[Federal Register Volume 60, Number 54 (Tuesday, March 21, 1995)]
[Proposed Rules]
[Pages 15020-15026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6792]
[[Page 15019]]
_______________________________________________________________________
Part III
Department of Energy
_______________________________________________________________________
Office of Energy Efficiency and Renewable Energy
_______________________________________________________________________
10 CFR Part 490
Alternative Fuel Transportation Program; Proposed Rule
Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 /
Proposed Rules
[[Page 15020]]
DEPARTMENT OF ENERGY
Office of Energy Efficiency and Renewable Energy
10 CFR Part 490
[Docket No. EE-RM-95-110]
Alternative Fuel Transportation Program
AGENCY: Department of Energy (DOE).
ACTION: Notice of proposed rulemaking and public hearings.
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SUMMARY: The Department of Energy (DOE), Office of Energy Efficiency
and Renewable Energy is proposing rules for implementation of the State
and Local Incentives Program. Under this Program DOE may grant
financial assistance to States for projects in DOE approved State plans
to promote use of alternative fuels and alternative fueled vehicles.
DATES: Written comments (six copies and, if possible, a computer disk)
on the proposed rule must be received by DOE on or before May 22, 1995.
Oral views, data, and arguments may be presented at a public hearing
which is scheduled as follows:
1. May 1, 1995, 9 a.m., U.S. Department of Energy, Forrestal
Building, Room 1E-245, 1000 Independence Avenue, SW, Washington, D.C.
Requests to speak at the hearing should be received by DOE no later
than 4 p.m. on April 27, 1995. The length of each oral presentation is
limited to 10 minutes.
ADDRESSES: All written comments (six copies), and requests to speak at
a public hearing, are to be submitted to: U.S. Department of Energy,
Office of Energy Efficiency and Renewable Energy, EE-33, Docket Number
EE-RM-95-110, 1000 Independence Ave., SW, Washington, DC 20585,
telephone number (202) 586-3012.
Copies of the hearing transcript and written comments may be
inspected and photocopied in the DOE Freedom of Information Reading
Room, Room 1E-190, (202) 586-6020, between the hours of 9:00 a.m. and
4:00 p.m. Monday through Friday, except Federal holidays. For more
information concerning public comment on this proposed rulemaking, see
section III of this Notice.
FOR FURTHER INFORMATION CONTACT:
Frank Mallgrave, Office of Alternative Fuels, Office of Transportation
Technologies, Energy Efficiency and Renewable Energy, Department of
Energy, Mail Stop EE-33, 5G-086, Forrestal Building, 1000 Independence
Avenue, SW, Washington, DC 20585, (202) 586-8077.
Vivian Lewis, Office of General Counsel, Energy Efficiency (GC-72),
Department of Energy, Room 6B-256, Forrestal Building, 1000
Independence Avenue, SW., Washington, DC 20585 (202) 586-9507.
For information concerning the public hearings and procedures
concerning written comments: Ms. Andi Kasarsky, (202) 586-3012.
SUPPLEMENTARY INFORMATION:
I. Introduction
II. Section-By-Section Analysis
III. Opportunity for Public Comment
IV. Review Under Executive Order 12612
V. Review under Executive Order 12778
VI. Review under Executive Order 12866
VII. Review Under the Regulatory Flexibility Act
VIII. Review Under the Paperwork Reduction Act
IX. Review Under the National Environmental Policy Act
X. Review By Other Federal Agencies
XI. List of Subjects
XII. The Catalog of Federal Domestic Assistance
I. Introduction
Pursuant to Title IV, section 409 of the Energy Policy Act of 1992
(the Act) (Pub. L. 102-486), 42 U.S.C. 13235, this proposed rule will
establish the State and Local Incentives Program, a financial
assistance program, under which DOE will consider applications to
support projects included in State plans. The proposed rule sets forth
guidelines for participating States to follow in developing State
plans. These plans will show how States intend to meet the Program's
primary goals of accelerating the introduction and use of alternative
fuels and substantial numbers of alternative fueled vehicles (AFV) by
the year 2000. The proposed rule establishes grant application
procedures and evaluation criteria. Participating States may also
subaward to local government entities or the private sector to assist
in the implementation of projects within an approved plan.
At the beginning of each fiscal year, DOE will publish a notice in
the Federal Register and send a letter and a copy of the notice to the
Governor of each State announcing the availability of funds. These
notices will invite each Governor to submit to DOE a State plan, or an
amendment to a previously approved plan, and apply for financial
assistance to carry out the plan.
Pursuant to the Act, participating States must provide at least 20
percent of the estimated cost of the activities under their program,
although the selection criteria will reward proposals with higher
levels of cost sharing. This minimum cost sharing requirement may be
met with in-kind services and cost contributions by other public and
private entities that commit to a State plan. Upon review and approval
of the plan by DOE, Federal assistance may be provided to the State.
This assistance may be in the form of grants of up to 80% of the costs
of implementing a plan's project(s), information, and technical
assistance.
