Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 1 of 315 ENVIRONMENTAL PRO TECTION AGENCY 40 CFR Parts 86 and 600

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration 49 CFR Part 575

[EPA–HQ–OAR–2009–0865; FRL_ XXXX-X; NHTSA-2010-0087]

RIN 2060-AQ09; RIN 2127-AK73

Revisions and Additions to Moto r Vehicle Fuel Economy Label

AGENCY: Environmental Protection Agency (EPA ) and National Highway Traffic Safety Administration (NHTSA).

ACTION: Proposed Rule.

SUMMARY: The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) are conducti ng a joint rulemaking to redesign and add information to the current fuel economy label that is posted on the window sticker of all new cars and light-duty trucks sold in the U.S. The redesigned label will provide new information to American consumers about the fuel economy and consumption, fuel costs, and environmental impacts associated with purchasing new vehi cles beginning with model year 2012 cars and trucks. This action will also de velop new labels for certain ad vanced technology vehicles, which are poised to enter the U.S. mark et, in particular plug-in hybrid electric vehicles and electric vehicles.

NHTSA and EPA are proposing these changes because the Energy Independence and Security Act (EISA) of 2007 imposes several ne w labeling requirements, because the agencies believe that labels for conventional vehicles can be improved to help consumers make more informed vehicle purchase decisions, and because the time is right to develop new labels for advanced technology vehicles that are being comme rcialized. This proposal is also consistent with the recent joint rulema king by EPA and NHTSA that established harmonized federal greenhouse gas (GHG) emissions and corporate average fuel economy (CAFE) standards for new cars, sport utility vehicles, minivans, and pickup trucks for model years 2012-2016. 1

DATES : Comments : Comments must be received on or before [Insert date 60 days after publication in the Federal Register]
, sixty days after date of publication in the Federal Register . Under the Paperwork Reduction Act, comments on the information collection provisions must be received by the Office of Management and Budget (OMB) on or before [Insert date 30 days after public ation in the Federal Register], thirty days after date of

1 75 FR 25324, May 7, 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 2 of 315 publication in the Federal Register . See the SUPPLEMENTARY INFORMATION section on “Public Participation” for more information about written comments.

Hearings: NHTSA and EPA will jointly hold xx public hearings on the following dates: [Insert Date] , in [insert location], and [insert any additional dates and locations]. The hearings will start at 9 a.m. local time and continue until everyone has had a chan ce to speak. See the SUPPLEMENTARY INFORMATION section on “Public Participation.” for more information about the public hearings.

ADDRESSES : Submit your comments, identified by Docket ID No. EPA-HQ-OAR-2009-0865 and/or NHTSA-2010-0087, by one of the following methods:

• www.regulations.gov: Follow the on-line instructions for submitting comments.

• Email: a-and-r-Docket@epa.gov

• Fax: EPA: (202) 566–1741; NHTSA: (202) 493-2251.

• Mail:

o EPA: Environmental Protection Agency, EPA Docket Center (EPA/DC), Air and Radiation Docket, Mail Code 2822T, 1200 Pennsylvania Avenue, NW., Washington, DC 20460, Attention Docket ID No. EPA-HQ-OAR-2009-0865

. o NHTSA: Docket Management Facility, M-30, U.S. Department of Transportation, West Building, Ground Floor, Rm. W12-140, 1200 New Jersey Avenue, SE, Washington, DC 20590.

o In addition, please mail a copy of your co mments on the information collection provisions to the Office of Informati on and Regulatory Affairs, Office of Management and Budget (OMB), Attn: Desk Officer for EPA, 725 17th St., NW., Washington, DC 20503.

• Hand Delivery:

o EPA: Docket Center, (EPA/DC) EP A West, Room B102, 1301 Constitution Ave., NW., Washington, DC, Attention Docket ID No. EPA-HQ-OAR-2009- 0865 . Such deliveries are only accepted dur ing the Docket’s normal hours of operation, and special arrangements shoul d be made for deliveries of boxed information.

o NHTSA: West Building, Ground Fl oor, Rm. W12-140, 1200 New Jersey Avenue, SE, Washington, DC 20590, betw een 9 a.m. and 5 p.m. Eastern Time, Monday through Friday, except Federal Holidays.

Instructions : Direct your comments to Do cket ID No. EPA- HQ-OAR-2009-0865 and/or NHTSA-2010-0087. See the SUPPLEMENTARY INFORMATION section on “Public Participation” for more informati on about submitting written comments.

Public Hearing : NHTSA and EPA will jointly hold [i nsert number] public hearings on the following dates: [Insert Date, Location, & Address] . OR [The agencies will announce the addresses for each hearing location in a supplemental Federal Register Notice.] See the SUPPLEMENTARY INFORMATION section on “Public Participation” for more information about the public hearings.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 3 of 315 Docket : All documents in the dockets are listed in the www.regulations.gov index. Although listed in the index, some informa tion is not public ly available, e.g. , confidential business information (CBI) or other information whose disclo sure is restricted by st atute. Certain other material, such as copyrighted material, will be pu blicly available in hard copy in EPA’s docket, and electronically in NHTSA’s on line docket. Publicly availabl e docket materials are available either electronically in www.regulations.gov or in hard copy at the following locations: EPA: EPA Docket Center, EPA/ DC, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566–1744

. NHTSA: Docket Management Faci lity, M-30, U.S. Department of Transportation, West Building, Ground Floor, Rm. W12-140, 1200 New Jersey Avenue, SE, Washington, DC 20590. The Docket Management Facility is open between 9 a.m. and 5 p.m. Eastern Time, Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: EPA: Lucie Audette, Office of Transportation and Air Quality, Assessment and Standards Division, Envi ronmental Protection Agency, 2000 Traverwood Drive, Ann Arbor MI 48105; telephone number: 734-214-4850; fax number: 734-214-4816; email address: audette.lucie@epa.gov , or Assessment and Standards Division Hotline; telephone number (734) 214-4636; e-mail address asdinfo@epa.gov

. NHTSA: Gregory Powell National Highway Traffic Safety Administration, 1200 New Jersey Avenue, SE, Washington, DC 20590. Telephone: (202) 366-5206; Fax: (202) 493-2990; email address: gregory.powell@dot.gov

SUPPLEMENTARY INFORMATION:

A. Does this Action Apply to Me?

This action affects companies that manufactur e or sell new light-dut y vehicles, light-duty trucks, and medium-duty passenger vehicles , as defined under EPA’s CAA regulations, 2 and passenger automobiles (passenger cars) and non-pa ssenger automobiles (light trucks) as defined under NHTSA’s CAFE regulations. 3 Regulated categories and entities include:

Category NAICS Codes A Examples of Potentially Regulated Entities Industry 336111 336112 Motor vehicle manufacturers.

Industry 811112 811198 423110 Commercial Importers of Vehicles and Vehicle Components.

A North American Industry Cl assification System (NAICS)

2 “Light-duty vehicle,” “light-duty truck,” and “medium-duty passenger vehicle” are defined in 40 CFR 86.1803-01. Generally, the term “light-duty vehicle” means a passenger car, the term “light-duty truck” means a pick-up truck, sport-utility vehicle, or minivan of up to 8,500 lbs gross vehicle weight rating, and “medium-duty passenger vehicle” means a sport-utility vehicle or passenger van from 8,500 to 10,000 lbs gross vehicle weight rating. Medium-duty passenger vehicles do not include pick-up trucks.
3 “Passenger car” and “light truck” are defined in 49 CFR Part 523.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 4 of 315 This list is not intended to be exhaustive, but rather provides a gui de regarding entities likely to be regulated by this ac tion. To determine whether partic ular activities may be regulated by this action, you should carefully examine the regul ations. You may direct questions regarding the applicability of this ac tion to the person listed in FOR FURTHER INFORMATION CONTACT

. B. Public Participation

NHTSA and EPA request comment on all asp ects of this joint pr oposed rule. This section describes how you can pa rticipate in this process.

How Do I Prepare and Submit Comments?

In this joint proposal, ther e are many issues common to both EPA’s and NHTSA’s proposals. For the convenience of all parties, comments submitted to the EPA docket (whether hard copy or electronic) will be considered comments submitted to both EPA and the NHTSA docket, and vice versa. Therefor e, the public only needs to subm it one set of comments to either one of the two agency dockets that will be re viewed by both agencies. Comments that are submitted for consideration by only one agency should be identified as such, and comments that are submitted for consideration by both agencies should be identified as such. Absent such identification, each agency will ex ercise its best judgment to de termine whether a comment is submitted on its proposal.

Further instructions for submitting comments to either the EPA or NHTSA docket are described below.

EPA: Direct your comments to Docket ID No EPA-HQ-OAR-2009-0865 . EPA’s policy is that all comments received will be included in the public docket without change and may be made available online at www.regulations.gov , including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restrict ed by statute. Do not submit information that you consider to be CBI or otherwis e protected through www.regulations.gov or e-mail. The www.regulations.gov Web site is an ‘‘anonymous access’’ system, which means EPA will not know your identity or contact in formation unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through www.regulations.gov your e-mail address will be automatically captured and in cluded as part of the comment that is placed in the public docket and made av ailable on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD–ROM you subm it. If EPA cannot read your comment due to technical difficulties and cannot contact you for cl arification, EPA may not be able to consider your comment. Electronic files should avoid th e use of special characters, any form of encryption, and be free of any def ects or viruses. For additional information about EPA’s public docket visit the EPA Dock et Center homepage at http:// www.epa.gov/epahome/dockets.htm.

NHTSA: Your comments must be written and in English. To ensure that your comments are correctly filed in the docket, please in clude the Docket Number NHTSA-2010-0087 in yourFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 5 of 315 comments. Your comments must not be more than 15 pages long. 4 NHTSA established this limit to encourage you to write your primary comme nts in a concise fashion. However, you may attach necessary additional documents to your co mments. There is no limit on the length of the attachments. If you are submitting comments electr onically as a PDF (Adobe) file, we ask that the documents submitted be scanned using the Optical Character Recognition (OCR) process, thus allowing the agency to search an d copy certain portions of your submissions. 5 Please note that pursuant to the Data Quality Act, in order for the substantive data to be relied upon and used by the agencies, it must meet the informati on quality standards set forth in the OMB and Department of Transportation ( DOT) Data Quality Act guidelines. Accordingly, we encourage you to consult the guidelines in preparing your comments. OMB’s guidelines may be accessed
at http://www.whitehouse.gov/omb/fedreg_reproducible (last accessed June 2, 2010), and DOT’s guidelines may be accessed at http://reg s.dot.gov (last accessed June 22, 2010).

Tips for Preparing Your Comments

When submitting comments, please remember to:

• Identify the rulemaking by docket number s and other identifying information (subject heading, Federal Regist er date and page number).

• Follow directions - The agencies may ask you to respond to specific questions or organize comments by referencing a Code of Federal Regulati ons (CFR) part or section number.

• Explain why you agree or disagree, suggest alternatives, and substitute language for your requested changes.

• Describe any assumptions and provide any technical information and/or data that you used.

• If you estimate potential costs or burd ens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced.

• Provide specific examples to illustrate your concerns and suggest alternatives.

• Explain your views as clearly as possibl e, avoiding the use of profanity or personal threats. Make sure to submit your comments by the co mment period deadline identified in the DATES section above.

How Do I Submit Confidential Business Information?

Any confidential business information (CBI) submitted to one of the agencies will also be available to the other agency. 6 However, as with all public co mments, any CBI information only needs to be submitted to either one of the agencies ’ dockets, and it will be av ailable to the other. Following are specific instructions for submitting CBI to either agency.

4 49 CFR 553.21.
5 Optical character recognition (OCR) is the process of converting an image of text, such as a scanned paper document or electronic fax file, into computer-editable text.
6 This statement constitutes notice to commenters pursuan t to 40 CFR 2.209(c) that EPA will share confidential information received with NHTSA unless commenters specify th at they wish to submit their CBI only to EPA and not to both agencies.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 6 of 315 EPA: Do not submit CBI to EPA through www.regulations.gov or e-mail. Clearly mark the part or all of the information that you claim to be CBI. For CBI information in a disk or CD ROM that you mail to EPA, mark the outside of th e disk or CD ROM as CBI and then identify electronically within the disk or CD ROM the specific information that is claimed as CBI. In addition to one complete version of the commen t that includes information claimed as CBI, a copy of the comment that does not contain the in formation claimed as CBI must be submitted for inclusion in the public docket. Information so mark ed will not be disclosed except in accordance with procedures set forth in 40 CFR Part 2. In addition, you should submit a copy from which you have deleted the claimed confidential busines s information to the Docket by one of the methods set forth above.

NHTSA: If you wish to submit any info rmation under a claim of confidentiality, you should submit three copies of your complete su bmission, including the information you claim to be confidential business information, to the Ch ief Counsel, NHTSA, at the address given above under FOR FURTHER INFORMATION CONTACT . When you send a comment containing confidential business information, you should include a cover letter setting forth the information specified in our confidential business information regulation. 7 In addition, you should submit a copy from which you have deleted the claimed co nfidential business inform ation to the Docket by one of the methods set forth above.

Will the Agencies Consider Late Comments?

NHTSA and EPA will consider all comments received before the close of business on the comment closing date indicated above under DATES . To the extent practicable, we will also consider comments received after that date. If interested persons believe that any new information the agency places in the docket a ffects their comments, they may submit comments after the closing date concerning how the agency should consider that information for the final rule. However, the agencies’ ability to consider any such late comments in this rulemaking will be limited due to the time frame for issuing a final rule.

If a comment is received too late for us to practicably consider it in developing a final rule, we will consider that comment as an in formal suggestion for future rulemaking action.

How Can I Read the Comments Submitted By Other People?

You may read the materials placed in the docket for this document ( e.g. , the comments submitted in response to this document by othe r interested persons) at any time by going to http://www.regulations.gov. Follow the online instructions for accessing the dockets. You may also read the materials at the EPA Docket Ce nter or NHTSA Docket Management Facility by going to the street addresses given above under ADDRESSES

. How do I participate in the public hearings?

7 49 CFR part 512.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 7 of 315 NHTSA and EPA will jointly host [insert number] public hearings on the dates and locations described in the DATES and ADDRESSES sections above.

If you would like to present testimony at the public hearings, we ask that you notify the EPA and NHTSA contact persons listed under FOR FURTHER INFORMATION CONTACT at least ten days before the hearing. On ce EPA and NHTSA learn how many people have registered to speak at the public hearing, we w ill allocate an appropriate amount of time to each participant, allowing time for lunch and necessary breaks th roughout the day. For planning purposes, each speaker should anticipate speaki ng for approximately ten minutes, although we may need to adjust the time for each speaker if there is a large turnout. We suggest that you bring copies of your statement or other mate rial for the EPA and NHTSA panels and the audience. It would also be helpful if you send us a copy of your statement or other materials before the hearing. To accommodate as many speaker s as possible, we pref er that speakers not use technological aids ( e.g. , audio-visuals, computer slideshows). However, if you plan to do so, you must notify the contact persons in the FOR FURTHER INFORMATION CONTACT section above. You also must make arrangements to provide your presenta tion or any other aids to NHTSA and EPA in advance of the hearing in or der to facilitate set-up. In addition, we will reserve a block of time for anyone else in th e audience who wants to give testimony.

The hearing will be held at a site accessible to individuals with disabilities. Individuals who require accommodations such as sign language interpreters should cont act the persons listed under FOR FURTHER INFORMATION CONTACT section above no later than ten days before the date of the hearing.

NHTSA and EPA will conduct the hearing inform ally, and technical rules of evidence will not apply. We will arrange for a written tran script of the hearing and keep the official record of the hearing open for 30 days to allow you to submit supplementary information. You may make arrangements for copies of the tran script directly with the court reporter.

Table of Contents

I. Overview of Joint EPA/NHTSA Proposal on New Vehicle Labels A. Summary of and Rationale for Proposed Label Changes B. A Comprehensive Research Program Inform ed the Development of Proposed Labels C. When Would The Proposed Label Changes Take Effect? D. What Are The Estimated Costs and Bene fits of the Proposed Label Changes? E. Relationship of This Proposal to Other Federal and State Programs F. History of Federal Fuel Economy Label Requirements G. Statutory Provisions and Legal Authority 1. Energy Policy and Conservation Act (EPCA) 2. Energy Independence and Security Act (EISA) II. Proposed Revisions to the Fuel Econom y Label Content (Metri cs and Rating Systems) A. Conventional Gasoline, Dies el and Hybrid Vehicles 1. Fuel Economy Performance 2. Fuel ConsumptionFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 8 of 315 3. Greenhouse Gas Performance 4. Fuel Economy and Greenhouse Gas Rating Systems 5. Other Emissions Performance and Rating System 6. Overall Energy and Environmental Rating 7. Indicating Highest Fuel Econom y/Lowest Greenhouse Vehicles 8. SmartWay Logo 9. Annual Fuel Cost 10. Relative Fuel Savings or Cost 11. Range of Fuel Economy of Comparable Vehicles 12. Other Label Text 13. Gas Guzzler Tax Information B. Advanced Technology Vehicle Labels 1. Introduction 2. EPA Statutory Requirements 3. Principles Underlying the Co-Proposed Advanced Technology Vehicle Labels 4. Key Advanced Technology Vehicle Label Issues C. Labels for Other Vehicle/Fuel Technologies 1. Flexible Fuel Vehicles 2. Compressed Natural Gas Vehicles 3. Dual Fuel Natural Gas & Gasoline Vehicles III. Proposed Revisions to Fuel Economy Label Appearance A. Proposed Label Designs 1. Label 1 2. Label 2 B. Alternative Label Design (Label 3) IV. Agency Research On Fuel Economy Labeling A. Methods of Research 1. Literature Review 2. Focus Groups 3. Internet Survey 4. Expert Panel B. Key Research Questions and Findings 1. Effective Metrics and Rating Systems for Existing and New Label Information 2. Effective Metrics and Ratings System s for Advanced Technology Vehicles 3. Effective Metrics to Enable Vehicle Comparison 4. Effective Whole Label Designs 5. Tools beyond the Label V. Implementation of the New Label A. Timing B. Labels for 2011 model year advanced technology vehicles C. Implementation of Label Content VI. Additional Related EPA Proposals A. Electric and Plug-In Hybrid Elec tric Vehicle Test Procedures 1. Electric Vehicles 2. Plug-in Hybrid Electric Vehicles B. Utility FactorsFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 9 of 315 1. Utility Factor Background 2. General Application of Utility Factors 3. Calculating combined values usi ng Cycle Specific Utility Factors 4. Low Powered Vehicles. C. Comparable Class Categories D. Using Smart Phone QR Codes to Link to Fuel Economy Information E. Fuel Economy Information in the context of the “M onroney” Sticker F. Miscellaneous Amendments and Corrections VII. Projected Impacts Of The Proposed Requirements A. Costs Associated with this Rule 1. Operations and Maintenance Costs and Labor Hours 2. Facility Costs 3. Startup Costs 4. Cost Summary B. Impact of Proposing One Label to Meet EPCA/EISA C. Benefits of Label Changes D. Summary VIII. Agencies’ Statutory Authority and Executive Order Reviews A. Relationship of EPA’s Proposed Requirement s With Other Statutes and Regulations 1. Automobile Disclosure Act 2. Internal Revenue Code 3. Clean Air Act 4. Federal Trade Commission Guide Concer ning Fuel Economy Advertising for New Vehicles 5. California Environmental Performance Label B. Statutory and Executive Order Reviews 1. Executive Order 12866: Regulatory Planni ng and Review and DOT Regulatory Policies and Procedures (NHTSA only) 2. Paperwork Reduction Act 3. Regulatory Flexibility Act 4. Unfunded Mandates Reform Act 5. Executive Order 13132: Federalism 6. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments 7. G. Executive Order 13045: Protection of Ch ildren from Environmental Health and Safety Risks 8. Executive Order 13211: Actions That Significan tly Affect Energy Supply, Distribution or Use 9. National Technology Transfer Advancement Act 10. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations.

I. Overview of Joint EPA/NHTSA Pr oposal on New Vehicle Labels

A. Summary of and Rationale for Proposed Label ChangesFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 10 of 315 This joint action by the Environmental Pr otection Agency (EPA) and the National Highway Traffic Safety Admini stration (NHTSA) proposes what will likely be the most significant overhaul of the federal government’s fuel economy label or “sticker” since its inception over 30 years ago.

The current fuel economy label required on all new passenger cars, light-duty trucks, and medium-duty passenger vehicles contains the foll owing core information, as required by statute:

• City and highway fuel economy values in miles per gallon

• Comparison of the vehicle’s combined city /highway fuel economy to a range of comparable vehicles

• Estimated fuel cost to operate the vehicle for one year

This joint proposal is designed to update th e current label in order to increase the usefulness of the label in helping consumers c hoose more efficient and environmentally friendly vehicles that would also meet new requirements added by Congress. This proposal also includes new label designs for electric vehicles (EVs) a nd plug-in hybrid electric vehicles (PHEVs), two advanced vehicle technol ogies that are beginning to enter the market.

EPA and NHTSA are co-proposing two labe l designs for public comment without a single primary proposal, although th e final rule will adopt only one label design. Both label designs meet statutory requirement s and rely on the same underlying data; they differ in how the data is used and presented on the label. One is a more traditional label design that retains the current label’s focus on fuel economy values and annual fuel cost projections, with a general label layout more similar to the current label. The second label design contains all appropriate information but prominently features a letter gr ade to communicate the overall fuel economy and greenhouse gas emissions – along with projected 5-year fuel cost or savings associated with a particular vehicle when compared to an average vehicle. The agencies are also seeking comment on an alternative third label design that follows a more traditional form at but presents some information differently. All labels expand upon the content found on the current label and include the following information for conventiona l vehicles (advanced te chnology vehicle labels contain additional information tailo red to the individual technology):

• City and highway fuel economy values in miles per gallon

• Combined city/highway fuel cons umption in gallons per 100 miles

• Tailpipe carbon dioxide (CO2) em issions in grams per mile

• Annual fuel cost in dollars per year

• A slider bar comparing the combined fuel economy to all other vehicles

• A slider bar comparing the CO2 em issions to all other vehicles

• A slider bar comparing non-CO2 (“other” or “smog-related”) emissions to all other vehicles

• A sym bol that can be read by a ‘Smartphone’ for additional consumer information (also known as a QR code)

• A reference to a federal government website for additional informationFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 11 of 315 Despite the fact that the co-proposed labels are based on the same underlying data, they are significantly different in terms of presentation and prominence. The agencies encourage public feedback on the central question of which label de sign would be more useful and help consumers select more energy efficient and environmentally friendly vehicles that meet their needs, or whether the agencies should consider alternative designs.

NHTSA and EPA are proposing these changes because the Energy Independence and Security Act (EISA) of 2007 mandates several new labeling requirements intended to help consumers make more informed vehicle purchase decisions, and because this is an appropriate time to develop new labels for advanced technolo gy vehicles (Battery Electric or EVs and PlugIn Hybrid Vehicles or PHEVs) that are being co mmercialized. The agencies believe that a joint label meeting our separate statutory requirements and our shared consumer information objectives makes far more sense for both consumer s and manufacturers than separate labels. As a joint rulemaking, this proposal is also consis tent with the recent jo int rulemaking by EPA and NHTSA that established harmonized federal greenhouse gas (GHG) emissions and corporate average fuel economy (CAFE) standards for new cars, sport utility vehicles, minivans, and pickup trucks for model years 2012-2016. 8

The agencies believe these new labeling requ irements for automobiles are important in light of a growing national interest in both fuel economy and climate change. Historically, consumers have generally paid the most attentio n to fuel economy when fuel prices increase sharply over a short period of time, such as in 2008, but the agencies believe that this phenomenon has changed and consumers will continue in the future to pay more attention to fuel economy. Based on projections from the U.S. Energy Information Administration that future gasoline prices will increase over coming decades due to global economic growth and oil demand, we believe that it is likel y that consumer interest in a nd use of the fuel economy label will grow over time. 9 In addition, given the increased awar eness of consumers regarding climate change and air pollution, more comprehensive information on the emissions performance of vehicles, as required by EISA, c ould help consumers make more informed decisions on how a vehicle they buy may imp act the environment.

It is also important for the agencies to de fine labeling requirements for advanced vehicle technologies that are nearing co mmercialization. The existing la bel has long provided city and highway fuel economy in terms of miles per gall on (mpg) values, which the agencies believe are well recognized and understood by consumers, a nd which are widely used as metrics for comparing the efficiency of one vehicle to anot her. Since the late 1970s when the fuel economy label was first established by EPA as requi red under the Energy Policy Conservation Act (EPCA) of 1975, over 99 percent of the automobiles sold have been conventional, internalcombustion engine vehicles that run on petroleum-based fuels (o r a liquid fuel blend dominated by petroleum). When manufactur ers produced different advanced technology vehicles, such as compressed natural gas vehicles, EPA has generally addressed the need for labels on a case-bycase basis.

8 75 FR 25324, May 7, 2010.
9 Annual Energy Outlook 2010, Department of Energy, Energy Information Administration, DOE/EIA-0383 (2010), May 11, 2010, available at http://www.eia.doe.gov/oiaf/aeo/index.html

.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 12 of 315 Over the next several model years, howeve r, the agencies expect to see increasing numbers of EVs and PHEVs entering the market place. This proposal includes changes to the label to address some of the specific issues raised by the use of grid electricity as a fuel for EVs and PHEVs. These vehicles will be required to display labels containing the same kind of information as conventional vehicles, but some of that information may be better conveyed in different ways, and consumers may be interested in different information for these vehicles. For example, evaluating the performance of a vehicle that uses grid electricity as some or all of its fuel, or the cost of operating such a vehicle, pr esents unique challenges for making an informed comparison between different EVs and PHEVs, and between advanced technology vehicles and their conventional vehicle counter parts including gasoline and diesel fueled vehicles and hybrid gasoline electric vehicles (HEVs).

The co-proposed label designs present tw o approaches for addressing the complex challenges associated with labels for these ad vanced technology vehicles, and the agencies encourage the public to comment on a wide range of possible solutions. The agencies recognize that this is only the first generation of EV and PHEV labels, and we expect to refine them over time as we have done with conventional vehicle la bels. Additionally, the agencies recognize that other advanced technology vehicles, such as fuel cell vehicles, may enter the marketplace in the near future as well, but for purposes of this fi rst effort we have chosen to focus on EVs and PHEVs. Specific label requireme nts for other advanced technology vehicles will be developed at a later time as those vehicles enter the market.

This joint proposal is designed to satisfy each agency’s statutory responsibilities in a manner that maximizes usefulness for the cons umer, while avoiding unne cessary burden on the manufacturers who prepare the vehicle labels. Since 1977, EPA has required auto manufacturers to label all new automobiles, 10 pursuant to EPCA. 11 As amended, EPCA re quires that labels shall contain the following information: (1) the fuel economy of the automobile; (2) the estimated annual fuel co st of operating the automobile; (3) the range of fuel economy of comp arable vehicles of all manufacturers; (4) a statement that a booklet is availabl e from the dealer to assist in making a comparison of fuel economy of other automob iles manufactured by all manufacturers in that model year; (5) the amount of the automobile fuel effi ciency tax (“gas guzzler tax”) imposed on the sale of the automobile under section 4064 of th e Internal Revenue Code of 1986 (26 U.S.C. 4064); and (6) other information required or authorized by the EPA Administrator that is related to the information required by (1) through (4) above. 12

In the Energy Independence and Security Act of 2007 (EISA), 13 Congress required that NHTSA, in consultation with EPA and the Departme nt of Energy (DOE), es tablish regulations to

10 An “automobile” is defined for these purposes as a “4-wheel ed vehicle that is propelled by fuel, or by alternative fuel, manufactured primarily for use on public streets, roads, and highways” and “rated at not more than 8,500 pounds gross vehicle weight.” See 49 U.S.C. 32901(a)(3) and 32908(a)(1).
11 Pub. L. 94-163.
12 49 U.S.C. 32908(b).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 13 of 315 implement several new labeling requirements for new automobiles. 14 , NHTSA must develop a program that requires manufacturers to label ne w automobiles with information reflecting an automobile’s performance with respect to fu el economy and greenhouse gas and other emissions over the useful life of the automobile based on criteria provided by EPA. 15 NHTSA must also develop a rating system that makes it easy fo r consumers to compare the fuel economy and greenhouse gas and other emissions of automobi les at the point of purchase, including designations of automobiles with the lowest GHG emissions over th e useful life of the vehicles, and the highest fuel economy. 16

Thus, either the basic label for automobiles needs to be expanded to include additional information on performance in terms of fuel economy, greenhouse gas and other emissions, or a new label needs to be required. NHTSA and EPA believe that a joint rulemaking to combine all of these elements into a single revised fuel econo my label is the most appropriate way to meet the goals described above, rath er than placing the information in two separate labels with duplicative and overlapping information, which could cause consumer confusion and impose unnecessary burden on the manufacturers. 17

Finally, given the goals described above and the need to provide additional information on the label, the agencies believe that the overa ll vehicle label design fo rmat and content should be reevaluated and could be improved. Simply including the additiona l information required under EISA for both conventional and advanced technology vehicles necessita tes a review of the overall label design.

As described above, the agencies view the pur pose of the label as providing information that will be most useful for consumers in making informed decisions regarding the energy efficiency and emissions impacts of the vehicl es they purchase. Providing information on energy, environmental performance, and cost ca n educate consumers in various ways. These metrics have the potential to help people who value this kind of information to make a more informed choice among different vehicles. It also has the potential to inform people who currently place less or even no va lue on this kind of information, but who may decide it is more important to them at some point in the future . NHTSA and EPA are mi ndful that this is a complicated issue and that there is no readily as certainable metric to determine whether we have achieved this somewhat subjective and qualitative purpose. Therefore, EPA and NHTSA are coproposing two options, and also ta king comment on another alternat ive, that highlight a number of relevant issues on which we seek public co mment. The agencies will consider all public comments and publish a final rule in the near future.

B. A Comprehensive Research Program In formed the Development of Proposed Labels

13 Pub. L. 110-140.
14 EISA Sec. 108, codified at 49 U.S.C. 32908(g).
15 49 U.S.C. 32908(g)(1)(a)(i).
16 49 U.S.C. 32908(g)(1)(a)(ii).
17 The agencies also raised the issue of the upcoming labeling requirements in the recent joint rulemaking for MYs 2012-2016 CAFE and GHG standards for light-duty vehicles, 75 FR 25324 (May 7, 2010).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 14 of 315 Since today’s proposal includes adding important new elements to the existing label as well as creating new labels for advanced tec hnology vehicles, EPA a nd NHTSA embarked on a comprehensive and innovative research program beginning in the fall of 2009. The research helped inform the development of the new labe ls being proposed and included three phases of consumer focus groups, a review of available literature, and a day long consultation with an expert panel of individuals w ho have introduced new products or have spearheaded national educational campaigns.

For the focus groups, the agencies decided to use a three-phase approach in order to accommodate the sheer amount of information intende d to be covered in the groups, as well as to use each phase to inform the next phase to help evolve the overall label design in regard to both content and appearance. Focus groups were held beginning in late February through May 2010 in four cities: Charlotte, H ouston, Chicago, and Seattle. Overall, 32 focus groups were convened with a total of 256 partic ipants. We asked the focus groups about the following issues:

• How they use the current fuel economy label

• What feedback they could give us on potenti al new information and metrics for the label for conventional and advanced techno logy vehicles (EVs and PHEVs), and

• What feedback they could give us, after reviewing draft labels, on designs and the level of information that makes sense, as well as overall preference for displaying information.

The insights received from the focus groups were key for the agencies with regard to individual metrics that consumers wanted to see on labels and also with regard to effective label designs. Overall, focus groups indicated 18 that redesigned labels must:

 Create an immediate first impression for consumers

 Be easy to read and understand quickly

 Clearly identify vehicle tec hnology (conventional, EV, PHEV)

 Utilize color

 Chunk information to allow people to deal with “more information”

 Be consistent in content a nd design across technologies

 Allow for comparison across technologies

 Make it easy to identify the most fuel effi cient and environmentally friendly vehicles

Following the focus group research, we assembled an expert panel for a one day consultation and asked them to give us feedback on the draft label designs the focus groups had helped create and to also assist us in iden tifying opportunities and st rategies to increase consumer preference for energy efficient and en vironmentally friendly ve hicles. The experts came from a variety of fields in advertising a nd product development, and were chosen because they have led successful national efforts to introduce new products or have spearheaded national educational campaigns. After view ing the draft labels, the expert panel offered the agencies the following insights and guidance 19 that were key in developing one of the co-proposed label designs, including:

 Keep it simple; we yearn for simplicity (fewer, bigger, better)

18 EPA Fuel Economy Label Phase 1 Focus Groups Technical Memorandum, Prepared by PRR, Inc, July 2010, EPA Fuel Economy Label Phase 2 Focus Groups Technical Memorandum, Prepared by PRR, Inc, July 2010, and EPA Fuel Economy Label Phase 3 Focus Groups Technical Memorandum, Prepared by PRR, Inc, July 2010.
19 EPA Fuel Economy Label Expert Panel Technical Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 15 of 315  Consumers don’t act on details

 Remember the reality of very short labe l viewing time - roll ratings and metrics up into a single score

 Use cost savings information- a very strong consumer motivator

 Develop a web site that woul d be launched in conjunction with the new label. This consumer-focused, user friendly web site would provide more specific information on the label including addition information on th e letter grade, along with access to the tools, applications, and social media.

Beyond these two core research elements, th e agencies also undertook a comprehensive literature review 20 and drafted and had peer reviewed an in ternet survey. The agencies intend to administer the survey concurrently with the releas e of this proposal, and th e results will be made publicly available in the dockets for this proposal prior to issuing a final rule with the new label requirements.

The agencies also met with a number of stakeholders, including environmental organizations, auto manufacturers, and dealers, to gather their input on wh at the label should and should not contain, as well as to ascertain particular concerns. 21 Comments received on labeling issues in the context of the joint ru lemaking on fuel economy and GHG standards, 22 as well as for the 2006 fuel economy labeling rule, 23 have also been considered.

C. When Would The Proposed Label Changes Take Effect?

The agencies propose th at the final label chan ges will take effect for model year (MY) 2012 vehicles, consistent with the recent joint rulemaking by EPA and NHTSA that established harmonized federal GHG emissions and CAFE sta ndards for new cars, sport utility vehicles, minivans, and pickup trucks for model years 2012 through 2016. 24 For those advanced technology vehicles that will be introduced to the market prior to MY2012, EPA will work with individual manufacturers on a case- by-case basis to develop inte rim labels under EPA’s current regulations that can be used pr ior to MY2012 and that are consiste nt with the proposed labels for advanced technology vehicles.

D. What Are The Estimated Costs and Bene fits of the Prop osed Label Changes?

The primary costs associated with this propos ed rule come from revisions to the fuel economy label and new testing requirements. As di scussed in Section VII of this preamble, we estimate that the costs of this rule are lik ely to be in the range of $649,000 – $2.8 million per

20 EPA Fuel Economy Label Literature Review, Prepared by PRR, Inc, July 2010.
21 Pursuant to DOT Order 2100.2, NH TSA will place a memorandum recordin g those meetings it attended, and attach documents submitted by stakeholders, as appropriate, when the info rmation received formed a basis for this proposal, and the information can be made public, in the docket for this rulemaking. .
22 Available at Docket No. NHTSA-2009-0059 and EPA-HQ-OAR-2009-0472.
23 Available at Docket No. EPA-HQ-OAR-2005-0169
24 75 FR 25324, May 7, 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 16 of 315 year. This rule is not ec onomically significant under E.O 12866 or any DOT or EPA policies and procedures because it does not exceed $100 million or meet other related standards.

The primary benefits associated with this proposed rule come from any improvements in consumer decision-making that may lead to redu ced vehicle and fuel costs for them. There may be additional effects on criteria pollutants and greenhouse gas emi ssions. At this time, EPA and NHTSA do not believe it is feasible to fully devel op a complete benefits analysis of the potential benefits.

EPA and NHTSA request comment on the assessme nt of the benefits and costs presented in Section VII below.

E. Relationship of This Proposal to Other Federal and State Programs

This proposal involves the addition of new infor mation and design changes to conventional vehicle labels and the creation of specific labels for cert ain advanced vehicle technologies, but will not impact other important elements of the federal government’s fuel economy and GHG emissions regulatory programs. Fo r example, this proposal will not affect the fuel economy compliance values used in NHTSA’s CAFE program, or the GHG emissions compliance values used in EPA’s GHG emissions c ontrol program. Nor will this proposal affect the methodology by which EPA generates the consumer fuel economy values used on the vehicle labels and provided at www.fueleconomy.gov . The result of the additional information, including environmental information, appearing on the label will necessitate that additional information also be displayed on th is website in the future. Finally, this proposal does not affect the test procedures that are used by EPA and ma nufacturers to generate the federal government’s vehicle fuel economy and GHG emissions database.

This proposal also does not a ffect the vehicle labels re quired by the California Air Resources Board which indicate relative rati ngs for “Smog” and “Global Warming,” in fulfillment of that state’s statutory requirements. The agencies are aware that the California labels provide information that is effectively duplicative with some of the information on the labels that will result from this rulemaking effort, although using di fferent underlying rating methodologies and presentational approaches. It is the hope of both NHTSA and EPA that the Federal label can meet the ARB requirements and, t hus, preclude the need for a separate set of labels. However, it is ultimately up to California to determine how to implement its statue and, thus, beyond the purview of this rulema king to make any such determination.

F. History of Federal Fuel Economy Label Requirements

The fuel economy label has evolved severa l times since it was first required by Congress in the 1970s, both in response to new statutory requirements and to changing policy objectives. There have been important changes in the past to make the label more technically accurate and understandable to consumers. The changes bein g proposed are consistent with past efforts by EPA to make the fuel economy label more cons umer friendly and effec tive over time. This section provides a brief histor ical summary of the development of the fuel economy label.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 17 of 315 The Energy Policy and Conservation Act of 1975 (EPCA) established two primary fuel economy requirements: (1) fuel economy informati on, designed for public us e, in the form of fuel economy labels posted on all new motor vehi cles, and the publication of an annual booklet of fuel economy information to be made ava ilable free to the public by car dealers; and (2) calculation of a manufacturer's aver age fuel economy and compliance with a standard (later, this compliance program became known as the Corporate Average Fuel Economy (CAFE) program). The responsibilities for these requirements were split between EPA, the Department of Transportation (DOT) 25 and the Department of Energy (DOE). EPA is responsible for establishing the test methods and procedures both for determining the fuel economy estimates that are displayed on the labels and in th e annual booklet, and for the calculation of a manufacturer's corporate average fuel economy. DOT, and by delegation, NHTSA, is responsible for administering the CAFE compliance progra m, which includes establishing standards, determining compliance, and assessing any pe nalties as needed. DOE is responsible for publishing and distributing the annua l fuel economy information booklet.

EPA published regulations implementing portions of the EPCA statute in 1976. 26 The provisions in this regulation, e ffective with the 1977 model year, established the first fuel economy label along with the procedures to calc ulate fuel economy values for labeling and CAFE purposes that used the Federal Test Procedure (FTP or “city” test) and the Highway Fuel Economy Test (HFET or “highway” test) data as th e basis for the calculations. At that time, the fundamental process for determining fuel ec onomy was the same for labeling as for CAFE, except that the CAFE calculations combined the city and highway fuel economy values into a single number for manufacturers’ compliance purposes. 27

After a few years of public exposure to the fuel economy estimates on the labels of new vehicles, it soon became apparent that drivers were disappointed by not often achieving these estimates on the road and expected them to be as accurate as possible. In 1978, Congress recognized the concern about differences betw een EPA-estimated fuel economy values and actual consumer experience and mandated a study under section 404 of the National Energy Conservation Policy Act of 1978. 28 In February 1980, a set of hearings were conducted by the U.S. House of Representatives Subcommittee on Environment, Energy, and National Resources. One of the recommendations in the subseque nt report by the Subcom mittee was that “EPA devise a new MPG system for labeling new cars and for the Gas Mileage Guide that provides fuel economy values, or a range of values, th at most drivers can reasonably expect to experience.” 29

25 The CAFE-related responsibilities of the Secretary of Transpor tation are delegated to the NHTSA Administrator at 49 CFR 1.50.
26 41 FR 38685, promulgated at 40 CFR Part 600.
27 EPCA requires that manufacturers simply comply with pa ssenger car and light truck CAFE standards, it does not require separate city and highway standards for each type of automobile. Thus, EPA calculates the average fuel economy for a manufacturer by weighting and combining the results of each automobile on the separate city and highway cycles. See 49 U.S.C. 32904(c).
28 Pub. L. 95-619, Title IV, 404, November 9, 1978.
29 House Committee on Government Operations, ``Automobile Fuel Economy: EPA's Performance,'' Report 96- 948, May 13, 1980.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 18 of 315 EPA commenced a rulemaking process in 1980 to revise its fuel economy labeling procedures, and analyzed a vast amount of in-use fuel economy data as part of that rulemaking. 30 In 1984, EPA published new fuel economy labeling pr ocedures that were applicable to 1985 and later model year vehicles. 31 The decision was made to reta in the FTP and highway test procedures, primarily because t hose procedures were also us ed for other purposes, including emissions certification and CA FE determination. Based on the in-use fuel economy data, however, it was evident that the final fuel econo my values put on the labels needed to be adjusted downward in order to reflect more accurately consumers’ average fuel economy experience. The final rule, therefore, included downward adjustment factors for both the city and highway label fuel economy estimates. The c ity values (based on the raw FTP test data) were adjusted downward by 10 percent and the highway values (likewise based on the raw highway test data) were adju sted downward by 22 percent. 32

EPA projected at the time that these adjustme nts would put the aver age city and highway MPG values in the middle of the range of fu el economy values experienced by consumers. 33 During the rulemaking process, the Office of Management and Budget (OMB) expressed concern that fuel economy estimates based on the average experience would result in a significant number of drivers failing to achieve that fuel economy. OMB requested that EPA provide a range of values on the label that woul d encompass the expected fuel economy of about 75 percent of the driving population. 34 To address this concern, in the final rule, EPA required the label to contain the range of city and highway fuel economy th at most drivers should expect. Based on our understanding of the frequency distribut ion of in-use fuel economy data at the time, the range was set at plus or minus 15 percent of the stated city and highway estimates, and appears on the current fuel economy label.

In the early 2000s, EPA again began investigat ing the accuracy of the fuel economy label estimates, and concluded that driving behavior (e.g., higher average speed and acceleration) and other factors (such as the use of ethanol as a ga soline blending agent) had changed significantly since the correction factors were implemented in 1985, leading again to a widening gap between real-world fuel economy and the label estimates that consumers saw when shopping for new vehicles. During the development of vehicle em issions regulations in the late 1990s, EPA had already conclusively found that the city and highway tests did not adequately represent realworld driving, and in December of 2006 EPA finaliz ed new test methods for calculating the fuel economy label values. 35

The 2006 final rule made three important cha nges. First, EPA’s new methods brought the miles per gallon estimates closer to consumers' actual fuel economy by including factors such as high speeds, quicker accelerations , air conditioning use, and drivi ng in cold temperatures. These revised fuel economy estimates al so reflect other conditions that influence fuel economy, like

30 “Passenger Car Fuel Economy: EPA and Road,'' U.S. Environmental Protection Agency, Report no. EPA 460/3- 80-010, September, 1980, and ``Technical Support Report for Rulemaking Action: Light Duty Vehicle Fuel Economy Labeling,'' U.S. Environmental Protection Agency, Report no. EPA/AA/CTAB/FE-81-6, October, 1980.
31 49 FR 13845, April 6, 1984, and 49 FR 4 8149, December 10, 1984.
32 49 FR 13845, April 6, 1984.
33 49 FR 13832, April 6, 1984.
34 49 FR 13835, April 6, 1984.
35 71 FR 77872, December 27, 2006.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 19 of 315 road grade, wind, tire pressure, load, and the e ffects of different fuel properties. The new estimates took effect with model year 2008 ve hicles. Second, EPA now requires fuel economy labels on certain heavier vehicles up to 10,000 pounds gross vehicle weight, such as larger SUVs and vans. Manufacturers will be required to post fuel economy labels on these vehicles beginning with the 2011 model year. Third, to co nvey fuel economy information to the public more effectively, EPA updated the design and conten t of the label. The ru le required that new labels be placed on vehicles manufactured after September 1, 2007. The fuel economy for each vehicle model continues to be presented to c onsumers on the label as city and highway MPG estimates.

G. Statutory Provisions and Legal Authority

1. Energy Policy and Conservation Act (EPCA)

Under EPCA, EPA is responsible for developing the fuel economy labels that are posted on all new light duty cars and trucks sold in the U.S and beginning in MY 2011 all new medium duty trucks as well. Medium-duty passenger vehi cles are a subset of vehicles between 8,500 and 10,000 pounds gross vehicle weight that includes larg e sport utility vehicles and vans, but not pickup trucks. EPCA requires the manufacturers of automobiles to attach the fuel economy label in a prominent place on each automobile manufactu red in a model year and also requires auto dealerships to maintain the label on the automobile. 36

EPCA specifies the information that is minimally required on every fuel economy label. 37 As stated above, labels must include:

• The fuel economy of the automobile,

• The estimated annual fuel cost of operating the automobile.

• The range of fuel economy of comparab le automobiles of all manufacturers,

• A statement that a booklet is available fr om the dealer to assist in making a comparison of fuel economy of othe r automobiles manufactured by all manufacturers in that model year,

• The amount of the automobile fuel effi ciency tax imposed on the sale of the automobile under section 4064 of th e Internal Revenue Code of 1986; 38 and

• Other information required or authorized by the Administrator that is related to the information required [within the first four items].

Under the provision for “other information” EP A has previously required the statements “your actual mileage will vary depending on how you drive and maintain your vehicle,” and cost estimates “based on 15,000 miles at $2.80 per ga llon” be placed on vehicle labels.

There are additional labeling requirements f ound in EPCA for “dedicated” automobiles and “dual fueled” automobiles. A dedicated auto mobile is an automobile that operates only on

36 49 U.S.C. 32908(b)(1).
37 49 U.S.C. 32908(b)(2)(A) through (F).
38 26 U.S.C. 4064.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 20 of 315 an alternative fuel. 39 Dedicated automobile labels must also display the information noted above.

A dual fueled vehicle is a vehicle which is “capable of operating on alternative fuel or a mixture of biodiesel and diesel fuel, and on gasoline or diesel fuel” for the minimum driving range (defined by the DOT). 40 Dual fueled vehicle labels must:

• Indicate the fuel economy of the automobile when operated on gasoline or diesel fuel.

• Clearly identify the automobile as a dual fueled automobile.

• Clearly identify the fuels on which the automobile may be operated; and

• Contain a statement informing the consumer that the additional information required by subsection (c)(2) [the in formation booklet] is published and distributed by the Secretary of Energy. . 41

EPCA defines “fuel economy” for purposes of these vehicles as “the average number of miles traveled by an automobile for each gallon of gasoline (or equivalent amount of other fuel) used, as determined by the Administrator [of th e EPA] under section 32904( c) [of this title].” 42

Additionally, EPA is required under EPCA to prepare a fuel economy booklet containing information that is “simple and readily understandable.” 43 The booklet is commonly known as the annual “Fuel Economy Guide.” EPCA furthe r instructs DOE to publish and distribute the booklet. EPA is required to “prescribe regul ations requiring dealers to make the booklet available to prospective buyers.” 44 While the booklet continues to be available in paper form, in 2006, EPA finalized regulations al lowing manufacturers and dealers to make the Fuel Economy Guide available electronically to customers as an option. 45

2. Energy Independence and Security Act (EISA)

The 2007 passage of the Energy Independence and Security Act (EISA) amended EPCA by introducing additional new vehi cle labeling requirements, to be implemented by the National Highway Traffic Safety Administration (NHTSA). 46 While EPA retained responsibility for establishing test methods and cal culation procedures for determining the fuel economy estimates

39 49 U.S.C. 32901(a)(1) defines “alternative fuel” as including —(A) methanol; (B) denatured ethanol; (C) other alcohols; (D) except as provided in subsection(b) of this section, a mixture containing at least 85 percent of methanol, denatured ethanol, and other alcohols by volume with gasoline or other fuels; (E) natural gas; (F) liquefied petroleum gas; (G) hydrogen; (H) coal derived liquid fuels; (I) fuels (except alcohol) derived from biological materials; (J) elect ricity (including electricity from solar ener gy); and (K) any other fuel the Secretary of Transportation prescribes by regulation that is not substantially petroleum and that would yield substantial energy security and environmental benefits.”
40 49 U.S.C. 32901(a)(9), (c)
41 49 U.S.C. 32908(b)(3).
42 49 U.S.C. 32901(a)(11).
43 49 U.S.C. 32908(c).
44 Id.
45 71 FR 77915, Dec. 27, 2006.
46 P.L. 110-140.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 21 of 315 of automobiles for the purpose of posting fuel economy information on labels and in an annual Fuel Economy Guide, NHTSA gained responsibility for requiring automobiles to be labeled with additional performance metrics and rating systems to help consumers compare vehicles to one another more easily at the point of purchase.

Specifically, and for purposes of this rulema king, subsection “(g) Consumer Information” was added to 49 U.S.C. section 32908. Subsection (g), in relevant part, dire cted the Secretary of Transportation (by delegation, th e NHTSA Admnistrator) to “dev elop and implement by rule a program to require manufacturers –

(A) to label new automobiles sold in the United States with – (i) information reflecting an automo bile’s performance on the basis of criteria that the [EPA] Administra tor shall develop, not later than 18 months after the date of the of th e Ten-in-Ten Fuel Economy Act, to reflect fuel economy and greenhouse gas and other emissions over the useful life of the automobile: (ii) a rating system that would make it easy for consumers to compare the fuel economy and greenhouse gas and ot her emissions of automobiles at the point of purchase, including a designation of automobiles— (I) with the lowest greenhouse gas em issions over the useful life of the vehicles; and (II) the highest fuel economy...”

Thus, both EPA and NHTSA have authority ov er labeling requirements related to fuel economy and environmental information under EP CA and EISA, respectively. In order to implement that authority in the most coordina ted and efficient way, the agencies are jointly proposing the revised labels presented below.

II. Proposed Revisions to the Fuel Econom y Label Content (Metrics and Rating Systems)

This section discusses th e elements that the agencies are proposing for the fuel economy label. Section A discusses the range of opti ons considered and proposed for “conventional” petroleum-fueled vehicles (i.e., those powered sole ly by gasoline or diesel fuel). Current hybrid vehicles, which are fundamentally gasoline-fueled vehicles, 47 will continue to use the same label as other gasoline vehicles, just as they do today. Many of the approaches discussed in Section A, such as the rating systems, will apply across all vehicles, including advanced technology vehicles. Section B specifically discusses th e special cases of advan ced technology vehicles. These vehicles – such as electric vehicles (E Vs) and plug-in gasoline- electric hybrid vehicles (PHEVs) 48 – are one of the key reasons we are proposing new regulations. The agencies are concerned that current label re quirements do not adequately addr ess these vehicles, and we are seeking to develop labels that are useful and understandable to consumers, as well as equitable

47 Current hybrid vehicles obtain their electric power from their onboard conventional gasoline engine and energy captured through regenerative braking. Thus, th e vehicle’s energy source is still gasoline.
48 Definitions for hybrid electric vehicles , electric vehicles, fuel cell vehicles , and plug-in hybrid electric vehicles can be found in EPA regulations at 40 CFR 86.1803-01.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 22 of 315 across the range of different vehi cles and technological approach es. Section C addresses some of the less common fuels and fuel combinations for which label templates must ultimately be developed, such as compressed natural gas and methanol.

A. Conventional Gasoline, Di esel and Hybrid Vehicles

The com plete effect of this proposal woul d be a single new label, which replaces the existing fuel economy label and which contains mo re information than is currently displayed, even in the case of conventional petroleum-fueled vehicles. An example of the current label is shown here to provide a basis for comparison with the proposed labels.

The new single label is the result of EP A and NHTSA’s decision that it is good public policy to consolidate label requirements called fo r by EPCA and EISA. This label would contain information not only on a new vehicle’s fuel eco nomy, annual fuel cost, and range of fuel economy within class, but also, for the firs t time, information on a new vehicle’s fuel consumption, emissions, and comparative rating in formation, as required by statute. This expansion of the role of the label beyond fu el economy information reflects the new EISA requirements, which are premised on the concep t that greenhouse gas a nd other environmental information is also in the public interest.

In developing this proposal, the agencies came up with two distinct approaches for conveying information on the label. While both approaches rely on the same underlying data and both meet EPCA and EISA requirements, they differ in how they pr esent and emphasize the information. One approach is more traditional, focusing primarily on mpg values and secondarily on annual fuel cost, but adding new el ements, such as environmental information. A label using this approach would look familiar to the public, with a style similar to the existing label. Requiring a label based on the traditional approach assumes that potential vehicle purchasers will use the information that is most meaningful to them, whether that is mpg, fuel cost, or other values. For example, participants in the focus groups leading up to this proposalFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 23 of 315 indicated that, when considering the current fuel economy label, nearly all used the city and highway mpg values almost exclus ively, despite the pres ence of other data elements on the label; some also used annual fuel cost a nd within-class comparison information. 49

The other approach uses the same data, but shifts the emphasis to a single, more prominent value that reflects fuel consumption and its counterpart, greenhouse gas emissions, using a format the consumers will easily recognize - a letter grad e. The associated numerical values and other required elements would remain on the label, but with much less prominence. This approach makes it simpler for the consumer to identify those vehicles that use less oil and have a lesser environmental impact and more clea rly expands the role of the label beyond fuel economy information. Many of the focus group partic ipants indicated that they trusted the EPA to determine which of these f actors were important, and the ag encies believe that consumers might be more likely to consider a vehicle wi th higher fuel economy and lesser environmental impact if they were provided with a simpler label. 50

The agencies believe each approach has merit and that the public will be well-served by having both be fully considered; therefore, EPA and NHTSA are co-proposing two label designs based on these two approaches, without either being the primary proposal. NHTSA and EPA expect that comments will provide valuable in sight on these two proposed label designs, and seek comment on the merits and drawbacks of each, recognizing that the label design ultimately finalized may draw on elements from all the labels presented in this proposal. The labels are presented in Section III. Label designs 1 and 2 are co-proposed, with Label 1 being the letter grade approach and Label 2 being the more tradit ional approach. Label 3, on which comment is also sought, is an alternative ve rsion of the trad itional approach.

The subsections that follow describe each of the data elements presented on the labels, how the agencies considered them, and how we ar e proposing that they be displayed on each of the co-proposed labels.

1. Fuel Economy Performance

Since 1977, the EPA fuel economy label has represented the fuel economy performance of a vehicle with estimates of city and highway miles per gallon (mpg). With more than 30 years of consumers seeing these estimates as the most prominent values displayed on the fuel economy labels, it is not surprising that the consumer re search conducted as part of this rulemaking has revealed a strong attachment to city and highw ay mpg values. A combined city and highway mpg value was first placed on th e label starting with model year 2008 -- as part of the graphic showing the combined mpg value of the vehicle co mpared with other vehicles in the same class 51 but, even prior to this, the combined mpg value has always been a key input to estimating the annual fuel cost valu e required on the label. 52

49 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
50 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
51 The vehicle classes are defined in EPA regulations at 40 CFR 600.315-08 and provide a basis for comparing a vehicle’s fuel economy to that of other vehicles in its class as required by statute. See the discussion in section VI.C for a detailed discussion of th e vehicle class structure.
52 Combined fuel economy is a harmonic average of th e City and Highway mpg values, with the City value weighted 55% and the Highway va lue weighted 45%. See 71 FR 77904, Decem ber 27, 2006.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 24 of 315 Representing the vehicle’s fuel economy perf ormance on the label with an estimate of miles per gallon is a core element of the fuel economy information requirements of EPCA, which specifically states that the labe l must display “the fuel economy of the automobile” and defines “fuel economy” as “the average number of miles travelled...for each gallon of gasoline...” 53 In addition, EPA and NHTSA have determined that c ontinuing to display the fuel economy values on the label would also meet the new requireme nts put in place by EISA that call for a label “reflecting an automobile’s performance [based on criteria determined by EPA] to reflect fuel economy...over the useful life of the vehicle.” 54 Because vehicle fuel economy depends primarily on fundamental vehicle design charact eristics that do not change over time, the agencies believe that fuel economy remains esse ntially stable throughout the life of properlymaintained vehicles. Thus the agencies believe th at the current test methods that determine label values for new vehicles will meet the EISA requirements by providing reasonable estimates of fuel economy performance for the fu ll useful life of a ve hicle. Finally, consumers have shown a strong familiarity with and prefer ence for mpg values, and have consistently indicated that these values are used as part of the vehicle purchase decision.

For these reasons, the agencies are proposing to continue to provide mile per gallon estimates to consumers, but with some changes re lative to the current label, and with markedly different approaches on the two co-proposed labels.

The agencies recognize that the focus group re search suggested that consumers have a strong familiarity with and preference for the city and highway fuel economy values 55 (although this preference was much stronger for conventio nal vehicles than for advanced technology vehicles; in those cases perhaps the complexity of the labels encouraged them to part with some of the numbers on the label). Fo cus group participants who argued st rongly for separate city and highway mpg values on the label of ten stated, for example, that mo st of their driving is either city or highway, and that a combined city-highw ay mpg value might make it harder for them to determine what mpg they should reasonably expect for that vehicle. 56 The agencies believe that this apparent preference was formed in large part because of EPA’s decision to present these as the dominant figures on the label for decades, no t because consumers demanded these metrics 33 years ago. Had EPA been presenting the combin ed number as the dominant figure on the label since 1977, we might expect to see a great deal of familiarity with and understanding of that particular value today. However, the distinctio n between city and highway driving does not address the key variables that could impact en ergy consumption for alternative technologies, such as ambient temperature. Thus, the agen cies believe that, for labeling purposes, the city/highway distinction may be a less re levant metric than in the past.

Thus with Label 1, NHTSA and EPA propose that the mpg values be significantly reduced in prominence (i.e., smaller font and “b elow the fold” location on the label), with the letter grade rating assuming the predominant role . Given space constraints and the amount of information that is required to be provided on th e label, continuing to display mpg estimates with

53 49 USC 32908(b)(1)(A).
54 49 USC 32908(g)(1)(A)(i).
55 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
56 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 25 of 315 the same or similar prominence would be likely unnecessary and possibly untenable. The city and highway mpg values would be available fo r those who wish to use them, but the rating assumes the key role of informing the public about the relative energy use and carbon emissions of a vehicle. The agencies believe that this de-emphasis on mpg values would have two primary benefits: first, the rating’s predominance shoul d encourage consumers to use it rather than the specific mpg values to compare across vehicle technology types (particularly as mpg values become less meaningful for vehicles that do no t run, or only partially run, on fuels dispensed by the gallon); and second, to addr ess the non-linearity of mpg w ith respect to energy use, emissions, and cost, discussed further in Sec tion II A 2, which becomes more important as significantly higher mileage vehicles ar e poised to enter the marketplace.

The agencies are proposing a different approa ch for Label 2, in which the combined mpg value is displayed prominently, with separate c ity and highway values co ntinuing to be shown on the label, but as subordinate values. This a pproach focuses attention on mpg since it is the metric that consumers are the most familiar with and have come to utilize on the label. However, it downplays the separate city and high way value in favor of a single, combined mpg, because the agencies believe that continuing to highlight multiple pieces of fuel economy information with the same level of prominence could make it more difficult for consumers to compare vehicles, particularly across technology types, where mpg becomes a less meaningful metric. A similar approach is taken on Label 3.

The agencies seek comment generally on th ese two approaches to displaying fuel economy performance information on the labels. Specifically, comment is sought on whether or not the labels that emphasize combined city/hig hway mpg values over sepa rate city and highway mpg values are helpful to consumers, and why or why not. If combined mpg is preferred, comment is sought on whether or not city and hi ghway values should continue to be displayed, and why or why not.

2. Fuel Consumption

While miles per gallon is statutorily mandated for fuel economy labels and has appeared on the label for several decades, the agencies ha ve some concern that it can be a potentially misleading comparative tool for cons umers, particularly when it is used as a proxy for fuel costs. The problem can be easily illustrated by the following figure, which shows the non-linear relationship between gallons used over a given distance and miles pe r gallon. It can be seen that the difference in gallons it takes to go 1,000 m iles between 10 and 15 mpg (about 33 gallons) is substantially greater than the difference in gallons it takes to go the same distance between 30 and 35 mpg (about 5 gallons). In other words, even if consumers clearly understand that higher mpg is better, those comparing vehicles with relatively low mpg values may not know that mpg differences that appear to be small, even one or two mpg, may actually ha ve very different fuel consumption values, and that selecting the slight ly higher mpg vehicle could actually result in significantly less fuel used, thus saving a cons iderable amount of money. Fuel consumption numbers, unlike mpg, relate directly to the amount of fuel used. Mathematically, they represent gallon per mile, instead of miles per gallon. Not co incidentally, they also relate directly to the amount of CO2 emitted, because the grams of CO2 produced are dire ctly proportional to gallons of fuel combusted.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 26 of 315 Illustration of "MPG Illusion"

0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150

0 5 10 15 20 25 30 35 40 45 50 Miles per GallonGallons per 1,000 Miles

33 gals

5 gals

This so-called “mpg illusion,” which has been widely written about by a number of economists to illustrate why mpg is a flawed measur e of how a vehicle’s effi ciency relates to fuel costs, 57 was raised as an issue during the developm ent of the 2006 fuel economy labeling rule. Some vehicle manufacturers suggested at the time th at it may be more meaningful to express fuel efficiency in terms of consumption (e.g., gallons pe r mile or per 100 miles) rather than in terms of economy (miles per gallon). 58 Fuel consumption is the primary metric used in Europe, and the Canadian fuel economy labels report both mpg and a consumption metric (liters per 100 kilometers). Because a few stakeholders expresse d an interest in a fuel consumption metric at the time, EPA requested comments on a gallons-pe r-mile metric and how it could be best used and presented publicly, such as whether it shoul d be included in the Fuel Economy Guide.

