Proposed Rule Federal Register Notice

Vol. 76

Monday,

No. 210

October 31, 2011

Part III

Department of Energy

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10 CFR Part 490
Alternative Fuel Transportation Program; Alternative Fueled Vehicle Credit
Program (Subpart F) Modification and Other Amendments; Proposed Rule

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Federal Register / Vol. 76, No. 210 / Monday, October 31, 2011 / Proposed Rules

DEPARTMENT OF ENERGY
10 CFR Part 490
[Docket ID No. EERE–2011–OT–0066]
RIN 1904–AB81

Alternative Fuel Transportation
Program; Alternative Fueled Vehicle
Credit Program (Subpart F)
Modification and Other Amendments
Department of Energy (DOE).
Notice of proposed rulemaking.

AGENCY:
ACTION:

DOE today proposes a rule
pursuant to the Energy Independence
and Security Act of 2007 (EISA), that
would revise the allocation of
marketable credits under DOE’s
Alternative Fuel Transportation
Program (AFTP or Program), by
including EISA-specified electric drive
vehicles and investments in qualified
alternative fuel infrastructure, nonroad
equipment, and relevant emerging
technologies. DOE also is proposing
modifications to the use of Program
credits, revisions to the exemption
process, clarifications of the Alternative
Compliance option, and several
technical and other amendments
intended to make the Program
regulations clearer.
DATES: Public comments on this
proposed rulemaking must be received
no later than December 30, 2011 to
ensure consideration.
ADDRESSES: DOE has established a
docket for this action under Docket ID
No. EERE–2011–OT–0066. All
documents in the docket are listed in
the EDOCKET index and may be
accessed at http://www.regulations.gov,
under the aforementioned docket
number. Submit comments, identified
by the aforementioned docket number,
by one of the following methods:
1. Federal eRulemaking Portal: http://
www.regulations.gov. Follow the on-line
instructions.
2. Email:
[email protected].
3. Mail or deliver: (eight copies) U.S.
Department of Energy, Office of Energy
Efficiency and Renewable Energy, EE–
2G, RIN 1904–AB81, 1000
Independence Avenue SW.,
Washington, DC 20585–0121. DOE is
currently using Microsoft Word.
Organizations are strongly encouraged
to submit comments electronically, to
facilitate timely receipt of comments
and inclusion in the electronic docket.
Copies of this notice and written
comments will be placed at the
following Web site address: http://
www1.eere.energy.gov/vehiclesandfuels/
epact/private/index.html. Before taking

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SUMMARY:

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final action on today’s proposal, DOE
will consider all comments and other
relevant information received on or
before the date specified above. All
comments submitted will be made
available in the electronic docket set up
for this rulemaking. Therefore, no
information desired to be kept
confidential should be submitted to the
docket. This docket will be available via
the DOE EDOCKET through http://
www.regulations.gov, which may be
located using key words or the above
noted docket number. For more
information concerning public
participation in this rulemaking, see the
SUPPLEMENTARY INFORMATION section on
‘‘Opportunity for Public Comment.’’
FOR FURTHER INFORMATION CONTACT: For
information concerning this notice,
contact Mr. Dana V. O’Hara, Office of
Energy Efficiency and Renewable
Energy (EE–2G), U.S. Department of
Energy, 1000 Independence Avenue
SW., Washington, DC 20585–0121;
Telephone: (202) 586–9171; Email:
[email protected]; or Mr.
Ari Altman, Office of the General
Counsel, U.S. Department of Energy,
1000 Independence Avenue SW.,
Washington, DC 20585–0121;
Telephone: (202) 287–6307; Email:
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
A. General
B. Current Status of Alternative Fuel
Transportation Program
C. Statutory Authority for Proposals
Included in This NOPR
1. EISA
2. Additional Proposed Revisions
III. Key Definitions
A. Existing Definitions
1. Alternative Fuel
2. Alternative Fueled Vehicle
3. Automobile
4. Dedicated Vehicle
5. Dual Fueled Vehicle
6. Electric Motor Vehicle and ElectricHybrid Vehicle
7. Section 133—Identified Vehicles That
Already Qualify as AFVs
B. New Definitions: EISA Section 133
Vehicles and Actions
1. Fuel Cell Electric Vehicle
2. Hybrid Electric Vehicle
3. Medium- or Heavy-Duty Electric Vehicle
4. Neighborhood Electric Vehicle
5. Plug-In Electric Drive Vehicle
6. Alternative Fuel Infrastructure
7. Alternative Fuel Nonroad Equipment
8. Emerging Technology
IV. Proposed Allocation of Credit
A. General Basis for Allocations
B. Electric Drive Vehicles
1. Hybrid Electric Vehicles (HEVs)
2. Plug-In Electric Drive Vehicles
3. Fuel Cell Electric Vehicles (FCEVs)

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4. Neighborhood Electric Vehicles (NEVs)
5. Medium- or Heavy-Duty Electric
Vehicles
a. General
b. Hybrid Electric and Plug-In Hybrid
Electric Vehicles
C. Investments
1. Alternative Fuel Infrastructure
2. Alternative Fuel Nonroad Equipment
3. Emerging Technology
V. Proposed Modifications to the Existing
AFTP
A. Timeliness of Exemption Request
Submittals
B. Program Credits and Exemption
Requests
C. Alternative Compliance
D. Other Regulatory Revisions
E. Other Issues
VI. Proposed Compliance
A. Credit Values
B. Reporting
VII. Opportunity for Public Comment
A. Participation in Rulemaking
B. Written Comment Procedures
VIII. Regulatory Review
A. Review Under Executive Order 12866
B. Review Under the Regulatory Flexibility
Act
C. Review Under the Paperwork Reduction
Act of 1995
D. Review Under the National
Environmental Policy Act
E. Review Under Executive Order 12988
F. Review Under Executive Order 13132
G. Review Under the Unfunded Mandates
Reform Act of 1995
H. Review Under the Treasury and General
Government Appropriations Act, 1999
I. Review Under the Treasury and General
Government Appropriations Act, 2001
J. Review Under Executive Order 13211

I. Introduction
Titles III through V of the Energy
Policy Act of 1992 (EPAct 1992, Pub. L.
102–486, as amended at 42 U.S.C. 13201
et seq.) focus on the replacement of
petroleum transportation fuels with
fuels such as alternative fuels and
conventional/replacement fuel blends.
The provisions in EPAct 1992 encourage
the purchase and use of replacement
fuels, requiring that certain fleets
acquire alternative fueled vehicles
(AFVs) as part of their annual light duty
vehicle (LDV) acquisitions. Section
301(3) of EPAct 1992 (42 U.S.C.
13211(3)) defines the term ‘‘alternative
fueled vehicle’’ as a ‘‘dedicated
[alternative fuel] or dual fueled
vehicle,’’ and sections 501 (42 U.S.C.
13251) and 507 (42 U.S.C. 13257) of the
statute contain AFV-acquisition
mandates for alternative fuel provider
fleets and State fleets, respectively.
These fleets may earn credits towards
their light duty AFV-acquisition
requirements in various ways, as
provided by section 508 of EPAct 1992
(42 U.S.C. 13258) and the Program
regulations at 10 CFR part 490.

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Congress has amended the EPAct
1992 fleet program for State and
alternative fuel provider (SFP) fleets
several times. The amendments have
allowed covered fleets to earn
additional credits for the use of
biodiesel in blends of 20 percent
biodiesel or greater and have provided
an alternative compliance option. Note
that upon the creation of the
‘‘Alternative Compliance’’ option (see
discussion in Part II.A), the original
program based upon AFV acquisitions
and biodiesel use became known as
‘‘Standard Compliance.’’ Each
amendment has allowed the fleets to
explore the viability of expanded use of
AFVs and alternative fuels and thereby
promote the use of replacement fuels.
For the purposes of EPAct 1992 and
related programs, the terms ‘‘alternative
fuel’’ and ‘‘replacement fuel’’ both are
widely used, but are not
interchangeable. While a more specific
definition of ‘‘alternative fuel’’ is set
forth below, in general, alternative fuels
include a variety of non-petroleum
transportation fuels, as provided in
section 301(2) of EPAct 1992.
Replacement fuel, as defined in section
301(14), refers to the alternative fuel
portion of an alternative/petroleum fuel
mix or a neat (i.e., 100%) alternative
fuel. For example, B20 (a 20 percent
blend of biodiesel with 80 percent
petroleum diesel) is not an alternative
fuel, but the 20 percent that is nonpetroleum is considered replacement
fuel, while B100 (neat biodiesel) is both
an alternative fuel and a replacement
fuel.
The primary focus of today’s proposal
is section 133 of EISA, which amended
section 508 of EPAct 1992. EISA section
133 provides definitions and directs
DOE to allocate credits under section
508 for the acquisition by covered fleets
of various types of electric drive
vehicles, and for investments by
covered fleets in qualified alternative
fuel infrastructure, nonroad equipment,
and emerging technologies related to
those electric drive vehicles. As
discussed in more detail below, some of
the electric drive vehicles identified in
section 133 already meet the EPAct
1992 definition of an AFV and therefore
already are entitled to full credit under
the AFTP, while others do not currently
meet the AFV definition. In today’s
action, DOE is proposing credit
allocations under the AFTP for the
acquisition by covered fleets of those
section 133-identified electric drive
vehicles that do not already qualify as
AFVs, and for several specific types of
investments that covered fleets may
make. These credit allocations would

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only impact SFP fleets operating under
Standard Compliance.
DOE also is proposing today to
modify several aspects of the existing
AFTP. These modifications would:
Enhance the timeliness of exemption
requests; require covered fleets to use
their own banked credits before
requesting exemptions; mandate that
fleets without sufficient AFV
acquisitions, biodiesel fuel use credits,
and banked credits to meet their
compliance requirements include in
their annual reports information about
any efforts they made to acquire credits
from other fleets; and revise the
deadline for submitting Alternative
Compliance waiver applications.
Finally, DOE also is proposing a number
of clarifications as well as several
revisions that would make the AFTP
regulations consistent with amendments
to EPAct 1992.
II. Background
A. General
The overall objectives of the fleet
programs and other efforts under Titles
III–V of EPAct 1992 are to expand the
use of alternative fuels and AFVs within
specified fleets and to replace petroleum
with replacement fuels to the
‘‘maximum extent practicable.’’ 1 The
requirements of Titles III through V of
EPAct 1992 focus on particular fleets,
such as SFP fleets (which are the
subjects of today’s proposal) and
Federal fleets,2 as well as voluntary
activities, such as those implemented
under DOE’s Clean Cities Program.3 The
mandated programs for centrally-fueled
fleets seek to catalyze maximum use of
replacement fuels, and, in particular,
alternative fuels.
As indicated above, EPAct 1992
establishes AFV-acquisition
requirements for SFP fleets, which DOE
codified as the AFTP at 10 CFR 490.1
et seq.4 Titles III, IV, and V of EPAct
1992 do not provide broad incentives
for petroleum reduction or requirements
for overall emissions reductions, but
1 42

U.S.C. 13252(a).
section 303 of EPAct 1992 (42 U.S.C.
13212), Federal fleets were required to acquire
AFVs starting in Fiscal Year (FY) 1993, increasing
their acquisitions to 75 percent of all covered
acquisitions in FY 1999 and thereafter.
3 Under section 505 of EPAct 1992 (42 U.S.C.
13255), DOE obtains voluntary commitments from
fuel suppliers to make replacement fuels available,
from fleets to acquire AFVs and use alternative
fuels, and from vehicle manufacturers to make
AFVs and related services available to the public.
These commitments comprise the Clean Cities
Program, which works to bring together all
necessary parties in given geographic areas to
further the use of alternative fuels.
4 DOE promulgated the AFTP regulations on
March 14, 1996. 61 FR 10622.
2 Under

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rather focus on requirements for certain
centrally-fueled fleets to acquire AFVs.
EPAct 1992 requires that SFP fleets
acquire AFVs as minimum percentages
of their annual LDV acquisitions (now
90 percent for alternative fuel provider
fleets and 75 percent for State fleets, in
Sections 501(a) and 507(o),
respectively). The types of vehicles that
satisfy the SFP fleet acquisition
mandates are determined primarily by
the definitions of ‘‘alternative fuel’’ and
‘‘alternative fueled vehicle’’ in section
301 of the statute. The threshold that
determines whether an SFP fleet is
subject to these respective acquisition
mandates turns on the size and location
criteria set forth in the section 301
definitions of ‘‘fleet’’ and ‘‘covered
person.’’ Generally, covered fleets under
the AFTP are those State government
entities and alternative fuel providers
that own, operate, lease, or otherwise
control 50 or more non-excluded LDVs,
at least 20 of which are capable of being
centrally fueled and are used primarily
in a metropolitan statistical area (MSA)
or consolidated MSA with a 1980
Census population of more than
250,000.
Consistent with sections 501(a)(5) and
507(i)(1) of EPAct 1992, the AFTP
regulations at 10 CFR 490.204 and
490.308 provide a process through
which State fleets and alternative fuel
provider fleets, respectively, may
request exemptions from the applicable
AFV-acquisition requirements for a
particular model year. All covered fleets
may seek an exemption on the basis of
lack of available AFVs or lack of
available alternative fuels; State fleets
also may seek an exemption on the basis
of unreasonable financial hardship.
Under section 507(o)(2) of EPAct 1992
and its implementing regulation, 10 CFR
490.203, States may submit a Light Duty
Alternative Fueled Vehicle Plan to DOE
for approval, which serves as an
additional compliance option. An
approved plan relieves those State fleets
that are included in the plan from
otherwise having to meet the AFVacquisition mandate on their own.
While the plan must provide for
voluntary acquisitions or conversions by
State, local, and private fleet
participants that, in the aggregate, equal
or exceed the State’s AFV-acquisition
requirement, there is no limit to the
number of State, local, and private fleets
that may participate in the plan. Any
such plan must include, among other
information, a certification from the
appropriate State official and a written
statement of commitment from each
plan participant.
Under the AFTP, covered fleets can
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credits. Section 508 of EPAct 1992
enables fleets to earn bankable and
tradable credits by acquiring AFVs prior
to or in excess of requirements. DOE’s
implementing regulations for the credit
program appear at subpart F of 10 CFR
part 490.
In practice, SFP fleets typically
generate surplus credits in one of two
ways—either by acquiring in a
particular model year more of their
covered LDVs as AFVs (such as
acquiring 100 percent as AFVs instead
of the required 75 or 90 percent), or by
acquiring AFVs in ‘‘excluded vehicle’’
classes (such as employee take-home
vehicles or law enforcement vehicles).5
As indicated, they are also able to
generate credits by acquiring AFVs
earlier than required.6 Fleets may use
the surplus credits generated in these
ways in future model years to cover
shortfalls (banking), or they may sell or
trade the credits to other covered fleets.7
For a fleet that has not met its AFVacquisition requirement in a particular
model year, purchasing or trading for
credits is a viable means by which to
attain AFTP compliance inasmuch as
the fleet can obtain the necessary
number of credits and thereby
compensate for its failure to acquire the
requisite number of AFVs.
The Energy Conservation
Reauthorization Act of 1998 (Pub. L.
105–388) included an amendment to the
EPAct 1992 Title V fleet AFVacquisition requirement, allowing SFP
fleets to use biodiesel blends (of at least
20 percent biodiesel, B20) as a partial
alternative means of complying with
their AFV-acquisition requirements
(limited to meeting 50 percent of
requirements, except for biodiesel fuel
providers). In the Energy Policy Act of
2005 (EPAct 2005, Pub. L. 109–58),
Congress again amended the Title V
fleet program to provide an optional
compliance path for covered fleets
called ‘‘Alternative Compliance.’’ Under
this option, an SFP fleet may apply for
an Alternative Compliance waiver that,
if granted by DOE, enables the fleet to
implement various means of achieving
petroleum reductions, including but not
limited to the use of alternative fuels,
the use of biodiesel blends without
either the B20 threshold or the 50
percent cap that apply under Standard
Compliance, fuel economy
improvements, the purchase of hybrid
and other advanced technology (higher
efficiency) vehicles, idle time
reductions, and a reduction in vehicle
5 See

10 CFR 490.3.
CFR 490.502(b).
7 See 10 CFR 490.504 and 10 CFR 490.506,
respectively.
6 10

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miles traveled, in lieu of complying
solely through AFV acquisitions and/or
biodiesel use (under Standard
Compliance). The addition of this
Alternative Compliance option provided
additional flexibility to fleets exploring
the use of alternative fuels, as well as
certain fuel efficiency technologies (e.g.,
hybrid vehicles, idle reduction) and trip
reduction approaches. In fact, the
Alternative Compliance option already
allows fleets to explore many of the
technologies that are the subject of
today’s proposed rule.
Today’s proposal would implement
EISA section 133, allocating to covered
fleets operating under Standard
Compliance credits under section 508
for the acquisition of various types of
electric drive vehicles, and for
investments in qualified alternative fuel
infrastructure, nonroad equipment, and
emerging technologies related to
specific vehicle types. In developing
this NOPR, DOE has been guided by the
fact that EISA section 133 specifically
amends section 508 of EPAct 1992 and
requires DOE to revise the manner in
which credits may be earned by covered
fleets for purposes of achieving SFP
fleet compliance. For this reason, DOE
is proposing that credits be allocated to
those electric drive vehicles identified
in section 133 that do not already
qualify as AFVs based upon a yardstick
of petroleum displacement, rather than
simply treating the vehicles as
equivalent to AFVs. The section 133identified vehicles that already qualify
as AFVs are already entitled to full
credit under the AFTP.
B. Current Status of Alternative Fuel
Transportation Program
Since Model Year (MY) 2000, the
AFTP has been highly successful.
Through MY 2009, covered SFP fleets
acquired nearly 160,000 AFVs.
Annually, these fleets typically are
acquiring between 10,000 and 14,000
AFVs.
SFP fleets unable to acquire AFVs or
without alternative fuel available for
AFVs may file for exemptions from the
AFV-acquisition requirements, in
accordance with the provisions of EPAct
1992 sections 501(a)(5) and 507(i). Since
MY 2000, DOE has received nearly 350
exemption requests, granting
exemptions and thereby relieving the
requesting fleets from having to acquire
more than 9,600 AFVs.
Covered fleets have used and
continue to use the credit program
regularly. In the early stages of the
AFTP, the primary users of credits were
the fleets generating and banking them
to provide additional compliance
flexibility in future years. Since MY

