[Federal Register Volume 86, Number 63 (Monday, April 5, 2021)]
[Notices]
[Pages 17594-17595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06919]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2021-0076; FRL-10020-64-OAR]


Alternative Method for Calculating Off-Cycle Credits Under the 
Light-Duty Vehicle Greenhouse Gas Emissions Program: Application From 
Fiat Chrysler Automobiles NV (FCA)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is requesting 
comment on an application from Fiat Chrysler Automobiles NV (FCA) for 
off-cycle carbon dioxide (CO2) credits under EPA's light-
duty vehicle greenhouse gas emissions standards. ``Off-cycle'' emission 
reductions can be achieved by employing technologies that result in 
real-world benefits, but where that benefit is not adequately captured 
on the test procedures used by manufacturers to demonstrate compliance 
with emission standards. EPA's light-duty vehicle greenhouse gas 
program acknowledges these benefits by giving automobile manufacturers 
several options for generating ``off-cycle'' CO2 credits. 
Under the regulations, a manufacturer may apply for CO2 
credits for off-cycle technologies that result in off-cycle benefits. 
In these cases, a manufacturer must provide EPA with a proposed 
methodology for determining the real-world off-cycle benefit. FCA has 
submitted an application that describes a methodology for determining 
off-cycle credits from technologies described in their application. 
Pursuant to applicable regulations, EPA is making this off-cycle credit 
calculation methodology available for public comment.

DATES: Comments must be received on or before May 5, 2021.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ- 
OAR-2021-0076 to the Federal eRulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or withdrawn. The 
EPA may publish any comment received to its public docket. Do not 
submit electronically any information you consider to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Multimedia submissions (audio, video, etc.) must 
be accompanied by a written comment. The written comment is considered 
the official comment and should include discussion of all points you 
wish to make. The EPA will generally not consider comments or comment 
contents located outside of the primary submission (i.e. on the web, 
cloud, or other file sharing system). For additional submission 
methods, the full EPA public comment policy, information about CBI or 
multimedia submissions, and general guidance on making effective 
comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Linc Wehrly, Office of Transportation 
and Air Quality, Compliance Division, U.S. Environmental Protection 
Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105. Telephone: (734) 
214-4286. Fax: (734) 214-4869. Email address: wehrly.linc@epa.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    EPA's light-duty vehicle greenhouse gas (GHG) program provides 
three pathways by which a manufacturer may accrue off-cycle carbon 
dioxide (CO2) credits for those technologies that achieve 
CO2 reductions in the real world but where those reductions 
are not adequately captured on the test used to determine compliance 
with the CO2 standards, and which are not otherwise 
reflected in the standards' stringency. The first pathway is a 
predetermined list of credit values for specific off-cycle technologies 
that may be used beginning in model year 2014.\1\ This pathway allows 
manufacturers to use conservative credit values established by EPA for 
a wide range of technologies, with minimal data submittal or testing 
requirements, if the technologies meet EPA regulatory definitions. In 
cases where the off-cycle technology is not on the menu but additional 
laboratory testing can demonstrate emission benefits, a second pathway 
allows manufacturers to use a broader array of emission tests (known as 
``5-cycle'' testing because the methodology uses five different testing 
procedures) to demonstrate and justify off-cycle CO2 
credits.\2\ The additional emission tests allow emission benefits to be 
demonstrated over some elements of real-world driving not adequately 
captured by the GHG compliance tests, including high speeds, hard 
accelerations, and cold temperatures. These first two methodologies 
were completely defined through notice and comment rulemaking and 
therefore no additional process is necessary for manufacturers to use 
these methods. The third and last pathway allows manufacturers to seek 
EPA approval to use an alternative methodology for determining the off-
cycle CO2 credits.\3\ This option is only available if the 
benefit of the technology cannot be adequately demonstrated using the 
5-cycle methodology. Manufacturers may also use this option to 
demonstrate reductions that exceed those available via use of the 
predetermined list. Under the regulations, a manufacturer seeking to 
demonstrate off-cycle credits with an alternative methodology (i.e., 
under the third pathway described above) must describe a methodology 
that meets the following criteria:
---------------------------------------------------------------------------

    \1\ See 40 CFR 86.1869-12(b).
    \2\ See 40 CFR 86.1869-12(c).
    \3\ See 40 CFR 86.1869-12(d).
---------------------------------------------------------------------------

     Use modeling, on-road testing, on-road data collection, or 
other approved analytical or engineering methods;
     Be robust, verifiable, and capable of demonstrating the 
real-world emissions benefit with strong statistical significance;
     Result in a demonstration of baseline and controlled 
emissions over a wide range of driving conditions and number of 
vehicles such that issues of data uncertainty are minimized;
     Result in data on a model type basis unless the 
manufacturer demonstrates that another basis is appropriate and 
adequate.
    In addition, the regulations specify the following requirements 
regarding an application for off-cycle CO2 credits:
     A manufacturer requesting off-cycle credits must develop a 
methodology for demonstrating and determining the benefit of the off-
cycle technology and carry out any necessary testing and analysis 
required to support that methodology.
     A manufacturer requesting off-cycle credits must conduct 
testing and/or prepare engineering analyses that demonstrate the in-use 
durability of the