The comments received in response to this request were mixed. Public Citizen, on the one hand, responded that, while there may be some merit to including a fuel consumption metric, consumers are comfortable with mpg. Any change , they argued, should be carefully deliberated and involve a massive public outrea ch campaign to educate consumers. 59 They also suggested

57 Allcott, H., Mullainathan, S., "Energy: Behavior and Energy Policy," Science, March 5, 2010, available at:http://www.sciencemag.org/cgi/content/summary/327/5970/1204; Larrick, R.L., Soll, J.B., "The MPG Illusion," Science, June 20, 2008, available at http://www.scien cemag.org/cgi/content/full/320/5883/1593; McArdle, M., "Department of Mathematical Illusion," The Atlantic, December 24, 2007, available at: http://www.theatlantic.com/business/archive/2007/12/department-of-mathematical-illusion/2425/.
58 US EPA Response to Comments: Fuel Economy Labeling of Motor Vehicles, EPA-420-R-06-016, Dec 2006, pp. 60-61.
59 Public Citizen Comments on Proposed Fuel Economy Labeling Of Motor Vehicles, EPA-HQ-OAR-2005-0169- 0123.1, Apr 3, 2006, p.4.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 27 of 315 that the estimated annual fuel cost provides info rmation derived from consumption values and is thus a suitable proxy for consumption. Toyota, in contrast, commented that fuel consumption is a more meaningful measure than mpg for e xpressing fuel efficiency, while acknowledging EPA’s statutory limitations. They noted - as have many others - that the mpg metric is fundamentally nonlinear in relation to issues of consumer interest, su ch as cost of fuel or gallons used, and noted that anecdotal evidence shows that the nonlinear aspects of mpg can lead to consumer confusion. Toyota conclu ded that “...this is a matter on which the EPA is obligated to educate the public as fuel consumption, not fuel economy, is a direct reflection of the environmental impact of vehicles in use.” 60

EPA responded to these comments in the 2006 fi nal rule by concluding that switching to a consumption metric without a long-term cons umer education program would cause confusion and that, absent Congressional action, the fuel ec onomy labels would still have to continue to report mpg. EPA also agreed with commenters that the estimated annual fuel cost was a consumption-based metric which conveys e ssentially the same information (although the estimated annual fuel cost on the label is not with out its own limitations, as described below).

To allow further consideration of this issue, the consumer focus groups conducted for this rulemaking were asked to specifically explore the mpg illusion. Most participants were unconvinced that consumption should be includ ed on the label with primary prominence and, although many were unopposed to having it as additio nal information, it was unclear whether it would add value from their perspective. 61 This was the case regardless of the consumption metric tested, ranging from gallons per 100 miles to annual gallons consumed.

However, there is general interest from a nu mber of parties in th e inclusion of a fuel consumption metric on the label. The agencies, as well, believe that it is important to introduce the concept of consumption to enable consumers to more accurately consider fuel use and costs during the vehicle purchase process. Thus, the agencies propose to introduce such a metric along with the mpg values, expecting that, over time, and with some education, consumers will begin to understand energy consumption and the direct connection it has with the fuel costs and environmental impacts of the vehicle. EPA is therefore proposing to include an estimate of gallons per 100 miles on the label under its 49 U. S.C. 32908(b)(1)(F) author ity to require other information related to fuel economy on the label, and requests comment on doing so, as well as on alternative options for reflecting fuel c onsumption, such as annual gallons consumed. 62 For consumers to use a consumption number, however, EPA and NHTSA believe that a comprehensive education campaign would have to accompany the roll-out of new labels.

The agencies also seek comment on the specifi cs of displaying a c onsumption metric on the two labels being co-propose d. Although the label may provide city and highway mpg values as well as a combined city/highway mpg, we are proposing to require only the combined city/highway consumption value on the label. The agencies are conc erned that requiring a

60 Toyota Motor Corporation Comments on Proposed Fuel Economy Labeling Of Motor Vehicles, EPA-HQ-OAR2005-0169-0118.1, Mar 31, 2006, p.7.
61 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
62 This proposal is being made under EPA’s authority to re quire other information related to fuel economy on the label, as described in 49 USC 32908(b)(1)(F).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 28 of 315 consumption value corresponding to every mpg valu e would lead to an undesirable proliferation of numbers on the label.

3. Greenhouse Gas Performance

In addition to the fuel economy performan ce information that has been provided on the labels since 1977, Congress directed NHTSA, through EISA, to requir e new vehicles to also be labeled with information reflecting their gr eenhouse gas performance, which would be determined on the basis of criteria provided by EPA to NHTSA. As with fuel economy, the GHG performance information would be per vehicle model type. EPA hereby proposes the criteria for determining greenhouse gas perfor mance, addressing the greenhouse gases to be incorporated, the emissions sources to include, th e underlying test procedures, and the specific metric to be used. The agencies seek comment on whether these criteria, as described below, are reasonable and appropriate for determining the greenhouse gas performance of new vehicles. For purposes of this NPRM, NHTSA is proposi ng that the greenhouse gas performance element of the label be based on these criteria. Thes e same greenhouse gas performance values would also be used as the basis for the prop osed greenhouse gas rating systems.

With regard to the greenhouse gases to be covered, the agencies propose that the label include greenhouse gas performance information solely on the basis of carbon dioxide (CO2) emissions, which typically constitute approximately 95% of the tailpipe emissions of greenhouse gases. Including emission levels of the gr eenhouse gases methane (CH4) and nitrous oxide (N2O) along with CO2 would not provide additional differentiation between vehicles. This is because, for purposes of compliance with EPA’ s GHG standards beginning in model year 2012, CH4 and N2O values would be based on emission f actors–that is, set values applied to each vehicle, rather than direct measurements. Becau se these values would be set at the same level for all vehicles, the agencies do not believe th at including them would provide consumers with additional useful information.

Similarly, the agencies propose that the gr eenhouse gas information be based on CO2 emissions for the vehicle model type, rather than the carbon-rela ted exhaust emissions (CREE) methodology used to determine fuel consumpti on for CAFE programs and compliance with the light duty greenhouse gas requirements. The use of CREE adds a level of complexity that, while useful for compliance purposes, may not be bene ficial to public understanding of the relative differences in GHG emissions between vehicles because the levels of other carbon-related emissions are low relative to CO2 emissions. Although the agencies propose that the greenhouse gas information on the label be based only on CO2, we also seek comment on whether and, if so, how, the other greenhouse gases and carbon- related emissions should be included.

Regarding the underlying test procedures to be used to determine the vehicle-specific GHG performance information for the labels, the ag encies propose that the CO2 values presented on the label be based on the five-cycle test pr ocedures that are currently utilized for fuel economy labeling purposes. 63 These test procedures measur e rates of tailpipe CO2 and other emissions, which form the basis of the fuel econo my values currently used for vehicle labeling.

63 40 CFR part 600.210-08.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 29 of 315 The five-cycle test procedures have been us ed for labeling since model year 2008, and have significantly improved the correla tion between label values for MPG and those seen in actual use. Manufacturers could thus calculate CO2 emi ssion rates using the same approach that they use for label fuel economy values, which the ag encies know to be well-correlated with actual performance in use. More specifically, if a manu facturer uses the "deriv ed five cycle" method for determining mpg for fuel economy labeling, th ey would use the same method for determining CO2 for labeling purposes. The city and highway CO2 emissions test results would then be used in the derived five-cycle equations, which the EPA has converted from a mpg basis to a CO2 basis for this purpose. Similarly, vehicle model t ypes that are using the "full five cycle" method for fuel economy labeling would use the CO2 re sults from those tests for purposes of fuel economy labeling. The agencies are therefore pr oposing that manufacturers use the same fivemethodology currently utilized for fuel economy labeling purposes for determining GHG values for purposes of the new label.

As far as emission sources to include, NHT SA and EPA propose that the greenhouse gas emissions represented on the label in clude only vehicle tailpipe emissions, 64 and do not account for any GHG emissions generated upstream of the vehi cle. This approach is also consistent with the vehicle GHG emissions compliance levels recently adopted by EPA, which treat GHG emissions for electric operation as zero up to a cumulative production cap per manufacturer. 65

When exploring this issue with focus groups, the agencies found that most participants did not consider the issu e of upstream emissions either way. A few raised it when they noted that an electric vehicle indicat ed zero emissions, and suggested that these vehicles did cause some emissions at the power plant, wh ich should be represented on the label. 66 On further discussion, they generally determined that it woul d be challenging for the label to meaningfully represent the range of emissions from power plants operated on different fuels, and suggested that this information was obt ainable from other sources. 67 Given space constraints and the difficulty of explaining the potenti al range of upstream emissions due to different fuel sources, participants tended to agree that this issue co uld be adequately addressed by a statement on the label indicating that the CO2 values on the labe l represented vehicle ta ilpipe emissions only. The label designs presented in this NPRM include th e words “Tailpipe Only” next to the CO2 value presented; the agencies seek comment on whethe r this wording will be readily and uniformly understood to mean that upstream GHG emissions are not being reflected on the label, or whether other, more direct wording might be clearer and more helpful to consumers.

Aside from tailpipe CO2, the agencies are not proposing, but seek comment on the inclusion of an additional f actor in the GHG performance used for labeling: air conditioning

64 The agencies seek comment on the potential inclusion of GHG emissions reflecting from A/C leakage credits, as described later in this section.
65 EPA placed a cumulative production cap on the total production of EVs, PHEVs, and FCVs for which an individual manufacturer can claim the zero grams/mile compliance value during model years 2012-2016. The cumulative production cap will be 200,000 vehicles, except th at those manufacturers that sell at least 25,000 EVs, PHEVs, and FCVs in MY 2012 will have a cap of 300,000 ve hicles for MY 2012-2016. See 75 FR 25436 (May 7, 2010)
66 EPA Fuel Economy Label Phase 3 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
67 EPA Fuel Economy Label Phase 3 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 30 of 315 (A/C) credits generated by a manufacturer under the light dut y vehicle GHG requirements. Air conditioning (A/C) systems contribute to GHG emissions in two ways. Hydrofluorocarbon (HFC) refrigerants, which are powerful GHGs, can leak from the A/C system (direct A/C emissions). Operation of the A/C system also places an additional load on the engine, which results in additional CO2 tailpipe emissions (ind irect A/C related emissions). The efficiencyrelated A/C impacts are accounted for in the five -cycle tests utilized for fuel economy labeling and proposed as the basis for GHG labeling purposes. However, EPA and NHTSA are considering whether allowing ma nufacturers that generate cred its towards their GHG compliance obligation by reducing A/C leakage-related GHGs s hould be allowed to factor these credits into the CO2 value displayed on the label and used as the basis for the GHG rating. Allowing manufacturers to factor A/C credits into the GHG performance metric on the label would reward them for making A/C leakage improvements, but it would also cause the GHG performance value and the fuel economy pe rformance value to diverge, and would impact the methodology for any rating system that combines GHGs a nd fuel economy. EPA and NHTSA seek comment on whether and, if so, how, to allow the use of A/C credits for the purposes of labeling, with specific focus on the methodology and how the labe ls should display th e inclusion of A/C leakage credits if the agencies decided to allow their use.

EPA and NHTSA are proposing to use grams per mile as the metric to display greenhouse gas performance information on the label, which would be consistent with the metric used for GHG emission standards and compliance fo r light duty vehicles. The agencies believe that this metric is also co nsistent with requirements in 49 U.S.C. § 32908(g)(1)(A) that performance reflect emissions “over the useful lif e of the automobile.” As with fuel economy, the agencies do not at this time expect notable deterioration of greenhouse gas emissions levels over a vehicle’s useful life. However, the agen cies seek comment on alternative approaches to convey GHG performance information, such as tons per year, using an approach parallel to that discussed in section II for annual cost information.

4. Fuel Economy and Greenhouse Gas Rating Systems

EISA requires that the label include a “rat ing system that would make it easy for consumers to compare the fuel economy and gr eenhouse gas and other emissions of automobiles at the point of purchase, incl uding a designation of the autom obiles with the lowest greenhouse gas emissions over the useful life of the vehicles, and the highest fuel economy....” 68 The two co-proposed label designs present two varia tions on ratings systems for fuel economy and greenhouse gas emissions, based on two interpretations of the st atutory language. These two approaches - separate absolute ratings for fu el economy and greenhouse gases, and a relative rating that combines the two fact ors - are not mutually exclusive, and a label could contain one or both.

In developing rating systems, the agenci es are cognizant of the focus group testing conducted for this proposal, in which it appear ed that many participants did not rely on any rating system. Perhaps due to their familiarity with the prominently displayed mpg numbers, many participants relied initially and sometimes exclusively on mpg or mpg-e label values to

68 49 U.S.C. 32908(g)(1)(A)(ii).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 31 of 315 compare vehicles to one another. 69 Given this result, the agenci es are proposing two different approaches to the ratings.

The first approach is displayed at the bottom of Label 1 and Label 2: separate ratings scales for fuel economy and greenhouse gas emi ssions, bounded by specific values for the “best” and the “worst” vehicles, and with specific fuel economy and GHG emissions values for the vehicle model type in question id entified in the appropriate locati on on the scale. The scales on Label 2 are essentially larger ve rsions of those on Label 1, with the addition of a within-class indicator on the fuel economy scale to meet the EPCA 70 requirement for comparison across comparable vehicles.

This variation - absolute rati ng scales - directly utilizes th e actual fuel economy and CO 2 performance values per vehicle model type to de fine the rating, which the agencies believe has both potential benefits and drawbacks. The ag encies believe that, by rating vehicles on an absolute scale, this approach clearly meets the text of the EISA requirement for providing fuel economy and GHG performance information and i ndicating highest fuel economy and lowest GHG vehicles. The rating system allows the consum er looking at the label on the dealer’s lot to identify precisely the highest and lowest fuel eco nomy values available, the lowest and highest GHG emissions values available, and where the vehi cle bearing the label falls in relation to these extremes. When this variation was presented in focus groups, some participants liked the level of detail provided by absolute rating scales and found it helpful in understanding how a vehicle compared to the “best” and “worst” vehicles avai lable, although others fo und it to be more detail than they wanted or did not pay atte ntion to this information on the label. 71

However, even for those consumers who appr eciate this level of detail in comparing vehicles by fuel economy and GHG emissions, there is the possibility that the “best” will change over the course of the model year and that the mpg or gram/mile value at the end of the scale may no longer be accurate. Highest and lowest values to be used on the scale would be provided to manufacturer s by EPA prior to the start of the model year via annual guidance. Because these values will be based on the previous model year plus any additional information regarding the upcoming new sales fl eet available to the EPA, they are expected to be relatively accurate. However, because they are projected values, the introduction during the model year of any new and unexpected vehicles not previously identified to EPA could potentially cause inaccuracy in the end points of the rating scales. In general, because of the expected introduction of electric vehicles, which have no tailpipe CO 2 emissions and thus anchor one end of the scale at zero, and because of the expectation that, for the foreseeable future, one or more vehicles will anchor the opposite end at a relatively constant leve l, the agencies believe that the end points will likely remain relatively constant, but they may not remain exactly constant. The agencies therefore seek comment on how si gnificant this potential for inaccu racy could be on consumers’ ability to use the absolute rating scales to compare fuel economy and GHG emissions across vehicles, and on whether commenters believe the la bels would have to be revised in order to meet the statutory requirement every time a new “best” vehicle was introduced if they were not accommodated by the end points.

69 EPA Fuel Economy Label Phase 3 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
70 49 U.S.C. 32908(b)(1)(C).
71 EPA Fuel Economy Label Phase 3 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 32 of 315 The second approach to a rating system is al so displayed on Label 1: a combined rating scale for fuel economy and GHG emissions, shown in the form of a letter grade. Because vehicles that are low in CO 2 emissions have inherently good fu el economy (and vice versa), and because CO 2 emissions are the primary determinant of fuel economy using EPA test procedures, vehicles would generally tend to have the same “score” for fuel economy as for GHG emissions. Thus, if the ratings are equivalent , as a practical matter, it would be consistent with the statutory requirement to provide a single, combined rating system.

The proposed letter grade scale would range from A+ to D, including plus and minus designations to provide more opportunities for improvement. All vehicles would receive a “passing” grade - that is, the ratings would not in clude an “E” or “F” grade - because all vehicles must meet CAA requirements in order to be so ld, and the agencies do not wish to convey otherwise. Additionally, the “A +” vehicles - with associated text stating the range of letter grades - will indicate which vehicles are the “b est,” thus, meeting the requirement that the label designate highest fuel economy a nd lowest greenhouse gas vehicles.

This variation of a fuel economy and gree nhouse gas rating system was suggested by the expert panel and was not presented in focus groups, but many focus group participants favored the simplification of information presented when possible, and the agencies believe that such a well-known rating approach will be immediately recognizable by the majority of consumers. The agencies are also hopeful that a rating system as simple as a letter grade may encourage consumers to rely more on the rating system its elf in making purchasing decisions, rather than on, for example, mpg numbers, which are subject to the “mpg illusion” issue discussed above.

A letter grade allows vehicles purchasers to make a relative assessment among vehicles with different grades, and may al so motivate some consumers to make a more fuel efficient and environmentally-friendly choice. The proposed le tter grade scale would ra nge from A+ to D, including plus and minus designations to pr ovide more opportunities for improvement. All vehicles would receive a “passing” grade - that is, the ratings would not include an “E” or “F” grade - because all vehicles must meet Clean Ai r Act (CAA) requirements in order to be sold, and the agencies do not wish to convey otherwise.

As noted above, CO2 emissions are directly measured by EPA and form the basis for calculating the fuel efficiency of the vehicle; us ing CO2 as the basis for the rating is the most direct methodological approach and will avoid a ny rounding discrepancies that could occur from converting to mpg and then to fuel consumption. It also avoids the need to adjust the mpg thresholds by fuel type to account for differences in the energy content of fuel. Utilizing CO2 as the controlling factor in the ra ting thresholds is a practical co nsideration and is not meant to imply that GHG emissions are more important than energy use; both are relevant considerations and are viewed by the agencies as eq ually important under the rating system. 72

72 The direct relationship between CO2 and fuel consumption breaks down to some extent for vehicles with electric operation. For these vehicles, tailpipe CO2 emissions are ze ro; however, energy is cons umed by the vehicle and an energy efficiency value othe r than infinity can be assigned. Neverthe less, given that electric drive trains are currently much more efficient than th ose for conventional vehicles, the relationship between those vehicles emitting zero CO2 and having the highest energy efficiency holds tr ue at the present time. Th is approach may need toFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 33 of 315 The agencies propose to base this rating system approach on the range of CO2 emissions for the projected fleet, placing the middle of the rating scale at the combined 5-cycle CO2 for the median vehicle, 73 with equal-sized increments of CO2 assigned to each grade or rating. 74 The higher-GHG end of the scale would therefore be twice the CO2 emissions rate of the median value, although, effectively, any vehicle higher th an this level would al so receive the lowest rating. Under such an approach, the median va lue would become more stringent over time as a result of GHG emissions requirements and, thus, the entire scale would shift toward lower GHG levels. Unless a vehicle model reduced its rate of CO2 emissions across the model years, its ratings would gradually drop over time. This ap proach would be consistent with both the evolution of fuel economy and emission requireme nts, and the public expe ctation that products evolve over time. The CO2 thresholds associat ed with each rating would be determined on an annual basis and provided through guidance in ad vance of the model year. EPA would require that manufacturers use the ratings from the prior year if they are in a posi tion to need to label a vehicle before the annual guidance has been issued.

The following example is based on model year 2010 data and assumes that one or more vehicles that emit zero CO2 tailpipe emissions ( i.e. , electric or fuel cell vehicles) have entered the market. Gasoline-equivalent MPG values are provided in the table for clarity. However, the agencies propose that the CO2 values be cont rolling for purposes of assigning the rating.

Table II.A.4-1 Example Fuel Economy and Gr eenhouse Gas Rating System

CO2 Range (grams per mile) Rating Combined gasoline MPG or MPGe 0-76 A+ 117 and higher 77-152 A 59-116 153-229 A- 40-58 230-305 B+ 30-39 306-382 B 24-29 383-458 B- 20-23 459-535 C+ 18-19

reassessed in the future if efficiencies of electric drive an d conventional vehicles begin to approach each other, or if it is desired to differentiate between the efficiencies of electric-powered ve hicles, but should not be a necessary consideration in the fo reseeable future.
73 Median vehicle is determined by vehicle model type, w ith model type as defined in Part 600 (include exact citation)
74 The agencies evaluated several potential methodologies fo r creating this rating system besides equal increments of CO 2 . We rejected an approach that would create the ratin g system based on establishing equal size categories for the ratings using miles per gallon – that is, taking the range of mpg of the vehicle fleet and dividing that range into ten equal segments. Given that the fleet will soon see vehicles that achieve mpg-equivalent values of 75 to 100, the agencies were concerned that this methodology would create a situation where a vehicle such as the 2010 Toyota Prius (which gets a combined mpg of 50 mpg) would r eceive only an average rating. Using this method would result in the vast majority of vehicles receiving a rating we ll below the middle rating, whic h would not seem to be an appropriate result of a rating system. However, the agen cies seek comment on whethe r a combined rating system based on mpg instead of on CO 2 might be developed in a way that avoided these results.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 34 of 315 536-611 C 16-17 612-688 C- 14-15 689-764 D+ 13 765-842 and higher D 12 and lower

This example would result in th e following distributions of ra tings, based on 2010 vehicle model types, plus several additional vehicles indicated as “Electri c Vehicle” and “Plug-in Hybrid Electric Vehicle.” 75

75 The additional vehicles are examples of types expect ed to enter the commercial market. The CO2 and mpge values shown are examples only and are not ba sed on any formal testing or certification data.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 35 of 315 Applying this rating system to model year 2010 da ta would assign the rati ngs as follows for the sample vehicles listed. Of course, future mode l year vehicles could re ceive different ratings from those shown in this example.

CO2 g/mi MPGe Sample Vehicles

A+ 0-76 117 and up Electric Vehicle

A 77-152 59-116 Plug-In Hybrid Electric Vehicle

A- 153- 229 40-58 Toyota Prius, Honda Civic H ybrid, Ford Fusion Hybrid

B+ 230- 305 30-39 Nissan Altima Hybrid, Ford Escape Hybrid, Honda Civic, Toyota Yaris, Toyota Corolla, Chevy Cobalt, VW Golf

B 306- 382 24-29 Hyundai Elantra, Nissan Sentra , Ford Focus, Toyota Scion, Mazda Tribute, Toyota RAV 4, Nissan Cube, Toyota Matrix, Toyota Camry, Chevy HHR, Honda Accord, Ford Fusion, Jeep Patriot, Pontiac G6, Chrysler Sebring

B- 383- 458 20-23 Mazda 5, Nissan Rogue, Mitsubishi Eclipse, Toyota Avalon, BMW 328i, Chevy Impala, Chevy Silverado Hybrid, Hyundai Santa Fe, Mitsubishi Lancer, Pors che Boxster, Subaru Forester, Toyota Tacoma, Honda O dyssey, Toyota Highlander

C+ 459- 535 18-19 Acura MDX, BMW X3, Dodge Caravan, Ford Crown Vic, Cadillac CTS, Buick LaCrosse, Chrysler Town and Country, Ford Mustang, Honda Pilot, GMC Canyon, Kia Sedona, Jaguar XJ, Mitsubishi Eclipse, Toyota 4Runner, GMC Sierra, Ford Ranger, Toyota Sienna, Chevy Tahoe, Jeep Grand Cherokee

C 536- 611 16-17 BMW 750i, Chevy Corvette, Ford Explorer, Ford F150, Toyota Tundra, Aston Martin DB8, Dodge Charger

C- 612- 688 14-15 Chevy Express, Land Rover Range Rover, Lexus LX 570, Maserati Quattroporte, Nissan Titan, BMW M5

D+ 689- 764 13 Ferrari Fiorano, Mercedes-Benz Maybach

D 765 and up 12 and down Ferrari ScagliettiFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 36 of 315 One potential issue with this approa ch is that a rating system based on CO 2 emissions may not be an adequate proxy for a fuel economy rating system if the agencies decide in the final rule to allow manufacturers to use A/C credits in determining their CO 2 emissions values. Since fuel economy by definition does not account for HFC leakage, a CO 2 rating boosted by A/C leakage credits would not accurate ly represent the vehicle’s fuel economy rating. EISA requires that labels include a rating system that al lows consumers to compare fuel economy across vehicles, so a fuel economy rating system that includes HFC leakage arguably would not meet these requirements. The proposed Label 1 would address this issue, whether A/C were included in the letter-grade rating or not , by virtue of also having the ab solute rating scale for fuel economy at the bottom of the label. Still, the agencies seek co mment on whether a rating system that combined fuel economy and CO 2 emissions could accurately describe both if A/C credits were permitted to be included in the rating system for CO 2
. Another issue with using a CO 2 -based method is the fact that some diesel vehicles would see their rating reduced by 1⁄2 letter grade – i.e. , diesel vehicles would appear “worse” to the consumer in the rating system – relative to an approach that relied on mpg or fuel consumption, given the higher carbon content of a gallon of diesel fuel compared to a gallon of gasoline. This could potentially discourage some sales of dies el vehicles if consumer s are influenced by the rating system, which the agencies may not necessar ily want to accomplish. However, because a consistent basis is needed across all fuels, mpg-e would need to be used rather than mpg: this would provide equivalency on an energy rather th an a volume basis, and would allow the use of an mpg-type metric across fuels that are not dispensed by the gallon, such as CNG and electricity. Since gasoline, diesel , biodiesel, and ethanol have near ly equivalent ratios of energy to carbon, the choice of mpg-e vers us CO2/mile has minimal impact on the rating system results, particularly for liquid fuels. The agencies nevertheless seek comment on how significantly a CO 2 -based rating system might impact diesel sale s, and whether an mpg-e-based rating system might ameliorate any such impact, and if so, how that rating system would need to be structured for technology neutrality.

In practical terms, this means that the rati ng system would include all vehicles for which fuel economy information and labeling is requir ed, which currently includes all passenger automobiles and light trucks as defined by NHTSA at 49 CFR Part 523. More specifically, the rating system would span all automobiles up to 8,500 pounds gross vehicle weight, plus some vehicles (large SUVs and some passenger vans) between 8,500 and 10,000 pounds gross vehicle weight. We believe that this is consistent with the intent of C ongress, based on the text of EISA which refers clearly to labels for “automobiles” rather than “passenger” or “non-passenger automobiles,” and which states that the rating sy stem must include a de signation of the vehicle with the highest fuel economy and lowest GHG emissions. 76 The approach of including all vehicles in a single rating system is supported by the market research a nd literature reviews done for this proposal, which show that, while pros pective vehicle purchasers narrow their choices by vehicle type early in the buying d ecision, they do not focus narrowly on a single class, at least as defined by EPA. Focus group participants indicate d that they shopped, on average, across two to three vehicle classes. 77 For these consumers, a single rating system will enable them to make accurate vehicle comparisons across whichever ve hicles they choose to shop. Market research

76 49 U.S.C. 32908 (g)(1)(A)(ii).
77 EPA Fuel Economy Label Pre-Focus Groups Online Survey Report, Prep ared by PRR, In c, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 37 of 315 also indicates that consumers have varying definitions of what constitutes a specific vehicle class, thus making it challenging to categorize vehicles in a way that is useful for all consumers.

Nevertheless, EPA is seeking comment on ra ting passenger cars separately from light duty trucks under its authority to require other information related to fuel economy as authorized by the Administrator at 49 U.S.C. 32908(b)(1)(F). 78 In this case, EPA would propose to use the same definitions for cars and trucks used for light-duty fuel economy and GHG standards, which are NHTSA’s definitions provided in 49 CFR Part 523. Doing so would be consistent with automaker obligations under those requirements, in which cars and trucks have separate sets of standards. Additionally , market research shows that, wh ile many people shop across several narrowly-defined classes, about tw o-thirds shop exclusively among e ither trucks or cars. These consumers might find it useful to compare among onl y those vehicles of inte rest. If a commenter believes that separate rating systems for cars a nd trucks would be preferable, EPA especially seeks comment on whether those consumers th at shop among both cars and trucks could adequately compare across their vehicles of inte rest if ratings systems were separated, and whether or not the emerging “crossover” mark et will make this “ca r/truck” distinction increasingly less relevant and poten tially confusing to the public. 79

5. Other Emissions Performance and Rating System

In addition to fuel economy and greenhouse gas information and ratings, EISA requires new vehicles to also be labeled with informati on reflecting a vehicle’s pe rformance in terms of “other emissions,” and a rating system that w ould make it easy for consumers to compare the other emissions of automobiles at the point of purchase. 80 Unlike fuel economy and GHG emissions, EISA does not expressl y require the designation of the “best” vehicle in terms of other emissions. This section lays out the crit eria that EPA proposes NHTSA use to form the basis for other emissions performance and ratings . Concurrently, NHTSA proposes that these criteria be used as the foundation for inform ation that is provided on the label.

Congress did not precisely defi ne in EISA which of the po llutants in the universe of possible candidates for “other emissions” shoul d be included for labeling purposes. The agencies assume that Congress did not intend to create any new substantive requirements as part of this labeling provision for pollutants that ar e not currently regulated and, thus, propose that “other emissions” include those ta ilpipe emissions, other than CO 2 , for which vehicles are required to meet current emission standards. These air pollutants co mprise both criteria emissions regulated under EPA's National Ambien t Air Quality Standards and air toxics, and include:

78 NHTSA does not interpret 49 U.S.C. 32908(g)(1)(A)(ii) as permitting rating systems based on less than the entire fleet, so a rating system for fuel economy and/or GHG emissions based on only the car or truck fleet would not be sufficient to satisfy EISA’s requirement, although EPA could require such a rating system under its authority.
79 For example, under NHTSA’s and EPA’s definitions, the same version of a crossover could potentially be a “car” if it were two wheel drive and a “truck” if it were four whee l drive. A consumer looking at the labels of these two vehicles side by side might find it challenging to understand why their ratings were different.
80 49 U.S.C. 32908(g)(1)(A).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 38 of 315 • NMOG—non-methane organic gases;

• NOx—oxides of nitrogen;

• PM—particulate matter;

• CO—carbon monoxide; and

• HCHO—formaldehyde.

Auto manufacturers must provide the agency with emission rates of these pollutants for all new light duty vehicles each model year unde r EPA’s Tier 2 light duty vehicle emissions standards requirements, 81 or the parallel requirements for thos e vehicles certified instead to the California emissions standards. 82 Emission standards for these pollutants are aggregated into bins; each bin contains emissions limits on a gram per mile basis for each of the aforementioned pollutants for the useful life of th e vehicle, as shown in Table II.A.5- 1. To be eligible for sale in the United States, each vehicle model and configur ation must be certifie d to a specific bin, meaning that the automaker is confirming that th e vehicle is designed not to exceed the specified emission rates for any of the pollutants over the us eful life of the vehicles. Automakers must submit data to EPA that demonstrates compliance w ith these levels, with a requirement that their fleet achieve a sales-weighted NOx average equiva lent to the bin 5 leve l or cleaner annually. California and states that have adopted Califor nia emissions standards in lieu of the federal standards have similar sets of emissions st andards, known as the Low Emitting Vehicle II (LEVII) standards. 83

Table II.A.5-1 US EPA Light Duty Tier 2 Emission Standards Emission Limits at Full Useful Life (120,000 miles) for Model Year 2004 and Later Light Duty Vehicles, Light Duty Trucks, and Medium Duty Passenger Vehicles NOx (g/mi) NMOG (g/mi) CO (g/mi) PM (g/mi) HCHO (g/mi) Bin 1 0 0 0 0 0 Bin 2 0.02 0.01 2.1 0.01 0.004 Bin 3 0.03 0.055 2.1 0.01 0.011 Bin 4 0.04 0.07 2.1 0.01 0.011 Bin 5 0.07 0.09 4.2 0.01 0.018 Bin 6 0.1 0.09 4.2 0.01 0.018 Bin 7 0.15 0.09 4.2 0.02 0.018 Bin 8 0.2 0.125 4.2 0.02 0.018

81 40 CFR part 86, subpart S.
82 42 U.S.C. 7543(b), Clean Air Act Section 209, gives California special authority to enact stricter air pollution standards for motor vehicles than the federal government’s, as long as under certain requirements are met. 42 U.S.C. 7507, Clean Air Act Section 17 7, allows states, under certain cond itions, to adopt California’s vehicle emission standards. See 40 CFR 86.1844-01.
83 The California Low-Emission Vehicle Regulations for Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles, Title 13, California Code of Re gulations (last amended March 29, 2010).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 39 of 315 The agencies considered whether to provide specific information and ratings for each of these individual pollutants list ed above. EPA Tier 2 emission regulations do require manufacturers to submit specific information re garding the performance of each vehicle for each of these pollutants, but the agencies believe that attempting to require all of it to be represented on the fuel economy label, along with rating sy stems for each, would be unduly burdensome and not reasonable given space constr aints and the need to present a ll the other information required by EPCA and EISA.

In addition, in the focus groups conducted for this proposal, consumers’ interest in actual emissions levels across multiple pollutants was mini mal, and this level of detail is likely to be well beyond that which most members of the public would seek or find useful. 84 Repeatedly, focus group participants reflected that it was the job of the govern ment to determine the relative importance of the pollutants, and that the labe l should not leave this determination up to the individual. Given that EISA did not specify exactly which pollutants would make up “other emissions” and given focus group feedback that differentiation between ot her emissions did not add value for many participants, the agencies are not proposing to provide pollutant-specific information on the label for “other emissions. Nevertheless, the agencies seek comment on whether pollutant-specific information and rati ngs might have value to consumers beyond what the agencies have seen in their focus group res earch, and if so, how the agencies might design a label to require pollutant-specific information a nd ratings that would make it easy for consumers to compare other pollutant emissions acro ss vehicles at the point of purchase.

Instead, the agencies believe that a rating based on the groups of emissions standards-- either the Federal Tier 2 bin system or the California LEVII system, as appropriate—can and should be used to meet this requirement. This approach mirrors the cu rrent Air Pollution Score on EPA’s Green Vehicle Guide ( www.epa.gov/greenvehicle ). Vehicle certification under either the Federal Tier 2 bin system or the Californi a LEVII system allows auto manufacturers to certify that their vehicles will fall into an emissi ons range across each of the regulated pollutants. In effect, the Federal and California systems rate vehicles according to their air pollution emissions by compiling the requirements across multiple pollutants into one category (a Tier 2 bin or a LEVII standard). Though these systems ar e useful for regulatory compliance, they have limited recognition among consumers. However, relative rating systems are well-recognized by the public, and the Federal emissions bins and Calif ornia standards categori es are well-suited to conversion to a relative rating system that would be readily understandable.

EPA and NHTSA therefore propose to establish a rating system for “other emissions” in which each rating is associated with a bin from the Federal Tier 2 emissions standards (or comparable California emissions standard). Ta ble II.A.5-2 provides an example of how such a system would work for a ten-point rating scale. 85 Various graphical repres entations of this rating are being contemplated, as discussed in Section III.

84 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010. 85 Under EPA regulations, Independent Commercial Importers (ICIs) are allowed to import a limited number of older vehicles that can be certified to the emission standards which were in effect at the time the vehicle was produced. In some cases, these standards may be pre-Tier 2 standards. Because the rating system being proposed for other pollutants on the FE label is based on the Tier 2 bin structure, we are proposing that vehicles imported byFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 40 of 315 Table II.A.5-2 Proposed Rating System for Other Emissions

Rating EPA Tier 2 Emissions Standard California Air Resources Board LEV II Emissions Standard 10 Bin 1 ZEV 9 N/A PZEV 8 Bin 2 SULEV II 7 Bin 3 N/A 6 Bin 4 ULEV II 5 Bin 5 LEV II 4 Bin 6 LEV II opt 1 3 Bin 7 N/A 2 Bin 8 SULEV II large trucks

1 N/A ULEV & LEV II large trucks

Because such a rating would be directly reflective of the emissions standards requirements for air pollutants to which the vehicle is certified, the agencies believe that it could serve the dual purposes of perfor mance information and ratings for “other emissions” as required by 49 U.S.C. § 32908(g)(1)(A)(i) and (A)(ii). Such an approach would have the advantage of avoiding requiring detailed information on the la bel that would detract from the key elements and could be of minimal use to the majority of the public. NHTSA and EPA seek comment on whether also utilizing the rating system to meet the requirement for performance information on other emissions would be permissible under EISA.

6. Overall Energy and Environmental Rating

One of the issues that came up frequently in the focus groups conducted for this proposal was how to design a label that balanced the comp eting interests of comp leteness and simplicity. It became clear that different consumers wanted different amounts of information and levels of detail about fuel economy, GHG em issions, and other emissions, a nd how vehicles compare to one another. Many focus group participants expr essed an interest in most or all of the information that might be offered, until they saw that the label they had “designed” would be cluttered and difficult to read; at this point, many culle d their desired information down to a few key elements. Other participants simply were not interested in much detail. Yet other

ICIs that are not subject to the Tier 2 standards will auto matically be rated as a "1" (i.e., the rating assigned to vehicles with the worst emissions under the Tier 2 bin structure).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 41 of 315 participants insisted that they wanted more de tail anyway and would not find labels with more information distracting or confusing. 86

One approach that emerged to condense th e level of detail was to combine rating systems: for example, a rating system that combined fuel economy and CO 2 emissions, or that combined CO 2 and other pollutant emissions, or that co mbined all three. Because they have different sets of units and diffe rent scales, rating systems that combine different data elements must employ relative or unit-free scales, such as the letter grade system, rather than absolute approaches like the separate rating scales discussed above. Usi ng the bar as an example, if CO 2 and other pollutants were combined into a single ba r, a vehicle that falls at one point between the absolute end points for CO 2 emissions may not fall at the same point between the (different) end points for other emissions, which would make combining the ratings challenging at best, and unhelpful at worst. Similarly, while a vehicle ma y fall at roughly the same point between “best” and “worst” absolute values for both fuel economy and CO 2 emissions, differences in scale make presenting that visually difficult and possibly factually incorrect.

Thus, if the agencies wanted to try to comb ine rating systems for visual simplicity and to appeal to consumers who want labe ls with less information, a relative scale – 1 to 10, 1 to 5, A+ to D – is needed. The agencies tested combin ed relative scales for GHG and other pollutant emissions fairly extensively in the focus gr oups, with mixed results. When environmental ratings were shown in the cont ext of the label, the preference was for a consolidated environmental rating, with participants expressing minimal interest in having separate information on greenhouse gases and other air polluta nt emissions; these part icipants often stated that the EPA was in a better position to asse ss the relative concerns regarding the various environmental factors than were the participants themselves. 87 In contrast, however, when the environmental rating approaches were shown in isolation, apart from the context of the entire label, many participants indicated a preferen ce for two separate rati ngs, arguing that more complete information holds more value. 88

Congress required in EISA that each new vehicl e must be labeled with a “rating system that would make it easy for consumers to co mpare the fuel economy and greenhouse gases and other emissions of automobiles at the point of purchase, including a designation of automobiles with the lowest GHG emissions over the useful li fe of the vehicles; and the highest fuel economy . . . .” Thus, for purposes of meeting the statut e, the question is whether a rating that combined two or all three elements could accurately reflec t which vehicle achieves the lowest GHG and the highest fuel economy. For purposes of meeting consumers’ needs in a label, the question is how to design a label that is helpful both to the peopl e who want more information and detail and to the people who want less information and detail. Given the EPCA requirements for fuel economy and annual cost information, and the EISA requirements for performance information on fuel economy, greenhouse gases, and other emissions, the agencies believe that the needs for more detail-oriented consumers will likely be adequately met.

86 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
87 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
88 EPA Fuel Economy Label Phase 3 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 42 of 315 In the previous section we discussed an a pproach to combining fuel economy and CO2 into one overall rating; in th is section the agencies discus s the additional option of also combining “other emissions” with either CO2 or with a combined fuel economy/CO2 rating. EPA and NHTSA recognize that there is not a strong correlation be tween CO2 and other emissions, due to sophisticated emission contro l systems, such as catalytic converters and exhaust gas recirculation, which target reductions of specific pollutants but do not also reduce CO2 emissions. In addition, the agencies are cogni zant of the very real challenges automakers must overcome to achieve the required emissions levels and do not wish to deprive them of public recognition of advancements in reducing ai r pollutants that could come with a separate rating system for pollutants. Moreover, a se parate rating would provide information for purchasers who value low emission levels and an opportunity to raise awareness among other consumers of which vehicles produce lower emi ssions. And finally, as discussed above, the agencies have determined that a rating for “other emissions” also meets the EISA requirement of providing vehicle performance information for thos e emissions. Combining this rating for “other emissions” with ratings for fuel economy a nd greenhouse gases would potentially be at odds with this requirement. For these reasons, th e agencies propose that the rating for “other emissions” be separate from the rating(s) for fuel economy and greenhouse gases.

Nevertheless, while some focus group participan ts wanted more information, most clearly wanted less and suggested that th ey would glean little a dditional value from a label with separate ratings. The agencies seek comment on whether it would be more useful to provide a single rating that captures all three el ements: fuel economy, greenhouse ga ses, and other emissions. As a matter of technical appropria teness, although there is not a strong correlation between emissions of CO2 and emission of other pollutants, there is some correlation. The vehicles with the lowest fuel economy levels and highest CO 2 emissions do not typically meet the cleaner emission bins; conversely, those with high fuel economy and low CO2 emissions are rarely, if ever, certified to the hi gher emission bins.

Including other emissions in th e rating system to form one rating would simplify for the consumer the overall energy and environmental impact of using the vehicle, thus reducing their need to weigh the relative importance of the various elements. It also allows the label to be less cluttered and more streamlined.

Therefore, it is possible and perhaps reasona ble to combine “other emissions” with the fuel economy/CO2 letter grade appr oach. Under this approach, th e rating for fuel economy and greenhouse gases applicable to a vehicle would be adjusted upward or downward, based on the Federal emissions bin (or California standard) to which the vehicle is certified. That is, vehicles that are certified to the cleanest bins would have their rating increased—for example, under a letter grade system, a bin 2 vehi cle otherwise eligible for a B+ would have their rating increased to an A-. Table II.A.6-1 illustrates how such a system could work

.

Table II.A.6-1 Potential Comprehensive Rating Fuel Economy/ Greenhouse Gas Rating Overall Energy and Environment RatingFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 43 of 315 Bin 1, 2, 3 Bin 4, 5 Bin 6, 7, 8

A+ A+ A+ A A A+ or A (see next section) A AA- A A- B+ B+ A- B+ BB B+ B BB- B B- C+ C+ B- C+ CC C+ C CC- C C- D+ D+ C- D+ DD D+ D DThe agencies seek comment on whether the pu blic information purposes of EISA are met by incorporating the ratings fo r “other emissions” into the ratings for fuel economy and greenhouse gases and, if so, on the specific me thodology described above. The agencies particularly seek comment on whether the possibili ty that an “A” vehicle for fuel economy and GHG emissions can be made an “A +” vehicle by the addition of the higher rating for other emissions is consistent with EISA’s requirement that label rating systems clearly designate the vehicle that achieves the lowest GHG emissions a nd the highest fuel economy. This issue is discussed further in the following section.

7. Indicating Highest Fuel Ec onom y/Lowest Greenhouse Vehicles

In addition to ratings indicating relative em issions performance, EISA also requires the rating system to include “a desi gnation of automobiles with th e lowest greenhouse gas emissions over the useful life of the vehicles; and the highest fuel economy.”

Depending on the rating system(s) selected, differing approaches may be needed to achieve this requirement. For example, if the fuel economy and greenhouse gas ratings are provided separately, such as with the absolute bars shown on labels 1 and 2, consumers would be able to easily identify the highest fuel ec onomy and lowest greenhouse gas emitting vehicles by looking for those that have the highest absolute values. If fuel economy and greenhouse gases are combined into one rating, such as with the letter grade syst em, but are provided separately from other emissions, again consumers should be able to easily identify the highest fuel economy/lowest GHG vehicles by looking for thos e that achieve the best rating category. However, this will likely encompass more models than would be designated “best” under an absolute rating system, which may or may not have b een the intent of EISA. In that instance, the rating system itself meets the requirement for designation of lowest GHG automobiles, defined in that case as the group of vehicles that achieve the best rating category.

If, on the other hand, fuel economy and gree nhouse gases are combined with other emissions into a comprehensive rating, and no other information on th e label indicates theFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 44 of 315 highest fuel economy/lowest GHG vehicles, then the rating system would need to be adjusted in order to ensure that EISA requirements were me t. If the system were crafted as described previously--with the fuel economy/greenhouse ga s rating adjusted upward or downward based on a vehicle’s criteria pollutant emission bin—then the vehicles achieving the best category for fuel economy and greenhouse gases will also achieve the best comprehensive rating. This will certainly be the case under an approach based on tailpipe emissions, in which electric operation counts as zero for all emissions and the fuel economy/greenhouse gas score is based primarily on tailpipe emissions of CO2. In this situation, elec tric vehicles will receiv e the best possible rating for both fuel economy/greenhouse gases and other emissions.

However, to ensure that only those vehicles with the highest fuel economy and lowest greenhouse gas emissions receive the best rating, the system would be adjusted so that vehicles from the next group down would not be promoted to the highest ratings based on their air pollutant levels. In other words, under the letter grade system, vehicles would not be able to move from an A to an A+ grade if they were certified to bin 2 or 3. Therefore, only those vehicles that are eligible for the highest rati ng based fuel economy and CO2 would receive the best possible rating, which would then serve the purpose of designating the highest fuel economy/lowest GHG vehicles. The practical effect of this approach is that only electricpowered vehicles would be eligible for an A+ rating. The agencies seek comment on whether separate ratings should be provided for other emi ssions or whether a single combined rating for fuel economy, GHG and other emi ssions should be provided.

8. SmartWay Logo

EPA and NHTSA additionally seek comment on utilizing the SmartWay logo as an indicator of a high level of ove rall environmental performance. The SmartWay Logo appears as follows:

The SmartWay logo could be added to the label as a way of highlighting the top environmental performers each model year. This approach is contemplated for labels 2 and 3.

The trademarked SmartWay designation wa s launched in 2005 on the EPA’s Green Vehicle Guide website ( www.epa.gov/greenvehicle ) to provide consumers with a quick and easy way to determine which vehicles were the cleanest and most fuel efficient for each model year. It has been awarded to those vehicle models that achieve certain th resholds on the Greenhouse Gas score (which is tied to the vehicle’s fuel economy and fuel type) a nd the Air Pollution score (which is tied to the Tier 2 bi ns or California standards, as applicable). Historically, the SmartWay thresholds determined by EPA have b een targeted to approx imately the top 20% of vehicle models each model year, and have been tightened over time as the fleet has become cleaner and more fuel efficient.

The SmartWay logo for light duty vehicles is currently being used on a voluntary basis by auto manufacturers, vehicle-search web sites, rental car companies, banks/credits unions (green vehicle loan programs), and private companies (light duty commercial fleets andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 45 of 315 employee incentive programs). The SmartWay logo was included on labels shown to focus group participants for this rulemaking. Although participants did not recognize the logo, most readily understood that they could use it when sh opping for vehicles to quickly identify those that were environmentally frie ndly, without having to review th e rest of the environmental information on the label. 89

Because focus groups have indicated that some consumers prefer more detailed information while others prefer a simpler pr esentation, the agencies are seeking comment on whether to require or optionally allow the SmartWay logo on the label for applicable vehicles. This logo would indicate in a binary fashion, si milar to other eco-label s, whether \ a vehicle meets certain environmental and energy use threshol ds. Specifically, the agencies seek comment on whether including the SmartWay logo would be helpful to consumers on a label that already addresses fuel economy, GHGs, and othe r emissions in other formats.

9. Annual Fuel Cost

EPCA requires the estimated annual fuel cost be displayed on the fuel economy label. 90 Prior to 2008, the label simply displayed the estimated annual cost with no explanatory information. EPA’s consumer research in 2006 found that consumers paid lit tle attention to this metric, and the reason most frequently stated was that the assumptions behind the estimate (annual miles and fuel pri ce) were unknown to them. 91 As a result, the 2008 label modifications included a requirement that these assumptions be placed on the label. 92 EPA publishes annual guidance directing manufacturers what fuel pri ce to use for determini ng annual cost—based on projections made by the Department of Energy 93 --so that all vehicles in a given model year use the same assumptions. The estimated annual fuel cost can therefore be used to compare across vehicles of the same model year. As an example, the estimated annual fuel cost to be used for labels on model year 2009 gasoline-fueled vehicles is $2.80.

Despite the addition to the label of the assump tions behind the annual fuel cost starting in 2008, the early focus groups conducted in 2010 showed that many participants still did not pay much attention to the estimated annual fuel cost me tric. Participants ofte n stated that this was because fuel prices fluctuate and, therefore, th ey did not think that the fuel price assumption stated on the label reflected what they were actually paying. Less frequently, participants additionally said that the fact that they did not drive 15,000 miles a year made the estimated annual cost not meaningful to them. Participants remained skeptical of the use of estimated annual fuel cost even when asked to consider whether it could be a usef ul comparative metric across other vehicles of the same model year. In retrospect, it is possi ble that providing this information on the label about the assumptions be hind the annual fuel cost number resolved one issue and caused others, in that now there are tw o more numbers for the consumer to process and

89 EPA Fuel Economy Label Phase 3 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
90 49 U.S.C. 32908(b)(1)(B).
91 PRR, Inc., EPA Fuel Economy Label Focus Groups: Re port of Findings, prepared for U.S. Environmental Protection Agency, March 2005.
92 40 CFR 600.307-08.
93 The Department of Energy’s Energy Information Administration publishes gaso line and diesel fuel price forecasts at least annually in its Annual Energy Outlook , available at http://www.eia.doe.gov/oiaf/aeo/index.html

.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 46 of 315 question. There is also the possi bility that consumers are not aware that the two assumptions are used universally across all vehicl es, which would call into questi on the usefulness of the metric as a comparative tool at the point of purchase (for example, if th ey believe that the manufacturers individually determine the inputs to the estimated annual fuel cost). However, participants in the Phase 3 focus groups leading up to this NPRM consistently employed the annual fuel cost information (along with mpg) when asked to comp are the fuel efficiency of advanced technology vehicles like PHEVs and EVs w ith conventional vehicles, with their more complicated set of energy metrics. 94

Recognizing the EPCA statutory requirement to continue to display the estimated annual fuel cost, EPA requests comment on how to impr ove consumers’ understanding of the estimated annual fuel cost, whether it is a useful comparative tool across technologies, and if so, how to best communicate on the label that it is a valid comparative tool. EPA also requests comment on whether there might be an additional way to displa y fuel cost information – or a better way of displaying the required information – that might be more useful or might have a greater impact on consumers. In the 2010 focus groups, some groups were presented with a number of different ways of displaying fuel costs on th e label, ranging in magnitude from dollars per mile to dollars per five years. 95 A fairly clear preference emerged for do llars per year, with dollars per month a frequent second choice. 96 EPA is thus proposing labels that continue to prominently display the estimated annual fuel cost and the associated assumptions. EPA is requesting comment on whether the label should include the estimated mo nthly fuel cost, or ot her alternative cost information. Commenters should bear in mind th e statutory requirement that estimated annual fuel cost be on the label; thus any other cost woul d have to be an additional piece of information.

10. Relative Fuel Savings or Cost

The expert panel recommended another approa ch to presenting fuel cost information—to focus on the savings attainable by purchasing a more fuel efficient vehicle. These panelists felt strongly that savings is a much more powerful message than cost , which tends to be discounted, as just discussed. Although savings calculati ons would necessarily al so rely on assumptions, they suggested that the value of savings to th e consumer is significant enough to overcome these drawbacks, at least for a subs tantial portion of th e population. NHTSA and EPA therefore propose including a five-year savings value on Label 1. No such value is proposed for Labels 2 or 3, although the agencies could also require savi ngs information on these labels, if one of them were finalized.

The agencies explored a numb er of methods for calculating savings. The most promising approach seems to be savings compared to the pr ojected median vehicle for that model year, and the agencies propose this method. Thus, some vehicles would show a savings, while others would show consumers paying more for fuel over five years compared to a reference vehicle; these values would increase in magnitude the furt her the vehicle is in terms of fuel consumption from the reference value. This approach approp riately reflects that fu el cost savings become

94 EPA Fuel Economy Label Phase 3 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
95 EPA Fuel Economy Label Phase 2 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
96 EPA Fuel Economy Label Phase 2 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 47 of 315 larger the more a vehicle improves their fuel econ omy, and conversely that vehicles cost more to fuel when fuel efficiency is decreased when compared to the reference, median, vehicle.

As with the fuel economy and greenhouse ga s rating system and comparable class information, the EPA would provi de annual guidance indicating the value to be used as the reference against which the fuel cost savings wo uld be measured. The reference five-year fuel cost would be calculated by applyi ng the gasoline fuel price to th e average miles driven over the first five years of the reference vehicle’s li fe, assuming a particular fuel economy for the reference vehicle; these values would be provide d in the annual guidance. We propose that the fuel economy value for the reference vehicle be based on the projected fuel economy value of the median vehicle model type for sale the previous model year, not sales- weighted, and adjusted based on projections regarding th e upcoming model year. This va lue is expected to change slightly from one year to the next as the fl eet becomes more fuel efficient in response to regulations and market forces. The guidance would also include th e fuel prices to be used to calculate fuel cost savings for the particular vehi cle, based on its applicable fuel type. Finally, we propose to round the fuel cost savings values used on the label to the nearest one hundred dollars to avoid implying more precision than is warranted, as well as for ease of recall.

As previously stated, vehicles with a highe r fuel economy than the median vehicle would be designated as saving the consumer a certain nu mber of dollars over a five year period. For those vehicles with fuel economy lower than the median vehicle, the labe l would state that the consumer would spend a certain number of dollars more over a five year period. Vehicles that are within fifty dollars of the reference vehicl e fuel cost could be designated as saving zero dollars. Alternatively, text could indicate that this vehicle is comp arable to the average vehicle. Although the agencies recognize that “median” is a more accurate term than “average,” we propose the use of the term ‘average” as being more readily understandable.

Other methods considered include savings compared to the average vehicle one grade lower, and fuel cost savings compared to vehicl es 10 mpg lower. These approaches had certain positive aspects, particularly in that they demons trated the value of incremental improvements in vehicle choice. In the main, however, they prov ided values that seemed to be difficult to interpret and could perhaps cause perverse effect s. For example, a vehicle at the high end of their grade or rating would have a higher savings value than a vehicle at the low end of their grade or rating. This might be valuable for thos e who are considering vehicles within the same grade. However, for those shoppers who glanced at the number quickly, they might erroneously conclude that, for instance, a vehi cle at the low end of the B- grad e would save less on fuel costs than a vehicle at the high end of the D+ gr ade. The agencies seek comment on this and alternative approaches, as opposed to the proposed approach of disp laying a vehicle’s fuel cost savings relative to the medi an vehicle in the fleet.

11. Range of Fuel Economy of Comparable Vehicles

EPCA requires that the label contain “the range of fuel economy of comparable automobiles of all manufacturers,” a requirement that the label addressed somewhat awkwardly for many years. 97 As a result of EPA’s 2006 labeling ru le, the labels now use a graphical

97 49 U.S.C. 32908(b)(1)(C).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 48 of 315 element to show the performance of the labeled ve hicle relative to the best and worst within that vehicle class. 98 In the 2010 focus groups, it became cl ear that this information, though more prominently displayed on today’s fuel economy labe l than in previous ite rations of the label, continued to be under-utili zed by consumers as a tool to assi st them in making vehicle purchase decisions.

EPA is now proposing two possible ways of me eting this statutory requirement. Given the likelihood of more information on the label, a graphic as used on the current label that repeats the combined fuel economy number may overly complicate the new label. Thus one option being proposed is simply a text statement that would read “Combined fuel economy for [insert vehicle class] ranges from XX to XX.” This a pproach is used on Labels 1 and 3. The other option EPA is proposing is essentially an updated version of the current graphical representation, which combines the fuel economy rating across all vehicles with the within-class information into one graphical element, as shown in Section III as part of Label 2.

The agencies believe that one of these appro aches could be used to satisfy the statutory requirements in 49 U.S.C. 32908(b)(1)(C) (“th e range of fuel economy of comparable automobiles”). As an alternative, EPA seeks comment on whether the requirement to indicate fuel economy of comparable vehicles is met by the overall fuel economy rating required by 49 U.S.C. 32908(g)(1)(A)(ii ) (“a rating system that would make it easy to compare the fuel economy . . . of automobiles”), given that cons umers tend to consider vehicles from several classes during their purchase process.

12. Other Label Text

EPA is proposing some minor changes and an addition to the text on the label not previously discussed, and seeks commen t on each of these text changes.

First, each of the proposed labels has inform ation that indicates the fuel on which the vehicle operates. The agencies believe it wi ll become increasingly important, as different technologies emerge, to display cl early the kind of vehicle a consum er is viewing. For duel fuel vehicles (e.g., current gasoline/ethanol vehicles ), EPA is required by statute to identify the vehicle as a dual fuel vehicle and to identi fy the fuels that the vehicle operates on. 99 In the case of current flexible-fuel vehicles , for example, this text would read “Dual Fuel: Gasoline-Ethanol (E85),” and for plug-in hybrid ve hicles arriving soon on the market this text would read “Dual Fuel: Gasoline-Electricity.” In addition, we are pr oposing the use of various icons on the label to distinguish between different tec hnologies and between different operating modes. These icons include stylized electric plugs, fuel pumps, and fuel dispensing nozzles.

Second, because of the expanded information on the label and DOT requirements under EISA, EPA is proposing to change the label head ing from the current text (“EPA Fuel Economy Estimates”) to “EPA/DOT Fuel Economy & E nvironmental Comparisons.” We also propose

98 40 CFR 600.307-08. A discussion of the comparable class categories and a proposed change to those categories can be found in section VI.B.
99 49 U.S.C. 32908(b)(3).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 49 of 315 adding the DOT logo to the label, to provide ap propriate recognition of DOT’s role mandated by EISA.

Third, EPA is proposing to change the Fuel Economy Guide statement found on the label to reflect the expanding features that comprise www.fueleconomy.gov , with the hope that this website will become the first Internet stop for a vehicle’s fuel economy and environmental information. The proposed text would read: “Visit www.fueleconomy.gov to calculate estimates personalized for your driving, and to do wnload the Fuel economy Guide (also available at dealers).”

EPCA requires EPA and the Department of Energy (DOE) to prepare and distribute to dealers a fuel economy booklet, commonly know n as the annual “Fuel Economy Guide,” containing information that is “s imple and readily understandable.” 100 EPCA requires that the guide include fuel economy and estimated annual fuel costs of operating automobiles manufactured in each model year, as well as some additional information for dual fueled automobiles (such as the fuel economy and drivi ng range on both fuels). Further, EPCA requires that a statement appear on the fuel economy labe l that this booklet is available from dealers. 101 Starting in the 2008 model year, the statement on th e label was broadened to include a reference
to www.fueleconomy.gov as another source for the Fuel Econ omy Guide; this website is based on the EPA fuel economy information and jointly run by EPA and DOE. Thus the current text now reads: “See the FREE Fuel Economy Guide at dealers or www.fueleconomy.gov .”

Both the U.S. Department of Energy’s O ffice of Energy Efficiency and Renewable Energy and the EPA currently maintain www.fueleconomy.gov . The site helps fulfill DOE and EPA’s responsibility under EPCA of 1992 to prov ide accurate mpg information to consumers. The site provides fuel economy estimates, energy and environmental impact ratings, fuel-saving tips, as well as a downloadable ve rsion of the fuel economy guide and other useful information. Since its inception in 1999 this website has been used by millions of consumers, and the latest data from 2008 indicates that more that 30 millio n user sessions occurred in that year.

Because of the extensive amount of inform ation and user features available on the website beyond simply providing electronic access to the Fuel Economy Guide, the agencies wish to direct consumers to this website when they are researching their vehicle purchases. For example, the website allows a user to persona lize their fuel economy information by inputting their specific driving habits a nd fuel prices. This ability wi ll be even more important for understanding the impacts of driving distance and battery charging habits on the fuel consumption of vehicles like plug-in hybrid elect ric vehicles, and EPA expects to work with DOE to develop a web-based system to allow us ers to customize the fuel economy estimates for these advanced technology vehicl es. Further, information that some consumers may want but that is not available on the label is likely to be available on the website. For example, in the 2010 focus groups some participants expressed an in terest in knowing the cost to fill the tank, or the volume of the fuel tank, or how many miles c ould be driven on a tank. The website provides all this information, and information such as th e miles per tank can be pe rsonalized to reflect a

100 49 U.S.C. 32908(c)(1)(A).
101 49 U.S.C. 32908(b)(1)(D).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 50 of 315 person’s relative amount of city and highway driving. Finally, th e website also has developed a version tailored to mobile devices.

During the expert panel, EPA provided the pa nelists with a copy of the current Fuel Economy Guide. The panelists all expressed co ncerns that the public probably didn’t know it was available, didn’t access it at the dealer showrooms if they did know it was available, and would not respond well to it in its current format. They recommended a simple one-sheet “guide” that dealers would distribute in the form of a checklist, that w ould allow EPA to deliver the top ten points on fuel economy that could not (and should not) be included on the label. It also would ensure that even if individuals did not utilize the webs ite, they would receive this information. It was also suggested that if possible, dist ribution of this document be mandatory.

EPA requests comments on the usefulness of th e Fuel Economy Guide in its current form and also requests comments on whether EPA and DOE should develop a different approach in the future to the Fuel Economy Guide -- includ ing the idea of transforming the guide into a consumer friendly “checklist” guide. While EPA rec ognizes that it does not have the authority to mandate distribution of this guide by dealers we also request comments on how we could better encourage and work with dealers to more prom inently display and distribute the fuel economy guide in the future.

The expert panel also strongly recommended that the new fuel economy label prominently display an easy to remember URL. Panelists suggested that not only should such a URL be easy to remember, it should also provide a consistent platform for educational messages that would be highly visible for consumers and serve as a portal for web users to engage each other on fuel economy issues, including exchanging helpful tips and tools. Panelists indicated that this type of URL and message platform is of critical importance in today’s marketplace and that EPA should make better use of the label to e ngage the public in this manner. Finally, the panelists recommended this new URL not be a '.gov' website, whic h they suggested is generally perceived as static and uninviti ng by consumers that are increasi ngly reliant on highly interactive social media networks and tools. Label 1 series found in Section III currently displays how this URL concept might be incorporated in Label 1. We note that President Obama has an initiative on transparency and open government, 102 and as part of this initiat ive, the Executive Branch has already made some significant improvements to its websites.