DOE will competitively evaluate proposed projects included in
approved State plans against criteria described in this notice,
including projected energy-related benefits, as measured by the amount
of conventional motor fuel that may be displaced by the use of
alternative fuels, and the projected number of registered alternative
fueled vehicles as a percentage of all registered vehicles as of
December 31, 2000. No State will receive more than one grant per year.
A grant may, however, cover more than one project. No award shall
exceed 10 percent of the total fiscal year funding for this program.
All project periods must be consistent with the goals stated in a State
plan and may not extend beyond the end of the year 2000.
The Department has, in another notice of proposed rulemaking,
published on February 28, 1995 (60 FR 10970), proposed to establish
rules concerning alternative fueled vehicles in part 490 of title 10 of
the Code of Federal Regulations. This proposed rule would add subpart B
to the proposed part 490.
II. Section-By-Section Analysis
This part of the Supplementary Information discusses those
provisions of the proposed regulations that are not self-explanatory.
Proposed Section 490.101 Definitions
Some of the terms used in this proposed rule will be defined in a
general definition section for part 490 to be codified in 10 CFR 490.2.
Those definitions are proposed in a Federal Register notice dated
February 28, 1995.
The proposed definition for ``life cycle'' is based on DOE's
interpretation of the statutory provision which contains this phrase.
Section 409(b)(2)(A) of the Act provides that in approving a State plan
and determining the amount of financial assistance, if any, to be
awarded, DOE must take into account, among other factors, an estimate
of energy-related and environment-related impacts, on a life cycle
basis, of the introduction and use of alternative fueled vehicles
included in the State plan, compared to conventional motor vehicles.
DOE is [[Page 15021]] proposing to define the ``life cycle'' of an
alternative fueled vehicle as the time from the date the vehicle is
registered by the State's motor vehicle agency as an alternative fueled
vehicle, and ending when the vehicle is no longer registered as an
alternative fueled vehicle. Because of the critical nature of a ``life
cycle basis'' and how it will impact on the evaluation of State plans
and the projects within the State plans, DOE invites comments on this
definition.
Proposed Section 490.102 Who May Apply
The proposed rule would require any application for financial
assistance and State plan submission to be submitted by the chief
executive of a State. Such submissions are optional to the States, but
any submission must comply with the requirements of this subpart.
Proposed Section 490.103 When and Where To Apply
The deadline date for submission of State plans to DOE may vary
from year to year, depending upon the availability of funding. Normally
funding is made available at the beginning of a fiscal year which
commences October 1 of each year. Each year, after funding has been
appropriated by Congress, DOE is proposing to announce the submission
deadline in a Federal Register notice, and a letter to the Governor of
each State, identifying the amount of funding available, as well as
providing the address to which submissions may be sent.
Proposed Section 490.104 Content of State Plans
In paragraph (a) of this section, DOE is proposing to require that
the State plan include the name and description of the lead
organization designated to be responsible for implementing the plan and
administering any grant awarded. DOE needs this information to ensure
that it will be dealing with the proper State authority.
Paragraph (c) sets forth the primary goals of the Program which are
to substantially increase, by the year 2000, the number of alternative
fueled vehicles registered in the State and the number of alternative
fuel refueling facilities licensed for operation. Each State plan must
provide detailed descriptions as to how these goals are to be achieved.
With the exception of proposed paragraph (d)(11), all of the
mandatory analyses set forth in paragraph (d) are statutorily required.
Paragraph (d)(5), which corresponds to section 409(a)(3)(E) of the
Act, requires a State plan to describe how the State treats the sales
of alternative fuels for use in alternative fueled vehicles. This
information will be helpful to DOE in determining whether the State's
methods of treating the sales of alternative fuels will actually
increase the use of alternative fuels. If these methods are effective,
DOE will share this information with all the States in an annual report
which will be sent both to Congress and the Governor of each State.
Proposed paragraph (d)(8) requires, consistent with section
409(a)(3)(I) of the Act, that the plan identify any existing State laws
or regulations, including traffic safety prohibitions, that would,
unless amended, impede the implementation of the goals of this Program.
The plan must describe how the State intends to resolve such
impediments.
Paragraph (d)(9), which corresponds to section 409(a)(3)(J) of the
Act, asks States to describe the services provided by municipal,
county, and regional transit authorities. This requirement is important
because DOE is interested in knowing how States will coordinate with
other governmental entities in carrying out a State plan. To accelerate
the use of alternative fueled vehicles, there must be adequate
refueling facilities. Coordination and cooperation among the various
governmental entities within the States will be of great importance in
facilitating the availability of alternative fuels in areas where
alternative fueled vehicles operate.