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1997, covered SFP fleets have applied
more than 27,000 credits to meet AFVacquisition requirements. Subsequently,
while applying banked credits has
remained a significant use of surplus
credits, a number of fleets have been
selling their credits, with approximately
1,000–1,500 credits now being
exchanged each year, and more than
9,500 credits having been exchanged
since MY 1999. Overall, covered fleets
currently hold over 61,500 banked
credits, enough credits for perhaps four
or more years of operation of the entire
AFTP.
C. Statutory Authority for Proposals
Included in This NOPR
1. EISA
EISA section 133 amended section
508 of EPAct 1992 by providing
definitions of specific electric drive
vehicles. These electric drive vehicles
include ‘‘fuel cell electric vehicles,’’
‘‘hybrid electric vehicles,’’ ‘‘medium- or
heavy-duty electric vehicles,’’
‘‘neighborhood electric vehicles,’’ and
‘‘plug-in electric drive vehicles.’’ (42
U.S.C. 13258(a)) EISA section 133(3)
further amended section 508 by
directing DOE to allocate credit ‘‘in an
amount to be determined by [DOE]’’ for
the acquisition of these electric drive
vehicles, as well as for ‘‘investment in
qualified alternative fuel infrastructure
or nonroad equipment, as determined
by [DOE].’’ (42 U.S.C. 13258(b)(2)(A))
DOE is also directed to ‘‘allocate more
than 1, but not to exceed 5, credits for
investment in an emerging technology
relating to any’’ of the enumerated
electric drive vehicles ‘‘to encourage’’
petroleum and vehicle emissions
reductions and technological
advancement. (42 U.S.C. 13258(b)(2)(B))
Considered broadly, section 133
requires that DOE allocate some level of
credit for additional vehicle types and
various investments, further expanding
the list of options that covered fleets
may use in their efforts to comply with
EPAct 1992’s AFV-acquisition
requirements. Importantly, section 133
does not define, nor require DOE to
define, the specified vehicle types as
AFVs—it merely calls for DOE to
allocate some level of credit to these
vehicle types.
DOE reiterates that EISA section 133
revised section 508 of EPAct 1992,
which pertains to SFP fleets. Today’s
proposed rule therefore addresses SFP
fleets only, and not Federal fleets.
The allocations that DOE is proposing
today are intended to ensure
consistency with the overall approach of
the relevant provisions of EPAct 1992,
which focus on the replacement of

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petroleum fuels through the use of
replacement fuels to the maximum
extent practicable.
It is critical to consider the AFTP’s
existing definitions in order to
understand the proposed allocations. As
discussed throughout this NOPR, if a
given vehicle type already qualifies as
an AFV, it is already eligible for full
credit under the existing AFTP. If the
vehicle is not an AFV, the focus shifts
to whether the specific vehicle type is
among the electric drive vehicles set
forth in EISA section 133 and for which
Congress directed DOE to determine a
specific credit level. Similarly, only
those investments that fit within the
definitions provided in this NOPR
would receive credit under the AFTP.
In addition to section 133, section
103(a) of EISA made changes to the
Energy Policy and Conservation Act’s
(EPCA, codified at 49 U.S.C. 32901–
32919) definitions of the terms
‘‘automobile’’ and ‘‘dual fueled
automobile.’’ These definitions are
included or referenced in subpart A of
the AFTP regulations.8 As part of the
amended statutory definition of
‘‘automobile,’’ EISA section 103(a)
introduced and defined a new term,
‘‘work truck.’’ DOE is proposing today
to adopt in subpart A these definitions
of ‘‘automobile’’ and ‘‘work truck,’’ to
revise several of the existing regulatory
definitions and provisions, and to delete
those that DOE believes are no longer
needed.
2. Additional Proposed Revisions
As indicated above, DOE also is
proposing today various modifications
to the existing AFTP that are unrelated
to EISA. These proposed modifications,
discussed more fully in Part V below,
include: Establishing a timeframe for the
submission of exemption requests;
requiring covered fleets to use their own
banked credits before requesting
exemptions; mandating that fleets
without sufficient AFV acquisitions,
biodiesel fuel use credits, or banked
credits to meet their compliance
requirements include in their annual
reports information about any efforts
they have made to acquire credits from
other fleets; and creating a single due
date for the submission of Alternative
Compliance waiver applications. Like
the existing regulations in 10 CFR part
490, the statutory basis for these
proposed modifications lies in Titles
III–V of EPAct 1992, as amended.
In section 707 of EPAct 2005,
Congress amended section 301(9)(E) of
EPAct 1992 to make clear that the
‘‘emergency motor vehicles’’ exclusion
8 See

10 CFR 490.2.

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from the term ‘‘fleet’’ includes ‘‘vehicles
directly used in the emergency repair of
transmission lines and in the restoration
of electricity service following power
outages, as determined by the
Secretary.’’ 9 DOE is proposing today to
revise the regulatory exclusion at 10
CFR 490.3(e) so that it is consistent with
this legislative amendment. DOE is also
proposing to incorporate in the
regulatory definition of ‘‘alternative
fuel’’ language pertaining to liquid fuels
domestically produced from natural gas,
which Congress added to the section
301 definition in 2000.10 Both of these
proposed changes would merely
implement the particular statutory
language modifications that Congress
made, and thus DOE considers these
proposed changes to be noncontroversial.
III. Key Definitions
This section of the NOPR discusses
the AFTP definitions, both existing and
newly proposed, that are key to DOE’s
proposed approach to the allocation of
credits under EISA section 133, as well
as the existing definitions that DOE is
proposing today to amend. The
rulemaking process associated with
today’s NOPR is intended to codify the
definitions set forth in EISA section 133
for purposes of the AFTP’s credit
program (Subpart F). As developed
pursuant to EPAct 1992, as amended,
compliance under the AFTP is
determined primarily through the
acquisition of AFVs.
A. Existing Definitions
1. Alternative Fuel
The definition of ‘‘alternative fuel’’ for
purposes of EPAct 1992 and its fleet
programs is provided in section 301(2)
of EPAct 1992, 11 and includes:
• Methanol, denatured ethanol, and
other alcohols;
• Mixtures containing 85 percent or
more by volume of methanol, denatured
ethanol, and other alcohols with
gasoline or other fuels (or such other
percentage, but not less than 70 percent,
as determined by the Secretary, by rule);
• Natural gas, including liquid fuels
domestically produced from natural gas;
• Liquefied petroleum gas;
• Hydrogen;
• Coal-derived liquid fuels;
• Fuels (other than alcohol) derived
from biological materials;
• Electricity (including electricity
from solar energy); and,
9 See

Pub. L. 109–58, section 707.
Pub. L. 106–554 App. D, Div. B, Title I,
section 122, as codified at 42 U.S.C. 13211(2).
11 42 U.S.C. 13211(2).
10 See

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• Any other fuel the Secretary
determines, by rule, is substantially not
petroleum and would yield substantial
energy security benefits and substantial
environmental benefits.
The corresponding AFTP definition of
‘‘alternative fuel’’ appears at 10 CFR
490.2. The explicit inclusion of
electricity as an alternative fuel is
particularly relevant to today’s proposal.
As indicated above, DOE is proposing
to add to the AFTP definition the phrase
‘‘including liquid fuels domestically
produced from natural gas,’’ which
Congress added to the statutory
definition in 2000.
2. Alternative Fueled Vehicle
As provided in section 301(3) of
EPAct 1992, an alternative fueled
vehicle ‘‘means a dedicated vehicle or a
dual fueled vehicle.’’ Thus, vehicles
acceptable for the AFTP (i.e., vehicles
that receive full credit under the AFTP)
must either be ‘‘dedicated vehicles,’’
which are vehicles that operate solely
on alternative fuel, or ‘‘dual fueled
vehicles,’’ which have some capability
for switching back and forth from
alternative fuel to conventional fuel
(such as a bi-fuel natural gas/gasoline
vehicle) or otherwise can operate on a
blend of alternative and conventional
fuels (such as flexible fuel vehicles).
Importantly, Congress has not added to
or otherwise modified the definition of
an AFV as it applies to SFP fleets since
its enactment in 1992.12
The corresponding AFTP definition of
an AFV appears at 10 CFR 490.2. When
DOE promulgated this regulatory
definition in 1996, it included language
clarifying that flexible fuel vehicles
(FFVs) are encompassed within the
definition, and also provided a separate
definition of the term ‘‘flexible fuel
vehicle.’’ DOE explained that it took the
latter definition from the Clean Fuel
Fleet Program regulations that the U.S.
Environmental Protection Agency (EPA)
issued under the Clean Air Act.13 The
National Highway Traffic Safety
Administration (NHTSA), the Federal
agency responsible for setting and
enforcing the Corporate Average Fuel
Economy (CAFE) standards under
EPCA, did not and still does not have
a regulatory definition of ‘‘flexible fuel
vehicle.’’ DOE has determined that the
12 Congress did, however, previously amend the
definition of AFV in the context of Federal fleets,
at section 2862 of the National Defense
Authorization Act for Fiscal Year 2008 (Pub. L.
110–181). See 147 153 Cong. Rec. S12355 (Oct. 1,
2007) (the ‘‘purpose’’ of section 2862 is ‘‘[t]o allow
additional types of vehicles to be used to meet
minimum Federal fleet requirements’’). The
amended definition does not apply to the AFTP and
SFP fleets regulated under it.
13 61 FR 10630–31.

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reference to FFVs in the AFTP
definition of ‘‘alternative fueled
vehicle’’ and the separate definition of
‘‘flexible fuel vehicle’’ are unnecessary,
principally because FFVs qualify as
‘‘dual fueled automobiles’’ under the
EPCA definition of that term (codified at
49 U.S.C. 32901(a)(9)). As recently as
September 2010, NHTSA confirmed that
FFVs ‘‘are considered ‘dual fueled
[automobiles]’ under [the] EPCA’’
meaning of that term.14 Because they are
dual fueled automobiles, FFVs are also
AFVs. Hence, DOE proposes to
streamline the AFTP definition of
‘‘alternative fueled vehicle’’ by deleting
the parenthetical reference to FFVs. For
the same reason, DOE also proposes to
delete the definition of ‘‘flexible fuel
vehicle,’’ as well as subsection (3) in the
AFTP definition of ‘‘dual fueled
vehicle.’’

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3. Automobile
Because the AFTP definitions of
‘‘dedicated vehicle’’ and ‘‘dual fueled
vehicle,’’ each of which is discussed in
more detail below, incorporate by
reference the term ‘‘automobile,’’ DOE
saw fit in its 1996 final rule to include
in 10 CFR 490.2 a definition of
‘‘automobile.’’ DOE noted that the AFTP
definition was ‘‘adapted from and * * *
intended to have the same meaning as
‘automobile’ defined in’’ 49 U.S.C.
32901(a)(3).15
EISA section 103(a) redefined the
term ‘‘automobile’’ to include fourwheeled on-road vehicles rated at less
than 10,000 pounds gross vehicle
weight. To maintain consistency with
the revised EPCA definition, DOE is
proposing to make similar amendments
to the AFTP definition of ‘‘automobile.’’
DOE stresses, though, that while the
proposed definition in 10 CFR 490.2
would contain an express gross vehicle
weight rating cutoff of less than 10,000
pounds, this revision would have no
substantive effect on the AFTP. In other
words, the AFTP would continue to be
a light duty motor vehicle program, with
a covered fleet’s light duty AFVacquisition requirement in a particular
model year hinging on the total number
of light duty motor vehicles the fleet
acquired during that model year. The
regulatory definition of ‘‘light duty
motor vehicle’’ would be unchanged,
i.e., an LDV would continue to be a light
duty truck or light duty vehicle with a
gross vehicle weight rating of 8,500
pounds or less, in accordance with

Section 301(11) of EPAct 1992 (42
U.S.C. Sec. 13211(11)).
Because EISA added a reference to
‘‘work truck’’ in the definition of
‘‘automobile,’’ the proposed AFTP
definition of ‘‘automobile’’ will also
include a reference to the term ‘‘work
truck.’’ DOE is therefore also proposing
to add a new definition of this term in
the regulations, consistent with the
EISA section 103(a) definition of ‘‘work
truck’’ as a vehicle between 8,500 and
10,000 pounds gross vehicle weight that
is not a medium-duty passenger vehicle.
The addition of this definition would
not represent a shift from the LDV focus
of the AFTP.
4. Dedicated Vehicle
The AFTP regulations at 10 CFR 490.2
currently define the term ‘‘dedicated
vehicle’’ to mean:
(1) An automobile that operates solely
on alternative fuel; or
(2) A motor vehicle, other than an
automobile, that operates solely on
alternative fuel.16
For example, a pure (e.g., battery)
electric vehicle (EV) is considered a
dedicated vehicle and hence an AFV, as
defined above, because electricity, the
only fuel on which the vehicle operates,
is within the definition of alternative
fuel. A hybrid electric vehicle (HEV)
that has an engine that operates solely
on alternative fuel (e.g., compressed
natural gas (CNG)) also would be
considered a dedicated vehicle under
the AFTP, and thus an AFV. DOE
anticipates that such a vehicle may
enter the marketplace in the not too
distant future.
DOE is proposing to make one minor
change to the existing definition of
‘‘dedicated vehicle.’’ DOE believes it is
appropriate to address the future
possibility that certain vehicles may
operate exclusively on more than one
alternative fuel. DOE proposes to do this
by amending the definition so that it
states ‘‘operates solely on one or more
alternative fuels.’’ DOE believes this
revision is non-controversial.
5. Dual Fueled Vehicle
The AFTP regulations at 10 CFR 490.2
currently define the term ‘‘dual fueled
vehicle’’ to mean:
(1) An automobile that meets the
criteria for a dual fueled automobile, as
that term is defined in section
513(h)(1)(C) of the Motor Vehicle
Information and Cost Savings Act, 49
U.S.C. 32901(a)(8); or

(2) A motor vehicle, other than an
automobile, that is capable of operating
on alternative fuel and on gasoline or
diesel; or
(3) A flexible fuel vehicle.
As discussed in Part III.A.2 above,
DOE is proposing to delete subsection
(3) on the grounds that it is no longer
necessary.
In promulgating the dual fueled
vehicle definition in 1996, DOE
neglected to point out that Congress had
revised and recodified the Motor
Vehicle Information and Cost Savings
Act (MVICSA) ‘‘without substantive
change’’ on July 5, 1994.17 Nevertheless,
DOE did cite to the correct U.S.C.
provision containing the definition of
‘‘dual fueled automobile,’’ 49 U.S.C.
32901(a)(8). As a result of a change set
forth in EISA section 103(a), this
statutory definition now appears in 49
U.S.C. 32901(a)(9).
DOE is proposing to amend the AFTP
definition of dual fueled vehicle in
accordance with the above. The
amended definition would read as
follows:
(1) An automobile that meets the
criteria for a dual fueled automobile as
set forth in 49 U.S.C. 32901(a)(9), or
(2) A motor vehicle, other than an
automobile, that is capable of operating
on alternative fuel and on gasoline or
diesel.
DOE also takes this opportunity to
note that it has always interpreted the
definition of dual fueled vehicle in the
context of NHTSA’s minimum driving
range criteria for dual fueled
automobiles. Under those criteria, for a
passenger automobile to be considered a
dual fueled automobile, it must be able
to drive at least 200 miles when
operating on the alternative fuel; for a
dual fueled electric passenger
automobile, the automobile must be able
to operate on a full EPA urban test cycle
and a full EPA highway test cycle on
electricity alone, which means it must
meet all speed and acceleration
requirements over a total of 17.7
miles.18 Only motor vehicles that meet
these minimum driving range criteria
qualify as dual fueled vehicles and
hence are considered AFVs under the
current AFTP definition.
Although it has not been problematic
to date, the dual fueled vehicle
determination may become more
complicated as plug-in hybrid electric
vehicles (PHEV) are commercialized
(see Part IV.B.2 below). Except in those
17 See

14 75

FR 58078, 58111 (Sept. 23, 2010); See also
75 FR 25324, 25665 (May 7, 2010); 76 FR 39478,
39499 (July 6, 2011).
15 61 FR 10622, 10630.

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16 In

addition to ‘‘automobile,’’ as discussed in
the text above, section 490.2 of the Program
regulations also provides a definition of the term
‘‘motor vehicle.’’ See 10 CFR 490.2.

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Pub. L. 103–272, §§ 1(a), 6(a).
CFR 538.5 and 538.6. The test cycles consist
of 7.5 miles of urban driving and 10.2 miles of
highway driving, with charging allowed prior to
each test.
18 49

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instances in which it is clear to DOE
that a vehicle is equipped with an
engine that can operate on both
petroleum and liquid or gaseous
alternative fuel, DOE would look to
NHTSA, meaning that if NHTSA
considers a particular automobile or
motor vehicle to be dual fueled under
EPCA (i.e., for CAFE purposes), then
DOE would treat the vehicle as a dual
fueled vehicle and hence an AFV under
the AFTP.
6. Electric Motor Vehicle and ElectricHybrid Vehicle

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In its 1996 final rule, DOE adopted in
10 CFR 490.2 the definitions of the
terms ‘‘electric motor vehicle’’ and
‘‘electric-hybrid vehicle’’ located in
section 601 of EPAct 1992 (42 U.S.C.
13271). This was necessitated by the
fact that section 501(c) of EPAct 1992,
which directed DOE to establish an
option for electric utilities, referred
specifically to ‘‘electric motor vehicles.’’
The electric utility option is contained
in 10 CFR 490.307.
Because the electric utility option was
time limited and the period for the
option has long since passed, DOE is
proposing to delete section 490.307
from the AFTP regulations and
renumber the remaining provisions in
Subpart D. Correspondingly, DOE is
proposing to remove the ‘‘electric motor
vehicle’’ and ‘‘electric-hybrid vehicle’’
definitions because they would be
extraneous in the absence of the electric
utility option. DOE, which believes

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these amendments would not have a
major impact, solicits comments on
them.
7. Section 133—Identified Vehicles That
Already Qualify as AFVs
Of the electric drive vehicle types
identified in EISA section 133, several
already qualify as AFVs and, for that
reason, already are entitled to one full
credit under the AFTP. As discussed
below, these include certain HEVs,
PHEVs, and fuel cell electric vehicles
(FCEVs), light duty battery electric
vehicles, and medium- or heavy-duty
battery electric vehicles. For such
vehicles, there is no need for DOE to
address the allocation of credit in this
NOPR—if and when acquired by
covered fleets, these vehicles already are
entitled to one AFV-acquisition credit
because the vehicles already qualify as
AFVs (although in the case of mediumor heavy-duty vehicles, the covered fleet
first must meet its light duty AFVacquisition requirement).
An HEV or PHEV whose engine is
capable of operating on alternative fuel
(such as E85) is either a dual fueled
vehicle (if the engine can operate on
alternative fuel and on gasoline or
diesel) or a dedicated vehicle (if the
engine operates solely on alternative
fuel), and, consequently, already an
AFV. To date, though, DOE is aware of
only a small number of flexible fuel
HEVs (e.g., Ford Escapes) that have been
built for demonstration purposes.
Likewise, a PHEV with a conventional

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gasoline engine would be a dual fueled
vehicle and therefore already an AFV
under the AFTP if it were to qualify as
a dual fueled electric automobile under
the applicable NHTSA criteria. DOE
notes, though, that not all PHEVs are
expected to meet the minimum driving
range criteria for dual fueled
automobiles under 49 U.S.C.
32901(a)(9).19
With respect to the HEVs currently on
the market, DOE takes this opportunity
to reiterate that it provides no credit
under Standard Compliance because
none of these vehicles qualify as AFVs.
Equipped with gasoline-only engines,
HEVs available to date ‘‘obtain their
electric power from their onboard
conventional gasoline engine and
energy captured through regenerative
braking.’’ 20 Because they cannot operate
without gasoline, these vehicles are not
dedicated vehicles. Nor do they qualify
as dual fueled vehicles, either as that
term is presently defined or as it would
be redefined under this NOPR. Contrary
to what is required by the word
‘‘fueled,’’ the electricity that can propel
the vehicle at low speeds for short
distances does not emanate from an offboard source (e.g., the electric grid).
Figure 1 below depicts the HEVs and
PHEVs that already qualify as AFVs and
those HEVs and PHEVs for which credit
would be allocated under this NOPR.
19 See 75 FR 58078, 58104 (Sept. 23, 2010); 76 FR
39478, 39480, 39502–04 (July 6, 2011).
20 Id. at 58087 n.45.

