96-7828. Manufacturing Incentives for Alternative Fuel Vehicles  

  • [Federal Register Volume 61, Number 64 (Tuesday, April 2, 1996)]
    [Rules and Regulations]
    [Pages 14507-14512]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-7828]
    
    
    
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    DEPARTMENT OF TRANSPORTATION
    
    National Highway Traffic Safety Administration
    
    49 CFR Part 538
    
    [Docket No. 94-96; Notice 2]
    RIN 2127-AF18
    
    
    Manufacturing Incentives for Alternative Fuel Vehicles
    
    AGENCY: National Highway Traffic Safety Administration (NHTSA), 
    Department of Transportation (DOT).
    
    ACTION: Final rule.
    
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    SUMMARY: This rule establishes minimum driving range standards for dual 
    energy and natural gas dual energy passenger automobiles on non-
    petroleum fuel and establishes gallons equivalent measurements for 
    certain gaseous fuels. Promulgation of minimum driving range standards 
    for these vehicles is required by the 1992 Energy Policy Act (P.L. 102-
    486).
    
    DATES: These requirements are effective June 3, 1996. Petitions for 
    reconsideration must be submitted within 45 days of publication.
    
    ADDRESSES: Petitions for reconsideration should be submitted to the 
    Administrator, National Highway Traffic Safety Administration, 400 
    Seventh Street, SW., Washington, DC 20590.
    
    FOR FURTHER INFORMATION CONTACT: Ms. Henrietta L. Spinner, Motor 
    Vehicle Requirements Division, Office of Market Incentives, National 
    Highway Traffic Safety Administration, 400 Seventh Street SW, 
    Washington, DC 20590, (202) 366-4802.
    
    SUPPLEMENTARY INFORMATION:
    
    1. Statutory Background
    
        Section 6 of the Alternative Motor Fuels Act of 1988 (AMFA) (P.L. 
    100-494) amended the fuel economy provisions of the Motor Vehicle 
    Information and Cost Savings Act (Cost Savings Act) by adding a new 
    section, ``Manufacturing Incentives for Automobiles,'' now codified as 
    49 U.S.C. Sec. 32901(c). The section provided incentives for the 
    manufacture of vehicles designed to operate on alcohol or natural gas, 
    including dual energy vehicles, i.e., vehicles capable of operating on 
    one of those alternative fuels and either gasoline or diesel fuel.
        Dual energy vehicles meeting specified criteria qualify for special 
    treatment in the calculation of their fuel economy for purposes of the 
    corporate average fuel economy (CAFE) standards issued by NHTSA under 
    49 U.S.C. Chapter 329. The fuel economy of a qualifying vehicle is 
    calculated in a manner that results in a relatively high fuel economy 
    value, thus encouraging its production as a way of facilitating a 
    manufacturer's compliance with the CAFE standards. One of the 
    qualifying criteria for passenger automobiles was to meet a minimum 
    driving range, which was to be established by NHTSA.
        NHTSA was required to establish two minimum driving ranges, one for 
    dual energy (alcohol/gasoline or diesel fuel) passenger automobiles 
    when operating on alcohol, and the other for natural gas dual energy 
    (natural gas/gasoline or diesel fuel) passenger automobiles when 
    operating on natural gas. In establishing the driving ranges, NHTSA was 
    required to consider consumer acceptability, economic practicability, 
    technology, environmental impact, safety, driveability, performance, 
    and any other factors deemed relevant.
        The Alternative Motor Fuels Act and its legislative history made 
    clear that the driving ranges were to be low enough to
    
    [[Page 14508]]
    encourage the production of dual energy passenger automobiles, yet not 
    so low that motorists would be discouraged by a low driving range from 
    actually fueling their vehicles with the alternative fuels. Section 
    513(h)(2)(C) of the Cost Savings Act, now codified as 49 U.S.C. 
    Sec. 32901(c)(2)(B), provided that the minimum driving range 
    established by the agency for dual energy passenger automobiles could 
    not be less than 200 miles. Section 513(h)(2)(B) of the Cost Savings 
    Act, now codified as 49 U.S.C. Sec. 32901(c)(2)(A), allowed passenger 
    automobile manufacturers to petition the agency to set a lower range 
    for a particular model or models than the range established by the 
    agency for all models. However, the minimum driving range could not be 
    reduced to less than 200 miles for any model of dual energy passenger 
    automobile.
        On April 26, 1990, NHTSA published in the Federal Register (55 FR 
    17611) a final rule establishing 49 CFR Part 538, Driving Ranges for 
    Dual Energy and Natural Gas Dual Energy Passenger Automobiles. The 
    agency established a minimum driving range of 200 miles for dual energy 
    passenger automobiles, and a minimum driving range of 100 miles for 
    natural gas dual energy passenger automobiles. NHTSA did not specify 
    higher ranges because it was concerned that such ranges could 
    discourage manufacturers from producing dual energy vehicles, since the 
    manufacturers would need to redesign their vehicles to accommodate 
    additional or larger fuel tanks in order to meet the higher ranges.
        In Part 538, NHTSA also established procedures by which 
    manufacturers may petition the agency to establish a lower driving 
    range for a specific model or models of ``natural gas dual energy'' 
    passenger automobiles and by which the agency may grant or deny such 
    petitions.
        The Energy Policy Act of 1992 (EPACT) (P.L. 102-486) amended 
    section 513 of the Cost Savings Act to expand the scope of the 
    alternative fuels it promoted. In addition to the incentives for 
    alcohol and natural gas, the amended section provided incentives for 
    the production of vehicles using liquefied petroleum gas (LPG), 
    hydrogen, coal derived liquid fuels, fuels (other than alcohol) derived 
    from biological materials, electricity (including electricity from 
    solar energy), and any fuel NHTSA determines, by rule, is substantially 
    not petroleum and would yield substantial energy security benefits and 
    substantial environmental benefits.
        As amended, section 513 continued to provide incentives for the 
    production of dual fuel vehicles, i.e., vehicles that operate on one of 
    a now expanded list of alternative fuels and on gasoline or diesel 
    fuel. NHTSA notes that some statutory terminology was changed by the 
    1992 amendments. Among other things, the terms ``dual energy'' and 
    ``natural gas dual energy'' were dropped, and the terms ``alternative 
    fueled automobile,'' ``dedicated automobile,'' and ``dual fueled 
    automobile'' were added.
        Section 513 continued to require dual fueled passenger automobiles 
    to meet specified criteria, including meeting a minimum driving range, 
    in order to qualify for special treatment in the calculation of their 
    fuel economy for purposes of the CAFE standards.
        One change made by the 1992 amendments concerning driving ranges 
    was that, under section 513(h)(2), the minimum driving range set by 
    NHTSA may not be less than 200 miles for dual fueled automobiles other 
    than electric vehicles. The amendments also provided that the agency 
    may not, in response to petitions from manufacturers, set an 
    alternative range for a particular model or models that is lower than 
    200 miles, except for electric vehicles.
        The 1992 amendments necessitate amending Part 538. First, the 
    existing 100 mile minimum driving range for vehicles previously 
    categorized as ``natural gas dual energy'' vehicles must be raised to 
    at least 200 miles. Also, NHTSA must establish a minimum driving range 
    for the expanded scope of dual fueled vehicles. Part 538's petition 
    procedures also need to be amended to conform to the new statutory 
    provisions.
        In addition to necessitating amendments to Part 538's driving range 
    provisions, the 1992 amendments require NHTSA to ``determine the 
    appropriate gallons equivalent measurement for gaseous fuels other than 
    natural gas * * * '' Such a measurement is needed to carry out the 
    special fuel economy calculations that apply to alternative fuel 
    vehicles.
        The Motor Vehicle and Cost Savings Act was rescinded in 1994 
    through legislation (P.L. 103-272) recodifying the Cost Savings Act in 
    Chapter 329 ``Automobile Fuel Economy'' of Title 49 of the United 
    States Code (49 U.S.C. Sec. 32901 et. seq.) This recodification adopted 
    the provisions of the Cost Savings Act without substantive change, 
    inluding those amendments contained in the 1992 Energy Policy Act.
    
    2. Regulatory Background
    
        NHTSA published a notice of proposed rulemaking (NPRM) on December 
    19, 1994 (59 FR 65295) which proposed setting the minimum driving range 
    for all dual fueled passenger automobiles other than electric vehicles 
    at 200 miles. In that notice, NHTSA also proposed removing the petition 
    procedures until it sets a minimum driving range for electric dual 
    fueled passenger automobiles.
        The NPRM stated that the complexity of the issues relating to 
    establishment of a minimum driving range for electric dual fueled 
    passenger automobiles, otherwise known as hybrid electric vehicles, 
    required NHTSA to address that issue in a separate rulemaking. On 
    September 22, 1994, NHTSA published in the Federal Register (59 FR 
    48589) a request for comments seeking information that would help it 
    develop a proposal in that area.
        The NPRM also proposed to amend Part 538's gallons equivalent 
    measurements for compressed natural gas, liquefied natural gas, 
    liquefied petroleum gas, hydrogen, and hythane.
        As part of determining appropriate gallons equivalent measurements 
    for gaseous fuels, NHTSA consulted with the Department of Energy (DOE) 
    Fuels Utilization Data and Analysis Division. NHTSA and DOE agreed that 
    the following gaseous fuels could be potential transportation fuels by 
    2008: liquefied natural gas, liquefied petroleum gas and hydrogen.
        Pursuant to a contract with DOE, Abacus Technology Corporation 
    prepared a report titled ``Energy Equivalent Values of Three 
    Alternative Fuels: Liquefied Natural Gas, Liquefied Petroleum Gas, and 
    Hydrogen.'' This report is available for review at the docket number 
    cited in the heading of this notice. The Abacus report develops gallons 
    equivalent measurements for LNG, LPG, and hydrogen gaseous fuels.
        After reviewing the Abacus report, the Environmental Protection 
    Agency (EPA) Office of Mobile Sources recommended adding hythane fuel 
    (a mixture of hydrogen and natural gas (principally methane)) as a 
    gaseous fuel for which a gallon equivalent should be calculated. EPA 
    stated that although hythane is currently being used and evaluated on a 
    limited basis, there is a possibility that hythane fuel may become 
    commercially available as a gaseous fuel. In a follow-up report, which 
    is also available in the docket, Abacus developed an appropriate gallon 
    equivalent measurement for hythane.
    
    3. Dual Energy Driving Range Requirements
    
        NHTSA received comments regarding the driving range proposed in the 
    NPRM from Minnegasco, Taylor-Wharton, the American Automobile 
    Manufacturers Association (AAMA), the Southern
    
    [[Page 14509]]
    California Gas Company (the Gas Company), and the American Gas 
    Association/Natural Gas Vehicle Coalition (AGA/NGV).
        Minnegasco, a natural gas utility, is concerned about the increase 
    of the minimum driving range for natural gas dual fueled vehicle 
    because a large share of the fleet vehicles in its territory do not 
    need a 200 mile range. Minnegasco also stated its concerns that the 
    size of the tanks required to achieve a 200 mile range in compressed 
    natural gas vehicles would require significant and costly vehicle 
    modifications. The company believes that requiring a 200 mile or 
    greater range would discourage the production of natural gas dual 
    fueled vehicles.
        Taylor-Wharton, a manufacturer of gas equipment, indicated that a 
    minimum driving range of 200 miles would be detrimental to the 
    compressed natural gas industry. Taylor-Wharton is concerned that 
    setting the minimum driving range above 100 miles for CNG dual fueled 
    vehicles would require the installation of two CNG fuel tanks, causing 
    increased weight and cost. Taylor-Wharton also believes that by 
    increasing the range, certain safe and cost effective CNG fuel tanks 
    would be eliminated from the market. This will also decrease the CNG 
    fuel tank competition and, therefore, increase fuel tank costs. Taylor-
    Wharton indicated that, in the future, a minimum driving range should 
    not be mandated for fleet vehicles, since these vehicles do not require 
    traveling long distances, and these vehicles' bases are equipped with 
    refueling infrastructure.
        The American Automobile Manufacturers Association (AAMA) believes 
    that the minimum driving requirement of 200 miles is too stringent for 
    natural gas vehicles but achievable for LPG and alcohol dual fueled 
    vehicles. The AAMA further discussed the uniqueness of natural gas and 
    the marketability and productivity of alternative vehicles. AAMA 
    contended that natural gas stored at 3,000 pounds per square inch (psi) 
    requires roughly four times the storage space to achieve a driving 
    range equivalent to gasoline vehicles. Further, because natural gas is 
    stored in cylinders that present greater challenges for installation 
    than gasoline tanks, less than optimum usage of space is achieved.
        AAMA believes that the market for alternative fuel vehicles (AFVs) 
    remains limited. AAMA stated that in 1995 the purchases by mandated 
    federal fleets would result in less than 15,000 AFV sales or 
    conversions, and in 1999 and later, an estimated 40,000 units. AAMA 
    also noted that market growth remains uncertain, as do implementation 
    of further mandates under the Energy Policy Act of 1992. AAMA stated 
    that even though incentives, such as CAFE credits for AFVs, help offset 
    the cost of product programs, a 200 mile minimum driving range may 
    remove this support factor for most dual fueled natural gas 
    automobiles.
        Southern California Gas Company (the Gas Company) indicated that it 
    believed the minimum driving range for dual-fueled natural gas vehicles 
    should not be raised above 200 miles. The Gas Company believes that use 
    of the congressionally-mandated minimum will allow for the 
    participation of the greatest number of natural gas vehicles.
        The American Gas Association and the Natural Gas Vehicle Coalition 
    submitted joint comments (AGA/NGV). AGA/NGV believe that the increased 
    driving range requirement of 200 miles will act as a disincentive for 
    manufacturers to produce natural gas vehicles. AGA/NGV contends that a 
    200 mile minimum driving range would increase vehicle costs by 
    necessitating additional and/or larger storage cylinders on natural gas 
    vehicles, which could require structural changes and possibly separate 
    safety testing. In their comments, the AGA/NGV stated that the natural 
    gas vehicle industry is conducting research to expand fuel storage 
    capacity without increasing weight or limiting storage space on these 
    vehicles; however, these cylinders cost more and require more space 
    than steel cylinders. They also observed that most natural gas vehicles 
    will be owned and operated by large fleets. Fleet vehicles typically 
    are refueled daily at a single location. Thus, a limited driving range 
    does not serve as a major disincentive for these operators. AGA/NGV 
    also commented that natural gas is more widely available and the need 
    for dual fueled NGVs use of gasoline is decreasing rapidly. For these 
    reasons, the intent of the statute--to ensure fueling on natural gas--
    is not likely to be subverted if NHTSA maintains the minimum driving 
    range at 100 miles.
        AGA/NGV believes that the congressional history associated with the 
    1992 amendment to Section 513(h)(2) does not demonstrate an intention 
    on the part of Congress to change the status of the manufacturing 
    incentives for natural gas vehicles and urged NHTSA not to increase the 
    requirements to 200 miles.
        Two commenters, AAMA and AGA/NGV, believe that the minimum driving 
    range of 200 miles for natural gas dual fueled vehicles is too 
    stringent. Therefore, these vehicles should be allowed to maintain a 
    100-mile driving range. Taylor-Wharton and Minnegasco agreed that 200 
    miles would serve as a disincentive to the natural gas industry. 
    Taylor-Wharton's argument focused on the limited space availability in 
    these natural gas dual fueled vehicles and the increased cost and 
    safety concerns for these vehicles' fuel tanks.
        Although the agency realizes that natural gas dual fueled vehicles' 
    driving range is shorter than that of gasoline-fueled vehicles and 
    several other alternative fuels, (CNG driving range is one-third to 
    one-half that of comparable gasoline-fueled vehicles, and LNG fuel tank 
    range is just under two-thirds that of gasoline), NHTSA's examination 
    of the 1992 amendments and the legislative history of these amendments 
    indicates that the agency is required by the amendment to Section 
    513(h)(2) to set a minimum driving range of not less than 200 miles for 
    all alternative fueled passenger automobiles other than electric 
    vehicles. The agency trusts that this 200-mile driving range for 
    natural gas dual fueled passenger vehicles is low enough to encourage 
    the production of these vehicles, yet not so low that motorists would 
    be discouraged by a low driving range from actually fueling their 
    vehicles with these alternative fuels.
        In the NPRM, NHTSA asked for comments on whether there are any 
    potentially available liquid alternative fuels that have significantly 
    higher energy content than alcohol on a volume basis, and, if so, 
    whether a driving range higher than 200 miles should be set for such 
    fuels. The agency received no such comments; therefore, NHTSA elects to 
    set the minimum driving range for dual fueled passenger automobiles 
    other than electric vehicles at 200 miles.
        NHTSA believes that although the majority of commenters preferred a 
    lower minimum driving range for dual fueled passenger vehicles, the law 
    requires the minimum driving range to be set at not less than 200 
    miles. NHTSA is therefore setting the minimum driving range for all 
    dual fueled vehicles other than electric vehicles at 200 miles to 
    encourage development of these vehicles to the maximum extent possible 
    permitted by law.
    
    4. Proposed Gallon Equivalents for Gaseous Fuels
    
        To carry out the special procedures for fuel economy calculations 
    that apply to alternative fuel vehicles, it is necessary, for gaseous 
    fuel vehicles, to have a gallon equivalent measurement. The 1992 
    amendments specified that 100 cubic feet of natural gas is deemed
    
    [[Page 14510]]
    to contain 0.823 gallon equivalent of natural gas. The 1992 amendments 
    required NHTSA to determine the appropriate gallon equivalent 
    measurement for gaseous fuels other than natural gas, and a gallon 
    equivalent of such gaseous fuel shall be considered to have a fuel 
    content of 15 one-hundredths of a gallon of fuel.
        The NPRM examined gallon equivalency measurements for five gaseous 
    fuels: (1) compressed natural gas; (2) liquified natural gas; (3) 
    liquified propane gas; (4) hydrogen; and (5) hythane (Hy5). NHTSA 
    received comments regarding the gallon equivalency measurements 
    proposed in the NPRM from Minnegasco, the American Gas Association/
    Natural Gas Vehicle Coalition (AGA/NGV), Reliance and the Propane 
    Vehicle Council.
        A. Liquefied Natural Gas. The Alternative Motor Fuels Act of 1988 
    included natural gas as an alternative fuel, but did not specify its 
    physical state as a compressed gas or a liquefied gas. The Abacus 
    report recommended that the same 0.823 gallon equivalent of natural gas 
    established in the Alternative Motor Fuels Act be applied to LNG based 
    on energy content in British Thermal Unit (BTU)/Standard Cubic Feet 
    (SCF), because LNG composition and heat of combustion are similar to 
    compressed natural gas.
        AGA/NGV recommended that NHTSA not apply the conversion ratio used 
    for CNG to LNG. However, AGA/NGV failed to describe what conversion 
    factor the agency should use for LNG.
        AGA/NGV's comments also suggested that a different gallon 
    equivalency be used for CNG. AGA/NGV indicated that the current 
    conversion ratio of 0.823 is inappropriate for use with CNG and 
    presented data suggesting that a conversion ratio of 0.809 (92,370 low 
    heating value Btu per 100 SCF divided by 114,118.8 Btu for gasoline) 
    would be more accurate. The different energy contents of liquefied 
    natural gas and liquid methane (99.6% purity) is another issue of 
    concern to AGA/NGV and it suggested that the conversion ratio for 
    liquid methane should be 0.793 (based on 99.6% pure methane). The 
    differences in energy content, according to AGA/NGV, could have a 
    significant impact on vehicle range.
        There were also concerns raised by AGA/NGV about potential 
    confusion caused by the conversion factor of 0.823 value for CNG. AGA/
    NGV indicated that the National Conference of Weights and Measures 
    (NCW&M) is establishing a standard method of measuring amounts of 
    compressed natural gas sold at retail fueling stations. The NCW&M 
    measurement compares pounds, not cubic feet, of compressed natural gas 
    to gallons of gasoline. As this standard of equating natural gas to 
    gasoline differs from that used for calculating fuel economy, AGA/NGV 
    is concerned that the continued use of the cubic foot equivalency for 
    CAFE purposes will cause confusion. AGA/NGV believes that other 
    regulatory agencies and consumers could misconstrue that the 100 SCF of 
    compressed natural gas equals one gallon of gasoline. Therefore, AGA/
    NGV urged NHTSA to note in its final rule that its calculations for the 
    cited gaseous fuels are only being promulgated for purposes of 
    performing CAFE calculations and should not be relied upon for other 
    purposes, such as establishing units of measurement for the dispensing 
    of fuel or taxation of alternative fuels.
        The divergence between the gallon equivalent for CAFE purposes and 
    as a unit of measure for retail sales and other purposes was also 
    raised in the submission given by Minnegasco. Minnegasco observed that 
    the National Conference of Weights and Measures (NCW&M) adopted 100 
    Standard Cubic Feet (SCF) as the Gasoline Gallon Equivalent (GGE) for 
    the sale for CNG engine fuel. Minnegasco contends that it would reduce 
    confusion if this gallon equivalent was adopted for purposes of fuel 
    economy determination. Minnegasco also suggested that a similar GGE 
    should be determined for LNG which takes into account temperature, 
    purity and density using standard industry references.
        NHTSA believes that it does not have the discretion to assign 
    different gallon equivalency values for LNG and CNG. Both the 
    Alternative Motor Fuels Act and the Energy Policy Act direct that the 
    0.823 gallon equivalency ratio be used with ``natural gas.'' As CNG and 
    LNG are both natural gases that differ principally in the way they are 
    stored, it is the agency's view that they are both subject to the 
    legislative determination that, for CAFE purposes, 100 SCF of these 
    gases are equivalent to 0.823 gallons of gasoline. Therefore, NHTSA 
    will continue to apply the conversion factor of 0.823 gallon equivalent 
    for LNG and CNG.
        B. Liquefied Propane Gas (LPG). The Gas Processors Association 
    Standard 2140-92 specifies four grades of LPG. They are commercial 
    propane, commercial butane, commercial butane-propane mixtures, and 
    propane HD-5. Propane HD-5 is recognized as the most suitable fuel for 
    internal combustion engines operating at moderate to high engine 
    severity. In the NPRM, NHTSA proposed that one gallon of LPG, grade HD-
    5, is equivalent to 0.732 gallon of gasoline, using a lower heating 
    value. Two commenters addressed the proposed gallon equivalent 
    measurement for LPG. The Propane Vehicle Council and Reliance stated 
    that they supported a gallon equivalency measurement of 0.732 for LPG.
        The 0.732 gallon equivalency published in the NPRM was based on a 
    lower heating value recommended in the first Abacus report. After 
    publication of the NPRM, The Department of Energy suggested that the 
    use of a lower heating value for propane was inconsistent with the use 
    of a higher heating value in calculating the gallon equivalency for 
    natural gas. In addition, DOE also indicated that the use of a higher 
    heating value was more consistent with the heating values used by DOE 
    in compiling other energy related information and statistics.
        NHTSA believes that the use of a higher heating value for 
    calculation of the gallon equivalency for propane is consistent with 
    the use of higher heating values for natural gas in AMFA and EPACT. 
    Therefore, the agency is setting the gallon equivalency for propane at 
    0.726 gallons of gasoline per gallon of propane.
        C. Hydrogen. NHTSA did not receive any comments regarding the 
    proposed gallon equivalent of 100 SCF of hydrogen of 0.240 contained in 
    the NPRM. As is the case with the gallon equivalency for propane 
    contained in the same NPRM, the proposed value was based on a lower 
    heating value. The agency believes that the use of a lower heating 
    value to calculate the gallon equivalency for hydrogen is inconsistent 
    with the use of a higher heating value for natural gas. NHTSA is 
    therefore setting the gallon equivalency for hydrogen at 0.259 gallons 
    of gasoline per 100 SCF of hydrogen.
        D. Hythane. Hythane is a combination of two gaseous fuels: hydrogen 
    and natural gas. The second Abacus report concluded that the gallon 
    equivalent of 100 SCF of this hythane mixture is 0.725 using the lower 
    heating value. NHTSA did not receive any comments regarding the 
    proposed gallon equivalent for hythane. The agency is adopting a value 
    of 0.741 gallons of gasoline per 100 SCF of hythane. This value 
    represents the equivalency at a higher heating value. As is the case 
    with hydrogen and propane, NHTSA believes that the use of this higher 
    heating value is consistent with the use of higher heating values in 
    calculating the gallon equivalency for natural gas.
    
    [[Page 14511]]
    
    
    Regulatory Impacts
    
    A. Executive Order 12866 and DOT Regulatory Policies and Procedures
    
        This notice has not been reviewed under Executive Order 12866. 
    NHTSA has considered the impact of this rulemaking action and has 
    determined that the action is not ``significant'' under the Department 
    of Transportation's regulatory policies and procedures. In this final 
    rule, the agency is setting the minimum driving range for all dual 
    fueled passenger automobiles other than electric vehicles at 200 miles 
    and is establishing gallon equivalents for specified gaseous fuels. 
    None of these changes will result in an additional burden on 
    manufacturers. They do not impose any mandatory requirements but 
    implement statutory incentives to encourage the manufacture of 
    alternative fuel vehicles. For these reasons, NHTSA believes that any 
    impacts on manufacturers are so minimal as not to warrant preparation 
    of a full regulatory evaluation.
    
    B. Regulatory Flexibility Act
    
        The agency has also considered the effects of this rulemaking 
    action under the Regulatory Flexibility Act. I certify that this rule 
    will not have a significant economic impact on a substantial number of 
    small entities. The rationale for this certification is that, to the 
    extent that any passenger automobile manufacturers qualify as small 
    entities, their number would not be substantial. Moreover, conversion 
    of vehicles to dual fuel status with the minimum ranges that would be 
    established by this regulation would be voluntarily undertaken in order 
    to achieve beneficial CAFE treatment of those vehicles. Therefore, no 
    significant costs would be imposed on any manufacturers or other small 
    entities.
    
    C. National Environmental Policy Act
    
        The agency has also analyzed this rule for the purpose of the 
    National Environmental Policy Act, and determined that it would not 
    have any significant impact on the quality of the human environment. 
    Increased evaporative emissions due to added fuel volume would be the 
    most important environmental impact of this rulemaking if it induced 
    manufacturers to enlarge the size of existing fuel tanks in order to 
    produce dual fuel vehicles operating on alcohol or other liquid fuel. 
    However, the minimum range would not make it necessary for these dual 
    fuel vehicles to have enlarged fuel tanks. Natural gas and other 
    gaseous dual fueled automobiles will not expect to increase evaporative 
    emissions since gaseous tanks do not normally vent to the atmosphere.
    
    D. Paperwork Reduction Act
    
        The procedures in this proposed rule for passenger automobile 
    manufacturers to petition for lower driving ranges are considered to be 
    information collection requirements as that term is defined by the 
    Office of Management and Budget (OMB) in 5 CFR part 1320. The 
    information collection requirements for part 538 have been submitted to 
    and approved by the OMB, pursuant to the Paperwork Reduction Act (44 
    U.S.C. 3501 et seq.) This collection of information has been assigned 
    OMB Control No. 2127-0554. (Minimum Driving Ranges for Dual Energy 
    Passenger Automobiles) and has been approved for use through June 30, 
    1996.
    
    E. Federalism
    
        This action has been analyzed in accordance with the principles and 
    criteria contained in Executive Order 12612, and it has been determined 
    that the rule does not have sufficient federalism implications to 
    warrant the preparation of a Federalism Assessment.
    
    F. Civil Justice Reform
    
        This proposed rule would not have any retroactive effect and it 
    does not preempt any State law. 49 U.S.C. 32909 sets forth a procedure 
    for judicial review of automobile fuel economy regulations. That 
    section does not require submission of a petition for reconsideration 
    or other administrative proceedings before parties may file suit in 
    court.
    
    List of Subjects in 49 CFR Part 538
    
        Energy conservation, Gasoline, Imports, Motor vehicles.
    
        In consideration of the foregoing, 49 CFR part 538 is revised to 
    read as follows:
    
    PART 538--MANUFACTURING INCENTIVES FOR ALTERNATIVE FUEL VEHICLES
    
    Secs.
    538.1  Scope.
    538.2  Purpose.
    538.3  Applicability.
    538.4  Definitions.
    538.5  Minimum driving range.
    538.6  Measurement of driving range.
    538.7  [Reserved]
    538.8  Gallon Equivalents for Gaseous Fuels.
    
        Authority: 49 U.S.C. 32901, 32905, and 32906; delegation of 
    authority at 49 CFR 1.50.
    
    
    Sec. 538.1  Scope.
    
        This part establishes minimum driving range criteria to aid in 
    identifying passenger automobiles that are dual fueled automobiles. It 
    also establishes gallon equivalent measurements for gaseous fuels other 
    than natural gas.
    
    
    Sec. 538.2  Purpose.
    
        The purpose of this part is to specify one of the criteria in 49 
    U.S.C. chapter 329 ``Automobile Fuel Economy'' for identifying dual 
    fueled passenger automobiles that are manufactured in model years 1993 
    through 2004. The fuel economy of a qualifying vehicle is calculated in 
    a special manner so as to encourage its production as a way of 
    facilitating a manufacturer's compliance with the Corporate Average 
    Fuel Economy Standards set forth in part 531 of this chapter. The 
    purpose is also to establish gallon equivalent measurements for gaseous 
    fuels other than natural gas.
    
    
    Sec. 538.3  Applicability.
    
        This part applies to manufacturers of automobiles.
    
    
    Sec. 538.4  Definitions.
    
        (a) Statutory terms. (1) The terms alternative fuel, alternative 
    fueled automobile, and dual fueled automobile, are used as defined in 
    49 U.S.C. 32901(a).
        (2) The terms automobile and passenger automobile, are used as 
    defined in 49 U.S.C. 32901(a), and in accordance with the 
    determinations in part 523 of this chapter.
        (3) The term manufacturer is used as defined in 49 U.S.C. 
    32901(a)(13), and in accordance with part 529 of this chapter.
        (4) The term model year is used as defined in 49 U.S.C. 
    32901(a)(15).
        (b)(1) Other terms. The terms average fuel economy, fuel economy, 
    and model type are used as defined in subpart A of 40 CFR part 600.
        (2) The term EPA means the U.S. Environmental Protection Agency.
    
    
    Sec. 538.5  Minimum driving range.
    
        (a) The minimum driving range that a passenger automobile must have 
    in order to be treated as a dual fueled automobile pursuant to 49 
    U.S.C. 32901(c) is 200 miles when operating on its nominal useable fuel 
    tank capacity of the alternative fuel, except when the alternative fuel 
    is electricity.
        (b) [Reserved]
    
    
    Sec. 538.6  Measurement of driving range.
    
        The driving range of a passenger automobile model type is 
    determined by multiplying the combined EPA city/highway fuel economy 
    rating when operating on the alternative fuel, by the nominal usable 
    fuel tank capacity (in gallons), of the fuel tank containing the
    
    [[Page 14512]]
    alternative fuel. The combined EPA city/highway fuel economy rating is 
    the value determined by the procedures established by the Administrator 
    of the EPA under 49 U.S.C. 32904 and set forth in 40 CFR part 600.
    
    
    Sec. 538.7  [Reserved]
    
    
    Sec. 538.8  Gallon Equivalents for Gaseous Fuels.
    
        The gallon equivalent of gaseous fuels, for purposes of 
    calculations made under 49 U.S.C. 32905, are listed in Table I:
    
        Table I--Gallon Equivalent Measurements for Gaseous Fuels per 100   
                               Standard Cubic Feet                          
    ------------------------------------------------------------------------
                                                                 Gallon     
                             Fuel                              equivalent   
                                                               measurement  
    ------------------------------------------------------------------------
    Compressed Natural Gas................................         0.823    
    Liquefied Natural Gas.................................         0.823    
    Liquefied Petroleum Gas (Grade HD-5)*.................         0.726    
    Hydrogen..............................................         0.259    
    Hythane (Hy5).........................................         0.741    
    ------------------------------------------------------------------------
    * Per gallon unit of measure.                                           
    
        Issued on: March 21, 1996.
    Barry Felrice,
    Associate Administrator for Safety Performance Standards.
    [FR Doc. 96-7828 Filed 4-1-96; 8:45 am]
    BILLING CODE 4910-59-P
    
    

Document Information

Effective Date:
6/3/1996
Published:
04/02/1996
Department:
National Highway Traffic Safety Administration
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-7828
Dates:
These requirements are effective June 3, 1996. Petitions for reconsideration must be submitted within 45 days of publication.
Pages:
14507-14512 (6 pages)
Docket Numbers:
Docket No. 94-96, Notice 2
RINs:
2127-AF18: Equivalent Measurements for Gaseous Fuels
RIN Links:
https://www.federalregister.gov/regulations/2127-AF18/equivalent-measurements-for-gaseous-fuels
PDF File:
96-7828.pdf
CFR: (9)
49 CFR 32901(c)(2)(B)
49 CFR 538.1
49 CFR 538.2
49 CFR 538.3
49 CFR 538.4
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