
use 450 gallons of B-100 to receive one biodiesel fuel use credit.
Alternatively, if a fleet wanted to qualify for the credit using B-20
(a motor fuel containing 20 percent biodiesel and 80 percent petroleum
diesel by volume) it would need to purchase and use 2,250 gallons of B-
20, since each gallon of B-20 contains one-fifth of a gallon of
biodiesel ((2,250 gallons of B-20) * (\1/5\) = 450 gallons of B-100).
The allocation of each biodiesel fuel use credit requires the full
purchase and use of 450 gallons of biodiesel. No rounding of the
biodiesel fuel use credit upward is allowed. For example, if a fleet or
covered person purchased and used 1,200 gallons of biodiesel, an
initial credit calculation would indicate 2.67 credits. However, since
ECRA requires that 450 gallons are needed to achieve each biodiesel
fuel use credit, the fleet or covered person could only be allocated
two biodiesel fuel use credits, using this example. The use of the
biodiesel fuel use credit as the equivalent of acquiring one
alternative fueled vehicle is also restricted to the model year in
which it is generated and cannot be carried forward like alternative
fueled vehicle acquisition credits generated under Subpart F.
The legislation, however, authorizes the Secretary to collect data
which could support a determination to increase the qualifying volume
of biodiesel required to allocate a biodiesel fuel use credit. Any
increase in the qualifying volume would be set equal to the average
annual alternative fuel use in light duty vehicles by fleets and
covered persons. If the data support an increase, the Secretary is to
issue a rulemaking to determine if the qualifying volume should be
increased.
Additionally, the vehicles in which the fuel is used must weigh
more than 8,500 pounds gross vehicle weight rating. Fleets and covered
persons must own or operate these vehicles. Credits will be allocated
only for the biodiesel fuel purchased after the enactment of ECRA,
i.e., November 13, 1998.
The legislation prohibits the allocation of biodiesel fuel use
credits for the purchase of biodiesel when the biodiesel is used in
alternative fueled vehicles that are utilized to satisfy the EPACT
alternative fueled vehicle purchase requirements, or when biodiesel
fuel use is required by Federal or State law. With the exception of
biodiesel fuel providers, allocated credits can be used to satisfy up
to 50 percent of a fleet's or covered person's alternative fueled
vehicles requirements. For example, if a fleet's, or covered person's,
alternative fueled vehicle acquisition requirements for a given model
year were 20 alternative fueled vehicles, that fleet would only be able
to use up to 10 biodiesel fuel use credits as a contribution to its
acquisition requirements. To achieve the 10 biodiesel fuel use credits
the fleet or covered person could purchase and use 4,500 gallons of B-
100 (10 credits). In this example, any biodiesel purchases beyond 4,500
gallons would not generate any additional credits. Alternatively, the
fleet could also be granted the 10 credits through the purchase and use
of 22,500 gallons of B-20, since each gallon of B-20 has one-fifth of a
gallon of biodiesel ((22,500 gallons of B-20) * (\1/5\) = 4,500 gallons
of B-100).
Today's rule adds a new Subpart H to DOE's Alternative Fuel
Transportation Program rules at 10 CFR part 490. Some of the provisions
in current Part 490, such as definitions of fleet and covered persons,
are also applicable to Subpart H. However, the biodiesel credits
provisions under Subpart H cannot be considered a credit under Subpart
F. Because of the relationship of Subpart H to the overall Alternative
Fuel Transportation Program, a brief overall summary of 10 CFR part 490
is discussed.
A. Overview of DOE's Alternative Fuel Transportation Program
10 CFR part 490 sets forth regulations that implement title V of
EPACT, 42 U.S.C. 13251-13264. The regulations mandate alternative
fueled vehicle acquisition requirements for certain alternative fuel
providers and State government fleets. Part 490 is one of a variety of
EPACT programs designed to promote alternative and replacement fuels
that reduce reliance on imported oil, decrease greenhouse gas
emissions, lessen pollutant emissions and help realize EPACT's 10
percent and 30 percent petroleum replacement fuels goals in the years
2000 and 2010, respectively.