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FCEVs, as discussed more fully in
Parts III.B.1 and IV.B.3 below, use a
‘‘fuel cell,’’ which typically is fueled by
hydrogen, an alternative fuel, but which
can also be fueled by a petroleum fuel
(e.g., gasoline or diesel). An FCEV that
operates on alternative fuel is either a
dedicated vehicle (if the FCEV’s fuel
cell is fueled solely by alternative fuel)
or a dual fueled vehicle (if the FCEV’s
fuel cell can be fueled by alternative
fuel and by gasoline or diesel fuel) and,
consequently, already an AFV eligible
for one credit under the AFTP. FCEVs
that are not AFVs would be allocated
credit under today’s NOPR.
Battery electric vehicles are already
considered AFVs under section 301 of
EPAct 1992 by virtue of electricity’s
inclusion within the definition of
alternative fuel. Hence, when acquired
by covered fleets, they, too, are already
eligible for full AFV-acquisition credit
under the AFTP. Finally, medium- or
heavy-duty battery electric vehicles
already are entitled to one credit under
the creditable action provisions of 10
CFR 490.502 because they, too, already
qualify as AFVs.

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In sum, the following qualify as AFVs:
(1) HEVs and PHEVs with an engine that
operates solely on alternative fuel or one
that can operate on alternative fuel and
on gasoline or diesel; (2) PHEVs that
meet the NHTSA minimum driving
range criteria and thus qualify as dual
fueled electric automobiles; (3) FCEVs
that operate solely on alternative fuel or
on alternative fuel and on gasoline or
diesel; (4) light duty battery electric
vehicles; and (5) medium- or heavy-duty
battery electric vehicles. As a result,
these vehicles already are entitled to
one credit under the AFTP, although in
the case of medium- or heavy-duty
AFVs, they are not entitled to credit
until the fleet has met it light duty AFVacquisition requirement.
B. New Definitions: EISA Section 133
Vehicles and Actions
DOE is proposing definitions of key
terms for purposes of Subpart F of the
AFTP regulations, in accordance with
the definitions within EISA section 133,
as described in the paragraphs that
follow.

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1. Fuel Cell Electric Vehicle
A ‘‘fuel cell electric vehicle’’ is
defined for purposes of section 508 of
EPAct 1992, as amended, as an ‘‘on-road
or non-road vehicle that uses a fuel cell
(as defined in section 803 of the Spark
M. Matsunaga Hydrogen Act of 2005 (42
U.S.C. 16152)).’’ Section 803 of the
Hydrogen Act of 2005 defines ‘‘fuel
cell’’ as a ‘‘device that directly converts
the chemical energy of a fuel, which is
supplied from an external source, and
an oxidant into electricity by
electrochemical processes occurring at
separate electrodes in the device.’’
Typically, FCEVs are actually fuel cell
hybrid vehicles that include some form
of electric storage medium (such as
batteries) to allow for better matching of
vehicle generation capabilities to
performance demand. Most FCEVs
currently under development are fueled
by hydrogen, either in compressed or
liquefied form, but some that have been
developed use onboard reformers to
allow fueling with other fuels (e.g.,
petroleum fuels). DOE is proposing to
adopt the definition of ‘‘fuel cell electric

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vehicle’’ in Subpart F of the AFTP
regulations, but substituting the defined
term ‘‘motor vehicle’’ in place of the
term ‘‘on-road.’’ 21

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2. Hybrid Electric Vehicle
EISA defines a ‘‘hybrid electric
vehicle’’ for purposes of section 508 of
EPAct 1992, as amended, as a ‘‘new
qualified hybrid motor vehicle (as
defined in section 30B(d)(3) of the
Internal Revenue Code of 1986).’’
Section 30B(d)(3) of the Internal
Revenue Code (IRC) (26 U.S.C. Sec.
30B(d)(3)) defines ‘‘new qualified
hybrid motor vehicle’’ and sets specific
conditions for purposes of meeting this
definition, including that a motor
vehicle be one that ‘‘draws propulsion
energy from onboard sources of stored
energy which are both an internal
combustion or heat engine using
consumable fuel and a rechargeable
energy storage system’’ and has a
maximum available power of a set
minimum amount. In the case of a light
duty vehicle, the vehicle also must be
one that ‘‘has received a certificate of
conformity under the Clean Air Act and
meets or exceeds the [applicable]
equivalent qualifying California low
emission vehicle standard under section
243(e)(2) of the Clean Air Act’’ as well
as ‘‘the [applicable] emission standard
[established by EPA] under section
202(i) of the Clean Air Act,’’ among
other conditions.22 In the case of a
vehicle with a gross vehicle weight
rating of more than 8,500 pounds, the
vehicle also must be one that ‘‘has an
internal combustion engine which has
received a certificate of conformity
under the Clean Air Act as meeting the
emission standards set [by EPA for]
diesel heavy duty engines or ottocycle
heavy duty engines,’’ among other
conditions.23
DOE is proposing today to adopt the
EISA definition of ‘‘hybrid electric
vehicle’’ in Subpart F of the AFTP
regulations.24
21 DOE notes that this definition is not identical
to the definition of ‘‘fuel cell vehicle’’ that EPA
promulgated as part of its light duty vehicle
greenhouse gas emission standards under the Clean
Air Act. See 75 FR 25324, 25684 (May 7, 2010).
DOE, however, is constrained by the statutory
definition set forth in EISA section 133.
22 See generally Internal Revenue Service, Notice
2006–9—Credit for New Qualified Alternative
Motor Vehicles (Advanced Lean Burn Technology
Motor Vehicles and Qualified Hybrid Motor
Vehicles), available at http://www.irs.gov/irb/200606_IRB/ar11.html.
23 See generally Internal Revenue Service, Notice
2007–23—Credit for New Qualified Heavy-Duty
Hybrid Motor Vehicles, available at http://
www.irs.gov/irb/2007-23_IRB/ar08.html.
24 DOE notes that this definition is not identical
to the HEV definition that EPA promulgated as part
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3. Medium- or Heavy-Duty Electric
Vehicle
EISA defines a ‘‘medium- or heavyduty electric vehicle’’ for purposes of
section 508 of EPAct 1992, as amended,
as ‘‘an electric, hybrid electric, or plugin hybrid electric vehicle with a gross
vehicle weight of more than 8,501
pounds.’’ For the purposes of
consistency with EPAct 1992 section
301(11), which defines a light duty
motor vehicle as 8,500 pounds or less,
DOE proposes to modify EISA’s
definition of medium- or heavy-duty
electric vehicle to ‘‘an electric, hybrid
electric, or plug-in hybrid electric
vehicle with a gross vehicle weight
rating of more than 8,500 pounds.’’ 25
4. Neighborhood Electric Vehicle
EISA defines a ‘‘neighborhood electric
vehicle’’ for purposes of section 508 of
EPAct 1992, as amended, as ‘‘a
4-wheeled on-road or nonroad vehicle
that—(A) has a top attainable speed in
1 mile of more than 20 mph and not
more than 25 mph on a paved level
surface; and (B) is propelled by an
electric motor and [an] on-board,
rechargeable energy storage system that
is rechargeable using an off-board
source of electricity.’’ DOE is proposing
today to adopt this statutory definition.
5. Plug-In Electric Drive Vehicle
EISA defines a ‘‘plug-in electric drive
vehicle’’ for purposes of section 508 of
EPAct 1992, as amended, as ‘‘a vehicle
that (A) draws motive power from a
battery with a capacity of at least 4
kilowatt-hours; (B) can be recharged
from an external source of electricity for
motive power; and (C) is a light-,
medium-, or heavy duty motor vehicle
or nonroad vehicle (as those terms are
defined in section 216 of the Clean Air
Act (42 U.S.C. 7550)).’’ Section 216 of
the Clean Air Act defines the term
‘‘motor vehicle’’ to mean ‘‘any selfpropelled vehicle designed for
transporting persons or property on a
street or highway,’’ and it defines
‘‘nonroad vehicle’’ as a vehicle that is
‘‘powered by a nonroad engine and that
standards under the Clean Air Act. See 75 FR
25324, 25684 (May 7, 2010). DOE, however, is
constrained by the statutory definition set forth in
EISA section 133.
25 In EISA section 133, Congress provided a
definition of ‘‘hybrid electric vehicle’’ (see Part
III.B.2 above), but not of the terms ‘‘electric vehicle’’
and ‘‘plug-in hybrid electric vehicle,’’ both of which
appear in the definition of a ‘‘medium- or heavyduty electric vehicle.’’ With respect to ‘‘plug-in
hybrid electric vehicle,’’ DOE proposes that PHEVs
may be considered a type of ‘‘plug-in electric drive
vehicle’’ (see Part III.B. 5 below). As for the term
‘‘electric vehicle,’’ DOE would interpret this term to
mean a vehicle that operates solely on electricity
(i.e., a battery electric vehicle).

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is not a motor vehicle or a vehicle used
solely for competition.’’ DOE is
proposing today to adopt EISA’s
definition of plug-in electric drive
vehicle.
There are two primary forms of plugin electric drive vehicles—dedicated
EVs (e.g., battery electric vehicles) and
PHEVs, assuming they have a minimum
battery capacity of four kilowatthours.26 For the purposes of this
rulemaking, PHEVs are considered
similar in many cases to today’s
available HEVs, but PHEVs include
greater electric storage capacity (and
thus more/larger batteries) than HEVs,
possess the capability to recharge their
electric storage system by ‘‘plugging in’’
to the grid, and often have some
duration of electric-only operation. DOE
considers a PHEV to be a dual fueled
vehicle if it is able to complete the EPA
urban and highway test cycles on
electricity alone.
6. Alternative Fuel Infrastructure
EISA section 133 provides no
definition of the term ‘‘alternative fuel
infrastructure,’’ merely indicating that
DOE should allocate credits for
‘‘investment in qualified alternative fuel
infrastructure * * * as determined by
the Secretary.’’
Section 179A(d) of the Internal
Revenue Code (26 U.S.C. 179A(d))
defines a similar phrase, ‘‘qualified
clean-fuel vehicle refueling property,’’
to mean a property that is:
(A) For the storage or dispensing of a cleanburning fuel into the fuel tank of a motor
vehicle propelled by such fuel, but only if the
storage or dispensing of the fuel is at the
point where such fuel is delivered into the
fuel tank of the motor vehicle, or
(B) for the recharging of motor vehicles
propelled by electricity, but only if the
property is located at the point where the
motor vehicles are recharged.27

DOE proposes to base the definition of
the term ‘‘alternative fuel
infrastructure’’ on the Internal Revenue
Code definition of ‘‘qualified clean-fuel
vehicle refueling property,’’ clarifying
the language, however, regarding the
requirement that fueling take place
where the infrastructure is located.
In short, ‘‘alternative fuel
infrastructure’’ would mean one or more
alterative fueling stations or one or more
charging or battery exchange stations for
EISA section 133-specified electric drive
vehicles.
26 DOE expects that all PHEVs will have a battery
capacity of at least four kilowatt-hours, because that
is the minimum battery capacity needed for a
vehicle to qualify for the $7,500 Federal tax credit
for new qualified plug-in electric drive motor
vehicles. See 26 U.S.C. 30D(d)(1)(F)(i).
27 26 U.S.C. 179A(d)(3).

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7. Alternative Fuel Nonroad Equipment
Similarly, EISA section 133 provides
no definition of the term ‘‘alternative
fuel nonroad equipment.’’ Congress
simply instructed DOE to allocate
credits for ‘‘investment in qualified
alternative fuel * * * nonroad
equipment, as determined by the
Secretary.’’ Therefore, DOE must
determine the types of alternative fuel
nonroad equipment that would qualify
for Program credit within the context of
section 133’s overall objectives.
DOE proposes to consider as eligible
for credit only alternative fuel nonroad
equipment that is mobile, such as
mobile cargo and material handling
equipment (e.g., forklifts) and mobile
farm or construction equipment (e.g.,
tractors, bulldozers, backhoes, front-end
loaders, rollers/compactors). A fleet
requesting credit would have to certify
that the equipment is being operated on
alternative fuel, within the constraints
of best practices or seasonal fuel
availability. DOE requests comments on
this point. Consistent with the
Program’s focus on vehicle acquisitions,
no stationary non-road equipment
would qualify for credit.
8. Emerging Technology
EISA section 133 likewise provides no
definition of the term ‘‘emerging
technology,’’ although, as discussed in
more detail in Part IV.C.3 of this NOPR,
the statute explicitly requires that such
technology ‘‘relat[e] to’’ at least one of
the five vehicle types described earlier
in the provision. Based on its
experience in deploying advanced
technologies, DOE proposes to interpret
the term ‘‘emerging technology’’ to
mean pre-production or precommercially-available vehicles of the
five types described in section 133. DOE
believes that once these vehicle
technologies reach the point of being
mass produced or commercially
available and thus are beyond the stage
of demonstration or initial data
collection, the provision of any
investment credit under section 508 of
EPAct 1992 would be inappropriate
inasmuch as acquisition credit would
then be warranted (see Part IV.C.3
below). DOE requests comments from
stakeholders on whether drawing a
distinction between pre-production and
commercially available in the context of
the definition of ‘‘emerging technology’’
is sufficient and appropriate.
IV. Proposed Allocation of Credit
A. General Basis for Allocations
As described in Part I of this NOPR,
the EPAct 1992 fleet programs use
centrally-fueled fleets as launching pads

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for AFV technologies to encourage the
growth of alternative fuel infrastructure.
Through EISA section 133, Congress has
expanded the range of vehicles that may
earn AFV-acquisition credits under the
Standard Compliance path of the AFTP.
Congress has directed DOE, and DOE is
today proposing, to allocate credit
values for those section 133-specified
vehicles that do not already qualify as
AFVs.
EPAct 1992 Title V and the AFTP are
designed to encourage the replacement
of petroleum fuels with non-petroleum
fuels, through the use of AFVs. In
implementing the EPAct 1992 program
for SFP fleets, DOE has maintained an
approach that focuses primarily on the
petroleum replacement capability of
vehicles subject to the program. For
these reasons, DOE is proposing to
allocate only partial credit to those
section 133-identified electric drive
vehicles that do not already qualify as
AFVs, such as HEVs with an internal
combustion engine that operates solely
on conventional petroleum fuels.
For those electric drive vehicles
identified in section 133 that previously
qualified as ‘‘alternative fueled
vehicles,’’ based on their status as either
dedicated vehicles or dual fueled
vehicles, full AFV-acquisition credit is
already warranted under the AFTP. No
further discussion of these vehicles is
needed.
DOE believes that non-AFVs should
not receive as much credit as AFVs, but
rather should receive only partial credit
because they do not have as significant
an effect on petroleum replacement as
do AFVs. For example, consider an HEV
that is not an AFV; even if the vehicle
achieves twice the efficiency of a
comparable vehicle, the vehicle itself is
only reducing petroleum consumption
by one half, whereas an AFV has the
potential to decrease petroleum
consumption in full if it is operated
solely on alternative fuel. Further, fleets
that seek credit for non-AFVs are
encouraged to use the AFTP’s
Alternative Compliance option, which
allows extensive use of various
technologies including higher efficiency
vehicles, all toward achieving
compliance with the AFTP.
In today’s notice, DOE also proposes
to allocate credits for investments by
covered fleets in qualified alternative
fuel infrastructure (e.g., fueling
stations), alternative fuel nonroad
equipment (e.g., mobile construction or
material/cargo handling equipment),
and emerging technologies (e.g., preproduction vehicles), with 1 credit to be
earned for every $25,000 invested.
Within each category, the number of
investment credits would be capped at

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5 credits in a single model year,
although for alternative fuel
infrastructure investments, the cap
would be 10 credits in a single model
year when the infrastructure at issue is
publicly accessible rather than private.
This higher cap for publicly-accessible
infrastructure is being proposed to
provide a somewhat greater incentive
for those investments that DOE believes
would make alternative fuel
infrastructure more widely available.
DOE maintains that this is a key to
increasing petroleum substitution, in
accordance with EPAct 1992’s purposes
(as implemented through Titles III
through V). Congress, in EISA section
133, imposed a five-credit cap on
investments in emerging technologies,
and DOE believes for reasons of
administrative consistency that a
comparable credit cap should likewise
be placed on the other types of
creditable investments. Moreover, DOE
is of the view that placing a cap on
investments in alternative fuel
infrastructure and nonroad equipment
would help to limit the degree to which
the AFTP’s existing surplus of banked
credits grows in the future (see Part V.B
below).
DOE is proposing that for the purpose
of calculating the number of credits
earned, fleets should be allowed to
aggregate dollar amounts spent in the
areas of alternative fuel infrastructure,
alternative fuel nonroad equipment, and
emerging technology. DOE also
proposes the following limitation: that
such aggregation be allowed only to the
extent that additional funds from a
category for which the fleet has already
earned the maximum number of credits
may not be used to increase the number
of credits earned in another category.
For example, a fleet that spends $40,000
on alternative fuel nonroad equipment
and $60,000 on emerging technology
may aggregate the funds to total
$100,000 and claim 2 credits for
alternative fuel nonroad equipment and
2 credits for emerging technology. In
another example demonstrating the
proposed limitation, a fleet that spends
$45,000 on alternative fuel nonroad
equipment and $130,000 on emerging
technology may tally 5 credits for
emerging technology and 1 credit for
nonroad equipment; the $5,000 spent on
emerging technology beyond the cap of
$125,000 cap applicable to emerging
technology investment credits may not
be used to increase the amount of funds
and hence the number of credits earned
overall by combining with the
investment in the alternative fuel
nonroad equipment category. In other
words, there is a ceiling on the amount

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of funds spent in one category that may
be used to increase the number of
credits earned in the second or third
category. This limitation is necessary to
ensure a cap on the number of credits
that may be earned for funds spent in
any one of the three categories. DOE
considered not allowing aggregation of
amounts spent. Because DOE is not
allowing fractional credits for amounts
lower than $25,000 spent in any one of
the categories, DOE hopes that the
proposed approach may be viewed as a
reward for addressing the need for
additional deployment in these
categories. DOE welcomes comments on
the proposed approach.
DOE is proposing that when fleets
report to DOE the total credits they have
earned in a model year (i.e., the total of
AFV-acquisition and relevant
investment credits), fleets should total
the credits, including all fractional
credits, and then round that aggregate
figure to the nearest whole number. This
rounding approach is discussed further
in Part VI.A below.
B. Electric Drive Vehicles
EISA specifies several types of vehicle
technologies for which DOE must
determine the amount of credit each is
to be allocated under the AFTP credit
program.
1. Hybrid Electric Vehicles (HEVs)

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Currently available HEVs have a
conventional gasoline engine and an
electric motor that provides a boost or
otherwise provides only some motive
force. As indicated above, because they
are neither dedicated vehicles nor dual
fueled vehicles, they have not
previously qualified for credit under the
AFTP. Current HEVs simply offer higher
efficiency than conventionally-fueled
vehicles, as represented by mile per
gallon (mpg) ratings.
Under the Alternative Compliance
option, fleets can comply by using HEVs
to help meet their petroleum reduction
requirement. For more information on
HEVs and Alternative Compliance, see
http://www1.eere.energy.gov/
vehiclesandfuels/epact/pdfs/alt_
compliance_guide.pdf or the final rule
for Alternative Compliance at 72 FR
12958 (March 20, 2007).

