Federal Register - December 29, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 247 / Wednesday, December 29, 2021 / Proposed Rules
years and the current values are based on outdated data and circumstances.
The regulations are also based on an outdated application of the statutory factors, with the result that existing regulations undermine the CAFE
program they are supposed to support.
DOE should grant this petition and update the regulations.
khammond on DSKJM1Z7X2PROD with PROPOSALS
Background In 1975, Congress passed the Energy Policy and Conservation Act EPCA, which required the National Highway Traffic Safety Administration NHTSA
to set corporate average fuel economy CAFE standards for automobiles as part of a suite of measures to reduce energy consumption.2 Congress also directed the Secretary of Transportation to submit a report with a recommendation on whether or not electric vehicles should be included in the CAFE program, including the manner in which energy requirements of EVs may be compared with energy requirements of internal combustion vehicles. 3 That report recommended against making EVs subject to CAFE
standards.4 As to comparing the energy requirements of EVs to internal combustion engine vehicles ICEVs, the report observed that there were a number of different ways this question could be answered. The agency proposed comparing vehicles on the basis of overall energy efficiency from primary source to final utilization in the vehicle, but observed that this approach will not account for differences in the social value of various primary energy sources and that vehicles could also be compared on the basis of petroleum consumption, which, for EVs, might include petroleum used to generate electricity.5
Notwithstanding DOTs recommendations, in 1980 Congress directed DOE to conduct a seven-year evaluation program of the inclusion of electric vehicles . . . in the calculation 2 Public Law 94163 25, 89 Stat. 871, 874, 902
1975. The statute assigns this task to the Secretary of Transportation, who has delegated it to NHTSA.
49 CFR 1.94c.
3 Public Law 94163 301.
4 Department of Transportation, Report, Advisability of Regulating Electric Vehicles for Energy Conservation at S1 August 1976. The recommendation stemmed in significant part from a determination that contemporary EVs would have a similar energy efficiency as internal combustion engine vehicles ICEVs, but that there was less available potential technology to improve EV
efficiency compared to the available potential technology to improve ICEV technology. E.g. id. at 38. According to the report, regulating EVs under CAFE would therefore reduce their already marginal competitiveness. Id. at 66.
5 E.g. id. at 65 to 67.
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of average fuel economy in the CAFE
program . . . to determine the value and implications of such inclusion as an incentive for the early initiation of industrial engineering development and initial commercialization of electric vehicles. 6 DOE was also directed to determine equivalent petroleum based fuel economy values for various classes of electric vehicles, taking into account:
i The approximate electrical energy efficiency of the vehicles considering the vehicle type, mission, and weight;
ii the national average electricity generation and transmission efficiencies;
iii the need of the Nation to conserve all forms of energy, and the relative scarcity and value to the Nation of all fuel used to generate electricity; and iv the specific driving patterns of electric vehicles as compared with those of petroleum fueled vehicles.7
DOE promulgated procedures for calculating EV CAFE values in April 1981.8 To account for factor 1, the agency chose test procedures to measure the electrical efficiency of an EV.9 The remaining factors were ostensibly captured as subcomponents of a petroleum-equivalency factor PEF, which varied annually with changes in the subcomponent terms. The PEF
included generation and transmission efficiency terms to account for factor 2.10 To account for the relative value of generation fuels required by factor 3, DOE weighted each type of input fuel in the generation efficiency term by the ratio of that fuels marginal price to the marginal price of gasoline per Btu.11
The 1981 rule did not account specifically for the need of the Nation to conserve all forms of energy or for 6 Chrysler Corporation Loan Guarantee Act of 1979, Public Law 96185 18, 93 Stat. 1324 Jan 7.
1980. In the late 1970s, one of the leading U.S.
automakers, the Chrysler Corporation, was facing huge financial losses due in part to the companys decision to become specialists in large, gasguzzling cars . . . right at the time . . . of oil boycotts and crises with the price of gasoline. Natl Public Radio, Examining Chryslers 1979 Rescue, NPR.ORG Nov. 12, 2008, available at https
www.npr.org/templates/story/
story.php?storyId=96922222. In exchange for Chrysler committing to an operating plan that included an energy efficiency plan setting forth steps to be taken by the Corporation to reduce United States dependence on petroleum, Congress extended to Chrysler about $1.5 billion in loan guarantees. See Public Law 96185 28, 4.
7 Id. 18.
8 See Electric and Hybrid Vehicle Research, Development, and Demonstration Program;
Equivalent Petroleum-Based Fuel Economy Calculation, Final Rule, 46 FR 22747 April 21, 1981.
9 Id. at 22,74822749.
10 Id. at 22,748.
11 Id. at 22,74822,749.
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the relative scarcity of generation fuels. As to the specific driving patterns of EVs in factor 4, DOE
determined that there was insufficient data available and assigned the driving pattern factor at a unity value of 1.0.12
The agency also included an accessory factor AF that accounted for petroleum-powered accessories such as cabin heaters found in some EVs.13
In 1987, DOE completed the mandated seven-year evaluation, concluding that the EV CAFE provision was not effective at incentivizing early industrial development or initial commercialization of EVs.14 The agency noted, however, that there was little apparent downside in having Congress provide for inclusion of EVs in the CAFE program in the future.15 The calculation of the annual petroleum equivalency factors was not extended past 1987.16
Over time, Congress amended various aspects of the statutes governing the CAFE program,17 and in 1994, codified the program as amended within title 49, United States Code.18 As then codified, NHTSA was directed to set maximum feasible average fuel economy standards for each model year.19 In carrying out that determination, however, NHTSA was prohibited from considering the fuel economy of dedicated automobiles, which, as defined, included EVs.20 But if an automaker in fact produced any EVs, the agency was directed to include in the CAFE compliance calculation equivalent petroleum based fuel economy values determined by DOE
for those EVs.21 DOE, in turn, was required to review those values each year and determine and propose necessary revisions based on the four statutory factors listed above.22
In February 1994, due to continued technology development and a strong interest in the corporate average fuel economy of electric vehicles from 12 Id.
at 22,750.
13 Id.
14 DOE, Electric and Hybrid Vehicles Program, 11th Annual Report to Congress at 30 March 1988.
15 Id.
16 See Electric and Hybrid Vehicle Research, Development, and Demonstration Program;
Equivalent Petroleum-Based Fuel Economy Calculation, Proposed Rule, 59 FR 5336, 5337 Feb.
4, 1994. 17 E.g. Public Law 100494 6a, 102
Stat. 2411 Oct. 14, 1988; Public Law 102486
403, 106 Stat. 2776 Oct. 24, 1992.
17 Public Law 103272 1a; e, 108 Stat. 745
July 5, 1994.
18 Public Law 103272 1a; e, 108 Stat. 745
July 5, 1994.
19 Id. 1e, adding 49 U.S.C. 32902a, c, f, g.
20 Id. 1e, adding 49 U.S.C. 32901a1, 8;
32902 h1.
21 Id. 1e, adding 49 U.S.C. 32904a2.
22 Id.
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