Title III of EPACT requires Federal fleet acquisitions of
alternative fueled vehicles. Title IV includes specific authority for a
financial incentive program for States, a public information program,
and a program for certifying alternative fuel technician training
programs. In addition to the mandates for the purchase of alternative
fueled vehicles that apply to certain alternative
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fuel providers and State government fleets, Title V provides for a
possible similar mandate for certain private and municipal fleets. DOE
issued an Advanced Notice of Proposed Rulemaking in the Federal
Register on April 17, 1998, to solicit comments on whether alternative
fueled vehicle acquisition requirements for certain private and local
government fleets should be promulgated under the terms of section
507(g) of EPACT (63 FR 19732). Title VI provides for a program to
promote electric motor vehicles.
The types of vehicles that satisfy the alternative fuel provider
and State government fleet mandates in Title V are determined in part
by the definition of ``alternative fuel'' in Title III, section 301(2).
That definition provides: `` `Alternative fuel' means methanol,
denatured ethanol, and other alcohols; mixtures containing 85 percent
or more (or such other percentage, but not less than 70 percent, as
determined by the Secretary, by rule, to provide for requirements
relating to cold start, safety, or vehicle functions) by volume of
methanol, denatured ethanol, and other alcohols with gasoline or other
fuels; natural gas; fuels (other than alcohol) derived from biological
materials; electricity (including electricity from solar energy); and
any other fuel the Secretary determines, by rule, is substantially not
petroleum, and would yield substantial energy security benefits and
substantial environmental benefits.'' 42 U.S.C. 13211(2).
EPACT also defines the term ``replacement fuel.'' Section 301(14)
provides: ``the term `replacement fuel' means the portion of any motor
fuel that is methanol, ethanol, or other alcohols, natural gas,
liquefied petroleum gas, hydrogen, coal derived liquid fuels, fuels
(other than alcohol) derived from biological materials, electricity
(including electricity from solar energy), ethers, or any other fuel
the Secretary determines, by rule, is substantially not petroleum and
would yield substantial energy security benefits and substantial
environmental benefits.'' 42 U.S.C. 13211(14).
B. Prior Administrative Action on Biodiesel
DOE considered the allocation of credits for use of biodiesel fuel
in the rulemaking that implemented the alternative fuel provider and
State government fleet mandates. After considering public comments on
the issue of whether biodiesel was an alternative fuel, DOE concluded
that neat biodiesel (B-100), a fuel that is 100 percent biodiesel by
volume, is included in the definition of ``alternative fuel.'' Section
301(2) of EPACT expressly refers to fuels derived from biological
materials. With respect to the credit program under section 508 of
EPACT (Subpart F of 10 CFR part 490), DOE concluded that credits could
be given in certain circumstances for the purchase of medium- and
heavy-duty alternative fueled vehicles, as provided in Subpart F, but
multiple credits based on the amount of fuel consumed were not
allowable.
During the rulemaking to implement the alternative fuel provider
and State government fleet mandates, proponents of biodiesel fuel also
requested DOE to include B-20, a fuel that is 20 percent biodiesel and
80 percent petroleum diesel by volume, in the list of alternative
fuels. DOE declined on the grounds that the comments did not provide
sufficient supporting information to warrant including this issue
within the scope of the rulemaking. The final rule was published on
March 14, 1996 (61 FR 10653).
On September 10, 1996, the National Biodiesel Board (NBB) and a
number of co-petitioners submitted to DOE a petition requesting DOE to
initiate a rulemaking to amend the definition of ``alternative fuel''
in the regulations by adding, without limitation, B-20. In response to
the NBB petition, DOE, on July 15, 1997, issued a notice in the Federal
Register (62 FR 37897) inviting interested members of the public to
comment on the petition and to attend a public workshop on July 31 and
August 1, 1997 at which the petition and related policy issues were
discussed. On November 16, 1999, NBB and the co-petitioners withdrew
their petition.
II. Section-by-Section Discussion of Interim Final Rule
This section of the Supplementary Information contains explanatory
material for some of the ECRA and interim final rule provisions, in
order to provide interpretive guidance to States and persons that must
comply with this part.