[[Page 17595]]

technology for the full useful life of the vehicle.
     The application must contain a detailed description of the 
off-cycle technology and how it functions to reduce CO2 
emissions under conditions not represented on the FTP and HFET 
compliance tests.
     The application must contain a list of the vehicle 
model(s) which will be equipped with the technology.
     The application must contain a detailed description of the 
test vehicles selected and an engineering analysis that supports the 
selection of those vehicles for testing.
     The application must contain all testing and/or simulation 
data required under the regulations, plus any other data the 
manufacturer has considered in the analysis.
    Finally, the alternative methodology must be approved by EPA prior 
to the manufacturer using it to generate credits. As part of the review 
process defined by regulation, an application for credits using an 
alternative methodology submitted to EPA for consideration must be made 
available for public comment, unless EPA has previously approved the 
alternative methodology for determining credits and has chosen to waive 
the notice and comment period for an application that meets the 
regulatory requirements for such a waiver. Further, EPA retains the 
option to require a notice and opportunity for public comment in cases 
where a new application deviates in significant respects from a 
previously approved methodology or raises novel substantive issues.\4\ 
EPA will consider public comments as part of its final decision to 
approve or deny the request for off-cycle credits.
---------------------------------------------------------------------------

    \4\ See 40 CFR 86.1869-12(d)(2).
---------------------------------------------------------------------------

II. Off-Cycle Credit Application

Active Climate Control Seat Technology

    Using the alternative methodology approach discussed above, FCA is 
requesting off-cycle greenhouse gas (``GHG'') credits for the use of a 
Gentherm active climate control seating (``ACCS'') technologies. The 
company's analysis in their application yields a GHG credit equal to 
2.3 grams CO2 per mile for passenger cars and 2.9 grams 
CO2 per mile for trucks on vehicles equipped with this 
technology in the front seating locations.
    Active seat ventilation credits were defined in the 2017-2025 light 
duty greenhouse gas and CAFE rulemaking and were added to the 
predefined list of credits that could be claimed at 1.0 grams 
CO2 per mile and 1.3 grams CO2 per mile for 
trucks. The credits and their values were determined in a 2005 study 
performed by researchers from the National Renewable Energy Laboratory 
(``NREL'') in which they evaluated a seat ventilation system that used 
two small fans to pull air through the seat. When occupant comfort is 
achieved the air conditioning system no longer needs to work as hard to 
cool down the cabin. This translates to lowered air conditioning 
consumption and lower GHG emissions due to lowered air conditioning 
consumption while improving occupant comfort.
    The NREL study was published as an SAE technical paper in 2007 
available at https://www.sae.org/publications/technicalpapers/content/2007-01-1194/. More recent advances in ventilated seat technology offer 
higher levels of performance in current vehicles over the simpler 
ventilated seat system that was the subject of the 2005 NREL study. The 
active climate-controlled seat technology developed by Gentherm and 
used in FCA premium products was subsequently evaluated by Gentherm in 
cooperation with NREL using comparable methodologies to those employed 
by NREL in 2005. The more advanced Gentherm ACCS system provides a 
greater level of comfort resulting in lower air conditioning 
consumption and air conditioning related emissions through the use of 
its active cooling technology. Details are provided in the application 
by FCA.
    FCA's request is for approval of similar methodology and for the 
same amount of credits per vehicle granted in the General Motors 
request to EPA for off-cycle.
    Credit dated September 29, 2017 and subsequently granted in EPA 
decision document EPA-420-R-18-014. Details of FCA's analysis and the 
approved request by General Motors can be found in the corresponding 
the manufacturer's applications.

III. EPA Decision Process

    EPA has reviewed the application for completeness and is now making 
the application available for public review and comment as required by 
the regulations. The off-cycle credit application submitted by the 
manufacturer (with confidential business information redacted) has been 
placed in the public docket (see ADDRESSES section above) and on EPA's 
website at https://www.epa.gov/vehicle-and-engine-certification/compliance-information-light-duty-greenhouse-gas-ghg-standards.
    EPA is providing a 30-day comment period on the application for 
off-cycle credits described in this notice, as specified by the 
regulations. The manufacturer may submit a written rebuttal of comments 
for EPA's consideration, or may revise an application in response to 
comments. After reviewing any public comments and any rebuttal of 
comments submitted by the manufacturer, EPA will make a final decision 
regarding the credit request. EPA will make its decision available to 
the public by placing a decision document on EPA's website at the same 
manufacturer-specific page described above.

Byron Bunker,
Director, Compliance Division, Office of Transportation and Air 
Quality, Office of Air and Radiation.
[FR Doc. 2021-06919 Filed 4-2-21; 8:45 am]
BILLING CODE 6560-50-P


