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Federal Register / Vol. 86, No. 169 / Friday, September 3, 2021 / Proposed Rules adjustments or improvement values under NHTSAs program for: 1
Technologies that cannot be measured or cannot be fully measured on the 2cycle test procedure, i.e., off-cycle technologies; and 2 A/C efficiency improvements that also improve fuel economy but cannot be measured on the 2-cycle test procedure. Additionally, both agencies programs give manufacturers compliance incentives through MY 2021, and proposed to be extended to MY 2026 in this NPRM, for utilizing specified technologies on fullsize pickup trucks, such as hybridization, or full-size pickup trucks that overperform their fuel economy stringency target values by greater than a specified amount.
The following sections outline how NHTSA determines whether manufacturers are in compliance with CAFE standards for each model year, and how manufacturers may use compliance flexibilities, or alternatively address noncompliance through civil penalties. Moreover, it explains how manufacturers submit data and information to the agency. This includes a detailed discussion of NHTSAs standardized CAFE reporting template adopted as a part of the 2020 final rule, and the standardized template for reporting credit transactions. In the 2020 final rule, NHTSA also adopted requirements for manufacturers to provide information on terms of credit trades. In this rulemaking, NHTSA is proposing to make changes to its reporting and credit templates and to issue a new template to clarify the required reporting information for credit trades. These new requirements were intended to streamline reporting and data collection from manufacturers, in addition to helping the agency use the best available data to inform CAFE
program decision makers.
2. How does NHTSA determine compliance?

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a Manufacturers Submit Data to NHTSA and EPA and the Agencies Validate Results EPCA, as amended by EISA, in 49
U.S.C. 32907, requires manufacturers to submit reports to the Secretary of Transportation explaining how they will comply with the CAFE standards for the model year for which the report is made; the actions a manufacturer has taken or intends to take to comply with the standard; and other information the Secretary requires by regulation.505 A
manufacturer must submit a report containing this information during the
30-day period before the beginning of each model year, and during the 30-day period beginning the 180th day of the model year.506 When a manufacturer determines it is unlikely to comply with a CAFE standard, the manufacturer must report additional actions it intends to take to comply and include a statement about whether those actions are sufficient to ensure compliance.507
To implement these reporting requirements, NHTSA issued 49 CFR
part 537, Automotive Fuel Economy Reports, which specifies three types of CAFE reports that manufacturers must submit.508 A manufacturer must first submit a pre-model year PMY report containing the manufacturers projected compliance information for that upcoming model year. By regulation, the PMY report must be submitted in December of the calendar year prior to the corresponding model year.509
Manufacturers must then submit a midmodel year MMY report containing updated information from manufacturers based upon actual and projected information known midway through the model year. By regulation, the MMY report must be submitted by the end of July for the applicable model year.510 Finally, manufacturers must submit a supplementary report to supplement or correct previously submitted information, as specified in NHTSAs regulation.511
If a manufacturer wishes to request confidential treatment for a CAFE
report, it must submit both a confidential and redacted version of the report to NHTSA. CAFE reports submitted to NHTSA contain estimated sales production information, which may be protected as confidential until the termination of the production period for that model year.512 NHTSA protects each manufacturers competitive sales production strategies for 12 months, but does not permanently exclude sales production information from public disclosure. Sales production volumes are part of the information NHTSA
routinely makes publicly available through the CAFE PIC.
The manufacturer reports provide information on light-duty automobiles such as projected and actual fuel economy standards, fuel economy performance, and production volumes, as well as information on vehicle design features e.g., engine displacement and 506 Id.
507 Id.
508 See 509 49
510 Id.
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U.S.C. 32907a.

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transmission class and other vehicle attribute characteristics e.g., track width, wheelbase, and other off-road features for light trucks. Beginning with MY 2017, to obtain credit for fuel economy improvement values attributable to additional technologies, manufacturers must also provide information regarding A/C systems with improved efficiency, off-cycle technologies e.g., stop-start systems, high-efficiency lighting, active engine warm-up, and full-size pickup trucks with hybrid technologies or with fuel economy performance that is better than footprint-based targets by specified amounts. This includes identifying the makes and model types equipped with each technology, the compliance category those vehicles belong to, and the associated fuel economy improvement value for each technology.513 In some cases, NHTSA
may require manufacturers to provide supplementary information to justify or explain the benefits of these technologies and their impact on fuel consumption or to evaluate the safety implication of the technologies. These details are necessary to facilitate NHTSAs technical analyses and to ensure the agency can perform enforcement audits as appropriate.
NHTSA uses manufacturer-submitted PMY, MMY, and supplementary reports to assist in auditing manufacturer compliance data and identifying potential compliance issues as early as possible. Additionally, as part of its footprint validation program, NHTSA
conducts vehicle testing throughout the model year to confirm the accuracy of the track width and wheelbase measurements submitted in the reports.514 These tests help the agency better understand how manufacturers may adjust vehicle characteristics to change a vehicles footprint measurement, and ultimately its fuel economy target. NHTSA also includes a summary of manufacturers PMY and MMY data in an annual fuel economy performance report made publicly available on its PIC.
As mentioned, NHTSA uses EPAverified final-model year FMY data to evaluate manufacturers compliance with CAFE program requirements and draw conclusions about the performance of the industry. After 513 NHTSA collects model type information based upon the EPA definition for model type in 40
CFR 600.002.
514 U.S. Department of Transportation, NHTSA, Laboratory Test Procedure for 49 CFR part 537, Automobile Fuel Economy Attribute Measurements Mar. 30, 2009, available at http www.nhtsa.gov/
DOT/NHTSA/Vehicle%20Safety/Test%20
Procedures/Associated%20Files/TP-537-01.pdf.

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