The agencies request comment on the new URL concept displayed on Label 1, along with the underlying approach recommended by the expert panel: that the agenci es create and display a prominent URL on the label that will provide both a visible consumer message and an easy to remember web portal or gateway to a more intera ctive consumer website. As envisioned, this website would introduce the new label approach, layi ng out what is new and unique to this label. It would explain what the agencies are trying to accomplish with the new design, and detail the concept of the grading system and underlying scori ng method. It would incl ude applications that consumers can use to personalize their vehicle buying decisions, based on their own driving

102 See Presidential Memorandum on Tran sparency and Open Government, available at http://www.whitehouse.gov/the_press_office/ Transparency_and_Open_Government/(last accessed July 20, 2010); see also Open Government Directive from OMB, available at http://www.whitehouse.gov/omb/assets/memoranda_2010/m10-06.pdf (last accessed July 20, 2010).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 51 of 315 habits and needs. It would also provide informati on that is not available on the label, such as the upstream emissions associated with each vehicle choice. It would also link to the detailed vehicle information and consumer discussion pages on fueleconomy.gov, capitalizing on the existing government website and further maximi zing its consumer friendliness and usability.

Finally, for conventional vehicles, EPA is not proposing any changes to the statement that currently reads “Your actual mileage will vary depending on how you drive and maintain your vehicle.” However, because some advanced technology vehicles are especially susceptible to certain conditions, such as co ld weather, EPA is considerin g the addition of some specific qualifications to this statement for some ve hicle technologies, and seeks comment on what qualifications might be most helpful.

13. Gas Guzzler Tax Information

EPCA requires that “Gas Guzzler” tax information be included on the fuel economy label. 103 These taxes are required und er the Internal Revenue Code 26 U.S.C. 4064(c)(1). This part of the Internal Revenue Code contains the provisions governing th e administration of the Gas Guzzler Tax, and specifically contains the table of applicable taxes and defines which vehicles are subject to the taxes. The IRS code specifies that the fuel economy to be used to assess the amount of tax will be the combined city and highway fuel economy as determined by using the procedures in place in 1975, or procedur es that give comparable results (similar to EPCA’s requirements for determining CAFE for passenger automobiles). These provisions have been codified in 40 CFR 600.513-08. This proposed rule would not impact these provisions.

The current labeling requirements for the Ga s Guzzler Tax require that an affected vehicle have the following statement on the labe l (the regulations provi de different ways of displaying this depending on the label; for example, an alternative fuel vehicle label has some additional information that limits space, thus th e template for labeling such a vehicle accounts for this). In the limited situations in whic h this labeling requirement applies, EPA expects to provide label templates including this information that are consistent with the label design that is ultimately selected. For example, for Label 1 pres ented in Section III, one potential option is to place the gas guzzler information in the positi on for fuel cost savings. EPA seeks comment on this approach.

B. Advanced Technology Vehicle Labels

1. Introduction

In the past, EPA has not devoted much effort to fuel economy label issues for advanced technology vehicles. There is a simple reason for this--if EPA defines a conventional vehicle to be that which derives all of its propulsive energy from a petroleu m fuel (or a liquid fuel blend dominated by petroleum) stored on-board the vehicle, then conventional vehicles have represented well over 99% of all vehicles sold si nce the advent of fuel economy labels in the 1970s. EPA made the judgment that the very small number of consumers who might have considered the purchase of an electric or natural gas or othe r type of advanced technology

103 49 U.S.C. 32908(b)(1)(E).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 52 of 315 vehicle over the last 35 years di d not justify a major investment of government resources to address the more complex issues associated with advanced technology labels. Rather, EPA addressed the occasional need for an advanced te chnology vehicle label on a case-by-case basis.

But, this situation is changi ng and as the market evolves, this approach is no longer sufficient. For the first time since labels have been in use (in fact for the first time since the early days of the automotive industry), it appears increasingly likely that the future automotive marketplace will offer a much more diverse set of technological choices to consumers. EPA and NHTSA believe that now is the time to begin to design labels that are more appropriate for advanced technology vehicles that we expect to be commercialized in the next few years. For purposes of this rulemaking, the agencies in tend to focus on two advanced technologies:

• Electric vehicles (EVs) are vehicles that ar e powered exclusively by batteries (charged with electricity from the grid ) and electric motors, and which do not have a conventional internal combustion engine or any other power train. Several automakers sold EVs in the early and mid-1990s 104 , but the only EV on the U.S. market today is the luxury Tesla Roadster with annual sales of a few hundred vehicles. The first more mainstream-priced EV offered for sale in the U.S. is the Nissa n Leaf, for which orders are now being taken and first deliveries are projected for late this year in selected markets. 105 In addition, Ford has announced plans for a model year 2012 Ford Focus EV. 106

• Plug-in hybrid electric vehicles (PHEVs) can be powered in as many as three different ways: 1) like an EV, exclusively by batteries and electric motors, 2) like a conventional hybrid vehicle, when the vehicle gets all of its propulsive ener gy from a conventional internal combustion engine/transmission (u sually fueled with gasoline), though the battery still assists with rege nerative braking and engine buffering, and 3) a combination of both conventional hybrid and electric operati on. PHEVs entail a family of different engineering approaches, and will continue to evolve as the technology matures. One distinct type of PHEV is called an extended range electr ic vehicle (EREV). An EREV PHEV has a very distinct operational profile: as long as the battery is above its minimal charge level, the vehicle is operated exclusively on the elect ric powertrain, and then when the battery is at its minimal charge, it operate s like a conventional hyb rid getting all of its power from gasoline or other li quid fuel. In a way, an EREV PHEV can be considered to be a combination of an EV and a conventiona l hybrid, with an emphasis on operating like an EV as much as possible. There have been no commercial EREV PHEVs sold in the U.S. to date but the first commercial offering is likely to be the Chevrolet Volt, which is scheduled to be intr oduced in late 2010. 107 A second type of PHEV is called a “blended”

104 Ehsani,M., Gao,Y., and Einadi, A. (2010). Modern Electric, Hybrid Electric and Fuel Cell Vehicles: F Fundamentals, Theory, and Design. Second Edition. Pp 12-14.
105 “Nissan’s Electric Leaf Set for Pr oduction,” Detroit News. May 26, 2010, http://detnews.com/article /20100526/AUTO01/5260357, (last accessed May 26, 2010).
106 Abuelsamid, Sam, “Detroit 2010: 2012 Focus Electric could be both sedan and hatch”, green.autoblog.com, Jan 11, 2010, available at: http://green.autoblog.com/2010/01/11/detroit- 2010-2012-ford-focus-electric-could-be-bothsedan-and-h. (last accessed July 12, 2010). 107 “Chevy Volt’s Rollout to Include New York City,”New York Times, July 1, 2010, http://wheels.blogs.nytimes.com/ 2010/07/01/chevy-volts-initial-roll out-to-include-new -york-city/. (last accessed July 12, 2010).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 53 of 315 PHEV. As long as the battery is charged, it will operate on a combination of grid electricity and gasoline (wh ile a blended PHEV might nothave any “guaranteed” allelectric range, it is possible that some ble nded PHEV designs may have some all-electric range under certain driving conditions), then wh en the battery is at its minimal charge, the vehicle gets all of its propulsive energy from the gasoline fuel and engine (though the battery still assists with rege nerative braking and engine buffering, as with a conventional hybrid). In this respect, a blended PHEV can be viewed as a combination of a “gridenhanced” hybrid and a conventional hybri d, but without the emphasis on using only electricity for shorter trips as with the EREV PHEV. To the degree that a blended PHEV does have some practical all- electric range, the boundary between a blended PHEV and an EREV PHEV begins to blur. There have been no original equipment blended PHEV offerings in the U.S. to date, but many auto makers are developing prototypes and some aftermarket conversions are available. The first commercial U.S. blended PHEV may be a Toyota Prius, likely offered as a 2012 model. 108

Other advanced technology vehicles will also likely be on the market in the near future-- for example, Honda continues to sell a dedicated compressed natura l gas Civic in selected states and several manufacturers plan to sell fuel cell vehicles in the future. 109 In any case, the issues associated with and the decisions that we ma ke about labels for EVs and PHEVs will go a long way toward preparing us to address labels from other advanced technologies in the future. EPA and NHTSA seek comments on whether there are ot her advanced technolo gies that have the potential to achieve mainstream interest in th e near future and for which the agencies should develop labels in a future rulemaking.

PHEVs and EVs represent a fundamental de parture from the powertrain and fueling infrastructure that has exclusively dominated the U.S. market for the last century—a single powertrain (an internal combusti on engine with a mechanical tr ansmission) and a single fuel (gasoline) available at public se rvice stations. While PHEVs reta in this option, they also offer the consumer the option to charge the on-board ba ttery from the electric grid at home and to propel the vehicle exclusively or partially by the battery and electr ic motor. An EV must be operated this way. These fundamentally different powertrains and refueling approaches raise many challenging issues from a consumer inform ation standpoint that may affect how the agencies decide to require th ese vehicles to be labeled.

.

• These technologies are still evolving. EPA ha s been able to test only a small number of these advanced technology vehicl es, and it is unclear whether the vehicles that we have tested are a good reflection of the technologies that will ul timately be offered in the market.

108 “Detroit 2010: Toyota’s 2011 plug-in Prius release date is “aggressive” target,” Green Autoblog, January 14, 2010, http://green.autoblog.com/2010/01/14/d etroit-2010-toyotas-2011-plug-i n-prius-release-date-is-aggre

. (last accessed July 12, 2010). 109 “GM Plans Fuel-Cell Vehicle Pilot Program in Hawaii,: Environmental Leader, Energy & Environmental News for Business, May 12, 2010, http://www.environmentalleader.com/2010/05/12/gm-plans-fuel-cell-vehicle-pilotprogram-in-hawaii/ . (last accessed July 12, 2010).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 54 of 315 • Gasoline and electricity are very different auto motive fuels. Gasoline is a liquid fuel with a high energy density that is stored on-boa rd the vehicle in a relatively simple and lightweight tank that can be filled in a fe w minutes, while electricity is generated by chemical reactions inside a much lower en ergy density (and therefore heavier) battery pack and which can take many hours to rechar ge. Gasoline is produced very efficiently from crude oil, but is a less efficient vehicl e fuel, while electricity is less efficient to produce from a wide variety of resources (suc h as coal, nuclear, na tural gas, hydropower, and wind), but is a more efficient vehicle fu el. Approximately 80% of the “life-cycle” greenhouse gas emissions from a gasoline vehi cle are emitted directly from the vehicle tailpipe, while all of the life-cycle greenhouse gas emissions associated with an electric vehicle are “upstream” of the vehicle. As ju st one simple example, miles per gallon, the core metric that has been used on gasoline labe ls for the last 35 years, is a much more complicated metric for a fuel like electr icity which is not measured in gallons.

• Some advanced technologies can operate on more than one fuel, either simultaneously (e.g., the use of gasoline and elec tricity in the charge deple ting mode of a blended PHEV) or at different times (e.g., an EREV PHEV uses electricity in charge depleting mode, then gasoline in hybrid mode). By itself, this s uggests that a consumer la bel for a vehicle that operates on two fuels might have to have appr oximately twice as much information as a label for a vehicle that operates on a single fuel.

• Consumer behavior can have a much larger impact on the operation of an advanced technology vehicle, relative to that of a conventional vehicl e. Whether th e owner of a PHEV charges the battery every night and how many miles per day they drive—neither of which affects average energy consumpti on for a conventional vehicle—can have a dramatic impact on energy and environmental performance. Again using the standard miles per gallon of gasoline metric as an example, one EREV PHEV design may vary from 35 or 40 mpg on the low end (when the batt ery is empty and the vehicle is in hybrid mode) to essentially “infinite” mpg-gasoline if the vehicle is operated only off the battery pack. This fuel economy variability is much greater than with conventional vehicles, where mpg values for most individual vehi cles are typically within 15-20% of the average value.

• Consumers have no practical experience with these new technologies,or in some cases might not even understand the basics of how the technologies work. While EPA has sponsored focus groups to gauge what cons umers want on advanced technology labels, there can be little question that consum ers are in a stronger position to provide meaningful input on conventional labels, with which they have decades of experience, than on advanced technology labels, where they may not now know now what they will want and need to know in the future to make informed purchase decisions.

All of these factors s uggest that there is th e likelihood of significant consumer confusion when multiple advanced technology vehicles begin to compete in the marketplace. We have no illusions that our advanced technology labels will completely resolve this consumer confusion, but we do hope they will help to reduce the conf usion. We are certain that advanced technologyFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 55 of 315 labels will be more complicated than conventiona l vehicle labels. Just as EPA has repeatedly refined the much simpler conventio nal vehicle labels over time, the agencies expect to do so with advanced technology vehicle labels as well. Accordingly, while EPA and NHTSA are coproposing two specific labels for EVs and PHEVs, the agencies also seek public comment on as many of the key issues as possible.

While this section will discuss EVs and ER EV PHEVs as well, in many cases blended PHEVs will be the illust rative technology because they often raise the most challenging issues due to the fact that two different fuels can be used simultaneously.

2. EPA Statutory Requirements

a. Electric Vehicles (EVs)

Electricity is an alternative fuel under the st atute and vehicles fuel ed only by alternative fuel are “dedicated automobiles.” 110

b. Plug-In Hybrid Electr ic Vehicles (PHEVs)

Some PHEVs are dual fueled auto mobiles under 49 U.S.C. 32901(a)(9). 111 They are capable of operating on a mixture of electricity and gasoline, provide supe rior energy efficiency when operating on electricity compared to operati ng on gasoline, and provid e superior efficiency when operating on a mixture of electricity and gasoline as when operating on gasoline. 112 These vehicles also meet the requirement that a dual fu eled automobile must meet the minimum driving range under 49 U.S.C. 32901(c). 113 DOT has set the minimum driving range for electric vehicles at 7.5 miles on its nominal storage cap acity of electricity when operated on the EPA urban test cycle and 10.2 miles on its nominal st orage capacity of electricity when operated on the EPA highway test cycle. 114

The statute contains particular requirements for dual fueled automobile labels. Section 32908(b)(3) requires that each label (A) indicate the fuel economy of the automobile when operated on gasoline or diesel fuel, (B) clearly identify the automobile as a dual fueled automobile, (C) clearly identify the fuels on wh ich the automobile may be operated; and (D) contain a statement that additi onal information require d by the statute is in the fuel economy booklet. The additional information required in the booklet for dual fuel automobiles is described in 32908(c)(2) and states that the labe l will include the ener gy efficiency and cost operation of the automobile when operated on gasoline as compared to when operated on alternative fuel and the drivi ng range when operated on gasoline as compared to when operated on alternative fuel. It should also include information on the miles per gallon achieved when operated on alternative fuel and a statement e xplaining how these estimates may change when the automobile is operated on mixtures of alternative fuel and gasoline.

110 49 U.S.C. 32901(a)(1) and (a)(8).
111

112 49 U.S.C. 32901(a)(9)(A), (B), (C). EPA is extending the application of the subclause (C).
113 49 U.S.C. 32901(a)(9)(D).
114 49 CFR 538.5(b).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 56 of 315 For simplicity and consistency, the agencies plan for all PHEV fuel economy labels to contain the information required for dual fueled vehicles under the statute, even though only some PHEVs are dual fuel automobiles. We seek comment on this approach.

The fuel economy required on the label means the average number of miles traveled by an automobile for each gallon of gasoline (o r equivalent amount of other fuel) used. 115 Therefore, in order to meet the statutory re quirement that fuel economy be displayed on the label, the electricity use for EVs and PHEVs on the fuel economy label is converted to gallons of gasoline equivalent.

EPA recognizes that the statutory requiremen ts in the Energy Policy and Conservation Act of 1975 were adopted long before advanced technologies like EREV PHEVs and blended PHEVs were even conceived. While EPA must meet the statutory requirements, the agencies are concerned that requirin g electricity to be conveyed in m pg equivalent values might actually make an advanced technology vehicle label less us eful to consumers. Th e agencies seek public comment on this question as explained in more detail below.

3. Principles Underlying the Co-Proposed Advanced Technology Vehicle L abels

The agencies have found it helpful to identify a few basic principles to guide our thinking about and development of adva nced technology vehicle labels.

• The advanced technology vehicle labels shoul d provide objective information that helps consumers make good decisions for both themse lves and the environment. The market research undertaken for this rulemaking found that the current fuel economy label is a trusted source of informati on regarding the fuel econom y of today’s conventional gasoline vehicles and the agencies seek to build on this foundation by ensuring that consumers receive objective, useful and essential information that helps inform their advanced technology vehicle purchasing decisions. 116 The agencies recognize that many of the most important drivers for the public and private interest in advanced vehicle technologies are in fact related to en ergy and environmental considerations.

• The advanced technology vehicle labels should aim for the simplest way to provide fairly complex information. As discussed above in the introduction to th is section and with specific examples later in this section, the agencies are aware that advanced technology vehicle labels will inherently be more comp lex than conventional vehicle labels. We strive to strike a balance between providi ng sufficient information to be helpful and credible (too simple runs the risk of mi sinformation with such complex technologies), without trying to “do everything” on the label (which could be a source of confusion for many consumers). We believe that automake rs and respected third-party organizations (and possibly the federal government via fueleconomy.gov or other websites) will develop sophisticated on-line (and possibly on-vehicle) ca lculators that will allow consumers to customize energy, environmental, and cost information for their unique

115 49 U.S.C. 32901(a)(11).
116 EPA Fuel Economy Label Pre-Focus Groups Online Survey Report, Prep ared by PRR, In c, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 57 of 315 driving and battery re-charging habits. We believe that la bels should be aimed at the consumer who wants a quick overview of ener gy, environmental, and cost performance, and that those consumers who want detailed, customized information will look to other

sources.

• The advanced technology vehicle labels must be as equitable as possible across different technologies, both advanced and conventional. For example, the agencies want to avoid picking a label design or label metric th at inherently favors a certain advanced technology beyond the energy and environmental merits of the individual vehicles. There could be considerable consumer c onfusion when multiple advanced technology vehicles reach the market, each with their ow n marketing strategy, a nd labels are one way to minimize consumer confusion. We speci fically solicit comments from automakers on whether we have achieved this goal of equity with our proposed label designs.

• Finally, while labels should provide one or more metric s to compare across vehicle technologies, both advanced and conventional, the advanced technol ogy vehicle labels do not have to have the same precise design as conventional vehicle labe ls. Given that many of the label content issues a ssociated with advanced vehicle technologies are much more complex than for conventional vehicles, it woul d probably be impossible for the labels to look the same. On the other hand, we do wa nt the “look and feel ” of the advanced technology and conventional vehicle labels to be as consistent as possible.

EPA and NHTSA seek public comment on the appropriateness of each of these principles, and whether there are additiona l principles that we should consider.

4. Key Advanced Technology Vehicle Label Issues

Most of the content on advanced technology vehicle labels will be similar to that on conventional vehicle labels. This section addres ses those issues that are unique to advanced technology vehicle labels.

a. Life-Cycle Fuel Production- Related GHG and Energy Issues

This rulemaking addresses EPA’s and NHTSA’s authority and res ponsibilities under the Energy Policy and Conservation Act (EPCA), as amended by the Energy Independence and Security Act (EISA) of 2007. Among other th ings, EPCA requires the fuel economy of the automobile to be on the label. Vehicle fuel ec onomy has been the corner stone of the label since its inception, and EPA has not in cluded fuel production-related, or “upstream,” impacts on fuel economy labels in the past. While vehicle fuel economy and vehicle tailpipe GHG emissions are directly measured by EPA and automakers vi a prototype vehicle te sting, upstream impacts associated with an individual vehicle’s fuel c onsumption are not measured in vehicle testing. Likewise, EISA requires that the label cont ain information reflecting the automobile’s performance with respect to fuel economy and greenhouse gas and other emissions over the useful life of the automobile. The agencies be lieve that these various requirements are met by providing information on the perf ormance of the vehicle itself on the label and not including upstream emissions. In addition, using vehicle ta ilpipe GHG emission levels is consistent withFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 58 of 315 the tailpipe zero gram pe r mile GHG emissions compliance level that EPA adopted for EVs, FCVs, and the electric portion of PHEV opera tion in the light-duty vehicle GHG rule for MYs 2012-2016, for the vehicle production that remain s below an individu al manufacturer’s cumulative vehicle production cap. However, EPA notes that some consumers may be interested in estimates of the upstream GHG and energy imp acts associated with vehicles that they are considering purchasing. We plan to provide in formation on websites that will inform consumers of the projected upstream GHG and energy impact s of vehicle operation, based on both national average values and, where appropriate because of regional variability, regional values as well.

b. Energy Consumption Metrics

Energy consumption metrics are another issu e which becomes more complicated with advanced technology vehicles. For conventional ga soline vehicles, the mpg metric has been the foundation of the consumer label for 35 years. It is not a perfect metric, and some have expressed concerns about its “non-linearity,” e.g., the absolute fuel consumption savings associated with improving one mile per gallon fr om 10-11 mpg is over ten times greater than the fuel consumption savings associated with impr oving from 35-36 mpg as discussed above. But, in some respects, mpg has been a good metric for a consumer information program: lay people had used the mpg metric prior to its use on th e label, the concept was simple and understood by almost all consumers, the practical range of 10-50 mpg was accessible to lay people and facilitated simple calculations that most consum ers could perform, etc. The results from recent EPA focus groups conducted by the agencies we re unequivocal—the mpg values were, by far, the most trusted and useful values on the label. 117

Unfortunately, while the miles per gallon metric has been very useful when 99+% of all vehicles operated on petroleum fuels, its usefulness as a metric is less clear for a future vehicle fuel such as electricity, which is not measur ed in gallons, but rather in kilowatt-hours. Therefore, for an electric vehicle, or for an EREV PHEV when opera ted exclusively on grid electricity, there are three broad choices for a consumption metric, inde pendent of statutory considerations, to characteri ze the amount of electricity a nd all have advantages and disadvantages:

• Kilowatt-hours. The rationale for kilowatt-hour s is that this is the metric by which electricity is “counted” and sold. In their monthly utility bills, consumers are charged a certain rate (or price) pe r kilowatt-hour, and this rate is multiplied by the number of kilowatt-hours that the consumer uses, to ge nerate the overall monthl y electricity bill. This is analogous to what happens at a ga soline service station, where a consumer pays a certain rate (or price) per gallon of gasoline, and this rate is multiplied by the number of gallons of gasoline that the consumer buys, to ge nerate the overall gasoline bill. The primary argument against usi ng kilowatt-hours is that the focus groups conducted by the agencies clearly indicates that few consumers understand what a kilowatt-hour is, and most of the consum ers who do not know what a kilowatt-hour is say that they do not want to learn. 118

117 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
118 EPA Fuel Economy Label Phase 2 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 59 of 315 • Gallons of gasoline-equivalent. From an engineering perspective, energy can be measured, and different forms of energy can be compared through the use of energy unit conversion factors. For example, a ga llon of gasoline has the energy equivalent of 33.7 kilowatt-hours, and any value for k ilowatt-hours can be converted to an energy-equivalent value of gallons of gasoline. 119 For example, a vehicle that used 33.7 kilowatt-hours would have used an amount of energy equivalent to 1 gallon of gasoline, while a vehicle that used twice as much electricity would have used an amount of energy equivalent to 2 gallons of gasoline. The rationale for using gallons of gasoline-equivalent is that consumer s understand the concept of “gallons” much more than they understand any other energy metric. In the focus groups conducted for this rulemaking, the agencies found that participants believed they understood the equivalency approach and felt comfortable with this metric since it closely aligns with the miles per gallon metric that they have always relied upon. 120 The primary argument against using gallons of gasoline-e quivalent is that the concept requires the conversion of one form of energy to anot her, and while this reflects a technical measurement of energy equivalency, it may or may not be useful to the consumer. For example, gasoline and electricity are very different fuels in many ways: how they are produced, how consumers buy them and refuel, whether consumer fuel expenditures stay in the local or regi onal economy or are exported, etc.

• A generic energy unit not directly connected to either gasoline or electricity, such as British Thermal Units (BTUs) or joules. The argument here would be to pick an energy metric that is “fuel neutral.” The primary arguments against this are both that few consumers understand such a metric, and that no motor fuels are counted or sold in such units. While the agen cies recognize this as another conceptual alternative, we have rejected this approach.

As discussed previously, EPCA requires that electricity use for EVs and PHEVs on the fuel economy label is converted to gallons of ga soline-equivalent. But th e statute also provides discretion to EPA on the relative prominence of a gallons of gasoline-equivalent metric and a kilowatt-hours metric.

For EV labels, the agencies propose to show el ectricity consumption in both metrics: as miles per gallon of gasoline-equivalent (mpg-e) and as kilowatt-hours per 100 miles. The agencies recognize that higher mpg-e values are better, while lower kw-h r/100 miles values are better. The agencies seek comment on whether this is helpful or confusing to consumers.

The most complicated advanced technology vehicle in this rega rd is a blended PHEV that is operating simultaneously on gasoline and grid electricity. There are two options for energy metrics for blended PHEVs, which are based on the general concepts introduced above.

• Retain separate energy metrics for gasoline and electricity. The gasoline metric would continue to be miles per gallon of gaso line (supplemented by a gallons/100 miles consumption value as well), while the elec tricity metric would be kilowatt-hours of

119 65 FR 36990.
120 EPA Fuel Economy Label Phase 2 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 60 of 315 electricity (either miles per kilowatt-hour or kilowatt-hours per 100 miles). The advantages of this approach are 1) it includes the values that EPA measures, 2) the metrics reflect how these forms of energy ar e counted and how consumers pay for them, 3) the separate values do not require judgments about whether consumers “value” gasoline and electricity equally or not, and 4) it would avoid po ssible confusion over what a combined miles per gallon of gasolin e-equivalent value means (i.e., some, maybe many, consumers would probably assume that a miles per gallon of gasoline-equivalent value was equal to a miles per gallon of gaso line value, which would be inaccurate). The disadvantages of such an approach are 1) few consumers understand the metric of kilowatt-hours, 2) dual energy metrics make it extremely difficult to compare energy efficiency across vehicles, and 3) those c onsumers who focus only on miles per gallon of gasoline and ignore kilowatt-hours of electrici ty, will believe that a blended PHEV is more energy efficient than it actually is.

• Combine to a single energy metric of miles per gallon of gasoline-equivalent. This would require the use of the conversion f actor of 33.7 kilowatt-hours per gallon of gasoline-equivalent value cited above. The adva ntages of this approach are 1) it yields a single value that simplifies the label and fac ilitates vehicle comparis ons, 2) it avoids the kilowatt-hour metric that consumers do not like or understand, and 3) some consumers (though not all) said they liked the concept of miles per gallon of gasoline-equivalent. The disadvantages of such an approach are 1) it requires the simplifying assumption that all forms of energy (in this case, gasoline a nd electricity) are equally valued, 2) it does not allow the consumer to see the individual energy consumption values for gasoline and electricity, and 3) it will yield labels with both miles per gallon of gasoline and miles per gallon of gasoline-equivalent, which coul d be confusing to some consumers.

The agencies are proposing to use the miles pe r gallon of gasoline-equivalent metric only for PHEVs, but seek public comment on the relative merits of doing so versus using the separate energy metrics. The agencies believe that both approaches have advantages and disadvantages. In formulating comments on this topic, commen ters could also consider three additional questions. One, do consumers care equally about ga soline and electricity, i. e., are they just two different ways of fueling their vehicles, with a Bt u of gasoline equivalent to a Btu of electricity, or do some or most consumers care more about one or the other form of energy? Two, how should the agencies interpret the focus group input in which most pa rticipants indicated that they did not understand kilowatt-hours on their electric bills and did not want to have this metric included on advanced vehicle labels ? Three, should we view this as an opportunity to educate consumers about the importance of kilowatt-hour s as a fundamental measurement of electricity consumption?

c. Driving Range Information (i ncluding 5-Cycle Adjustment)

EPA does not include range information on conventional fuel economy labels. Petroleum fuels have high energy densities and are stored on-board the vehicle in relatively cheap and lightweight fuel tanks. The combin ation of high driving range valu es (gasoline vehicles typically have ranges of 300-500 miles) and the fact that ra nge can be increased by sim ply increasing the size of the fuel tank, means that range for petroleu m-fueled vehicles has not been a top consumerFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 61 of 315 priority. In recognition of th e fact that non-petroleum fuel s generally have lower energy densities resulting in reduced driving ranges than petroleum fuels, the Federal Trade Commission (FTC) requires a “hang tag” that list s the “manufacturer’s estimated cruising range” for alternative-fueled vehicles. 121

The primary issue addressed in this sec tion is whether range should be included on advanced technology vehicle labels . For an EV, the primary range parameter of interest would be the miles that can be traveled between ba ttery charges. For an EREV PHEV, the most important range parameter would be the miles that can be traveled in all-electric mode. For a blended PHEV, the primary range parameter w ould be the number of miles over which the battery is providing assistance in the form of grid electricity, but it is also possible that there could be some guaranteed or like ly all-electric range as well.

The primary arguments for including range in clude 1) focus groups strongly supported including the range for EVs and PHEVs 122 , 2) range is a critical factor for what the consumer gets for his or her investment in a more expens ive EV or PHEV, and is obviously a core utility attribute for an EV and a primary determin ant of the overall environmental and energy performance of a PHEV, and 3) EPA can easily measure range.

The arguments against including range include 1) it is not a direct measurement of energy or environmental performance (in fact, for an EV, other things being equal, a higher range means a larger battery pack, a heavier vehicle, and therefore higher energy consumption, relative to the same vehicle with a lower range and smaller batter y pack), 2) there will li kely be much greater variability in EV range than we have faced with gasoline fuel economy in the past, so there are greater challenges involved in defining a specifi c range estimate, and 3) adding range would add to an already busy label.

The agencies are proposing to include ra nge information on alternative technology vehicle labels and seek pub lic comment on this issue.

A related issue is how EPA will determine the appropriate adjustment factor to use in converting 2-cycle test values for range to 5-cycl e test values for vehicle labels. Under current EPA regulations established by the 2006 fuel eco nomy label rulemaking, automakers would have two choices: 1) submitting 5-cycle test data, an d 2) using the mpg-based (derived 5-cycle) equations. 123 Based on preliminary EPA analysis, it a ppears that using the mpg-based equations for EVs would yield an approximate 40% downward adjustment for EV range. 124 EPA notes that there were no EV or PHEV data in the data base used to generate the mpg-based equations, and that the downward adjustment appropriate fo r EVs (which have low direct vehicle energy consumption levels) is the result of extrapolating the results of the conven tional vehicle data that was used to generate the equations.

121 16 CFR part 309.
122 EPA Fuel Economy Label Phase 2 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
123 71 FR77887-77888, Dec 27, 2006.
124 Cite.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 62 of 315 EPA proposes a new set of options for automa kers to choose for purposes of identifying the appropriate 5-cycle range ad justment for EVs and the electr ic portion of PHEV operation. One, automakers could provide full 5-cycle te st data, which is one option under current EPA regulations. Two, automakers co uld provide vehicle-specific real world range data collected from in-use vehicles. Three, automakers co uld use the mpg-based eq uations discussed above, but with the downward adjustment capped at the percen t reduction represente d by the worst-case gasoline vehicle in the EPA database. The worst-case gasoline vehicle is the highest-mpg gasoline vehicle, which is currently the Toyota Pr ius. Based on the application of the mpg-based equations to the Prius’ mpg values, the Prius would get about a 30% dow nward adjustment from its 2-cycle data to its derived 5-cycle value, and this would therefore be th e level that automakers could use for EVs and the elec tric operation of PHEVs.

EPA seeks comment on this proposal for the downward 5-cycle adjustment for EVs and PHEVs.

d. Battery Charging Time Information

EPA does not include information on the mechanisms for or time associated with refueling vehicles on conventional vehicle fuel economy labels. Refueling with petroleum fuels is a fairly quick and ubiquitous process, and has not been a topic of consumer concern. Refueling, or charging, a battery pack will be di fferent in many ways. While gasoline vehicle refueling typically takes 5-10 mi nutes, charging a battery pack can take up to 12 hours or more, depending on the charging hardware. EPA focus gr oup participants expressed strong interest in including some type of information on charging time on labels for EVs and PHEVs. 125

The arguments for including battery chargi ng time information on EV and PHEV labels include 1) focus groups supported doing so, 2) it is a core consumer utility parameter (i.e., if the charging time is so long as to be onerous, consumer s will recharge less fre quently and this will have an effect on the vehicle’s energy and e nvironmental performance), and 3) EPA could develop a test procedure for gene rating standardized information.

An example of a simple approach for measur ing EV recharge time would be to use the method for recharging the battery recommended by the manufacturer and available to the consumer. Full battery recharge time could be defined as the tim e required to charge the vehicle battery to full capacity from the end of the electric vehicle range test or "empty." A fully charged battery would be defined as the same battery stat e of charge used to de termine electric vehicle range. EPA is also seeking comme nt on partial recharge time. Pa rtial recharge time could be measured and expressed as the time of rech arge required to trav el a given distance.

Arguments for excluding battery charging time on EV and PHEV labels include 1) there is only an indirect relationship betwee n charging time and energy and environmental performance, 2) EPA does not now have a test pr ocedure for generating st andardized data, 3) it will be fairly easy for consumers and third parties to verify automaker claims on this basic question, and 4) adding battery charging time will make the advanced technology vehicle labels more cluttered.

125 EPA Fuel Economy Label Phase 2 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 63 of 315 The agencies seek comments on whether we should include battery charging time information on labels for EVs and PHEVs.

e. Merged Vehicle Operating Mode Information for PHEVs

Conventional vehicles have a single “operating mode,” i.e., all the powertrain components contribute to propel the vehicle at all times. Some advan ced technology vehicles have more than one operating mode. For example, a blended PHEV could have up to three operating modes: an all-electric mode where the vehicle is propelled exclusively by grid electricity via the battery and el ectric motor, a sec ond mode where the vehi cle is propelled by a combination of both grid electricity and an internal combustion engine, and a third mode that uses only the internal combustion engine. For such vehicl es, the agencies propose to provide consumers with basic performance information about each of the PHEV’s individual operating modes. One advantage of this approach is that it will allow consumers to tailor the information from the individual operating modes to their own driving habits, and therefore develop “customized” information relevant to their own situ ations. One issue is wh ether the vehicle label should also provide information that combines the various operating modes into a single “merged” value reflecting an “average driver.” One group that is developing guidance for how individual operating mode data could be combin ed for an “average driver” is the Society of Automotive Engineers Hybrid Technical Standards Committee, 126 and the agencies will continue to monitor the work of this and other relevant committees.

The rationale for including a merged valu e is that 1) some consumers may find information on the individual operating modes to be “too much” and may be more likely to pay attention to a single set of perf ormance information, 2) few, if any, consumers will exclusively drive in a single operating mode, so some kind of combined information could be helpful, and 3) a single, merged value can fac ilitate comparisons across different vehicle technologies and models and 4). Customers of this new technology will not know how much they will operate the vehicle in each mode, so an average provi des more complete information to them.

The arguments against including merged valu es are 1) the vari ability between the performance values for different operating modes can be very large, and so any assumptions about an “average driver” will be accurate for so me consumers, but very inaccurate for many other consumers, and 2) including merged va lues, in addition to individual operating mode values, will add to an already busy label.

The agencies seek public comment on the question of whether labels for advanced technology vehicles with multiple operating mode s should also include merged values that combines the various vehicle operating modes, and if so, on the best methodology for doing so.

f. City/Highway versus Combined Values

126 SAE J2841.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 64 of 315 EPA’s conventional vehicle labe ls have long reported fuel economy values for both city and highway driving. For most conventional vehicles, highway fuel economy values are typically 40-50% higher th an city fuel economy values. The agencies believe that this is another issue that is worth reexamining with resp ect to advanced technology vehicle labels.

Arguments for including separate city and highway information on advanced technology vehicle labels include 1) focus group feedback and other research has consistently shown that consumers find it useful to have separate fuel economy values for both city and highway driving for conventional vehicles, 127 and 2) since driving habits can vary widely, separate city and highway performance information can be helpful to those consumers who want to “customize” label information to their own driving habits.

Arguments for not including separate city and highway information on advanced technology vehicle labels include 1) some advanced technologies, for example EVs, show less of a change in energy consumption values between city and highway driving than do conventional vehicles which was one of the primary reasons w hy EPA originally displayed separate city and highway mpg values on conventional fuel economy labels, and 2) not repor ting separate city and highway values can reduce some information by eith er a factor of two (if a combined value is shown instead of separate city and highway va lues) or three (if city, highway, and combined values were all shown), thus reducing the “num ber of numbers” on the label and possibly making the labels more readable and accessible for consumers. Focus group participants, when viewing whole labels for both conventional and adva nced technology vehicles , did not express a preference for displaying city/highway numbers for advanced technology vehicles, although they did express a clear preference for city/hi ghway values for conventional vehicles.

The agencies seek public comment on the followi ng questions related to separate city and highway information for advanced technology ve hicle labels. One, should EPA never report separate city and highway values, always report separate city and highw ay values, or retain discretion for doing so only when it is appropriate (i.e., when the differences between city and highway are significant enough to be meaningful )? Two, would it be acceptable for EPA to require the use of separate city and highway fu el economy values for conventional vehicles, but to not do so, in some or all cases, for advanced technology vehicles?

g. Methodology for Merged Values for PHEVs

One specific issue for PHEVs is the methodology for determining a single merged value that combines the various opera ting modes into a single overall value, given that PHEVs use both gasoline and grid electricity. The agenci es expect that consumers who purchase a PHEV will do so with the intention of utilizing the cap ability of both fuels (e.g., it seems reasonable to assume that most consumers who purchase a more expensive PHEV would then charge the PHEV as frequently as possible in order to achieve fuel savings by maximizing their use of electricity and minimizing their use of gasoline). It thus se ems appropriate to include the operation on both fuels in any merged values, usi ng a weighted average of the appropriate metric for each of the modes of operation. The agencies propose and seek comment on using a methodology developed by SAE and DOE based on u tility factors (UFs) - which predict the

127 EPA Fuel Economy Label Phase 1 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 65 of 315 fractions of total distance driven in each mode of operation (e lectricity and gas) - to assign weighting factors for gasoline and electricity use for PHEVs for the purposes of determining merged values for fuel economy and/or greenhouse gas ratings and for any other metrics for which a single, merged value is appropriate. The proposed UF methodology is described in detail in Section VI.B.

h. Advertising Restrictions

The federal lead on guidelines for the use of vehicle label information in automaker marketing campaigns rests with the Federal Trade Commission (FTC). The agencies believe that the unique issues, as well as in the likely in creased complexity and “number of numbers,” associated with advanced technology vehicle labe ls, warrant additional co nsideration of whether there needs to be new guidelines for the use of la bel information in private marketing campaigns. The agencies intend to raise this issue with th e FTC, and seek comments from the public that could help inform our input to the FTC.

C. Labels for Other Vehicle/Fuel Technologies

Labels for conventional gasoline and diesel ve hicles and for certain advanced technology vehicles are the prim ary focus of this proposed rule. Conventiona l gasoline and diesel vehicles are expected to make up a majority of the fleet well into the future, and improving on the communication of conventional vehicle fuel econo my and related information is a continued priority of EPA and NHTSA. Electric vehicles and plug-in hybrid electri c vehicles are entering the fleet in the near term, and there is the poten tial for a rapidly increasi ng market penetration of these vehicles in the future, ye t labeling these vehicles in an understandable and equitable way presents significant challenges. However, ther e are several other specif ic vehicle technologies for which EPA currently has labels, and EPA is also proposing new label templates for those as well.

1. Flexible Fuel Vehicles

Flexible fuel vehicles (FFVs) (also called flex -fuel, dual-fueled or bi-fueled vehicles) are vehicles that can operate either on gasoline or dies el fuel, on an alternative fuel such as ethanol or methanol, or on a mixture of conventional a nd alternative fuels. Produced since the 1980s, flexible fuel vehicles (FFVs) ar e the most numerous of the curre ntly available alternative fuel vehicles, with dozens of 2010 car and truck mode ls available from General Motors, Chrysler, Ford, Mazda, Mercedes, Nissan, and Toyota. Essen tially all FFVs today are E85 vehicles, which can run on a mixture of up to 85 percent ethanol and gasoline. These vehicles are considered “dual fueled vehicles” under EP CA, which states that the label for dual fuel vehicles must:

‘‘(A) indicate the fuel economy of the auto mobile when operated on gasoline or diesel fuel; (B) clearly identify the automobile as a dual fueled automobile; (C) clearly identify the fuels on which th e automobile may be operated; andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 66 of 315 (D) contain a statement informing the consum er that the additional information required by subsection (c)(2) of this section is published and dist ributed by the Secretary of Energy.’’ 128

The current labeling requirements for dual-fu eled vehicles are consistent with these requirements. While not required, manufacturer s may voluntarily include the fuel economy estimates (and estimated annual fuel costs) for the alternative fuel on the label, in addition to the gasoline information. 129 Consumers can view the gasoline and E85 fuel economy estimates of all FFVs in the Fuel Economy Guide and at www.fueleconomy.gov . In fact, EPCA requires that the Fuel Economy Guide contain information su ch as: (1) the fuel economy when operating on the alternative fuel, (2) the driving range wh en operating on the alternative fuel, and (3) information about how the performance might ch ange when operating on mixtures of the two fuels.

EPA did not propose changes to these requireme nts in the 2006 labeling rule and did not seek comment on the topic. However, EPA r eceived late public comments from several environmental and consumer groups urging EPA to require additional information on the use of E85 on FFV labels. Since EPA did not propose a nd request comments on this topic in the 2006 rulemaking, the agency did not finalize any such requirements.

EPA and NHTSA request public comment on three options for FFV labels.

One option is to make no changes to the current requirements for FFV labels and continue to use fueleconomy.gov and the Fuel Economy Guide to provide information on E85
use to consumers. 130 Consistent with the current requ irements, EPA and NHTSA would finalize regulations that would allow manufacturers to di splay the E85 fuel economy values on the label on a voluntary basis. 131 The final regulations would include a template for such a label.

A second option is to require the addition of E85 fuel economy values to FFV labels using the units of miles per gallon. Since E85 has a lower energy density (i.e., about 25% less energy per gallon) than gasoline, this means that , other things being equal, an FFV will have a lower fuel economy on E85 than it will on gasoline. EPA recognizes that this does not mean that ethanol is a “less efficient” fuel than gasoline; in fact, FFVs are typically slightly more efficient on E85 than on gasoline in terms of miles per uni t of energy. Accordingly, one approach under this option would be to add text such as the following wording on the label that conveys this message: “While the E85 mpg values are lower th an the gasoline mpg values, the use of E85 is actually slightly more energy effici ent than the use of gasoline.” Under this option, it would also be possible to add E85 values for CO 2 emissions (an FFV typically emits slightly less CO 2 per mile on E85 than on gasoline) and fuel costs (an FFV typically costs somewhat more to operate on E85 than gasoline, though this can vary by region). If CO 2 values are not shown, it would

128 49 U.S.C. 32908(c)(3).
129 40 CFR 600.307-08(b)(14).
130 Consumers do get some information regarding E85 efficiency on a label required by the FTC. Currently the FTC label for FFVs displays the driving range on both fuels and some additional information regarding the use of alternative fuels. See 16 CFR Part 309.
131 Label examples for FFVs are shown in Section III, but th ese reflect only a transition of the currently used label content (some of which is required by statute) to the proposed label designs.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 67 of 315 also be possible to include a statement such as “Using E85 uses less oil and typically produces less CO 2 emissions than gasoline.”

A third option is to utilize the concept of m iles per gallon of gasoline-equivalent (mpg-e), which is a way to quantitatively account for the slightly higher miles per unit of energy that an FFV achieves on E85 relative to gasoline. Beca use a gallon of gasoline has about 33 percent more energy than a gallon of E85, this means that an E85 mpg is multiplied by about 1.33 to convert it to a mpg-e value. For most current FFV s, an E85 mpg-e value will be slightly higher than the gasoline mpg value. The E85 mpg-e value could be in place of, or in addition to, an E85 mpg value. As with the second option above, CO 2 and fuel costs values for E85 could also be included.

The Federal Trade Commission (FTC) currently requires the use of a label that displays the cruising range of FFVs and other alternative fuel vehicles. If the agen cies finalize one of the options to include E85 informati on, and the FTC determines that that information is duplicative with its own information, it opens up the possibilit y that the FTC might review its requirement.

One remaining issue with FFVs is the methodology for assigning an overall combined value for greenhouse gas or fuel economy-based ratings or for any other metrics for which a single “merged” value is shown, gi ven that two different fuels can be used. There is empirical evidence that approximately 99% of all FFV owners currently use ga soline rather than E85 fuel. Given this, the agencies propose, as a default, to base any merged values for FFVs on the assumption that the vehicle is operated on ga soline 100% of the time. However, if a manufacturer can demonstrate that some of its FFV s are in fact using E85 fuel in use, then the merged values can be based in part on E85 performance, prorated based on the percentage of the fleet using E85 use in the field. This approach is consistent with that used for vehicle GHG emissions compliance under the joint EPA/DOT standards for 2016 and later model year vehicles. 132 The agencies seek comment on applying the same approach here.

2. Compressed Natural Gas Vehicles

EPA regulations currently provide a label te mplate for vehicles operating on compressed natural gas (CNG), and there is on e major manufacturer currently se lling a natural gas vehicle in selected markets. Given that a CNG vehicle is a single-fuel vehicle, EPA believes that the label designs developed for conventional or other alternative fuel vehicl es can be easily adapted to gaseous-fueled vehicles, as has been done in th e past. In fact, EPCA provided specific instructions regarding ho w to determine the fuel economy for de dicated alternative fuel vehicles such as gaseous-fueled vehicles. The statute st ates that for dedicated automobiles the fuel economy “is the fuel economy for those autom obiles when operated on alternative fuel, measured under section 32905(a) or (c) of this title, multiplied by 0.15.” 133 Section 32905(c) applies to gaseous-fueled vehicl es, and it requires the following:

“For any model of gaseous fuel dedicated automobile manufactured by a manufacturer after model year 1992, the Administrator shal l measure the fuel economy for that model

132 75 FR 25433, May 7, 2010.
133 49 U.S.C. 32908(b)(3).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 68 of 315 based on the fuel content of the gaseous fuel used to operate the automobile. One hundred cubic feet of natural gas is deemed to cont ain .823 gallon equivalent of natural gas. The Secretary of Transportation shall determine the appropriate gallon equivalent of other gaseous fuels. A gallon equivalent of gaseous fu el is deemed to have a fuel content of .15 gallon of fuel.” 134

This methodology is currently specified in EPA regul ations. Note that 32 905(c) applies a factor of 0.15, which is essentially a “credit” that increa ses the fuel economy of gaseous-fueled vehicles by a factor of about 6.7 for the purpose of CAFE calculations. But the statute recognizes that incorporation of this credit factor in the label values is not appropriate , hence the provision in 32908(b)(3) to multiply the 32905(c) result by 0.15, thus removing the credit value and resulting in an appropriate real-world label value.

The current EPA regulations interpret the st atute as requiring that the label for CNG vehicles display a gasoline-equivalent value, an d a label template for CNG is provided in the current regulations. 135 As can be seen, the current label for CNG vehicles is fundamentally the same as for gasoline vehicles, except that the fuel economy values are described as “gasoline equivalent” values, and the estimated annual fuel cost is based on a combined city/highway gasoline equivalent value and the price per gallon equivalent of CNG. The current label also contains text that reads “T his vehicle operates on natural gas fuel only. Fuel economy is expressed in gasoline eq uivalent values.”

We are therefore proposing that labels for CNG vehicles be essentially the same in terms of content and appearance as those proposed for conventional vehicles, with only a few exceptions. First, where the proposed labels i ndicate the fuel type, la bels for CNG vehicles would state “Compressed Natural Gas Vehicle.” Second, the fuel economy value(s) would be stated as gasoline-equivalent values. As is the case for the proposed labe ls for electric vehicles, the CNG labels would indicate the conversion factor that is used to determine the gasoline equivalent values (0.823 gallons-e quivalent per 100 cubic feet of CNG, as required by statute). 136 Third, the estimated annual fuel cost would be calculated using the combined city/highway gasoline equivalent value and th e cost per gallon equivalent ofCNG. The use of gasolineequivalent gallons is appropriate because this is how CNG is dispensed, priced, and sold at current CNG fueling stations. Finally, because th e cruising range of CNG vehicles is typically limited relative to conventional vehicles, we ar e proposing the addition of cruising range to the CNG vehicle label (in this way the label would mimic the electric ve hicle label). As is the case with electric vehicles, we beli eve that range is a key piece of information for the consumer who is considering a CNG vehicle. Other informa tion on the label, such as the greenhouse gas and other pollutant emissions and ratings, would be de termined from emission and fuel economy test results and the proposed calcula tion methodologies as is the case for all vehicles.

Section III presents the proposed and altern ative label designs, including a proposed design for CNG vehicles. We request comment on the proposed approach for CNG vehicles, and

134 49 U.S.C. 32905(c).
135 Appendix IV to 40 CFR Part 600, Sample Fuel Economy Labels for 2008 and Later Model Year Vehicles.
136 49 U.S.C. 32905(c).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 69 of 315 whether there is additional information specific to CNG or alternative fuels that should be on the label.

3. Dual Fuel Natural Gas & Gasoline Vehicles

Although there is currently a te mplate for dual fuel CNG/gasoline vehicles in the existing regulations, there are no manufactur ers that are currently manufactur ing new vehicles that run on CNG and on gasoline. 137 Thus we request comment on whet her there is a ne ed to develop a template for these vehicles based on the new labels. The agencies envision that such a label would be based largely on the proposed appro ach for dual fuel gasoline/ethanol vehicles discussed in above, in that the fuel economy an d related information for both fuels would be displayed on the label.

Although this proposal addresses most current technologies, it does not need to address every possible fuel and technology combination either in existence or that may emerge in the future. EPA has the authority to prescribe test pr ocedures and label conten t for vehicles that are not specifically addressed by the regulations, an d expects to do so on an as-needed basis to address new technologies and fuels. 138 In fact, EPA expects to ex ercise this authority with respect to labels for electric vehicles and plug-in hybr id electric vehicles that arrive on the market before the 2012 model year.

III. Proposed Revisions to Fu el Economy Label Appearance

This section presents and requests comment on three label des igns. The agencies are coproposing label 1 and label 2 design options, mean ing that the agencies currently expect to finalize one of the two options. A third label design is being presented as an alternative on which the agencies are requesting comment. All of these designs take into account and meet the variety of statutory requirements in EPCA and EISA as discussed in Section I. It is important to note that although all of the label designs shown in this section make us e of color to varying degrees, this Federal Register notice is capable of only displaying gray-sca le versions. Full color versions can be viewed and/or downloaded from the docket (s earch for docket number EPA-HQOAR-2009-0865 or docket number NHTSA-2010-0087 at www.regulations.gov ) or from the agencies’ web sites where all information related to this action will be posted ( http://www.epa.gov/fueleconomy/regulations.htm and http://www.nhtsa.gov/fuel-economy). To the extent possible this section will describe the us e of color on the labels, but interested parties should view the color versions to underst and the full effect of the label designs.

Each design family consists of a set of la bels applicable to an array of vehicle technology/fuel types. Specificall y, we show label examples that apply to conventional vehicles (that is, vehicles operating on a single fuel with internal combustion engi nes or hybrid electric drive), flexible-fuel vehicles (for example gaso line-ethanol), compresse d natural gas vehicles, electric vehicles, and plug-in hybrid electric vehicles. Each label family could be readily adapted

137 Some aftermarket conversion companies offer such vehicles, but EPA regulations do not currently require fuel economy labels for afterm arket conversions.
138 40 CFR 600.111-08(f) (test procedures) and 40 CFR 600.307-08(k) (label format requirements).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 70 of 315 to accommodate additional vehicle technologies or fu els, such as vehicles powered by fuel cells or other upcoming technologies. The agencies inte nd to finalize a label family with a consistent look and feel across vehicle types, in the belief that such consistency will most effectively allow for recognition of the label as well as comprehension of its content.

The agencies found through the focus groups and expert panel that many consumers will view the fuel economy label quickly, some using it to confirm the vehicle information they have previously researched on a manufacturers’ website or a third party website such as Consumer Reports or Edmunds.com. Other consumers, in c ontrast, will view the fuel economy information for the first time when they visit a dealer lot or showroom. While a new vehicle purchase represents a significant financ ial outlay, the agencies learne d through their re search that consumers like it simple, and do not necessarily act on details. Therefore, while the agencies want and need to add certain pieces of informa tion to meet statutory requirements and to help consumers make informed decisions about the fu el consumption and environmental impacts of their vehicle choices we must balance these obje ctives with the need to keep the new labels consumer friendly. To accomplish this, the agencies were guided by a set of core principles in designing these labels. Th e labels should:

 Create an immediate first impression for consumers

 Be easy to read and understand quickly

 Clearly identify vehicle technology (conventional, EV, EREV, PHEV)

 Utilize color

 Chunk information to allow people to deal with “more information”

 Be consistent in content a nd design across technologies

 Allow for comparison across technologies

 Make it easy to identify the most fuel effi cient and environmentally friendly vehicles

The agencies are requesting comment on both the design and content of each label. Design issues are self-evident on the labels as presented, and we seek comment on the design aspects of each label family, including format, color, font, and graphical elements. Content issues have been extensively discussed thr oughout the preamble; for illustrative purposes, presentation of content varies somewhat from one label family to another and we seek comment on the various approaches. Specifically, we seek comment on the layout, prominence, and grouping of label elements in terms of clarity, apparent relative importa nce, responsiveness to consumer information needs, and effectiveness at meeting public policy goals. These sample labels do not present every po ssible configuration of each la bel; for example, gas guzzler information is not depicted, as it is utilized on onl y a small subset of labels. The final rule will provide specific templates for these unique cases . Detailed specifications for presenting all required label information will be included in the regulations.

Although we will finalize labels with a uniform look and feel, commenters should not view the content of the labels below as being ne cessarily tied to one la bel design. For example, just because Labels 1 and 3 for PHEV are the only labels tha t display the all-electric range for a PHEV does not mean that the information could not be incorporated into Label 2 or into other label designs. We are interested in comments th at relate both to conten t that should be on the label, how it should be communicated, and what overa ll label presentation is most effective and consumer friendly.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 71 of 315 Finally, please note that alt hough the agencies have made every effort to make these labels as realistic as possible and to ensure that the values on each label ar e internally consistent, the labels presented here should be considered ex amples that are not intended to represent real automobiles.

A. Proposed Label Designs

The agencies are proposing two label desi gns, presenting both de signs as equal “coproposals” but expecting to finalize only one design based on public comments and other information gathered after the proposal. Although the two designs shown below have fundamentally different visual appearances and w ill no doubt elicit very different reactions from some viewers, they essentially present exactly the same basi c information. For conventional vehicles, for example, each design displays the following:

• City MPG

• Highway MPG

• Combined gallons/100 miles

• CO 2 grams per mile (combined city/highway)

• Estimated annual fuel cost

• Range of fuel economy within the class

• The fuel the vehicle uses

• Three “slider bars” showing th e performance of the labeled vehicle relative to other vehicles for mpg, CO 2 , and other air pollutants

• Annual fuel cost assumptions

• A symbol that can be read by a “‘Smartphone”’ for additional consumer interactions (i.e., a “QR” Code)

• A Fuel Economy Guide statement

• EPA, DOE, and DOT logos

1. Label 1

Label 1 is fundamentally different from Label 2 and 3 designs presente d in this section in three different ways:

 First, the orientation is a portrait orientation, rather than the landscape style of the current label.

 Second, a rating reflecting the energy effici ency and environmental impacts of the vehicle is given overall prominence. Instead of providing a series of numbers on the label with varying or equal prominence, wh ich may make it difficult for consumers to evaluate at a glance, this label presents the energy and environment rating as a letter grade (a system familiar to all consumers) with major prominence at the top of the label. The letter grade is simply another familiar scale on which to present a linear rating, comparable to the star system or a 1-10 rating. This grade would be based on CO 2 emissions and fuel economy consumption as described in Section II. To further help consumers identify the grade of a vehicl e on the dealer sales lot, the agencies areFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 72 of 315 proposing that different colors be used to differentiate between grade “families.” In other words, the dominant color on all the “A ” grade labels would be one color, the “B” grade labels would use a different colo r, and so on. For example, the circle which surrounds the letter grade would be a different color depending on the grade. The color versions of the labels demonstrat e this, using green for A grades, yellow for B grades, orange for C grades, and a dark orange for D grades.

 Third, this label provides new fuel cost savings information not seen on any other label designs. Secondary only in prominence to the letter grade, and immediately below the letter grade, Label 1 would display the 5-year fuel cost of the vehicle in comparison to the average vehicle. For vehi cles with fuel economy ratings above the median vehicle, the label would display how much the consumer would save, and for vehicles with ratings below average the label would display how much more the consumer would be spending.

All the remaining information is displayed in the bottom portion of the label and would be available to consumers who want to know the more detailed information or who take a more analytical approach to evaluating the vehicle. The agencies believe that this approach uses a rating system that is easily understood by consum ers and that would dramatically simplify the process of evaluating the overall energy efficiency and environmental impacts of the vehicles they are considering. The de-em phasis of mpg on this label – indeed, one purpose of directing consumers to the overall rating – is intended to enable consumers to make the best fuel consumption and environmental choices, choices made easier by the addition of the comparative cost information. Additionally, a consumer that us es the letter grade and cost information on this label may be able to avoid the effect of the “mpg illusion” described in Section II.

[Label 1: for Fed. Reg. insert gray -scale versions of final labels]Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 73 of 315 Figure III-1. Label 1 for conventional (gas) vehicle, B grade.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 74 of 315 Figure III-2. Label 1 for electric vehicle, A+ grade.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 75 of 315 Figure III-3. Label 1 for PHEV, A grade.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 76 of 315 Figure III-4. Label 1 for conventional (gas) vehicle, C grade.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 77 of 315 Figure III-5. Label 1 for conventional (gas) vehicle, D grade.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 78 of 315 Figure III-6. Label 1 for PHEV, Option 2.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 79 of 315 Figure III-7. Label 1 for CNG vehicle, A- grade.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 80 of 315 Figure III-8. Label 1 for FFV, B grade.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 81 of 315 Option 2 for the PHEV version is offered as an alternative representation of plug-in hybrid electric vehicles. This option was developed to be cons istent with other dual-fuel vehicle labeling approaches. It also provides an example of how more information about the different modes of operation for PHEVs could be displayed on Label 1. The agencies seek comment on whether this alternate approach to PHEV labeling for Label 1 provides better information for consumers or whethe r the first option is more useful.

2. Label 2

Label 2, shown below takes a more traditional approach, similar to the current fuel economy label and highlights the key metrics of mpg and annual fuel cost. As explained in Section II, these labels show the combined city /highway mpg with the highest prominence. The additional ratings are essentially identical to t hose of Label 1, except with the additional space for the mpg rating “slider bar.” Because of this ex tra space for the slider bars, Label 2 can also display the range of fuel economy of the appl icable vehicle class (Label 1 provides this information in text form) in the context of the ra nge of fuel economy for the whole fleet.. Label 2 uses the slider bar approach like Label 1 for all of the specific ratings, and, like Label 1, has separate ratings for mpg, greenhouse gases, and other air pollutants. The electric vehicle label in this series does have an additional piece of info rmation relative to Label 1 -- the battery charging time. And unlike Label 1 and Labe l 3, the PHEV label in this se ries provides separate annual cost estimates for both the electric and gas m odes of operation, which may be more useful to consumers who want to understand the costs specif ically associated with operating the vehicle solely on mode either when operating on elec tricity or in gas-only operating mode.

[Label 2: for Fed. Reg. insert gray -scale versions of final labels]Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 82 of 315 Figure III-9. Label 2 for conventional (gas) vehicle.

=Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 83 of 315 Figure III-10. Label 2 for electric vehicle.

Figure III-11. Label 2 for PHEV, ex tended range electric (series) type.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 84 of 315Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 85 of 315 Figure III-12. Label 2 for PHEV (predominantly blended type).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 86 of 315 Figure III-13. Label 2 for CNG vehicle.

Figure III-14. Label 2 for FFV.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 87 of 315 B. Alternative Label Design (Label 3)

The agencies also seek comment on a th ird label design that includes the same information as the other labels, but displays al ternative ways of communicating the information. For example, this label (Label 3) combines th e greenhouse gas and fuel economy ratings into one slider bar using a 1-10 rating scal e (rather than the absolute va lues used in the other label designs), and instead of a relative “slider bar” scale for the other air pollutant rati ng, Label 3 uses a star rating system. Other than the difference in the rating systems, the Label 3 electric vehicle label provides essentially the same information as Label 2. For PHEVs, Label 3 provides only one annual fuel cost number (like Label 1) that merges the electric and gasoline modes. This label also displays for PHEVs an all-electric rang e, if the vehicle is ca pable of such operation.

[Label 3. For Fed. Reg. insert gray -scale versions of final labels.]Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 88 of 315 Figure III-14. Label 3 for conventional (gas) vehicle.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 89 of 315 Figure III-15. Label 3 for electric vehicle.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 90 of 315 Figure III-16. Label 3 for PHEV, ex tended range electric (series) type.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 91 of 315 Figure III-17. Label 3 for PHEV, predominantly blended type.