The biodiesel fuel use credit is also available to Federal fleets
that are required under Title III, Section 303 of the Energy Policy Act
of 1992, to purchase certain percentages of alternative fueled
vehicles. Federal fleet purchase requirements are also stipulated in
Executive Order 13031 (61 FR 66529). Under Executive Order 13031,
Federal agencies, as part of their annual budget submission to the
Office of Management and Budget, are required to submit a report on
their compliance with section 303 of EPACT. A copy of the report is
also submitted to DOE and the General Services Administration (GSA).
DOE and GSA cooperatively analyze the agency alternative fueled vehicle
reports and acquisition plans, and jointly submit a summary report to
the OMB. Section 8 of ECRA also amended section 310 of EPACT to require
each Federal agency to report annually to the Congress on compliance
with the alternative fuel purchasing requirements for Federal fleets,
including a plan with specific dates for achieving compliance. Federal
agencies will also be required to publicly disseminate such reports in
the Federal Register and on the Internet.
Federal agency alternative fueled vehicle acquisition compliance
data are currently submitted to DOE under the Federal Energy Management
Program (FEMP). DOE plans on amending the FEMP reporting form to allow
for the allocation of biodiesel fuel use credits for Federal fleets.
Like State and alternative fuel provider fleets, Federal fleets will be
required to report the quantity of biodiesel purchased for use in
vehicles weighing in excess of 8,500 lbs. gross vehicle weight. Federal
fleets seeking to utilize the biodiesel fuel use credit should follow
the requirements laid out below in 10 CFR Part 490 Subpart H, as well
as any other guidance issued by DOE. The only difference for the
Federal fleets will be that their reporting year is for the fiscal
year, October 1 through September 30, as opposed to a model year,
September 1 through August 31, which applies to State and alternative
fuel provider fleets, as well as private and municipal government
fleets if DOE determines that such fleets should be covered under the
Alternative Fuel Transportation Program.
Section 490.702 Definitions. This section contains definitions of
biodiesel and qualifying volume that are in section 312(f) of ECRA. The
term `biodiesel' is defined as a diesel fuel substitute produced from
nonpetroleum renewable resources that meets the registration
requirements for fuels and fuel additives established by the
Environmental Protection Agency under section 211 of the Clean Air Act.
The term ``qualifying volume'' is set equal to 450 gallons. If DOE
determines, after the rulemaking, that the average annual alternative
fuel use in light duty vehicles by fleets and covered persons exceeds
450 gallons or gallon equivalents, DOE may set a qualifying volume that
is equal to the average annual alternative fuel use determined by its
collection of data under section 490.703.
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Section 490.703 Biodiesel Fuel Use Credit Allocation. This section
prescribes the conditions and exceptions under which DOE may allocate
an alternative fueled vehicle acquisition credit to a fleet or covered
person for each ``qualifying volume'' of the biodiesel component of a
fuel containing at least 20 percent biodiesel by volume. The allocation
of such a credit is restricted to vehicles owned or operated by the
fleet or covered person that have a gross vehicle weight rating of more
than 8,500 lbs.
Paragraph (b) of this section states the statutory exceptions to
allocation of biodiesel fuel credits. No credits may be allocated when
the biodiesel purchased is for use in an alternative fueled vehicle, as
defined in Section 490.2. This exception is designed to prevent fleets
and covered persons from utilizing the biodiesel fuel use credit to
claim an additional alternative fueled vehicle acquisition credit on an
alternative fueled vehicle which has already received credit by virtue
of its acquisition for use in a covered fleet. Additionally, no
alternative fueled vehicle acquisition credit shall be awarded if the
biodiesel purchased is required by Federal or State law.
Section 490.704 Procedures and Documentation. Paragraph (a) of this
section specifies the office within DOE that will receive requests for
biodiesel fuel credits, and paragraph (b) covers the documentation that
must accompany a request. To ensure proper credit allocation, a fleet
or covered person under this section must provide written documentation
to DOE supporting the allocation of a biodiesel fuel use credit. The
written documentation must be submitted by the December 31 after the
applicable model year. The initial model year for use of the biodiesel
fuel use credit began on November 14, 1998, the enactment of ECRA, and
will close on August 31, 1999 for State and alternative fuel provider
fleets and September 30, 1999 for Federal fleets. Future model years,
beginning with the 2000 model year, for use of the biodiesel fuel use
credit, however, will be complete 12-month years.