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HEVs that are not AFVs because they
lack an alternative fuel (e.g., E85)capable engine would receive 1⁄2 credit
under today’s proposed rule, rather than
the full credit that dedicated and dual
fueled vehicles already receive.28 DOE’s
proposal to allocate 1⁄2 credit is based on
the petroleum replacement potential of
these vehicles, as well as their energy
efficiency (i.e., fuel economy), which
effectively dictates their petroleum
replacement potential.
DOE assumed the same annual usage
(i.e., miles driven per year) for an HEV
and a conventional vehicle. For the vast
majority of HEVs (other than PHEVs, as
described below), the fuel economy
improvement that each HEV model
achieves versus a conventional vehicle
model is limited. DOE examined the
efficiency gains and believes that most
HEVs generate efficiency gains that
would suggest that DOE propose a lower
credit value, on the order of 1⁄4 credit or
less in some instances. Some HEV
models, in fact, achieve fuel economy
barely greater than conventional
internal combustion engine versions of
the same model, while other HEV
models actually achieve lower fuel
economy than the most fuel efficient
models in the same size class.
Still other HEVs, however, do achieve
a considerably higher efficiency than
the most fuel efficient conventional
models in the same EPA size class. The
most notable of these HEVs are the 2011
Toyota Prius, Mercury Milan Hybrid
FWD, and Ford Fusion Hybrid FWD,
which are the most fuel efficient
midsize HEVs on the market. According
to the 2011 Fuel Economy Guide
(available at http://
www.fueleconomy.gov), the Prius
achieves 50 mpg ‘‘combined’’ (i.e., city/
highway) while the Mercury Milan and
Ford Fusion Hybrids each achieve 39
28 Note that in order to give meaning to the EISA
section 133 amendments, covered fleets would earn
credits for light duty HEVs under this proposed rule
even if they have not yet met their light duty AFV
acquisition requirements. While each light duty
HEV purchase would increase the fleet’s acquisition
requirements as a covered LDV purchase at a faster
rate than it would offset such requirements, the rule
would provide the concomitant benefit of providing
immediately available credits. If the rule were to
only allow the allocation of credits once the AFV
acquisition requirements had been met, an HEV
purchase would afford no compliance benefit.

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mpg combined. These three models,
which together average almost 43 mpg
combined, use an average of 2.4 gallons
combined (city/highway) to travel 100
miles. This compares to the average of
31 mpg combined, translating into an
average 3.2 gallons combined to travel
100 miles, achieved by the top three
conventional midsize automatic cars,
the Hyundai Elantra (33 mpg
combined), Nissan Versa (30 mpg
combined), and Kia Forte Eco (30 mpg
combined). In view of this
approximately 39% fuel economy
improvement and 25% fuel reduction,
DOE has opted to allocate 1⁄2 credit to
all HEVs.
DOE specifically considered
proposing a higher credit value for those
HEVs that do provide significant
efficiency gains and lower values for
those HEVs with comparatively smaller
efficiency gains, with the increments of
credits being 0 (0 to 25% efficiency
gains when compared with the most
efficient conventional vehicles in their
size class), 1⁄4 (25% to 50% efficiency
gains), and 1⁄2 (over 50% efficiency
gains). In the end, though, DOE believes
that a single credit value for all HEVs
would be most manageable from an
administrative standpoint and
represents an approximation of the
petroleum reduction of the average
hybrid electric vehicle. Although the
petroleum displacement achieved by the
most efficient midsize HEVs, when
compared to the most efficient
conventional midsize cars, suggests a
credit value closer to 1⁄3, to provide an
incentive for fleets to acquire HEVs,
DOE believes 1⁄2 credit for all non-AFV
HEVs is warranted. While certain
vehicles may therefore earn credit out of
proportion to their petroleum savings,
1⁄2 credit would still be appropriate
given the AFTP’s goal of having fleets
serve both as launching pads for new
technologies and as entities seeking to
achieve petroleum consumption
reductions. In addition, it also is
anticipated that as hybrid technologies
develop, the efficiency of these vehicles
should increase.
Figure 2 below provides the credit
allocation determination process for
HEVs.

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2. Plug-In Electric Drive Vehicles
Battery electric vehicles are already
entitled to a full credit, as they qualify
as dedicated vehicles and, hence,
alternative fueled vehicles under EPAct
1992 section 301.
Because all PHEVs are expected to
have at least a 4 kilowatt-hour battery,
they would qualify as plug-in electric
drive vehicles under section 133. Like
HEVs, however, PHEVs are anticipated
to operate on both electricity and either
conventional petroleum fuel or
alternative fuel. PHEVs typically have
more electrical storage capacity onboard
than HEVs, to allow for more significant
operation on battery power alone.
PHEVs differ from other HEVs, however,
in that they are designed to operate in
part on electric power obtained from offboard sources. For example, for a
PHEV20 (20-mile electric-only range), if
the operator’s average daily use is 40
miles, half of the vehicle’s operation
could be supplied by electricity
assuming no daytime charging. PHEVs
may also hold special promise to
enhance fuel efficiency gains over

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conventional vehicles and enable the
use of renewable energy in either
centralized or distributed power
generating systems. Thus, PHEVs could
contribute substantially both to
reducing petroleum use and reducing
the associated generation of greenhouse
gases. DOE invites public comments on
each of these points.
PHEVs that do not already qualify as
AFVs, because they are not equipped
with an engine that is capable of
operating (or one that operates solely)
on alternative fuel, nor able to meet the
NHTSA criteria for a dual fueled electric
automobile, would be treated under this
proposed rule in the same manner as
HEVs, meaning their acquisition by a
covered fleet would result in 1⁄2 credit.
In addition to commercially available
PHEVs, several organizations currently
perform conversions. To qualify for
credit under the AFTP, any such
conversion must be completed within
four months of the vehicle’s acquisition
under 10 CFR 490.202(c) for states and
10 CFR 490.305(c) for alternative fuel
providers.

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DOE’s rationale behind allocating to
non-AFV PHEVs the same credit value
that would be allocated to non-AFV
HEVs, 1⁄2 credit, is that both sets of
vehicles are non-AFVs and, further,
efficiency gains offered by the former
vehicles versus the latter vehicles are
relatively small and do not justify
disparate treatment. DOE invites
comments from stakeholders on this
equal treatment approach, and
emphasizes that where a commenter
believes that a non-AFV PHEV should
be allocated more credit than a non-AFV
HEV, the commenter should include in
its comments a sufficiently detailed
explanation, ideally supported by
relevant data, articulating why a nonAFV PHEV deserves more credit than a
non-AFV HEV.
Figure 2 in section 1 above depicts the
credit allocation determination process
for PHEVs.
3. Fuel Cell Electric Vehicles (FCEVs)
FCEVs with fuel cells that can be
powered by hydrogen or some other
alternative fuel already qualify as AFVs

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and thus already are eligible for full
credit under the AFTP. To DOE’s
knowledge, the majority of FCEVs under
development are fueled by hydrogen,
but DOE cannot dismiss the possibility
of a non-alternative fuel-based FCEV
one day reaching the market. As a
result, DOE is required by EISA section
133 to establish a credit value for nonAFV FCEVs.
DOE proposes to treat FCEVs that are
neither dedicated vehicles nor dual
fueled vehicles in the same manner as
non-AFV HEVs and PHEVs and allocate
them 1⁄2 credit. This determination is
based on the fact that current AFV
FCEVs typically offer significant
efficiency gains over conventional
vehicles, but non-AFV FCEVs, while
offering similar efficiency gains, would
not displace as much petroleum as an
AFV operating solely on alternative fuel.
DOE solicits comments on this proposed
allocation level, and advises
stakeholders who believe that more than
1⁄2 credit is warranted to provide
specific data in support of their position
that FCEVs powered solely by nonalternative fuel (e.g., gasoline or diesel
fuel) deserve a higher credit value.
Figure 2 in section 1 above depicts the
credit allocation determination process
for FCEVs.
4. Neighborhood Electric Vehicles
(NEVs)

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Most commonly-available NEVs have
been produced as a type of low-speed
vehicle, limited to a top speed of
between 20 and 25 mph. NEVs are
typically used for driving short
distances on low-speed streets or on
campus-like sites (such as schools or
power plants). NEVs functionally
substitute for only some of the activities
for which conventional vehicles are
used, and in part serve as substitutes for
walking or bicycling.29 In many areas,
NEVs are not able to be licensed for use
on public roads. Even in the
jurisdictions where they may be
licensed, they typically are limited to
streets with speed limits of 35 mph or
less and can never be driven on
highways. To date, the AFTP has treated
NEVs, which do not fall under the Clean
Air Act section 216(2) definition of
29 A 2001 DOE study showed that, of the 348 fleet
NEVs studied, only 18 NEVs had been acquired to
replace previous on-road vehicles, though some of
the other NEVs might also have been acquired in
lieu of new on-road vehicles (i.e., fleet expansion).
The 348 NEVs were driven an average of 9 miles
per day. See Idaho National Engineering and
Environmental Laboratory, Field Operations
Program—Neighborhood Electric Vehicle Fleet Use
(July 2001) (INEEL Study), at 4, available at http://
avt.inel.gov/pdf/nev/nevstudy.pdf.

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‘‘motor vehicles’’ as interpreted by
EPA,30 as ineligible for credit as AFVs.
In a 2001 study, DOE found that NEVs
are driven an average of 3,410 miles per
year.31 This compares to the average
annual use of light duty household
vehicles in the U.S. in 2009 of 10,100
miles per year.32 For light duty business
fleet vehicles, however, average annual
use in 2008 ranged from 22,968 to
28,020 miles.33 Therefore, the use of
NEVs substitutes for a small percentage
of conventional vehicles’ applications.
While NEVs might serve well as
substitutes for motor vehicles in some
covered fleets, such as State college
campus fleets, their potential for
addressing the EPAct 1992 goal of
petroleum fuel replacement is limited
by their capabilities and reduced
number of vehicles miles traveled.
A comparison of the data above on
average annual miles driven by NEVs
and average annual miles driven by
business fleets suggests that a credit of
no more than 1⁄8 may be warranted.
DOE, however, is proposing to allocate
1⁄4 (0.25) credit for each NEV acquired,
in an effort to provide a general
incentive for covered fleets to eliminate
petroleum consumption through the
acquisition of these vehicles
notwithstanding their limited fuel
replacement value. The 1⁄4 credit level
may appear small, but the actual
resulting value to the acquiring fleet is
larger than the 1⁄4 allocated. This stems
from the fact that NEVs are not
considered motor vehicles under the
AFTP and thus are not included within
the covered LDV count used to set AFVacquisition requirements; in other
words, unlike the acquisition of a light
duty AFV, the acquisition of an NEV
does not increase the vehicle count that
is the basis for calculating the AFVacquisition requirements. Thus, the
acquisition by a covered fleet of an NEV,
rather than a light duty AFV, would
provide an additional benefit to the fleet
inasmuch as the acquisition of the light
duty AFV would itself generate a
requirement for the acquisition of 0.75
30 Section 301(13) of EPAct 1992 defines ‘‘motor
vehicle’’ to have ‘‘the meaning given such term
under section 216(2) of the Clean Air Act (42 U.S.C.
7550(2)).’’ In interpreting section 216(2), which
states that a ‘‘motor vehicle’’ is ‘‘any self-propelled
vehicle designed for transporting persons or
property on a street or highway,’’ DOE defers to
EPA, which has found that ‘‘a vehicle shall be
deemed not a motor vehicle and excluded from the
operation of the Act [if the] vehicle cannot exceed
a maximum speed of 25 miles per hour over level,
paved surfaces * * *’’ 40 CFR 85.1703(a). DOE has
therefore historically chosen not to treat NEVs as
motor vehicles.
31 Id.
32 See DOE, Transportation Energy Data Book:
Edition 29 (July 2010), at Table 8.9.
33 Id. at Table 7.3.

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(State fleet) or 0.9 (alternative fuel
provider fleet) of yet another light duty
AFV, meaning the net credit result
stemming from the acquisition of the
initial light duty AFV would be either
0.25 (1 minus 0.75) or 0.1 (1 minus 0.9)
of a credit. In the case of an NEV
acquired by a covered fleet, the
acquisition would result in a net surplus
of 1⁄4 credit.34
In addition, DOE believes that for
administrative management reasons, the
1⁄4 credit value is the smallest value that
should be allocated under the AFTP.
5. Medium- or Heavy-Duty Electric
Vehicles
a. General
Currently, medium- or heavy-duty
electric vehicles are commercially
available, though perhaps only in
limited numbers outside of the transit
bus sector. Conventional medium- or
heavy-duty vehicles typically use
several times the amount of fuel that
conventional LDVs use. Thus, the
deployment of higher efficiency or
alternative fuel versions of such
vehicles would be expected to have
significant potential to reduce U.S.
petroleum use.
Under the existing AFTP, the
acquisition of a medium- or heavy-duty
AFV yields one credit, but only after the
fleet meets its light duty AFVacquisition requirements. Medium- or
heavy-duty vehicles are not covered
vehicles under the AFTP, meaning that,
unlike the acquisition of light duty
AFVs, the acquisition of medium- or
heavy-duty AFVs does not increase the
vehicle count that is the basis for
calculating the AFV-acquisition
requirements. Thus, as with NEVs (see
Part IV.B.4 above), under the existing
AFTP the acquisition by a covered fleet
of a medium- or heavy-duty AFV, rather
than a light duty AFV, provides an
additional benefit to the fleet inasmuch
as the acquisition of the light duty AFV
would itself generate a requirement for
the acquisition of 0.75 (State fleet) or 0.9
(alternative fuel provider fleet) of yet
another light duty AFV, thereby
yielding a net credit result stemming
from the acquisition of the initial light
duty AFV of either 0.25 (1 minus 0.75)
or 0.1 (1 minus 0.9) of a credit. In the
case of medium- or heavy-duty AFVs,
including battery electric vehicles,
acquired by a fleet, the acquisition
results in a net surplus of one full
credit.
34 Under the existing AFTP, neither AFVacquisition requirements nor AFV credits are
addressed in amounts below one, but fleet
aggregates implicitly involve fractional credits for
individual acquisitions.

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b. Hybrid Electric and Plug-In Hybrid
Electric Vehicles
EISA section 133 calls for DOE to
determine how to allocate credit to
medium- or heavy-duty HEVs and
PHEVs that do not already qualify for
credits under the AFTP as AFVs. As
indicated earlier, DOE proposes to
define a ‘‘medium- or heavy-duty
electric vehicle’’ to mean an ‘‘electric,
hybrid electric, or plug-in hybrid
electric vehicle with a gross vehicle
weight rating of more than 8,500
pounds.’’ Medium- or heavy-duty
battery electric vehicles, as dedicated
vehicles, already qualify as AFVs and
therefore already are eligible for one
credit. Similarly, HEVs or PHEVs in
excess of 8,500 pounds with an internal
combustion engine that can operate (or
that operates solely) on alternative fuel,
already qualify as AFVs. For mediumor heavy-duty non-AFV HEVs and
PHEVs, DOE considered the following
options:
• Allocate one credit, accounting for
the fact that conventional medium- or
heavy-duty vehicles consume more fuel
than do conventional LDVs and thus a
greater potential impact results from the
acquisition of a medium- or heavy-duty
non-AFV HEV or PHEV; or
• Allocate 1⁄2 credit, accounting for
the potentially greater impact (as
compared to an LDV) that a medium- or
heavy-duty non-AFV HEV or PHEV can
have over a conventional medium- or
heavy-duty vehicle, but also noting that
despite the increased efficiency, such a
medium- or heavy-duty non-AFV HEV
or PHEV still is not an AFV.
DOE is proposing to allocate 1⁄2 credit
for the acquisition of medium- or heavyduty HEVs and PHEVs (as well as
medium- or heavy-duty fuel cell electric
vehicles) that do not otherwise qualify
as AFVs. DOE requests comments on
this proposed allocation, and reminds
covered fleets that they would still be
able to earn biodiesel fuel use credits by
using biodiesel blends of B20 or greater
in medium- or heavy-duty non-AFV
HEVs or PHEVs with diesel engines (or
in medium- or heavy-duty fuel cell
electric vehicles with diesel-powered
fuel cells). DOE also clarifies that 1⁄2
credit would be earned only for the
acquisition of a medium- or heavy-duty
non-AFV HEV or PHEV with an electric
drivetrain, as opposed to those that use
electric power only to run their onboard
equipment while stationary at a site.
Thus, a utility-type truck with a plug-in
electric bucket system, but no electric
drivetrain, would not be eligible for
credit under the allocation system
proposed today. At the same time,
acquisition of such a vehicle may allow