IV. Agency Research On Fuel Economy Labeling

As discussed above, the fuel economy label m ust contain certain pieces of information by statute, and may additionally contain other pi eces of information considered helpful to consumers. Given that all of the label inform ation must be presented so as to maximize usefulness and minimize confusion for the consumer, EPA and NHTSA embarked upon a comprehensive research program beginning in the fall of 2009. Developing an effective label – one that conveys the required and desired inform ation to consumers so that they can understand and use it to make decisions-- involves some i nherent subjectivity, sin ce what is understandable and useful for one consumer may be confusing or unhelpful to another. To better ground our proposed label designs in actual human responses, the agencies set out to better understand the following general issues: whether, how, and to what extent consumers use the current fuel economy label in the vehicle purc hase process; the barriers to consumer understanding of the fuel efficiency of vehicles relative to one another (including both conventional vehicles and advanced technology vehicles); a nd how a newly redesigned label could most effectively convey information to consumers on fuel economy, fuel consumption, fuel cost, greenhouse gas, and other emissions.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 92 of 315 When EPA last redesigned the fuel economy label in 2006, consumer research was valuable in helping to inform the development of that label. 139 Since today’s proposal includes adding important new elements to the existing labe l as well as creating new labels for advanced technology vehicles, EPA and NHTSA embarked on a more comprehensive consumer research program than that undertaken in 2006 and have us ed this research to help develop the labels proposed in this NPRM.

A. Methods of Research

To gather infor mation about the topics descri bed below, the agencies designed a research plan including a review of literature on the vehicl e buying process, three sets of focus groups in four different cities, a day-long facilitated consultation with e xperts in the field of shifting consumer behavior, and an internet survey of responses to proposed label designs (which will occur during the comment period following this NP RM). A more thorough discussion of each research method is provided below.

1. Literature Review

EPA and NHTSA conducted a review of the ex isting literature to understand the vehicle buying process. Specifically, the literature revi ew addressed the sources of information that consumers use to research vehicles, their decision -making process, and the factors that influence which vehicles consumers choose to buy. These in clude vehicle-specific f actors such as price, fuel economy, and safety, as well as the role th at demographics and ps ychographics play in purchasing decisions. Literature examining c onsumer attitudes toward buying more fuel efficient and environmentally frie ndly (i.e., “green”) vehicles wa s also reviewed. Understanding when and how consumers consider fuel economy and the environmental impact in their vehicle purchase decisions helped the agencies determin e the most effective ways to provide useful information to consumers on the vehicle label.

Additionally, the literature review report in cluded an overview of existing educational campaigns aimed at helping consumers use in formation on the fuel efficiency and the environmental effects of their transportation choices. Review of these campaigns may help inform the agencies’ development of educationa l tools and messages beyond the label to provide consumers with useful information on fuel effi cient and environmentally friendly vehicles.

A broad range of sources were reviewed for th is report, including j ournals in marketing, economics, and transportation research; business magazines; government documents; conference proceedings; and a variety of websites. Some of the key findings from the literature review are described in Section IV.B. A more detailed report is available in the docket. 140

2. Focus Groups

139 The current label was redesigned and implemented for model year (MY) 2008 vehicles. See 71 FR 77871-77969 (December 27 2006).
140 EPA Fuel Economy Label Project Literature Re view, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 93 of 315 The agencies felt it was critical to consid er understandability and consumer reaction to a variety of label concepts given that the purpose of the fuel economy label is to inform consumers of the vehicle’s fuel economy and, with the amendments enacted by EISA, greenhouse gases and other emissions. EPA and NHTSA additionally sa w a need to conduct research beyond that of the previous rulemaking due to the advancements in vehicle te chnology underway, the increased market share of vehicles that use fuels other th an gasoline, and the intr oduction of environmental information to the label. The agencies determin ed that they would gath er in-depth, qualitative feedback about fuel economy la beling, potential new label inform ation, and ways of displaying the information through focus groups. The focu s group format allowed for in-depth probing around a variety of topics, including comprehens ion of potential elements on the fuel economy label and how consumers may use that informa tion in making purchase decisions. The focus groups were not intended to provide quantitative results, but were instead designed to help EPA and NHTSA discern the subtleties of the large number of decisions that are necessary when creating a label that should convey numerous and sometimes complicated information.

The focus group process included a recruitmen t screener, on-line pre-focus group survey, and at least two gender-differentiated focus groups in four different cities for each of the three separate phases. The focus group methodology and results, including the recruitment screener and pre-focus group on-line surveys, are discussed in greater detail in the focus group Technical Memoranda available in the public docket for this rulemaking. 141

The agencies concluded that conducting th ree phases of focus groups, each with a different concentration, was necessary to gather adequate information to explore the complex and numerous issues raised by this rulemaking. Phase 1 gathered qualitative information on consumer understanding and use of the curren t fuel economy label, consumer reaction to potential new information and metrics on the labe l for conventional vehicl es, and also initial identification of effective displa ys for this information. Phase 2 asked consumers to identify what information they were interested in seeing on the label for advanced technology vehicles and explored the understandability and sufficiency of various information and metrics for PHEVs and EVs. Phase 3 explored the understandability and usefulness of new information integrated into whole label designs for both conventional a nd advanced technology vehi cles. Thus, overall, focus groups were used to obtain a qualitative understanding of consumers’ comprehension and reactions to fuel economy label information.

The agencies assumed that individuals who had recently purchased vehicles would have the best insight into how the current fuel economy label is used and would therefore also be best suited to provide input about any changes that might be made to the label. To that end, participants were selected based on having purch ased a vehicle within the past year, but not during the “cash for cl unkers” purchase window. 142 A “participant screener” was used to ensure a reasonable cross-section of purchasers was represente d in each group. Some of the demographic variations purposefully considered included the type of new vehicle purchased,

141 EPA-HQ-OAR-2009-0865.
142 “Cash for Clunkers” (Consumer Assist ance to Recycle and Save Act of 2 009, Pub. L. 11132) was a NHTSA program that provided a tax incentive to trade-in low fuel e fficient vehicles for new, high er fuel efficient vehicles. The purchase period in which this program operated was excluded to avoid any bias of participants, since the program was explicitly focused on fuel economy.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 94 of 315 price range of the new vehicle, average daily dr iving distance, and whet her the individual had seriously considered or actually purchased an advanced technol ogy vehicle such as a gasoline hybrid.

Each focus group participant was also asked to complete a short on-line survey before attending the session. This survey served three purposes: 1) to collect demographic data about the participants and information about their spec ific vehicle purchase pr ocess; 2) to provide participants with some background information a bout advanced technology vehicles so that the participants would have some exposure to new technologies prior to the focus group meeting; and 3) to gather information about how the participants had used the current fuel economy label in their purchase decisions, if at all. This su rvey data was not intended to be examined as a nationally representative samp le and was only used as supplementary information when describing the focus group results.

The agencies anticipate that there will be a dditional focus groups prio r to rule finalization in each of the four cities where focus groups we re held pre-proposal. These focus groups will examine revised labels based on feedback the agencies receive during the comment period and will provide additional input on whole label de signs. The agencies will place information obtained from these focus groups in the docket as it becomes available and encourages all interested parties to check the docket for updated information.

3. Internet Survey

While the focus groups were used to develop new labeldesigns,.the internet survey is meant to examine how understandable the new la bel designs are, and wh ether the proposed new label and alternative labels will improve consumers’ knowledge about more efficient vehicles. The planned survey is scheduled to begin concur rent with the signing of this proposal and will test these questions for both conventional and advanced technology vehicles. A notice of the survey, published in the Federal Register on May 12, 2010, requested comment on the survey methodology. 143 No substantive comments were received.

This survey will use two samples: self-sel ected U.S. new vehicle purchasers and people who expressed an intention to purchase a ne w vehicle by requesting a price quote from a dealer. 144 Each of these samples is divided into thre e separate groups. One version of the survey was developed for each group, identical in every way except that each of the groups will see only one of the label designs.

The survey tests respondents’ understanding of the labels by showing each respondent a series of label pairs. In each pair, all vehi cle characteristics are held constant except the information on the vehicle label. For instance, th e fuel economy of the vehicles may differ, or

143 U.S. EPA, “Agency Information Collection Activities; Pr oposed Collection; Comment Request; Internet Survey Research for Improving Fuel Economy Label Design and Content; EPA ICR No. 2390.01, OMB Control No. 2060- NEW,” 75 Fed. Reg. 26751 (May 12, 2010).
144 Sources of respondents were databases owned by Auto bytel, http://www.autobytel.com (for those intending to buy new vehicles), and Focus USA (for those who purcha sed a vehicle in the last year), http://www.focus-usa1.com.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 95 of 315 one may have a conventional vehicle and one an el ectric vehicle. Respondents are then asked to identify which vehicle is better to use for trips of specified distances. 145 The key metric of interest is whether the label de signs produce statistically significantly differe nt results. If one label produces more correct responses than othe r labels, then it can be considered more understandable; if the labels do not produce statistically different re sults, then the labels can be considered equivalently understandable.

To test the potential influence of the labels on vehicle purchases, respondents see pairs of labels for vehicles with all vehi cle attributes constant except those varied on the label, such as the technologies of the vehicles, their efficiencies , and their energy costs. Instead of using the label to identify the be tter vehicle for a scenario, the re spondents are asked which of these vehicles they would prefer to buy, based on thei r individual driving pa tterns. Comparisons involve both conventional and advanced technology vehicles. Because the survey asks respondents about their typical da ily driving distances, it is po ssible to see whether respondents chose the vehicle better suited for their habits. The key variable is whether the responses differ for different label designs.

The internet survey data collection is planne d to occur in early to mid-August 2010. The results of the survey will be made public as soon as they are available. The results will be made available in the public docket for this rulemaking at regulations.gov. If the results are not placed in the docket 30 days before the end of the co mment period, the agencies will accept comments on these results up to 30 days from when they were placed in the docket.

4. Expert Panel

In order to gather addition al feedback on the label designs developed from the focus groups and to identify opportunities and strategies to increase consumer preferences for energy efficient and environmentally friendly vehicles , EPA and NHTSA convened an expert panel. “Experts” were selected based on their past experience in changing so cial norms either by successfully launching new products or leading national educati on campaigns that have had a broad and significant impact. The method for selecting the panel began by first generating a list of products and social changes that met the criteria of impacting a significant percentage of the population quickly, while also demonstrating stayi ng power. Individuals w ho had roles critical to the success of these efforts were then identifi ed and recruited. Nine “experts” participated on the panel, with experiences that included launc hing very successful public health campaigns, internet sites, new technologies , and cable networks. The mee ting was held from 9 A.M. to 3 P.M. in Washington D.C. on June 9, 2010.

The topics covered include: background information, review and feedback on the EPA/NHTSA research process, messaging techni ques, outreach strategies, and feedback on

145 Respondents were asked which was better, rather than whic h was more fuel-efficient or less costly, so as to leave the respondents with the choice of what information on the label to use for the comparison. A later question asked which information they used in their response. While this somewhat ambiguous approach may reduce the absolute number of correct answers to the questions, the goal is tes ting the relative effects of the labels, not the absolute effects.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 96 of 315 possible label designs. The Expe rt Panel is discussed in greater detail in the Expert Panel Complete Report in the public docket for this rulemaking. 146

B. Key Research Questions and Findings

The agencies identified the following key research questions, given the overarching issues provided above:

• How should labels portray information about fuel consumption and fuel economy, fuel cost, greenhouse gas, and other emissions for consumers in a way that is most understandable and useful to them?

• How should labels for advanced technology ve hicles portray information about fuel economy, fuel cost, greenhouse gas, and other emissions for c onsumers in a way that is most understandable and useful to them?

• How should the new labels be designed to meet the statutory requirements while best raising consumers’ understanding of fuel efficiency, fuel co st and environmental impact?

• How can consumers compare vehicles when they are shopping?

• What purchase process do consumers curren tly use to make new vehicle purchasing decisions? Given this process, when are th e most effective opport unities to communicate fuel economy and environmental information?

1. Effective Metrics and Rating Systems for Existing and New Label Information

How should labels portray information about fuel consumption and fuel economy, fuel cost, greenhouse gas, and other emissions for co nsumers in a way that is most understandable and useful to them?

As described in Section I, EP CA and EISA require the fuel economy label to provide fuel economy, cost, and environmental information, as well as provide a means to compare vehicles based on fuel economy, greenhouse gases, and other emissions. The agency’s research program explored how this information mi ght be displayed on the label in a useful and accessible format for consumers.

a. Fuel Consumption and Fuel Economy

EPCA requires the label to di splay the “fuel economy of the automobile.” However, fuel economy, commonly thought of as “mpg” (the number of miles that can be traveled consuming one gallon of fuel) is often misunderstood by cons umers. As discussed more extensively in Section II, because mpg is not linear, when peopl e compare vehicles with different mpg values they are apt to incorrectly estimate the fuel savi ngs of one vehicle over another. For example, switching from a 15 mpg vehicle to a 20 mpg vehicle will save more fuel than switching from a 30 mpg vehicle to a 35 mpg vehicle. Thus, comparing vehicles based on mpg is not as helpful to consumers in making quick and accurate comparis ons as consumers may believe it to be. Fuel consumption (the number of gallons of fuel cons umed to travel a given distance), on the other

146 EPA Fuel Economy Label Expert Panel Report, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 97 of 315 hand, does yield the type of linear comparison that consumers should find useful. Therefore, the agencies explored ways to conve y fuel consumption on the label.

Focus groups were instrumental in helping the agencies learn a bout communicating fuel consumption. Specifically, Phase 1 focus groups set out to gauge how re ceptive consumers were to a fuel consumption value and whether there were particular presentation s of that value which were more understandable. To do this the ‘Fuel Economy (MPG) Illusion’ was introduced in the pre-focus group on-line survey, followed by specific probing in each group around what “fuel consumption” means. Phase 1 focus groups gene rally responded that it was the distance one can travel on a gallon of gas (which is fuel economy, ra ther than fuel consumption). Following this discussion the participants were presented with four different designs , each conveying fuel consumption and fuel economy information. The prominent value displayed within each design was fuel consumption, given in gallons per 100 miles while the less prominent value was fuel economy, given in miles per gallon. Even when pa rticipants demonstrated that they properly understood fuel consumption, most still indicated that they preferred miles per gallon over gallons per 100 miles. Participan ts indicated this to be the case even after the moderator explained the ‘MPG Illusion.’ A few participan ts did indicate that viewing gallons per 100 miles, instead of miles per gallon, might get them to switch to more effi cient vehicle types. Some participants also said that they believe d they would use the gallons per 100 mile fuel consumption information on the label to lear n about the vehicle’s city and highway gas consumption and to compare between different vehicles in making their purchase decision. However, most participants were not enthusiastic about using the fuel consumption information.

Almost all focus group participants showed a strong attachment to mpg. They like and use the city and highway mpg and are not familia r with gallons per 100 miles. If a new fuel consumption metric, such as gallons per 100 miles, were added to the la bel participants would still want the familiar mpg metric to be prom inent on the label. Recognizing that consumers believe they derive significant value from mpg, but that consumption information may be more accurate and ultimately valuable to consumers, another approach to displaying fuel consumption was also devised and presented to focus groups: an “annual gallons used” value. The basis for deriving this new metric was th at 1) it makes the magnitude of comparing vehicles based on consumption more apparent, and 2) it provides a clear link betw een the annual cost value and fuel consumption value. An annual gallons metric was also found to be one of the more effective ways to demonstrate the fuel economy illusion. While the agencies considered displaying the annual gallons of fuel information on the label we ultimately determined th at the gallons per 100 mile metric should be introduced on the label as the new consumption metric, and that the introduction of the five year cost or savings information would also help consumers in overcoming the effects of the mpg illusion while also providing important additional information.

Phase 1 focus group participants also evaluate d four different gra phical display options for fuel consumption and were asked which was the most understandable design. Participants responded by identifying the design they felt was simple, informative and in a familiar format. However, participants did not agree on which design accomplished this.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 98 of 315 The agencies further explored fuel economy and fuel consumption designs in Phase 3 where focus group participants were asked to evaluate whole label de signs encompassing both fuel economy and fuel consumption values. In e ach of the three labels presented, the mpg value was a dominant metric. 147 For each design participants were asked to determine between two labels, which represented the more fuel efficient ve hicle. Participants were also asked to identify what piece of information on the label they used to make this determination. Fuel consumption was rarely identified as being used by particip ants. Instead, participants used mpg and cost values most often. 148

In Phase 3, the agencies explored simplifica tion of the labels by displaying on two of the three label designs only the combined (55% city and 45% highway) fuel economy value in lieu of listing the city and highway values separatel y. (See Section IV.B.4 fo r a discussion of whole label designs and why simplification is perceive d as an overarching goal.) When participants were probed about why they did or did not like ce rtain label designs, the presence of city and highway values was often cited as a positive for a label design, and the absence of the city and highway values was cited as a negative for a label design. In addition, when asked how to improve the label designs, several focus group part icipants asked for the city and highway values to be added to the label designs that did not include them.

The agencies gathered additional input on the most effective approaches for portraying fuel economy and fuel consumption information dur ing the expert panel meeting. After viewing three label designs, expert panel participants pr ovided comments on how the label could be made more understandable and useful for consumers. Th e expert panel emphasized that in order to be effective, the fuel economy label should be simple and able to be understood by consumers within a short amount of viewing time. To implem ent this goal, the expert panel suggested that the agencies develop a single, overall metric for vehicles that is easy for consumers to understand, such as a letter grade (A±, B±, etc.).

The expert panel also suggested that the agen cies consider redesigni ng the label such that the single metric is prominently featured on th e top half, and any additi onal vehicle information and more specific metrics be included on the la bel in smaller font and in a less prominent location. The expert panel stated that this ap proach would provide interested consumers with more detailed information without distracting from the simpler, overall metric that all consumers could easily understand. The rationale for this la bel design is that it can provide useful comparative information to the consumer who ma y only glance at it, while also providing the necessary details to those who want more in-d epth information. Additionally, the expert panel suggested prominently featuring a website UR L and a QR code for smart phones to provide consumers with access to more detailed vehicl e information elsewhere. For example, the website and smart phone application might contai n tools for consumers to calculate the fuel economy they can expect based on their own driv ing habits or allow consumers to quickly compare fuel economy and consumpti on for different vehicle models.

147 EPA Fuel Economy Label Phase 3 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010. (Contains visual depictions of each of the Phase III label series.)
148 EPA Fuel Economy Label Phase 3 Focus Groups Technical Memorandum, Prepared by PRR, Inc. July 2010. p.12.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 99 of 315 b. Fuel Cost

EPCA requires the fuel economy label displa y the “annual fuel cost of operating the automobile.” Recognizing that some consumers have previously appeared to distrust or dismiss annual costs as not representative of their own experience, EPA and NHTSA explored whether there were other cost units (such as cost per month, per mile, per week, etc.) that could be additionally provided that would be more meaningful to consumers.

Throughout the focus groups in Phase 1 and 2, part icipants indicated th at they tended to dismiss the annual cost information on the curren t label because gas pric es fluctuate and vary with location, and they do not drive 15,000 miles per year. 149 Nevertheless, Phase 1 focus group participants identified the estimated annual fu el cost as the second most used piece of information on the label. In addition, in Phase 2 focus groups, where participants were asked to create labels from scratch, most groups placed a cost value on the label. When cost values are used, focus group members indicated they used it as a comparative tool to evaluate the fuel efficiency of differe nt vehicles.

When asked what they thought about cost, focus group participants indicated they thought about the cost to fill a gas tank, the fuel cost over a period of time (daily, weekly, monthly, yearly, etc.), and the fuel cost over a given distance (cost per mile, 100 miles, 1000 miles, etc.). When Phase 1 focus group participan ts were presented with a variety of cost units, the two most popular choices among cost units were annual cost and cost per month. However, in Phase 3, when presented with labels that di splayed both a monthly cost and an annual cost, participants suggested that the m onthly cost value could be dropped.

Participants in the expert panel meeting sugge sted that the agencies provide information on the savings consumers could achieve by purchasi ng a more fuel efficient vehicle. One expert panel participant noted that the current label designs demonstrat e costs, but that it would be better to demonstrate savings, which te nds to be a very strong motivator. 150 One approach to communicating this information on the label would be to display the savings a consumer might expect over five years by purch asing and driving a ve hicle with a higher overall letter grade.

c. Environmental Metrics

Environmental information on greenhouse gase s (GHGs) and other emissions has not been previously displayed on the fuel economy label, so the agencies were interested in learning how a label might best convey to consumers info rmation about the emissions impact of a new vehicle. The available lite rature on the impact of “eco-labeling” vehicles is mixed. 151 Some of the research indicates that c onsumers may welcome an eco-label on their vehicle, although they say that it is unlikely to impact their purchas e decision. Through its c onsumer research, the agencies investigated what combination of metr ics and ratings might be displayed on the fuel economy label to provide this information in an effective and consume r-friendly way, including

149 15,000 miles per year is the current annual mileage assumption used on all fuel economy labels to estimate the annual fuel cost of operating a vehicle.
150 EPA Fuel Economy Label Expert Panel Report, Prepared by PRR, Inc, July 2010.
151 EPA Fuel Economy Label Project Literature Review, Prepared by P RR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 100 of 315 a stand-alone CO 2 performance metric, relative versus absolute rating systems, a comparison system, and an environmental certification mark.

For the most part, Phase 1 focus group particip ants indicated that th ey did not research environmental information (beyond fuel economy) as part of the vehicle purchase process. While some participants indicated that they would use environmental information to compare different vehicles if it was placed on the fu el economy label the majority of focus group participants were indifferent to the inclusion of environmental impact information on the label and indicated they were not likel y to visit a website for enviro nmental information. However, when presented with whole label designs in Phase 3 many respondents indicated that the environmental metric should be on the label, so that it is available for those who were interested.

In Phase 1, participants were presented with four different environmental metric options and approaches to displaying environmental in formation, and were asked to rate the most understandable and least understandable. Par ticipants stated that they understood the environmental information in general, but did not understand what “grams of CO 2 ” meant. The display featuring a rating for other emissions in stars and grams of CO 2 numerically was most frequently chosen by Phase 1 participants to be the most understandable. Participants generally favored presentations that showed informa tion in a simple format, though there was no consensus on which format achieved this. In ge neral Phase 1 and 2 focus group findings indicate that we must keep environmental information simp le if we want consumers to pay any attention to this information on a label. An overall envi ronmental rating was most favorably received with the general reaction being that EPA was trusted to decide how to combine environmental impacts into a single rating.

Phase 1 focus groups were also asked if they recognized and knew what the “SmartWay” logo meant. None of the participants rec ognized the logo. However, when probed, most ascertained that it was an EPA designation of some sort. While some participants indicated the logo may confer credibility to an environmentally friendly vehicle, none in dicated they would be less likely to purchase a vehi cle without the logo.

In Phase 3 focus groups the agencies sought to examine further how environmental information might be displayed most effectivel y. Several permutations of graphical rating systems were shown to participants. These in cluded designs in which “greenhouse gases” and “other air pollutants” were displayed as one combined enviro nmental rating or separately. Rating scales were examined that were based on re lative values, such as a “5 leaf” rating system as well as a linear scale that had the vehicle’s absolute CO 2 value identified on a scale that had end-points identifying the approximate highest and lowest emitting vehicles available. 152

The expert panel, when shown the labels designed by the agencies based on focus group input, stated that they neither understood the environmental in formation presented nor found it compelling. As described in Section IV.B.4, the expert panel recommended developing an overall rating for vehicles, which could combine fuel economy and environmental impacts. The expert panel noted that additional metrics (e.g., CO 2 performance) could be included in a less

152 See EPA Fuel Economy Label Phase 3 Focus Groups Te chnical Memorandum, Prepared by PRR, Inc, July 2010.for a detailed description of the metrics examined.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 101 of 315 prominent position on the label for consumers interested in more detailed environmental information. Expert panel participants also suggested that environmental performance information could be made available on a web site and accessed through the smart phone interactive (QR Code) featured on the label. 153

2. Effective Metrics and Ratings Syst em s for Advanced Technology Vehicles

How should labels for advanced technology vehicles portray information about fuel economy, fuel cost, greenhouse gas, and other emissions for consum ers in a way that is most understandable and useful to them?

In addition to the issues discussed above for conveying in formation generally on labels, advanced technology vehicles that operate on fu els which differ from conventional gasoline and diesel fuel require new stra tegies to communicate and disp lay fuel economy information effectively. 154 Through the research program, we explored potential approaches to communicating useful fuel economy, cost, and envir onmental information about electric vehicles and several variations of plug-in hybrid electri c vehicles. As discussed further below, the research probed consumers to identify what specifi c information they would need if they were to seriously consider purchasing an advanced tech nology vehicle and what information would be most helpful on an advanced technology fuel economy label. 155

Phase 2 focus groups were devoted to e xploring what label information consumers believed was most important to display for advan ced technology vehicles given the limited space provided on the fuel economy label. The focu s group discussions were broken into segments based on three different vehicle technologies : EVs, extended range PHEVS, and blended PHEVs. Focus group discussions th us separated the different techno logies in order to ascertain more accurately what information would be most useful to consumers to understand these new technologies. Phase 2 focus groups were tasked with “building” three different labels, each for different advanced technology vehicles and were given a large number of metrics from which to choose the building blocks. Almost all of the labels built by each focus group included the following elements: (1) the range that the vehicle could travel while depleting a full battery, the charge depleting operation; (2) th e length of time it takes to charge the battery; (3) the cost of charging the battery, and if operating in two separate fuel modes, the cost associated with each mode of operation; and (5) an environmental metric. 156 When asked to identify the two most important pieces of information on the label, participants said, regardless of the city, gender, or technology discussed, that information on the range an advanced technol ogy vehicle can travel on a fully changed battery and the length of time is takes to charge the battery were the most important information they needed to have in orde r to seriously consider purchasing these type of vehicle.

153 EPA Fuel Economy Label Expert Panel Report, Prepared by PRR, Inc, July 2010.
154 See Section III.B. and III.C. for a discussion of the challenges that advanced technology and other non-traditional vehicles present for consumers when making vehicle purchase decisions.
155 EPA Fuel Economy Label Phase 2 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.
156 EPA Fuel Economy Label Phase 2 Focus Groups Techni cal Memorandum, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 102 of 315 The expert panel’s label recommendations di d not differentiate between conventional and advanced technology vehicles. The recommendations they made for the conventional vehicle label would apply to the advanced technology vehicle label as well.

a. Range

Focus group participants stated that for any vehicle that opera tes, even just part of the time, on electricity, it is important for them to know the distance the vehicle can travel on a fully charged battery. Participants saw this as vi tal to their understanding of the vehicle’s fuel economy. While Phase 2 focus groups expressed in terest in seeing the ra nge displayed for both city and highway values, when Phase 3 participants were presented with full labels, no one asked for the range to be broken down by city and highway values.

b. Fuel Cost

Across all advanced technologies, participants were interested in battery charging costs. There was a fairly even split between cost per mile, annual cost and monthly cost values, regardless of technology. For a ny vehicle with a gaso line-only mode of oper ation, participants expressed a desire to see the cost expressed annually. The groups also indicated that labels for any vehicle that operated in a combined gas and electric mode should provide cost information on an annual basis. In Phase 3, when presented with annual fuel cost and monthly fuel cost options, many participants used the annual fu el cost when comparing across advanced technology vehicles. Some indicat ed that the monthly cost wa s useful for these advanced technology vehicles. In particular , people equated the electricity consumption to their monthly home electricity statements.

c. Fuel Consumption and Fuel Economy

For any advanced technology vehicle that operates in a gas-only mode, the Phase 2 focus groups indicated a strong desire to see fuel consumption expressed in miles per gallon. In any vehicle that had an electric-only mode of opera tion, the focus groups favor ed seeing the electric consumption information expressed in an MPG e quivalent of “MPGs”. (See Section II.B for a detailed discussion of MPGe). The second most understandable metric of electric-only operation was kilowatt-hour per 100 miles, but many particip ants felt strongly that kilowatt hours are very unfamiliar and should not be chosen as a metric. For the PHEVs with a blended mode (gas and electric), focus groups were interested in seeing an MPGe that combined the MPGe of electric operation and the MPG of gas opera tion. In any vehicle that coul d operate in more than one mode of operation, such as an EREV or PHEV, pa rticipants were intere sted in seeing fuel consumption values for each mode of operati on, although some were interested in seeing a consumption value for the two modes expressed in MPGe 157 in addition to displaying the separate consumption information.

d. Environmental Information

157 Participants were given this option using existing utility factor data as th e method for combing the two modes of operation. See Section VI.B for a discussion about utility factors.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 103 of 315 Focus group participants did not independently identify the need to have environmental information on the label. However, in Phase 2, with the exception of one group, when given the option, all the groups elected to include environmen tal information on the la bel. Of the designs provided many participants selected a horizontal slider scale that ranked the vehicle’s impact as the most understandable conveyance of environmental information.

Other displays of environmental metrics we re examined in Phase 3. These displays included sliding scales segmented with relative rating systems as well as those with absolute values. Relative ratings such as stars or leaves were also shown. Par ticipants commented that they wanted something that was quick and easy to read. Most focus group participants preferred something that was quick with little detail while some wanted more detailed information to help inform their decisions. Based on this finding, the agen cies incorporated this approach into the coproposed label designs in attempt to find the ri ght balance of simple and detail information presentation. See section IV.B.1 for more comprehe nsive discussion of the environmental information focus group findings.

3. Effective Metrics to Enable Vehicle Comparison

How can consumers compare vehicles when they are shopping?

Beyond the statutory requirement to develop rating systems for fuel economy, GHGs, and other emissions, with designations of the “bes t” vehicles in terms of fuel economy and GHG emissions, the agencies r ecognize that the labels need to be consumer-friendly in terms of facilitating cross-vehicle and cross-technology comparisons. If consumers first encounter advanced technology vehicles on the dealer’s lot, and ar e not predisposed to buy one, a label that effectively conveys the benefits of purchasing such a vehicle through a clear and understandable rating system will be helpful in informing cons umers and potentially educating consumers about the benefits of these vehicles. Through the res earch program, the agencies also investigated how the fuel economy labels might be designed so that consumers could easily compare the fuel economy, costs, and environmental impacts acro ss a range of vehicle technologies -- from conventional gasoline and diesel vehicles to electric and plug-in hybrid vehicles.

Focus groups also provided f eedback about various metrics which were intended to help a consumer compare a vehicle to other vehicles , as required by statute. In Phases 1 and 3, participants were shown not only ra ting scales such as a numerical or five stars system, but also a slider scale similar to the ba r that exists on the current fuel economy label for within-class comparisons, both of which the agencies believe d would meet the stat utory requirement to provide a rating system. The participants seem to be split into two camps: those that prefer the analytical detail of the value scal e, and those that prefer the simplic ity of a star-type rating scale.

For fuel economy and fuel consumption, Phas e 1 participants were shown two kinds of examples: one that compared vehicles only within their current fuel economy class, and one that showed both a within-class comparison and a comparison among all vehicles. These comparisons were shown using gallons per hundred mile values and miles per gallon values. The majority of participants preferred the metric that showed the subject vehicle as it compared to all vehicles and as it compared to its fuel economy class in units of miles per gallon.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 104 of 315 In Phase 2 most focus group participants said that they would like an effective way to compare among disparate vehicle t echnologies. Many settled on mile s per gallon equivalent as a comparative metric, but most did not know what the equivalency was based upon. In Phase 3, when comparing advanced technolo gy vehicles, most participants e ither used the MPGe value or the annual cost value to compare across vehicles. Some used the fuel economy rating systems that were provided. In general, the findings from the focus groups established no clear preference or approach for how to effectively communicate comparative vehicle information that would be useful to most consumers.

The expert panel disagreed that the focus group generated labels could be used effectively to compare across vehicle technologies -- especially to the level of information found on the advanced technology labels, which they de scribed as “scary” and “unfriendly.” They were clear to point out, however , that their issues were with the label design, and that they were not rejecting the information contained on the la bel. The expert panel stated that there are inherent differences in reviewi ng labels in a focus group compared to on a dealership lot, where you have, on average, very short viewing time. Th e expert panel suggested that processing this amount of information quickly would be challeng ing, which could lead many consumers to tune out the label completely. As mentioned above, the panel recommended th at the agencies roll up fuel economy, environmental impacts and cost information into a si ngle easily understood letter/grade approach that will be intuitive for mo st consumers. The grade could be used across all technologies providing consumers easy compar ative information. The expert panel allowed that the more complicated information could be ma de available in the bottom half of the label but argued that it would be crucial to retain a simple compelling comp arison in the top portion of the label. The panel also suggested including a comp arative metric that shows the potential savings from buying a more fuel efficient vehicle, as sa ving money historically has been a very strong motivator for consumers.

4. Effective Whole Label Designs

How should the new labels be designed to meet the statutory requirements while best raising consumers’ understanding of fuel efficiency, fuel co st and environmental impact?

In addition to the examination of individua l label elements described above, consumer research designed by EPA and NHTSA investigated the effects of various whole label designs on consumer comprehension and utilization, in order to test whether the labels would still be useful when all of the elements were put together. Th is inquiry is important because there is only so much space that information can occupy both on the label and in the consumer’s mind when standing on the dealer’s lot and c onfronted with so much other information. In order to provide sufficient information while ensuring that it re mains understandable for the greatest number of consumers, a balancing act is inevitable. The consumer research attemp ted to assess how best the balance could be struck, as disc ussed further below in Section III.

The expert panel offered very strong opini ons on what, given their experience, would make a label effective in engaging the public. They strongly recomme nded that the top portion of the label contain only one element – a “grade” that would combine as many of our requiredFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 105 of 315 metrics as possible. This information should be big, bold, and easy to process while walking around a dealership. The label space under the gr ade would be reserved for the specific information required in the statute or deemed important in focus groups and other market research. When the panel was presented with label designs that had multiple metrics, explanatory text, and gra phical icons, with no one element sta nding out, they felt that the labels were confusing and intimidating. The expert pa nel’s consensus view, af ter viewing the draft labels developed through the focus groups, was th at these labels would be daunting for most consumers to process, making them inclined to “tune out” even the most basic information. Their strongest recommendation: Keep it simple.

5. Tools beyond the Label

What purchase process do consumers curren tly use to make new vehicle purchasing decisions? Given this process, when are the mo st effective opportunities to communicate fuel economy and environmental information?

a. Vehicle Purchase Process

The vehicle purchase process is complex and iterative. There may be many opportunities to inform consumers about the fuel economy and e nvironmental impact of the vehicles they are considering. Although much of this proposal fo cuses on the actual fuel economy label, the agencies recognize that consumers seek out fu el economy and environmental information at other times in the purchase process beyond simply viewing the fuel econo my label on vehicles during visits to dealerships. In order to determine the most effective means to provide fuel economy and environmental information to consum ers, the agencies sou ght to better understand when and how consumers encounter or search fo r this type of information in their vehicle purchase decision-making process.

Information on this vehicle buying process was obtained in an on-line survey of focus group participants prior to the ac tual focus groups. In addition, at the start of each session, participants were asked to discuss their purch ase process so we coul d better understand the nuances associated with the responses we ha d received through the on- line survey. The pregroup online survey indicated that a majority of respondents already had a vehicle type in mind when they began the process. Consumers appear to narrow the spectrum from all available vehicles to the vehicle type or types they w ill research depending on their specific needs and interests. In general, the focus groups used br oad categories to describe vehicle groupings, such as SUVs, minivans, sport cars, truc ks, economy cars, and midsize cars. 158 For example, some focus group respondents said they na rrowed their search based on ve hicle cargo space, for others it was sedans, and for others it was SUVs and minivans.

According to the pre-focus group online survey and the focus groups themselves, a majority of the participants indicated that price/ affordability was one of th e top five factors that influenced their vehicle choice. Other key fact ors that influenced par ticipants’ vehicle choice included gas mileage/fuel economy, safety, reliabi lity, size, interior and exterior appearance,

158 These categories are not necessarily related to the current 14 EPA-designated classes of vehicles. Vehicle classes are described in 40 CFR 600.315-08.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 106 of 315 comfort, brand name and performance. The agenci es also reviewed existing literature on the factors that influence vehicle c hoice. For example, a 2009 survey of people between the ages of 18 and 30 (“Generation Y”) found gas mileage to be the top factor indicate d by participants as critical to vehicle purchasing deci sions, followed by affordability/price. 159 Both demographic and psychographic factors (e.g., ‘what a vehicle says about me’) also play a role in the vehicle purchase process. 160

At present however, environmental impacts are not top purchasing considerations for most consumers. Focus group participants i ndicated that environmental impacts were not a consideration in the type of the vehicle they purchase. Only a small fraction of the participants in the pre-group online survey considered “low emissions” to be key factor when making a vehicle purchase decision. This finding is also supported by the literatu re review. Consumer research indicates that although consumers have a growing interest in purchasing “greener” vehicles, environmental impact is not sufficient by itself for most consumers to be willing to pay a premium. 161

Another important aspect of the vehicle pur chase process is how consumers research vehicles. Two-thirds of the respondents to the pre-focus group online survey reported they had researched fuel economy prior to buying their vehi cle. Based on the available choices in the prefocus group survey, respondents reported ga thering fuel economy information from manufacturer websites, Consumer Reports, auto dealers, vehicle search websites, automobile magazines, others with similar vehicles, governme nt websites, television advertisements, and the Fuel Economy label itself. The literature review found that consumers increasingly research fuel economy information online. For example, traffic on the DOE and EPA web site www.fueleconomy.gov increased from 400,000 user sess ions in 1999 to more than 30 million in 2008. 162 Other Internet sources used to research vehicles during the pur chase process include consumer-to-consumer tools su ch as blogs and web forums. 163

Another finding from the literature review is that consumers are cl oser to purchasing a vehicle when they visit the dealersh ip than they were in the past. 164 This highlights the value of educational tools beyond the label to provide co nsumers with information on a vehicle’s fuel economy and environmental impact. Online tools may be particularly important. In addition to the Internet being a source of information for cons umers, online sales of cars have been steadily

159 Deloitte. “Connecting with Gen Y: Making the short list,” 2010, p.2. Available athttp://www.deloitte.com/assets/DcomUnitedStates/Local%20Assets/Documents/us_automotiv e_Deloitte%20Automotive%20Gen%20Y%20Executive%2 0Summary_0107.pdf (last accessed June 30, 2010).
160 EPA Fuel Economy Label Project Literature Review , Prepared by PRR, Inc, July 2010, p.23–30.
161 Ibid., p.7.
162 Greene, D.L., Gibson, R., and Hopson, J., “Reducing Oil Use and CO 2 Emissions by Informing Consumers’ Fuel Economy Decisions: The Role for Clean Cities,” prepared by Oak Ridge National Laboratory, Oak Ridge, TN, August 2009, p.1. Available at http://www1.eere.energy .gov/cleancities/pdfs/fuel_economy_strat_paper.pdf (last accessed June 30, 2010).
163 “EPA Fuel Economy Label Project: Literature Review,” Prepared by PRR Inc., July 2010, p.15–17.
164 Ibid., p.13.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 107 of 315 increasing in the U.S. in recent years (although they still represent a small percentage of total car sales). 165

b. Consumer Education

As described above, the vehicle purchase deci sion is not based entirely on the fuel economy label information, but is complex and ite rative, and messages pr esented in contexts beyond the label may be even more helpful in gett ing consumers the information they need about fuel economy, fuel cost, GHGs, and other emissions . Several resources maintained by EPA and DOE are already available to help consumers obt ain information about comparative vehicle fuel economy and environmental information, including www.fueleconomy.gov, 166 the Fuel Economy Guide, 167 and the Green Vehicle Guide. 168 In addition to the information sources and tools already available, under EISA, Congress requires NHTSA, in consultation with EPA and DOE, to develop a consumer education program to improve consumer understanding of automobile performance with regard to fu el economy, greenhouse gas and other emissions.

While this campaign is still in its very ear ly stages and is not the subject of this rulemaking, it will be investigating modificati ons to existing tools, new collaborations for information dissemination and, potentially, new fo rms of media utilizatio n in communicating the relationship of automobile performance to fuel economy and emissions. Particularly given the changes to the label that we an ticipate will result fr om this rulemaking, introducing consumers to the new information available to them and how it can be used as they cons ider their next vehicle purchase will be very important.

Since the vehicle purchase process is mu ltifaceted, EPA and NHTSA would like to better understand how various information tools beyond the label can provide critical fuel economy information to consumers. EPA and NHTSA especi ally seek to understand what additional types of consumer information and tools are most important and what le vel of individualized information is needed by consumers in the future.

There are a variety of existing education campaigns and resources to help enable consumers to make more fuel efficient and e nvironmentally friendly transportation choices. These include the Federal Highway Administration’s initiative “It All Adds Up to Cleaner Air, ” 169 the “Cleaner Cars for Maine” 170 program, and the “Drive Smarter Challenge” campaign. 171 Brief descriptions of these and other education campaigns are available in the literature review report. 172 Such campaigns may inform the agencies’ development of educational tools to help consumers make mo re informed vehicle purchasing decisions.

165 Deloitte. “A new era: Accelerating towa rd 2020 – An automotive industry transformed,” 2009, p.12. Available at http://www.deloitte.com/assets/Dcom-India/Lo cal%20Assets/Documents/A%20New%20Era%20- %20Auto%20Transformation%20Report_Onlin e.pdf (last accessed June 30, 2010).
166 http://www.fueleconomy.gov/
167 http://www.fueleconomy .gov/feg/feg2000.htm
168 http://www.epa.gov/greenvehicles/Index.do
169 See http://www.italla ddsup.gov (last accesse d June 30, 2010).
170 See http://www.maine.gov/dep /air/lev4me/index.html (las t accessed June 30, 2010).
171 See http://drivesmarterchallenge.org / (last accessed June 30, 2010).
172 EPA Fuel Economy Label Literature Review, Prepared by PRR, Inc, July 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 108 of 315 The agencies request comment on ideas for the most effective means to educate consumers about the new elements and metrics being proposed on the label. In addition, EPA and NHTSA request specific comment on what a dditional tools we could provide to increase consumer comprehension about complex adva nced technology vehicl es and automobile performance related to fuel economy and emi ssions. We are proposing that this campaign potentially include both traditional marketing m echanisms, such as brochures, public service advertisements, media placements, and dealersh ip-distributed checklists, along with more innovative approaches, which may include crowdsour cing with social media, interactive web site displays at dealerships that would allow consumers to “personalize” their fuel economy label, smart phone applications. In addition, per the recommendation of the expert panel, we are proposing to develop a web site that would be la unched in conjunction with the new label. This consumer-focused, user friendly web site would provide more specific information on the label, along with access to the tools, applications, social media, and materials mentioned above.

All messages and materials will be tailore d according to the method of communication and the target audience. EPA is requesting comment on effective messaging, materials, and methods of communication.

V. Implementation of the New Label

A. Timing

As previously noted, the agencies are proposing that the new label regulations initially take effect with the 2012 model year. Model ye ar 2012 vehicles can be introduced as early as January 2011, and in fact EPA has already heard fr om at least one manufacturer that plans such an early introduction. Given that this regulator y action is not scheduled to be finalized until December of 2010 and that it is possible, based on when the final rule is published in the Federal Register for the effective date of the new regulations to be a date in March of 2011, it is clear that not all of the 2012 model year can be captured by the proposed regulations. There may also be cases where a manufacturer prints label “blanks” early in the model year, even if they plan to introduce vehicles in the more t ypical time frame of late summer and early fall. Although the proposed regulations do not presume anything regard ing the date of finalization of the new label and only specify applicability to the 2012 model year, we expect that the fina l rule will have to take these issues into account.

The final rule will likely specify a date of a pplicability of the new regulations that is some date certain after publication of the fina l rule that would allow manufacturers adequate time to plan for and implement the new designs. We believe that a date on the order of 90-120 days after publication would be appropriate, wher e vehicles produced after that date would have to use the new label format. We would of course encourage the voluntary use of the new label to the greatest extent possible prio r to any specified absolute effective date. The agencies request comments on the appropriate timeframe for impl ementing these new label requirements. The agencies recognize that some of the potential changes in label design, including color graphics that would be printed at production run-time and di ffering footprints that necessitate redesign of the overall Monroney label may impact the amo unt of lead time required by manufacturers.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 109 of 315 While we believe that it is extrem ely important for the final label changes to take effect as soon as possible, we seek comment on these specific potential lead time issues.

To introduce the new label and ensure that the public understands the new information and format, the agencies plan to conduct ex tensive public outreach concurrent with the implementation of a final rule. We will provide information about the new label and how to use it via web-based information, fact sheets, and other communication methods. This information will be designed to explain all aspects of the new label.

B. Labels for 2011 model year advanced technology vehicles

The new fuel economy label will address adva nced technology vehicl es, such as EVs and PHEVs, which some manufacturers are planning to introduce into the U.S. market prior to the 2012 model year. EPA issued regulations in 2009 that provided EPA discretion to authorize appropriate changes to the current fuel economy label with individual manufacturers, specifically with respect to advanced technology. 173 These regulations are applicable until this rule is finalized.

To address labels for advanced technology vehicles introduced before this rule is finalized; EPA may allow any manuf acturer of such vehicles that will be introduced prior to the 2012 model year to use one of the co-proposed labe ls, or an alternative label that meets EPA’s approval. Manufacturers intending to introduce an advanced technology vehicle as a 2011 model year vehicle should meet with EPA to discuss th e details of actual implementation. For example, EPA would discuss with the manuf acturer the fact that the label format and information may only be used for the 2011 model year and may change for 2012 depending on the outcome of the final label regulations. EPA would also disc uss in conjunction w ith the Federal Trade Commission (FTC) what aspects of the label info rmation could be advertised and would also discuss with the manufacturer the details of speci fic test values used, such as mile per gallon equivalent, kW-hr per 100 miles, ble nded mode operation for a PHEV, etc.

C. Implementation of Label Content

Although much of the information presented on the label is determined from test data specific to the labeled vehicle or can be codified in the regulations, there are elements that will require annual (or in some cases, possibly less fr equent) information provided by EPA. This is no different from today’s label and the annual gu idance letter published by EPA that includes the fuel economy ranges for each class of automobile, the fuel price information to be used to calculate costs, and other relevant information. This informati on will have to continue to be provided by EPA on an annual basis, but the new ra tings proposed for the new labels will also require that EPA provide annually the range of fuel economy of all vehicles as well as the range of CO 2 emissions of all vehicles.

173 74 FR 61537, Nov 25, 2009.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 110 of 315 VI. Additional Related EPA Proposals

A. Electric and Plug-In Hybrid El ectric Vehicle Test Proced ures

1. Electric Vehicles

There currently is no federal test proce dure for measuring fuel economy for electric vehicles. EPA has periodically performed fuel econom y testing for electric ve hicles utilizing test procedures and protocols developed by the Society of Automotive Engineers (SAE), specifically J1634. Manufacturers may continue to use SAEJ 1634 test protocols, as cancelled in October 2002, with the exception of not using the C co efficient adjustment in paragraph 4.4.2. Until recently, there have been very few electric vehicles sold in the U.S. market. The few exceptions, such as the EV1 from General Mo tors (GM), were only made availa ble to a select few customers for a limited time. As such, there was not a pressing need for an electric ve hicle test procedure. However, with the imminent rel ease of several new battery electri c vehicles from manufacturers such as Ford and Nissan, the need for a federa l test procedure for measuring fuel economy or fuel consumption for electric vehicles is apparent.

Fuel economy estimates are measured for “city” and “highway” operation. Prior to the 2008 model year, all vehicles were fuel economy te sted over just two test cycles: the Federal Test Procedure (FTP or “city” test) and the Hi ghway Fuel Economy Test (HFET or “highway” test). In December, 2006, EPA published revision s to improve the calculation of fuel economy estimates to better reflect real world fuel economy performance 174 . These revisions included three additional chassis dynamo meter test cycles to the current FTP and HFET for fuel economy testing purposes. The three additional cycles were the US06, SC03, and the Cold Temperature FTP. Prior to the 2008 model year, all three test cycles were used for emissions purposes for either the Supplemental Federal Test Procedure (SFTP) emissions standards (US06 and SC03) or the cold temperature (20oF) emi ssion standards. Beginning in the 2008 model year, all vehicles tested for fuel economy labeling purposes had to use the new “5-cycle” fuel economy methodology which either required te sting all vehicles over the five test cycles discussed above or apply an equivalent 5-cycle correction referred to as the derived MPG- based approach. For alternative fueled vehicles, including electric vehicles, manufacturers ha ve the option for fuel economy testing to test their vehicle over all fi ve test cycles or us e a derived MPG-based approach

a. FTP or “City” Test

The procedure for testing and measuring fu el economy and vehicle driving range for electric vehicles is similar to the process used by the average consumer to calculate the fuel economy of their personal vehicle. The distan ce the vehicle can opera te until the battery is completely discharged and can no longer provide sufficient propulsive energy is measured and divided by the total amount of el ectrical energy necessary to fully recharge the battery, similar to refueling the gas tank of a gasoline powered vehicle.

174 71 FR 77931, Dec. 27, 2006.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 111 of 315 The first step of the procedure is to determ ine the distance the vehicle operates before the battery becomes fully discharged. This begins with the preconditioning of the vehicle. The electric vehicle is preconditioned per 40 CFR Part 86, Section 132. Following preconditioning, the Rechargeable Energy Storage System (RESS) will be brought to full charge. The RESS will remain plugged into the electrical source for a minimum of 12 hours. For the FTP or city test cycles, the chassis dynamometer procedures w ill be conducted pursuant to 40 CFR 86.135 with the exception that the vehicle will run consecutive test cycles until the vehicle is unable to maintain the FTP speed tolerances as expr essed in 40 CFR 86.115-78. To clarify, an FTP historically consisted of 2 Urban Dynamometer Driving Schedules. The Ftp was later shortened to one full UDDS and only the first bag or phase of the second UDDS. The second phase of the second UDDS was considered just a repeat of the second phase of the first UDDS. In the context of electric vehicles, an FTP is two full consecutive UDDS’s. If an electric vehicle cannot reach the FTP top speed, then the vehicle will term inate once the vehicle top speed cannot be maintained. For low powered electric vehicles that cannot reach the FTP top speed, the vehicle top speed is the maximum speed the vehicle reach ed during the first FTP. The Administrator may approve alternate end of test criteria. For low powered electric vehicles that by design cannot maintain the speed tolerances as e xpressed in 40 CFR 86.115-78, low powered vehicles, the vehicle will continue testing if the vehicle is operated at maximum powe r. This provision is intended to apply uniformly throughout all the consecutive FTP cycles. A vehicle that can maintain trace speed on the first FTP cannot th en be declared a low powered vehicle for proceeding FTP cycles. Upon reaching the end of test criteria, the distance driven shall be recorded and the vehicle decel erated to a stop. The second UDDS of any FTP cycle will be started 10 minutes after the cold start as per 86.135. Subsequent FTP cycles may require up to 30 minutes between starts due to test facility limitations. Between starts, the RESS is not to be charged. During the 10 minute or other longer so aks, the vehicle should have the hood closed and the cooling fans shut off. Measurement of DC watt-hours shall be taken for each phase of testing (2 bags or phases per UDDS).

The final stage of the electric vehicle test procedure is the measur ement of the electrical energy used to operate the vehicle. The end of te st recharging procedure is intended to return the RESS to the full charge equivalent of the pre te st conditions. Within three hours of completing the EV testing, the RESS should be brought to full charge. The vehicle will remain on charge for a minimum of 12 hours to a maximum of 36 hours. After reaching full charge and the minimum soak time of 12 hours has been reached, the ma nufacturer may physically disconnect the RESS from the grid. The alternating current (AC) wa tt-hours must be record ed throughout the charge time and soak time. It is important that the ve hicle soak conditions must not be violated. The measured AC watt-hours must include the efficien cy of the charger system. The measured AC watt hours are intended to reflect all applicable electricity consumption including charger losses, battery and vehicle conditioning during the recharge and soak, and the electricity consumption during the drive cycles. Finally, the raw electr icity consumption is calculated by dividing the recharge AC watt-hours by the distance traveled befo re the end of the test criteria is reached.

b. HFET or “Highway” Test

Similar to the FTP test procedure, the first step of the procedure is to determine the distance the vehicle operates before the battery b ecomes fully discharged. This begins with theFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 112 of 315 preconditioning of the vehicle. Vehicle precondi tioning is to be conducted as per 40 CFR Part 86, Section 132. Following preconditioning, the RESS will be brought to full charge. The RESS will remain plugged into the electrical source for a minimum of 12 hours. The vehicle may remain plugged into the electr ical source up to 36 hours.

Dynamometer procedures will be conducted pursuant to 40 CFR 600.111 with the exceptions that electric vehicles will run consecu tive cycles of the HFET until the end of test criteria is reached. Subsequent HFET cycle pairs may require up to 30 minutes of soak time between HFET cycle pairs due to facility limitati ons. If a pause between cycle pairs is required and exceeds 1 minute, the vehicle hood is to be cl osed and the cooling fans shut off. Between starts, the RESS is not to be charged.

If an electric vehicle cannot reach the HF ET top speed, then the vehicle will terminate once the vehicle top speed cannot be maintained. For low powered electric vehicles that cannot reach the HFET top speed, the vehicle top speed is the maximum speed the vehicle reached during the first HFET. The Administrator may approve alternate end of te st criteria. For low powered electric vehicles that by design cannot maintain the speed tolerances as expressed in 40 CFR 86.115-78, the vehicle will cont inue testing if the vehicle is operated at maximum power. This provision is intended to apply uniformly throughout all the consecutive HFET cycles. A vehicle that can maintain trace speed on the fi rst HFET cannot then be declared a low powered vehicle for proceeding HFET cycles.

Similar to the FTP test procedure, the fina l stage of the HFET te st procedure is the measurement of the electrical energy used to ope rate the vehicle. The end of test recharging procedure is intended to return the RESS to the fu ll charge equivalent of the pre test conditions. Within three hours of completing the EV testi ng, the RESS should be brought to full charge. The vehicle will remain on charge for a minimum of 12 hours to a maximum of 36 hours. After reaching full charge and the minimum soak tim e of 12 hours has been reached, the manufacturer may physically disconnect the RESS from the gri d. The alternating current (AC) watt-hours must be recorded throughout the charge time and so ak time. It is important that the vehicle soak conditions must not be vi olated. The measured AC watt-hours mu st include the efficiency of the charger system. The measured AC watt hours are intended to reflect all applicable electricity consumption including charger losses, battery and vehicle conditioning during the recharge and soak, and the electricity consumption during th e drive cycles. Finally, the raw electricity consumption is calculated by dividing the re charge AC watt-hours by the distance traveled before the end of the te st criteria is reached.

c. Other EV Test Procedures

The Administrator may approve or require equivale nt or additional EV test procedures including incorporating via referenc e SAEJ1634 published after this notice.

2. Plug-in Hybrid Electric Vehicles

a. PHEV Test Procedure RationaleFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 113 of 315 Test procedures for plug-in hybrid electric vehicles (PHEV) are required to quantify some operation unique to plug-in hybrids. The in tent in developing new PHEV test procedures is to use existing test cycles and test procedures where app licable. PHEV operation can be generally classified into two modes of operation, charge depl eting and charge sustaining operation. Charge depleting operation can be described as vehicle operation where the rechargeable energy storage system (RESS), commonl y batteries, is being de pleted of its “wall” charge. Charge sustaining operation is vehicle operation where th e RESS in not being depleted or charged more than could be expected due to regenerative braking or vehicle optimization beyond the limits specified by the Administrator. Charge sustaining operation can best be described as conventional hybrid operation. For the purposes of clarifi cation, charge depleting operation would include any operation not in cluded in charge sustaining operation.

New procedures for charge depleting operati on would consist of existing test cycles repeated until the PHEV RESS is depleted to char ge sustaining operation. Whereas in the past a conventional vehicle would be expected to co nsume fuel and emit emissions over repetitive identical test cycles consistent ly, the same cannot be said of PHEVs. PHEV fuel consumption, fuel mix, and emissions may change as the RESS is depleted. In order to accurately assess the emissions and fuel efficiency of a PHEV, the PHEV requires testing ov er the entire charge depleting range. Testing over th e entire charge depleting range requires new test provisions to address vehicle setup and prep, measuring and charging the RESS, operati on over repetitive test cycles, and calculating any new values that ar e now measured over repetitive test cycle.

Charge sustaining operation can best be desc ribed as “conventional” hybrid operation. EPA would continue to use ex isting hybrid electric vehicle te st procedures. The primary differences between HEV and other conventional vehicle testing are the need to monitor RESS state of charge and the extra drive time required to insure vehicle warm ope ration during the Federal Test Procedure. The RESS is measured and subject to the state of charge tolerances, below, to insure all energy is accurately accoun ted. The fully warm operation is satisfied by running a full 4 phase Ftp instead of the abbrev iated 3 phase Ftp as tr aditionally used for conventional vehicle testing.

For the purposes of fuel economy label testing, PHEVs would be subject to the same test cycles as other light duty vehicl es with a few exceptions. While operating in charge depleting mode, a PHEV is using electricity originally from an off board s ource. This is to say that a PHEV is operating at least part ially on an alternative fuel while operating in charge depleting mode. For the purposes of fuel economy, PHEVs could continue to use the derived 5-cycle adjustment while in charge depleting mode. The derived 5-cycle adjustment would be applied to the total city and tota l highway fuel econom ies separately. For the purposes of applying the 5- cycle correction, the total fuel economies in charge depleting mode include both of the fuels consumed, typically gas and electricity, as expres sed in a miles per gallon of gasoline equivalent unit. The 5-cycle correction is to be applied to the combined energy of each mode of operation even if the energy consumption is ultimately fuel specific. Applying a co rrection to the gasoline and electricity consumption separately could lead to a smaller adjustment than other vehicles since the 5-cycle correction is not linear. Wh ile in charge sustain mode, PHEVs would be subject to the same test procedures as conventional hybrid electric vehicles.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 114 of 315 PHEVs must meet all applicable emissions stan dards regardless of RESS state of charge. EPA will consider a RESS as an adjustable paramete r for the sake of emissi ons testing. It is the manufacturer’s responsibility to insure vehicles are emissions co mpliant. EPA typically allows good engineering judgment in applying worse case em ission testing criteria. For the purposes of certification compliance, EPA will consider charge sustain operation as worse case. EPA may confirmatory test or request the manufacturer to pr ovide test data for any te st cycle at any state of charge. Evaluation of fuel economy testing em issions may be used to change worse case emissions assumptions.

b. PHEV Test Procedure and Calculations

The EPA intends to incorporate by refe rence SAEJ1711, in part, for PHEV test procedures.

Charge Depleting Operation – FTP or “City” Test and HFET or “Highway” Test

The EPA intends to incorporate by referen ce SAEJ1711 chapters 3 and 4 for definitions and test procedures, respectively, where appr opriate, with the following exceptions and clarifications.

Test cycles will continue until the end of the phase in which charge sustain operation is confirmed. Charge sustain operatio n is confirmed when one or more phases or cycles satisfy the Net Energy Change requirements below. Op tionally, a manufacturer may terminate charge deplete testing before charge sustain operation is confirmed pr ovided that the RESS has a higher SOC at charge deplete testing termination than in charge sustain operation. In the case of Plug In Hybrid Electric Vehicles with an all electric rang e, engine start time will be recorded but the test does not necessarily terminate with engine start. PHEVs with all electric operation follow the same test termination criteria as blended mode PHEVs. Testing can only be terminated at the end of a test cycle. The Administrator ma y approve alternate e nd of test criteria.

For the purposes of charge depleting CO2 and fuel economy testing, manufacturers may elect to report one measurement per phase (one bag per UDDS). Exhaust emissions need not be reported or measured in phase s the engine does not operate.

End of test recharging pro cedure is intended to return the RESS to a full charge equivalent to pre test conditions. The recharge AC watt hours must be recorded throughout the charge time and soak time. Vehicle soak condi tions must not be violated. The AC watt hours must include the charger efficiency. The meas ured AC watt hours are intended to reflect all applicable electricity consumption including ch arger losses, battery and vehicle conditioning during the recharge and soak, and the electricity consump tion during the drive cycles.

Net Energy Change Tolerance, NEC, is to be ap plied to the RESS to confirm charge sustaining operation. The EPA intends to adopt the 1% of fuel energy NEC state of charge criteria as expressed in SAEJ1711. The Administrator may a pprove alternate NEC tolerances and state of charge correction factors.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 115 of 315 Hybrid Charge Sustaining Operation – FTP or “City” Test and HFET or “Highway” Test

The EPA intends to incorporate by referen ce SAEJ1711 chapters 3 and 4 for definitions and test procedures, respectively, where appr opriate, with the following exceptions and clarifications.

The EPA intends to adopt the 1% of fuel ener gy NEC state of charge criteria as expressed in SAEJ1711. The Administrator may approve alte rnate NEC tolerances and state of charge correction factors.

Preconditioning special procedures are optional fo r traditional “warm” te st cycles that are now required to test starting at full RESS charge due to charge depleting range testing. If the vehicle is equipped with a char ge sustain switch, the preconditi oning cycle may be conducted per 600.111 provided that the RESS is not charged. Exhaust emissions are not taken in preconditioning drives. Alternate vehicle wa rm up strategies may be approved by the Administrator.

Charge Depleting Range Determination

Actual Charge Depleting Range (R CDA ) will be a calculated value that uses the charge sustaining state of charge of the RESS to define the R CDA endpoint. Due to the nature of PHEVs, R CDA will require calculation and is not necessarily when the engine first starts. Defining R CDA using only engine on could leave PHEVs with three modes of operation. These three modes would be charge depletion, charge regeneration, and charge sustai ning. If the regeneration of the RESS from the engine is not accounted for in the charge depleting mode, the RESS could be deep cycled beyond the CS SOC to gain range wh ile the increase in CO2 emissions due to the RESS regeneration would not be captured in the charge sustaining testing.

Calculation of R CDA will require monitoring the RESS SOC throughout charge depleting testing. The R CDA for each cycle would be the driven cycl e distance from start of CD testing until the charge sustaining SOC is “crossed”. The EPA intends on incorporating by reference the SAEJ1711 calculation for Actual Charge Depleting Range.

c. Other Test Cycles

PHEV and Electric vehicle testing over the SC03, US06, or Cold CO test cycles would follow the same general procedure as the FTP and HFED. EPA would consider the use of alternate or equivalent PHEV test proce dures and may incorporate by reference SAEJ1711.

d. Test Tolerances

State of Charge tolerance correction factors may be approved by the Administrator. RESS state of charge tolerances beyond the 1% of fu el energy may be approved by the Administrator.

e. Mileage and Service AccumulationFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 116 of 315 The EPA is seeking comment on modifying the minimum and maximum allowable test vehicle accumulated mileage for both EVs and PHEV s. Due to the natu re of PHEV and EV operation, testing may require many more vehi cle miles than conventional vehicles. Furthermore, EVs and PHEVs either do not have engines or may use the engine for only a fraction of the miles driven.

f. Test Fuels

Electric Vehicles and PHEVs are to be recharged using the supplied manufacturer method provided that the methods are available to consumers. This method could include the electricity service requirements such as service amperage, volta ge, and phase. Manufacturers may employ the use of voltage regulators in order to reduce test to test variability with prior Administrator approval.