Such documentation must include meeting the annual reporting
requirements of section 490.704, as well as section 490.205 for State
fleets and section 490.309 for alternative fuel provider fleets. The
form referenced in paragraph (a) is the annual reporting form DOE/OTT/
101, Annual Alternative Fueled Vehicle Acquisition Report for State
Government and Alternative Fuel Provider Fleets. It will be amended to
include the documentation requirements of section 490.704.
Documentation requirements include listing the quantity of biodiesel
purchased for use in vehicles weighing in excess of 8,500 lbs. gross
vehicle weight for the model year covered in the report.
Section 490.705 Use of Credits. Section 490.705 delineates the use
and limits of the biodiesel fuel use credit. At the request of a fleet
or covered person, DOE shall, for the model year in which the purchase
of a qualifying volume is made, treat that purchase as the acquisition
of one alternative fueled vehicle the fleet or covered person is
required to acquire under Subpart C (State fleets), Subpart D
(alternative fuel provider fleets), and Title III of EPACT (Federal
fleets). The use of the biodiesel fuel use credit to serve as the
acquisition of one alternative fueled vehicle is restricted to the
model year, or the fiscal year in the case of Federal fleets, in which
the biodiesel is purchased and cannot be carried forward like
alternative fueled vehicle acquisition credits generated under Subpart
F. The House of Representatives Commerce Committee Report addressed
these restrictions, stating that biodiesel fuel use credits ``may only
be used by the fleet or covered person that earned the credits and only
in the year the credit is issued, so they cannot be traded or banked.''
1
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\1\ H.R. Rep. No. 105-727, Pt. 3, at 33 (1998).
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Credits allocated under subsection 490.703 may not be used to
satisfy more than 50 percent of the alternative fueled vehicle
requirements of a fleet or covered person under Subpart C (State
fleets), Subpart D (alternative fuel provider fleets), and Title III of
EPACT (Federal fleets). This limitation would also apply to private and
municipal government fleets if DOE determines that such fleets should
be included in the Alternative Fuel Transportation Program. The 50
percent limitation in section 490.705 does not apply to a fleet or
covered person that is a biodiesel alternative fuel provider described
in sections 490.301 and 490.303. Biodiesel alternative fuel providers
may satisfy up to 100 percent of their alternative fueled vehicle
acquisition requirements through the use of biodiesel fuel use credits.
Section 490.706 Procedure for Modifying the Biodiesel Component
Percentage. This section includes a cross-reference to the procedures a
person may use to request DOE to exercise the authority provided in
section 312(a)(3) of ECRA to lower the minimum 20 percent biodiesel
volume requirement for reasons related to cold start, safety, or
vehicle function considerations. DOE expects petitions to change the
percentage requirement to be supported by data demonstrating the need
for lowering the percentage.
Section 490.707 Increasing the Qualifying Volume of the Biodiesel
Component. This section allows DOE to collect the data required to make
a determination that the average annual alternative fuel use in light
duty vehicles by fleets and covered persons exceeds 450 gallons or
gallon equivalents. Such a data collection effort would be used by DOE
to propose an increase in the 450 gallon qualifying volume necessary to
generate credits under the Section 490.701 biodiesel fuel use credit. A
DOE proposal to increase the qualifying volume would have to be done
through a rulemaking that provides public notice and opportunity for
comment. DOE does not, at this time, plan on proposing an increase in
the qualifying volume. If the data that become available on alternative
fuel use by EPACT alternative fueled vehicles indicate that average
alternative fuel use is higher than 450 gallons, DOE will consider
proposing an increase in the qualifying volume level.
III. Public Comment
This rule prescribes procedures and contains interpretive guidance
for implementing the biodiesel fuel use credit provisions of ECRA,
section 7. An opportunity for prior public comment is not required by
the Administrative Procedure Act, 5 U.S.C. 553, or any other law for
this type of rule, nor does DOE see any need for prior public comment
as a matter of policy. The rule contains straightforward procedures for
requesting credits, necessary cross-references to other provisions in
the Part 490 Alternative Fuel Transportation Program, and implementing
provisions that closely track the statute.
Although DOE is making this rule effective 30 days after
publication, it is nevertheless interested in any written data, views,
or comments that interested persons may have with respect to the rule.
DOE will take appropriate action after considering the comments. DOE
invites public comments by the deadline in the DATES section at the
beginning of this notice. Written comments (5 copies) should be
identified on the outside of the envelope, and on the comments
themselves, with the designation: ``Biodiesel Fuel Use Credit Interim
Final Rule, Docket Number EE-RM-99-BIOD''. In the event any person
wishing to submit a written comment cannot provide five copies,
alternative arrangements may be made in advance
[[Page 27173]]
by calling Ms. Andi Kasarsky at (202) 586-3012. All comments submitted
will be available for examination in the Rule Docket File (EE-RM-99-
BIOD) in DOE's Freedom of Information Reading Room at the address
indicated at the beginning of this notice.
Pursuant to the provisions of 10 CFR 1004.11, any person submitting
information or data that are believed to be confidential, and which may
be exempt by law from public disclosure, should submit one complete
copy, as well as two copies from which the information claimed to be
confidential has been deleted. The DOE will make its own determination
of any such claim.
IV. Regulatory and Procedural Requirements
A. Review Under Executive Order 12866
Today's regulatory action has been determined not to be a
``significant regulatory action'' under Executive Order 12866,
``Regulatory Planning and Review,'' 58 FR 51735 (October 4, 1993).
Accordingly, this rulemaking has not been reviewed by the Office of
Information and Regulatory Affairs of the Office of Management and
Budget (OMB).
B. Review Under Executive Order 12612
Executive Order 12612, ``Federalism,'' 52 FR 41685 (October 30,
1987) requires that regulations, rules, legislation, and other policy
actions be reviewed for any substantial direct effect on States, on the
relationship between the National Government and the States, or in the
distribution of power and responsibilities among various levels of
government. If there are substantial effects, then the Executive Order
requires the preparation of a federalism assessment to be used in all
decisions involved in promulgating and implementing policy action. The
Department has analyzed this rulemaking in accordance with the
principles and criteria contained in Executive Order 12612, and has
determined there are no federalism implications that would warrant the
preparation of a federalism assessment. The interim final rule will not
have a substantial direct effect on States, the relationship between
the States and Federal Government, or the distribution of power and
responsibilities among various levels of government.
C. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires
preparation of an initial regulatory flexibility analysis for every
rule for which the law requires publication of a general notice of
proposed rulemaking unless the agency certifies that the rule, if
promulgated, will not have a significant economic impact on a
substantial number of small entities. Today's interim final rule is not
subject to a legal requirement for a general notice of proposed
rulemaking. Accordingly, DOE did not prepare a regulatory flexibility
analysis for this rule.
D. Review Under the National Environmental Policy Act
The Department has determined that this rule is covered by
Categorical Exclusion in paragraph A5 to Subpart D, 10 CFR part 1021.
Accordingly, neither an environmental assessment nor an environmental
impact statement is required.
E. Review Under the Paperwork Reduction Act
This interim final rule contains a collection of information that
is subject to review by the Office of Management and Budget (OMB) under
the Paperwork Reduction Act of 1995. More specifically, DOE plans to
obtain documentation to support allocation of credits by use of the
annual reporting form DOE/OTT/101, Annual Alternative Fueled Vehicle
Acquisition Report for State Government and Alternative Fuel Provider
Fleets. DOE proposes to amend that form to include the documentation
requirements of Sec. 490.704. Fleets claiming credits must, for the
model year in which the biodiesel fuel is purchased, report the
quantity of biodiesel purchased for use in vehicles weighing in excess
of 8,500 lbs. gross vehicle weight.
The title, description, and respondent description of the
collection of information for the existing Alternative Fuel
Transportation Program are shown as follows with an estimate of the
annual reporting and record keeping burden. Included in the estimate
are the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and providing the
information. DOE does not expect any change in the existing burden with
the addition of the availability of the biodiesel fuel use credit to
affected fleets. Should fleets utilize the biodiesel fuel use credit,
DOE believes that the increased burden of reporting biodiesel fuel use
credits would be counterbalanced by a reduced burden of reporting the
number of alternative fueled vehicles acquired.
Collection Title: Annual Alternative Fueled Vehicle Acquisition
Report for State Government and Alternative Fuel Provider Fleets.
Type of Review: Revised collection.
OMB Number: 1910-5101.
Type of Respondents: States and alternative fuel provider firms.
Estimated Number of Respondents: 1,000.
Estimated Total Burden Hours: 12,000.
Frequency of Responses: Annually.
DOE invites comments on: (1) The need for the proposed collection
of information; (2) the accuracy of DOE's burden estimates, including
the validity of the methodology and assumptions used; (3) ways to
enhance the quality, utility, and clarity of the information to be
collected; and (4) ways to minimize the burden of the collection of
information on respondents.
As provided in 5 CFR 1320.5(c)(1), collections of information
addressed in an interim final rule are subject to the procedures in 5
CFR 1320.10. Interested persons and organizations may submit comments
on the information collection in this rule by July 19, 1999 to Paul
McArdle, Office of Energy Efficiency and Renewable Energy, (EE-34), U.
S. Department of Energy, 1000 Independence Avenue, SW, Washington, DC
20585 and to the DOE Desk Officer, OMB, NRD, Room 10202, 725 17th
Street, NW, Washington, DC 20503.
At the close of the 60-day comment period, DOE will review the
comments received, revise the information collection as necessary, and
submit these provisions to OMB for review. DOE will publish a notice in
the Federal Register when the information collection provisions are
submitted to OMB, and an opportunity for public comment to OMB will be
provided at that time. DOE will publish a notice in the Federal
Register of OMB's decision to approve, modify, or disapprove the
collection of information. An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless it displays a current, valid OMB control number.
F. Review Under 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. Section 3(b) of
[[Page 27174]]
Executive Order 12988 specifically requires 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 interim final rule meets the relevant standards
of Executive Order 12988.
G. Review Under the Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written assessment of the
effects of any Federal mandate in a proposed or final agency rule that
may result in the expenditure by State, local, and tribal governments,
in the aggregate, or by the private sector, of $100 million in any one
year. The Act 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. The interim final rule published
today does not contain any Federal mandate, so these requirements do
not apply.
H. Congressional Notification
As required by 5 U.S.C. 801, DOE will report to Congress 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. 801(2).
List of Subjects in 10 CFR Part 490
Administrative practice and procedure, Energy conservation, Fuel,
Motor vehicles.
Issued in Washington, DC on April 28, 1999.
Dan W. Reicher,
Assistant Secretary, Energy Efficiency and Renewable Energy.
For the reasons set forth in the Preamble, Part 490 of Title 10,
Chapter II, Subchapter D of the Code of Federal Regulations, is amended
as follows:
PART 490--ALTERNATIVE FUEL TRANSPORTATION PROGRAM
1. The authority citation is revised to read as follows:
Authority: 42 U.S.C. 7191, 13211-13212, 13235, 13251, 13257,
12260-12263.
2. Subpart H--Biodiesel Fuel Use Credit is added to read as
follows:
Subpart H--Biodiesel Fuel Use Credit
Sec.
490.701 Purpose and scope.
490.702 Definitions.
490.703 Biodiesel fuel use credit allocation.
490.704 Procedures and documentation.
490.705 Use of credits.
490.706 Procedure for modifying the biodiesel component percentage.
490.707 Increasing the qualifying volume of the biodiesel
component.
490.708 Violations.
Sec. 490.701 Purpose and scope.
(a) This subpart implements provisions of the Energy Conservation
Reauthorization Act of 1998 (Pub. L. 105-388) that require, subject to
some limitations, the allocation of credit to a fleet or covered person
under Titles III and V of the Energy Policy Act of 1992 for the
purchase of a qualifying volume of the biodiesel component of a fuel
containing at least 20 percent biodiesel by volume.
(b) Fleets and covered persons may use these credits to meet, in
part, their mandated alternative fueled vehicle acquisition
requirements.
Sec. 490.702 Definitions.
In addition to the definitions found in Sec. 490.2, the following
definitions apply to this subpart--
Biodiesel means a diesel fuel substitute produced from nonpetroleum
renewable resources that meets the registration requirements for fuels
and fuel additives established by the Environmental Protection Agency
under section 211 of the Clean Air Act; and
Qualifying volume means--
(1) 450 gallons; or
(2) If DOE determines by rule that the average annual alternative
fuel use in light duty vehicles by fleets and covered persons exceeds
450 gallons or gallon equivalents, the amount of such average annual
alternative fuel use.
Sec. 490.703 Biodiesel fuel use credit allocation.
(a) DOE shall allocate to a fleet or covered person one credit for
each qualifying volume of the biodiesel component of a fuel that
contains at least 20 percent biodiesel by volume if:
(1) Each qualifying volume of the biodiesel component of a fuel was
purchased after November 13, 1998;
(2) The biodiesel component of fuel is used in vehicles owned or
operated by the fleet or covered person; and
(3) The biodiesel component of the fuel is used in vehicles
weighing more than 8,500 pounds gross vehicle weight rating.
(b) No credit shall be allocated under this subpart for a purchase
of the biodiesel component of a fuel if the fuel is:
(1) For use in alternative fueled vehicles; or
(2) Required by Federal or State law.
Sec. 490.704 Procedures and documentation.
(a) To receive a credit under this subpart, the fleet or covered
person shall submit its request, on a form obtained from DOE, to the
Office of Energy Efficiency and Renewable Energy, U. S. Department of
Energy, EE-34, 1000 Independence Ave. SW., Washington, DC 20585, or
such other address as DOE may publish in the Federal Register, along
with the documentation required by paragraph (b) of this section.
(b) Each request for a credit under this subpart must be submitted
on or before the December 31 after the close of the applicable model
year and must include written documentation stating the quantity of
biodiesel purchased, for the given model year, for use in vehicles
weighing in excess of 8,500 lbs. gross vehicle weight;
(c) A fleet or covered person submitting a request for a credit
under this subpart must maintain and retain purchase records verifying
information in the request for a period of three years from December 31
immediately after the close of the model year for which the request is
submitted.
Sec. 490.705 Use of credits.
(a) At the request of a fleet or covered person allocated a credit
under this subpart, DOE shall, for the model year in which the purchase
of a qualifying volume is made, treat that purchase as the acquisition
of one alternative fueled vehicle the fleet or covered person is
required to acquire under sections 490.201, 490.302 and 490.307, and
Title III of the Energy Policy Act of 1992.
(b) Except as provided in paragraph (c) of this section, credits
allocated
[[Page 27175]]
under this subpart may not be used to satisfy more than 50 percent of
the alternative fueled vehicle requirements of a fleet or covered
person under sections 490.201, 490.302 and 490.307, and Title III of
the Energy Policy Act of 1992.
(c) A fleet or covered person that is a biodiesel alternative fuel
provider described in section 490.303 of this part may use its credits
allocated under this subpart to satisfy all of its alternative fueled
vehicle requirements under section 490.302.
Sec. 490.706 Procedure for modifying the biodiesel component
percentage.
(a) DOE may, by rule, lower the 20 percent biodiesel volume
requirement of this subpart for reasons related to cold start, safety,
or vehicle function considerations.
(b) Any person may use the procedures in section 490.6 of this part
to petition DOE for a rulemaking to lower the biodiesel volume
percentage. A petitioner should include any data or information that it
wants DOE to consider in deciding whether or not to begin a rulemaking.
Sec. 490.707 Increasing the qualifying volume of the biodiesel
component.
DOE may increase the qualifying volume of the biodiesel component
of fuel for purposes of allocation of credits under this subpart only
after it:
(a) Collects data establishing that the average annual alternative
fuel use in light duty vehicles by fleets and covered persons exceeds
450 gallons or gallon equivalents; and
(b) Conducts a rulemaking to amend the provisions of this subpart
to change the qualifying volume to the average annual alternative fuel
use.
Sec. 490.708 Violations.
Violations of this subpart are subject to investigation and
enforcement under subpart G of this part.
[FR Doc. 99-12571 Filed 5-18-99; 8:45 am]
BILLING CODE 6560-50-P