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the fleet to reduce idling time, thus
saving fuel. In such a case, the fleet
could still receive credit for the vehicle
by choosing to comply under
Alternative Compliance, where
petroleum use reductions stemming
from idle reduction technologies may be
counted toward a fleet’s petroleum
reduction requirement.
DOE also requests that commenters
address whether the preferred approach
of 1⁄2 credit should only be available for
commercially-available/production
vehicles and not for demonstration
vehicles. DOE considers demonstration
vehicles to be pre-production vehicles,
which, as discussed in Part III.B.8
above, constitute ‘‘emerging
technology,’’ credit for which is
addressed in Part IV.C.3 of this NOPR.
Fleets, however, would not be able to
earn multiple credits for the same
vehicle acquisition (e.g., credit under
one of the above acquisition approaches
as well as credit for an emerging
technology investment). Rather, a fleet
would have to choose whether to earn
credit for the acquisition itself, or for the
investment in emerging technology.
Finally, DOE notes that, like mediumor heavy-duty AFVs, which receive
credit only after the particular covered
fleet has met its light duty AFVacquisition requirement (10 CFR
sections 490.502 and 490.503), acquired
medium- or heavy-duty non-AFVs
would not be entitled to 1⁄2 credit until
the covered fleet has met its light duty
AFV-acquisition mandate. DOE seeks to
maintain a level playing field for all
vehicles with a gross vehicle weight
rating of more than 8,500 pounds,
regardless of the drive or fuel type, and
believes that because the light duty AFV
precondition already applies to
medium- or heavy-duty AFVs, it also
should apply to medium- or heavy-duty
non-AFVs that would receive 1⁄2 credit
under this NOPR. A non-level playing
field effectively would mean that
covered fleets have an incentive to
acquire medium- or heavy-duty nonAFVs over AFVs. To avoid this result,
and to draw a clearer distinction
between light duty versus medium- or
heavy-duty vehicles, DOE proposes
revisions to existing 10 CFR 490.502(a)–
(b), 490.503(a)–(b), and 490.507(b). DOE
invites comments on these
modifications.
C. Investments

objectives in its replacement fuel
programs. In general, the concept
behind the EPAct 1992 fleet programs is
to use the covered centrally-fueled fleets
to catalyze both manufacturer AFV
offerings and refueling infrastructure,
paving the way for AFV use by other
fleets and, ultimately, the general
public. While the statutory requirements
were set in terms of vehicle
acquisitions, the EPAct section 502(a)
goal of maximizing replacement fuel use
also involves consideration of
infrastructure availability. Thus, the
development of an alternative fuel
refueling infrastructure that ultimately
serves as much of the population as
possible is important to achieving the
program goals.
As explained in Part III.B.6 of this
NOPR, DOE interprets the phrase
‘‘alternative fuel infrastructure’’ to mean
one or more alternative fueling or
charging/battery exchange stations. In
determining the allocation of credits for
alternative fuel infrastructure
investment, DOE is proposing that a
covered fleet that installs a new
alternative fueling or charging/battery
exchange station would be eligible to
receive one credit for every $25,000
invested toward developing that
infrastructure. DOE believes that
$25,000 per investment credit is an
appropriate dollar figure inasmuch as
the installation of an E85 pump and
tank historically has cost roughly
$25,000.35 We also note that the average
new LDV costs $25,000, as discussed in
the next section, and as the investment
credit proposal provides an alternative
to acquiring light duty AFVs, the
consistent $25,000 threshold is
appropriate. DOE requests comments
from stakeholders on the
appropriateness of this dollar figure for
purposes of determining the applicable
investment credit.
DOE also is proposing to limit the
number of credits that may be earned in
a single model year to a maximum of 5
credits per fleet if the infrastructure is
private, and a maximum of 10 credits
per fleet if the infrastructure is publicly
accessible. (Additionally, a fleet that
installs both public and private
infrastructure in a given model year
would be limited to a maximum of 10
credits.) The difference is intended to
reflect DOE’s preference for alternative
fuel infrastructure that can be accessed
by the public, as such accessibility

1. Alternative Fuel Infrastructure
To address EISA section 133’s
requirement that DOE allocate credits
for investments in alternative fuel
infrastructure, DOE chooses first to
focus on EPAct 1992’s original

35 The average of the E85 stations listed on the
‘‘Sample E85 Station Costs’’ Web page of DOE’s
Alternative Fuels & Advanced Vehicles Data Center
(http://www.afdc.energy.gov/afdc/ethanol/
cost.html) is approximately $27,000. This figure has
been rounded down slightly for administrative
purposes.

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would expand alternative fuel refueling
options more broadly to other fleets and
vehicles.
To be eligible for investment credit,
the alternative fuel infrastructure would
have to be installed and paid for by the
fleet requesting credit, or at least paid
for by that fleet. Infrastructure that is
installed and paid for or simply paid for
by entities or organizations not subject
to the requirements of the AFTP would
not be eligible for credits.
To receive infrastructure investment
credit, DOE would need to know how
much money was expended, the period
or model year during which the
investment was made, and on exactly
what infrastructure the investment was
spent. Covered fleets would have to
apply to DOE through the credit activity
reporting mechanism in subpart F of the
AFTP regulations and clearly identify
the alternative fuel type, specific
location, date of initial operation, and
level of accessibility of the station.
Importantly, the station would have to
begin operation during the model year
for which credit is sought, and each
fleet would be limited to one award of
credits per site, per model year. For
example, if a covered fleet’s
infrastructure investment spans more
than one year, with the fleet having
invested $12,500 in a new AFV fueling
station during one model year and then
an additional $12,500 in that station
during the following model year, and
with the new station becoming
operational during that second year, the
fleet would be entitled to 1 investment
credit in the second model year. Should
the fleet neglect to seek credit during
that second model year for its $25,000
total investment but instead apply for
the single credit in a later year, DOE
would allocate no credit. Similarly, if
the fleet applies for credit in its credit
activity report for the first model year,
DOE would reject the request on the
grounds that the alternative fuel
infrastructure did not become
operational during that year.
Credits would be awarded for new
fueling or charging stations, or for the
expansion of existing stations if
additional fueling or charging capability
is being added (such as an additional
dispensing unit at an existing station),
in which case the additional capability
would have to become operational
during the model year for which credit
is sought. Simply installing additional
electrical outlets, however, would not
qualify for investment credit.36 Nor
36 DOE would distinguish an electrical outlet
from charging stations, such as those currently
available (See, e.g., http://www.afdc.energy.gov/
afdc/vehicles/electric_charging_equipment.html).

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would credit be provided for
maintenance of or improvements to
existing equipment at an existing
station. Fleets would have to certify the
accuracy of the information provided.
For administrative management
reasons, DOE is proposing to allocate
only whole number values of credits for
investments in alternative fuel
infrastructure.
2. Alternative Fuel Nonroad Equipment
‘‘Alternative fuel nonroad equipment’’
eligible for investment credit allocation
has been defined in Part III.B.7 of this
NOPR to include only mobile
equipment that operates on alternative
fuel. Stationary equipment would not be
eligible to receive credit. DOE
anticipates that some stationary
equipment may be eligible for credit as
‘‘alternative fuel infrastructure,’’ which
would be defined to include charging or
battery exchange stations. DOE’s view is
that credit for investment in such a
station is better suited under the
alternative fuel infrastructure
mechanism as opposed to the
alternative fuel nonroad equipment
mechanism. For this reason, a fleet
seeking credit for investment in a new
or expanded charging or battery
exchange station would be expected to
proceed under the approach set forth for
alternative fuel infrastructure. The fleet
could not seek investment credit for the
new or expanded charging or battery
exchange station as alternative fuel
nonroad equipment. Further, similar to
the requirement for alternative fuel
infrastructure, credit would only be
provided for new mobile equipment, not
maintenance of or improvements to
existing mobile equipment.
DOE has preliminarily chosen to base
the allocation of credit on the rough
value represented by the average price
of a new LDV sold in the United States
in 2008. According to the latest edition
of DOE’s Transportation Energy Data
Book, this average price was $23,186 (in
2009 dollars).37 Converting this value to
2010 dollars (using the Department of
Labor’s CPI Inflation Calculator), the
figure is approximately $25,000. DOE
believes that the appropriate
expenditure level for purposes of
earning a credit for investment in
alternative fuel nonroad equipment is
this amount, or $25,000. DOE believes
that this value is a sufficiently high
value to demonstrate a significant
investment in nonroad equipment rather
than rewarding credit for actions a fleet
otherwise planned to take. In addition,
this amount is equivalent to the other
37 See DOE, Transportation Energy Data Book:
Edition 30 (July 2011), at Table 10.12.

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investment-type credits under today’s
action, providing for some level of
administrative consistency. Therefore,
DOE is proposing to allocate 1 credit for
every $25,000 invested in alternative
fuel nonroad equipment. Credits would
be applied in whole number values,
with 1 credit allocated for each $25,000
threshold achieved, with a maximum of
5 credits earned per fleet in a single
model year. To be eligible for
consideration of credit, the investment
would have to have been made by the
requesting fleet. Investments made by
organizations not subject to the
requirements of the AFTP would not be
eligible for credits.
Each fleet would have to apply for
alternative fuel nonroad equipment
credit through a credit activity report.
To receive nonroad equipment
investment credit, DOE would need to
know how much money was expended,
the period or model year during which
the investment was made, and on
exactly what mobile equipment the
investment was spent. Consistent with
the proposed definition of alternative
fuel nonroad equipment, a fleet
requesting credit would have to certify
that the equipment is being operated on
alternative fuel, within the constraints
of best practices and seasonal fuel
availability. DOE requests comments on
this point.
DOE acknowledges that a covered
fleet’s investment in alternative fuel
nonroad equipment may not necessarily
coincide with the fleet’s acquisition of
the equipment. For consistency,
however, DOE is proposing that a fleet
would get credit for the year in which
the nonroad equipment is put into
operation.
For administrative management
reasons, DOE is proposing to allocate
only whole number values of credits for
alternative fuel nonroad equipment
investments. DOE specifically
considered setting the level for earning
credit at twice the proposed level, or 1
credit per $50,000 invested. DOE is
therefore requesting comments upon the
appropriate investment level for credit
purposes.
3. Emerging Technology
As discussed in Part III.B.8 of this
NOPR, availability of credits for
investments in emerging technology
would be based on the development
status of the relevant vehicle
technologies. In EISA section 133,
Congress has instructed DOE to allocate
credits for such emerging technology
investments so as ‘‘to encourage (i) a
reduction in petroleum demand; (ii)
technological advancement; and (iii) a
reduction in vehicle emissions.’’ In

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DOE’s view, only by deploying the five
vehicle technologies listed in section
133 (hybrid electric vehicles, plug-in
electric drive vehicles, neighborhood
electric vehicles, fuel cell electric
vehicles, and medium- or heavy-duty
electric vehicles) before widespread
commercial availability (or production)
can necessary data from actual users be
generated, including data related to
performance and operating costs. These
types of data can be critical to
determining whether a technology
needs improvement and if so, how it
should be improved to allow wider use.
If data show that no improvement is
needed, then such data could assist
future potential users in deciding
whether to select the technology.
Under the emerging technology
investment credit allocation, DOE is
proposing to allocate no additional
credits for the acquisition of a preproduction version of any of the five
vehicle types themselves, although
DOE’s position is that the preproduction vehicle constitutes an
emerging technology. DOE is proposing
that such pre-production vehicles
would yield one credit by virtue of their
acquisition (if they qualify as AFVs, or
the appropriate level if they qualify as
one of the five electric drive vehicles
but not as an AFV) or they can yield
emerging technology investment credits,
but not both. In other words, fleets
would not be able to earn duplicate
credits for multiple reasons stemming
from the same vehicle acquisition (e.g.,
credit under one of the vehicle
acquisition approaches as well as credit
for an emerging technology investment).
DOE is proposing that investments in
pre-production versions of the five
vehicle types would earn 1 credit per
$25,000 invested. DOE solicits
comments from fleets and other
stakeholders on this proposed level of
credit allocation. As with investments
in alternative fuel nonroad equipment,
the $25,000 level is based on the average
price of a new LDV sold in the United
States in 2008. DOE also is proposing to
limit the number of credits that may be
earned in a single model year under this
category of credits to a maximum of 5
credits per fleet.
Under this approach, as an example,
a covered fleet spending $500,000 on
the acquisition of 10 pre-production

PHEVs (i.e., $50,000 per PHEV) could
obtain a total of 12 credits; 5 credits for
the expenditure of at least $125,000 to
acquire three of the vehicles and 7
credits for the acquisition of the other
seven PHEVs. In the above example, if
the subject vehicles instead were preproduction non-AFV PHEVs, then the
fleet would receive the same 5 credits
for the investment of the $125,000, plus
another 3.5 credits (7 × 1⁄2 credit, subject
to rounding rules when totaled) for the
remaining seven vehicles.
DOE considered allocating emerging
technology investment credit for
additional fleet investments (i.e.,
investments apart from the preproduction vehicle’s acquisition) that
are required to support incorporation of
emerging technology versions of the
enumerated electric drive vehicles into
covered fleets, as well as for
investments in components of the
enumerated vehicles. For example,
incorporating a given emerging
technology electric drive vehicle into a
fleet might require the fleet to acquire
specialized maintenance equipment to
address the new vehicle’s needs. DOE
solicits comments on this issue and
encourages stakeholders, to the extent
they believe credit should be allocated
for investments in components and/or
support equipment, to address in
particular the manageability aspect of
such an approach.
In summary, DOE is proposing to
allocate one credit for every $25,000
investment in eligible emerging
technologies, with a maximum of five
credits to be earned per fleet per model
year, consistent with other ‘‘investmenttype’’ provisions under this proposed
rule. DOE did consider whether to allow
fleets to earn more than a maximum of
five credits annually per technology,
however, in an effort to limit the degree
to which the system’s credits surplus
grows, DOE has chosen to allot a
maximum of five credits per model year,
per fleet, for this category of credits.
Eligibility for such credit would only
exist while the underlying vehicle
technology is still considered
‘‘emerging,’’ in accordance with the
definition provided in Part III.B.8 of this
NOPR. Therefore, an investment that
might be eligible for investment credit
in one year might not be eligible the

next year, if the underlying vehicle
technology moves into commercial
production. In addition, to be eligible
for consideration of credit, the
requesting fleet would have to have
made the investment. Investments in
emerging technologies by organizations
not subject to the requirements of the
AFTP would not be eligible for credits
(e.g., payments to industry groups or
associations or for education outreach,
lobbying, or other similar activities for
which the fleet has little or no control
over the activity).
DOE is proposing to allocate credits in
whole number values, with credit
allocated for each $25,000 threshold
achieved. As with the other investmentrelated credits, DOE would not allot
fractional credits for investments in
emerging technology. Each fleet would
have to apply to DOE to receive credit
for emerging technology investments.
The documentation the fleet provides
would be critical to any allocation of
credit DOE makes; therefore, fleets
requesting credit under this provision
should be prepared to supply
sufficiently-detailed information from
which DOE could verify the specific
purposes of the subject investment, as
well as the specific amount of the
investment and that the investment has
not been the subject of credit elsewhere
under this program. Fleets would have
to certify the accuracy of the
information provided. DOE
acknowledges that a covered fleet’s
investment in emerging technology may
not necessarily coincide with the fleet’s
acquisition of the technology. For
consistency, however, DOE is proposing
that a fleet would get credit for the year
in which the emerging technology is put
into operation.
The amounts submitted for
consideration for credit should not
include amounts or activities that are
credited elsewhere under the provisions
related to acquisition of AFVs, electric
drive vehicles, alternative fuel
infrastructure, or alternative fuel
nonroad equipment.
DOE solicits comments from fleets
and other stakeholders on the proposed
level of credit allocation ($25,000/
credit).
Summary Table of Credits

PROPOSED CREDIT LEVELS UNDER STANDARD COMPLIANCE FOR ELECTRIC DRIVE VEHICLES NOT CLASSIFIED AS AFVS
AND FOR OTHER ACTIONS
Credit category

Credit allotment

HEV ......................................................
PHEV ...................................................
FCEV ...................................................

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Limitations/other

⁄ credit.
⁄ credit.
1⁄2 credit.
12
12

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67303

PROPOSED CREDIT LEVELS UNDER STANDARD COMPLIANCE FOR ELECTRIC DRIVE VEHICLES NOT CLASSIFIED AS AFVS
AND FOR OTHER ACTIONS—Continued
Credit category

Credit allotment

Limitations/other

NEV ......................................................
Medium- or heavy-duty HEV/PHEV ....
Alternative Fuel Infrastructure .............

⁄ credit ..............................................
⁄ credit ..............................................
1 credit per $25,000 invested * ...........

Alternative Fuel Nonroad Equipment ..
Emerging Technology ..........................

1 credit per $25,000 invested * ...........
1 credit per $25,000 invested, or 1
credit per pre-production vehicle *.

Not included in covered LDV count.
Not included in covered LDV count.
Maximum of 5 credits if private infrastructure, 10 credits if publicly-accessible infrastructure; credit allocated in model year
placed into operation.
Maximum of 5 credits per fleet per model year.
Maximum of 5 credits if counting based on amount invested,
per fleet per model year.

14
12

* Aggregation of dollar amounts allowed (see Part IV.A above).

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V. Proposed Modifications to the
Existing AFTP
Covered SFP fleets have been
complying with the AFTP for almost
fifteen years. Since its establishment in
1996, the AFTP has operated smoothly,
with tremendous compliance rates. DOE
has considered the successes of the
AFTP and its applicable requirements in
the context of seeking continued
efficient and simple AFTP operation
within a framework of limited
resources. As a result, DOE has
identified several areas in which it
believes modifications to the existing
AFTP can benefit AFTP stakeholders
and increase Program efficiencies. DOE
seeks comments from stakeholders on
each of the proposals set forth below.
A. Timeliness of Exemption Request
Submittals
On occasion, DOE has received
complete exemption requests before and
also well past the model year for which
the requests would apply. In other
instances, DOE has received incomplete
exemption requests and, following
correspondence between DOE and the
submitter, the latter has not provided
necessary information to DOE in a
timely fashion. The result in these
instances is that a complete exemption
request was not submitted to DOE until
well past the relevant model year.
The existing AFTP does not provide
specific time frames in which covered
fleets must submit their exemption
requests to DOE. The regulations,
specifically 10 CFR 490.204 (State
fleets) and 490.308 (alternative fuel
provider fleets), currently specify
neither the earliest date nor a deadline
by which exemption requests must be
submitted; in the case of States, section
490.204(b) specifically provides that
requests for exemptions ‘‘may be
submitted at any time * * *.’’
When an exemption request is
submitted before the model year for
which the exemption would apply,
there is a distinct risk that the
submitting fleet will not have in hand

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information sufficient to be able to
commit to vehicle specifics in its
request. Moreover, when an exemption
request is submitted before the start of
and even during a model year, the fleet’s
planned acquisitions often will change
subsequent to the request’s submission.
For example, the requesting fleet may
acquire a different number of LDVs, or
a different makeup (e.g., make and
model) of LDVs, compared to what was
indicated in the fleet’s exemption
request. Similarly, a fleet requesting
exemptions before the close of a given
model year on the basis that alternative
fuel is unavailable may find that an
appropriate alternative fuel station has
opened after submission of its request.
Such changes during the model year
have resulted in fleets having to
resubmit their exemption requests.
DOE believes that submitting an
exemption request before the close of
the subject model year (i.e., before
August 31) often leads to these
situations. As required under 42 U.S.C.
13251(a)(5) and 13257(i), exemption
requests must ‘‘demonstrate[] to the
satisfaction of the Secretary’’ that
certain factors apply. In establishing a
start date for submissions, DOE hopes to
encourage more accurate exemption
requests, thus reducing the likelihood
that fleets would have to revise and
resubmit their requests.
Similarly, exemption requests and
responses to DOE requests for
clarification or additional information
would be limited by a deadline under
this NOPR. DOE believes this is
appropriate given that a fleet should
have an adequate level of certainty
regarding the availability of alternative
fuels and vehicles for the just-completed
model year.
Based on the foregoing, DOE is
proposing the following:
› A covered fleet may submit an
exemption request no earlier than
September 1 following the subject
model year, and the exemption request
must be preceded by the fleet’s annual
report for that model year.

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› DOE must receive an exemption
request no later than January 31
following the subject model year for
which the exemption request would
apply.
› For submitted exemption requests
on which DOE seeks clarification or
additional information, the requesting
fleet must respond to DOE within 30
days, or DOE would process the
exemption request based solely upon
the information it has.
Therefore, covered fleets would have
a five-month period in which to seek
exemptions from DOE. If a covered fleet
were to submit an exemption request
during the subject model year (i.e., prior
to the model year’s close on August 31)
and, therefore, prior to having submitted
its annual report, DOE would inform the
fleet’s point of contact (POC) by
electronic mail that the request was
submitted too early and, for that reason,
DOE would not consider it unless it
were resubmitted after the fleet filed its
required annual report. Should a
covered fleet submit an exemption
request after January 31 following the
subject model year (i.e., more than five
months after the model year ended),
DOE would notify the POC by electronic
mail that because the exemption request
was submitted too late, DOE will not
provide a written determination under
section 490.204 or section 490.308.
Similarly, if a covered fleet does not
respond to a request from DOE for
additional information within a timely
manner (i.e., 30 days), DOE would
process the fleet’s exemption request
based on the information DOE already
has, which might not be sufficient to
support the granting of the request
either in whole or in part.
DOE has based this schedule upon the
experience it has gained since the
inception of the AFTP, and believes that
five months is sufficient time for
covered fleets to submit their exemption
requests. To date, the vast majority of
exemption requests have been
submitted by fleets after the applicable
model year has ended, and, in fact, after

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the respective fleet’s submission of its
required annual report. Only a few
isolated cases have occurred outside of
the proposed five-month filing period.
Thus, no hardship is anticipated by
formalizing this schedule.
Moreover, requiring the prior
submission of a fleet’s annual report,
which is due no later than December 31
following the model year (10 CFR Sec.
490.205 and 490.309), should limit the
need for DOE to seek clarification or
additional information from the
requesting fleet. Even those fleets that
file their annual report on the December
31 reporting deadline would still have
one full month to prepare their
exemption requests, although earlier
submission of reports is still
recommended.
B. Program Credits and Exemption
Requests
Under the AFTP, covered fleets that
go beyond compliance under the
Standard Compliance method by
acquiring more AFVs than they are
required to acquire in a given model
year may bank credits earned for these
additional acquisitions. 10 CFR
490.503(a). These fleets may then draw
upon these banked credits as they need
them in future model years, or they may
sell or trade these credits to other
covered fleets that need credits for
purposes of complying with their own
Standard Compliance obligations. Thus,
the purpose of the credit program is to
provide flexibility to fleets. Since 1996,
covered SFP fleets have generated a
significant number of banked credits.
The credit banking system has
matured greatly since its inception.
Fleets have generated and accumulated
more credits than they are using. As of
the start of MY 2010, there were over
61,500 banked AFV-acquisition credits
in the system. This number of credits is
an amount sufficient to keep the AFTP
operating without any fleets acquiring
AFVs for at least an estimated four
years. Clearly, as a group, covered fleets
are not having trouble generating AFVacquisition credits, and this proposed
rule, once promulgated, would only
increase the number of ways in which
fleets can obtain credits under the
AFTP.
Despite this surplus of credits,
covered SFP fleets annually request
exemptions from AFV-acquisition
requirements. Since MY 2000, DOE has
granted exemptions for over 9,600
AFVs, which were included in nearly
350 exemption requests. In many
instances, covered fleets with banked
credits request and receive exemptions.
DOE is not required to grant AFVacquisition exemption requests unless

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certain demonstrations are made to its
satisfaction. A request for exemptions
should be a form of administrative relief
of the last resort, in the event a fleet is
unable to satisfy its AFV-acquisition
requirements through the available
compliance avenues, including AFV
acquisitions, biodiesel use in mediumand heavy-duty vehicles, and obtaining
banked credits from other fleets.
Overall, DOE does not believe that
exemptions further the replacement of
petroleum fuels in accordance with
EPAct 1992. Exemptions should
therefore be viewed purely as
administrative relief in the event a fleet
cannot otherwise meet its AFVacquisition requirements.
In order to address the surplus of
credits and the use of the exemption
process, DOE is proposing three
revisions. First, DOE is proposing that
covered fleets be required to use their
own banked credits before requesting
exemptions from DOE. With respect to
any covered fleet whose annual report
reveals an AFV-acquisition deficiency,
under today’s proposed rule, DOE
would not need to receive a specific
request from the fleet to apply banked
credits towards the existing deficiency.
With the proposed coordinated
timeframes for submitting exemption
requests and model year annual reports,
DOE would be able to consider a fleet’s
available credits when a deficiency is
identified in an annual report, and then
consider exemption requests as
necessary. Pursuant to 10 CFR 490.504,
which would become section 490.505,
DOE, in response to a fleet’s request that
its banked credits be counted as AFV
acquisitions, would continue to apply
the credits in such manner. In the
absence of a request, though, DOE
would automatically apply a deficient
fleet’s banked credits towards the credit
shortfall. Proposed language to this
effect is included in new section
490.505(b). In the case where a
requesting fleet has some banked credits
but not enough to negate the need for
any exemptions, DOE would apply the
fleet’s banked credits first, reducing the
number of exemptions sought.
Second, DOE is proposing to require
that deficient fleets without a sufficient
number of banked credits to resolve the
deficiency provide information in their
annual reports regarding any efforts they
have made to purchase or trade for
credits in the credit market.
Third, DOE is proposing in this
rulemaking that exemption requests
submitted by a fleet within 90 days of
that fleet’s sale of banked credits will
not be granted.
This NOPR would expand the array of
creditable actions available to fleets,

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thus making it easier for covered fleets
to comply with their AFV-acquisition
requirements and simultaneously
expanding the compliance options that
fleets must explore in advance of
pursuing exemptions. DOE believes that
going forward there will be fewer
justifications for granting exemptions.
To date, DOE has granted exemptions as
a means to provide fleets flexibility
when their efforts to comply have
resulted in a shortfall of credits. Today
DOE proposes steps that are designed to
ensure that fleets use their existing
credits for the purpose for which they
were generated. DOE seeks comments
from stakeholders on applying a fleet’s
credits prior to granting exemptions,
requiring covered fleets to provide
information regarding their attempts to
purchase or trade for credits in their
annual reports, and the restriction on
banked credit sales 90 days prior to an
exemption request.
In these ways, DOE seeks to limit the
growth of the store of credits currently
in the AFTP, and in so doing, ensure
banked credits have value and further
the goals of the AFTP. Reducing the
store of credits and ensuring a demand
for these credits would help to increase
the value of credits and thereby make
these credits relevant in a fleet’s
decision-making regarding how to
comply with the AFV-acquisition
requirements. A fleet lacking credits
may have to consider whether
purchasing a market-priced credit is a
better financial option than
participating in the AFTP’s Alternative
Compliance option. DOE believes this
latter option can save the fleet financial
resources by helping the fleet reduce its
petroleum consumption. As an option of
last resort, a State fleet may still request
an exemption based on unreasonable
financial hardship (10 CFR
490.204(a)(3)).
C. Alternative Compliance
As mentioned earlier, Congress
created the Alternative Compliance
option in 2005, and DOE promulgated
its final rule establishing subpart I of 10
CFR part 490 on March 20, 2007.
Covered fleets that wish to opt into
Alternative Compliance are required to
apply for a waiver. 10 CFR 490.805(b)(1)
requires that a preliminary intent to
apply for a waiver be registered by
March 31 prior to the model year for
which the waiver is sought. Under 10
CFR 490.805(b)(2), a fleet’s complete
waiver application is due no later than
July 31 if the application is dependent
on information regarding the availability
of motor vehicle models to be released
by auto manufacturers, while under 10
CFR 490.805(b)(3), the complete waiver

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application is due by June 30 if it is not
dependent on such information. DOE
established these alternative due dates
to alleviate difficulties associated with
preparing an application in the face of
new model year vehicle data, which
manufacturers generally do not release
until summer.
After several years of experience with
Alternative Compliance, DOE has
determined that it is appropriate to have
a single deadline for complete waiver
applications. Having one due date is
expected to be less confusing to fleets.
In addition, it has proven to be difficult
for DOE to determine whether a fleet
should have submitted its waiver
application by the earlier submittal date.
Ultimately, DOE encourages covered
fleets to submit Alternative Compliance
waiver applications and seeks to ensure
that interested fleets have sufficient
time to submit their applications.
Therefore, DOE is proposing to delete
the June 30 due date and establish a
uniform application deadline of July 31.
All waiver applications would be due
no later than July 31 prior to the model
year for which a waiver is sought. The
deadline for filing a notice of intent,
which is March 31 prior to the model
year for which a waiver is sought,
would be unaffected.
Based upon its implementation to
date of the Alternative Compliance
option, DOE also has realized that the
existing regulatory provisions pertaining
to the rollover of excess petroleum
reductions achieved through Alternative
Compliance in a previous model year
could be clearer for fleets. Therefore,
DOE is proposing revisions to the
language in 10 CFR 490.804(c) to clarify
the steps for requesting and applying
rollover reductions to future model
years for which a waiver is sought.
Under proposed section 490.804(c)(2)(i),
a fleet wishing to roll over for future use
the excess petroleum reductions that it
achieved in a particular model year
would have to make a written request to
DOE as part of the fleet’s annual report
for that year. Similarly, under proposed
section 490.804(c)(2)(ii), if the fleet
seeks to apply any of the excess
petroleum reductions previously rolled
over to a later model year for which an
Alternative Compliance waiver was also
granted, the fleet would have to include
a written request as part of its annual
report for that later model year.
Finally, DOE is proposing a
modification to section 409.809 to
address the situation in which DOE has
revoked a fleet’s Alternative Compliance
waiver. The modification would clarify
that such a fleet is precluded from
requesting any exemptions under
Standard Compliance for the model year

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of the revoked waiver. DOE previously
has explained ‘‘that it would not grant
exemptions to a State under [section]
490.204 or to a covered person under
[section] 490.308 if the State or covered
person has been granted an alternative
compliance waiver.’’ 38 The proposed
revision to section 490.809 would set
forth in the regulations DOE’s
longstanding position that a fleet that
has been granted a waiver for a
particular model year is not eligible for
any exemptions during that model year.
D. Other Regulatory Revisions
DOE also is proposing today several
minor technical amendments that are
designed to make the AFTP regulations
internally consistent. These
amendments, which DOE believes are
non-controversial, clarify the definitions
of ‘‘capable of being centrally fueled’’
and ‘‘fleet’’ as they appear in 10 CFR
section 490.2, correct an error in
490.308(f), and standardize the use of
the terms ‘‘alternative fueled,’’
‘‘dedicated’’, and ‘‘dual-fueled’’ as they
appear in the following provisions:
• 10 CFR 490.202(a);
• 10 CFR 490.205(b)(5)(iv);
• 10 CFR 490.305(a); and,
• 10 CFR 490.309(b)(5)(iv).
E. Other Issues
DOE also wishes to clarify that
alternative fuel provider fleets will
continue to receive credit under the
AFTP for the acquisition of a light duty
AFV irrespective of whether the
appropriate alternative fuel is available
in the area in which the vehicle is
located or operated. 10 CFR 490.306,
consistent with section 501(a)(4) of
EPAct 1992, provides that acquired
AFVs ‘‘shall be operated solely on
alternative fuels, except when these
vehicles are operating in an area where
the appropriate alternative fuel is
unavailable.’’ DOE has found that
acquisition credits for AFVs, which
serve to get vehicles on the road, are
valuable inasmuch as they spur demand
not only for the vehicles but, just as
importantly, for the alternative fuel. If
the alternative fuel becomes available,
however, section 490.306 requires the
fleet to use the fuel in the acquired AFV.
DOE reminds alternative fuel provider
fleets that the operating requirement in
10 CFR 490.306 is a continuous one,
and encourages fleets to review on a
regular basis the availability of
alternative fuels in their AFV operating
areas, for example through DOE’s
Alternative Fueling Station Locator,
which is available at http://www.afdc.
38 72 FR 12958, 12962 (Mar. 20, 2007); See also
71 FR 36034, 36036 (June 23, 2006).

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energy.gov/afdc/locator/stations/, and to
contact their local Clean Cities
coalitions (see http://www.afdc.energy.
gov/cleancities/progs/coalition_
locations.php) for the latest information
on alternative fuel availability.
Finally, in the context of this issue
and exemption requests, DOE reiterates
that today’s NOPR would increase the
number of creditable actions under the
AFTP and, consequently, expand the
range of compliance options available to
all covered fleets. In particular, as
discussed earlier, credit would be
allocated for the acquisition by fleets of
non-AFV HEVs, among other vehicles.
With respect to such HEVs, DOE notes
both that the vehicles and their fuel (i.e.,
gasoline) are widely available
throughout the country. For this reason,
DOE intends to adopt an approach to
the granting of exemptions that is
similar to DOE’s longstanding policy on
biodiesel. Under that policy, unless a
covered fleet seeking exemptions either
indicates in its exemption request that
it does not own or operate any or a
sufficient number of medium- or heavyduty diesel vehicles or demonstrates
that biodiesel is unavailable to it, DOE
limits the number of exemptions
granted to no more than one-half of the
fleet’s AFV-acquisition requirements,
inasmuch as biodiesel fuel use credits
may account for up to 50% of those
annual requirements (10 CFR Sec.
490.705(b)). Because non-AFV HEVs are
widely available, DOE would therefore
also expect a covered fleet seeking
exemptions under these proposed
regulations to demonstrate in its
exemption request why it was unable to
acquire such HEVs and therefore meet at
least 50% of its AFV-acquisition
requirements with such vehicles (based
on the 1⁄2 credit allocated for each
HEV).39 DOE would limit the number of
exemptions granted based on a shortfall
of HEV purchases, unless the fleet
shows that HEVs were not available in
the light duty vehicle type needed by
the fleet.
VI. Proposed Compliance
A. Credit Values
The approach that DOE is proposing
today allocates less than one credit to
certain vehicle types, and whole
number values of credits for
investments in alternative fuel
infrastructure, alternative fuel nonroad
equipment, and relevant emerging
39 Note that a covered fleet could potentially meet
100% of its AFV-acquisition requirements through
a combination of non-AFV HEV purchases and
biodiesel fuel use credits. As noted earlier in this
proposed rule, like biodiesel purchases, light duty
HEV purchases would earn credits even if a fleet
has not yet met its AFV acquisition requirements.

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technologies. DOE also is proposing that
when fleets report to DOE the total
credits they have earned in a model
year, they should total the credits,
including all fractional credits earned
for vehicle acquisitions, and round to
the nearest whole number. In rounding
to the nearest whole number, fractions
greater than or equal to one half (0.5)
should be rounded up and fractions less
than one half should be rounded down.
For example, DOE would approve 14
credits for a fleet that submits
appropriate documentation supporting
its acquisition of AFVs and non-AFVs
that total 131⁄2 or 133⁄4 credits. Similarly,
DOE would approve 13 credits for a
fleet that submits appropriate
documentation supporting its
acquisition of AFVs and non-AFVs that
total 131⁄4 credits. This rounding
approach to fractional credits is
consistent with how fleets already
round for purposes of calculating their
AFV-acquisition requirements.
B. Reporting
As with the existing AFTP, fleet
compliance reporting may be
accomplished through the Internet. Over
the past several years, approximately 75
percent of reporting fleets have
consistently submitted their compliance
information to DOE through the
available Internet online reporting
system. Reporting compliance
information online serves several
purposes. First, reporting is immediate.
Second, filing the information online
reduces the potential for the
introduction of errors through entry and
transcription of compliance
information. Third, reporting online is
less burdensome and a more efficient
use of both fleet and DOE resources.
VII. Opportunity for Public Comment

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A. Participation in Rulemaking
Interested persons are invited to
participate in this proceeding by
submitting written data, views, or
comments with respect to the subjects
and DOE proposals set forth in this
notice. DOE encourages the maximum
level of public participation possible in
this proceeding. Individual consumers,
representatives of consumer groups,
manufacturers, associations, coalitions,
alternative fuel providers, States or
other government entities, and others
are urged to submit written comments
on the proposal. Whenever applicable,
full supporting rationale, data and
detailed analyses should also be
submitted.

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B. Written Comment Procedures
Written comments (eight copies)
should be identified on the outside of
the envelope, and on the comments
themselves, with the designation:
‘‘Alternative Fuel Transportation
Program: Alternative Fuel
Transportation Program; Alternative
Fueled Vehicle Credit Program (Subpart
F) Modification,’’ NOPR, RIN 1904–
AB81, and must be received by the date
specified at the beginning of this notice.
In the event any person wishing to
submit written comments cannot
provide eight copies, alternative
arrangements can be made in advance
by calling Mr. Dana O’Hara at (202)
586–8063. Additionally, DOE would
appreciate an electronic copy of the
comments to the extent possible.
Electronic copies should be emailed to
[email protected]. DOE is
currently using Microsoft Word.
Before taking final action on today’s
proposal, DOE will consider all
comments and other relevant
information received on or before the
date specified at the beginning of this
NOPR. All comments submitted will be
made available in the electronic docket
set up for this rulemaking. Therefore, no
information desired to be kept
confidential should be submitted to the
docket. This docket will be available via
the DOE EDOCKET through http://
www.regulations.gov, which may be
located using key words or the above
noted docket number.
VIII. Regulatory Review
A. Review Under Executive Order 12866
Today’s proposed rule has been
determined not to be a ‘‘significant
regulatory action’’ under section 3(f) of
Executive Order 12866, ‘‘Regulatory
Planning and Review,’’ 58 FR 51735
(October 4, 1993). Accordingly, this
action was not subject to review under
that Executive Order by the Office of
Information and Regulatory Affairs
(OIRA) of the Office of Management and
Budget (OMB).
B. Review Under the Regulatory
Flexibility Act
The Regulatory Flexibility Act (RFA;
5 U.S.C. 601 et seq.) requires the
preparation of an initial regulatory
flexibility analysis for any rule that by
law must be proposed for public
comment, unless the agency certifies
that the rule, if promulgated, will not
have a significant economic impact on
a substantial number of small entities.
As required by Executive Order 13272,
‘‘Proper Consideration of Small Entities
in Agency Rulemaking,’’ 67 FR 53461
(August 16, 2002), DOE published

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procedures and policies on February 19,
2003, to ensure that the potential
impacts of its rules on small entities are
properly considered during the
rulemaking process. 68 FR 7990. These
procedures and policies are available at
http://www.gc.doe.gov/documents/
eo13272.pdf.
DOE has reviewed today’s proposed
rule under the provisions of the RFA
and the procedures and policies
published on February 19, 2003. The
requirements in 10 CFR part 490 apply
only to alternative fuel providers and
State government entities that own,
operate, lease, or otherwise control 50 or
more non-excluded LDVs, at least 20 of
which are centrally fueled or capable of
being centrally fueled and are used
primarily in a metropolitan statistical
area (MSA) or consolidated MSA with a
1980 Census population of more than
250,000. DOE has identified certain fleet
operators that may qualify as small
entities under RFA. Today’s action, if
finalized, however, would provide
additional compliance options and
amend the administrative process for
demonstrating compliance, and
therefore will not have a significant
economic impact on a substantial
number of small entities. DOE’s
certification and supporting statement
of factual basis will be provided to the
Chief Counsel for Advocacy of the Small
Business Administration pursuant to 5
U.S.C. 605(b).
C. Review Under the Paperwork
Reduction Act of 1995
Under the Paperwork Reduction Act
of 1995 (PRA; 44 U.S.C. 3501 et seq.)
and the regulations implementing the
PRA, 5 CFR 1320.1 et seq., a ‘‘person’’
is not required to respond to a
‘‘collection of information’’ unless it
displays a currently valid OMB control
number. This proposed rule would
contain a collection of information that
is subject to review by OMB under the
PRA. DOE plans to obtain
documentation to support the allocation
of credits through use of the AFTP’s
annual reporting form, DOE/FCVT/101,
Standard Compliance Reporting
Spreadsheet. OMB Control Number
1910–5101 is currently valid and
assigned to the AFTP’s annual report(s).
As part of this proposed rule, DOE is
proposing to collect additional
information regarding investments in
refueling infrastructure, alternative fuel
non-road equipment, and emerging
technology, as well as efforts made to
procure credits on the credit market.
Proposed § 490.508 (‘‘Credit activity
reporting requirements’’) contain
information collection requirements.
DOE has submitted this proposed

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collection of information to the Office of
Management and Budget for approval
pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.) and
the procedures implementing that Act, 5
CFR 1320.1 et seq. A person is not
required to respond to a collection of
information unless it displays a
currently valid OMB control number.
DOE estimates that all covered fleets
may seek to earn credits for acquiring
electric drive vehicles, but that fewer
fleets will seek to earn credits for
acquiring and deploying alternative fuel
infrastructure, alternative fuel nonroad
equipment, and emerging technology.
DOE estimates that a State or covered
person seeking credits for both
acquiring electric drive vehicles and for
acquiring and deploying alternative fuel
infrastructure, alternative fuel nonroad
equipment, and emerging technology
would expend 1 additional hour to
comply with the reporting requirements
of EISA section 508. DOE estimates the
total annual costs to a State or covered
person that receives credits proposed
under today’s NOPR are negligible,
particularly given that the covered fleet
is already submitting an annual report
to achieve compliance with Program
requirements.
DOE estimates that approximately 10
to 30 fleets request exemptions each
model year. Under today’s proposed
rule, these fleets would have to provide
information in their annual reports
regarding any efforts they have made to
purchase or trade for credits in the
credit market. DOE estimates that fleet
in this instance would expend 1
additional hour to comply with this
requirement. DOE estimates that the
total annual costs to a state or covered
person complying with this requirement
for the purpose of requesting an
exemption under the Program, as
proposed under today’s NOPR, are
negligible, particularly given that the
covered fleet may already have
attempted to acquire credits from
another covered fleet.
DOE invites public comment on: (1)
Whether the proposed information
collection requirements are necessary
for the performance of DOE’s functions,
including whether the information will
have practical utility; (2) the accuracy of
DOE’s estimates of the burden of the
proposed information collection
requirements; (3) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (4)
ways to minimize the burden of the
information collection requirements on
respondents. Comments should be
addressed to the Department of Energy
Desk Officer, Office of Information and
Regulatory Affairs, OMB, 725 17th

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Street, NW., Washington, DC 20503.
Persons submitting comments to OMB
also are requested to send a copy to the
contact person at the address given in
the ADDRESSES section of this notice of
proposed rulemaking. Interested
persons may obtain a copy of the DOE’s
Paperwork Reduction Act Submission to
OMB from the contact person named in
this notice of proposed rulemaking.
D. Review Under the National
Environmental Policy Act
DOE has determined that this
proposed rule is covered under the
Categorical Exclusion found in DOE’s
National Environmental Policy Act
regulations at paragraph A5 of
Appendix A to Subpart D, 10 CFR part
1021, which applies to any rulemaking
amending an existing rule or regulation
that does not change the environmental
effect of the rule or regulation being
amended. Under this proposed rule,
covered fleets would be able to earn
credits for the acquisition of specified
electric drive vehicles and for
investments in alternative fuel
infrastructure, nonroad equipment, and
relevant emerging technologies,
activities for which they may not earn
credits under the existing AFTP. The
proposed rule has been structured to
ensure that the petroleum reductions
achieved by the AFTP in the future
would be equivalent to those achieved
in past years. Because the proposed rule
would not change the environmental
effect of compliance with 10 CFR part
490, neither an environmental
assessment nor an environmental
impact statement is required.
E. 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 Federal 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
Executive Order 12988 specifically
requires that Federal 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

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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 Federal agencies to
review regulations in light of the
applicable standards in sections 3(a)
and 3(b) to determine whether those
standards 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 proposed rule meets the
relevant standards of Executive Order
12988.
F. Review Under Executive Order 13132
Executive Order 13132, ‘‘Federalism,’’
64 FR 43255 (August 10, 1999), imposes
certain requirements on agencies
formulating and implementing policies
or regulations that preempt State law or
that have federalism implications.
Agencies are required to examine the
constitutional and statutory authority
supporting any action that would limit
the policymaking discretion of the
States and carefully assess the necessity
for such actions. DOE has examined this
proposed rule and determined that it
would not preempt State law and would
not have a substantial direct effect on
the States, on the relationship between
the national government and the States,
or on the distribution of power and
responsibilities among the various
levels of government. Therefore, no
further action is required by Executive
Order 13132.
G. Review Under the Unfunded
Mandates Reform Act of 1995
DOE reviewed this proposed rule
under Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA; Pub. L.
104–4), which requires each Federal
agency to assess the effects of its
regulatory actions on State, local, and
tribal governments and the private
sector. For a proposed regulatory action
likely to result in the promulgation of a
rule that includes a Federal mandate
that may result in the expenditure by
State, local, and tribal governments, in
the aggregate, or by the private sector, of
$100 million or more in any one year
(adjusted annually for inflation), section
202 of UMRA requires the agency to
prepare a written statement assessing
the resulting costs, benefits, and other
effects of the rule on the national
economy (2 U.S.C. 1532(a) and (b)).
UMRA also requires a Federal agency to
develop an effective process to permit
meaningful and timely input by elected
officers of State, local, and tribal
governments on any proposal
containing a ‘‘significant Federal

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intergovernmental mandate,’’ and
requires an agency to develop a plan for
providing potentially affected small
governments with notice and an
opportunity for timely input prior to the
establishment of any regulatory
requirements that might significantly or
uniquely affect small governments (2
U.S.C. 1533 and 1534). On March 18,
1997, DOE published a statement of
policy on its process for
intergovernmental consultation under
UMRA (62 FR 12820) (also available at
http://www.gc.doe.gov).
Today’s proposed rule provides
additional compliance options under 10
CFR Part 490 by expanding credits
under the existing AFTP, and therefore
contains neither an intergovernmental
mandate nor a private sector mandate
that may result in the expenditure by
State, local, and tribal governments, in
the aggregate, or by the private sector, of
$100 million or more in any year.
Accordingly, no assessment or analysis
is required under UMRA.

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H. Review Under the Treasury and
General Government Appropriations
Act, 1999
Section 654 of the Treasury and
General Government Appropriations
Act, 1999 (Pub. L. 105–277) requires
Federal agencies to issue a Family
Policymaking Assessment for any
proposed rule that may affect family
well-being. This proposed rule would
not have any impact on the autonomy
or integrity of the family as an
institution. Accordingly, DOE has
concluded that it is not necessary to
prepare a Family Policymaking
Assessment.
I. Review Under the Treasury and
General Government Appropriations
Act, 2001
The Treasury and General
Government Appropriations Act, 2001
(44 U.S.C. 3516 note) provides for
agencies to review most disseminations
of information to the public under
guidelines established by each agency
pursuant to general guidelines issued by
OMB. OMB’s guidelines were published
at 67 FR 8452 (February 22, 2002), and
DOE’s guidelines were published at 67
FR 62446 (October 7, 2002). DOE has
reviewed today’s proposed rule under
the OMB and DOE guidelines, and has
concluded that it is consistent with
applicable policies in those guidelines.
J. Review Under Executive Order 13211
Executive Order 13211, ‘‘Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use,’’ 66 FR 28355 (May
22, 2001), requires Federal agencies to

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prepare and submit to OIRA a Statement
of Energy Effects for any proposed
significant energy action. A ‘‘significant
energy action’’ is defined as any action
by an agency that promulgates or is
expected to lead to the promulgation of
a final rule or regulation, and that: (1)
Is a significant regulatory action under
Executive Order 12866, or any successor
order; and (2) is likely to have a
significant adverse effect on the supply,
distribution, or use of energy; or (3) is
designated by the Administrator of
OIRA as a significant energy action. The
Statement of Energy Effects must
discuss any adverse effects on energy
supply, distribution, or use should the
proposal be implemented, and
reasonable alternatives to the action and
their expected benefits on energy
supply, distribution, and use.
As discussed in section VIII.A above,
this proposed rule has been determined
not to be a ‘‘significant regulatory
action’’ under Executive Order 12866. In
addition, the proposal is not likely to
have a significant adverse effect on the
supply, distribution, or use of energy
and, therefore, is not a significant
energy action. Nor has OIRA designated
this action as a significant energy action.
Accordingly, DOE has not prepared a
Statement of Energy Effects.
List of Subjects in 10 CFR Part 490
Administrative practice and
procedure, Energy conservation, Fuel
economy, Gasoline, Motor vehicles,
Natural gas, Penalties, Petroleum,
Reporting and recordkeeping
requirements.
Issued in Washington, DC, on October 5,
2011.
Henry C. Kelly,
Acting Assistant Secretary, Energy Efficiency
and Renewable Energy.

For the reasons set forth in the
preamble, the Department of Energy is
proposing to amend Part 490 of Title 10,
Chapter II of the Code of Federal
Regulations as set forth below:
PART 490—ALTERNATIVE FUEL
TRANSPORTATION PROGRAM
1. The authority citation for Part 490
continues to read as follows:
Authority: 42 U.S.C. 7191 et seq.; 42
U.S.C. 13201, 13211, 13220, 13251 et seq.

2. Section 490.2 is amended by:
a. Adding ‘‘, including liquid fuels
domestically produced from natural
gas’’ after the words ‘‘natural gas’’ in the
definition of ‘‘Alternative Fuel’’.
b. Removing the definitions of
‘‘Electric-hybrid Vehicle,’’ ‘‘Electric
Motor Vehicle,’’ and ‘‘Flexible Fuel
Vehicle’’.

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c. Revising the definitions of
‘‘Alternative Fueled Vehicle,’’
‘‘Automobile,’’ ‘‘Capable of Being
Centrally Fueled,’’ ‘‘Dedicated Vehicle,’’
‘‘Dual Fueled Vehicle,’’ and ‘‘Fleet’’.
d. Adding the definition of ‘‘Work
Truck’’ in alphabetical order.
The additions and revisions read as
follows:
§ 490.2

Definitions.

*

*
*
*
*
Alternative Fueled Vehicle means a
dedicated vehicle or a dual fueled
vehicle, as those terms are defined in
this section.
*
*
*
*
*
Automobile means a 4-wheeled
vehicle that is propelled by
conventional fuel, or by alternative fuel,
manufactured primarily for use on
public streets, roads, and highways and
having a gross vehicle weight rating of
less than 10,000 pounds, except:
(1) A vehicle operated only on a rail
line;
(2) A vehicle manufactured in
different stages by two or more original
equipment manufacturers, if no
intermediate or final-stage original
equipment manufacturer of that vehicle
manufactures more than 10,000 multistage vehicles per year; or
(3) A work truck, as that term is
defined in this section.
Capable of Being Centrally Fueled
means that a vehicle can be refueled at
least 75 percent of the time at a location
that is owned, operated, or controlled by
the fleet or covered person, or is under
contract with the fleet or covered person
for refueling purposes.
Dedicated Vehicle means—
(1) An automobile that operates solely
on one or more alternative fuels; or
(2) A motor vehicle, other than an
automobile, that operates solely on one
or more alternative fuels.
Dual Fueled Vehicle means—
(1) An automobile that meets the
criteria for a dual fueled automobile as
set forth in 49 U.S.C. 32901(a)(9); or
(2) A motor vehicle, other than an
automobile, that is capable of operating
on alternative fuel and on gasoline or
diesel.
*
*
*
*
*
Fleet means a group of 20 or more
light duty motor vehicles, excluding
certain categories of vehicles as
provided by § 490.3 of this part, used
primarily in a metropolitan statistical
area or consolidated metropolitan
statistical area, as established by the
Bureau of the Census as of December 31,
1992, with a 1980 Census population of
more than 250,000 (listed in Appendix
A to this Subpart), that are centrally

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Federal Register / Vol. 76, No. 210 / Monday, October 31, 2011 / Proposed Rules
fueled or capable of being centrally
fueled, and are owned, operated, leased,
or otherwise controlled—
(1) By a person who owns, operates,
leases, or otherwise controls 50 or more
light duty motor vehicles within the
United States and its possessions and
territories;
(2) By any person who controls such
person;
(3) By any person controlled by such
person; or
(4) By any person under common
control with such person.
*
*
*
*
*
Work Truck means a vehicle having a
gross vehicle weight rating of more than
8,500 and less than or equal to 10,000
pounds that is not a medium-duty
passenger vehicle as that term is defined
in 40 CFR 86.1803–01.
3. Section 490.3, paragraph (e), is
revised to read as follows:

c. Removing, in paragraph (f), the
word ‘‘State’s’’ and adding in its place,
‘‘covered person’s’’.
The additions read as follows:
§ 490.307 Process for granting
exemptions.

*
*
*
*
(b) * * *
(5) * * *
(iv) Dedicated vehicle or dual fueled
vehicle;
*
*
*
*
*
(vi) A description of all efforts made
to acquire alternative fueled vehicle
credits; and
*
*
*
*
*

(a)(1) * * *
(2) Requests for exemption must be
accompanied by supporting
documentation, must be submitted no
earlier than September 1 following the
model year for which the exemption is
sought and no later than January 31
following the model year for which the
exemption is sought, and will only be
considered following submission of the
annual report under § 490.308 of this
part. A fleet may not request exemptions
within 90 days of selling any or all of
its banked credits. Any such exemption
request will be denied.
*
*
*
*
*
(c) * * *
(4) If DOE, in response to a request for
exemption, seeks clarification or
additional information from the covered
person, such clarification or additional
information must be submitted to DOE
in accordance with paragraph (a)(1) of
this section within 30 days of DOE’s
inquiry. In the event a covered person
does not comply with this timeframe,
DOE will proceed under paragraph (f) of
this section based on the documentation
provided to date.
*
*
*
*
*

§ 490.202 Acquisitions satisfying the
mandate.

Subpart D—[Amended]

§ 490.309

*

§ 490.302

11. Section 490.309 is redesignated as
§ 490.308, and newly redesignated
§ 490.308 is amended by:
a. Removing ‘‘or section 490.307,’’
from paragraph (a); and
b. Revising paragraph (b)(5)(iv);
c. Adding a new paragraph (b)(5)(vi).
The revision and addition read as
follows:

§ 490.3

Excluded vehicles.

*

*
*
*
*
(e) Emergency motor vehicles
including vehicles directly used in the
emergency repair of transmission lines
and in the restoration of electricity
service following power outages;
*
*
*
*
*
Subpart C—[Amended]
4. Section 490.202, paragraph (a), is
revised to read as follows:

*
*
*
*
(a) The purchase or lease of an
Original Equipment Manufacturer light
duty vehicle (regardless of the model
year of manufacture) that is an
alternative fueled vehicle and that was
not previously under the control of the
State or State agency;
*
*
*
*
*
5. Section 490.204 is amended by:
a. Revising paragraph (b);
b. Redesignating paragraphs (g)
through (h) as paragraphs (h) through
(i); and
c. Adding a new paragraph (g).
The revision and addition read as
follows:
§ 490.204 Process for granting
exemptions.
mstockstill on DSK4VPTVN1PROD with PROPOSALS2

considered following submission of the
annual report under § 490.205 of this
part. A fleet may not request exemptions
within 90 days of selling any or all of
its banked credits. Any such exemption
request will be denied.
*
*
*
*
*
(g) If DOE, in response to a request for
exemption, seeks clarification or
additional information from the State,
such clarification or additional
information must be submitted to DOE
in accordance with paragraph (f) of this
section within 30 days of DOE’s inquiry.
In the event a State does not comply
with this timeframe, DOE will proceed
under paragraph (h) of this section
based on the documentation provided to
date.
*
*
*
*
*
6. Section 490.205 is amended by:
a. Revising paragraph (b)(5)(iv); and
b. Adding a new paragraph (b)(5)(vi).
The revision and addition read as
follows:

67309

§ 490.205

§ 490.305 Acquisitions satisfying the
mandate.

(a) The purchase or lease of an
Original Equipment Manufacturer light
duty vehicle (regardless of the model
year of manufacture) that is an
alternative fueled vehicle and that was
not previously under the control of the
covered person;
*
*
*
*
*

17:39 Oct 28, 2011

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[Removed]

9. Section 490.307 is removed.

*

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[Amended]

7. Section 490.302 is amended by
removing the reference ‘‘section
490.308’’ in paragraph (e) and adding in
its place ‘‘ § 490.307.’’
8. Section 490.305, paragraph (a), is
revised to read as follows:

§ 490.307

*
*
*
*
(b) Requests for exemption must be
accompanied by supporting
documentation, must be submitted no
earlier than September 1 following the
model year for which the exemption is
sought and no later than January 31
following the model year for which the
exemption is sought, and will only be

Reporting requirements.

*

§ 490.308

[Redesignated as § 490.307]

10. Section 490.308 is redesignated as
§ 490.307 and newly redesignated
§ 490.307 is amended by:
a. Adding ‘‘(1)’’ after the letter ‘‘(a)’’
in paragraph (a);
b. Adding new paragraphs (a)(2), and
(c)(4); and

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§ 490.308

[Redesignated as § 490.308]

Annual reporting requirements.

*

*
*
*
*
(b) * * *
(5) * * *
(iv) Dedicated vehicle or dual fueled
vehicle;
*
*
*
*
*
(vi) A description of all efforts made
to acquire alternative fueled vehicle
credits; and
*
*
*
*
*
§ 490.310

[Redesignated as § 490.309]

12. Section 490.310 is redesignated as
§ 490.309.
Subpart F—[Amended]
13. Section 490.500 is revised to read
as follows:

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§ 490.500

Federal Register / Vol. 76, No. 210 / Monday, October 31, 2011 / Proposed Rules
Purpose and scope.

This subpart implements the statutory
requirements of section 508 of the Act,
which provides for the allocation of
credits to fleets or covered persons that:
(a) Acquire alternative fueled vehicles
in excess of the number they are
required to acquire under this part or
obtain alternative fueled vehicles before
the model year when they are required
to do so under this part;
(b) Acquire certain other vehicles; or
(c) Invest in qualified alternative fuel
infrastructure or non-road equipment or
an emerging technology.
14. Section 490.501 is revised to read
as follows:

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§ 490.501

Definitions.

In addition to the definitions found in
§ 490.2 of this part, the following
definitions apply to this subpart:
Alternative Fuel Infrastructure means
property that is for:
(1) The storage and dispensing of an
alternative fuel into the fuel tank of a
motor vehicle propelled by such fuel; or
(2) The recharging of motor vehicles
propelled by electricity.
Alternative Fuel Non-road Equipment
means mobile, non-road equipment that
operates on alternative fuel (including
but not limited to forklifts, tractors,
bulldozers, backhoes, front-end loaders,
and rollers/compactors).
Emerging Technology means a preproduction or pre-commercially
available version of a fuel cell electric
vehicle, hybrid electric vehicle,
medium- or heavy-duty electric vehicle,
neighborhood electric vehicle, or plugin electric drive vehicle, as such
vehicles are defined in this section.
Fuel Cell Electric Vehicle means a
motor vehicle or non-road vehicle that
uses a fuel cell, as that term is defined
in section 803 of the Spark M.
Matsunaga Hydrogen Act of 2005 (42
U.S.C. 16152(1)).
Hybrid Electric Vehicle means a new
qualified hybrid motor vehicle as
defined in section 30B(d)(3) of the
Internal Revenue Code of 1986 (26
U.S.C. 30B(d)(3)).
Medium- or Heavy-Duty Electric
Vehicle means an electric, hybrid
electric, or plug-in hybrid electric
vehicle with a gross vehicle weight
rating of more than 8,500 pounds.
Medium- or Heavy-Duty Fuel Cell
Electric Vehicle means a fuel cell
electric vehicle with a gross vehicle
weight rating of more than 8,500
pounds.
Neighborhood Electric Vehicle means
a 4-wheeled on-road or non-road vehicle
that—
(1) Has a top attainable speed in 1
mile of more than 20 mph and not more

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than 25 mph on a paved level surface;
and
(2) Is propelled by an electric motor
and an on-board, rechargeable energy
storage system that is rechargeable using
an off-board source of electricity.
Plug-in Electric Drive Vehicle means a
vehicle that—
(1) Draws motive power from a battery
with a capacity of at least 4 kilowatthours;
(2) Can be recharged from an external
source of electricity for motive power;
(3) Is a light-, medium-, or heavy-duty
motor vehicle or non-road vehicle, as
those terms are defined in section 216
of the Clean Air Act (42 U.S.C. 7550);
and
(4) In the case of a plug-in hybrid
electric vehicle, also includes an onboard method of charging the energy
storage system and/or providing motive
power.
15. Section 490.502 is revised to read
as follows:
§ 490.502

Applicability.

This subpart applies to all fleets and
covered persons that are required to
acquire alternative fueled vehicles by
this part.
16. Section 490.503 is revised to read
as follows:
§ 490.503

Creditable actions.

A fleet or covered person becomes
entitled to alternative fueled vehicle
credits, at the allocation levels specified
in § 490.504 of this part, by:
(a)(1) Acquiring light duty alternative
fueled vehicles, including those in
excluded categories under § 490.3 of
this part, in excess of the number of
light duty alternative fueled vehicles
that the fleet or covered person is
required to acquire in a model year
when acquisition requirements apply
under § 490.201 or § 490.302 of this
part;
(2) Acquiring alternative fueled
vehicles, including those in excluded
categories under § 490.3 of this part,
with a gross vehicle weight rating of
more than 8,500 pounds, in excess of
the number of light duty alternative
fueled vehicles that the fleet or covered
person is required to acquire in a model
year when acquisition requirements
apply under § 490.201 or § 490.302 of
this part;
(3) Acquiring any of the following
vehicles in excess of the number of light
duty alternative fueled vehicles that the
fleet or covered person is required to
acquire in a model year when
acquisition requirements apply under
§ 490.201 or § 490.302 of this part:
(i) Medium- or heavy-duty fuel cell
electric vehicles that are not alternative
fueled vehicles; or

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(ii) Medium- or heavy-duty electric
vehicles that are not alternative fueled
vehicles;
(b) Acquiring alternative fueled
vehicles, including those in excluded
categories under § 490.3 of this part and
those with a gross vehicle weight rating
of more than 8,500 pounds, in model
years before the model year when that
fleet or covered person is first required
to acquire light duty alternative fueled
vehicles under § 490.201 or § 490.302 of
this part;
(c) Investing, in a model year when
acquisition requirements apply under
§ 490.201 or § 490.302 of this part, at
least $25,000 in an emerging technology
or alternative fuel infrastructure or
alternative fuel non-road equipment,
provided that:
(1) The technology, infrastructure, or
equipment is put into operation during
the year in which the fleet has applied
for credits;
(2) In the case of an emerging
technology, the amount invested by the
fleet or covered person is not the basis
for credit under paragraphs (a), (b), or
(d) of this section; and
(3) In the case of alternative fuel nonroad equipment, the equipment is being
operated on alternative fuel, within the
constraints of best practices and
seasonal fuel availability; or
(d) Acquiring, in a model year when
acquisition requirements apply under
§ 490.201 or § 490.302 of this part, any
of the following vehicles, including
those in excluded categories under
§ 490.3 of this part:
(1) A hybrid electric vehicle that is a
light duty motor vehicle, but that is not
an alternative fueled vehicle;
(2) A plug-in electric drive vehicle
that is a light duty motor vehicle, but
that is not an alternative fueled vehicle;
(3) A fuel cell electric vehicle that is
a light duty motor vehicle, but that is
not an alternative fueled vehicle; or
(4) A neighborhood electric vehicle.
(e) For purposes of this subpart, a fleet
or covered person that acquired a motor
vehicle on or after October 24, 1992, and
converted it to an alternative fueled
vehicle before April 15, 1996, shall be
entitled to a credit for that vehicle
notwithstanding the time limit on
conversions established by
§§ 490.202(a)(3) and 490.305(a)(3) of
this part.
17. Section 490.504 is revised to read
as follows:
§ 490.504

Credit allocation.

(a) Based on annual credit activity
report information, as described in
§ 490.508 of this subpart, DOE shall
allocate:
(1) One alternative fueled vehicle
credit for each alternative fueled

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Federal Register / Vol. 76, No. 210 / Monday, October 31, 2011 / Proposed Rules
vehicle, regardless of the vehicle’s gross
vehicle weight rating, that a fleet or
covered person acquires in excess of the
number of light duty alternative fueled
vehicles that the fleet or covered person
is required to acquire in a model year
when acquisition requirements apply
under § 490.201 or § 490.302 of this
part; and
(2) One-half of an alternative fueled
vehicle credit for each medium- or
heavy-duty fuel cell electric vehicle that
is not an alternative fueled vehicle and
each medium- or heavy-duty electric
vehicle that is not an alternative fueled
vehicle that a fleet or covered person
acquires in excess of the number of light
duty alternative fueled vehicles that the
fleet or covered person is required to
acquire in a model year when
acquisition requirements apply under
§ 490.201 or § 490.302 of this part.
(b) If an alternative fueled vehicle,
regardless of the vehicle’s gross vehicle
weight rating, is acquired by a fleet or
covered person in a model year before
the first model year that fleet or covered
person is required to acquire light duty
alternative fueled vehicles by this part,
as reported in the annual credit activity
report, DOE shall allocate one credit per
alternative fueled vehicle for each year
the alternative fueled vehicle is
acquired before the model year when
acquisition requirements apply.
(c) DOE shall allocate credits to fleets
and covered persons under paragraph
(b) of this section only for alternative
fueled vehicles acquired on or after
October 24, 1992.
(d) Based on annual credit activity
report information, as described in
§ 490.508 of this subpart, DOE shall
allocate alternative fueled vehicle credit
in the amount set forth below for each
of the following vehicles that a fleet or
covered person acquires in a model year
when acquisition requirements apply
under § 490.201 or § 490.302 of this
part:
(1) A hybrid electric vehicle that is a
light duty motor vehicle, but that is not
an alternative fueled vehicle—1⁄2 credit;
(2) A plug-in electric drive vehicle
that is a light duty motor vehicle, but
that is not an alternative fueled
vehicle—1⁄2 credit;
(3) A fuel cell electric vehicle that is
a light duty motor vehicle, but that is
not an alternative fueled vehicle—1⁄2
credit; and
(4) A neighborhood electric vehicle—
1⁄4 credit.
(e) Based on annual credit activity
report information, as described in
§ 490.508 of this subpart, DOE shall
allocate one alternative fueled vehicle
credit for every $25,000 that a fleet or
covered person invests, in a model year

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when acquisition requirements apply
under § 490.201 or § 490.302 of this
part, in:
(1) Alternative fuel infrastructure that
is:
(i) Publicly accessible, provided that
the maximum number of credits under
this paragraph shall not exceed ten for
the model year and the alternative fuel
infrastructure became operational in the
same model year, and provided further
that the total number of credits allocated
under this paragraph (e)(1)(i) and
paragraph (e)(1)(ii) of this section do not
exceed ten in a given model year; or
(ii) Not publicly accessible, provided
that the maximum number of credits
under this paragraph shall not exceed
five for the model year and the
alternative fuel infrastructure became
operational in the same model year, and
provided further that the total number
of credits allocated under this paragraph
(e)(1)(ii) and paragraph (e)(1)(i) of this
section do not exceed ten in a given
model year;
(2) Alternative fuel non-road
equipment, provided that the maximum
number of credits under this paragraph
(e) shall not exceed five for the model
year, and provided further that the
equipment is being operated on
alternative fuel; and
(3) An emerging technology, provided
that the maximum number of credits
under this paragraph (e) shall not
exceed five for the model year, and
provided further that the amount for
which credit is allocated under this
paragraph has not been the basis for
credit allocation under paragraphs (a),
(b), or (d) of this section.
(f) A fleet or covered person may
aggregate the amount of money invested
in a model year on alternative fuel
infrastructure, alternative fuel non-road
equipment, and emerging technology
such that funds from multiple categories
may be used to achieve the $25,000
threshold for the purpose of earning an
alternative fueled vehicle credit, so long
as no funds are aggregated from a
category for which the fleet has already
been allocated the maximum number of
credits allowed for that category, as set
forth in paragraph (e) of this section.
18. Section 490.505 is revised to read
as follows:
§ 490.505
credits.

Use of alternative fueled vehicle

(a) At the request of a fleet or covered
person in an annual report under this
part, DOE shall treat each credit as the
acquisition of an alternative fueled
vehicle that the fleet or covered person
is required to acquire under this part.
Each credit shall count as the
acquisition of one alternative fueled

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67311

vehicle in the model year for which the
fleet or covered person requests the
credit to be applied.
(b) If an annual report shows that the
fleet or covered person did not meet its
acquisition requirements under
§ 490.201 or § 490.302 of this part, and
the fleet or covered person has credits
in its credit account under § 490.506,
DOE will apply the number of credits
needed from those available to offset the
shortfall. Each credit shall count as the
acquisition of one alternative fueled
vehicle in the model year of the subject
annual report.
19. Section 490.506 is revised to read
as follows:
§ 490.506

Credit accounts.

(a) DOE shall establish a credit
account for each fleet or covered person
who obtains an alternative fueled
vehicle credit.
(b) DOE shall send to each fleet and
covered person an annual credit account
balance statement after the receipt of its
credit activity report under § 490.508.
20. Section 490.507 is revised to read
as follows:
§ 490.507 Alternative fueled vehicle credit
transfers.

(a) Any fleet or covered person that is
required to acquire alternative fueled
vehicles may transfer an alternative
fueled vehicle credit to—
(1) A fleet that is required to acquire
alternative fueled vehicles; or
(2) A covered person subject to the
requirements of this part, if the
transferor provides certification to the
covered person that the credit
represents a vehicle that operates solely
on alternative fuel.
(b) Proof of credit transfer may be on
a form provided by DOE, or otherwise
in writing, and must include dated
signatures of the transferor and
transferee. The proof should be received
by DOE within 30 days of the transfer
date at the Office of Energy Efficiency
and Renewable Energy, U.S. Department
of Energy, EE–2G, 1000 Independence
Avenue SW., Washington, DC 20585–
0121, or such other address as DOE
publishes in the Federal Register.
21. Section 490.508 is revised to read
as follows:
§ 490.508 Credit activity reporting
requirements.

(a) A covered person or fleet applying
for allocation of alternative fueled
vehicle credits must submit a credit
activity report by the December 31 after
the close of a model year to the Office
of Energy Efficiency and Renewable
Energy, U.S. Department of Energy, EE–
2G, 1000 Independence Avenue SW.,

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Federal Register / Vol. 76, No. 210 / Monday, October 31, 2011 / Proposed Rules

Washington, DC 20585–0121, or such
other address as DOE may publish in
the Federal Register.
(b) This report must include the
following information:
(1) Number of alternative fueled
vehicle credits requested for:
(i) Light duty alternative fueled
vehicles acquired in excess of the
required acquisition number;
(ii) Alternative fueled vehicles with a
gross vehicle weight rating of more than
8,500 pounds acquired in excess of the
required acquisition number;
(iii) Medium- or heavy-duty fuel cell
electric vehicles that are not alternative
fueled vehicles, acquired in excess of
the required acquisition number;
(iv) Medium- or heavy-duty electric
vehicles that are not alternative fueled
vehicles, acquired in excess of the
required acquisition number;
(v) Light duty alternative fueled
vehicles acquired in model years before
the first model year the fleet or covered
person is required to acquire light duty
alternative fueled vehicles by this part;
(vi) Alternative fueled vehicles with a
gross vehicle weight rating of more than
8,500 pounds acquired before the first
model year the fleet or covered person
is required to acquire light duty
alternative fueled vehicles by this part;
(vii) The acquisition of light duty
hybrid electric vehicles that are not
alternative fueled vehicles;
(viii) The acquisition of light duty
plug-in electric drive vehicles that are
not alternative fueled vehicles;
(ix) The acquisition of light duty fuel
cell electric vehicles that are not
alternative fueled vehicles; and
(x) The acquisition of neighborhood
electric vehicles.
(2) Number of alternative fueled
vehicle credits, in whole number values,
requested for each of the following:
(i) Investment in alternative fuel
infrastructure;
(ii) Investment in alternative fuel nonroad equipment; and
(iii) Investment in an emerging
technology.
(3) For investment in alternative fuel
infrastructure, supporting
documentation and a written statement,
certified by a responsible official of the
fleet or covered person, indicating or
providing:
(i) The model year or period in which
the investment was made;
(ii) The amount of money invested by
the fleet or covered person and to whom
the money was provided;
(iii) The physical location(s) (address
and zip code) and a detailed description
of the alternative fuel infrastructure,
including the name and address of the
construction/installation company

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(where appropriate), whether the
infrastructure is publicly accessible, and
the type(s) of alternative fuel offered;
and
(iv) The date on which the alternative
fuel infrastructure became operational.
(4) For investment in alternative fuel
non-road equipment, supporting
documentation and a written statement,
certified by a responsible official of the
fleet or covered person, indicating or
providing:
(i) The model year or period in which
the investment was made;
(ii) The amount of money invested by
the fleet or covered person and to whom
the money was provided; and
(iii) A detailed description of the
alternative fuel non-road equipment,
including the name and address of the
manufacturer, the type(s) of alternative
fuel on which the equipment is capable
of being operated, a certification that the
equipment is being operated on that
alternative fuel, and the date on which
the fleet or covered person purchased
the equipment and the date on which it
was put into operation.
(5) For investment in an emerging
technology, supporting documentation
and a written statement, certified by a
responsible official of the fleet or
covered person, indicating or providing:
(i) The model year or period in which
the investment was made;
(ii) The amount of money invested by
the fleet or covered person and to whom
the money was provided;
(iii) A certification that the emerging
technology’s acquisition is not included
in paragraph (b)(1) of this section and
the amount invested is not included in
paragraph (b)(3)(ii) or (b)(4)(ii) of this
section; and
(iv) A detailed description of the
emerging technology, including the
name and address of the manufacturer
and the date on which the fleet or
covered person purchased the emerging
technology and the date on which it was
put it into operation.
(6) The total number of alternative
fueled vehicle credits requested by the
fleet or covered person, calculated by
adding the two subtotals under
paragraphs (b)(1) and (b)(2) of this
section and then rounding the aggregate
figure to the nearest whole number; in
rounding to the nearest whole number,
any fraction equal to or greater than one
half shall be rounded up and any
fraction less than one half shall be
rounded down.
(7) Purchases of alternative fueled
vehicle credits:
(i) Credit source; and
(ii) Date of purchase;
(8) Sales of alternative fueled vehicle
credits:

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(i) Credit purchaser; and
(ii) Date of sale.
Subpart I—[Amended]
22. Section 490.804, paragraph (c) is
revised to read as follows:
§ 490.804 Eligible reductions in petroleum
consumption.

*

*
*
*
*
(c) Rollover of excess petroleum
reductions. (1) Upon approval by DOE,
petroleum fuel use reductions achieved
by a fleet in excess of the amount
required for alternative compliance in a
previous model year may be applied
towards the fleet’s petroleum fuel use
reduction requirement under
§ 490.803(a) of this part in another
model year for which a waiver is
granted.
(2)(i) A fleet seeking to roll over for
future use the petroleum fuel use
reductions that it achieved in excess of
the amount required for alternative
compliance in a particular model year
must make a written request to DOE as
part of the fleet’s annual report required
under § 490.807 of this part for the
model year in which the reductions
were achieved.
(ii) A fleet seeking to apply, in a later
model year for which a waiver was
granted, any excess petroleum fuel use
reductions rolled over pursuant to
paragraph (c)(2)(i) of this section must
make a written request to DOE as part
of the fleet’s annual report required for
that model year under § 490.807 of this
part. The written request must specify
the amount of the rollover reductions
(in GGE) the fleet wishes to have
applied and the total balance of rollover
reductions (in GGE) the fleet possesses.
(3) DOE will apply approved rollover
reductions to a model year for which a
waiver was granted but the fleet’s
required reduction in petroleum fuel
use was not achieved only to the extent
that additional reductions attributable to
motor vehicles were not reasonably
available.
*
*
*
*
*
23. Section 490.805 is amended by
removing paragraph (b)(3) and revising
paragraph (b)(2) to read as follows:
§ 490.805

Application for waiver.

*

*
*
*
*
(b) * * *
(2) A complete waiver application
must be received by DOE no later than
July 31 prior to the model year for
which a waiver is sought.
*
*
*
*
*

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Federal Register / Vol. 76, No. 210 / Monday, October 31, 2011 / Proposed Rules
24. Section 490.809 is revised to read
as follows:
§ 490.809

Violations.

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If a State or covered person that
received a waiver under this subpart
fails to comply with the petroleum

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motor fuel reduction or reporting
requirements of this subpart, DOE will
revoke the waiver and may impose on
the State or covered person a penalty
under subpart G of this part. A State or
covered person whose waiver has been
revoked by DOE is precluded from

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requesting an exemption under
§ 490.204 or § 490.307 of this part from
the vehicle acquisition mandate for the
model year of the revoked waiver.
[FR Doc. 2011–26761 Filed 10–28–11; 8:45 am]
BILLING CODE 6450–01–P

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