Proposed paragraph (d)(11) also provides that each State plan shall
consider participation in DOE's Clean Cities Program. The Clean Cities
Program provides an opportunity for States to get more involved in
coordinating with other States as well as with alternative fuel
providers, local governments, vehicle manufacturers, and others. The
Clean Cities' goals are to put into operation 250,000 new alternative
fueled vehicles and 500 to 1000 refueling stations in 50 cities by
1996. As of January, 1995, 34 cities in 21 States are participating in
the Clean Cities Program. For information on the Clean Cities Program,
please write to Department of Energy, Clean Cities Program, EE-33, 1000
Independence Avenue, SW., Washington, DC 20585, 202-586-1885.
Proposed Section 490.105 State Plan Amendments
Subsequent to an initial award under this subpart, a State may,
with DOE approval, amend a plan with updated information. A State must
submit an amendment to a proposed plan if any of the previously
submitted information corresponding to paragraphs (e), (f), and (g) of
proposed Sec. 490.104 has changed.
Proposed Section 490.106 Review of Assistance Applications
DOE is proposing in paragraph (e) of section 490.106 to
competitively evaluate proposed projects in approved plans against
specified criteria listed in descending order of importance. The most
important proposed criterion as set forth in paragraph (e)(1) is the
projected energy-related benefits, per dollar expended, that may be
achieved through the use of alternative fuels from the start of the
program through December 31, 2000. DOE is proposing that energy-related
benefits, be measured on a life cycle basis through the use of
alternative fueled vehicles, by the amount of conventional motor fuel
that is displaced by alternative fuels. The calculation of displacement
may be denominated in gallons, British thermal units (Btus) or any
other appropriate method. For DOE to evaluate the energy benefits of a
proposed project, it is important that the State indicate the degree to
which alternative fuels will actually be used by alternative fueled
vehicles. For projects that provide for dedicated alternative fueled
vehicles to be placed into use, alternative fuel use is assumed and no
further demonstration is needed. For projects that include vehicles
capable of operating on gasoline or diesel, as well as alternative
fuel, estimates of the actual alternative fuel use must be specified,
accompanied by information about measures to realize such levels of
use. The energy related benefits are proposed to be included in the
annual report that participating States must submit to DOE as provided
in proposed section 490.110.
The energy related benefit is the highest ranked criterion used to
evaluate proposed projects in State plans. DOE welcomes and encourages
comments on the proposed measure, or any others that are recommended.
The second most important criterion as proposed in paragraph (e)(2)
is the projected number of alternative fueled vehicles as a percentage
of vehicles registered in the State as of December 31, 2000.
Proposed Sec. 490.104(g) reflects the statutory requirement that
DOE shall not approve a State plan unless the State agrees to
contribute at least 20 percent of the cost of plan projects. In
addition, DOE is proposing in paragraph (e)(3) that the third most
important criterion in evaluating proposed projects is the extent of
cost sharing in excess of the minimum 20 percent cost share and the
[[Page 15022]] level of actual non-Federal outlays rather than in-kind
contributions. Cost sharing may come from any non-Federal source,
private or public. The additional cost sharing will enable DOE to
stretch scarce appropriations to cover more projects.
The fourth most important criterion, as proposed in paragraph
(e)(4), would be the projected environmental benefits derived as of
December 31, 2000 through the use of alternative fueled vehicles.
Environmental benefits in this context are most appropriately based on
reductions of exhaust, evaporative and greenhouse gas emissions. DOE
believes that this criterion is important because use of alternative
fueled vehicles has the significant potential for reducing vehicle
emissions such as hydrocarbons from combustion and fuel evaporation,
and carbon monoxide, nitrogen oxides, and other pollutants from
combustion. In addition, there is the potential of reducing vehicle
emissions of greenhouse gases.
State plans which request consideration under the environmental
benefit criterion must provide an estimate of how many alternative
fueled vehicles under the plan will be certified to each of the
Environmental Protection Agency (EPA) clean fuel vehicle emission
standards pursuant to 40 CFR part 88. Benefits claimed will be
evaluated by the number of alternative fueled vehicles certified to the
various tiers of EPA clean vehicle standards, such as low emission,
inherently low emission, ultra-low emission and zero emission vehicles.
In calculating environmental benefits to be derived from alternative
fueled vehicles, States may want to refer to EPA's Technical Report
entitled Lifetime Emissions for Clean Fuel Fleet Vehicles, dated
October 1993.
DOE is proposing that a report, entitled Emissions of Greenhouse
Gases from the Use of Transportation Fuels and Electricity by M. A.
DeLuchi, dated November 1991 and amended by letter April 22, 1992,
serve as the basis for the calculation of greenhouse gas emissions.
This report was prepared for the Center for Transportation Research,
Energy Systems Division, Argonne National Laboratory. It is available
to the public from the National Technical Information Service, U.S.
Department of Commerce, 5825 Port Royal Road, Springfield, Virginia
22161. This report sets forth the total carbon dioxide equivalent grams
per mile emissions, by fuel and vehicle type. The method of calculation
is simply a matter of applying the estimated number of miles traveled
per year, by vehicle and fuel type, against the carbon dioxide
equivalent grams per mile. During the hearings and sixty day comment
period DOE urges suggestions as to the appropriateness of this method
and recommendations for alternative methods.
DOE is proposing in paragraph (e)(5) that the fifth most important
criterion be the number of alternative fuel refueling facilities
projected to be in operation by December 31, 2000.
Proposed paragraph (e)(6) addresses interstate coordination. DOE is
suggesting, as an option, that States consider coordinating the
development of alternative fuel refueling facilities along interstate
highways with adjacent States, where applicable. The benefit from such
coordination would be to increase the potential driving range of
alternative fueled vehicles and, thereby, make their use more widely
feasible and attractive.
Proposed paragraph (e)(7) provides the seventh criterion which is
participation in DOE's Clean Cities Program. Neither paragraph (e)(6)
nor (e)(7) of these criteria are set forth in the Act, but both are
considered very important for the long term effectiveness of the
program.
The eighth criterion, as proposed in paragraph (e)(8), deals with
how well a State has implemented its plan during the previous budget
period. If a State requests funding for new projects in a subsequent
budget period, but has failed to implement its previously approved
projects in a timely fashion, the new plan may not receive favorable
consideration.
The ninth and last criterion, as proposed in paragraph (e)(9),
relates to the innovation and creativity of the proposed projects. DOE
encourages States to be resourceful in reaching the goals and
objectives of this proposed regulation beyond the minimum requirements.
For example, the number of alternative fueled vehicles that are
registered in a State is a key element within the State and Local
Incentives Program. Based on information available to DOE, very few
States, if any, are able to distinguish the fuel system type of
vehicles registered in the State. As an additional project that may
receive favorable consideration, States may want to modify their
registration system so that alternative fueled vehicles can be
identified. This kind of information would assist DOE in gathering
information on the distribution of each type of alternative fueled
vehicle. Other innovative and creative projects might include far-
reaching public relations programs or information exchange activities
which encourage local governments and the private sector to acquire
alternative fueled vehicles.
Although Section 409 of the Act provides for the use of financial
assistance to acquire alternative fueled vehicles, and States are
required to acquire a certain percentage of alternative fueled vehicles
under Section 507(o) of the Act, States are encouraged to develop plans
that would use grants for broader purposes. State plans will receive
favorable consideration if they consider resourceful and innovative
methods of increasing alternative fuel, encouraging acquisition of
alternative fueled vehicles by local governments and private parties,
and expanding the alternative fuel infrastructure.
In paragraph (f), DOE is proposing to limit the amount of funding
that any State may receive. Based on prior experience, DOE does not
expect to be able to provide funding for each and every project within
an approved plan. DOE, however, wants to ensure that as many States as
possible participate in this Program. Therefore, it is proposed that,
regardless of the number of proposed projects in an approved plan, each
State may not receive more than one grant per calendar year. The grant
may, however, cover more than one project. Additionally, each award may
not exceed 10 percent of the total fiscal year funding for the State
and Local Incentives Program.
Proposed Section 490.107 Expenditure Limitations
DOE is proposing that overhead costs for State programs be limited
to 10 percent of a financial award. This would include costs related to
salaries, office equipment, and library materials. This provision is
directly related to achieving the overall goal of this Program--to
substantially increase the use of alternative fueled vehicles by the
year 2000. It will ensure that 90 percent of the funds are expended on
activities and project costs that produce goal-related results.
Proposed Section 490.108 De-Obligation of Funds
DOE is proposing to deobligate any funds that a State has failed to
obligate or expend within a budget period. A budget period is generally
12 months and may not exceed 24 months. If the funds are not obligated
or expended by the State within the budget period, DOE is proposing to
de-obligate the funds which shall become available for award, in the
same manner as newly appropriated funds, to another financial
assistance recipient. [[Page 15023]]
Proposed Section 490.109 Technical Assistance and Information
DOE is proposing, pursuant to section 409(b)(1)(A) of the Act, to
provide States with information and technical assistance if requested,
subject to the availability of resources. One form of such assistance
could be coordinating the acquisition of alternative fueled vehicles
with Federal procurement of these vehicles. Such coordinated
acquisition may decrease the costs of the alternative fueled vehicles
to the State.
Proposed Section 490.110 Reports
Each State awarded a grant under this proposed subpart must submit
an annual report to DOE for the period of time covered by the State
plan. This report must be submitted not later than 30 days after the
close of the calendar year. The information required in the State
report will be used to monitor the implementation of the State plan,
the projects within an approved plan, and the expenditure of funds.
Pursuant to section 409(c)(2) of the Act, DOE must report annually to
the President and Congress. Information in the State reports will also
be used to compile the DOE report to Congress and the President.
III. Opportunity for Public Comment
A. Written Comment Procedures
Interested persons are invited to participate in this rulemaking by
submitting data, views or comments with respect to the matters set
forth in this notice.
Written comments (6 copies) should be identified on the outside of
the envelope, and on the documents themselves, with the designation:
``State and Local Incentives Program, Notice of Proposed Rulemaking,
Docket Number EE-RM-95-110'', and must be received by the date
specified at the beginning of this notice. In the event any person
wishing to submit a written comment cannot provide six copies,
alternative arrangements can be made in advance by calling Ms. Andi
Kasarsky at (202) 586-3012. Additionally, DOE would appreciate an
electronic copy of the comments to the extent possible. The Department
is currently using Wordperfect 5.1 for DOS.
All comments received on or before the date specified at the
beginning of this notice and other relevant information will be
considered by DOE before final action is taken on the proposed rule.
All comments submitted will be available for examination in the Rule
Docket both before and after the closing date for comments. In
addition, a transcript of the proceedings of the public hearing will be
filed in the docket.
Pursuant to the provisions of 10 CFR 1004.11, any person submitting
information or data that is 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 Department of Energy shall make its
own determination of any such claim and treat it according to its
determination.
B. Public Hearing Procedures
The time and place of the public hearing is indicated at the
ADDRESSES section of this notice. Any person who has an interest in the
proposed regulation or who is a representative of a group or class of
persons which has an interest in it may make a request for an
opportunity to make an oral presentation at the hearing. A request to
speak at the hearing should be sent to the address or phone number
indicated in the ADDRESSES section of this notice and be received by
the time specified in the DATES section of this notice.
The person making the request should briefly describe his or her
interest in the proceedings and, if appropriate, state why that person
is a proper representative of a group. The person should also provide a
phone number where he/she may be reached during the day. Each person
selected to speak at the public hearing will be notified as to the
approximate time their presentation will be given. Six copies of the
speaker's statement should be brought to the hearing. In the event any
person wishing to testify cannot meet this requirement, alternative
arrangements can be made in advance by so indicating in a letter or
phone call to Ms. Andi Kasarsky ((202)-586-3012) requesting an
opportunity to make an oral presentation.
The Department of Energy reserves the right to select persons to be
heard at the hearing, to schedule their presentations, and to establish
procedures governing the conduct of the hearing. The length of each
presentation will be limited to ten minutes, or based on the number of
persons requesting to speak.
A Department of Energy official will preside at the hearing. This
will not be a judicial or evidentiary-type hearing, but will be
conducted in accordance with 5 U.S.C. 553. At the conclusion of all
initial oral statements, each person will be given the opportunity to
make a rebuttal statement. The rebuttal statements will be given in the
order in which the initial statements were made.
Any further procedural rules needed for the proper conduct of the
hearing will be announced by the Presiding Officer.
If DOE must cancel the hearing, DOE will make every effort to
publish an advance notice of such cancellation in the Federal Register.
Notice of cancellation will also be given to all persons scheduled to
speak at the hearing. Hearing dates may be canceled in the event no
public testimony has been scheduled in advance.
IV. Review Under Executive Order 12612
Executive Order 12612 requires that regulations, rules,
legislation, and any other policy actions 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
among various levels of government. If there are sufficient substantial
direct effects, the Executive Order requires preparation of a
federalism assessment to be used in all decisions involved in
promulgating and implementing policy action.
Although today's proposed rule is mandated by the Act, State
participation in the State and Local Incentives Program is voluntary.
This proposed rule simply establishes ground rules for implementation
of the Program. Many States are currently conducting alternative fueled
vehicle programs and are anticipating that the influx of Federal
funding through the State and Local Incentives Program will assist them
in achieving their goals of accelerating the use of alternative fueled
vehicles.
Today's proposed rule will have direct effects on those States that
choose to participate in the Program in that a State must share at
least 20 percent of the cost of implementing the State plan's projects,
and must comply with the other requirements of the Program. Most of the
proposed rule's provisions, including the cost sharing requirement,
correspond to provisions of the Act. Wherever possible, however, DOE
has attempted to simplify the implementation of this Program by
providing as much flexibility as possible to the States.
DOE has determined that this proposed rule will not have a
substantial direct effect on the institutional interests or traditional
functions of States in relationship to the Federal Government.
Therefore, preparation of a federalism assessment is
unnecessary. [[Page 15024]]
V. Review Under Executive Order 12778
Section 2 of Executive Order 12778 instructs each agency to adhere
to certain requirements in promulgating new regulations and reviewing
existing regulations. The requirements in section (2)(a) and (b)(2) of
this Executive Order include eliminating drafting errors and needless
ambiguity, drafting the regulations to minimize litigation by providing
clear and certain legal standards for affected legal conduct, and
promoting simplification and burden reduction. Agencies are also
instructed to make all reasonable efforts to ensure that regulations
specify clearly any preemptive effect on existing Federal law or
regulation and any retroactive effects. Rulemaking notices must
describe any administrative proceedings to be available prior to
judicial review and any provisions for the exhaustion of administrative
remedies. DOE certifies that the proposed rule meets the requirements
of section 2(a) and (b)(2) of Executive Order 12778.
VI. 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, October 4, 1993. Accordingly, this action was not
subject to review under the Executive Order by the Office of
Information and Regulatory Affairs (OIRA).
VII. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act, Public Law 96-354, 5 U.S.C. 601 et
seq., requires preparation of a regulatory flexibility analysis for any
regulation that will have a significant economic impact on a
substantial number of small entities. This proposed rule will impact
only those States that decide to initiate or in some instances,
continue an alternative fuel and alternative fueled vehicle program.
The Department of Energy, therefore, certifies that there will not be a
significant economic impact on a substantial number of small entities,
and that preparation of a regulatory flexibility analysis is not
warranted.
VIII. Review Under the Paperwork Reduction Act
New information collection or record keeping requirements are
subject to the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.
Accordingly, this notice has been submitted to the Office of Management
and Budget for review and approval of paperwork requirements. The
Energy Policy Act requires DOE to report annually to Congress and the
President and to furnish copies of the report to each State
participating in the Program. Most of the information required to be
included in the report can be collected only from the participating
States. This information is necessary to determine if the Program is
being implemented adequately and to determine the effectiveness of the
Program in accelerating the use of alternative fueled vehicles. DOE
cannot estimate how many States may participate in the Program.
The public reporting burden is estimated to average eight hours per
response, including time for reviewing instructions, gathering and
maintaining the data needed, and completing and retrieving the
collection of information. DOE has attempted to require States to
collect and maintain only those records that are essential in assisting
DOE to administer the Program in an effective manner and to comply with
a reporting requirement to the President and Congress.
Comments on the information collection requirements contained in
this rule should be submitted both to the U.S. Department of Energy,
Office of Energy Efficiency and Renewable Energy, Hearings and Dockets,
Docket Number EE-RM-95-110, at the address given earlier in this
notice, and to the Office of Information and Regulatory Affairs, Office
of Management and Budget, Washington, DC 20503.
IX. Review Under the National Environmental Policy Act
The Department of Energy has concluded that, before the final
promulgation of this rule and related rules implementing the
alternative fueled vehicle provisions of the Energy Policy Act of 1992,
an Environmental Assessment will be completed.
X. Review By Other Federal Agencies
The Department of Energy has provided a draft copy of this notice
to the staff of the Administrator of the Environmental Protection
Agency and the Secretary of the Department of Transportation pursuant
to Section 409(a)(2) of the Energy Policy Act of 1992. The
Administrator responded regarding emission criteria and certification
of vehicles. These responses were incorporated into the Notice of
Proposed Rule. The Secretary of Transportation had no comment. The
Department of Energy has also provided a draft copy of this notice to
the Automotive Commodity Center, Federal Supply Service, General
Services Administration, pursuant to Section 409(b)(3).
XI. List of Subjects in 10 CFR Part 490
Appeal procedures, Energy, Energy conservation, Fuel, Gasoline,
Motor vehicles, Oil imports, Petroleum, Recordkeeping and reporting
requirements and Utilities.
XII. The Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for the State
and Local Incentive Program is 81.111.
Issued in Washington, D.C., March 10, 1995.
Christine A. Ervin,
Assistant Secretary, Energy Efficiency and Renewable Energy.
For the reason set forth in the preamble, DOE proposes to amend
part 490 of title 10 of the Code of Federal Regulations as proposed on
February 28, 1995 and as set forth below:
PART 490--ALTERNATIVE FUEL TRANSPORTATION PROGRAM
1. The authority citation to part 490 is revised to read as
follows:
Authority: 42 U.S.C. 7191; 42 U.S.C. 13235; 42 U.S.C. 13251; 42
U.S.C. 13257; 42 U.S.C. 13258; 42 U.S.C. 13260-3.
2. A new subpart B is proposed to be added to part 490 as set forth
below:
Subpart B--State and Local Incentives Program
490.100 Purpose and scope.
490.101 Definitions.
490.102 Who may apply.
490.103 When and where to apply.
490.104 Content of State plans.
490.105 State plan amendments.
490.106 Review of assistance applications.
490.107 Expenditure limitations.
490.108 De-obligation of funds.
490.109 Technical assistance and information.
490.110 Reports.
Sec. 490.100 Purpose and scope.
(a) This subpart sets forth the guidelines for implementation of
the State and Local Incentives Program. Under this program, DOE may
grant financial assistance to States for projects in DOE-approved State
plans. This subpart provides guidelines for development of State plans
to accelerate the introduction and use of alternative fuels and
alternative fueled vehicles by the year 2000, and for applications for
financial assistance to carry out projects included in approved State
plans.
(b) Except as otherwise provided in this subpart, the provisions of
10 CFR part 600 apply to financial assistance awards under this part.
[[Page 15025]]
Sec. 490.101 Definitions.
In addition to the definitions found in Sec. 490.2, the following
definitions apply to this subpart--
Awardee means the State named in the notice of financial assistance
award.
British thermal unit (Btu) is defined as the amount of heat
required to raise the temperature of one pound of water one degree
Fahrenheit.
Clean Cities Program is a voluntary Federal program designed to
accelerate and expand the use of alternative fueled vehicles in
communities throughout the country and to provide refueling and
maintenance facilities for their operation.
Conventional motor fuel means gasoline or diesel fuel used in a
motor vehicle.
Evaporative Emissions are hydrocarbons released into the atmosphere
as a result of fuel evaporation from a vehicle's fuel system.
Exhaust Emissions are substances released into the atmosphere
through motor vehicle tailpipes resulting either from uncombusted fuel
or from chemical reactions during combustion. They can include carbon
monoxide, oxides of nitrogen, hydrocarbons, and particulate matter.
Governor means the chief executive of a State or a person
designated by the chief executive officer to act upon his or her
behalf.
Greenhouse Gas Emissions means emissions of carbon dioxide and
other gases such as chlorofluorocarbon, methane, ozone, and nitrous
oxide that contribute to global climate change.
Life cycle means the period of time beginning with the date on
which the vehicle is registered as an alternative fueled vehicle by the
motor vehicle agency of the State and ending on the date the vehicle is
no longer registered as an alternative fueled vehicle.
Project means any activity specified in a State plan which is
undertaken to achieve the goals set forth in the State plan.
State plan means a State and Local Incentives plan submitted to DOE
that contains proposed projects and provisions designed to introduce a
substantial number of alternative fueled vehicles and increase the use
of alternative fuels by the year 2000.
Sec. 490.102 Who may apply.
The Governor of any State may submit to DOE a State plan and apply
for Federal assistance to carry out that plan under this subpart.
Sec. 490.103 When and where to apply.
For each fiscal year, DOE will publish a notice in the Federal
Register announcing the availability of funds, specifying the deadline
for submissions, and providing the address to which a submission may be
sent. A copy of this notice will be sent to the Governor of each State.
In order to be eligible for Federal assistance, a State must submit an
application on standard forms, pursuant to 10 CFR Part 600, and either
a proposed State plan, or a proposed State plan amendment to a
previously approved plan. This submission must be made before the
specified deadline.
Sec. 490.104 Content of State plans.
(a) Organization. Each State plan must name and describe the
functions of the State organization designated by the Governor to carry
out the provisions of the plan.
(b) Intergovernmental coordination. Each State plan shall describe
the manner in which the State intends to coordinate with the Federal
Government, local governments, and the private sector in implementing
the plan.
(c) Goals. Each State plan must identify its goals for the number
of alternative fueled vehicles to be registered within the State, the
amount of alternative fuel to be used within the State, and the number
of alternative fuel refueling facilities to be licensed for operation.
The plan must also provide a detailed description as to how these goals
can be achieved by the year 2000.
(d) Mandatory analyses. Each State plan shall include an
examination of--
(1) Exemption from State sales tax or other State or local taxes or
surcharges (other than such taxes or surcharges which are dedicated for
transportation purposes) with respect to alternative fueled vehicles,
alternative fuels, or alternative fuel refueling facilities;
(2) The introduction of alternative fueled vehicles into State-
owned or operated motor vehicle fleets;
(3) Special parking for alternative fueled vehicles at public
buildings, as defined by Sec. 490.201 of subpart A, and airport and
transportation facilities;
(4) Programs of public education to promote the use of alternative
fueled vehicles;
(5) The treatment of sales of alternative fuels for use in
alternative fueled vehicles;
(6) Methods by which State and local governments might enhance--
(i) The availability of alternative fuels; and
(ii) The ability to recharge electric motor vehicles at public
locations.
(7) Allowing public utilities to include in rates the incremental
cost of--
(i) New alternative fueled vehicles;
(ii) Converting conventional vehicles to operate on alternative
fuels; and
(iii) Installing alternative fuel refueling facilities; but only to
the extent that the inclusion of such costs in rates would not create
competitive disadvantages for other market participants, and taking
into consideration the effect that inclusion of such costs would have
on rates, service, and reliability to other utility customers;
(8) Whether accomplishing any of the goals of the State plan would
require amendment to State law or regulations, including traffic safety
prohibitions;
(9) Services provided by municipal, county, and regional
transportation authorities;
(10) Effects of the State plan on programs authorized by the
Intermodal Surface Transportation Efficiency Act of 1991 and amendments
made by that Act;
(11) Participation in the DOE's Clean Cities Program; and
(12) Such other programs and incentives as a State may describe.
(e) Projects. Each State plan--
(1) Shall contain a detailed description of projects designed to
result in scheduled progress toward, and achievement of, the goals of
using alternative fuel and introducing substantial numbers of
alternative fueled vehicles in the State by the year 2000. For each
project, the plan must specify the project periods and milestones which
must be consistent with the State plan goals; and
(2) Shall include estimates of the volumes of alternative fuels to
be used within each calendar year as a result of each project.
(f) Requirements. Each State plan shall contain a detailed
description of the requirements for implementing the plan, including
the estimated cost and budget for implementation.
(g) Cost Share. Each State plan shall specify the non-federally
funded share of each project, which must be at least 20 percent of the
cost of the project. The plan must identify the amounts to be provided
in cash and in-kind.
Sec. 490.105 State plan amendments.
Subsequent to an initial State plan approval and any award under
this subpart, a State--
(a) May amend a State plan with the approval of DOE; and
(b) Must, in the event of any change to the provisions identified
in paragraphs (e), (f) and (g) of Sec. 490.104, submit a proposed State
plan amendment with updated information for the approval of DOE.
Sec. 490.106 Review of assistance applications.
(a) On or before 60 days from an applicable deadline for submission
of [[Page 15026]] applications for financial assistance, DOE shall
review State plans or State plan amendments to determine whether they
meet the requirements of this subpart and represent policies and
activities reasonably designed to achieve the goals of a substantial
number of alternative fueled vehicles in operation by the year 2000 and
increased use of alternative fuel.
(b) DOE may request further information from States prior to
completing its review under paragraph (a) of this section.
(c) DOE may allow a reasonable period of time to revise a proposed
State plan or State plan amendment, or may condition approval on
acceptance of revisions deemed necessary by DOE. A grant will not be
awarded until all conditions are satisfied.
(d) If DOE finally disapproves a State plan or State plan
amendment, DOE shall notify the Governor in writing with a statement of
reasons.
(e) On the basis of approved State plans or approved State plan
amendments, DOE shall evaluate proposed projects competitively against
the following criteria which are listed in descending order of
importance:
(1) Projected energy-related benefits, per dollar expended, on a
life-cycle basis, through the use of alternative fueled vehicles, as
measured by the amount of conventional motor fuel that is displaced by
alternative fuels from the start of the project through December 31,
2000. This displacement may be calculated on the basis of gallons,
British thermal units (Btus), or any other appropriate method.
(2) Projected number of alternative fueled vehicles introduced as
of December 31, 2000, as a result of the project;
(3) Extent of cost sharing in excess of the minimum required 20
percent cost share and extent of contribution made in cash rather than
in-kind;
(4) Projected environmental benefits, on a life-cycle basis,
measured in terms of the reduction of exhaust, evaporative, and
greenhouse gas emissions through December 31, 2000. Projections should
be based on the number of alternative fueled vehicles that will be
certified as meeting various EPA clean vehicle emission standards
pursuant to 40 CFR part 88;
(5) Projected number of alternative fuel refueling facilities as of
December 31, 2000;
(6) Extent of interstate collaboration on refueling infrastructure,
including collaboration on development of alternative fuel refueling
facilities along interstate highways with adjacent States;
(7) Extent of participation in DOE's Clean Cities Program;
(8) Effectiveness in carrying out State plan in previous budget
periods; and
(9) Inclusion of creative and innovative projects.
(f) A State may not receive more than one grant per calendar year.
This grant may cover multiple projects or projects expanding for more
than one year. No award is to exceed 10 percent of the total fiscal
year funding for the State and Local Incentives Program. In those
instances where projects in an approved plan are not funded, the State
may reapply for financial assistance for such projects in subsequent
years.
Sec. 490.107 Expenditure Limitations.
A State may not expend more than 10 percent of a financial award
for indirect costs including, but not limited to, salaries, equipment,
and library materials.
Sec. 490.108 De-obligation of funds.
A budget period should typically be 12 months, but may not exceed
24 months unless an extension is approved by DOE. Any funds, under a
notice of financial assistance award, which remain unexpended at the
end of the budget period shall be de-obligated. DOE shall make these
funds available for award, in the same manner as newly appropriated
funds.
Sec. 490.109 Technical assistance and information.
At the request of the Governor of any participating State and
subject to the availability of personnel and funds, DOE will provide
technical assistance and information to the State in connection with
effectuating the purposes of this subpart. Non-financial assistance,
including coordinating the acquisition of alternative fueled vehicles
with Federal procurement of alternative fueled vehicles, will be
provided.
Sec. 490.110 Reports.
(a) For the period of time covered by a State plan, an awardee
shall submit to DOE an annual report each calendar year and not later
than 30 days after the close of the calendar year, which shall include
at a minimum--
(1) The estimated number of alternative fueled vehicles in use in
the State;
(2) A description of Federal, State and local programs undertaken
within the State to provide incentives for the introduction of
alternative fueled vehicles, whether or not these programs are within
the State plan; and
(3) The estimated energy and environmental benefits of the State
plan.
(b) An awardee shall submit to DOE a financial status report (FSR)
(OMB No. 0348-0039) within 90 days after completion of each budget
period. For budget periods exceeding 12 months, an FSR is also required
within 90 days after the first 12 months, unless waived by the
contracting officer.
[FR Doc. 95-6792 Filed 3-20-95; 8:45 am]
BILLING CODE 6450-01-P