B. Utility Factors

1. Utility Factor Background

Utility Factors are a method of combining CO 2 emissions, fuel consumption, or other metrics from multiple modes of oper ation into one value. The exte nt to which utility factors are used on a fuel economy label is completely depe ndent upon label format. That is to say, some PHEV label formats may not require utility factors at all or possibly only for CO 2. This discussion on utility factor is required to understa nd the different PHEV label formats within this proposal.

As discussed previously, PHEVs can use tw o types of energy s ources: (1) an onboard battery charged by plugging the ve hicle into the electrical grid possibly via a conventional wall outlet to power an electric motor, as well as (2 ) a gas or diesel-powered engine to propel the vehicle or power a generator used to provide electricity to the electric motor. Depending on how these vehicles are operated, they can use electric ity exclusively, never use electricity and operate like a conventional hybrid, or operate in some comb ination of these two modes. This can make it difficult to estimate fuel economy, fuel consumption, annual cost, or CO 2 emissions these vehicles.

The EPA has worked closely with stakehol ders including vehicle manufacturers, the Society of Automotive Engineers (SAE), the St ate of California, the Department of Energy (DOE), and others to develop an approach fo r estimating fuel economy, fuel consumption, cost, CO 2 emission, or any other metric for vehicles that can operate using more than one energy source. EPA believes the appropriate method for combining the operation of vehicles that can operate with more than one fuel would be a weig hted average of the appropriate metric for the two modes of operation. A met hodology developed by SAE and DOE to predict the fractions of total distance driven in each mode of operati on (electricity and gas) uses a term known as a utility factor (UF). UF’s were developed usi ng data from the 2001 Department of Transportation “National Household Travel Survey”. A detailed method of UF development can be found in the Society of Automotive Engineers (SAE) J2841 “Utili ty Factor Definitions for Plug-In Hybrid Electric Vehicles Using Travel Su rvey Data”. At the time of th is proposal, SAEJ2841 was in the process of balloting prior to publishing. SAE reference documents can be obtained atFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 117 of 315 www.SAE.org . By using a utility factor, it is possibl e to determine a weighted average of the electric and gasoline modes. For example, a UF of 0.8 would indicate that a PHEV operates in an all electric mode 80% of the time and uses th e gasoline engine the other 20% of the time. In this example, the weighted average fuel economy value would be influenced more by the electrical operation than the gasoline operation.

For the purposes of PHEVs, UF developm ent makes several assumptions. These assumptions may be changed by the Administ rator with the emergence of new data. Assumptions include: the first mode of operation is always electric assist or all electric drive, vehicles will be charged once per day, and that future PHEV drivers will follow drive patterns exhibited by the drivers in the surveys used in SAEJ2841.

2. General Application of Utility Factors

While acknowledging the assumptions above, a UF could be assigned to each successive test or phase of testing until the battery charge was depleted to the point where the PHEV sole source of power was from the gasoline or diesel engine. One minus the sum of all the utility factors would then represent the fr action of driving performed in this “gasoline or diesel mode.” Carbon dioxide emissions coul d then be expressed as:

Equation VI.B.2-1

Where: Y
m is the Utility Factor averaged mass of carbon dioxide for a specific drive cycle. Y i are the C0 2 mass emissions or C0 2 equivalent mass emissions for each phase or test cycle. For elec tricity, a carbon dioxide equivalent may be used as determined by the Administrator. Y
cs is the charge sustain carbon dioxide mass emissions and for hybrids in the case of the FT P can be expressed as Y
cs = 0.43* Y
c + 0.57* Y H. , where Y
c is the charge sustain cold start test and Y H is the charge sustain hot start ma ss emissions of carbon dioxide. UF i is the driving cycle and sequentially specific utility factor.

Likewise, the electrical consumption woul d be expressed by adding the electricity consumption from each mode. Since there is no electrical consumption in hybrid mode, the equation for electricity consum ption would be as follows:

Equation VI.B.2-2 

# ∑ ×= i

ii m 

## EUF E 1 

## )( CS i

i i
ii m 

## YUF YUF Y ×−+×= 

# ∑ ∑ )1()(

1 1Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 118 of 315 Where E

m is the utility fact or averaged electricity consumption, E i is the electricity consumption proportioned to each successive drive cycle, and UF i is the driving cycle and sequent ially specific utility factor.

3. Calculating combined values us ing Cycle Specif ic Utility Factors

Utility factors could be cycle specific not onl y due to different battery ranges on different test cycles but also due to the fact that “highw ay” type driving may impl y longer trips than urban driving. This would lead to different utility factors for urban and highway driving. The following section explains the EPA proposal of assi gning a utility factor to each successive phase or test cycle performed in char ge depleting or “PHEV” mode.

Utility factors can be assigned to each mode of operation according to the distance driven in each mode. Rather than calculating a unique UF for each cycle based on measure distance driven, UF’s will be assigned to each successi ve phase of consecutive Urban Dynamometer Driving Schedules, and each successive Hi ghway Fuel Economy Driving schedule of consecutive HFEDs. Combined city and combin ed highway C02 will first be calculated using test results and UFs from the respective cycles. Final combined values will then be an averaged 55% city and 45% highway value. The proposed cycle specific utility factors for UDDS or “city” driving are pr ovided in Table VI.B.2-1 and the proposed cycle spec ific utility factors for HFEDS or “highway” driving are provided in Table VI.B.2-2. The met hod used to develop cycle specific utility factors can be found in SAEJ2841. Finally, example CO 2 calculations are provided below.

Table VI.B.2-1 FTP Phase Specific Utility Factors Urban Driving, “City”

Phase Distance, mi Cumulative UF UF
1 3.59 0.125 0.125 2 7.45 0.243 0.118 3 11.04 0.340 0.096 4 14.9 0.431 0.091 5 18.49 0.505 0.074 6 22.35 0.575 0.070 7 25.94 0.632 0.057 8 29.8 0.685 0.054 9 33.39 0.729 0.044 10 37.25 0.770 0.041 11 40.84 0.803 0.033 12 44.7 0.834 0.031 13 48.29 0.859 0.025 14 52.15 0.882 0.023 15 55.74 0.900 0.018Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 119 of 315 16 59.6 0.917 0.017

Table VI.B.2-2 HFED Cycle Specific Utility Factors Highway Driving

HFEDS Distance, mi Cumulative UF UF
1 10.3 0.125 0.125 2 20.6 0.252 0.127 3 30.9 0.378 0.126 4 41.2 0.500 0.121 5 51.5 0.610 0.111 6 61.8 0.707 0.097 7 72.1 0.787 0.080

Example CO 2 Calculations

A PHEV was tested with the following resu lts. The example PHEV operated over four consecutive UDDS to quantify ch arge depleting or “PHEV” m ode and ran the required bag hybrid UDDS test to represent char ge sustaining or “hybrid” mode.

Table VI.B.2-3 Charge Depleting Example CO 2 Emissions

UDDS Bag Cycle Miles CO2 g/mi CO2
g Dc Integrated Amp Hrs Proportioned W hrs Measured Distance, mi UF Whr/mi 1 1 3.59 50.0 180.5 4 705.88 3.61 0.125 195.5 1 2 7.45 35.0 134.8 3.8 670.59 3.85 0.118 174.2 2 3 11.04 30.0 107.4 3.7 652.94 3.58 0.096 182.4 2 4 14.9 37.0 143.2 3.5 617.65 3.87 0.091 159.6 3 5 18.49 55.7 198.3 2 352.94 3.56 0.074 99.1 3 6 22.35 232.5 902.2 0 0 3.88 0.07 0.0 4 7 25.94 249.2 877.3 0 0 3.52 0.057 0.0 4 8 29.8 230.0 897.0 0 0 3.90 0.054 0.0

Table VI.B.2-4 Charge Sustaining Example CO 2 Emissions

UDDS Bag Cycle Miles CO2 g/mi CO2 g Measured Distance, mi
1 1 3.59 251.4 910 3.62 1 2 7.45 233.8 900 3.85 2 3 11.04 251.4 890 3.54 2 4 14.9 228.1 885 3.88

Applying the above data for the example PHEV to the General UF formula in Equation VI.B.2-1 using Table VI.B.2-1 will yield the Ci ty CO2 value. Ym=50 CO2 g/mi x 0.125+ 35Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 120 of 315 CO2 g/mi x 0.118 + 30g CO2 g/mi + 0.096 + 37g CO2 g/mi x 0.091+ 55.7 CO2 g/mi x 0.074 + 232.5 CO2 g/mi + 0.070 + 249.2 CO2 g/mi x 0.057 + 230 CO2 g/mi x 0.054 + (1- (0.125+0.118+0.096+0.091+0.074+0.070+0.057+0.054) x (Ycs). Where Ycs = 0.43 x (910+900)/(3.62+3.85) + 0.57 x ( 890+885)/(3.54+3.88) = 241g CO2 g/mi. The total CO2 g/mi, Ym, excluding any electricity CO2 e quivalence would then be 139 g/mi.

To determine electricity consumption one woul d apply utility factors in a similar fashion using equation VI.B.2-2 and Table VI.B.2- 1. Em= 195.5 W hr/mi x 0.125+ 174.2 W hr/mi x 0.118 + 182.4 W hr/mi + 0.096 + 159.6 W hr/mi x 0.091+ 99.1 W hr/mi x 0.074 = 84.4 W hr/mi

The combined CO2 from engine operation and the CO2 from the electrical consumption could be calculated by summing the two values , given a CO2 equivalenc y for electricity. For example, if the Watt hour CO2 equivalent was 0.26g CO2 per Watt hour, the total CO2 emissions could then be expressed as the sum of the if the CO2 and CO2 equivalent emissions from both modes of operation. From the exampl e above, the overall CO2 emissions would be 139 gCO2 per mile + (84.4 Whr/mi) 22gCO2 equiv per mile = 161g CO2 per mile.

Utility factors can also be used to calcul ate a miles per gallon equivalent measurement similar to the CO2 example above. Additiona l assumptions are required, however, when applying utility factors to a Corporate Aver age Fuel Economy and possibly a fuel economy labeling miles per gallon of ga soline equivalent measure.

Previously, when calculating PHEV CO2 emi ssions, the CO2 emissions where part of a manufacturer fleet average. The same is true of Corporate Average Fuel Economy. CAFE is a fleet average. Except where explicitly noted fo r dual fueled vehicles, both CAFÉ and CO2 fleet calculations would use the cycle sp ecific fleet utility factors. Fo r the purposes of a possible label fuel economy, a fleet average is not the aim, but rather what the average driver would likely experience or expect. For this reason, the EPA is proposing the use of the cycle specific Multiday Individual Utility Factors. The individu al utility factors do not weight vehicle miles traveled towards the longer trip s like fleet utility factors. For a detailed explanat ion on utility factor development see SAEJ2841.

Similar to determining a total CO2 emissions value for PHEVs, calculating a miles per gallon total for PHEVs w ill require an electricity to gasolin e conversion. This miles per gallon equivalent of gasoline would be calculated diffe rently for CAFÉ and label. For a FE label number, EPA would use a miles per gallon of gasolin e equivalent energy fact or for electricity of 33,705 watt hours per gallon. 175 This same gasoline equivalency would be used for CAFÉ calculation, if the PHEV did not meet the mi nimum distance requirements of a dual fueled vehicle. 176 If the PHEV met the dual fuel range minimu ms for electricity a Petroleum Equivalency Factor would be used instead of the gasoline equivalent energy fa ctor. For a PHEV without fuel fired accessories, the PEF would be 82,049 watt hours per gallon of gasoline. For details on PEF and gasoline equivalent energy content s ee FR Vol.65 No113. Using the procedure for

175 65 FR 36990, June 12, 2000.
176 49 U.S.C. 32901(c) and 49 CFR 538.5 Minimum Driving Range.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 121 of 315 calculating a dual fueled vehicle FE for CAFÉ the fuel economy of bot h modes of operation would be harmonically averaged 50/50 and a utility factor would not be necessary. 177

4. Low Powered Vehicles.

Vehicles using the low powered vehicle provision in 40 CFR 86.115-78(b)(4) shall use the actual distance driven in calculating cycle speci fic utility factors. The coefficients used in determining UF shall be as follows in table VI.B.2-5

Table VI.B.2-5 City/Highway Specific Utility Factor Coefficients City Hwy norm_dist 399 399 C1 14.86 4.80 C2 2.97 13.00 C3 -84.05 -65.00 C4 153.70 120.00 C5 -43.59 -100.00 C6 -96.94 31.00 C7 14.47 C8 91.70 C9 -46.36

Equation VI.B.2-5

Where nd is the normalized distance, k is th e coefficient, d is distance driven in each cycle or phase, and i is each cycle or phase.

The calculated cycle specific utility factors fo r low powered vehicles would be applied in the same manner as paragraph B.3, except that th e utility factors would be calculated based on measured distance and not assigned based on phase or cycle distance.

C. Comparable Class Categories

EPCA requires that the label in clude the range of fuel economy of com parable vehicles of all manufacturers. 178 EPA’s comparable class structur e provides a basis for comparing a vehicle’s fuel economy to that of other vehicles in its class. 179 The definitions of vehicle classes were last revised by EPA’s 2006 la beling final rule. That action finalized two specific changes to the vehicle class structure. Separate new cl asses were added for sport utility vehicles (SUVs)

177 49 U.S.C. 32905(b).
178 49 U.S.C. 32908(b)(1)(C).
179 40 CFR 600.315-08. 

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Page 122 of 315 and minivans (these were previ ously included in the Special Pur pose Vehicle category), and the weight limit for Small Pickup Trucks was in creased from 4,500 pounds gross vehicle weight rating (GVWR) to 6,000 pounds GVWR. These we re non-controversial changes that were generally seen as a move to keep the class st ructure as current as pos sible given the changing vehicle market. The resulting stru cture is one that contains ni ne car categories, five truck categories, and a “special purpose vehicle” categ ory. It should also be noted that the EPAdefined vehicle classes are used only to provide consumer info rmation about fuel economy and serve no other regulatory purpose.

EPA is proposing one modification to the cl ass categories. Consistent with the distinction currently made between small and large pickup trucks, EPA is proposing to divide the SUV class into small and large SUVs. We do not be lieve that it is appropriate, for example, to include a Toyota RAV4 in the same class as a Toyota Sequoia, or a Ford Escape in the same class as a Ford Expedition. The single SUV cat egory currently described in the regulations would be replaced by the two following proposed categories:

• Small sport utility vehicles: Sport utility vehicles with a gr oss vehicle weight rating less than 6,000 pounds.

• Standard sport utility vehicl es: Sport utility vehicles w ith a gross vehicle weight rating of 6,000 pounds up to 10,000 pounds. Although the standard pickup truck class only goes up to 8,500 pounds GVWR, SUVs between 8,500 and 10,000 pounds GVWR are defined as medium -duty passenger vehicles, and they will be subject to fuel economy la beling starting with the 2011 model year. EPA requests comment on whether this is an appropriate way to distinguish the SUV classes.

Although EPA received many comments on the 2006 rule regarding the class structure, some of its inherent problems, and how people ma y or may not shop within classes, there were no specific suggestions on how to revise the struct ure to resolve the issues that were raised. We believe that with the refinement to the SUV category we are proposing, the comparable class structure would generally represen t the physical distinctions between vehicle types offered in the fleet today. However, there may be other distin ctions between vehicles not captured in these categories, such as the luxury vehicl e segment. The DOE/EPA web site ( www.fueleconomy.gov ) incorporates vehicle cost into th e sedan category, for example, dividing sedans into “family,” “upscale, ” and “luxury.” EPA requests comment on incorporating such an approach into the comparable class categories, and specifically, how it might be done given the changing nature of vehicles and vehicle prices. We welcome interested parties to continue working with EPA in the future on how to ensure that the comparable classes are kept current with the dynamic vehicle fleet. If it becomes n ecessary in the future to further modify the comparable class structure, EPA would do so through a rulemaking. EPA requests general comments on the proposed modifications to compar able classes, and also welcomes comments on other possible ways to classi fy vehicles for comparison purposes. Comments should address how the classifications will be useful fo r the consumer who is comparison shopping.

D. Using Smart Phone QR Codes to Link to Fuel Economy Information

For all the label designs bei ng considered, EPA is proposing that m anufacturers place a QR CodeTM on the label that will link the web br owser of a properly configured smart phone toFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 123 of 315 the mobile version of the EPA/DOE fuel economy information web site, or alternatively, to the vehicle-specific information lo cated on the EPA/DOE website. 180 (Note that although the proposed Label 1 design incorporates a different website URL, the intent would remain the same: to use the QR Code to di rectly link the users smart phone to vehicle-specific information while providing additional tools for making ve hicle comparisons, learning more about the vehicle, etc.) Many focus group participants expr essed excitement and inte rest in the prospects of being able to access information in this way us ing their mobile devices, and EPA believes it is a potentially useful and valuable tool for consumers.

QR Codes, like other two-dimensional bar code s, are simply used to store information. QR Codes were originally developed for use in tracking parts in vehi cle manufacturing, and are now being used for other purposes, such as storin g a web site URL into an encoded graphic that can be scanned. These codes – the use of which is growing in popularity in the U.S. – are twodimensional black and white codes (like a bar code ) that eliminate the need to type a web link into a mobile phone (an action that can be cumber some and that many mobile users might prefer avoiding). Reading a QR Code requires that scanning software be installed on the mobile phone. Many smart phone manufacturers have begun to pre-in stall QR Code readers, but for those that do not, the readers are very easy to download, a nd many are available for free for nearly every type of mobile device. Once equipped with the correct scanning application, consumers can point and scan to instantly connect to information th ey actually want, versus information pushed to them.

For example, scanning the proposed code would link the phone’s web browser to the mobile version of the DOE/EPA website. At that point the user could view additional information about the efficiency and environmen tal impacts of the vehicle, with available options such as creating customized estimates ba sed on the user’s personal driving habits and distances. The user could also look up other vehi cles and compare those to the vehicle they are viewing.

EPA is proposing that the manufacturer place one of two QR Codes on the fuel economy label. These QR Codes would be determined ba sed on an international st andard that would be incorporated by referenc e in the regulations. 181 The default option would be to insert the QR Code that would take the user’s web browser to the mobile version of the DOE/EPA fuel economy information web site. The QR Code for this site, including the text that EPA proposes accompanies it, would look like this:

Smartphone Interactive Scan QR Code for more information about this vehicle, to get customized estimates, or to compare it with other vehicles.

180 The term QR Code is a registered trademark of Denso Wave Incorporated, which owns the patent rights to the QR Code. However, the patent right is not exercised, allowing the specification of the QR Code to be disclosed and open for widespread use. For more information, see http://www.denso-wave.com/en/adcd/index.html

. 181 International Organization for Standardization, ISO/IEC 18004:2006, Information technology – automatic identification and data capture techniques – QR Code 2005 bar code symbology specification, August 31, 2006.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 124 of 315 Alternatively and preferably, th e manufacturer would use the QR Code that represents the URL where information for the specific labeled vehicl e is available. However, this would depend upon resolving some specific data issues. For example, the manufacturer would have to know the vehicle-specific URL at the time the label is pr inted. This could require that EPA issue more frequent updates to the web site throughout the year, or that EPA assign a vehicle identification early in the process. It may be the case that even if the vehicle is not yet included on the DOE/EPA web site that a URL, and thus a QR Code, could be easily assigned or determined. EPA is confident that we can work with DOE to resolve any potential implementation issues prior to the 2012 model year.

E. Fuel Economy Information in the context of th e “Monroney” Sticker

As noted in Section VIII, the Automobile Information Disclosure Act (AIDA) requires the affixing of a retail price sticker to the windshield or si de window of new automobiles indicating the Manufacturer's Sugge sted Retail Price of the vehi cle and other required vehicle information. AIDA is more commonly known as the Monroney Act (Senator Mike Monroney was the chief sponsor of AIDA) or Price Sticker Act. See 15 U.S.C. 1231-1233. This sticker is commonly called the “Monroney” label. EPCA stat es that EPA “may allow” a manufacturer to comply with the EPCA labeling requirements by placing the fuel economy information on the label required by AIDA, a practi ce that has been used by most manufacturers. See 49 U.S.C. 32908(b)(2). In fact, EPA regulations express a specific preference that manufacturers do this, “provided that the prominence and legibility of the fuel economy label is maintained.” See 40 CFR 600.306-08(c).

In the third phase of focus groups we had par ticipants consider the placement of the fuel economy on the Monroney label, and whether par ticipants had a specific preference for where to locate the fuel economy information. Although part icipants expressed a variety of opinions, a slight preference emerged for displaying the fu el economy information in the upper right portion of the Monroney label.

The agencies recognize that EPCA does not re quire that the fuel economy information be on the Monroney label, and that there are inst ances when auto manufacturers may want to display the fuel economy information separate ly (e.g., if window space is limited on a small vehicle and the Monroney label size needs to be reduced). EPA does not intend to preclude the option of placing the new label in any appropriate and prominent location on the vehicle. However, the agencies request comment on whet her we should require that the fuel economy information be placed in a specific location on the Monroney label (such as the upper right corner, or on the right side) as a condition of allowing the information to be included on that label. 182 Although consumer preference for a speci fic location on the Monroney was vague, the agencies believe that consumers would be able to locate the new label information on the vehicle more easily if it appeared in a consiste nt location within th e Monroney sticker.

182 Based on 49 U.S.C. 32908(b)(2 ), EPA currently conditions placement of the fuel economy label in the Monroney label on a general requirement that the prominence and legibility of the label be maintained. EPA is inviting comment on expand ing the conditions for placement in the Mo nroney label through addition of more specific requirements related to the location of the fuel economy label in the Monroney label.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 125 of 315 The agencies also seek comment concerning the potential for the new label information to create confusion about other information foun d on the Monroney Label, in particular, the star safety ratings. Specifically, the agencies se ek comment on whether consumers might interpret the large letter grade on Label 1 as applying to ot her aspects of the vehi cle’s performance (such as safety) besides fuel economy and environmental impacts. To mitigate this concern, the agencies have created a prominent black bor der and title indicati ng the purpose of the information. Nevertheless the agencies seek co mment on whether addition al measures should be required under 32908(b) and (g) to ad dress this potent ial confusion.

The agencies also seek comment on whether th e co-proposed labels, in particular Label 1 with its use of color and large font for the overall letter grad e, might inadvertently distract consumers from the black-and-white star safety rati ngs. As one way of addressing this potential issue, NHTSA proposes to require under 49 CFR 575.301 that the star safety ratings be located as close as physically possible to the new fuel economy and envi ronmental label to help ensure that the star safety ratings do not get “lost” on the Monroney Label. Similarly, the agencies seek comment on whether their regulations for the ne w fuel economy and environmental label should require that it be located as close as physically possible to the star safety ratings.

Another way of addressing th is potential issue is by re-visiting the minimum size requirements for the safety rating label and the font of information on it. In a final rule 183 implementing the requirement in the Safe, A ccountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) for placing safety rating information on the Monroney vehicle price label, the agency interpre ted that Act’s specifi cation of a minimum size for the label as indicating the agency did not have any disc retion regarding minimum size, instead of interpreting the specification as merely establishing a floor on the discretion of the agency to specify a minimum size. In comments made in response to a subsequent proposal 184 to place an overall safety rating on the safety rati ng label, the Advocates for Highway and Auto Safety questioned that interpreta tion. In a recent meeting with Bosch, representatives of that company also questioned that interpretation. In li ght of the issues in this rulemaking and those questions, the agency is re-e xamining that interpretation.

F. Miscellaneous Amendments and Corrections

EPA is also proposing a num ber of non-controversial amendm ents and corrections to the existing regulations.

First, we are making a number of corrections to the recently finalized regulations for controlling automobile greenhouse gas emissions. 185 These changes include correcting typographical errors, correcting some incorrec t regulatory references, and some simple clarifications.

183 71 FR 53572, 53576, September 12, 2006.
184 75 FR 10740, March 9, 2010.
185 75 FR 25324, May 7, 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 126 of 315 Second, we are correcting an oversight fr om the 2006 labeling rule regarding the applicability of testing require ments to independent commercial importers (ICIs). Currently several vehicle categorie s (dedicated alternative fuel, dual fuel while operating on alternative fuel, and MDPVs) are exempted from having to perform full 5-cycle fuel economy testing. These categories are allowed to use the “derived 5-cycle” method, whereas other vehicles must use data from all five test cycles at certificati on to perform an evaluation that determines whether the test group can use the derived 5-cycle met hod or whether they must complete full 5-cycle testing. The reason for exempting these vehicles is that the evaluation requ ired at certification requires the use of all 5 cycles as run for emissions certifica tion, but these categories are not subject to the SFTP requirements, and thus such vehicles do not perform two of the five test procedures (the US06 high speed/acceleration test and the SC03 air conditioning test). Thus when EPA finalized the 2006 label rule we recognized that these categories would not have the data required to perform the certification evalua tion, and we decided to exempt them from five cycle testing. However, this same exemption shoul d have been applied to ICIs. Like the vehicle categories noted above, vehicles imported by ICIs are not required to pe rform the SFTP emission tests, and thus also won’t have the necessary data to perform the 5-cycle certification evaluation. Therefore, we are proposing to extend the allowance to use the derived 5-cycle method to ICIs.

VII. Projected Impacts Of The Proposed Requirements

Vehicle m anufacturers have been required to provide fuel economy labels on vehicles since 1977. The costs and benefits of label revisions would be thos e associated with changes to the current label, not the costs and benefits asso ciated with production of the label itself. The change in cost from this proposed rule comes in the physical revisions to the label itself and the possible efficiencies achieved by meeting EPCA a nd EISA labeling requirements in one label, as well as proposed modified vehicle testing procedures. The benefits of the rule come from providing labels for mass-market advanced technology vehicles for the first time, and from any improvements in the effectiveness of labels for conventional vehicles in providing accurate and useful consumer information on fuel cons umption and environmental performance.

A. Costs Associated with this Rule

Testing requirements for vehi cles are not new. Advanced technology and alternative fuel vehicles have been required to undergo test ing requirements in the past. For advanced technology vehicles, though, the test procedures have not previous ly been standardized; they have been handled on a case-by-case basis. Because EPA expects more advanced technology vehicles to come to market, we propose to codify testing procedures in a public process and are requesting comment on them. See section VI of th is preamble. The testing costs described here therefore are not really new costs for manufacturers, since they w ould have to test the vehicles even in the absence of this rule. The cost estimates are provided here because they have previously not been presented, and EPA seeks co mment on the analysis of costs presented here.

The analysis of the projected costs of this rule follows conceptually the approach in the 2006 (“five-cycle”) fuel economy la beling rule. Increased on- going operations and maintenanceFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 127 of 315 (O&M) costs and labor hours result fr om the costs of printing the labels and increases in testing costs for electric vehicles (EVs) and plug-in hybri ds (PHEVs). We also allow for the costs of increased facility capacity to accommodate the increased testing time involved for these two categories of vehicles. Startup costs are treated as capital costs, and are amortized over ten years at 7% interest. Startup costs for this rule in clude some one-time graphic design work for each manufacturer subject to the ru le and updating information syst ems and testing equipment for those manufacturers subject to new testing. As an aid to the analysis and to help articulate the range of uncertainty, we include bo th low and high cost estimates for each of these cost and labor hour elements. The cost estimates are $649,000 per year for the low estimate, and $2.8 million per year for the high estimate. For details of this analysis, see the “D raft Supporting Statement for Information Collection Request, Fuel Econo my Labeling of Motor Vehicles (Proposed Rule)”, in the docket. 186

1. Operations and Maintenance Costs and Labor Hours

a. New Testing Requirements for Electric Vehicles and Plug-in Hybrid Electric Vehicles

i. Testing requirements for Electric Vehicles

As explained in Section VI of this Preambl e, EPA currently has no federal test procedure for measuring fuel economy for electric vehicles (EVs). To date, EPA has performed some fuel economy testing connected with certification ap plications for electric vehicles using the procedures developed by the Society of Auto motive Engineers (SAE), specifically SAE J1634, as cancelled in October 2002. This proposal spells out EV testing requirements that are similar to SAE J1634, as cancelled in October 2002, and allo ws continued use of that procedure.

In estimating the costs of this action, there is no clear baseline cost that manufacturers of EVs would have incurred in satisfying federal requirements, because existing fuel economy measurements are entirely specified in term s of exhaust and greenhouse gas emissions. For purposes of the analysis, we assume these EV cost s are entirely new costs rather than increments to pre-existing costs. Here and in the facility costs section, this also means we assume no carryover applications for EVs. Both these assumptions are more likely to lead to an overstatement of costs than an understatement.

In 2004 the Federal Trade Commission promul gated a rule requiring “alternative fueled vehicles” to include a consumer label indicat ing their estimated cruising ranges (69 FR 26926, April 9, 2004; 16 CFR part 309, subpart C). The covered vehicles include EVs but not plug-in hybrid electric vehicles (PHEVs). Estimated crui sing range for an EV is the range determined according to SAE J1634 (16 CFR 309.22(a)(2)). Consequently, EV ma nufacturers selling vehicles in the United States have already been subject to the same SAE J1634 testing requirements allowed in this rulemaking for severa l years. However, for purposes of the analysis

186 U.S. Environmental Protection Agency, Office of Trans portation and Air Quality. “Draft Supporting Statement for Information Collection Request, Fuel Economy Labeling of Motor Vehicles (Proposed Rule), EPA ICR 2392.01.” Compliance and In novative Strategies Division and Assessm ent and Standards Division, July, 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 128 of 315 below we treat the costs of compliance for manu facturers subject to the proposed rule as new costs in order to insure that they are fully consid ered in this rulemaking,

The salient feature of SEA J1634 for cost pur poses is that it requires, similar to a conventional vehicle, the Federal Test Procedur e (FTP or City Test), preceded by vehicle preparation; this is followed by the Highway Te st (HFET). The off-cycle tests (USO6, SCO3, cold FTP) are optional under EPA’s proposal. Furthermore, cruising range determination requires that the FTP be repeated until the batter y system is no longer able to maintain the FTP speed tolerances; the FTP in question is the full four-phase FTP, repeated as cold and hot start “UDDS” or “LA-4” cycles until that point is reached.

Preparation costs are estimated to be $3,163 and 30 hours per vehicle, per Information Collection Request (ICR) 0783.54 (OMB 2060-0104), the certification ICR for conventional vehicles. Preparation includes several coas t downs, a UDDS, and a soak period. The low and high EV test distances for FTP and HFET tests are estimated as 50 to 250 miles. For purposes of this estimate, the cost of an FTP/HFET pair is $1,860, allocated 70% to the FTP and 30% to the HFET and incremented either by 50 or 250 divide d by 7.45 (the distance of a normal FTP), or by 50 or 250 divided by 10.3 (the distance of the norma l HFET). These increases are applied to an estimated five to eight EV families in the years through MY2013. Labor hours, estimated at 30 hours per FTP/HFET pair, are allocated and increm ented in a similar manner. The bottom line is a cost between $75,300 and $486,784, and 1,073 to 7,625 hour s, per year for the EV industry.

ii. Testing Requirements for Plug-in Hybrid Electric Vehicles

As explained in Part VI, the proposed EPA te st procedure for PHEVs is an extension of the existing test procedure for hybrid vehicles. Off-cycle tests are already required for test groups that do not meet the “litmus test;” others would use the derived five-cycle adjustment. Hybrid vehicles already do FTP and HFET tests for fuel economy determination. The new FTP procedure would essentially run repeated FTPs un til the charge is depleted. This is the “chargedepleting” operation, when the vehicle is main ly running on its battery. The battery would then be recharged, and a single additional four- phase FTP would be conducted in what is denominated as the “charge-sustain” operation. Fo llowing this, the vehicle will be recharged, if necessary, by running any appropriate test cycl e followed by HFET cycles in charge-depleting operation, followed by a cycle in charge-sustain operation.

For purposes of this cost analysis, the ch arge-sustain FTP and HFET cycles along with potential other cycles mandated by emissions and fuel economy testing requirements are considered to be continuations of existing requireme nts. The cost increment due to this proposal consequently derives entirely from the increased testing time in depleting mode. The duration of the depleting modes is estimated as 7.45 to 50 miles over the repeated 7.45 mile FTP or 10.3 mile HFET test cycles. These together, applied to 5 to 8 families with no carryovers, add an estimated $8,528 to $80,564 in operation and main tenance (O&M) costs and 138 to 923 labor hours to existing hybrid testing costs.

b. Printing Costs for New LabelsFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 129 of 315 The primary variable cost for the new label design is the difference in cost between black-and-white and color printing. To estimate th is cost difference, the agencies note two sources. First, in 2007 the California Air Res ources Board (CARB) examined the effects of requiring an environmental label th at included color printing. It estimated the combined capital and operating costs of color labe ls to be as low as $0.02 per ve hicle for large manufacturers; 187 CARB expected small-scale manufacturers to switch to pre-printed color labels at an incremental cost of $0.05 per label, for a 4-by-6-inch label. Secondly, in 2006 Hewlett-Packard estimated the per-page cost of color printing on its HP Color LaserJet 4700n printer as $0.09 per letter-sized page, and black-and-white printing on a dedica ted black-and-white prin ter as $0.015, for a cost difference of $0.075 per page. 188

The existing fuel economy label measures 4.5 by 7 inches, slightly larger than the CARB label but about 1/3 the size of a standard page. For the cost estimates developed here, the agencies consider a low estimate of $0.03 per la bel in additional printing costs (based on the CARB label, adjusted for size), and a high esti mate of $0.08 per label (based on the HP estimate, which may overestimate the cost based on page si ze). For the number of labels, we estimate the subject fleet from the April 20, 2010, U.S. Depa rtment of Transportatio n’s Summary of Fuel Economy Performance, 189 taking MY2009’s 9.83 million as the low and MY2005’s 15.9 million as the high estimate. This yields a ne w printing cost of $294,690 to $1,274,634 per year.

The O&M costs and labor hours discussed above can be summarized as follows:

Table VII.A.1-1 Testing Costs (Labor And O&M Costs For Running The Tests)

187 State of California, Air Resources Bo ard. “Staff Report: Initial Statement of Reasons for Rulemaking: Proposed Amendments to the Smog Index Vehicle Emissions Label,” May 4, 2007, http://www.climatechange.ca.gov/pu blications/arb/2007-06- 21_isor.pdf , (last acce ssed May 3, 2010).
188 Hewlett-Packard, “Head to head comparison: color versus black-and-white printing,” http://www.officep roductnews.net/files/hpc24 47wpcolorvsbwgov.pdf, (l ast accessed May 4, 2010).
189 U. S. Department of Transportation, National Highway Traffic Safety Administration, “Summary of Fuel Economy Performance,” http://www.nhtsa.gov/staticfiles/rulemaking/pd f/cafe/CAFE_Performance_Report_April_2010.pdf , accessed June 17, 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 130 of 315 2. Facility Costs

In addition to new equipment (treated as a startup cost, below), the new testing requirements for EVs and PHEVs will in theory require expanded testi ng facilities for those manufacturers choosing to produce and sell them in the U.S. Because the cost of new facility capacity is highly dependent on manufacturer-s pecific factors (the costs of capital, the availability of land, the structur e of work shifts, the existing ex cess capacity, etc.), we use the approximation of unitizing increased test costs by assuming that a facility capable of performing 750 FTP/HFET pairs would cost $4 million. Here, the new tests are deemed to require these facilities in proportion to the increases in test time, and the costs are th en annualized over ten years and amortized at 7% inte rest compounded monthly. This assumption is more likely to produce an overestimate of costs rather than an underestimate, since it does not attempt to account for the current excess capacity that exists in manufacturers’ current test facilities. We assume that there is no excess capacity in our anal ysis. Note that other features of the EV and PHEV test cycles, such as recharging times, have been harmonized with ex isting test protocols. Furthermore, consistent with other informati on burden analyses for the emissions and fuel economy programs, we consider these as ongoing rath er than startup costs (i.e., as the facilities depreciate they are continuall y being replaced), another cons ervative assumption. Applying these costs to a low and high estimate of 5 to 8 EV families and 5 to 8 PHEV families per year yields an annualized f acilities cost between $25,278 and $210,779 per year.

Facility costs can be summari zed as in Table VII.A.2-1:

Table VII.A.2-1 Increase In Test Facilities Undepreciated capital costs Minimum Maximum Vehicle Type/Test Cycle Increase In Number of Tests Increase in Hours

Min Tests Min Cost Increase Max Tests Max Cost Increase Min Max EV Prep 5.0 $18,065 8.0 $28,904 150 240 FTP 5.0 $43,691 8.0 $349,530 705 5,638 HFET 5.0 $13,544 8.0 $108,350 218 1,748 EV Total $75,300 $486,784 1,073 7,625 PHEV FTP 5.0 $6,510 8.0 $50,563 105 705 HFET 5.0 $2,018 8.0 $30,001 33 218 PHEV Total $8,528 $80,564 138 923 Total $83,828 $567,348 1,211 8,548 PRINTING COSTS Number Vehicles Min@$0.03 Number Vehicles Max@$0.08 Color Labels 9, 832,000 $294,690 15,932,920 $1,274,634

TOTAL O&M $378,518 $1,841,981Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 131 of 315 EV test distance increase $154,210 $1,233,683 PHEV test distance increase $22,977 $246,737 Total $177,188 $1,480,420 Amortized, 10yrs @ 7 % $25,278 $210,779

3. Startup Costs

Startup costs are counted as one -time costs that are amortized or discounted at an interest rate of 7% over ten years.

a. Updating Information Systems and Testing Equipment

The estimate includes the cost of upgrading information systems for the estimated 8 to 10 manufacturers who will need to comply with th e new EV and PHEV testing requirements, such as recording multiple tests, recording battery ch arge data, and communicating the resulting data to the information system that gets it to EPA and the label. Both low and high estimates use 4 weeks for four IT staff for analysis and code, an d 4 weeks for two IT staff for testing, at $100 per hour, for each manufacturer, resulting in an industry cost of $768,000 to $960,000. In addition, each manufacturer who has not previously produced hybrid-electric vehicles is assumed to need new testing equipment costing $25,000 for an ammeter and $50,000 for voltage stabilizers; we estimate that 5-8 manufacturers will fall in this category.

b. Label Redesign

The proposed label designs are presented in Section III. The changes being proposed in this rule would not affect either the existence or size of the label. Auto companies currently have significant flexibility in whether fuel economy labe l should be a stand-alone label or included in the “Monroney label” (which provides information on the price and op tions included for a specific vehicle), or where it is placed on the Mo nroney label. The agen cies are not proposing any changes to this flexibility. The agencies estimate 16 to 24 hours at $100 per hour for this work, assuming at this time that no specific location or size within the Monroney label is required. This cost is applied to the universe of separate manufacturer entities subject to the rule. Many specific automotive brands are parts of marketing groups or are owned and managed by other, parent companies. Allo wing for these relationships, the be st guess is that the rule would apply to 24 manufacturers and 11 independe nt commercial importers (ICIs) importing nonconforming vehicles into the U.S. for sale. A pplied to 35 companies, then, the label redesign cost is estimated to be $56,000 to $84,000.

c. Annualized Startup Costs

Total startup costs are between $1.2 and 1.6 m illion. When annualized and subjected to 7% loan repayment/discounting, the startup costs total $170,711 to $234,069 per year. These are summarized in Table VII.A.3-1:

Table VII.A.3-1Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 132 of 315

Startup Costs

Item Cost Minimum Maximum
Updating Information systems $768,000 $960,000

Ammeter/stabilizer $375,000 $600,000
Label redesign $56,000 $84,000

TOTAL $1,199,000 $1,644,000
Amortized, 10 years at 7% $170,711 $234,069

4. Cost Summary

Table VII.A.4-1 summarizes the costs presented here. The total costs of this rule, excluding labor, are estimated to be about $575,000 to $2,287,000 per year. Adding the cost of labor (estimated to be $61.49 per hour overall) to the above estimates brings the total cost to $648,952 to $2,812,465. Note that startup capit al is not budgeted as labor. EPA and NHTSA request comment on the costs estimates, including any omitted costs and any other information regarding the costs of these requirements.

Table VII.A.4-1 Total Annual Cost and Hours Increase

COST BURDEN Min Max O&M: testing and label $378,518 $1,841,981 Facility Capital $25,278 $210,779 Startup: one-time IT, label redesign, and reg familiarization, 10 yrs 7% $170,711 $234,069 Total $574,507 $2,286,829

HOURS BURDEN Min Max O&M: testing and label 1,211 8,548 Facility Capital 0 0 Total 1,211 8,548

Labor Cost $74,446 $525,635

Total Costs, Including Labor $648,952 $2,812,465Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 133 of 315 B. Impact of Proposing One Label to Meet EPCA/EISA

As discussed in Section I.C., EPCA a nd EISA create similar but not identical requirements for labeling vehi cles. EPA conducts a labeling program under EPCA, and NHTSA is required to conduct a labeling program under EISA, in consultation with EPA. While the agencies could require that manuf acturers produce two separate labels to meet the requirements of the statutes, much of the information on the two labels would be duplicat ive. In addition, two different fuel economy labels might confuse ve hicle purchasers, frustrating the purpose of providing fuel economy information to purchasers. Requiring that auto makers put two fuel economy labels on vehicles would also crowd th e limited labeling space on vehicles. For these reasons, EPA and NHTSA are proposing to comb ine both the EPCA and the EISA requirements into one label.

Because NHTSA’s labeling under EISA is a ne w requirement that has not previously been implemented, there is no cost reduction associ ated with the proposal to use a joint label. The use of the joint label avoids a cost increase that would result from two separate labels. EPA and NHTSA are not including this co st saving in the cost analysis because we believe that the benefits of coordinating labeling requirem ents outweigh any po ssible disadvantages.

C. Benefits of Label Changes

The benefits of this rule would come from improved provision of information to vehicle buyers, and more informed consumer decisions re sulting from the changes. These benefits are difficult to estimate. Doing so would require pred ictions of changes in consumer behavior as a result of the label modifications. The internet survey discussed in Section IV.A.2 is intended to provide some insights into the comprehensibility and usefulness of the labels, but the results are not available at this time.

Improved fuel economy reduces costs of driving a mile, but the technology to improve fuel economy may increase the cost of a vehicl e. Evaluating this tr adeoff requires comparing future fuel savings based on expectations of fu ture fuel prices and dr iving patterns with known and immediate increases in vehicle purchase pric e. Some evidence suggests that consumers may not accurately compare future fuel savings w ith the up-front costs of fuel-saving technology when buying vehicles. 190 As a result, consumers may buy less or more fuel-saving technology than is financially sensible for them to buy. This problem may be compounded by the presence of miles per gallon (mpg) as a primar y metric for fuel economy comparison. 191 As discussed in Section II.A.2, consumers can save much more fuel by choosing a 1-mpg improvement in fuel economy for a low-mpg vehicle than by choosing a 1-mpg improvement for a high-mpg vehicle. However, research on the “mpg illusion” finds that consumers expect a 1-mpg improvement to produce the same fuel savi ngs regardless of the efficiency of a vehicle. 192 Thus, the tendency of consumers to use mpg as a primary metric for fu el economy increases the difficulty of estimating the fuel savings resulting from increased fuel ec onomy. As a result, cons umers may not be able

190 Turrentine, Thomas S., and Kenneth S. Kurani, “Car buyers and fuel economy?” Energy Policy 35 (2007): 1213-
1223. 191 Larrick, Richard P., and Jack B. Soll, “The MPG Illusion.” Science 320 (5883) (June 20, 2008): 1593-94.
192 Ibid.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 134 of 315 to find the most cost-effective amount of fuel economy for their driving habits. For gasoline vehicles, new metrics on the label, such as gall ons per hundred miles, fuel savings over 5 years, or environmental metrics, may make it easier for consumers to identify the fuel savings they are likely to receive from a vehicle, and therefore to judge better betw een vehicles with different fuel savings, costs, and environmental impacts.

Finding the most cost-effective vehicle may be even more confusing with the advent of advanced technology vehicles such as EVs or PH EVs. Most consumers are not accustomed to shopping for vehicles that use energy sources ot her than gasoline. In addition, the cost effectiveness of different techno logies depends on a person’s driv ing patterns. A person with a short commute may have lower per-mile costs with a vehicle with some all-electric range, but someone with a long commute may have higher per-mile costs or in sufficient range with such a vehicle and may want to consider different technologies. For advanced technology vehicles, the label can help vehicle shoppers to understand the new technologies, and it can present metrics that allow consumers to make useful comparis ons across different vehi cle technologies.

EPA and NHTSA request comment on the benef its described here, and on any additional benefits.

D. Summary

The prim ary benefits associated with this proposed rule are associated with improved consumer decision-making resulting from improve d presentation of information. At this time, EPA and NHTSA do not have data to quantify these impacts.

The primary costs associated with this propos ed rule come from revisions to the fuel economy label and additional testing procedures . These costs are estimated to be $649,000 - $2.8 million per year.

EPA and NHTSA request comment on this asse ssment of the benefits and costs.

VIII. Agencies’ Statutory Author ity and Executive Order Review s
A. Relationship of EPA’s Proposed Requirements With Ot her Statutes and Regulations

1. Automobile Disclosure Act

The Automobile Information Disclosure Act (A IDA) requires the affixi ng of a retail price sticker to the windshield or si de window of new automobile s indicating the Manufacturer's Suggested Retail Price, the “sticker price.” 193 Additional information, such as a list of any optional equipment offered or transportation char ges, is also required. The Act prohibits the sticker from being removed or alte red prior to sale to a consumer.

193 More commonly known as the Monroney Act (Senator Mike Monroney was the chief sponsor of the Act) or Price Sticker Act. See 15 U.S.C. 1231-1233.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 135 of 315 Under EPCA, EPA may allow manufacturers of new automobiles to comply with the EPCA labeling requirements by placing the fuel economy information on the label required by AIDA . 194 Normally, the price sticker label and EPA label are combined as one large label. Failure to maintain the EPA label on the ve hicle is considered a violation of AIDA.

2. Internal Revenue Code

EPCA requires “Gas Guzzler” ta x information to be included on the fuel economy label, under 26 U.S.C. 4064(c)(1). The Internal Revenu e code contains the provisions governing the administration of the Gas Guzzler Tax. It contai ns the table of appli cable taxes and defines which vehicles are subject to the taxes. The IRS code specifies that the fuel economy to be used to assess the amount of tax will be the combined city and highway fuel economy as determined by using the procedures in place in 1975, or procedures that give comparable results (similar to EPCA's requirements for determining CAFE for passenger automobiles). This proposal would not impact these provisions.

3. Clean Air Act

EPCA states that fuel economy tests shall, to the extent pr acticable, be carried out with the emissions tests required under Section 206 of the Clean Air Act. 195 EPA is not proposing additional emissions tests.

4. Federal Trade Commission Guide C oncerning F uel Economy Advertising for New Vehicles

In the mid-1970's when EPCA was passed, the Federal Trade Commission (FTC) “took note of the dramatic increase in the number of fuel economy claims then being made and of the proliferation of test proce dures then being used as the basis for such claims.” 196 They responded by promulgating regulations in 16 CFR part 259 entitled “Guide Concerning Fuel Economy Advertising for New Vehicles” (“Fuel Guide” ). The Fuel Guide, adopted in 1975 and subsequently revised twice, prov ides guidance to automobile manu facturers to prevent deceptive advertising and to facilitate the use of fuel ec onomy information in advertising. The Fuel Guide advises vehicle manufacturers and dealers how to disclose the establis hed fuel economy of a vehicle, as determined by the Environmental Protection Agency's rules pursuant to the Automobile Information Disclosure Act (15 U.S.C. 2996), in advertisements that make representations regard ing the fuel economy of a new vehicle. 197 The disclosure is tied to the claim made in the advertisement. If both cityand highway fuel economy claims are made, both city and highway EPA figures shou ld be disclosed. A claim rega rding either city or highway fuel economy should be accompanied by the corre sponding EPA figure. A general fuel economy claim would trigger disclosure of the EPA city fi gure, although the advertiser would be free to state the highway figure as well. The authority for the Fuel Guide is tied to the Federal Trade

194 49 U.S.C. 32908(b)(2). 195 49 U.S.C. 32904(c).
196 40 FR 42003, Sept. 10, 1975.
197 43 FR 55747, Nov. 29, 1978; and 60 FR 56230, Nov. 8, 1995.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 136 of 315 Commission Act (15 U.S.C. 41-58) which, briefly stated, makes it il legal for one to engage in “unfair methods of competiti on in or affecting commerce a nd unfair or dece ptive acts or practices in or affecting commerce.”

5. California Environmental Performance Label

California requires each new and used vehicl e offered for sale in the state to affix a “Smog Index Number” and “Globa l Warming Index” decal to th e car window which indicates the pollution standard that applies to that particular car, and its exhaust emissions. 198 This proposal would not impact Ca lifornia’s regulations.

B. Statutory and Executive Order Reviews

1. Executive Order 12866: Regulatory Planni ng and Review and DOT Regulatory Policies and Procedures (NHTSA only)

Under Executive Order (EO) 12866 (58 FR 51735, October 4, 1993), this action is a "significant regulatory action” because the action raises novel legal or policy issues. Accordingly, EPA and NHTSA submitted this act ion to the Office of Management and Budget (OMB) for review under E.O. 12866 and any changes made in response to OMB recommendations have been documented as OMB requests in the docket for this action.

NHTSA is also subject to the Department of Transportation’s Regulatory Policies and Procedures. This proposed rule is also significant within the meaning of the DOT Regulatory Policies and Procedures. E.O. 12866 also requir es NHTSA to submit this action to OMB for review and document any changes made in response to OMB recommendations

In addition, EPA and NHTSA both prepared an analysis of the potential costs and benefits associated with this action. This analysis is available in Section VII of this document.

2. Paperwork Reduction Act

The information collection requirements in this proposed rule have been submitted for approval to the Office of Management and Budget (OMB) under the Paperwork Reduction Act

, 44 U.S.C. 3501 et seq . The Information Collection Reque st (ICR) document prepared by EPA has been assigned EPA ICR number 2239.01. Sin ce this is a joint proposal, the burden associated with these information collection requir ements could be attributed to either agency. However, since a significant por tion of the burden result from new EPA testing requirements, EPA has agreed to assume responsibility for th e complete paperwork burden. Both agencies will consider the comments submitted regarding these poten tial costs as part of their decision in the final rule.

198 SB 2050 (Presley), Chapter 1192, Statutes of 1994, and AB 1229 (2005).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 137 of 315 The information being collected is used by EPA to calculate the fuel economy estimates that appear on new automobile, light truck a nd medium-duty passenger vehicle sticker labels. EPA currently collects this information annually as part of its vehicl e certification and fuel economy program, and will continue to do so. This proposed rule changes some of the content of the information submitted. Responses to this info rmation collection are mandatory to obtain the benefit of vehicle certification under Title II of the Clean Air Act (42 U.S.C. 7521 et seq. ) and as required under Title III of the Motor Vehicle Information and Co st Savings Act (15 U.S.C. 2001 et seq. ). Information submitted by manufacturers is held as confidential until the specific vehicle to which it pertains is available for purchase. After vehicles are availa ble for purchase, most information associated with the manufacturer’s application is available to the public. Under section 208 of the Clean Air Act (42 U.S.C. 7542(c)), all informa tion, other than trade secret processes or methods, must be publicly avai lable. Proprietary in formation is granted confidentiality in accordance with the Freedom of Information Act, EPA regulations at 40 CFR part 2, and class determinations issu ed by EPA’s Office of General Counsel.

The projected yearly increas ed cost within the three- year horizon of the pending information collection request is $2,812,000 in cluding $2,286,000 in operations and maintenance costs and $526,000 in labor costs. The estimated nu mber of likely responde nt manufacturers is 35. Responses are submitted annually by engine family, with the number of responses per respondent varying widely depending on the number of engine families being certified. Under the current fuel economy information authoriza tion, an average of 12.2 responses a year are approved for each of 33 respondents requiri ng 451.2 hours per response and 80 hours of recordkeeping at a to tal cost of $10,012 per response for an industry total of 184,127 hours and $4,274,932 million annually, including capital and operati ons and maintenance costs. Burden is defined at 5 CFR 1320.3(b).

An agency may not conduct or sponsor, a nd a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations in 40 CFR are listed in 40 CFR part 9.

To comment on the EPA's need for this information, the accuracy of the provided burden estimates, and any suggested methods for mini mizing respondent burden, EPA has established a public docket for this rule, which includes th is ICR, under Docket ID number EPA-HQ-OAR2009-0865. Submit any comments related to the ICR to EPA and OMB. See ADDRESSES section at the beginning of this notice for where to submit comments to EPA. Send comments to OMB at the Office of Information and Regulator y Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office for EPA. Since OMB is required to make a decision concerning the ICR between 30 and 60 days after [Insert date of publication in the Federal Register.] , a comment to OMB is best assured of having its full effect if OMB receives it by [Insert date 30 days after public ation in the Federal Register.]

. The final rule will respond to any OMB or public comments on the information collection requirements contained in this proposal.

3. Regulatory Flexibility ActFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 138 of 315 The Regulatory Flexibility Act (RFA) generally requires agencies to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedure Act or any other statute unless the agencies certify that the rule will not have a significant economic impact on a substa ntial number of small entities. Small entities include small businesses, small organizati ons, and small governmental jurisdictions.

For purposes of assessing the impacts of this proposed rule on small entities, a small entity is defined as: (1) A small business as defined by the Small Busi ness Administration (SBA) by category of business using North America In dustrial Classificati on System (NAICS) and codified at 13 CFR 121.201; (2) a small governmental jurisdiction that is a government of a city, county, town, school district or special district with a populati on of less than 50,000; and (3) a small organization that is any not-for-profit enterprise whic h is independently owned and operated and is not dominant in its field.

Table VIII.B.3-1 provides an overview of th e primary SBA small business categories included in the light-duty vehicle sector that are subject to the proposed rule:

Table VIII.B.3-1 Primary SBA Small Business Categories in the Light-Duty Vehicle Sector

Industry Defined as small entity by SBA if less

than or equal to: NAICS Codes a

Light-duty vehicles: - vehicle manufacturers

- independent commercial importers 1,000 employees

$7 million annual sales $23 million annual sales 100 employees 336111

811111, 811112, 811198 441120 423110

Notes:

a North American Industri al Classification System

After considering the economic impacts of today’s proposed rule on small entities, we certify that this action will not have a significant economic imp act on a substantial number of small entities. The small entities directly regulat ed by this proposed rule cover two main types of small businesses including vehicle manufact urers, and independent commercial importers (ICIs). ICIs are companies that import used vehi cles into the U.S. that must be certified for emissions compliance and labeled for fuel econo my purposes. Small governmental jurisdictions and small organizations as described above will not be impacted. We have determined that the estimated effect of the proposed rule is to im pact 1 small business vehicle manufacturer and 11 ICIs who currently certify vehicl es with costs less than one percent of revenues. These 12 companies represent all of th e small businesses impacted by the proposed regulations. An analysis of the impacts of the proposed rule on small businesses has been prepared and placed in the docket for this rulemaking. 199

199 “Screening Analysis: Small Business Impacts from Revisions to Motor Vehicle Fuel Economy Label,” EPA report, June 30, 2010.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 139 of 315 Although this proposed rule will not have a si gnificant impact on a substantial number of small entities, we nonetheless have tried to reduce the impact of this rule on small entities. EPA is proposing to reduce the testi ng burden on ICIs that would be needed for the fuel economy label. Under the proposal, ICIs would be al lowed to test over two driving cycles when determining the fuel economy estimate for the fu el economy label instead of testing over five driving cycles as required for vehicle manufacturers.

Both agencies continue to be interested in the potential impacts of the proposed rule on small entities and welcome comments on the small business analysis and other issues related to impacts on small businesses.

4. Unfunded Mandates Reform Act

This proposed rule does not contain a Federal mandate that may result in expenditures of $100 million (adjusted for inflation) or more for State, local, and tribal governments, in the aggregate, or the private sector in any one year. This rule contains no federal mandates for state, local, or tribal governments as defined by the pr ovisions of Title II of the UMRA. The rule imposes no enforceable duties on any of these govern mental entities. Nothing in the rule would significantly or uniquely affect small governments. The proposed rule only affects vehicle manufacturers and the agencies estimate annua l costs of less than $100 million (adjusted for inflation). EPA and NHTSA believe that the proposal represents the least costly, most costeffective approach to achieve the statutory requirements of the rule . The agencies’ estimated costs are provided in section VI. Thus , this rule is not subject to th e requirements of sections 202 or 205 of UMRA.

This rule is also not subject to the re quirements of section 203 of UMRA because it contains no regulatory requi rements that might significantly or uniquely affect small governments. As noted above, the proposed rule only affects vehicle manufacturers.

5. Executive Order 13132: Federalism

This action does not have federalism implica tions. It will not have substantial direct effects 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, as specified in Executive Order 13132

. This rulemaking would apply to manufacturers of motor vehicles and not to stat e or local governments. Thus, Executive Order 13132 does not apply to this action

. Although section 6 of Executive Order 13132 do es not apply to this action, EPA and NHTSA did consult with repres entatives of state governments in developing this action.

In the spirit of Executive Or der 13132, and consistent with the agencies’ policy to promote communications between Federal, St ate and local governments, the agencies specifically solicits comment on this proposed action from State and local officials.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 140 of 315 6. Executive Order 13175: Consultation a nd Coordination W ith Indian Tribal Governments

This action does not have tribal implicat ions, as specified in Executive Order 13175 (65 FR 67249, November 9, 2000)

. This proposed rule would be im plemented at the Federal level and imposes compliance costs only on vehicle ma nufacturers. Tribal governments would be affected only to the extent th ey purchase and use regulated vehicles. Thus, Executive Order 13175 does not apply to this action. The agencies specifically solicit additional comment on this proposed action from tribal officials.

7. G. Executive Order 13045: Protection of Children f rom Environmental Health and Safety Risks

EPA and NHTSA interpret E.O. 13045 (62 FR 19885, April 23, 1997) as applying only to those regulatory actions that concern health or safety risks, such that the analysis required under secti on 5-501 of the E.O. has the potential to influence the regulation. This action is not subject to E.O. 13045 becau se it does not establish an environmental standard intended to mitigate health or safety risks.

8. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution or Use

This action is not a “significant energy ac tion” as defined in Executive Order 13211 (66 FR 28355 (May 22, 2001)), because it is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The propos ed regulations do not require manufacturers to improve or otherwise change the fuel economy of their vehicles. The purpose of this proposed regulation is to provide consumers with better information on which to base their vehicle purchasing decisions. Therefore, we have concluded that this rule is not likely to have any adverse energy effects.

9. National Technology Transfer Advancement Act

Section 12(d) of the Na tional Technology Transfer and Advancement Act of 1995 (“NTTAA”), Public Law No. 104-113 (15 U.S.C. 272 note) directs the agen cies to use voluntary consensus standards in its regul atory activities unless to do so would be inconsistent with applicable law or otherwise impractical. Volunt ary consensus standards are technical standards (e.g., materials specifications, test methods, samp ling procedures, and busi ness practices) that are developed or adopted by voluntary consensus sta ndards bodies. NTTAA directs the agencies to provide Congress, through OMB, explanations when the Agency decides not to use available and applicable voluntary consensus standards.

EPA’s portion of this proposed rulemaking i nvolves technical standards. EPA proposes to use elements of testing sta ndards developed with the Society of Automotive Engineers (SAE). Where possible, EPA proposes to incorporate by reference portions of SAEJ1711, SAE J2841, and SAE J1634. At the time of this proposal, al l the above SAE documents are either open forFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 141 of 315 update or in the process of balloting prior to publishing. SAE reference documents can be obtained at www.SAE.org . In the absence of final publis hed reference documents, EPA is proposing procedures that may differ from fina l SAE procedures. Also, differences between EPA proposed procedures and final SA E procedures may be due to st atutory or exis ting regulatory EPA requirements, worst case emissions testing requirements by EPA, and the need for EPA to address policy concerns and concerns of manufacturers not involved in developing SAE procedures.

EPA welcomes comments on this aspect of the proposed rulemaking and, specifically, invites the public to identify potentially-applicab le voluntary consensus st andards and to explain why such standards should be used in this regulation.

10. Executive Order 12898: Federal Actions to Address Environm ental Justice in Minority Populations and Low-Income Populations.

Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes federal executive policy on environmental justice. Its main provi sion directs federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disp roportionately high and adverse human health or environmental effects of their programs, policie s, and activities on minority populations and lowincome populations in the United States.

The agencies have determined that this proposed rule will not ha ve disproportionately high and adverse human health or environmental effects on minority or lo w-income populations because it does not affect the level of protection provided to human health or the environment. The proposed regulations do not require manufactu rers to improve or otherwise change the emissions control or fuel economy of their vehicles. The purpose of this proposed regulation is to provide consumers with better informati on on which to base their vehicle purchasing decisions.

List of Subjects

40 CFR Part 86 Administrative practice and pr ocedure, Confidential busine ss information, Labeling, Motor vehicle pollution, Reporting and recordkeeping requirements.

40 CFR Part 600 Administrative practice and pr ocedure, Electric power, Fuel economy, Labeling, Reporting and recordkeeping requirements.

Add NHTSA Subjects

Environmental Protection Agency

40 CFR Chapter 1Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 142 of 315 For the reasons set forth in the preamble, th e Environmental Protecti on Agency proposes to amend parts 86 and 600 of title 40, Chapter I of th e Code of Federal Regulations as follows:

PART 86--CONTROL OF EMISSIONS FROM NEW AND IN-USE HIGHWAY VEHICLES AND ENGINES

1. The authority citation for part 86 continues to read as follows: Authority: 42 U.S.C. 7401-7671q.

Subpart S — [Amended]

2. Section 86.1818-12 is amended by adding paragr aph (b)(3) and revising paragraph (c)(1) to read as follows: § 86.1818-12 Greenhouse gas emission standards for light-duty vehicles, light-duty trucks, and medium-duty passenger vehicles. * * * * * (b) * * * (3) Manufacturer has the meani ng given by the Department of Transportation at 49 CFR 531.4. (c) * * * (1) For a given individual model year's productio n of passenger automobiles and light trucks, manufacturers must comply with a full useful life fleet average CO 2 standard calculated according to the provisions of this paragraph (c). Manufacturers must calculate separate full useful life fleet average CO 2 standards for their passenger autom obile and light truck fleets, as those terms are defined in this sectio n. Each manufacturer's fleet average CO 2 standards determined in this paragraph (c) shall be expres sed in whole grams per mile, in the model year specified as applicable. Manufactur ers eligible for and choosing to participate in the Temporary Leadtime Allowance Alternative Standards for qu alifying manufacturers specified in paragraph (e) of this section shall not include vehicles subject to the Tempor ary Leadtime Allowance Alternative Standards in the calculations of th eir primary passenger auto mobile or light truck standards determined in this paragraph (c). Ma nufacturers shall demonstrate compliance with the applicable standards accordi ng to the provisions of §86.1865–12. * * * * *

3. Section 86.1841–01 is amended by revising pa ragraph (a)(3) to read as follows: § 86.1841-01 Compliance with emission standards for the purpose of certification. (a) * * * (3) Compliance with full useful life CO 2 exhaust emission standards shall be demonstrated at certification by the certificati on levels on the FTP and HFET te sts for carbon-related exhaust emissions determined accordi ng to §600.113-12 of this chapter. * * * * *

4. Section 86.1865–12 is amended by revising paragr aphs (j)(1), (k)(8)(i ii) through (v), and (k)(9)(iv)(B) to read as follows: § 86.1865-12 How to comply with the fleet average CO 2 standards. * * * * *Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 143 of 315 (j) * * * (1) Compliance and enforcement requiremen ts are provided in this section and §86.1848– 10(c)(9). * * * * * (k) * * * (8) * * * (iii) EPA will determine the vehicles not cove red by a certificate because the condition on the certificate was not satisfied by designating vehicles in those test groups with the highest carbonrelated exhaust emission values first and contin uing until reaching a number of vehicles equal to the calculated number of noncomplying vehicles as determined in paragraph (k)(8) of this section. If this calculatio n determines that only a portion of ve hicles in a test group contribute to the debit situation, then EPA will designate actual vehicles in that test group as not covered by the certificate, starting with the last vehicle produced and counting backwards. (iv)(A) If a manufacturer ceases production of passenger cars and light trucks, the manufacturer continues to be responsible for offsetting any de bits outstanding within the required time period. Any failure to offset the debits will be consid ered a violation of para graph (k)(8)(i) of this section and may subject the manufacturer to an enforcement action for sale of vehicles not covered by a certificate, pursuan t to paragraphs (k)(8)(ii) an d (iii) of this section. (B) If a manufacturer is purch ased by, merges with, or othe rwise combines with another manufacturer, the controlling entity is responsible for offsetting any debits outstanding within the required time period. Any failure to offset the debits will be cons idered a violation of paragraph (k)(8)(i) of this section and may subject the manufacturer to an enforcement action for sale of vehicles not covered by a certificat e, pursuant to paragraphs (k)(8)( ii) and (iii) of this section. (v) For purposes of calculating the statute of limitations, a violation of the requirements of paragraph (k)(8)(i) of this section, a failure to satisfy the conditions upon which a certificate(s) was issued and hence a sale of vehicles not covered by the certific ate, all occur upon the expiration of the deadline for offs etting debits specified in paragr aph (k)(8)(i) of this section. (9) * * * (iv) * * * (B) Failure to offset the debits within the requ ired time period will be considered a failure to satisfy the conditions upon which the certificate(s) was issued and will be addressed pursuant to paragraph (k)(8) of this section. * * * * *

5. Section 86.1867–12 is amended by revising para graphs (a)(3)(iv)(A), (a)(3)(iv)(F), (a)(3)(vi), and (a)(4) to read as follows: § 86.1867-12 Optional early CO 2 credit programs. * * * * * (a) * * * (3) * * * (iv) * * * (A) Total model year sales data will be used, inst ead of production data, except that vehicles sold in California and the section 177 states determined in paragraph (a)(2)(i) of this section shall not be included. * * * * *Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 144 of 315 (F) Electric, fuel cell, and pl ug-in hybrid electric model type carbon-related exhaust emission values shall be included in th e fleet average determined under pa ragraph (a)(1) of this section only to the extent that such vehicles are not being used to ge nerate early advanced technology vehicle credits under paragraph (c) of this section. * * * * * (vi) Credits are earned on the last day of the model year. Manu facturers must calculate, for a given model year, the number of credits or de bits it has generated acco rding to the following equation, rounded to the nearest megagram: CO 2 Credits or Debits (Mg) = [(CO 2 Credit Threshold

− Manufacturer's Sales Weighted Fleet Average CO 2 Emissions) × (Total Number of Vehicl es Sold) × (Vehicle Lifetime Miles)] ÷ 1,000,000 Where: CO 2 Credit Threshold = the applicable credit thre shold value for the model year and vehicle averaging set as determined by paragr aph (a)(3)(vii) of this section; Manufacturer's Sales Weighted Fleet Average CO 2 Emissions = average calculated according to paragraph (a)(3)(vi) of this section; Total Number of Vehicles Sold = The number of vehicles domestically sold as defined in §600.511–80 of this chapter except that vehicles sold in California and the section 177 states determined in paragraph (a)(2)(i) of th is section shall not be included; and Vehicle Lifetime Miles is 195,264 for the LDV/LDT1 averaging set and 225,865 for the LDT2/HLDT/MDPV averaging set. * * * * * (4) Pathway 4. Pathway 4 credits are those cred its earned under Pathway 3 as described in paragraph (a)(3) of this s ection in the set of states that does not include California and the section 177 states determined in paragraph (a)(2)(i) of th is section and calculated according to paragraph (a)(3) of this section. Credits may only be generated by vehicles sold in the set of states that does not include California and the section 177 states determined in paragr aph (a)(2)(i) of this section. (b) * * * (2) Manufacturers that select Pathway 4 as descri bed in paragraph (a)(4) of this section may not generate early air conditioning credits for vehicles sold in section 177 states as determined in paragraph (a)(2)(i) of this section. * * * * *

PART 600— FUEL ECONOMY AND CARBON-RELATED EXHAUST EMISSIONS OF MOTOR VEHICLES
6. The authority citation for part 600 continues to read as follows:

Authority: 49 U.S.C. 32901—23919q, Pub. L. 109–58.


### Subpart A—General Provisions
7. The heading for subpart A is revised as set forth above.

§600.001-08, §600.001-86, §600.001-93, §600.002-85, §600.002-93, §600.004-77, §600.006-86, §600.006-87, §600.006-89, §600.007-80, §600.008-01, §600.008-77, §600.010-86—[Removed]Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 145 of 315 8. Subpart A is amended by rem oving the following sections:

§600.001-08 §600.001-86 §600.001-93 §600.002-85 §600.002-93 §600.004-77 §600.006-86 §600.006-87 §600.006-89 §600.007-80 §600.008-01 §600.008-77 §600.010-86

9. Redesignate §§600.001-12 through 600.011-93 as follows:

old section new section

§600.001-12 §600.001

§600.002-08 §600.002

§600.003-77 §600.003

§600.005-81 §600.005

§600.006-08 §600.006

§600.007-08 §600.007

§600.008-08 §600.008

§600.009-85 §600.009

§600.010-08 §600.010

§600.011-93 §600.011



### § 600.001 General applicability.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 146 of 315 (a) The provisions of this part apply for 2008 and later model year automobiles that are not medium duty passenger vehicles, and to 2011 an d later model year medium-duty passenger vehicles.

(b) The provisions of subparts A, D, and F of this part are optional through the 2011 model year in the following cases:

(1) Manufacturers that produce only electric vehicl es are exempt from the requirements of this subpart, except with regard to the requirement s in those sections pertaining specifically to electric vehicles.

(2) Manufacturers with worldwide production (excl uding electric vehicle production) of less than 10,000 gasoline-fueled and/or dies el powered passenger autom obiles and light trucks may optionally comply with the electric ve hicle requirements in this subpart.

(c) Unless stated otherwise, references to fuel economy or fuel economy data in this subpart shall also be interpreted to mean th e related exhaust emissions of CO 2 , HC, and CO, and where applicable for alternative fuel vehicles, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC and CH 4
. References to average fuel economy shall be in terpreted to also mean average carbon-related exhaust emissions. References to fuel economy data vehicles shall also be meant to refer to vehicles tested for carbon-re lated exhaust emissions for th e purpose of demonstrating compliance with fleet average CO 2 standards in §86.1818 of this chapter.

(d) The model year of initial applicability for se ctions in this part is indicated by the section number. The two digits following the hyphen designa te the first model year for which a section is effective. A section is effective until supersede d. Sections that have no two-digit suffix apply for all 2008 and later model year vehicles, except as noted in those sections . If a section has a two-digit suffix but the regulation references that section without including the two-digit suffix, this refers to the section applicable for the appropriate model year. This also applies for references to part 86 of this chapter.

Example: Section 600.113–08 applies to the 2008 and subsequent model years until superseded. Section 600.113– 12 takes effect beginning with the 2012 model year. Section 600.111–08 would then apply only for 2008 through 2011 model year vehicles.


### § 600.002 Definitions.

The following definitions apply throughout this part:

3-bag FTP means the Federal Test Procedure specified in part 86 of this chapter, with three sampling portions consisting of the cold-start tran sient (“Bag 1”), stabilized (“Bag 2”), and hotstart transient phases (“Bag 3”).

4-bag FTP means the 3-bag FTP, with the addition of a sampling portion for the hot-start stabilized phase (“Bag 4”).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 147 of 315 5-cycle means the FTP, HFET, US06, SC03 and cold temperature FTP tests as described in subparts B and C of this part.

Administrator means the Administrator of the Envi ronmental Protection Agency or his authorized representative.

Alcohol means a mixture containing 85 percent or more by volume methanol, ethanol, or other alcohols, in any combination.

Alcohol-fueled automobile means an automobile designed to operate exclusively on alcohol.

Alcohol dual fuel automobile means an automobile:

(1) Which is designed to operate on alcohol and on gasoline or diesel fuel; and

(2) Which provides equal or greater energy e fficiency as calculated in accordance with §600.510(g)(1) while operating on alcohol as it does while operating on gasoline or diesel fuel; and

(3) Which, in the case of passenger automobiles, meets or exceeds the minimum driving range established by the Department of Transportation in 49 CFR part 538.

Automobile has the meaning given by the Department of Transportation at 49 CFR 523.3. This includes “passenger automobiles” and “non-passenger auto mobiles” (or “light trucks”).

Auxiliary emission control device (AECD) means an element of design as defined in §86.1803 of this chapter.

Average fuel economy means the unique fuel economy va lue as computed under §600.510 for a specific class of automobiles produced by a manufact urer that is subject to average fuel economy standards.

Axle ratio means the number of times th e input shaft to the differen tial (or equivalent) turns for each turn of the drive wheels.

Base level means a unique combination of basic engine , inertia weight class and transmission class.

Base tire means the tire specified as standa rd equipment by the manufacturer.

Base vehicle means the lowest priced version of e ach body style that makes up a car line.

Basic engine means a unique combination of manufactur er, engine displa cement, number of cylinders, fuel system (e.g., type of fuel injection), catalyst usage, and other engine and emission control system characteristics spec ified by the Administrator. For el ectric vehicles, basic engine means a unique combination of manufacturer an d electric traction motor, motor controller,Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 148 of 315 battery configuration, electrical charging system, energy storage device, and other components as specified by the Administrator.

Battery configuration means the electrochemical type, volta ge, capacity (in Watt-hours at the c/3 rate), and physical characteri stics of the battery used as the tractive energy device.

Body style means a level of commonality in vehicle construction as defined by number of doors and roof treatment (e.g., sedan, convertible, fastback, hatchback) and number of seats ( i.e.
, front, second, or third seat) requi ring seat belts pursuant to National Highway Traffic Safety Administration safety regulati ons in 49 CFR part 571. Station wagons and light trucks are identified as car lines.

Calibration means the set of specifications, including tolerances, unique to a particular design, version of application of a component, or component assembly capable of functionally describing its operation over its working range.

Carbon-related exhaust emissions (CREE) means the summation of the carbon-containing constituents of the exhaust emissions, with each constituent adjusted by a coefficient representing the carbon weight fraction of each constituent relative to the CO 2 carbon weight fraction, as specified in §600.113-08. For example, carbon-related exhaust emissions (weighted 55 percent city and 45 percent highway) are used to demonstrate compliance with fleet average CO 2 emission standards outlined in §86.1818 of this chapter.

Car line means a name denoting a group of vehicles wi thin a make or car division which has a degree of commonality in construction (e.g., body, ch assis). Car line does not consider any level of decor or opulence and is not ge nerally distinguished by characteri stics as roof line, number of doors, seats, or windows, except for station wa gons or light-duty trucks. Station wagons and light-duty trucks are considered to be different car lines than passenger cars.

Certification vehicle means a vehicle which is selected under §86.1828 of this ch apter and used to determine compliance under §86.1848 of this chapte r for issuance of an or iginal certificate of conformity.

City fuel economy means the city fuel economy determined by operating a vehicle (or vehicles) over the driving schedule in the Federal emission test procedure, or determined according to the vehicle-specific 5-cycle or derived 5-cycle procedures.

Cold temperature FTP means the test performed under the provi sions of subpart C of part 86 of this chapter.

Combined fuel economy means:

(1) The fuel economy value determined for a vehi cle (or vehicles) by harm onically averaging the city and highway fuel economy valu es, weighted 0.55 and 0.45 respectively.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 149 of 315 (2) For electric vehicles, the te rm means the equivalent petroleum-based fuel economy value as determined by the calculation procedure promulgated by the Secretary of Energy.

Dealer means a person who resides or is located in the United States, any territory of the United States, or the District of Colu mbia and who is engaged in th e sale or distribution of new automobiles to the ultimate purchaser.

Derived 5-cycle fuel economy means the 5-cycle fuel economy de rived from the FTP-based city and HFET-based highway fuel economy by means of the equation provided in §600.210.

Drive system is determined by the number and location of drive axles (e.g., front wheel drive, rear wheel drive, four wheel driv e) and any other feature of the dr ive system if the Administrator determines that such other features may result in a fuel economy difference.

Electrical charging system means a device to convert 60 Hz a lternating electric current, as commonly available in residentia l electric service in the United States, to a proper form for recharging the energy storage device.

Electric traction motor means an electrically powered motor which provides tractive energy to the wheels of a vehicle.

Electric vehicle has the meaning given in §86.1803 of this chapter.

Energy storage device means a rechargeable means of storing tractive energy on board a vehicle such as storage batteries or a flywheel.

Engine code means a unique combination, within an engine-system combination (as defined in §86.1803 of this chapter), of displacement, fuel injection (or carburetion or ot her fuel delivery system), calibration, distributor calibration, choke calibration, auxili ary emission control devices, and other engine and emission control system components specified by the Administrator. For electric vehicles, engine code means a unique combination of manufact urer, electric traction motor, motor configuration, motor co ntroller, and ener gy storage device.

Federal emission test procedure (FTP) refers to the dynamometer driving schedule, dynamometer procedure, and sampling and analytical procedures described in part 86 of this chapter for the respective model year, which ar e used to derive city fuel economy data.

Footprint has the meaning given in §86.1803 of this chapter.

FTP-based city fuel economy means the fuel economy determined in §600.113–08 of this part, on the basis of FTP testing.

Fuel means:

(1) Gasoline and diesel fuel for gasoli ne- or diesel-powered automobiles; orFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 150 of 315 (2) Electrical energy for electri cally powered automobiles; or

(3) Alcohol for alcohol-pow ered automobiles; or

(4) Natural gas for natural gas-powered automobiles; or

(5) Liquid Petroleum Gas (LPG), commonly re ferred to as “propane,” for LPG-powered automobiles; or

(6) Hydrogen for hydrogen fuel cell automobiles and for automobiles equipped with hydrogen internal combustion engines.

Fuel cell has the meaning given in §86.1803 of this chapter.

Fuel cell vehicle has the meaning given in §86.1803 of this chapter.

Fuel economy means:

(1) The average number of miles traveled by an automobile or group of automobiles per volume of fuel consumed as calculated in this part; or

(2) For the purpose of calcula ting average fuel economy pursuan t to the provisions of part 600,subpart F, fuel economy for electrically powered automobiles means the equivalent petroleumbased fuel economy as determined by the Secretary of Energy in accordance with the provisions of 10 CFR 474.

Fuel economy data vehicle means a vehicle used for the purpose of determining fuel economy which is not a certification vehicle.

Gasoline-equivalent gallon means an amount of electricity or fuel with the energy equivalence of one gallon of gasoline. For purposes of this pa rt, one gallon of gasoline is equivalent to 33.705 kilowatt-hours of electricity, a nd 0.823 gallons of gasoline is e quivalent to 100 standard cubic feet of natural gas.

Gross vehicle weight rating means the manufacturer's gross weight rating for the individual vehicle.

Hatchback means a passenger automobile where th e conventional luggage compartment, i.e.
, trunk, is replaced by a cargo area which is ope n to the passenger compartment and accessed vertically by a rear door whic h encompasses the rear window.

Highway fuel economy means the highway fuel economy determined either by operating a vehicle (or vehicles) over the driving schedul e in the Federal highway fuel economy test procedure, or determined according to either th e vehicle-specific 5-cycle equation or the derived 5-cycle equation for highway fuel economy.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 151 of 315 Highway fuel economy test procedure (HFET) refers to the dynamometer driving schedule, dynamometer procedure, and sampling and analytical procedures described in subpart B of this part and which are used to deri ve highway fuel economy data.

HFET-based fuel economy means the highway fuel economy determined in §600.113–08 of this part, on the basis of HFET testing.

Hybrid electric vehicle (HEV) has the meaning given in §86.1803 of this chapter.

Independent Commercial Importer has the meaning given in §85.1502 of this chapter.

Inertia weight class means the class, which is a group of te st weights, into which a vehicle is grouped based on its loaded vehicle weight in accordance with the provisions of part 86 of this chapter.

Label means a sticker that contains fuel economy in formation and is affixed to new automobiles in accordance with subpart D of this part.

Light truck means an automobile that is not a passe nger automobile, as defined by the Secretary of Transportation at 49 CFR 523.5. This term is interchangeable with “non-passenger automobile.” The term the “light truck” in cludes medium-duty passenger vehicles which are manufactured during 2011 and later model years.

Medium-duty passenger vehicle means a vehicle which would satisfy the criteria for light trucks as defined by the Secretary of Transportation at 49 CFR 523.5 but for its gross vehicle weight rating or its curb weight, whic h is rated at more than 8,500 lbs GVWR or has a vehicle curb weight of more than 6,000 pounds or has a basic ve hicle frontal area in excess of 45 square feet, and which is designed primarily to transport pa ssengers, but does not include a vehicle that:

(1) Is an “incomplete truck” as defined in this subpart; or

(2) Has a seating capacity of more than 12 persons; or

(3) Is designed for more than 9 persons in seating rearward of the driver's seat; or

(4) Is equipped with an open cargo area (for ex ample, a pick-up truck box or bed) of 72.0 inches in interior length or more. A covered box not re adily accessible from the passenger compartment will be considered an open cargo area for purposes of this definition.

Minivan means a light truck which is designed primarily to carry no more than eight passengers, having an integral enclosure fully enclosi ng the driver, passenge r, and load-carrying compartments, and rear seats readily removed, fo lded, stowed, or pivoted to facilitate cargo carrying. A minivan typically includes one or more sliding doors and a rear liftgate. Minivans typically have less total interior volume or overall height than full sized vans and are commonly advertised and marketed as “minivans.”Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 152 of 315 Model year means the manufacturer's annual pro duction period (as determined by the Administrator) which includes January 1 of such calendar year. If a manufacturer has no annual production period, the term “model year” means the calendar year.

Model type means a unique combination of car line, basic engine, and transmission class.

Motor controller means an electronic or electro-mechanical device to convert ener gy stored in an energy storage device into a form suit able to power the traction motor.

Natural gas-fueled automobile means an automobile designed to operate exclusively on natural
gas.

Natural gas dual fuel automobile means an automobile:

(1) Which is designed to operate on natu ral gas and on gasoline or diesel fuel;

(2) Which provides equal or greater energy effi ciency as calculated in §600.510-08(g)(1) while operating on natural gas as it does while operating on gasoline or diesel fuel; and

(3) Which, in the case of passenger automobiles, meets or exceeds the minimum driving range established by the Department of Transportation in 49 CFR part 538.

Non-passenger automobile has the meaning given by the Department of Transportation at 49 CFR 523.5. This term is synonymous with “light truck.”

Passenger automobile has the meaning given by the Depart ment of Transportation at 49 CFR 523.4.

Pickup truck means a nonpassenger automobile which ha s a passenger compartment and an open cargo bed.

Plug-in hybrid electric vehicle (PHEV) has the meaning given in §86.1803 of this chapter.

Production volume means, for a domestic manufacturer , the number of vehicle units domestically produced in a pa rticular model year but not exported, and for a foreign manufacturer, means the number of vehicle units of a particular model imported into the United States.

QR Code means Quick Response Code, which is a registered trademark of Denso Wave, Incorporated.

Round has the meaning given in 40 CFR 1065.1001, unless specified otherwise.

SC03 means the test procedure specifi ed in §86.160 of this chapter.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 153 of 315 Secretary of Transportation means the Secretary of Trans portation or his authorized representative.

Secretary of Energy means the Secretary of Energy or his authorized representative.

Sport utility vehicle (SUV) means a light truck with an exte nded roof line to increase cargo or passenger capacity, cargo compartment open to the passenger compartment, and one or more rear seats readily removed or fo lded to facilita te cargo carrying.

Station wagon means a passenger automobile with an ex tended roof line to increase cargo or passenger capacity, cargo compartment open to th e passenger compartment, a tailgate, and one or more rear seats readily removed or folded to facilitate cargo carrying.

Subconfiguration means a unique combination within a vehi cle configuration of equivalent test weight, road-load horsepower, and any other opera tional characteristics or parameters which the Administrator determines may significantly affect fuel economy within a vehicle configuration.

Track width has the meaning given in §86.1803 of this chapter.

Transmission class means a group of transmissions having the following common features: Basic transmission type (manual, automatic, or semi-aut omatic); number of forward gears used in fuel economy testing (e.g., manual four-speed, three-sp eed automatic, two-speed semi-automatic); drive system (e.g., front wheel driv e, rear wheel drive; four wheel drive), type of overdrive, if applicable (e.g., final gear ratio less than 1.00, separate overdrive un it); torque conve rter type, if applicable (e.g., non-lockup, lockup, variable ratio); and other tran smission characteristics that may be determined to be si gnificant by the Administrator.

Transmission configuration means the Administrator may further subdivide within a transmission class if the Administrator determines that sufficient fuel economy differences exist. Features such as gear ratios, torque converter multiplication ratio, stall sp eed, shift calibration, or shift speed may be used to further distinguish characteristics within a transmission class.

Test weight means the weight within an inertia weight class which is used in the dynamometer testing of a vehicle, and which is based on its loaded vehicle weight in accordance with the provisions of part 86 of this chapter.

Ultimate consumer means the first person who purchases an automobile for purposes other than resale or leases an automobile.

US06 means the test procedure as desc ribed in §86.159 of this chapter.

US06-City means the combined periods of the US06 te st that occur before and after the US06- Highway period.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 154 of 315 US06-Highway means the period of the US06 test that begins at the end of the deceleration which is scheduled to occur at 130 seconds of th e driving schedule and terminates at the end of the deceleration which is scheduled to occu r at 495 seconds of the driving schedule.

Van means any light truck having an integral enclosure fully enclosing the driver compartment and load carrying compartment. The distance from the leading edge of the windshield to the foremost body section of vans is typically s horter than that of pi ckup trucks and SUVs.

Vehicle configuration means a unique combination of basic engine, engine code, inertia weight class, transmission configuration, and axle ratio within a base level.

Vehicle-specific 5-cycle fuel economy means the fuel economy calculated according to the procedures in §600.114.

Wheelbase has the meaning given in §86.1803 of this chapter.



### § 600.003 Abbreviations.

The abbreviations and acronyms used in this part have the same meaning as those in part 86 of this chapter, with the addition of the following:

(a) “MPG” or “mpg” means miles per gallon. This may be used to describe a quantity, or it may be used as units associated with a particular value.

(b) SCF means standard cubic feet.



### § 600.005 Maintenance of r ecords and rights of entry.

The provisions of this section are applicable to all fuel economy data vehicles. Certification vehicles are required to meet the pr ovisions of §86.1844 of this chapter.

(a) The manufacturer of any new motor vehicle subject to any of the standards or procedures prescribed in this part shall establish, mainta in, and retain the followi ng adequately organized and indexed records:

(1) General records. (i) Identification and description of all vehicles for which data are submitted to meet the requirements of this part.

(ii) A description of all procedur es used to test each vehicle.

(iii) A copy of the information required to be submitted under §600.006 fulfills the requirements of paragraph (a)(1)(i) of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 155 of 315 (2) Individual records. (i) A brief history of each vehicle for which data are submitted to meet the requirements of this part, in the form of a separate booklet or other document for each separate vehicles, in which must be recorded:

(A) The steps taken to ensure that the vehicle with respect to its engine, drive train, fuel system, emission control system components, exhaust after treatment device, vehicl e weight, or any other device or component, as applicab le, will be representative of pr oduction vehicles. In the case of electric vehicles, the manufacturer should describe the steps taken to ensure that the vehicle with respect to its electric traction motor, motor controller, batt ery configuration, or any other device or component, as applicable, will be representative of production vehicles.

(B) A complete record of all emission tests pe rformed under part 86 of th is chapter, all fuel economy tests performed under this part 600 (except tests actually performed by EPA personnel), and all electric vehicle tests perf ormed according to procedures promulgated by DOE, including all individual worksheets and other documentation relating to each such test or exact copies thereof; the date, time, purpose, and location of each tes t; the number of miles accumulated on the vehicle when the tests began and ended; and the names of supervisory personnel responsible for th e conduct of the tests.

(C) A description of mileage accumulated since se lection of buildup of such vehicles including the date and time of each mileage accumulation listing both the mileage accumulated and the name of each driver, or each operator of th e automatic mileage accumulation device, if applicable. Additionally, a descri ption of mileage accumulated prio r to selection or buildup of such vehicle must be maintained in such detail as is available.

(D) If used, the record of any de vices employed to record the speed or mileage, or both, of the test vehicle in relationship to time.

(E) A record and description of all maintena nce and other servici ng performed, within 2,000 miles prior to fuel economy testing under this part, giving the date and time of the maintenance or service, the reason for it, the person authorizing it, and th e names of supervisory personnel responsible for the conduct of the maintena nce or service. A copy of the maintenance information to be submitted under §600.006 fulfills the requirements of this paragraph (a)(2)(i)(E).

(F) A brief description of any significant events affecting the vehicle during any of the period covered by the history not descri bed in an entry under one of the previous headings including such extraordinary events as vehicle accident s or driver speeding citations or warnings.

(3) The manufacturer shall retain all records required unde r this part for five years after the end of the model year to which they relate. Records ma y be retained as hard copy or some alternative storage medium, provided that in every case all th e information contained in hard copy shall be retained.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 156 of 315 (b)(1) Any manufacturer who has supplied fuel ec onomy data to meet the requirements of this part shall admit any EPA Enforcement Offi cer during operating hours upon presentation of credentials at any of the following:

(i) Any facility where any fuel economy tests fr om which data are submitted or any procedures or activities connected with these tests are performed.

(ii) Any facility where any new motor vehicle which is being, was, or is to be tested is present.

(iii) Any facility where any cons truction process used in the modification or buildup of a vehicle into a fuel economy data vehicle is taking place or has taken place.

(iv) Any facility where any record or other doc ument relating to any of the above is located.

(2) Upon admission to any facility referred to in paragraph (b)(1) of this section, the manufacturer shall allow a ny EPA Enforcement Officer:

(i) To inspect and monitor any part or aspect of procedures, activities, and testing facilities, including, but not limited to, monitoring vehi cle preconditioning; emission and fuel economy tests and mileage accumulation; maintenance; vehicl e soak and storage procedures; and to verify correlation of calibration of test equipment;

(ii) To inspect and make copies of any requi red records, designs, or other documents; and

(iii) To inspect and photogra ph any part or aspect of a ny fuel economy vehicle and any components to be used in the construction thereof.

(3) Any EPA Enforcement Officer will be furn ished, by those in charge of facility being inspected, with such reasonable assistance as ma y be required to help discharge any function listed in this paragraph (b). Each manufacturer is required to have those in charge of the facility furnish such reasonable assistance without char ge to EPA whether or not the manufacturer controls the facility.

(4) The duty to admit any EPA Enforcement Offi cer shall be applicable whether or not the manufacturer owns or controls the facility in question and is applicable to both domestic and foreign manufacturers and facilities. An EPA En forcement Officer will not attempt to make any inspections which the officer has been informed are in contravention of any law. However, if local law makes it impossible for the EPA Enforcement Officer to verify or to ensure the accuracy of data generated at a facility such that no informed judgment can properly be made as to the accuracy or reliability of data generated by or obtained for the facility, then a vehicle or data from that vehicle shall not be accepted for use in subpart C or F of this part (unless the Administrator is otherwise convinced of th e accuracy and reliabili ty of such data).

(5) For purposes of this paragraph (b):Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 157 of 315 (i) “Presentation of credentials” means display of the document designat ing a person as an EPA Enforcement Officer.

(ii) Where vehicle, component, or engine stor age areas or facilities are concerned, “operating hours” shall mean all times during which personnel other than custodial personnel are at work in the vicinity of the area or f acility and have access to it.

(iii) For facilities or areas othe r than those covered by paragraph (b)(5)(ii) of this section, the term, “operating hours” will mean all times during which an assembly line is in operation or all times during which testing, maintenance, m ileage accumulation, production or compilation of records, or any other procedure or activity rela ted to fuel economy testing, or to vehicle manufacturer or assembly, is be ing carried out in a facility.

(iv) “Reasonable assistance” means providing tim ely and unobstructed access to and opportunity for the copying of any record, book, paper, or docu ment required to be ma intained under this section and providing timely and unobstructed access to any motor vehicle, testing facility, or testing equipment.

(v) Any entry without 24 hours pr ior written or oral notification to the a ffected manufacturer shall be authorized in writing by the A ssistant Administrator for Enforcement.



### § 600.006 Data and information requirem ents for fuel economy data vehicles.

(a) For certification vehicles with less than 10,000 miles, the requirements of this section are considered to have been met except as noted in paragraph (c ) of this section.

(b)(1) The manufacturer shall submit the follo wing information for each fuel economy data vehicle:

(i) A description of the vehicle, exhaust emission test results, a pplicable deterioration factors, adjusted exhaust emission levels, and test fuel property values as specified in §600.113–08.

(ii) A statement of the origin of the vehi cle including total mileage accumulation, and modification (if any) form the vehicle configur ation in which the mileage was accumulated. (For modifications requiring advance approval by the Admi nistrator, the name of the Administrator's representative approving the modi fication and date of approval ar e required.) If the vehicle was previously used for testing for compliance with part 86 of this chapter or previously accepted by the Administrator as a fuel economy data vehicle in a different configuration, the requirements of this paragraph may be satisfied by reference to the vehicle number and pr evious configuration.

(iii) A statement that the fuel economy data vehicle for which data are submitted:

(A) Has been tested in accordance with applicable test procedures;

(B) Is, to the best of the manu facturer's knowledge, representativ e of the vehicle configuration listed; andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 158 of 315 (C) Is in compliance with appli cable exhaust emission standards.

(2) The manufacturer shall retain the following in formation for each fuel economy data vehicle, and make it available to the Administrator upon request:

(i) A description of all maintenance to engine, em ission control system, or fuel system, or fuel system components performed within 2,000 miles prior to fuel economy testing.

(ii) In the case of electric vehi cles, plug-in hybrid electric vehicl es, and hybrid electric vehicles, a description of all maintenance to electric motor, motor controller, battery configuration, or other components performed within 2,000 mile s prior to fuel economy testing.

(iii) A copy of calibrations for engine, fuel sy stem, and emission control devices, showing the calibration of the actual compone nts on the test vehicle as we ll as the design tolerances.

(iv) In the case of electric ve hicles, plug-in hybrid electric vehi cles, and hybrid electric vehicles, a copy of calibrations for the electric motor, mo tor controller, battery configuration, or other components on the test vehicle as well as the design tolerances.

(v) If calibrations for components sp ecified in paragraph (b)(2) (iii) or (iv) of this section were submitted previously as part of the description of another vehicle or configuration, the original submittal may be referenced.

(c) The manufacturer shall submit the following fuel economy data:

(1) For vehicles tested to meet the requirements of part 86 of this chap ter (other than those chosen in accordance with the provisions relate d to durability demonstr ation in §86.1829 of this chapter or in-use verification testing in §86.1845 of this chapter), the FTP, highway, US06, SC03 and cold temperature FTP fuel economy results, as applicable, from all tests on that vehicle, and the test results adjusted in accordance with paragraph (g) of this section.

(2) For each fuel economy data vehicle, all individual test resu lts (excluding resu lts of invalid and zero mile tests) and these test results adju sted in accordance with paragraph (g) of this section.

(3) For diesel vehicles tested to meet the requirem ents of part 86 of this chapter, data from a cold temperature FTP, performed in accordance wi th §600.111–08(e), using the fuel specified in §600.107–08(c).

(4) For all vehicles tested in paragraph (c)(1) through (3) of th is section, the individual fuel economy results measured on a per-phase basis, that is, the individual phase results for all sample phases of the FTP, cold temperature FTP and US06 tests.

(5) Starting with the 2012 model year, the data submitted according to paragraphs (c)(1) through (4) of this section shall include total HC, CO, CO 2 , and, where applicable for alternative fuel vehicles, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC and CH 4 . Manufacturers incorporating N 2 OFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 159 of 315 and CH 4 emissions in their fleet average carbon-related exhaus t emissions as allowed under §86.1818 of this chapter shall also submit N 2 O and CH 4 emission data where applicable. The fuel economy and CO 2 emission test results shall be adjusted in accordance with paragraph (g) of this section.

(d) The manufacturer shall submit an indication of the intended purpose of the data (e.g., data required by the general labeling program or voluntarily submitted for specific labeling).

(e) In lieu of submitting actual data from a te st vehicle, a manufacturer may provide fuel economy, CO 2 emissions, and carbon-related exhaust emi ssion values derived from a previously tested vehicle, where the fuel economy, CO 2 emissions, and carbon-rela ted exhaust emissions are expected to be equivalent (or le ss fuel-efficient and with higher CO 2 emissions and carbonrelated exhaust emissions). Additionally, in lieu of submitting actual data from a test vehicle, a manufacturer may provi de fuel economy, CO 2 emissions, and carbon-related exhaust emission values derived from an analyti cal expression, e.g., regression anal ysis. In order for fuel economy, CO 2 emissions, and carbon-related exhaust emission values derived from an alytical methods to be accepted, the expression (form and coefficients) must have been approved by the Administrator.

(f) If, in conducting tests requi red or authorized by this pa rt, the manufacturer utilizes procedures, equipment, or faciliti es not described in the Applica tion for Certification required in §86.1844 of this chapte r, the manufacturer sha ll submit to the Administ rator a description of such procedures, equipment, and facilities.

(g)(1) The manufacturer shall adju st all test data used for fuel economy label calculations in subpart D and average fuel economy calculations in subpart F for the classes of automobiles within the categories identified in paragraphs of §600.510(a)(1) thr ough (4). The test data shall be adjusted in accordance with paragraph (g)(3) or (4) of this section as applicable.

(2) [Reserved]

(3)(i) The manufacturer shall adjust all fuel econ omy test data generated by vehicles with enginedrive system combinations with more than 6,200 miles by using th e following equation:

FE 4,000mi = FE T [0.979 + 5.25×10 − 6 (mi)] − 1 Where: FE 4,000mi = Fuel economy data adjusted to 4,000-mile test point rounded to the nearest 0.1 mpg. FE T = Tested fuel economy value rounded to the nearest 0.1 mpg. mi = System miles accumulated at the start of the test rounded to the nearest whole mile.

(ii)(A) The manufacturer shall adjust all CO 2 test data generated by ve hicles with engine-drive system combinations with more than 6,200 miles by using the following equation:

CO2 4,000mi = CO2 T [0.979 + 5.25·10 − 6 · (mi)]

Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 160 of 315 CO2 4,000mi = CO 2 emission data adjusted to 4,000-mile test point.

CO2 T = Tested emissions value of CO 2 in grams per mile.

mi = System miles accumulated at the start of the test, rounded to the nearest whole mile.

(B) Emissions test values and results used and determined in the calculations in paragraph (g)(3)(ii) of this section shall be rounded in accordance with §86.1837 of this chapter as applicable. CO 2 and CREE values shall be rounded to the nearest gram per mile.

(4) For vehicles with 6,200 miles or less accumulate d, the manufacturer is not required to adjust the data.



### § 600.007 Vehicle acceptability.

(a) All certification vehicles and ot her vehicles tested to meet the requirements of part 86 of this chapter (other than those chosen under the durability-demonstration provisions in §86.1829 of this chapter), are considered to have met the requirements of this section.

(b) Any vehicle not meeting the provisions of pa ragraph (a) of this se ction must be judged acceptable by the Administrator under this section in order for the test results to be reviewed for use in subpart C or F of this part. The Admini strator will judge the acc eptability of a fuel economy data vehicle on the basis of the information supplied by the manufacturer under §600.006(b). The criteria to be met are:

(1) A fuel economy data vehicle may have accu mulated not more than 10,000 miles. A vehicle will be considered to have met this requirement if the engine and drivetrain have accumulated 10,000 or fewer miles. The components installed for a fuel economy test are not required to be the ones with which the mileage was accumulated, e .g., axles, transmission types, and tire sizes may be changed. The Administrator will determin e if vehicle/engine component changes are acceptable.

(2) A vehicle may be tested in different vehicle configurations by change of vehicle components, as specified in paragraph (b)(1) of this section, or by testing in different inertia weight classes. Also, a single vehicle may be tested under different test conditions, i.e. , test weight and/or road load horsepower, to generate fuel economy data representing various situations within a vehicle configuration. For purposes of this part, data generated by a single vehicle tested in various test conditions will be treated as if the data were generated by the testing of multiple vehicles.

(3) The mileage on a fuel economy data vehicle must be, to the extent possible, accumulated according to §86.1831 of this chapter.

(4) Each fuel economy data vehicle must meet the same exhaust emission standards as certification vehicles of the re spective engine-system combinati on during the test in which the city fuel economy test results are generated. This may be demonstrated using one of the following methods:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 161 of 315 (i) The deterioration factors established for the respective engine-system combination per §86.1841 of this chapter as appl icable will be used; or

(ii) The fuel economy data vehicle will be equi pped with aged emissi on control components according to the provisions of §86.1823 of this chapter.

(5) The calibration information submitted unde r §600.006(b) must be representative of the vehicle configuration for which the fuel econom y and carbon-related exhaust emissions data were submitted.

(6) Any vehicle tested for fuel economy or car bon-related exhaust emissions purposes must be representative of a vehicle whic h the manufacturer intends to pr oduce under the provisions of a certificate of conformity.

(7) For vehicles imported under §85.1509 or §85.1511(b)(2), (b)(4), (c)(2), (c)(4 ) of this chapter, or (e)(2) (when applicab le) only the following requirements must be met:

(i) For vehicles imported under §85.1509 of this chap ter, a highway fuel economy value must be generated contemporaneously with the emissi on tests used for purposes of demonstrating compliance with §85.1509 of this chapter. No modi fications or adjustments should be made to the vehicles between the highway fuel econom y, FTP, US06, SC03 and Cold temperature FTP
tests.

(ii) For vehicles imported under §85.1509 or §85.1511(b )(2), (b)(4), (c)(2), or (c)(4) of this chapter (when applicable) with over 10,000 miles, the equation in §600.006(g)(3) shall be used as though only 10,000 miles had been accumulated.

(iii) Any required fuel economy testing must take place after any safety modifications are completed for each vehicle as required by regula tions of the Department of Transportation.

(iv) Every vehicle imported under §85.1509 or §85.1511(b )(2), (b)(4), (c)(2), or (c)(4) of this chapter (when applicable) must be considered a separate type for the purposes of calculating a fuel economy label for a manuf acturer's average fuel economy.

(c) If, based on review of the informati on submitted under §600.006(b), the Administrator determines that a fuel economy data vehicle m eets the requirements of this section, the fuel economy data vehicle will be judged to be acceptable and fuel economy and carbon-related exhaust emissions data from that fuel econom y data vehicle will be reviewed pursuant to §600.008.

(d) If, based on the review of the informa tion submitted under §600.006(b), the Administrator determines that a fuel economy data vehicle doe s not meet the requirements of this section, the Administrator will reject that fuel economy da ta vehicle and inform the manufacturer of the rejection in writing.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 162 of 315 (e) If, based on a review of the emission data for a fuel economy data vehicle, submitted under §600.006(b), or emission data generated by a vehi cle tested under §600.008(e) , the Administrator finds an indication of non-compliance with sec tion 202 of the Clean Air Act, 42 U.S.C. 1857 et seq. of the regulation thereunder, he may take such i nvestigative actions as are appropriate to determine to what extent emi ssion non-compliance actually exists.

(1) The Administrator may, under the provision s of §86.1830 of this chapter, request the manufacturer to submit production vehicles of the configuration(s) specified by the Administrator for testing to determine to what extent emission noncompliance of a production vehicle configuration or of a group of production vehicle confi gurations may actually exist.

(2) If the Administrator determin es, as a result of his investiga tion, that substantial emission noncompliance is exhibited by a production vehicle configuration or group of production vehicle configurations, he may proceed wi th respect to the vehicle configuration(s) as provided under §600.206-08(b)(2), §600.207-08(c)(1), or §600.207-12(c)(1) as applicable of the Clean Air Act, 42 U.S.C. 1857 et seq.

(f) All vehicles used to generate fuel econom y and carbon-related exhaust emissions data, and for which emission standards apply, must be co vered by a certificate of conformity under part 86 of this chapter before:

(1) The data may be used in th e calculation of any approved gene ral or specific label value, or

(2) The data will be used in any calculations under subpart F, except that vehicles imported under §§85.1509 and 85.1511 of this chapter need not be covered by a certificate of conformity.

§ 600.008 Review of fuel economy, CO 2 emissions, and carbon-related exhaust emission data, testing by the Administrator.

(a) Testing by the Administrator. (1)(i) The Administrator may requi re that any one or more of the test vehicles be submitted to the Agency, at such place or places as the Agency may designate, for the purposes of conducting fuel eco nomy tests. The Administrator may specify that such testing be conducted at the manufact urer's facility, in which case instrumentation and equipment specified by the Administrator shall be made available by the manufacturer for test operations. The tests to be perf ormed may comprise the FTP, highway fuel economy test, US06, SC03, or Cold temperature FTP or any combinati on of those tests. Any testing conducted at a manufacturer's facility pursuant to this paragraph shall be scheduled by the manufacturer as promptly as possible.

(ii) Starting with the 2012 model ye ar, evaluations, testing, and test data described in this section pertaining to fuel economy sh all also be performed for CO 2 emissions and carbon-related exhaust emissions, except that CO 2 emissions and carbon-related exhaust emissions shall be arithmetically averaged instead of harmonically averaged, and in cases where the manufacturer selects the lowest of several fuel economy result s to represent the vehicle, the manufacturer shall select the CO 2 emissions and carbon-related exhaust em issions value from the test results associated with the lowest selected fuel economy results.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 163 of 315 (2) Retesting and official data determination. For any vehicles selected for confirmatory testing under the provisions of paragraph (a)(1) of this section, the Administrator will follow this procedure:

(i) The manufacturer's fuel economy data (or harmoni cally averaged data if more than one test was conducted) will be compared with th e results of the Ad ministrator's test.

(ii) If, in the Administrator's judgment, the co mparison in paragraph (a)(2)(i) of this section indicates a disparity in the data, the Administrato r will repeat the test or tests as applicable.

(A) The manufacturer's average test results and the results of the Administrator's first test will be compared with the results of the Administrator's second test as in paragr aph (a)(2)(i) of this section.

(B) If, in the Administrator's judgment, both co mparisons in paragraph (a)(2)(i)(A) of this section, indicate a disparity in the data, the Administ rator will repeat the a pplicable test or tests until:

( 1 ) In the Administrator's judgme nt no disparity in the data is indicated by comparison of two tests by the Administrator or by co mparison of the manufacturer's average test results and a test by the Administrator; or

( 2 ) Four tests of a single test type are conducted by the Administrator in wh ich a disparity in the data is indicated when compared as in paragraph (a)(2)(ii) of this section.

(iii) If there is, in the Administrator's j udgment, no disparity indi cated by comparison of manufacturer's average test result s with a test by the Administrato r, the test values generated by the Administrator will be used to represent the vehicle.

(iv) If there is, in the Administrator's judgment, no disparity indicated by comparison of two tests by the Administrator, the harmonic averages of the fuel economy results from those tests will be used to represent the vehicle.

(v) If the situation in paragraph (a)(2)(ii)(B)( 2 ) of this section occurs, the Administrator will notify the manufacturer, in writing, that the Admini strator rejects that fuel economy data vehicle.

(b) Manufacturer-conducted confirmatory testing. (1) If the Administrator determines not to conduct a confirmatory test under the provisions of paragraph (a) of this section, manufacturers will conduct a confirmatory test at their facility afte r submitting the original test data to the Administrator whenever any of the following conditions exist:

(i) The vehicle configuration has prev iously failed an emission standard;

(ii) The test exhibits high emission levels dete rmined by exceeding a perc entage of the standards specified by the Administrator for that model year;Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 164 of 315 (iii) The fuel economy value of the FTP or HFET test is higher than expected based on procedures approved by the Administrator;

(iv) The fuel economy for the FTP or HFET test is close to a Gas Guzzler Tax threshold value based on tolerances establishe d by the Administrator; or

(v) The fuel economy value for the FTP or highway is a potential fuel econo my leader for a class of vehicles based on cut points provided by the Administrator.

(2) If the Administrator selects the vehicle for confirmatory testing based on the manufacturer's original test results, the testi ng shall be conducted as ordered by th e Administrator. In this case, the manufacturer-conducted confirmatory testing sp ecified under paragraph (b)(1) of this section would not be required.

(3) The manufacturer shall conduct a retest of the FTP or highway test if the difference between the fuel economy of the confirmatory test and th e original manufacturer's test equals or exceeds three percent (or such lower per centage to be applied consisten tly to all manufacturer-conducted confirmatory testing as requested by the ma nufacturer and approved by the Administrator).

(i) The manufacturer may, in lieu of conducting a retest, accept the lower of the original and confirmatory test fuel economy results fo r use in subpart C or F of this part.

(ii) The manufacturer shall condu ct a second retest of the FTP or highway test if the fuel economy difference between the second confirmatory test and the origin al manufacturer test equals or exceeds three percent (or such lower pe rcentage as requested by the manufacturer and approved by the Administrator) and the fu el economy difference between the second confirmatory test and the first confirmatory test equals or exceeds three percent (or such lower percentage as requested by the manufacturer and approved by the Administrator). The manufacturer may, in lieu of conducting a second rete st, accept the lowest of the original test, the first confirmatory test, and the second confirmato ry test fuel economy results for use in subpart C or F of this part.

(4) The Administrator may request the manufactu rer to conduct a retest of the US06, SC03 or Cold Temperature FTP on the basis of fuel economy that is higher than expected as specified in criteria provided by the Administrator. Such re tests shall not be required before the 2011 model
year.

(c) Review of fuel economy data. (1) Fuel economy data must be judged reasonable and representative by the Administrator in order for th e test results to be used for the purposes of subpart C or F of this part. In making this dete rmination, the Administrator will, when possible, compare the results of a test vehicle to those of other similar test vehicles.

(2) If testing was conducted by the Administrator under the provisions of pa ragraph (a) of this section, the data from this testing, together wi th all other fuel economy data submitted for that vehicle under §600.006(c) or (e) will be evaluate d by the Administrator for reasonableness and representativeness per paragra ph (c)(1) of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 165 of 315 (i) The fuel economy data which are determined to best meet the criteria of paragraph (c)(1) of this section will be acce pted for use in subpart C or F of this part.

(ii) City, HFET, US06, SC03 and Cold temperature FT P test data will be considered separately.

(iii) If more than one test was conducted, the Admini strator may select an i ndividual test result or the harmonic average of selected test results to sa tisfy the requirements of paragraph (c)(2)(i) of this section.

(3) If confirmatory testing was conducted by th e manufacturer under the pr ovisions of paragraph (b) of this section, the data from this test ing will be evaluated by the Administrator for reasonableness and representativeness per paragraph (c)(1) of this section.

(i) The fuel economy data which are determined to best meet the criteria of paragraph (c)(1) of this section will be acce pted for use in subpart C or F of this part.

(ii) City, HFET, US06, SC03 and Cold temperature FT P test data will be considered separately.

(iii) If more than one test was conducted, the Admini strator may select an i ndividual test result or the harmonic average of selected test results to sa tisfy the requirements of paragraph (c)(2)(i) of this section.

(4) If no confirmatory testing was conducted by either the Administrator or the manufacturer under the provisions of paragraph (a) and (b) of th is section, respectively, then the data submitted under the provisions of §600.006(c) or (e) shall be accep ted for use in subpart C or F of this part.

(i) City, HFET, US06, SC03 and Cold temperature FTP test data will be considered separately.

(ii) If more than one test was conducted, the harmonic average of the test results shall be accepted for use in subpart C or F of this part.

(d) If, based on a review of the fuel economy da ta generated by testing under paragraph (a) of this section, the Administrator determines that an unacceptable level of correlation exists between fuel economy data generated by a manuf acturer and fuel economy data generated by the Administrator, he/she may reject all fuel ec onomy data submitted by the manufacturer until the cause of the discrepancy is determined and th e validity of the data is established by the manufacturer.

(e)(1) If, based on the results of an insp ection conducted under §600.005(b) or any other information, the Administrator has reason to be lieve that the manufact urer has not followed proper testing procedures or that the testing equi pment is faulty or impr operly calibrated, or if records do not exist that will enable him to ma ke a finding of proper testing, the Administrator may notify the manufacturer in writing of his finding and require the manufacturer to:

(i) Submit the test vehicle(s) upon which the data ar e based or additional test vehicle(s) at a place he may designate for the purpose of fuel economy testing.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 166 of 315 (ii) Conduct such additional fuel economy testing as may be requi red to demonstrate that prior fuel economy test data are r easonable and representative.

(2) Previous acceptance by the Administrator of any fuel economy test data submitted by the manufacturer shall not limit the Administrator's right to require additional testing under paragraph (e)(1) of this section.

(3) If, based on tests required under paragraph (e)(1) of th is section, the Administrator determines that any fuel economy data submitted by the manufacturer and used to calculate the manufacturer's fuel economy average was unrepre sentative, the Administrator may recalculate the manufacturer's fuel economy average based on fuel economy data that he/she deems representative.

(4) A manufacturer may request a hearing as provided in §600.009 if the Administrator decides to recalculate the manufacturer's average pursuant to determinations made relative to this section.



### § 600.009 Hearing on ac ceptance of test data.

(a)(1) If the Administrato r rejects the following:

(i) The use of a manufacturer's fuel economy da ta vehicle, in accordance with§600.008 (e) or (g),

or

(ii) The use of fuel economy data, in accordance with §600.008 (c), or (f), or

(iii) The determination of a vehicle configuration, in accordance with §600.206(a), or

(iv) The identification of a car line, in accordance with §600.002(a)(20), or

(v) The fuel economy label values determ ined by the manufacturer under §600.312(a), then

(2)(i) The manufacturer may, within 30 days fo llowing receipt of notif ication of rejection, request a hearing on the Ad ministrator's decision.

(ii) The request must be in writing, signed by an authorized representative of the manufacturer, and include a statement specifying the manuf acturer's objections to the Administrator's determinations, and data in support of such objection.

(iii) If, after the review of the request and supporting data, th e Administrator finds that the request raises a substantial factual issue(s), the Administrator shall provide the manufacturer with a hearing in accordance with the pr ovisions of 40 CFR part 1068, subpart G.

(b) A manufacturer's use of any fuel economy data which the manufactur er challenges pursuant to this section shall not constitute final acceptance by the manufacturer nor prejudice the manufacturer in the exercise of any appeal pursuant to this section challenging such fuel economy data.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 167 of 315 

### § 600.010 Vehicle test requiremen ts and minimum data requirements.

(a) Unless otherwise exempted from specifi c emission compliance requirements, for each certification vehicle defined in th is part, and for each vehicle tested according to the emission test procedures in part 86 of this chapter for addition of a model after cer tification or approval of a running change (§86.1842 of this chapter, as applicable):

(1) The manufacturer shall generate FTP fuel economy data by testing according to the applicable procedures.

(2) The manufacturer shall generate highway fuel economy data by:

(i) Testing according to a pplicable procedures, or

(ii) Using an analytical tec hnique, as described in §600.006(e).

(3) The manufacturer shall generate US06 fu el economy data by testing according to the applicable procedures. Alternate fueled vehicles or dual fueled vehicles operating on alternate fuel may optionally generate this data using the alternate fuel.

(4) The manufacturer shall generate SC03 fu el economy data by testing according to the applicable procedures. Alternate fueled vehicles or dual fueled vehicles operating on alternate fuel may optionally generate this data using the alternate fuel.

(5) The manufacturer shall gene rate cold temperature FTP fuel economy data by testing according to the applicable procedures. Alternat e fueled vehicles or dual fueled vehicles operating on alternate fuel may optionally gene rate this data using the alternate fuel.

(6) The data generated in paragrap hs (a)(1) through (5) of this se ction, shall be submitted to the Administrator in combination with other data fo r the vehicle required to be submitted in part 86 of this chapter.

(b) For each fuel economy data vehicle:

(1) The manufacturer shall generate FTP and HFET fuel economy data by:

(i) Testing according to a pplicable procedures, or

(ii) Use of an analytical tec hnique as described in §600.006(e), in addition to testing (e.g., city fuel economy data by testing, highway fuel economy data by analytical technique).

(2) The data generated shall be submitted to the Administrator according to the procedures in §600.006.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 168 of 315 (c) Minimum data requirements for labeling. (1) In order to establish fuel economy label values under §600.301–08, the manufacturer shall use only test data accepted in accordance with §600.008 meeting the minimum coverage of:

(i) Data required for emission certific ation under §§86.1828 and 86.1842 of this chapter.

(ii) (A) FTP and HFET data from the highest proj ected model year sales subconfiguration within the highest projected model year sales configuration for each base level, and

(B) If required under §600.115–08, for 2011 and later model year vehicles, US06, SC03 and cold temperature FTP data from the highest projected model year sales subconfiguration within the highest projected model year sales configura tion for each base leve l. Manufacturers may optionally generate this data for any 2008 through 2010 model years, and, 2011 and later model year vehicles, if not otherwise required.

(iii) For additional model types esta blished under §600.208-08(a)(2), §600.208-12(a)(2) §600.209-08(a)(2), or §600.209-12(a )(2) FTP and HFET data, and if required under §600.115– 08, US06, SC03 and Cold temperature FTP data fr om each subconfiguration included within the model type.

(2) For the purpose of recalculating fuel economy label values as required under §600.314-08(b), the manufacturer shall subm it data required under §600.507.

(d) Minimum data requirements for the manufacturer's average fuel economy and average carbon-related exhaust emissions For the purpose of calculating the manufacturer's average fuel economy and average carbon-related exhaust emissions under §600.510, the manufacturer shall submit FTP (city) and HFET (highway) test data representing at le ast 90 percent of the manufacturer's actual model year production, by configuration, for each category identified for calculation under §600.510–08(a).



### § 600.011 Reference materials. (a) Incorporation by reference. The documents referenced in this section have been incorporated by reference in this part. The incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies may be inspected at the U.S. Environmental Protec tion Agency, Office of Air and Radiation, 1200 Pennsylvania Ave., NW., Washington, DC 20460, phone (202) 272–0167, or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202–741–6030, or go to: http://www.archives.gov/federal_register/code _of_federal_regulations/ibr_locations.html and is available from the s ources listed below: (b) ASTM. The following material is available from the American Society for Testing and Materials. Copies of these materials may be obtained from American Society for Testing and Materials, ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA, 19428-2959, phone 610-832-9585

. http://www.astm.org/

. (1) [Reserved]Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 169 of 315 (2) ASTM D 1298–99 (Reapproved 2005) Standard Practice for Density, Relative Density (Specific Gravity), or API Gravity of Crude Petroleum and Liquid Petroleum Products by Hydrometer Method, IBR approved for §§ 600.113–08, 600.510–08, and 600.510-12. (3) ASTM D 3343–05 Standard Test Method fo r Estimation of Hydrogen Content of Aviation Fuels, IBR approved for § 600.113–08. (4) ASTM D 3338–09 Standard Test Method for Es timation of Net Heat of Combustion of Aviation Fuels, IBR approved for § 600.113–08. (5) ASTM D 240–09 Standard Test Method for Heat of Combustion of Liquid Hydrocarbon Fuels by Bomb Calorimeter, IBR approved for §§ 600.113–08, and 600.510–08. (6) ASTM D975–10 Standard Specification fo r Diesel Fuel Oils, IBR approved for § 600.107–08. (7) ASTM D 1945–03 (Reapproved 2010) Standard Te st Method for Analysis of Natural Gas By Gas Chromatography, IBR approved for §§ 600.113–08. (c) SAE Material. The following material is available from the Society of Automotive Engineers. Copies of these materials may be obtained from Society of Automotive Engineers World Headquarters, 400 Commonwealth Dr., Warrendale, PA 15096–0001, phone (877) 606–7323 (U.S. and Canada) or (724) 776–4970 (outsi de the U.S. and Canada), or at http://www.sae.org. (1) Motor Vehicle Dimensions—Recommende d Practice SAE 1100a (Report of Human Factors Engineering Committee, Society of Automotive Engineers, approved September 1973 as revised September 1975), IBR approved for § 600.315-08. (2) SAE J1634. (3) SAE J1711. (4) SAE J2841.



### Subpart B— FUEL ECON OMY AND CARBON-RELATED EXHAUST EMISSION TEST PROCEDURES
10. The heading for subpart B is revised as set forth above.

§600.101-08, §600.101-12, §600.101-86, §600.101-93, §600.102-78, §600.103-78, §600.104-78, §600.105-78, §600.106-78, §600.107-78, §600.107-93, §600.109-78, §600.110-78, §600.111-80, §600.111-93, §600.112-78, §600.113-78, §600.113-88, §600.113-93—[Removed]
11. Subpart B is amended by rem oving the following sections:

§600.101-08 §600.101-12 §600.101-86 §600.101-93 §600.102-78 §600.103-78 §600.104-78 §600.105-78 §600.106-78 §600.107-78 §600.107-93Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 170 of 315 §600.109-78 §600.110-78 §600.111-80 §600.111-93 §600.112-78 §600.113-78 §600.113-88 §600.113-93



### § 600.106-08 Equipment requirements.

The requirements for test equipment to be used for all fuel economy testing are given in subparts B and C of part 86 of this chapter.



### § 600.107-08 Fuel specifications.

(a) The test fuel specifications for gasoline, diesel, methanol, and methanol-petroleum fuel mixtures are given in §86.113 of this chapter, ex cept for cold temperatur e FTP fuel requirements for diesel and alternative fuel vehicles, which are given in paragraph (b) of this section.

(b)(1) Diesel test fuel used for cold temperature FTP testing must comprise a winter-grade diesel fuel as specified in ASTM D975–10 (incorpora ted by reference in §600.0 11). Alternatively, EPA may approve the use of a different diesel fuel, provided that the le vel of kerosene added shall not exceed 20 percent.

(2) The manufacturer may request EPA approval of the use of an alternative fuel for cold temperature FTP testing.

(c) Test fuels representing fuel types for wh ich there are no specifica tions provided in §86.113 of this chapter may be used if approve d in advance by the Administrator.

12. Redesignate §600.108-78 as §600.108-08.



### § 600.108-08 Analytical gases.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 171 of 315 The analytical gases for all fuel economy testing must meet the criteria given in §86.114 of this chapter.



### § 600.109-08 EPA driving cycles.

(a) The FTP driving cycle is prescr ibed in §86.115 of this chapter.

(b) The highway fuel economy driving cy cle is specified in this paragraph.

(1) The Highway Fuel Economy Driving Schedule is set forth in Appendix I of this part. The driving schedule is defined by a smooth trace drawn through the specified speed versus time relationships.

(2) The speed tolerance at any given time on the dynamometer driving schedule specified in Appendix I of this part, or as printed on a driver's aid chart approved by the Administrator, when conducted to meet the requirements of paragr aph (b) of §600.111 is defined by upper and lower limits. The upper limit is 2 mph higher than the hi ghest point on trace within 1 second of the given time. The lower limit is 2 mph lower than th e lowest point on the tr ace within 1 second of the given time. Speed variations greater than the tolerances (such as may occur during gear changes) are acceptable provided they occur fo r less than 2 seconds on any occasion. Speeds lower than those prescribed are acceptable provided the vehicle is operated at maximum available power during such occurrences.

(3) A graphic representation of the range of acceptable speed tolerances is found in §86.115 of this chapter.

(c) The US06 driving cycle is set forth in Appendix I of part 86 of this chapter.

(d) The SC03 driving cycle is set forth in Appendix I of part 86 of this chapter.



### § 600.110-08 Equipment calibration.

The equipment used for fuel economy testing must be calibrated according to the provisions of §§86.116 and 86.216 of this chapter.



### § 600.111-08 Test procedures.

This section provides test procedures for the FTP, hi ghway, US06, SC03, and the cold temperature FTP tests. Testing shall be perf ormed according to test procedures and other requirements contained in this part 600 and in pa rt 86 of this chapter, including the provisions of part 86, subparts B, C, and S.

(a) FTP testing procedures. The test procedures to be follo wed for conducting the FTP test are those prescribed in §§86.127 through 86.138 of this ch apter, as applicable, except as provided for in paragraph (b)(5) of this section. (The evapor ative loss portion of the test procedure may be omitted unless specifically required by the Administrator.)Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 172 of 315 (b) Highway fuel economy testing procedures . (1) The Highway Fuel Economy Dynamometer Procedure (HFET) consists of preconditioning highway driving sequence and a measured highway driving sequence.

(2) The HFET is designated to simulate non-metr opolitan driving with an average speed of 48.6 mph and a maximum speed of 60 mph. The cycle is 10.2 miles long with 0.2 stop per mile and consists of warmed-up vehicle operation on a chassis dynamometer through a specified driving cycle. A proportional part of the diluted exhaust emission is collected continuously for subsequent analysis of hydrocarbons, carbon mo noxide, and carbon dioxide using a constant volume (variable dilution) sampler. Diesel d ilute exhaust is continuously analyzed for hydrocarbons using a heated sample line and anal yzer. Methanol and formaldehyde samples are collected and individually analyzed for methanol -fueled vehicles (measurement of methanol and formaldehyde may be omitted for 1993 through 1994 model year methanol-fueled vehicles provided a HFID calibrated on methanol is used for measuring HC plus methanol).

(3) Except in cases of component malfunction or failure, all emission control systems installed on or incorporated in a new motor vehicle must be functioning during all procedures in this subpart. The Administrator may authorize main tenance to correct component malfunction or failure.

(4) Transmission. The provisions of §86.128 of this chap ter apply for vehicle transmission operation during highway fuel economy testing under this subpart.

(5) Road load power and test weight determination. Section 86.129 of this chapter applies for determination of road load power and test we ight for highway fuel economy testing. The test weight for the testing of a certification vehicle will be that test weight specified by the Administrator under the provisions of part 86 of this chapter. The test weight for a fuel economy data vehicle will be that test weight specified by the Administrator from the test weights covered by that vehicle configuration. The Administrator w ill base his selection of a test weight on the relative projected sales volumes of the various te st weights within the vehicle configuration.

(6) Vehicle preconditioning. The HFET is designed to be performed immediately following the Federal Emission Test Procedure, §§86.127 through 86.138 of this chapter. When conditions allow, the tests should be scheduled in this seque nce. In the event the tests cannot be scheduled within three hours of the Fede ral Emission Test Procedure (including one hour hot soak evaporative loss test, if applicable) the vehicle should be preconditioned as in paragraph (b)(6)(i) or (ii) of this s ection, as applicable.

(i) If the vehicle has experienced more than three hours of soak (68 °F–86 °F) since the completion of the Federal Emission Test Proced ure, or has experienced periods of storage outdoors, or in environments where soak temp erature is not controlled to 68 °F–86 °F, the vehicle must be preconditioned by operation on a dynamometer through one cycle of the EPA Urban Dynamometer Driving Sche dule, §86.115 of this chapter.

(ii) EPA may approve additional preconditioning in unusual circumstances if desired by the manufacturer.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 173 of 315 (7) Highway fuel economy dynamometer procedure. (i) The dynamometer pr ocedure consists of two cycles of the Highway Fuel Economy Driving Schedule (§600.109-08(b)) separated by 15 seconds of idle. The first cycle of the Highway Fuel Economy Driving Schedule is driven to precondition the test vehicle and the second is driven for the fuel economy measurement.

(ii) The provisions of §86.135of this chapter, except for the overview and the allowance for practice runs, apply for highw ay fuel economy testing.

(iii) Only one exhaust sample and one backgr ound sample are collected and analyzed for hydrocarbons (except diesel hydrocarbons which are analyzed continuously), carbon monoxide, and carbon dioxide. Methanol and formaldehyde sa mples (exhaust and dilution air) are collected and analyzed for methanol-fueled vehicles (meas urement of methanol and formaldehyde may be omitted for 1993 through 1994 model year methanol-f ueled vehicles provided a HFID calibrated on methanol is used for meas uring HC plus methanol).

(iv) The fuel economy measurement cycle of the test includes two seconds of idle indexed at the beginning of the second cycle and two seconds of id le indexed at the end of the second cycle.

(8) Engine starting and restarting . (i) If the engine is not runni ng at the initiati on of the highway fuel economy test (preconditioning cycle), the start-up procedure must be according to the manufacturer's recommended procedures.

(ii) False starts and stalls during the preconditioning cycle must be treated as in §86.136 of this chapter. If the vehicle stalls during the measurem ent cycle of the highway fuel economy test, the test is voided, corrective action may be taken according to §86.1834 of this chapter, and the vehicle may be rescheduled for testing. The pers on taking the corrective action shall report the action so that the test records for the vehicle contain a record of the action.

(9) Dynamometer test run. The following steps must be taken for each test:

(i) Place the drive wheels of the vehicle on the dynamometer. The vehicle may be driven onto the dynamometer.

(ii) Open the vehicle engine compartment c over and position the cooling fan(s) required. Manufacturers may request the use of additional cooling fans or variab le speed fan(s) for additional engine compartment or under-vehicle cooling and for controlling high tire or brake temperatures during dynamometer operation. Wi th prior EPA approval, manufacturers may perform the test with the engine compartment cl osed, e.g. to provide adequate air flow to an intercooler (through a factory installed hood scoop). Additiona lly, the Administrator may conduct fuel economy testing using the additional cooling set-up approved for a specific vehicle.

(iii) Preparation of the CVS must be performed before the measurement highway driving cycle.

(iv) Equipment preparation. The provisions of §86.137-94(b)(3) through (6) of this chapter apply for highway fuel economy test, except that onl y one exhaust sample collection bag and one dilution air sample collection bag need to be connected to the sample collection systems.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 174 of 315 (v) Operate the vehicle over one Highway Fuel Economy Driving Schedule cycle according to the dynamometer driving schedule specified in §600.109-08(b).

(vi) When the vehicle reaches zero speed at th e end of the preconditioning cycle, the driver has 17 seconds to prepare for the emissi on measurement cycle of the test.

(vii) Operate the vehicle over one Highway Fuel Economy Driving Schedule cycle according to the dynamometer driving schedule specified in §600.109-08(b) while sampli ng the exhaust gas.

(viii) Sampling must begin two seconds before beginning the first acceleration of the fuel economy measurement cycle and must end two seconds after the end of the deceleration to zero. At the end of the deceleration to zero speed, th e roll or shaft revolutions must be recorded.

(10) For alcohol-based dual fuel automobiles, the procedures of §600.111(a) and (b) shall be performed for each of the fuels on which the vehicle is designed to operate.

(c) US06 Testing procedures. The test procedures to be fo llowed for conducting the US06 test are those prescribed in §86.159 of this chapter, as applicable.

(d) SC03 testing procedures. The test procedures to be follo wed for conducting the SC03 test are prescribed in §§86.160 and 161 of th is chapter, as applicable.

(e) Cold temperature FTP procedures. The test procedures to be followed for conducting the cold temperature FTP test are generally prescribed in subpart C of part 86 of this chapter, as applicable. For the purpose of fuel economy la beling, diesel vehicles are subject to cold temperature FTP testing, but ar e not required to measure partic ulate matter, as described in §86.210 of this chapter.

(f) Special Test Procedures . The Administrator may prescribe te st procedures, other than those set forth in this subpart B, for any vehicle which is not susceptible to satisfactory testing and/or testing results by the procedures set forth in this part. For example, special test procedures may be used for advanced technology vehicles, includ ing, but not limited to fuel cell vehicles, hybrid electric vehicles using hydrauli c energy storage, and vehicles equipped with hydrogen internal combustion engines. Additionally, the Admi nistrator may conduct fuel economy and carbonrelated exhaust emission testing us ing the special test procedures approved for a specific vehicle.



### § 600.112-08 Exhaust sample analysis.

The exhaust sample analysis must be perfor med according to §86.140 or §86.240 of this chapter, as applicable.



### § 600.113-08 Fuel economy calculations for FTP, HFET, US 06, SC03 and cold temperature FTP tests.

The Administrator will use the calculation procedur e set forth in this paragraph for all official EPA testing of vehicles fueled with gasoline, diesel, alcohol-based or natural gas fuel. TheFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 175 of 315 calculations of the weighted fu el economy values require inpu t of the weighted grams/mile values for total hydrocarbons (HC), carbon monoxide (CO), a nd carbon dioxide (CO 2 ); and, additionally for methanol-fuele d automobiles, methanol (CH 3 OH) and formaldehyde (HCHO); and additionally for natural gas-fueled ve hicles non-methane hydrocarbons (NMHC) and methane (CH 4 ) for the FTP, HFET, US06, SC03 and cold temperature FTP tests. Additionally, the specific gravity, carbon wei ght fraction and net heating valu e of the test fuel must be determined. The FTP, HFET, US06, SC03 and cold temperature FTP fuel economy values shall be calculated as specified in this section. An example appears in Appendix II of this part.

(a) Calculate the FTP fuel economy.

(1) Calculate the weighted grams/mile values for the FTP test for HC, CO and CO 2 ; and, additionally for methanol -fueled automobiles, CH 3 OH and HCHO; and additionally for natural gas-fueled automobiles NMHC and CH 4 as specified in §86.144 of th is chapter. Measure and record the test fuel's properties as speci fied in paragraph (f) of this section.

(2) Calculate separately the grams/mile values fo r the cold transient phase, stabilized phase and hot transient phase of the FTP test. For vehicles with more than one source of propulsion energy, one of which is a rechargeable energy storage syst em, or vehicles with sp ecial features that the Administrator determines may have a rechargeab le energy source, whose charge can vary during the test, calculate separately the grams/mile values for the cold transient phase, stabilized phase, hot transient phase and hot stab ilized phase of the FTP test.

(b) Calculate the HFET fuel economy.

(1) Calculate the mass values for the highway fuel economy test for HC, CO and CO 2 , and where applicable CH 3 OH, HCHO, NMHC and CH 4 , as specified in §86.144-94(b) of this chapter. Measure and record the test fuel's properties as specified in paragra ph (f) of this section.

(2) Calculate the grams/mile values for the highway fuel economy test for HC, CO and CO 2 , and where applicable CH 3 OH, HCHO, NMHC and CH 4 , by dividing the mass values obtained in paragraph (b)(1) of this section, by the actual driving distance, measured in m iles, as specified in §86.135 of this chapter.

(c) Calculate the cold temperature FTP fuel economy.

(1) Calculate the weighted grams/mile values fo r the cold temperature FTP test for HC, CO and CO 2 ; and, additionally for methanol-fueled automobiles, CH 3 OH and HCHO; and additionally for natural gas-fueled automobiles NMHC and CH 4 as specified in §86.244 of this chapter. For 2008 through 2010 diesel-fueled vehicles, HC measurement is optional.

(2) Calculate separately the grams/mile values fo r the cold transient phase, stabilized phase and hot transient phase of the cold temperat ure FTP test in §86.244 of this chapter.

(3) Measure and record the test fuel's properties as specified in paragra ph (f) of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 176 of 315 (d) Calculate the US06 fuel economy.

(1) Calculate the total grams/mile values for the US06 test for HC, CO and CO 2 ; and where applicable CH 3 OH, HCHO, NMHC and CH 4 , as specified in §86.164 of this chapter.

(2) Calculate separately the grams/mile values for HC, CO and CO 2 ; and where applicable CH 3 OH, HCHO, NMHC and CH 4 , for both the US06 City phase and the US06 Highway phase of the US06 test as specified in §86.164 of this chapter. In li eu of directly measuring the emissions of the separate city and highway phases of the US06 test according to the provisions of §86.159 of this chapter, the manuf acturer may, with the advance approval of the Administrator and using good engineering judgment, optionally an alytically determine the grams/mile values for the city and highway phases of the US06 test . To analytically dete rmine US06 City and US06 Highway phase emission results, the manufact urer shall multiply the US06 total grams/mile values determined in paragraph (d)(1) of this se ction by the estimated proportion of fuel use for the city and highway phases relative to the tota l US06 fuel use. The manufacturer may estimate the proportion of fuel use for the US06 City and US06 Highway phases by using modal HC, CO, and CO 2 emissions data, or by using appr opriate OBD data (e.g., fuel fl ow rate in grams of fuel per second), or another method approved by the Administrator.

(3) Measure and record the test fuel's properties as specified in paragra ph (f) of this section.

(e) Calculate the grams/mile values for the SC03 test for HC, CO and CO 2 ; and additionally for methanol-fueled automobiles, CH 3 OH and HCHO; and additionally for natural gas-fueled automobiles NMHC and CH 4 as specified in §86.144 of this chap ter. Measure and record the test fuel's properties as specified in paragraph (f) of this section.

(f)(1) Gasoline test fuel properties shall be determ ined by analysis of a fuel sample taken from the fuel supply. A sample shall be taken after e ach addition of fresh fuel to the fuel supply. Additionally, the fuel shall be resampled once a month to account for any fuel property changes during storage. Less frequent resampling may be permitted if EPA concludes, on the basis of manufacturer-supplied data, that the properties of te st fuel in the manufact urer's storage facility will remain stable for a period longer than one month. The fuel samples shall be analyzed to determine the following fuel properties:

(i) Specific gravity per ASTM D 1298–99 (incorporated by reference in §600.011).

(ii) Carbon weight fraction per ASTM D 3343–05 (incorporated by reference in §600.011).

(iii) Net heating value (Btu /lb) per ASTM D 3338–09 (incorpor ated by reference in §600.011).

(2) Methanol test fuel shall be analyzed to determine the following fuel properties:

(i) Specific gravity using either: (A) ASTM D 1298–99 or ASTM D 1298–99 (incorporated by reference in §600.011). SG = SG g × volume fraction gasoline + SG m × volume fraction methanol.

(ii)(A) Carbon weight fraction using the following equation:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 177 of 315 CWF = CWF g × MF g + 0.375 × MF m

Where:

CWF g = Carbon weight fraction of gasoline portion of blend per ASTM D 3343–05 (incorporated by reference in §600.011)

.

MF g =Mass fraction gasoline=(G × SG g )/(G × SG g + M × SG m )

MF m =Mass fraction methanol=(M × SG m )/(G × SG g + M × SG m )

Where:

G=Volume fraction gasoline.

M=Volume fraction methanol.

SG g =Specific gravity of gasoline as measured by ASTM D 1298–99 (incorporated by reference in §600.011).
SG m =Specific gravity of methanol as measured by ASTM D 1298–99 (incorporated by reference in §600.011). (B) Upon the approval of the Administrator, other pr ocedures to measure th e carbon weight fraction of the fuel blend may be used if the manufacturer can show that the procedures are superior to or equally as accurate as those speci fied in this paragraph (f)(2)(ii).

(iii) Net heating value (BTU /lb) per ASTM D 240–09 (incorpor ated by reference in §600.011). (3) Natural gas test fuel shall be analyzed to determine the following fuel properties:

(i) Fuel composition per ASTM D 1945–03 (incorporated by refere nce in §600.011). (ii) Specific gravity (based on fuel composition per AS TM D 1945–03 (incorporated by reference in §600.011).

(iii) Carbon weight fraction base d on the carbon contained only in the HC constituents of the fuel=weight of carbon in HC constituents divided by the total weight of fuel.

(iv) Carbon weight fracti on of fuel=total weight of carbon in the fuel ( i.e. , includes carbon contained in HC and in CO 2 ) divided by total weight of fuel.

(g) Calculate separate FTP, highway, US06, SC03 and Cold temperature FTP fuel economy from the grams/mile values for total HC, CO, CO 2 and, where applicable, CH 3 OH, HCHO, NMHC and CH 4 and, the test fuel's specific gravity, carbon weight fraction, net heating value, and additionally for natural gas, the test fuel's composition. The emission values (obtained per paragraph (a) through (e) of this se ction, as applicable) used in ea ch calculation of this section shall be rounded in accordance wi th §86.1837 of this chapter. The CO 2 values (obtained per this section, as applicable) used in each calculation of th is section shall be rounded to the nearest gram/mile. The specific gravity and the carbon weight fraction (obtai ned per paragraph (f) of this section) shall be recorded using three places to the right of the decimal point. The net heating value (obtained per paragraph (f) of this section) shall be record ed to the nearest whole Btu/lb.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 178 of 315 (h)(1) For gasoline-fueled automobiles tested on a test fuel specified in §86.113, the fuel economy in miles per gallon is to be calculated using the following equation:

mpg = (5174 × 10 4 × CWF × SG)/[((CWF × HC) + (0.429 × CO) + (0.273 × CO 2 )) × ((0.6 × SG × NHV) + 5471)]

Where:

HC = Grams/mile HC as obtained in paragraph (g) of this section.

CO = Grams/mile CO as obtained in paragraph (g) of this section.

CO 2 = Grams/mile CO 2 as obtained in paragraph (g) of this section.

CWF = Carbon weight fraction of test fuel as obtained in paragraph (g) of this section.

NHV = Net heating value by mass of test fuel as obtained in paragraph (g) of this section.

SG = Specific gravity of test fuel as obtained in paragraph (g) of this section.

(2) Round the calculated result to the nearest 0.1 m iles per gallon.

(i)(1) For diesel-fueled automobiles, calculate the fuel economy in miles per gallon of diesel fuel by dividing 2778 by the sum of three terms:

(i) (A) 0.866 multiplied by HC (in grams/miles as obtained in paragraph (g) of this section) or

(B) zero, in the case of cold FTP diesel tests fo r which HC was not colle cted, as permitted in §600.113–08(c);

(ii) 0.429 multiplied by CO (in grams/mile as obtai ned in paragraph (g) of this section); and

(iii) 0.273 multiplied by CO 2 (in grams/mile as obtained in paragraph (g) of this section).

(2) Round the quotient to the nearest 0.1 mile per gallon.

(j) For methanol-fueled automobiles and automo biles designed to operate on mixtures of gasoline and methanol, the fuel economy in m iles per gallon is to be calculated using the following equation:

mpg = (CWF × SG × 3781.8)/((CWF exHC × HC) + (0.429 × CO) + (0.273 × CO 2 ) + (0.375 × CH 3 OH) + (0.400 × HCHO))

Where:

CWF = Carbon weight fraction of the fuel as determ ined in paragraph (f)(2 )(ii) of this section.

SG = Specific gravity of the fuel as determined in paragraph (f)(2)(i) of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 179 of 315 CWF exHC = Carbon weight fraction of exhaust hydrocarbons = CWF g as determined in (f)(2)(ii) of this section (for M100 fuel, CWF exHC = 0.866).

HC = Grams/mile HC as obtained in paragraph (g) of this section.

CO = Grams/mile CO as obtained in paragraph (g) of this section.

CO 2 = Grams/mile CO 2 as obtained in paragraph (g) of this section.

CH 3 OH = Grams/mile CH 3 OH (methanol) as obtained in paragraph (d) of this section.

HCHO = Grams/mile HCHO (formaldehyde) as obtained in paragraph (g) of this section.

(k) For automobiles fueled with natural gas, the fuel economy in miles per gallon of natural gas is to be calculated using the following equation:

Where:

mpg e = miles per equivalent gallon of natural gas.

CWF HC/NG = carbon weight fraction based on the hydrocarbon constituents in the natural gas fuel as obtained in paragraph (g) of this section.

D NG = density of the natural gas fuel [grams/ft 3 at 68 °F (20 °C) and 760 mm Hg (101.3 kPa)] pressure as obtained in paragraph (g) of this section.

CH 4 , NMHC, CO, and CO 2 = weighted mass exhaust emissions [grams/mile] for methane, non- methane HC, carbon monoxide, and carbon dioxide as calculated in §600.113.

CWF NMHC = carbon weight fraction of the non-methane HC constituents in the fuel as determined from the speciated fuel composition per paragraph (f)(3) of this section.

CO 2NG = grams of carbon dioxide in the natural gas fuel consumed per mile of travel.

Where:

= cubic feet of natural gas fuel consumed per mile.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 180 of 315 CWF NG = the carbon weight fraction of the natural gas fuel as calculated in paragraph (f) of this section.

WF CO2 = weight fraction carbon dioxide of the natural gas fu el calculated using the mole fractions and molecular weights of the natural gas fuel constituents per ASTM D 1945–03 (incorporated by reference in §600.011).

(l) Equations for fuels other than those specified in paragraphs (h) through (k) of this section may be used with advance EPA approval.

§600.113-12 Fuel economy , CO 2 emissions, and carbon-related exhaust emission calculations for FTP, HFET, US06, SC 03 and cold temperature FTP tests. The Administrator will use the calculation procedure set forth in this paragraph for all official EPA testing of vehicles fueled with ga soline, diesel, alcohol-based or natural gas fuel. The calculations of the weighted fuel econom y and carbon-related exhaust emission values require input of the weighted grams/mile va lues for total hydrocarbons (HC), carbon monoxide (CO), and carbon dioxide (CO 2 ); and, additionally for methanol -fueled automobiles, methanol (CH 3 OH) and formaldehyde (HCHO); and, additionally for ethanol-fueled automobiles, methanol (CH 3 OH), ethanol (C 2 H 5 OH), acetaldehyde (C 2 H 4 O), and formaldehyde (HCHO); and additionally for natural gas-fu eled vehicles, non-methane hydrocarbons (NMHC) and methane (CH 4 ). For manufacturers selecting the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chapter the calculations of the carbon-related exhaust emissions require the input of grams/mile values for nitrous oxide (N 2 O) and methane (CH 4 ). Emissions shall be determined for the FTP, HFET, US06, SC03 and co ld temperature FTP tests. Additionally, the specific gravity, carbon weight frac tion and net heating value of the test fuel must be determined. The FTP, HFET, US06, SC03 and cold temper ature FTP fuel economy and carbon-related exhaust emission values shall be calculated as specified in this section. An example fuel economy calculation appears in Appendix II of this part. (a) Calculate the FTP fuel economy. (1) Calculate the weighted grams/mile values for the FTP test for CO 2 , HC, and CO, and where applicable, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC, N 2 O and CH 4 as specified in §86.144-94(b) of this chapter. Meas ure and record the test fuel's properties as specified in paragraph (f) of this section. (2) Calculate separately the grams/mile values for the cold transient phase, stabilized phase and hot transient phase of the FTP test. For vehicles with more than one source of propulsion energy, one of which is a rechargeable en ergy storage system, or vehicles with special features that the Administrator determines may have a rechargeable energy source, whose charge can vary during the test, calculate separately the grams/mile values for the cold transient phase, stabilized phase, hot transient phase a nd hot stabilized phase of the FTP test. (b) Calculate the HFET fuel economy. (1) Calculate the mass values for the highway fuel economy test for HC, CO and CO 2 , and where applicable, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC, N 2 O and CH 4 as specified in §86.144-94(b) of this chapter. Meas ure and record the test fuel's properties as specified in paragraph (f) of this section. (2) Calculate the grams/mile values for the highway fuel economy test for HC, CO and CO 2 , and where applicable CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC, N 2 O and CH 4 by dividing the mass values obtained in paragraph (b)(1) of this section, by the actu al driving distance, measured in miles, as specif ied in §86.135 of this chapter. (c) Calculate the cold temperature FTP fuel economy.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 181 of 315 (1) Calculate the weighted grams/mile values for the cold temperature FTP test for HC, CO and CO 2 , and where applicable, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC, N 2 O and CH 4 as specified in §86.144-94(b) of this chapter. Fo r 2008 through 2010 diesel-fueled vehicles, HC measurement is optional. (2) Calculate separately the grams/mile values for the cold transient phase, stabilized phase and hot transient phase of the cold temperature FTP test in §86.244 of this chapter. (3) Measure and record the test fuel's propert ies as specified in paragraph (f) of this section. (d) Calculate the US06 fuel economy. (1) Calculate the total grams/mile values for the US06 test for HC, CO and CO 2 , and where applicable, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC, N 2 O and CH 4 as specified in §86.144-94(b) of this chapter. (2) Calculate separately the grams/mile values for HC, CO and CO 2 , and where applicable, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC, N 2 O and CH 4 , for both the US06 City phase and the US06 Highway phase of the US06 test as specified in §86.164 of this chapter. In lieu of directly measuring the emissions of the se parate city and highway phases of the US06 test according to the provisions of §86.159 of this ch apter, the manufacturer may, with the advance approval of the Administrator and using good e ngineering judgment, optionally analytically determine the grams/mile values for the ci ty and highway phases of the US06 test. To analytically determine US06 C ity and US06 Highway phase emission results, the manufacturer shall multiply the US06 total grams/mile values de termined in paragraph (d)(1) of this section by the estimated proportion of fuel use for the city and highway pha ses relative to the total US06 fuel use. The manufacturer may estimate the proportion of fuel use for the US06 City and US06 Highway phases by using modal CO 2 , HC, and CO emissions data, or by using appropriate OBD data (e.g., fuel flow rate in grams of fuel per second), or another method approved by the Administrator. (3) Measure and record the test fuel's propert ies as specified in paragraph (f) of this section. (e) Calculate the SC03 fuel economy. (1) Calculate the grams/mile values for the SC03 test for HC, CO and CO 2 , and where applicable, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC, N 2 O and CH 4 as specified in §86.144- 94(b) of this chapter. (2) Measure and record the test fuel's propert ies as specified in paragraph (f) of this section. (f) Fuel property determination and analysis. (1) Gasoline test fuel properties shall be de termined by analysis of a fuel sample taken from the fuel supply. A sample shall be taken afte r each addition of fresh fuel to the fuel supply. Additionally, the fuel shall be resampled once a month to account for any fuel property changes during storage. Less frequent resampling may be permitted if EPA concludes, on the basis of manufacturer-supplied data, that the properties of te st fuel in the manufact urer's storage facility will remain stable for a period longer than one month. The fuel samples shall be analyzed to determine the following fuel properties: (i) Specific gravity measured using AS TM D 1298–99 (incorporated by reference in §600.011). (ii) Carbon weight fraction measured using ASTM D 3343–05 (incorporated by reference in §600.011).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 182 of 315 (iii) Net heating value (Btu /lb) determined using ASTM D 3338–09 (incorporated by reference in §600.011). (2) Methanol test fuel shall be analyzed to determine the following fuel properties: (i) Specific gravity using either AS TM D 1298–99 (incorporated by reference in §600.011) for the blend, or ASTM D 1298–99 (inc orporated by reference at §600.011) for the gasoline fuel component and also for the metha nol fuel component and combining as follows. SG = SGg × volume fraction gasoline + SGm × volume fraction methanol. (ii)(A) Carbon weight fraction using the following equation: CWF = CWFg × MFg+ 0.375 × MFm Where: CWFg= Carbon weight fraction of gasoline po rtion of blend meas ured using ASTM D 3343–05 (incorporated by reference in §600.011). MFg=Mass fraction gasoline=(G × SGg)/(G × SGg + M × SGm) MFm=Mass fraction methanol=(M × SGm)/(G × SGg + M × SGm) Where: G=Volume fraction gasoline. M=Volume fraction methanol. SGg=Specific gravity of gasoline as meas ured using ASTM D 1298–99 (incorporated by reference in §600.011). SGm=Specific gravity of methanol as m easured using ASTM D 1298–99 (incorporated by reference in §600.011). (B) Upon the approval of the Administrator, other procedures to measure the carbon weight fraction of the fuel blend may be used if the manufacturer can s how that the procedures are superior to or equally as accurate as those specified in this paragraph (f)(2)(ii). (3) Natural gas test fuel shall be analyzed to determine the following fuel properties: (i) Fuel composition measured using ASTM D 1945–03 (incorporatedby reference in §600.011). (ii) Specific gravity measured as ba sed on fuel composition per ASTM D 1945–03 (incorporated by refe rence in §600.011). (iii) Carbon weight fraction, based on the carbon contained only in the hydrocarbon constituents of the fuel. This equals the weight of carbon in the hydrocarb on constituents divided by the total weight of fuel. (iv) Carbon weight fraction of th e fuel, which equals the total weight of carbon in the fuel (i.e. , includes carbon containe d in hydrocarbons and in CO 2 ) divided by the total weight of fuel. (4) Ethanol test fuel shall be analyzed to determine the following fuel properties: (i) Specific gravity using either AS TM D 1298–99 (incorporated by reference in §600.011) for the blend, or ASTM D 1298–99 (incor porated by reference at §600.011) for the gasoline fuel component and also for the metha nol fuel component and combining as follows: SG = SGg × volume fraction gasoline + SGm × volume fraction ethanol. (ii)(A) Carbon weight fraction using the following equation: CWF = CWFg × MFg+ 0.521 × MFe Where: CWFg= Carbon weight fraction of gasoline po rtion of blend meas ured using ASTM D 3343–05 (incorporated by reference in §600.011). MFg=Mass fraction gasoline=(G × SGg)/(G × SGg+ E × SGm) MFe=Mass fraction ethanol=(E × SGm)/(G × SGg+ E × SGm)Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 183 of 315 Where: G=Volume fraction gasoline. E=Volume fraction ethanol. SGg=Specific gravity of gasoline as meas ured using ASTM D 1298–99 (incorporated by reference in §600.011). SGm=Specific gravity of ethanol as meas ured using ASTM D 1298–99 (incorporated by reference in §600.011). (B) Upon the approval of the Administrator, other procedures to measure the carbon weight fraction of the fuel blend may be used if the manufacturer can s how that the procedures are superior to or equally as accurate as those specified in this paragraph (f)(2)(ii). (g) Calculate separate FTP, highway, US 06, SC03 and Cold temperature FTP fuel economy and carbon-related exhaust emissions from the grams/mile values for total HC, CO, CO 2 and, where applicable, CH 3 OH, C 2 H 5 OH, C 2 H 4 O, HCHO, NMHC, N 2 O, and CH 4 , and the test fuel's specific gravity, carbon weight fraction, net heating valu e, and additionally for natural gas, the test fuel's composition. (1) Emission values for fuel economy calculations . The emission values (obtained per paragraph (a) through (e) of this section, as applicable) used in the calculations of fuel economy in this section shall be rounded in accordance with § 86.1837 of this chapter. The CO 2 values (obtained per this section, as a pplicable) used in each calculation of fuel economy in this section shall be rounded to the nearest gram/mile. (2) Emission values for carbon-rela ted exhaust emission calculations

. (i) If the emission values ( obtained per paragraph (a) thr ough (e) of this section, as applicable) were obtained from testing with aged exhaust emission control components as allowed under §86.1823 of this chapter, then these test values shall be used in the calculations of carbon-related exhaust emissions in this section. (ii) If the emission values (obtained per pa ragraph (a) through (e) of this section, as applicable) were not obtained from testing with aged exhaust emission control components as allowed under §86.1823 of this chapter, then th ese test values shall be adjusted by the appropriate deterioration factor determined acco rding to §86.1823 of this chapter before being used in the calculations of carbon-related exhaust emissions in this sectio n. For vehicles within a test group, the appropriate NMOG de terioration factor may be used in lieu of the deterioration factors for CH 3 OH, C 2 H 5 OH, and/or C 2 H 4 O emissions. (iii) The emission values determined in para graph (g)(2)(iv)(A) or (B) of this section shall be rounded in accordance wi th §86.1837 of this chapter. The CO 2 values (obtained per this section, as applicable) used in each calculation of carbon-related exhaust emissions in this section shall be rounded to the nearest gram/mile. (iv) For manufacturers complying with the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chapter, N 2 O and CH 4 emission values for use in the calculation of carbon-related exhaust emissions in this section shall be the values determined according to paragraph (g)(2)(iv)(A), (B), or (C) of this section. (A) The FTP and HFET test values as determ ined for the emission data vehicle according to the provisions of §86.1835 of this chapter. These values shall apply to a ll vehicles tested under this section that are included in the test group represented by the emission data vehicle and shall be adjusted by the appropriate deterioration factor determined according to §86.1823 of this chapter before being used in the calculations of carbon-related exhaust emissions in this section, except that in-use test data shall not be adjusted by a deterioration factor.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 184 of 315 (B) The FTP and HFET test values as dete rmined according to testing conducted under the provisions of this subpart. These values shall be adjusted by the appropriate deterioration factor determined according to §86.1823 of this chap ter before being used in the calculations of carbon-related exhaust emissions in th is section, except that in-use te st data shall not be adjusted by a deterioration factor. (C) For the 2012 through 2014 model years onl y, manufacturers may use an assigned value of 0.010 g/mi for N 2 O FTP and HFET test values. This valu e is not required to be adjusted by a deterioration factor. (3) The specific gravity and the carbon weight fraction (obtained per pa ragraph (f) of this section) shall be recorded using three places to the right of the decimal point. The net heating value (obtained per paragraph (f) of this section) shall be record ed to the nearest whole Btu/lb. (4) For the purpose of determin ing the applicable in-use CO 2 exhaust emission standard under §86.1818 of this chapter, the combined ci ty/highway carbon-related exhaust emission value for a vehicle subconfiguration is calculated by arithmetically averaging the FTP-based city and HFET-based highway carbon-related exhaus t emission values, as determined in §600.113- 12(a) and (b) of this secti on for the subconfiguration, wei ghted 0.55 and 0.45 respectively, and rounded to the nearest tenth of a gram per mile. (h)(1) For gasoline-fueled automobiles tested on a test fuel specified in §86.113 of this chapter, the fuel economy in miles per gallon is to be calculated using the following equation and rounded to the nearest 0.1 miles per gallon: mpg = (5174 × 10 4 × CWF × SG)/[((CWF × HC) + (0.429 × CO) + (0.273 × CO 2 )) × ((0.6 × SG × NHV) + 5471)] Where: HC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragraph (g) of this section. CWF = Carbon weight fraction of test fuel as obtained in paragraph (g) of this section. NHV = Net heating value by mass of test fuel as obtained in paragraph (g) of this section. SG = Specific gravity of test fuel as obt ained in paragraph (g ) of this section. (2)(i) For 2012 and later model year gasoline-fueled automobiles tested on a test fuel specified in §86.113 of this chapter, the carbon-related exhaust emissi ons in grams per mile is to be calculated using the following equation a nd rounded to the nearest 1 gram per mile: CREE = (CWF/0.273×HC) + (1.571×CO) + CO 2 Where: CREE means the carbon-related exhaus t emissions as defined in §600.002. HC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragraph (g) of this section. CWF = Carbon weight fraction of test fuel as obtained in paragraph (g) of this section. (ii) For manufacturers complying with the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chapte r, the carbon-related exhaust emissions in grams per mile for 2012 and later model year gaso line-fueled automobiles tested on a test fuel specified in §86.113 of this chapter is to be calculated us ing the following equation and rounded to the nearest 1 gram per mile: CREE = [(CWF/0.273)×NMHC] + (1.571×CO) + CO 2 + (298×N 2 O) + (25×CH 4 ) Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 185 of 315 CREE means the carbon-related exhaus t emissions as defined in §600.002-08. NMHC = Grams/mile NMHC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragraph (g) of this section. N 2 O= Grams/mile N 2 O as obtained in paragraph (g) of this section. CH 4 = Grams/mile CH 4 as obtained in paragra ph (g) of this section. CWF = Carbon weight fraction of test fuel as obtained in paragraph (g) of this section. (i)(1) For diesel-fueled automobiles, calcula te the fuel economy in miles per gallon of diesel fuel by dividing 2778 by the sum of thr ee terms and rounding the quotient to the nearest 0.1 mile per gallon: (i)(A) 0.866 multiplied by HC (in grams/mile s as obtained in paragraph (g) of this section), or (B) Zero, in the case of cold FTP diesel tests for which HC was not collected, as permitted in §600.113–08(c); (ii) 0.429 multiplied by CO (in grams/mile as obt ained in paragraph (g) of this section); and (iii) 0.273 multiplied by CO 2 (in grams/mile as obtained in paragraph (g) of this section). (2)(i) For 2012 and later model year diesel-fueled automobiles, the carbon-related exhaust emissions in grams per mile is to be calculated using the follo wing equation and rounded to the nearest 1 gram per mile: CREE = (3.172×HC) + (1.571×CO) + CO 2 Where: CREE means the carbon-related exhaus t emissions as defined in §600.002-08. HC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragraph (g) of this section. (ii) For manufacturers complying with the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chapte r, the carbon-related exhaust emissions in grams per mile for 2012 and later model year diesel-fueled autom obiles is to be calculated using the following equation and rounded to the nearest 1 gram per mile: CREE = (3.172×NMHC) + (1.571×CO) + CO 2 + (298×N 2 O) + (25×CH 4 ) Where: CREE means the carbon-related exhaus t emissions as defined in §600.002-08. NMHC = Grams/mile NMHC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragra ph (g) of this section. N 2 O= Grams/mile N 2 O as obtained in paragraph (g) of this section. CH 4 = Grams/mile CH 4 as obtained in paragra ph (g) of this section. (j)(1) For methanol-fueled automobiles and automobiles designed to operate on mixtures of gasoline and methanol, the fuel economy in miles per gallon is to be calculated using the following equation: mpg = (CWF×SG×3781.8)/((CWF exHC ×HC) + (0.429×CO) + (0.273×CO 2 ) + (0.375×CH 3 OH) + (0.400×HCHO)) Where: CWF = Carbon weight fraction of the fuel as de termined in paragraph (f)(2)(ii) of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 186 of 315 SG = Specific gravity of the fuel as determin ed in paragraph (f)(2)(i ) of this section. CWF exHC = Carbon weight fraction of exhaust hydrocarbons = CWF as determined in paragraph (f)(2)(ii) of this section (for M100 fuel, CWF exHC = 0.866). HC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO2 as obtained in paragraph (g) of this section. CH 3 OH = Grams/mile CH 3 OH (methanol) as obtained in pa ragraph (d) of this section. HCHO = Grams/mile HCHO (formaldehyde) as obt ained in paragraph (g ) of this section. (2)(i) For 2012 and later m odel year methanol-fueled automobiles and automobiles designed to operate on mixtures of gasoline an d methanol, the carbon-related exhaust emissions in grams per mile is to be calculated using th e following equation and ro unded to the nearest 1 gram per mile: CREE = (CWF exHC /0.273×HC) + (1.571×CO) + (1.374×CH 3 OH) + (1.466×HCHO) + CO 2 Where: CREE means the carbon-related exhaust em ission value as defined in §600.002-08. CWF exHC = Carbon weight fraction of exhaust hydrocarbons = CWF as determined in paragraph (f)(2)(ii) of this section (for M100 fuel, CWF exHC = 0.866). HC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragra ph (g) of this section. CH 3 OH = Grams/mile CH 3 OH (methanol) as obtained in pa ragraph (d) of this section. HCHO = Grams/mile HCHO (formaldehyde) as obt ained in paragraph (g ) of this section. (ii) For manufacturers complying with the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chapte r, the carbon-related exhaust emissions in grams per mile for 2012 and later model year methanol-fueled au tomobiles and automobiles designed to operate on mixtures of gasoline and methanol is to be calculated using the following equation and rounded to the nearest 1 gram per mile: CREE = [(CWF exHC /0.273)×NMHC] + ( 1.571×CO) + (1.374×CH 3 OH) + (1.466×HCHO) + CO 2 + (298×N 2 O) + (25×CH 4 ) Where: CREE means the carbon-related exhaust em ission value as defined in §600.002-08. CWF exHC = Carbon weight fraction of exhaust hydrocarbons = CWF as determined in paragraph (f)(2)(ii) of this section (for M100 fuel, CWF exHC = 0.866). NMHC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO2 as obtained in paragraph (g) of this section. CH 3 OH = Grams/mile CH 3 OH (methanol) as obtained in pa ragraph (d) of this section. HCHO = Grams/mile HCHO (formaldehyde) as obt ained in paragraph (g ) of this section. N 2 O = Grams/mile N 2 O as obtained in paragraph (g) of this section. CH 4 = Grams/mile CH 4 as obtained in paragra ph (g) of this section. (k)(1) For automobiles fueled with natural ga s, the fuel economy in miles per gallon of natural gas is to be calculated using the following equation: 

## ( )( )( ) ( ) ( )
NG NMHC NG NGHC

e COCO CO NMHC CWF CH D CWF mpg

2 2 4 / 273.0 429.0 749.0 5.121

−×+×+× +× × ×

=Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 187 of 315 Where:
mpg e =miles per equivalent gallon of natural gas. CWF HC/NG =carbon weight fraction based on the hydro carbon constituents in the natural gas fuel as obtained in paragraph (g) of this section. D NG =density of the natural gas fuel [grams/ft 3 at 68 °F (20 °C) and 760 mm Hg (101.3 kPa)] pressure as obtained in pa ragraph (g) of this section. CH 4 , NMHC, CO, and CO 2 = weighted mass exhaust emissions [grams/mile] for methane, non-methane HC, carbon monoxide, and carbon dioxide as calculated in §600.113. CWF NMHC = carbon weight fraction of the non-methan e HC constituents in the fuel as determined from the speciated fuel compos ition per paragraph (f)(3) of this section. CO 2NG = grams of carbon dioxide in the natural ga s fuel consumed per mile of travel. CO 2NG = FC NG × D NG × WF CO2 Where: 

### ( ) ( ) ( ) ( )

NG NG 2 NMHC 4 NG DCWF CO0.273 CO0.429 NMHC CWF CH0.749 FC
× × + × + × +×

=
mileper consumed fuel gas natural offeet cubic = Where: CWF NG = the carbon weight fraction of the natural gas fuel as calculate d in paragraph (f) of this section. WF CO2 = weight fraction carbon dioxide of the natu ral gas fuel calculated using the mole fractions and molecular weight s of the natural gas fuel constituents per ASTM D 1945–03 (incorporated by refe rence in §600.011). (2)(i) For automobiles fueled with natural gas, the carbon-related exhaust emissions in grams per mile is to be calculated for 2012 a nd later model year vehicles using the following equation and rounded to the nearest 1 gram per mile: CREE = 2.743×CH 4 + CWF NMHC /0.273×NMHC + 1.571×CO + CO 2 Where: CREE means the carbon-related exhaust emi ssion value as defined in §600.002-08. CH 4 = Grams/mile CH 4 as obtained in paragra ph (g) of this section. NMHC = Grams/mile NMHC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragraph (g) of this section. CWF NMHC = carbon weight fraction of the non-methan e HC constituents in the fuel as determined from the speciated fuel compos ition per paragraph (f)(3) of this section. (ii) For manufacturers complying with the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chap ter, the carbon-related exhaust emissions in grams per mile for 2012 and later model year automobiles fueled w ith natural gas is to be calculated using the following equation and rounded to the nearest 1 gram per mile: CREE = (25×CH 4 )+ [(CWF NMHC /0.273)×NMHC] + (1.571×CO) + CO 2 + (298×N 2 O) Where: CREE means the carbon-related exhaust emi ssion value as defined in §600.002-08. CH 4 = Grams/mile CH 4 as obtained in paragra ph (g) of this section. NMHC = Grams/mile NMHC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragra ph (g) of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 188 of 315 CWF NMHC = carbon weight fraction of the non-methan e HC constituents in the fuel as determined from the speciated fuel compos ition per paragraph (f)(3) of this section. N 2 O = Grams/mile N 2 O as obtained in paragraph (g) of this section. (l)(1) For ethanol-fueled automobiles and automobiles designed to operate on mixtures of gasoline and ethanol, the fuel economy in m iles per gallon is to be calculated using the following equation: mpg = (CWF × SG × 3781.8)/((CWF exHC × HC) + (0.429 × CO) + (0.273 × CO 2 ) + (0.375 × CH 3 OH) + (0.400 × HCHO) + (0.521 × C 2 H 5 OH) + (0.545 × C 2 H 4 O)) Where: CWF = Carbon weight fraction of the fuel as determined in paragraph (f)(4) of this section. SG = Specific gravity of the fuel as determ ined in paragraph (f)(4 ) of this section. CWF exHC = Carbon weight fraction of exhaust hydrocarbons = CWF as determined in paragraph (f)(4) of this section. HC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO 2 as obtained in paragra ph (g) of this section. CH 3 OH = Grams/mile CH 3 OH (methanol) as obtained in pa ragraph (d) of this section. HCHO = Grams/mile HCHO (formaldehyde) as obt ained in paragraph (g ) of this section. C 2 H 5 OH = Grams/mile C 2 H 5 OH (ethanol) as obtained in paragraph (d) of this section. C 2 H 4 O = Grams/mile C 2 H 4 O (acetaldehyde) as obtained in paragraph (d) of this section. (2)(i) For 2012 and later m odel year ethanol-fueled au tomobiles and automobiles designed to operate on mixtures of gasoline and ethanol, the carbon- related exhaust emissions in grams per mile is to be calc ulated using the following equati on and rounded to the nearest 1 gram per mile: CREE = (CWF exHC /0.273×HC) + (1.571×CO) + (1.374×CH 3 OH) + (1.466×HCHO) + (1.911×C 2 H 5 OH) + (1.998×C 2 H 4 O) + CO 2 Where: CREE means the carbon-related exhaust emi ssion value as defined in §600.002-08. CWF exHC = Carbon weight fraction of exhaust hydrocarbons = CWF as determined in paragraph (f)(4) of this section. HC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO2 as obtained in paragraph (g) of this section. CH 3 OH = Grams/mile CH 3 OH (methanol) as obtained in pa ragraph (d) of this section. HCHO = Grams/mile HCHO (formaldehyde) as obt ained in paragraph (g ) of this section. C 2 H 5 OH = Grams/mile C 2 H 5 OH (ethanol) as obtained in paragraph (d) of this section. C 2 H 4 O = Grams/mile C 2 H 4 O (acetaldehyde) as obtained in paragraph (d) of this section. (ii) For manufacturers complying with the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chap ter, the carbon-related exhaust emissions in grams per mile for 2012 and later model year ethanol-fueled auto mobiles and automobiles designed to operate on mixtures of gasoline and etha nol is to be calculated usi ng the following equation and rounded to the nearest 1 gram per mile: CREE = [(CWF exHC /0.273)×NMHC] + (1.571×CO) + (1.374×CH 3 OH) + (1.466×HCHO) + (1.911×C 2 H 5 OH) + (1.998×C 2 H 4 O) + CO 2 + (298×N 2 O) + (25×CH 4 ) Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 189 of 315 CREE means the carbon-related exhaust emi ssion value as defined in §600.002-08. CWF exHC = Carbon weight fraction of exhaust hydrocarbons = CWF as determined in paragraph (f)(4) of this section. NMHC = Grams/mile HC as obtained in paragraph (g) of this section. CO = Grams/mile CO as obtained in paragraph (g) of this section. CO 2 = Grams/mile CO2 as obtained in paragraph (g) of this section. CH 3 OH = Grams/mile CH 3 OH (methanol) as obtained in pa ragraph (d) of this section. HCHO = Grams/mile HCHO (formaldehyde) as obt ained in paragraph (g ) of this section. C 2 H 5 OH = Grams/mile C 2 H 5 OH (ethanol) as obtained in paragraph (d) of this section. C 2 H 4 O = Grams/mile C 2 H 4 O (acetaldehyde) as obtained in paragraph (d) of this section. N 2 O= Grams/mile N 2 O as obtained in paragraph (g) of this section. CH 4 = Grams/mile CH 4 as obtained in paragra ph (g) of this section. (m) CO 2 and carbon-related exhaust emissions for electr ic vehicles, fuel cell vehicles and plugin hybrid electric vehicles . Manufacturers shall determine CO 2 emissions and carbon-related exhaust emissions for electric vehicles, fuel cell vehicles, and plug-in hy brid electric vehicles according to the provisions of this paragraph (m ). Subject to the limitations on the number of vehicles produced and delivered for sale as described in §86.1866 of this chapter, the manufacturer may be allowed to use a value of 0 grams/mile to represent the emissions of fuel cell vehicles and the proportion of electric operation of a electr ic vehicles and plug-in hybrid electric vehicles that is derive d from electricity that is gene rated from sources that are not onboard the vehicle, as described in paragraphs (m)(1) through (3) of this section. For purposes of labeling under this part, the CO 2 emissions for electric vehicles shall be 0 grams per mile. Similarly, the CO 2 emissions for electric vehicles shall be 0 grams per mile for the proportion of electric operation of plug-in hybrid electric vehicles that is deri ved from electricity that is generated from sources that ar e not onboard the vehicle. (1) For 2012 and later model year electric ve hicles, but not including fuel cell vehicles, the carbon-related exhaust emissions in grams per mile is to be calcula ted using the following equation and rounded to the nearest one gram per mile: CREE = CREE UP - CREE GAS Where: CREE means the carbon-related exhaust emissi on value as defined in §600.002, which may be set equal to zero for eligible 2012 throug h 2016 model year electric vehicles for a certain number of vehicles produced and delivered fo r sale as described in §86.1866-12(a) of this chapter. CREE UP = 0.7670 × EC, and CREE GAS = 0.2485 × TargetCO 2 , Where: EC = The vehicle energy consumption in watt-hours per mile, determined according to procedures established by the Administrator under §600.111-08(f). TargetCO 2 = The CO 2 Target Value determined according to §86.1818 of this chapter for passenger automobiles and light trucks, respectively. (2) For 2012 and later model year plug-in hybr id electric vehicles, the carbon-related exhaust emissions in grams per mile is to be calculated using the follo wing equation and rounded to the nearest one gram per mile: CREE = CREE CD + CREE CS , Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 190 of 315 CREE means the carbon-related exhaust emi ssion value as defined in §600.002-08. CREE CS = The carbon-related exhaust emissions determined for charge-sustaining operation according to procedures establis hed by the Administrator under §600.111-08(f); and CREE CD = (ECF × CREE CDEC ) + [(1-ECF) × CREE CDGAS ] Where: CREE CD = The carbon-related exhaust emission s determined for charge-depleting operation determined according to the provisions of this section for the applicable fuel and according to procedures established by the Administrator under §600.111-08(f); CREE CDEC = The carbon-related exhaust emi ssions determined for electricity consumption during charge-depleting operation, which shall be determ ined using the method specified in paragraph (m)(1) of this section and according to procedures established by the Administrator under §600.111-08(f), a nd which may be set equal to ze ro for a certain number of 2012 through 2016 model year vehicles produced a nd delivered for sale as described in §86.1866 of this chapter; CREE CDGAS = The carbon-related exhaust emissions determined for charge-depleting operation determined according to the provisions of this section for the applicable fuel and according to procedures established by the Administrator under §600.111-08(f); and ECF = Electricity consumption factor as determined by the Administrator under §600.111-08(f). (3) For 2012 and later model year fuel cell vehicles, the ca rbon-related exhaust emissions in grams per mile shall be calculate d using the method specified in paragraph (m)(1) of this section, except that CREE UP shall be determined according to procedures established by the Administrator under §600.111-08(f). As describe d in §86.1866 of this ch apter the value of CREE may be set equal to zero for a certain number of 2012 through 2016 model year fuel cell vehicles.

(n) Equations for fuels other than those specified in paragraphs (h) through (l) of th is section may be used with advance EPA approval. Altern ate calculation methods for fuel economy and carbon-related exhaust emissions may be used in lieu of the methods described in this section if shown to yield equivalent or superior results a nd if approved in advance by the Administrator.



### § 600.114-08 Vehicle-specific 5-cycle fu el economy and carb on-related exhaust emission calculations. Paragraphs (a) through (c) of th is section apply to data used for fuel economy labeling under Subpart D of this part. Paragra phs (d) through (f) of this secti on are used to calculate 5-cycle carbon-related exhaust emissions values for th e purpose of determining optional technologybased CO2 emissions credits under the provisi ons of paragraph (d) of §86.1866-12 of this chapter.

(a) City fuel economy. For each vehicle tested under §600.010–08(c)(i) and (ii), determine the 5- cycle city fuel economy using the following equation:

Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 191 of 315 Where:

Where:

Bag Y FE X = the fuel economy in miles per gallon of fuel during the specified bag of the FTP test conducted at an ambient temperature of 75 °F or 20 °F,

and,

Where:

US06 City FE = fuel economy in miles per gallon over the “city” portion of the US06 test,

HFET FE = fuel economy in miles per gallon over the HFET test,

SC03 FE = fuel economy in miles per gallon over the SC03 test.

(b) Highway fuel economy. (1) For each vehicle tested unde r §§600.010–08(a) and (c)(1)(ii)(B), determine the 5-cycle highway fuel economy using the following equation:

Where:

Where:

and,Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 192 of 315 Where:

US06 Highway FE = fuel economy in mile per gallon over the highway portion of the US06 test,

HFET FE = fuel economy in mile per gallon over the HFET test,

SC03 FE = fuel economy in mile per gallon over the SC03 test.

(2) If the condition spec ified in §600.115–08(b)(2)(iii )(B) is met, in lieu of using the calculation in paragraph (b)(1) of this section, the manuf acturer may optionally determine the highway fuel economy using the following modified 5-cycle equa tion which utilizes data from FTP, HFET, and US06 tests, and applies mathematic adju stments for Cold FTP and SC03 conditions:

(i) Perform a US06 test in addi tion to the FTP and HFET tests.

(ii) Determine the 5-cycle highway fuel economy according to the following formula:

Where:

Where:

Bag y FE 75 = the fuel economy in miles per gallon of fuel during the specified bag of the FTP test conducted at an ambient temperature of 75 °F.

Where:

US06 Highway FE = fuel economy in miles per gallon over the highway portion of the US06 test.

HFET FE = fuel economy in miles per gallon over the HFET test.

US06 FE = fuel economy in miles per gallon over the entire US06 test.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 193 of 315 (c) Fuel economy calculations for hybrid electric vehicles. Under the requirements of §86.1811– 04(n), hybrid electric vehicles ar e subject to California test me thods which require FTP emission sampling for the 75 °F FTP test over four phases (bags) of the UDDS (cold-start, transient, warm-start, transient). Optionally, these four pha ses may be combined into two phases (phases 1 + 2 and phases 3 + 4). Calculations for these sampling methods follow.

(1) Four-bag FTP equations. If the 4-bag sampling method is used, manufacturers may use the equations in paragraphs (a) and (b) of this section to determin e city and highway fuel economy estimates. If this method is chosen, it must be used to determine both city and highway fuel economy. Optionally, the following calculations may be used, provi ded that they are used to determine both city and highway fuel economy:

(i) City fuel economy.

Where:

Where:

and

Where:

BagY X FE = the fuel economy in miles per gallon of fuel during the specified bag Y of the FTP test conducted at an ambient temperature X of 75 °F or 20 °F.

US06 City FE = fuel economy in miles per gallon over the city portion of the US06 test.

SC03 FE = fuel economy in miles per gallon over the SC03 test.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 194 of 315 (ii) Highway fuel economy.

Where:

Where:

Where:

US06 Highway FE = fuel economy in miles per gallon over the Highway portion of the US06 test,

HFET FE = fuel economy in miles per gallon over the HFET test,

SC03 FE = fuel economy in miles per gallon over the SC03 test.

(2) Two-bag FTP equations. If the 2-bag sampling method is used for the 75 °F FTP test, it must be used to determine both city and highway fu el economy. The following calculations must be used to determine both city and highway fuel economy:

(i) City fuel economy.

Where:

Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 195 of 315 Where:

Bag y FE 20 = the fuel economy in miles per gallon of fuel during Bag 1 or Bag 3 of the 20 °F FTP test.

Bag x/y FE X = fuel economy in miles per gallon of fuel during combined phases 1 and 2 or phases 3 and 4 of the FTP test conducted at an ambient temperature of 75 °F.

Where:

US06 City FE = fuel economy in miles per gallon over the city portion of the US06 test,

SC03 FE = fuel economy in miles per gallon over the SC03 test.

Bag x/y FE X = fuel economy in miles per gallon of fuel during combined phases 1 and 2 or phases 3 and 4 of the FTP test conducted at an ambient temperature of 75 °F.

(ii) Highway fuel economy.

Where:

Where:

andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 196 of 315 and

Where:

US06 Highway FE = fuel economy in miles per gallon over the city portion of the US06 test,

SC03 FE = fuel economy in miles per gallon over the SC03 test.

Bag y FE 20 = the fuel economy in miles per gallon of fuel during Bag 1 or Bag 3 of the 20 °F FTP test.

Bag x/y FE X = fuel economy in miles per gallon of fuel during phases 1 and 2 or phases 3 and 4 of the FTP test conducted at an ambient temperature of 75 °F.

(3) For hybrid electric vehicles using the modi fied 5-cycle highway calculation in paragraph (b)(2) of this section, the equati on in paragraph (b)(2)(ii)(A) of this section, applies except that the equation for Start Fuel 75 will be replaced with one of the following:

(i) The equation for Start Fuel 75 for hybrids tested according to the 4-bag FTP is:

(ii) The equation for Start Fuel 75 for hybrids tested according to the 2-bag FTP is:

(d) City carbon-related ex haust emission value. For each vehicle tested, determine the 5-cycle city carbon-related exhaust emissi ons using the following equation:

(1) 

## ( ) E RunningCRE StartCREE 0.905 CityCREE + ×= Where: (i) StartCREE = 

## ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × × 4.1 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

## ( )
X X X CREE3Bag CREE1Bag3.6 CREEStart

− ×= Where: Bag Y CREE X = the carbon-related exhaust emissi ons in grams per mile during the specified bag of the FTP test conducted at an ambient temperature of 75 °F or 20 °F. (ii) Running CREE =Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 197 of 315 

### ( ) ( ) ( ) 

### [ ] ( ) ( ) 

### [ ] ( ) ( ) ( ) 

### [ ] CREE Bag20.39 CREE Bag30.61 CREESC03 0.144 CREE Bag30.5 CREE Bag20.50.18 CREECityUS060.11 CREE Bag30.41 CREE Bag20.480.82

75 75 20 20 75

75

×+

×− × + ×+ ×× + × + × + ××

Where: BagY X CREE =carbon-related exhaust emissions in grams per mile over Bag Y at temperature X. US06 City CREE = carbon-related exhaust emi ssions in grams per mile over the “city” portion of the US06 test.

SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test.

(e) Highway carbon-relate d exhaust emissions. For each vehicle tested, determine the 5-cycle highway carbon-related exhaust emissi ons using the following equation: 

## ( ) E RunningCRE StartCREE 0.905E HighwayCRE + ×= Where:
(1) StartCREE = 

## ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × ×= 60 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

## ( )
X X X CREE3Bag CREE1Bag3.6 CREEStart

− ×= (2) Running CREE = 

## ( ) ( ) 

## [ ] ( ) ( ) ( ) 

## [ ] CREE Bag CREE Bag CREESC CREE HFET CREE Highway US

75 75 239.0 361.0 03045.0 21.0 0679.0007.1

×+ ×− × + ×+ ××

Where: BagY X CREE =carbon-related exhaust emissions in grams per mile over Bag Y at temperature X, US06 Highway CREE = carbon-rela ted exhaust emissions in grams per mile over the highway portion of the US06 test, HFET CREE = carbon-related exhaust emissions in grams per mile over the HFET test,

SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test.,

(f) Carbon-related exhaust emissions calcul ations for hybrid electric vehicles. Hybrid electric vehicles shall be tested acco rding to California test met hods which require FTP emission sampling for the 75 °F FTP test over four phases (bags) of the UDDS (cold-start, transient, warm-start, transient). Optionally, these four pha ses may be combined into two phases (phases 1 + 2 and phases 3 + 4). Calculations for these sampling methods follow. (1) Four-bag FTP equations. If the 4-bag sampling method is used, manufacturers may use the equations in paragraphs (a) and (b) of this section to determine city and highway carbonrelated exhaust emissions values. If this method is chosen, it must be used to determine both city and highway carbon-related exhaust emissions. Op tionally, the following calculations may be used, provided that they are used to determin e both city and highway carbon-related exhaust emissions values: (i) City carbon-related exhaust emissions.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 198 of 315 

# ( ) E RunningCRE StartCREE 0.905 CityCREE + ×= Where:
(A) StartCREE = 

# ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × × 4.1 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where:
( 1 ) StartCREE 75 = 

## ( ) ( )
75 75 75 

### 4 29.3753 16.3 CREEBag CREEBag CREEBag CREEBag

− × +

− × and ( 2 ) StartCREE 20 = 

# ( )
20 20 

## 3 16.3 CREEBag CREEBag

− ×= (B) RunningCREE = 

## ( ) ( ) ( ) 

## [ ] ( ) ( ) 

## [ ] ( ) ( ) ( ) 

## [ ] CREE Bag CREE Bag CREESC CREE Bag CREE Bag CREECityUS CREE Bag CREE Bag

75 75 20 20 75

75



### 439.0 361.0 03144.0 35.0 25.018.0 0611.0 341.0 448.082.0

×+ ×− × + ×+ ×× + × + × + ××

Where: US06 Highway CREE = carbon-relate d exhaust emissions in grams per mile over the city portion of the US06 test. US06 Highway CREE = carbon-rela ted exhaust emissions in miles per gallon over the Highway portion of the US06 test. HFET CREE = carbon-related exhaust emissions in grams per mile over the HFET test. SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test. (ii) Highway carbon-relate d exhaust emissions. 

# ( ) E RunningCRE StartCREE 0.905E HighwayCRE + × = Where: (A) StartCREE = 

# ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × ×= 60 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

### ( ) ( )
75 75 75 75 CREE4Bag CREE2Bag3.9 CREE753Bag CREE1Bag3.6 CREEStart

− × +

− ×= and 

# ( )
20 20 20 

## CREE3Bag CREE1Bag3.6 CREEStart

− ×= (B) RunningCREE = 

## ( ) ( ) 

## [ ] ( ) ( ) ( ) 

## [ ] CREE Bag CREE Bag CREESC CREE HFET CREE Highway US

75 75 439.0 361.0 03045.0 21.0 0679.0007.1

×+ ×− × + ×+ ××

Where: US06 Highway CREE = carbon-rela ted exhaust emissions in grams per mile over the Highway portion of the US06 test, HFET CREE = carbon-related exhaust emissions in grams per mile over the HFET test, SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 199 of 315 (2) Two-bag FTP equations. If the 2-bag sampling method is used for the 75 °F FTP test, it must be used to determine both city a nd highway carbon-related exhaust emissions. The following calculations must be used to determ ine both city and highway carbon-related exhaust emissions: (i) City carbon-related exhaust emissions. 

## ( ) E RunningCRE StartCREE 0.905 CityCREE + ×= Where: (A) StartCREE = 

# ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × ×= 4.1 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

## ( )
75 75 75 

### CREE3/4Bag CREE1/2Bag3.6 CREEStart

− ×= and 

# ( )
20 20 20 

### CREE3Bag CREE1Bag3.6 CREEStart

− ×= Where: Bag Y FE 20 = the carbon-related exhaust emissions in grams per mile of fuel during Bag 1 or Bag 3 of the 20 °F FTP test, and Bag X/Y FE 75 = carbon-related exhaust emissions in grams per mile of fuel during combined phases 1 and 2 or phases 3 and 4 of th e FTP test conducted at an ambient temperature of 75 °F. (B) RunningCREE = 

## ( ) ( ) 

## [ ] ( ) ( ) 

## [ ] ( ) 

## [ ] CREE Bag3/4 CREESC03 0.144 CREE Bag30.5 CREE Bag20.50.18 CREECityUS060.10 CREE Bag3/4 0.900.82

75 20 20 75



### − × + ×+ ×× + × + ××

Where: US06 City CREE = carbon-related exhaust emi ssions in grams per mile over the city portion of the US06 test, and SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test, and Bag X/Y FE 75 = carbon-related exhaust emissions in grams per mile of fuel during combined phases 1 and 2 or phases 3 and 4 of th e FTP test conducted at an ambient temperature of 75 °F. (ii) Highway carbon-relate d exhaust emissions. 

## ( ) E RunningCRE StartCREE 0.905E HighwayCRE + ×= Where:
(A) StartCREE = 

## ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × × 60 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

# ( )
75 75 75 

### CREE3/4Bag CREE1/2Bag5.7CREEStart

− ×= andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 200 of 315 

# ( )
20 20 20 

### CREE3Bag CREE1Bag3.6 CREEStart

− ×= (B) RunningCREE = 

## ( ) ( ) 

## [ ] [ ] CREE Bag3/4 CREESC03 0.045 CREE HFET0.21 CREE Highway US060.79 1.007

75 − × + ×+ ××

Where: US06 Highway CREE = carbon-relate d exhaust emissions in grams per mile over the city portion of the US06 test, and SC03 CREE = carbon-related exhaust emissions in gram per mile over the SC03 test, and Bag Y FE 20 = the carbon-related exhaust emissions in grams per mile of fuel during Bag 1 or Bag 3 of the 20 °F FTP test, and Bag X/Y FE 75 = carbon-related exhaust emissions in grams per mile of fuel during phases 1 and 2 or phases 3 and 4 of the FTP test conducted at an ambient temperature of 75 °F.



### § 600.114-12 Vehicle-specific 5-cycle fu el economy and carb on-related exhaust emission calculations. Paragraphs (a) through (c) of th is section apply to data used for fuel economy labeling under subpart D of this part. Paragraphs (d) through (f) of this section are used to calculate 5-cycle CO 2 and carbon-related exhaust emission values for the purpose of determining optional credits for CO 2 -reducing technologies under §86 .1866 of this chapter.

(a) City fuel economy. For each vehicle tested under §600.010(c)(i) and (ii), determine the 5- cycle city fuel economy using the following equation:

Where:

Where:

Where:

Bag Y FE X = the fuel economy in miles per gallon of fuel during the specified bag of the FTP test conducted at an ambient temperature of 75 °F or 20 °F.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 201 of 315 Where:

US06 City FE = fuel economy in miles per gallon over the “city” portion of the US06 test,

HFET FE = fuel economy in miles per gallon over the HFET test,

SC03 FE = fuel economy in miles per gallon over the SC03 test.

(b) Highway fuel economy. (1) For each vehicle tested unde r §600.010–08(a) and (c)(1)(ii)(B), determine the 5-cycle highway fuel economy using the following equation:

Where:

Where:

and,

Where:

US06 Highway FE = fuel economy in mile per gallon over the highway portion of the US06 test,

HFET FE = fuel economy in mile per gallon over the HFET test,

SC03 FE = fuel economy in mile per gallon over the SC03 test.

(2) If the condition spec ified in §600.115–08(b)(2)(iii )(B) is met, in lieu of using the calculation in paragraph (b)(1) of this section, the manuf acturer may optionally determine the highway fuel economy using the following modified 5-cycle equa tion which utilizes data from FTP, HFET, and US06 tests, and applies mathematic adju stments for Cold FTP and SC03 conditions:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 202 of 315 (i) Perform a US06 test in addi tion to the FTP and HFET tests.

(ii) Determine the 5-cycle highway fuel economy according to the following formula:

Where:

Where:

Bag y FE 75 = the fuel economy in miles per gallon of fuel during the specified bag of the FTP test conducted at an ambient temperature of 75 °F.

Where:

US06 Highway FE = fuel economy in miles per gallon over the highway portion of the US06 test.

HFET FE = fuel economy in miles per gallon over the HFET test.

US06 FE = fuel economy in miles per gallon over the entire US06 test.

(c) Fuel economy calculations for hybrid electric vehicles. Under the requirements of §86.1811, hybrid electric vehicles are s ubject to California test met hods which require FTP emission sampling for the 75 °F FTP test over four phases (bags) of the UDDS (cold-start, transient, warm-start, transient). Optionally, these four pha ses may be combined into two phases (phases 1 + 2 and phases 3 + 4). Calculations for these sampling methods follow.

(1) Four-bag FTP equations. If the 4-bag sampling method is used, manufacturers may use the equations in paragraphs (a) and (b) of this section to determin e city and highway fuel economy estimates. If this method is chosen, it must be used to determine both city and highway fuel economy. Optionally, the following calculations may be used, provi ded that they are used to determine both city and highway fuel economy:

(i) City fuel economy.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 203 of 315 Where:

Where:

and

Where:

BagY X FE = the fuel economy in miles per gallon of fuel during the specified bag Y of the FTP test conducted at an ambient temperature X of 75 °F or 20 °F.

US06 City FE = fuel economy in miles per gallon over the city portion of the US06 test.

SC03 FE = fuel economy in miles per gallon over the SC03 test.

(ii) Highway fuel economy.

Where:

Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 204 of 315 Where:

US06 Highway FE = fuel economy in miles per gallon over the Highway portion of the US06 test,

HFET FE = fuel economy in miles per gallon over the HFET test,

SC03 FE = fuel economy in miles per gallon over the SC03 test.

(2) Two-bag FTP equations. If the 2-bag sampling method is used for the 75 °F FTP test, it must be used to determine both city and highway fu el economy. The following calculations must be used to determine both city and highway fuel economy:

(i) City fuel economy.

Where:

Where:

Where:

Bag y FE 20 = the fuel economy in miles per gallon of fuel during Bag 1 or Bag 3 of the 20 °F FTP test.

Bag x/y FE X = fuel economy in miles per gallon of fuel during combined phases 1 and 2 or phases 3 and 4 of the FTP test conducted at an ambient temperature of 75 °F.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 205 of 315 Where:

US06 City FE = fuel economy in miles per gallon over the city portion of the US06 test,

SC03 FE = fuel economy in miles per gallon over the SC03 test.

Bag x/y FE X = fuel economy in miles per gallon of fuel during combined phases 1 and 2 or phases 3 and 4 of the FTP test conducted at an ambient temperature of 75 °F.

(ii) Highway fuel economy.

Where:

Where:

and

and

Where:

US06 Highway FE = fuel economy in miles per gallon over the city portion of the US06 test,

SC03 FE = fuel economy in miles per gallon over the SC03 test.

Bag y FE 20 = the fuel economy in miles per gallon of fuel during Bag 1 or Bag 3 of the 20 °F FTP test.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 206 of 315 Bag x/y FE X = fuel economy in miles per gallon of fuel during phases 1 and 2 or phases 3 and 4 of the FTP test conducted at an ambient temperature of 75 °F.

(3) For hybrid electric vehicles using the modi fied 5-cycle highway calculation in paragraph (b)(2) of this section, the equati on in paragraph (b)(2)(ii)(A) of this section, applies except that the equation for Start Fuel 75 will be replaced with one of the following:

(i) The equation for Start Fuel 75 for hybrids tested according to the 4-bag FTP is:

(ii) The equation for Start Fuel 75 for hybrids tested according to the 2-bag FTP is:

(d) City CO 2 emissions and carbon-re lated exhaust emissions. For each vehicle tested, determine the 5-cycle city CO 2 emissions and carbon-related exhaust emissions using the following equation:

(1) 

## ( ) E RunningCRE StartCREE 0.905 CityCREE + ×= Where: (i) StartCREE = 

## ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × × 4.1 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

## ( )
X X X CREE3Bag CREE1Bag3.6 CREEStart

− ×= Where: Bag Y CREE X = the carbon-related exhaust emissi ons in grams per mile during the specified bag of the FTP test conducted at an ambient temperature of 75 °F or 20 °F. (ii) Running CREE = 

### ( ) ( ) ( ) 

### [ ] ( ) ( ) 

### [ ] ( ) ( ) ( ) 

### [ ] CREE Bag20.39 CREE Bag30.61 CREESC03 0.144 CREE Bag30.5 CREE Bag20.50.18 CREECityUS060.11 CREE Bag30.41 CREE Bag20.480.82

75 75 20 20 75

75

×+

×− × + ×+ ×× + × + × + ××

Where: BagY X CREE =carbon-related exhaust emissions in grams per mile over Bag Y at temperature X. US06 City CREE = carbon-related exhaust emi ssions in grams per mile over the “city” portion of the US06 test. SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test.

(2) To determine the City CO 2 emissions, use the appropriate CO 2 grams/mile values instead of CREE values in the equations in paragraph (d)(1) of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 207 of 315 (e) Highway CO 2 emissions and carbon-re lated exhaust emissions. For each vehicle tested, determine the 5-cycle highway carbon-related e xhaust emissions using the following equation: 

## ( ) E RunningCRE StartCREE 0.905E HighwayCRE + ×= Where:
(1) StartCREE = 

## ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × ×= 60 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

## ( )
X X X CREE3Bag CREE1Bag3.6 CREEStart

− ×= (2) Running CREE = 

## ( ) ( ) 

## [ ] ( ) ( ) ( ) 

## [ ] CREE Bag CREE Bag CREESC CREE HFET CREE Highway US

75 75 239.0 361.0 03045.0 21.0 0679.0007.1

×+ ×− × + ×+ ××

Where: BagY X CREE =carbon-related exhaust emissions in grams per mile over Bag Y at temperature X, US06 Highway CREE = carbon-rela ted exhaust emissions in grams per mile over the highway portion of the US06 test, HFET CREE = carbon-related exhaust emissions in grams per mile over the HFET test, SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test.

(3) To determine the Highway CO 2 emissions, use the appropriate CO 2 grams/mile values instead of CREE values in the equations in pa ragraphs (e)(1) and (2) of this section.

(f) CO 2 and carbon-related exhaust emissions calcul ations for hybrid electric vehicles. Hybrid electric vehicles shall be tested according to Ca lifornia test methods wh ich require FTP emission sampling for the 75 °F FTP test over four phases (bags) of the UDDS (cold-start, transient, warm-start, transient). Optionally, these four pha ses may be combined into two phases (phases 1 + 2 and phases 3 + 4). Calculations for these sampling methods follow. (1) Four-bag FTP equations. If the 4-bag sampling method is used, manufacturers may use the equations in paragraphs (a) and (b) of this section to determine city and highway CO 2 and carbon-related exhaust emissions valu es. If this method is chosen, it must be used to determine both city and highway CO 2 emissions and carbon-related exha ust emissions. Optionally, the following calculations may be us ed, provided that they are used to determine both city and highway CO 2 and carbon-related exhaust emissions values: (i) City CO 2 emissions and carbon-re lated exhaust emissions. 

# ( ) E RunningCRE StartCREE 0.905 CityCREE + ×= Where: (A) StartCREE = 

# ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × × 4.1 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: ( 1 ) StartCREE 75 = 

## ( ) ( )
75 75 75 

### 4 29.3753 16.3 CREEBag CREEBag CREEBag CREEBag

− × +

− × andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 208 of 315 ( 2 ) StartCREE 20 = 

# ( )
20 20 

## 3 16.3 CREEBag CREEBag

− ×= (B) RunningCREE = 

## ( ) ( ) ( ) 

## [ ] ( ) ( ) 

## [ ] ( ) ( ) ( ) 

## [ ] CREE Bag CREE Bag CREESC CREE Bag CREE Bag CREECityUS CREE Bag CREE Bag

75 75 20 20 75

75

439.0 361.0 03144.0 35.0 25.018.0 0611.0 341.0 448.082.0

×+ ×− × + ×+ ×× + × + × + ××

Where: US06 Highway CREE = carbon-relate d exhaust emissions in grams per mile over the city portion of the US06 test. US06 Highway CREE = carbon-rela ted exhaust emissions in miles per gallon over the Highway portion of the US06 test. HFET CREE = carbon-related exhaust emissions in grams per mile over the HFET test. SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test. (ii) Highway CO 2 emissions and carbon-re lated exhaust emissions. 

# ( ) E RunningCRE StartCREE 0.905E HighwayCRE + × = Where: (A) StartCREE = 

# ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × ×= 60 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

### ( ) ( )
75 75 75 75 CREE4Bag CREE2Bag3.9 CREE753Bag CREE1Bag3.6 CREEStart

− × +

− ×= and 

# ( )
20 20 20 

## CREE3Bag CREE1Bag3.6 CREEStart

− ×= (B) RunningCREE = 

## ( ) ( ) 

## [ ] ( ) ( ) ( ) 

## [ ] CREE Bag CREE Bag CREESC CREE HFET CREE Highway US

75 75 439.0 361.0 03045.0 21.0 0679.0007.1

×+ ×− × + ×+ ××

Where: US06 Highway CREE = carbon-rela ted exhaust emissions in grams per mile over the Highway portion of the US06 test, HFET CREE = carbon-related exhaust emissions in grams per mile over the HFET test, SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test. (2) Two-bag FTP equations. If the 2-bag sampling method is used for the 75 °F FTP test, it must be used to determine both city and highway CO 2 emissions and carbon-related exhaust emissions. The following calcula tions must be used to determine both city and highway CO 2 emissions and carbon-related exhaust emissions: (i) City CO 2 emissions and carbon-related exhaust emissions. 

## ( ) E RunningCRE StartCREE 0.905 CityCREE + ×= Where: (A) StartCREE =Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 209 of 315 

# ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × ×= 4.1 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

## ( )
75 75 75 

### CREE3/4Bag CREE1/2Bag3.6 CREEStart

− ×= and 

# ( )
20 20 20 

### CREE3Bag CREE1Bag3.6 CREEStart

− ×= Where: Bag Y FE 20 = the carbon-related exhaust emissions in grams per mile of fuel during Bag 1 or Bag 3 of the 20 °F FTP test, and Bag X/Y FE 75 = carbon-related exhaust emissions in grams per mile of fuel during combined phases 1 and 2 or phases 3 and 4 of th e FTP test conducted at an ambient temperature of 75 °F. (B) RunningCREE = 

## ( ) ( ) 

## [ ] ( ) ( ) 

## [ ] ( ) 

## [ ] CREE Bag3/4 CREESC03 0.144 CREE Bag30.5 CREE Bag20.50.18 CREECityUS060.10 CREE Bag3/4 0.900.82

75 20 20 75



### − × + ×+ ×× + × + ××

Where: US06 City CREE = carbon-related exhaust emi ssions in grams per mile over the city portion of the US06 test, and SC03 CREE = carbon-related exhaust emissions in grams per mile over the SC03 test, and Bag X/Y FE 75 = carbon-related exhaust emissions in grams per mile of fuel during combined phases 1 and 2 or phases 3 and 4 of th e FTP test conducted at an ambient temperature of 75 °F. (ii) Highway CO 2 emissions and carbon-re lated exhaust emissions. 

## ( ) E RunningCRE StartCREE 0.905E HighwayCRE + ×= Where: (A) StartCREE = 

## ( ) ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ ×+ × × 60 StartCREE 0.24 StartCREE 0.76 0.33 20 75

Where: 

# ( )
75 75 75 

### CREE3/4Bag CREE1/2Bag5.7CREEStart

− ×= and 

# ( )
20 20 20 

### CREE3Bag CREE1Bag3.6 CREEStart

− ×= (B) RunningCREE = 

## ( ) ( ) 

## [ ] [ ] CREE Bag3/4 CREESC03 0.045 CREE HFET0.21 CREE Highway US060.79 1.007

75 − × + ×+ ××

Where: US06 Highway CREE = carbon-relate d exhaust emissions in grams per mile over the city portion of the US06 test, and SC03 CREE = carbon-related exhaust emissions in gram per mile over the SC03 test, andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 210 of 315 Bag Y FE 20 = the carbon-related exhaust emissions in grams per mile of fuel during Bag 1 or Bag 3 of the 20 °F FTP test, and Bag X/Y FE 75 = carbon-related exhaust emissions in grams per mile of fuel during phases 1 and 2 or phases 3 and 4 of the FTP test conducted at an ambient temperature of 75 °F.

(3) To determine the City and Highway CO 2 emissions, use the appropriate CO 2 grams/mile values instead of CREE values in the equations in paragraphs (f)(1) and (2 ) of this section.



### § 600.115-08 Criteria for determining the fuel economy label calculation method for 2011 and later model year vehicles.

This section provides the criteria to determine if the derived 5-cycle method for determining fuel economy label values, as specified in §600. 210–08 (a)(2) or (b)(2) or §600.210–12 (a)(2) or (b)(2), as applicable, may be used to determine label values for 2011 and later model year vehicles. Separate criteria appl y to city and highway fuel economy for each test group. The provisions of this section are optional. If this opti on is not chosen, or if the criteria provided in this section are not met, fuel economy label valu es for 2011 and later model year vehicles must be determined according to the vehicle-speci fic 5-cycle method specified in §600.210–08(a)(1) or (b)(1) or §600.210–08 (a)(1) or (b )(1), as applicable. However, dedicated alternative-fuel vehicles, dual fuel vehicles when operating on alternative fuel, MDPVs, and vehicles imported by Independent Commercial Importers may use the derived 5-cycle method for determining fuel economy labels for 2011 and later model years whethe r or not the criteria pr ovided in this section
are met.

(a) City fuel economy criterion. (1) For each test group certified for emission compliance under §86.1848 of this chapter, the FTP, HFET, US06, SC03 and Cold FTP tests determined to be official under §86.1835 of this chapte r are used to calcula te the vehicle-specifi c 5-cycle city fuel economy which is then compared to the deri ved 5-cycle city fuel economy, as follows:

(i) The vehicle-specific 5-cycle city fuel economy from the official FTP, HFET, US06, SC03 and Cold FTP tests for the test group is determined according to the provi sions of §600.114–08(a) or (c) or §600.114–12(a) or (c) and rounded to the nearest one tenth of a mile per gallon.

(ii) Using the same FTP data as used in paragraph (a)(1)(i) of this section, the corresponding derived 5-cycle city fuel ec onomy is calculated according to the following equation:

Where:

City Intercept = Intercept determined by the Administrator. See §600.210–08(a)(2)(iii) or §600.210–12 (a)(2)(iii).

City Slope = Slope determined by the Administrator. See §600.210–08(a)(2)(iii) or §600.210–12 (a)(2)(ii).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 211 of 315 FTP FE = the FTP-based city fuel economy from the offi cial test used for certification compliance, determined under §600.113–08(a), rounded to the nearest tenth.

(2) The derived 5-cycle fuel econom y value determined in paragraph (a)(1)(ii) of this section is multiplied by 0.96 and rounded to the nearest one tenth of a mile per gallon.

(3) If the vehicle-specific 5-cycle city fuel ec onomy determined in paragraph (a)(1)(i) of this section is greater than or equal to the value dete rmined in paragraph (a)(2) of this section, then the manufacturer may base the city fuel economy estimates for the model types covered by the test group on the derived 5-cycle method sp ecified in §600.210–08(a)(2 ) or (b)(2) or §600.210– 12(a)(2) or (b)(2), as applicable.

(b) Highway fuel economy criterion. The determination for highway fuel economy depends upon the outcome of the determination for city fuel economy in paragraph (a)(3) of this section for each test group.

(1) If the city determination for a test group made in paragraph (a)(3) of this section does not allow the use of the derived 5-cycle method, then the highway fuel economy values for all model types represented by the test group are likewise not allowed to be determined using the derived 5-cycle method, and must be determined accord ing to the vehicle-specific 5-cycle method specified in §600.210–08(a)(1) or (b)(1) or §600.210–12(a)(1) or (b)(1), as applicable.

(2) If the city determination made in paragraph (a )(3) of this section allows the use of the derived 5-cycle method, a separate determination is ma de for the highway fuel economy labeling method as follows:

(i) For each test group certified for emission co mpliance under §86.1848 of this chapter, the FTP, HFET, US06, SC03 and Cold FTP tests determined to be official under §86.1835 of this chapter are used to calculate the vehicl e-specific 5-cycle highway fuel ec onomy, which is then compared to the derived 5-cycle highway fuel economy, as follows:

(A) The vehicle-specific 5-cycle highway fuel economy from the official FTP, HFET, US06, SC03 and Cold FTP tests for the test group is determined according to the provisions of §600.114–08(b)(1) or §600.114–12(b)(1) and rounded to the nearest one tenth of a mile per gallon.

(B) Using the same HFET data as used in paragraph (b)(2)(i)(A) of this section, the corresponding derived 5-cycle highway fuel economy is calculated using the following equation:

Where:

Highway Intercept = Intercept determined by the Ad ministrator. See §600.21 0–08(a)(2)(iii) or §600.210– 12(a)(2)(iii).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 212 of 315 Highway Slope = Slope determined by the Administrato r. See §600.210–08(a)(2)(iii) or §600.210– 12(a)(2)(iii).

HFET FE = the HFET-based highway fuel economy determined under §600.113–08(b), rounded to the nearest tenth.

(ii) The derived 5-cycle highway fuel economy calculated in paragraph (b)(2)(i)(B) of this section is multiplied by 0.95 and rounded to the nearest one tenth of a mile per gallon.

(iii) (A) If the vehicle- specific 5-cycle highway fuel economy of the vehicle tested in paragraph (b)(2)(i)(A) of this section is greater than or equa l to the value determined in paragraph (b)(2)(ii) of this section, then the ma nufacturer may base the highway fuel economy estimates for the model types covered by the test group on the derived 5-cycle method specified in §600.210– 08(a)(2) or (b)(2) or §600.210–12(a)(2 ) or (b)(2), as applicable.

(B) If the vehicle-specific 5-cycle highway fuel economy determined in paragraph (b)(2)(i)(A) of this section is less than the value determined in paragraph (b)(2)(ii) of this section, the manufacturer may determine the highway fuel ec onomy for the model types covered by the test group on the modified 5-cycle equation sp ecified in §600.114–08(b)(2 ) or §600.114–12(b)(2).

(c) The manufacturer will apply the cr iteria in paragraph (a) and (b) of this section to every test group for each model year.

(d) The tests used to make the evaluations in paragraphs (a) and (b) of this section will be the procedures for official test determinations under §86.1835. Adjustments and/or substitutions to the official test data may be made with advance approval of the Administrator.



### Subpart C— Procedures for Calculating Fuel Economy and Carbon-related Exhaust Emission Values
13. The heading for subpart C is revised as set forth above.

§600.201-08, §600.201-12, §600.201-86, §600.201-93, §600.202-77, §600.203-77, §600.204-77, §600.205-77, §600.206-86, §600.206-93, §600.207-86, §600.207-93, §600.208-77, §600.209-85, §600.209-95—[Removed]
14. Subpart C is amended by rem oving the following sections:

§600.201-08 §600.201-12 §600.201-86 §600.201-93 §600.202-77 §600.203-77 §600.204-77 §600.205-77 §600.206-86 §600.206-93 §600.207-86Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 213 of 315 §600.207-93 §600.208-77 §600.209-85 §600.209-95


### § 600.206-08 Calculation and use of F TP-based and HFET-based fuel economy values for vehicle configurations.

(a) Fuel economy values determined for each ve hicle under §600.113(a) and (b) and as approved in §600.008(c), are used to determine FTP-based city, HFET-based highway, and combined FTP/Highway-based fuel economy values for each vehicle configuration for which data are available.

(1) If only one set of FTP-based city and HFET-based highway fuel economy values is accepted for a vehicle configuration, these values, rounde d to the nearest tenth of a mile per gallon, comprise the city and highway fuel ec onomy values for that configuration.

(2) If more than one set of FTP-based city and HFET-based highway fuel economy values are accepted for a vehicle configuration:

(i) All data shall be grouped according to the subconfiguration for which the data were generated using sales projections supp lied in accordance with §600.208- 08(a)(3) or §600.208-12(a)(3).

(ii) Within each group of data, all values are harmonically averaged and rounded to the nearest 0.0001 of a mile per gallon in order to determin e FTP-based city and HFET-based highway fuel economy values for each subconfiguration at wh ich the vehicle configuration was tested.

(iii) All FTP-based city fuel economy values an d all HFET-based highway fuel economy values calculated in paragraph (a)(2)(ii) of this section are (separately fo r city and highway) averaged in proportion to the sales fraction (rounded to the n earest 0.0001) within th e vehicle configuration (as provided to the Administrator by the ma nufacturer) of vehicles of each tested subconfiguration. The resultant values, rounded to the nearest 0.0001 mile per gallon, are the FTP-based city and HFET-based highway fuel ec onomy values for the ve hicle configuration.

(3) For the purpose of determining average fuel economy under §600.510–08, the combined fuel economy value for a vehicle configuration is calculated by harmonically averaging the FTPbased city and HFET-based highway fuel economy values, as determined in §600.206(a)(1) or (2) of this section, weighted 0.55 and 0.45 resp ectively, and rounded to the nearest 0.0001 mile per gallon. A sample of this calculati on appears in Appendix II of this part.

(4) For alcohol dual fuel automobiles and natura l gas dual fuel automobiles the procedures of paragraphs (a)(1) or (2) of this se ction, as applicable, shall be used to calculate two separate sets of FTP-based city, HFET-based highway, a nd combined fuel economy values for each configuration.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 214 of 315 (i) Calculate the city, highway, and combined fuel economy values from the tests performed using gasoline or di esel test fuel.

(ii) Calculate the city, highway, and combined fuel economy values from the tests performed using alcohol or natu ral gas test fuel.

(b) If only one equivalent petroleum-based fuel economy value exists for an electric configuration, that value, rounded to the neares t tenth of a mile per gallon, will comprise the petroleum-based fuel economy for that configuration.

(c) If more than one equivalent petroleum-based fuel economy value exists for an electric vehicle configuration, all values for that vehicle configuration are harmonically averaged and rounded to the nearest 0.0001 mile per gall on for that configuration.

§600.206-12 Calculation and use of FTP-based and HFET-based fuel economy, CO 2 emissions, and carbon-related exhaust emi ssion values for vehicle configurations. (a) Fuel economy, CO 2 emissions, and carbon-related exhaust emissions values determined for each vehicle under §600.113-08(a) and (b) and as approved in §600.008 (c), are used to determine FTP-based city, HFET-base d highway, and combined FTP/Highway-based fuel economy, CO 2 emissions, and carbon-related exhaust emission values for each vehicle configuration for which data are available. (1) If only one set of FTP-based city and HFET-based highway fuel economy values is accepted for a vehicle configuration, these values , rounded to the nearest tenth of a mile per gallon, comprise the city and highw ay fuel economy values for that configuration. If only one set of FTP-based city and HFET-based highway CO 2 emissions and carbon-related exhaust emission values is accepted for a vehicle configuration, these values, rounde d to the nearest gram per mile, comprise the city and highway CO 2 emissions and carbon-related exhaust emission values for that configuration. (2) If more than one set of FTP-based city and HFET-based highway fuel economy and/or carbon-related exhaust emission values are accepted for a vehicle configuration: (i) All data shall be grouped according to the subconfiguration for which the data were generated using sales projections supp lied in accordance with §600.208-12(a)(3). (ii) Within each group of data, all fuel ec onomy values are harmonically averaged and rounded to the nearest 0.0001 of a mile per gallon and all CO 2 emissions and carbon-related exhaust emission values are arithmetically averaged and rounded to the n earest tenth of a gram per mile in order to determine FTP-based city and HFET-based highway fuel economy, CO 2 emissions, and carbon-related exhaust emission valu es for each subconfiguration at which the vehicle configuration was tested. (iii) All FTP-based city fuel economy, CO 2 emissions, and carbon-related exhaust emission values and all HFET-based highway fu el economy and carbon-related exhaust emission values calculated in paragraph (a)(2)(ii) of this section are (separately for city and highway) averaged in proportion to the sa les fraction (rounded to the near est 0.0001) within the vehicle configuration (as provided to the Administrator by the manufacturer) of vehicles of each tested subconfiguration. Fuel economy values shall be harmonically averaged, and CO 2 emissions and carbon-related exhaust emission values shall be arithmetically averaged . The resultant fuel economy values, rounded to the nearest 0.0001 mile per gallon, are the FTP-based city andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 215 of 315 HFET-based highway fuel economy values for th e vehicle configurati on. The resultant CO 2 emissions and carbon-related exhaust emission values , rounded to the nearest tenth of a gram per mile, are the FTP-based city and HFET-based highway CO 2 emissions and carbon-related exhaust emission values for the vehicle configuration. (3)(i) For the purpose of determining average fuel economy under §600.510, the combined fuel economy value for a vehicle c onfiguration is calculated by harmonically averaging the FTP-based city and HFET-based hi ghway fuel economy values, as determined in paragraph (a)(1) or (2) of this section, weighted 0.55 and 0.45 respectively, and rounded to the nearest 0.0001 mile per gallon. A sample of this calculation appear s in Appendix II of this part. (ii) For the purpose of determining aver age carbon-related exhaust emissions under §600.510, the combined carbon-related exhaust emi ssion value for a vehicle configuration is calculated by arithmetically averaging the FTP-based city and HFET-based highway carbonrelated exhaust emission values, as determined in paragraph (a)(1) or (2) of this section, weighted 0.55 and 0.45 respectively, and rounded to the nearest tenth of gram per mile. (4) For alcohol dual fuel automobiles and natural gas dual fuel automobiles the procedures of paragraphs (a)(1) or (2) of this section, as applicab le, shall be used to calculate two separate sets of FTP-based city, HFET-based hi ghway, and combined values for fuel economy, CO 2 emissions, and carbon-related exhaus t emissions for each configuration. (i) Calculate the city, highway, and combined fuel economy, CO 2 emissions, and carbonrelated exhaust emission values from the tests performed using gasoline or diesel test fuel. (ii) Calculate the city, highway, and combined fuel economy, CO 2 emissions, and carbonrelated exhaust emission values from the tests performed using al cohol or natural gas test fuel. (b) If only one equivalent petroleum-based fuel economy value exists for an electric vehicle configuration, that value, rounded to the nearest tenth of a mile per gallon, will comprise the petroleum-based fuel econom y for that configuration. (c) If more than one equivalent petroleum-based fuel economy value exists for an electric vehicle configuration, all values for that vehi cle configuration are ha rmonically averaged and rounded to the nearest 0.0001 mile per gallon for that configuration.

§ 600.207-08 Calculation and use of vehicle-speci fic 5-cycle-based fuel economy values for vehicle configurations.

(a) Fuel economy values determined for each vehicle under §600.114–08 and as approved in §600.008–08 (c), are used to determine vehicle-sp ecific 5-cycle city a nd highway fuel economy values for each vehicle configura tion for which data are available.

(1) If only one set of 5-cycle city and highway fuel economy values is accepted for a vehicle configuration, these valu es, rounded to the nearest tenth of a mile per gallon, comprise the city and highway fuel economy valu es for that configuration.

(2) If more than one set of 5-cycle city and highway fuel economy values are accepted for a vehicle configuration:

(i) All data shall be grouped according to the subconfiguration for which the data were generated using sales projections supplied in accordance with §600.209(a)(3).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 216 of 315 (ii) Within each subconfiguration of data, all values are harmonically averaged and rounded to the nearest 0.0001 of a mile per gallon in orde r to determine 5-cycle city and highway fuel economy values for each subconfiguration at wh ich the vehicle configuration was tested.

(iii) All 5-cycle city fuel economy values a nd all 5-cycle highway fuel economy values calculated in paragraph (a)(2)(ii) of this section are (separately fo r city and highway) averaged in proportion to the sales fraction (rounded to the n earest 0.0001) within th e vehicle configuration (as provided to the Administrator by the ma nufacturer) of vehicles of each tested subconfiguration. The resultant values, rounded to the nearest 0. 0001 mile per gallon, are the 5- cycle city and 5-cycle highway fuel econom y values for the vehi cle configuration.

(3) [Reserved]

(4) For alcohol dual fuel automobiles and natura l gas dual fuel automobiles the procedures of paragraphs (a)(1) and (2) of this section shall be used to calculate two separate sets of 5-cycle city, highway fuel economy values for each configuration.

(i) Calculate the 5-cycle city and highway fuel economy values from the tests performed using gasoline or diesel test fuel.

(ii)(A) Calculate the 5-cycle c ity and highway fuel economy valu es from the tests performed using alcohol or natural gas test fuel, if 5-cycle testing ha s been performed. Otherwise, the procedure in §600.210(a)(3 ) or (b)(3) applies.

(b) If only one equivalent petroleum-based fuel economy value exists for an electric configuration, that value, rounded to the neares t tenth of a mile per gallon, will comprise the petroleum-based 5-cycle fuel ec onomy for that configuration.

(c) If more than one equivalent petroleum-based 5-cycle fuel econom y value exists for an electric vehicle configuration, all values for that vehi cle configuration are ha rmonically averaged and rounded to the nearest 0.0001 mile per gallon for that configuration.

§ 600.207-12 Calculation and use of vehicle-s pecific 5-cycle-based fuel economy and CO 2 emission values for vehicle configurations.

(a) Fuel economy and CO 2 emission values determined for each vehicle under §600.114 and as approved in §600.008(c), are used to determine vehicle-specific 5- cycle city and highway fuel economy and CO 2 emission values for each vehicle confi guration for which data are available.

(1) If only one set of 5-cycle city and highway fuel economy and CO 2 emission values is accepted for a vehicle configuration, these values , where fuel economy is rounded to the nearest tenth of a mile per gallon and the CO 2 emission value in grams per m ile is rounded to the nearest whole number, comprise the city and highway fuel economy and CO 2 emission values for that configuration.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 217 of 315 (2) If more than one set of 5-cycle city and highway fuel economy and CO 2 emission values are accepted for a vehicle configuration:

(i) All data shall be grouped according to the subconfiguration for which the data were generated using sales projections supplied in accordance with §600.209-12(a)(3).

(ii) Within each subconfiguration of data, all fu el economy values are harmonically averaged and rounded to the nearest 0.0001 of a mile per gallon in order to determine 5- cycle city and highway fuel economy values for each subconfiguration at which the vehicle configuration was tested, and all CO 2 emissions values are arithmetically aver aged and rounded to the nearest tenth of gram per mile to determine 5-cycle city and highway CO 2 emission values for each subconfiguration at which the vehicle configuration was tested.

(iii) All 5-cycle city fuel economy values a nd all 5-cycle highway fuel economy values calculated in paragraph (a)(2)(ii) of this section are (separately fo r city and highway) averaged in proportion to the sales fraction (rounded to the n earest 0.0001) within th e vehicle configuration (as provided to the Administrator by the ma nufacturer) of vehicles of each tested subconfiguration. The resultant values, rounded to the nearest 0. 0001 mile per gallon, are the 5- cycle city and 5-cycle highway fuel econom y values for the vehi cle configuration.

(iv) All 5-cycle city CO 2 emission values and all 5-cycle highway CO 2 emission values calculated in paragraph (a)(2)(ii) of this section are (separately fo r city and highway) averaged in proportion to the sales fraction (rounded to the n earest 0.0001) within th e vehicle configuration (as provided to the Administrator by the ma nufacturer) of vehicles of each tested subconfiguration. The resultant va lues, rounded to the nearest 0.1 grams per mile, are the 5-cycle city and 5-cycle highway CO 2 emission values for the vehicle configuration.

(3) [Reserved]

(4) For alcohol dual fuel automobiles and natura l gas dual fuel automobiles the procedures of paragraphs (a)(1) and (2) of this section shall be used to calculate two separate sets of 5-cycle city and highway fuel economy and CO 2 emission values for each configuration.

(i) Calculate the 5-cycle city and highway fuel economy and CO 2 emission values from the tests performed using gasoline or diesel test fuel.

(ii)(A) Calculate the 5-cycle city and highway fuel economy and CO 2 emission values from the tests performed using alcohol or natural gas test fuel, if 5-cycl e testing has been performed. Otherwise, the procedure in §600.210-12(a)(3) or (b)(3) applies.

(b) If only one equivalent petroleum-based fuel economy value exists for an electric configuration, that value, rounded to the neares t tenth of a mile per gallon, will comprise the petroleum-based 5-cycle fuel ec onomy for that configuration.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 218 of 315 (c) If more than one equivalent petroleum-based 5-cycle fuel economy value exists for an electric vehicle configuration, all values for that vehi cle configuration are ha rmonically averaged and rounded to the nearest 0.0001 mile per gallon for that configuration.



### § 600.208-08 Calculation of FTP-based an d HFET-based fuel economy values for a model type.

(a) Fuel economy values for a ba se level are calculated from ve hicle configuration fuel economy values as determined in §600.206–08(a), (b), or (c) as applicable, for low-altitude tests.

(1) If the Administrator determines that automob iles intended for sale in the State of California are likely to exhibit significant differences in fuel economy from those intended for sale in other states, he will calculate fuel economy values for each base level for vehicles intended for sale in California and for each base level for vehicles intended for sale in the rest of the states.

(2) In order to highlight the fuel efficiency of certain designs otherwise included within a model type, a manufacturer may wish to subdivide a m odel type into one or more additional model types. This is accomplished by separating subcon figurations from an existing base level and placing them into a new base level. The new base level is identical to the existing base level except that it shall be considered, for the purposes of this paragraph, as containing a new basic engine. The manufacturer will be permitted to designate such new basic engines and base level(s) if:

(i) Each additional model type resulting from division of another model type has a unique car line name and that name appears on the labe l and on the vehicle bearing that label;

(ii) The subconfigurations included in the new base levels are not incl uded in any other base level which differs only by basic engine ( i.e. , they are not included in the calculation of the original base level fuel economy values); and

(iii) All subconfigurations within the new base level are represented by te st data in accordance with §600.010(c)(1)(ii).

(3) The manufacturer shall supply total model y ear sales projections for each car line/vehicle subconfiguration combination.

(i) Sales projections must be supplied separate ly for each car line-vehicle subconfiguration intended for sale in California and each car line/ vehicle subconfiguration in tended for sale in the rest of the states if required by the Administ rator under paragraph (a)(1) of this section.

(ii) Manufacturers shall update sa les projections at the time any m odel type value is calculated for a label value.

(iii) The provisions of paragraph (a)(3) of this section may be satisfied by providing an amended application for certification, as desc ribed in §86.1844 of this chapter.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 219 of 315 (4) Vehicle configuration fuel economy values, as determined in §600.206–08 (a), (b) or (c), as applicable, are grouped acco rding to base level.

(i) If only one vehicle configura tion within a base level has been tested, the fuel economy value from that vehicle configuration constitute s the fuel economy for that base level.

(ii) If more than one vehicle configuration wi thin a base level has been tested, the vehicle configuration fuel economy values are harmoni cally averaged in propor tion to the respective sales fraction (rounded to the nearest 0.0001) of each vehicle configuration and the resultant fuel economy value rounded to the ne arest 0.0001 mile per gallon.

(5) The procedure specified in paragraph (a)(1) through (4) of this secti on will be repeated for each base level, thus establishing city, highway , and combined fuel economy values for each base level.

(6) [Reserved]

(7) For alcohol dual fuel automobiles and natural gas dual fuel automobiles, the procedures of paragraphs (a)(1) through (6) of th is section shall be used to calculate two separate sets of city, highway, and combined fuel econom y values for each base level.

(i) Calculate the city, highway, and combined fuel economy values from the tests performed using gasoline or di esel test fuel.

(ii) Calculate the city, highway, and combined fuel economy values from the tests performed using alcohol or natu ral gas test fuel.

(b) For each model type, as dete rmined by the Administrator, a city, highway, and combined fuel economy value will be calculated by using the pr ojected sales and fuel economy values for each base level within the model type. Separate m odel type calculations will be done based on the vehicle configuration fuel economy values as determined in §600.206–08 (a), (b) or (c), as applicable.

(1) If the Administrator determines that automob iles intended for sale in the State of California are likely to exhibit significant differences in fuel economy from those intended for sale in other states, he will calculate fuel economy values for each model type for vehicles intended for sale in California and for each model type for vehicles intended for sale in th e rest of the states.

(2) The sales fraction for each base level is calcu lated by dividing the projected sales of the base level within the model type by the projected sale s of the model type and rounding the quotient to the nearest 0.0001.

(3) The FTP-based city fuel economy values of the model type (calculated to the nearest 0.0001 mpg) are determined by dividing one by a sum of terms, each of which corresponds to a base level and which is a fracti on determined by dividing:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 220 of 315 (i) The sales fraction of a base level; by

(ii) The FTP-based city fuel economy value for the respective base level.

(4) The procedure specified in paragraph (b)(3) of this section is repeated in an analogous manner to determine the highway and combined fuel economy values for the model type.

(5) For alcohol dual fuel automobiles and natural gas dual fuel automobiles, the procedures of paragraphs (b)(1) through (4) of th is section shall be used to calculate two separate sets of city, highway, and combined fuel economy values for each model type.

(i) Calculate the city, highway, and combined fuel economy values from the tests performed using gasoline or di esel test fuel.

(ii) Calculate the city, highway, and combined fuel economy values from the tests performed using alcohol or natu ral gas test fuel.



### §600.208-12 Calculation of FTP-based and HFET-based fuel economy, CO 2 

### emissions, and carbon-related exhaust emissions for a model type. (a) Fuel economy, CO 2 emissions, and carbon-related exha ust emissions for a base level are calculated from vehicle configuration fuel economy, CO 2 emissions, and carbon-related exhaust emissions as determined in §600.206–12(a), (b ), or (c) as applicable, for low-altitude
tests. (1) If the Administrator determines that auto mobiles intended for sale in the State of California are likely to exhibit signifi cant differences in fuel economy, CO 2 emissions, and carbon-related exhaust emissions from those intended for sale in ot her states, she will calculate fuel economy, CO 2 emissions, and carbon-related exhaus t emissions for each base level for vehicles intended for sale in Calif ornia and for each base level for vehicles intended for sale in the rest of the states. (2) In order to highlight the fuel efficiency, CO 2 emissions, and carbon-related exhaust emissions of certain designs otherwise included within a model type, a manufacturer may wish to subdivide a model type into one or more a dditional model types. This is accomplished by separating subconfigurations from an existing base level and placing them into a new base level. The new base level is identical to the existing base level except that it shall be considered, for the purposes of this paragraph, as containing a new basic engine. The manufacturer will be permitted to designate such new basic en gines and base level(s) if: (i) Each additional model type resulting from division of another model type has a unique car line name and that name appears on the label and on the vehicle bearing that label; (ii) The subconfigurations included in the ne w base levels are not included in any other base level which differs only by ba sic engine (i.e., they are not in cluded in the calculation of the original base level fuel economy values); and (iii) All subconfigurations within the new ba se level are represented by test data in accordance with §600.010(c)(1)(ii). (3) The manufacturer shall supply total m odel year sales projections for each car line/vehicle subconfiguration combination.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 221 of 315 (i) Sales projections must be supplied separately for each car line-vehicle subconfiguration intended for sale in Califor nia and each car line/ve hicle subconfiguration intended for sale in the rest of the states if required by the Ad ministrator under paragraph (a)(1) of this section. (ii) Manufacturers shall update sales projections at the tim e any model type value is calculated for a label value. (iii) The provisions of paragraph (a)(3) of this section may be satisfied by providing an amended application for certification, as described in §86.1844 of this chapter. (4) Vehicle configurat ion fuel economy, CO 2 emissions, and carbon-related exhaust emissions, as determined in §600.206–12 (a), (b) or (c), as applicable, are grouped according to base level. (i) If only one vehicle configuration within a base level has been tested, the fuel economy, CO 2 emissions, and carbon-related exhaust emi ssions from that vehicle configuration will constitute the fuel economy, CO 2 emissions, and carbon-related exhaust emissions for that base level. (ii) If more than one vehicle configuration wi thin a base level has been tested, the vehicle configuration fuel economy values are harmoni cally averaged in propor tion to the respective sales fraction (rounded to the nearest 0.0001) of each vehicle configuration and the resultant fuel economy value rounded to the nearest 0.0001 mile per gallon; and the vehicle configuration CO 2 emissions and carbon-related exhaust emissions ar e arithmetically averaged in proportion to the respective sales fraction (rounded to the nearest 0.0001) of each vehicle configuration and the resultant carbon-related exhaust em ission value rounded to the neares t tenth of a gram per mile. (5) The procedure specified in paragraph (a )(1) through (4) of th is section will be repeated for each base level, thus establishi ng city, highway, and combined fuel economy, CO 2 emissions, and carbon-related exhaust emissions for each base level. (6) [Reserved] (7) For alcohol dual fuel automobiles and natural gas dual fuel automobiles, the procedures of paragraphs (a)(1) through (6) of this sec tion shall be used to calculate two separate sets of city, highway, and combined fuel economy, CO 2 emissions, and carbon-related exhaust emissions for each base level. (i) Calculate the city, highway, and combined fuel economy, CO 2 emissions, and carbonrelated exhaust emissions from the tests perf ormed using gasoline or diesel test fuel. (ii) Calculate the city, highway, and combined fuel economy, CO 2 emissions, and carbonrelated exhaust emissions from the tests performed using alcohol or natural gas test fuel. (b) For each model type, as determined by the Administrator, a city, highway, and combined fuel economy value, CO 2 emission value, and a carbon -related exhaust emission value will be calculated by using the projected sales and values for fuel economy, CO 2 emissions, and carbon-related exhaust emissions for each base leve l within the model type. Separate model type calculations will be done based on the ve hicle configuration fuel economy, CO 2 emissions, and carbon-related exhaust emissions as determined in §600.206–12 (a), (b) or (c), as applicable. (1) If the Administrator determines that auto mobiles intended for sale in the State of California are likely to exhibit signifi cant differences in fuel economy, CO 2 emissions, and carbon-related exhaust emissions from those intende d for sale in other states, he or she will calculate values for fuel economy, CO 2 emissions, and carbon-related exhaust emissions for each model type for vehicles intended for sale in California and for each model type for vehicles intended for sale in th e rest of the states.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 222 of 315 (2) The sales fraction for each base level is calculated by dividing the projected sales of the base level within the model type by the proj ected sales of the model type and rounding the quotient to the nearest 0.0001. (3)(i) The FTP-based city fuel economy valu es of the model type (calculated to the nearest 0.0001 mpg) are determined by divi ding one by a sum of terms, each of which corresponds to a base level and which is a fraction determined by dividing: (A) The sales fraction of a base level; by (B) The FTP-based city fuel economy value for the respective base level. (ii) The FTP-based city carbon-related e xhaust emission value of the model type (calculated to the nearest gram per mile) are determined by a sum of terms, each of which corresponds to a base level and which is a product determined by multiplying: (A) The sales fraction of a base level; by (B) The FTP-based city carbon-related exha ust emission value for the respective base level.

(iii) The FTP-based city CO 2 emissions of the model type (c alculated to the nearest gram per mile) are determined by a sum of terms, each of which corresponds to a base level and which is a product determined by multiplying:

(A) The sales fraction of a base level; by

(B) The FTP-based city CO2 emissions for the respective base level.

(4) The procedure specified in paragraph (b)(3) of this section is repeated in an analogous manner to determine the highway and combined fuel economy, CO 2 emissions, and carbonrelated exhaust emissions for the model type. (5) For alcohol dual fuel automobiles and natural gas dual fuel automobiles, the procedures of paragraphs (b)(1) th rough (4) of this secti on shall be used to calculate two separate sets of city, highway, and combined fuel economy values and two separate sets of city, highway, and combined CO 2 and carbon-related exhaust emissi on values for each model type. (i) Calculate the city, highway, and combined fuel economy, CO 2 emissions, and carbonrelated exhaust emission values from the tests performed using gasoline or diesel test fuel. (ii) Calculate the city, highway, and combined fuel economy, CO 2 emissions, and carbonrelated exhaust emission values from the tests performed using al cohol or natural gas test fuel.


### § 600.209-08 Calculation of vehicle-specifi c 5-cycle fuel economy values for a model type.

(a) Base level. 5-cycle fuel economy values for a base level are calculated from vehicle configuration 5-cycle fuel economy values as determined in §600.207–08 for low-altitude tests.

(1) If the Administrator determines that automob iles intended for sale in the State of California are likely to exhibit significant differences in fuel economy from those intended for sale in other states, he will calculate fuel economy values for each base level for vehicles intended for sale in California and for each base level for vehicles intended for sale in the rest of the states.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 223 of 315 (2) In order to highlight the fuel efficiency of certain designs otherwise included within a model type, a manufacturer may wish to subdivide a m odel type into one or more additional model types. This is accomplished by separating subcon figurations from an existing base level and placing them into a new base level. The new base level is identical to the existing base level except that it shall be considered, for the purposes of this paragraph, as containing a new basic engine. The manufacturer will be permitted to designate such new basic engines and base level(s) if:

(i) Each additional model type resulting from division of another model type has a unique car line name and that name appears on the labe l and on the vehicle bearing that label;

(ii) The subconfigurations included in the new base levels are not incl uded in any other base level which differs only by basic engine ( i.e. , they are not included in the calculation of the original base level fuel economy values); and

(iii) All subconfigurations within the new base level are represented by te st data in accordance with §600.010–08 (c)(ii).

(3) The manufacturer shall supply total model y ear sales projections for each car line/vehicle subconfiguration combination.

(i) Sales projections must be supplied separate ly for each car line-vehicle subconfiguration intended for sale in California and each car line/ vehicle subconfiguration in tended for sale in the rest of the states if required by the Administ rator under paragraph (a)(1) of this section.

(ii) Manufacturers shall update sa les projections at the time any m odel type value is calculated for a label value.

(iii) The provisions of this paragraph (a)(3 ) may be satisfied by providing an amended application for certification, as desc ribed in §86.1844–01 of this chapter.

(4) 5-cycle vehicle configuration fuel economy values, as determined in §600.207–08(a), (b), or (c), as applicable, are grouped according to base level.

(i) If only one vehicle configura tion within a base level has been tested, the fuel economy value from that vehicle configuration constitute s the fuel economy for that base level.

(ii) If more than one vehicle configuration wi thin a base level has been tested, the vehicle configuration fuel economy values are harmoni cally averaged in propor tion to the respective sales fraction (rounded to the nearest 0.0001) of each vehicle configuration and the resultant fuel economy value rounded to the ne arest 0.0001 mile per gallon.

(5) The procedure specified in §600.209–08(a) will be repeated for each base level, thus establishing city and highway fuel economy values for each base level.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 224 of 315 (6) For the purposes of calcul ating a base level fuel econom y value, if the only vehicle configuration(s) within the base level are vehicle configurati on(s) which are intended for sale at high altitude, the Administrator may use fuel economy data from tests conducted on these vehicle configuration(s) at hi gh altitude to calculate the fu el economy for the base level.

(7) For alcohol dual fuel automobiles and natural gas dual fuel automobiles, the procedures of paragraphs (a)(1) through (6) of th is section shall be used to calculate two separate sets of city, highway, and combined fuel econom y values for each base level.

(i) Calculate the city and highway fuel economy values from the tests performed using gasoline or diesel test fuel.

(ii) If 5-cycle testing was perfor med on the alcohol or natural gas test fuel, calculate the city and highway fuel economy values from the tests perf ormed using alcohol or natural gas test fuel.

(b) Model type. For each model type, as determined by the Administrator, a city and highway fuel economy value will be calcu lated by using the projected sales and fuel economy values for each base level within the model type. Separate model type calculations will be done based on the vehicle configuration fuel economy values as determined in §600.207–08, as applicable.

(1) If the Administrator determines that automob iles intended for sale in the State of California are likely to exhibit significant differences in fuel economy from those intended for sale in other states, he will calculate fuel economy values for each model type for vehicles intended for sale in California and for each model type for vehicles intended for sale in th e rest of the states.

(2) The sales fraction for each base level is calcu lated by dividing the projected sales of the base level within the model type by the projected sale s of the model type and rounding the quotient to the nearest 0.0001.

(3) The 5-cycle city fuel econom y values of the model type ( calculated to the nearest 0.0001 mpg) are determined by dividing one by a sum of terms, each of which corresponds to a base level and which is a fracti on determined by dividing:

(i) The sales fraction of a base level; by

(ii) The 5-cycle city fuel economy va lue for the respect ive base level.

(4) The procedure specified in paragraph (b)(3) of this section is repeated in an analogous manner to determine the highway and combined fuel economy values for the model type.

(5) For alcohol dual fuel automobiles and natura l gas dual fuel automobiles the procedures of paragraphs (b)(1) through (4) of th is section shall be used to calculate two separate sets of city and highway fuel economy values for each model type.

(i) Calculate the city and highway fuel economy values from the tests performed using gasoline or diesel test fuel.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 225 of 315 (ii) Calculate the city, highway, and combined fuel economy values from the tests performed using alcohol or natural gas test fuel, if 5-cycle testing wa s performed on the alcohol or natural gas test fuel. Otherwise, the procedur e in §600.210(a)(3) or (b)(3) applies.

§ 600.209-12 Calculation of vehicle-s pecific 5-cycle fuel economy and CO 2 emission values for a model type.

(a) Base level. 5-cycle fuel economy and CO 2 emission values for a base level are calculated from vehicle configuration 5-cycle fuel economy and CO 2 emission values as determined in §600.207 for low-altitude tests.

(1) If the Administrator determines that automob iles intended for sale in the State of California are likely to exhibit significant differences in fuel economy and CO 2 emissions from those intended for sale in other states, he will calculate fuel economy and CO 2 emission values for each base level for vehicles intended for sale in California and for each base level for vehicles intended for sale in th e rest of the states.

(2) In order to highlight the fuel efficiency and CO 2 emissions of certain designs otherwise included within a model type, a manufacturer may wish to subdivide a model type into one or more additional model types. This is accomp lished by separating subconfigurations from an existing base level and placing them into a new base level. The new base level is identical to the existing base level except that it shall be cons idered, for the purposes of this paragraph, as containing a new basic engine. The manufacturer will be permitted to designate such new basic engines and base level(s) if:

(i) Each additional model type resulting from division of another model type has a unique car line name and that name appears on the labe l and on the vehicle bearing that label;

(ii) The subconfigurations included in the new base levels are not incl uded in any other base level which differs only by basic engine ( i.e. , they are not included in the calculation of the original base level fuel economy values); and

(iii) All subconfigurations within the new base level are represented by te st data in accordance with §600.010(c)(ii).

(3) The manufacturer shall supply total model y ear sales projections for each car line/vehicle subconfiguration combination.

(i) Sales projections must be supplied separate ly for each car line-vehicle subconfiguration intended for sale in California and each car line/ vehicle subconfiguration in tended for sale in the rest of the states if required by the Administ rator under paragraph (a)(1) of this section.

(ii) Manufacturers shall update sa les projections at the time any m odel type value is calculated for a label value.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 226 of 315 (iii) The provisions of this paragraph (a)(3 ) may be satisfied by providing an amended application for certification, as desc ribed in §86.1844 of this chapter.

(4) 5-cycle vehicle configuration fuel economy and CO 2 emission values, as determined in §600.207–12(a), (b), or (c), as applicable , are grouped according to base level.

(i) If only one vehicle configuration within a ba se level has been tested, the fuel economy and CO 2 emission values from that vehicle confi guration constitute the fuel economy and CO 2 emission values for that base level.

(ii) If more than one vehicle configuration wi thin a base level has been tested, the vehicle configuration fuel economy values are harmoni cally averaged in propor tion to the respective sales fraction (rounded to the nearest 0.0001) of each vehicle configuration and the resultant fuel economy value rounded to the ne arest 0.0001 mile per gallon.

(iii) If more than one vehicle configuration within a base leve l has been tested, the vehicle configuration CO 2 emission values are arithmetically av eraged in proportion to the respective sales fraction (rounded to the nearest 0.0001) of each vehicle configuration and the resultant CO 2 emission value rounded to the nearest 0.1 gram per mile.

(5) The procedure specified in §600.209–12 (a) will be repeated for each base level, thus establishing city and high way fuel economy and CO 2 emission values for each base level.

(6) [Reserved]

(7) For alcohol dual fuel automobiles and natural gas dual fuel automobiles, the procedures of paragraphs (a)(1) through (6) of th is section shall be used to calculate two separate sets of city, highway, and combined fuel economy and CO 2 emission values for each base level.

(i) Calculate the city and highway fuel economy and CO 2 emission values from the tests performed using gasoline or diesel test fuel.

(ii) If 5-cycle testing was perfor med on the alcohol or natural gas test fuel, calculate the city and highway fuel economy and CO 2 emission values from the test s performed using alcohol or natural gas test fuel.

(b) Model type. For each model type, as determined by th e Administrator, city and highway fuel economy and CO 2 emissions values will be calculated by using the projected sales and fuel economy and CO 2 emission values for each base level wi thin the model type. Separate model type calculations will be done based on the vehicle configuration fuel economy and CO 2 emission values as determined in §600.207, as applicable.

(1) If the Administrator determines that automob iles intended for sale in the State of California are likely to exhibit significant differences in fuel economy and CO 2 emissions from those intended for sale in other states, he will calculate fuel economy and CO 2 emission values forFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 227 of 315 each model type for vehicles intended for sale in California and for each m odel type for vehicles intended for sale in th e rest of the states.

(2) The sales fraction for each base level is calcu lated by dividing the projected sales of the base level within the model type by the projected sale s of the model type and rounding the quotient to the nearest 0.0001.

(3)(i) The 5-cycle city fuel ec onomy values of the model type (calculated to the nearest 0.0001 mpg) are determined by dividing one by a sum of terms, each of which corresponds to a base level and which is a fracti on determined by dividing:

(A) The sales fraction of a base level; by

(B) The 5-cycle city fuel economy va lue for the respective base level.

(ii) The 5-cycle city CO 2 emissions of the model type (calcula ted to the nearest tenth of a gram per mile) are determined by a sum of terms, each of which corresponds to a base level and which is a product determined by multiplying:

(A) The sales fraction of a base level; by

(B) The 5-cycle city CO 2 emissions for the respective base level.

(4) The procedure specified in paragraph (b)(3) of this section is repeated in an analogous manner to determine the highway and combined fuel economy and CO 2 emission values for the model type.

(5) For alcohol dual fuel automobiles and natura l gas dual fuel automobiles the procedures of paragraphs (b)(1) through (4) of th is section shall be used to calculate two separate sets of city and highway fuel economy and CO 2 emission values for each model type.

(i) Calculate the city and highway fuel economy and CO 2 emission values from the tests performed using gasoline or diesel test fuel.

(ii) Calculate the city, highway, and combined fuel economy and CO 2 emission values from the tests performed using alcohol or natural gas test fuel, if 5-cy cle testing was performed on the alcohol or natural gas test fuel . Otherwise, the procedure in § 600.210-12(a)(3) or (b)(3) applies.



### § 600.210-08 Calculation of fuel economy values for labeling.

(a) General labels. Except as permitted in paragraph (e) of this section, fuel economy for general labels can be determined by two methods. The fi rst is based on vehicle-specific model-type 5- cycle data as determined in §600.209–08(b). Th is method is optiona l beginning in the 2008 model year for all vehicles, including medium-duty passenger vehicles, and required beginningFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 228 of 315 in the 2011 model year (except for dedicated alternative-fuel vehicl es, dual fuel vehicles when operating on alternative fuel, and medium duty passenger vehicles) unles s otherwise indicated according to the provisions in §600.115–08. The second method is the derived 5-cycle method, and is based on fuel economy that is derived fr om vehicle-specific 5-cycle model type data as determined in paragraph (a)(2) of this section. This met hod is required for 2008 through 2010 model years (except for medium- duty passenger vehicles, in which case it is optional), and is permitted beginning in 2011 model year under the provisions of §600.115–08. If the manufacturer determines that th e resulting label values from e ither of these methods are not representative of the fuel economy for that mode l type, they may voluntar ily lower these values. All 2011 and later model year medium-duty passe nger vehicles, dedicated alternative-fueled vehicles, and dual fuel vehicles when operating on alternative fuel must be labeled for fuel economy, using the derived 5-cycl e method or, at the manufacturer' s option, the vehicle-specific 5-cycle method. Fuel economy label values for dual fuel vehicles operating on alcohol-based or natural gas fuel are calculated separately.

(1) Vehicle-specific 5-cycle labels. The city and highway model type fuel economy determined in §600.209–08(b), rounded to the nearest mpg, comprise the fuel economy values for general fuel economy labels, or, alternatively;

(2) Derived 5-cycle labels. Derived 5-cycle city and highway label values are determined according to the following method:

(i) For each model type, determine the derived fi ve-cycle city fuel economy using the following equation and coefficients dete rmined by the Administrator:

Where:

City Intercept = Intercept determined by the Administrato r based on historic vehicle- specific 5-cycle city fuel economy data.

City Slope = Slope determined by the Administrator based on historic vehicle-specific 5-cycle city fuel economy data.

MT FTP FE = the model type FTP-based city fuel economy determined under §600.208–08(b), rounded to the nearest 0.0001 mpg.

(ii) For each model type, determine the derive d five-cycle highway fuel economy using the equation below and coefficients de termined by the Administrator:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 229 of 315 Where:

Highway Intercept = Intercept determined by the Administra tor based on historic vehi cle-specific 5-cycle highway fuel economy data.

Highway Slope = Slope determined by the Administrator based on historic vehicle-specific 5-cycle highway fuel economy data.

MT HFET FE = the model type highway fuel economy determined under §600.208–08(b), rounded to the nearest 0.0001 mpg.

(iii) For 2008 and later model y ear vehicles, unless and until superseded by written guidance from the Administrator, the following intercepts and slopes shall be used in the equations in paragraphs (a)(2)(i) and (a)(2)(ii) of this section:

City Intercept = 0.003259.

City Slope = 1.1805.

Highway Intercept = 0.001376.

Highway Slope = 1.3466.

The Administrator will periodically update the slopes and intercepts via guidance and will determine the model year that the new coefficients must take effect. The Administrator will issue guidance no later than six months prior to the earliest starting date of the effective model year (e.g., for 2011 models, the earliest start of the mode l year is January 2, 2010, so guidance would be issued by July 1, 2009.) