96-22539. Manufacturing Incentives for Alternative Fuel Vehicles

[Federal Register Volume 61, Number 173 (Thursday, September 5, 1996)]
[Rules and Regulations]
[Pages 46740-46741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22539]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 538

[Docket No. 94-96; Notice 3]
RIN 2127-AF18


Manufacturing Incentives for Alternative Fuel Vehicles

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Denial of petition for reconsideration.

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SUMMARY: This notice announces the denial of a petition for 
reconsideration of the agency's decision to set a 200 mile minimum 
driving range for dual fueled passenger automobiles other than electric 
vehicles.

FOR FURTHER INFORMATION CONTACT: The following persons at the National 
Highway Traffic Safety Administration, 400 Seventh Street, S.W., 
Washington, D.C. 20590:
    For non-legal issues: Ms. Henrietta L. Spinner, Consumer Programs 
Division, Office of Planning and Consumer Programs, National Highway 
Traffic Safety Administration, 400 Seventh Street SW, Washington, DC 
20590, [phone].
    For legal issues: Otto Matheke, Office of the Chief Counsel, NCC-
20, telephone [phone], facsimile [phone].

SUPPLEMENTARY INFORMATION:

I. Establishment of a Minimum Driving Range for Dual Fueled 
Vehicles

    On April 2, 1996, NHTSA published a notice in the Federal Register 
(61 FR 14507) announcing a final rule establishing a minimum driving 
range for dual fueled vehicles other than electric vehicles. This 
notice also established gallons equivalent measurements for gaseous 
fuels other than natural gas and eliminated provisions relating to the 
granting of alternative range requirements for alternative fueled 
vehicles not powered by electricity.
    The agency promulgated this rule in response to amendments in the 
Energy Policy Act of 1992 (EPACT) (P.L. 102-486) expanding the scope of 
the alternative fuels promoted by section 513 of the Motor Vehicle and 
Cost Savings Act (Cost Savings Act), now recodified as 49 U.S.C. 
Sec. 32905. Section 32901(c), the replacement section for section 
513(h)(2), requires 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 EPACT concerning driving ranges was that, under 
section 32901(c), the minimum driving range set by NHTSA for dual 
fueled passenger automobiles other than electric vehicles could not be 
less than 200 miles. The EPACT 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 EPACT amendments necessitated amending Part 538. In response, 
the agency established gallons equivalent measurements for the wider 
range of alternative fuels included in the EPACT amendments and deleted 
provisions relating to the establishment of alternative minimum driving 
ranges for non-electric alternative-fueled vehicles. In regard to the 
minimum driving range, NHTSA concluded that both the text and the 
legislative history of these amendments indicated that the agency was 
required to set a minimum driving range of not less than 200 miles for 
all dual passenger automobiles other than electric vehicles.

II. Petition for Reconsideration of the Minimum Driving Range

    On April 19, 1996, the agency received a petition from Volvo Cars 
of North America, Inc., (Volvo) requesting reconsideration of NHTSA's 
decision to set a minimum driving range of 200 miles for all dual 
fueled passenger automobiles other than electric vehicles.
    Volvo's petition argues that a 200 mile driving range is too 
stringent for compressed natural gas (CNG) passenger automobiles. The 
petition indicates Volvo believes that attaining a 200 mile range in a 
CNG vehicle would require large fuel storage cylinders. These large 
cylinders, in Volvo's view, would increase vehicle weight and cost 
while reducing usable space in the vehicle. The combination of 
increased weight and cost with decreased utility would discourage 
consumers from purchasing these passenger automobiles.

III. Response To Petition for Reconsideration

    In response to the petition, the agency has reconsidered its 
decision to set a 200 mile minimum driving range for non-electric dual 
fueled passenger automobiles when operating on an alternative fuel. As 
explained below, the

[[Page 46741]]

agency is, on reconsideration, reaffirming that decision.
    The petition raises several points that are not disputed by NHTSA; 
however, the agency does not have the discretion to set a lower range 
for these vehicles. NHTSA's examination of the EPACT amendments and 
their legislative history indicates that the agency is required by the 
amendment to Section 513(h)(2) of the Cost Savings Act to set a minimum 
driving range of not less than 200 miles for all alternative fueled 
passenger automobiles other than electric vehicles. The agency does not 
dispute that the 200 mile minimum driving range will place increased 
fuel storage demands on gaseous fueled vehicles and that these 
increased demands, particularly in the case of CNG powered passenger 
automobiles, will increase weight and cost while decreasing usable 
vehicle space. Nonetheless, the explicit language of the EPACT 
amendments, the legislative history, and the congressional 
determination contained in those amendments to restrict the exemption 
from the minimum driving range requirements to electric passenger 
automobiles, compels the conclusion that NHTSA does not have the 
discretion to set the range below 200 miles. Accordingly, the agency is 
denying the petition.

    Issued on: August 29, 1996.
Patricia Breslin,
Acting Associate Administrator for Safety Performance Standards.
[FR Doc. 96-22539 Filed 9-4-96; 8:45 am]
BILLING CODE 4910-59-P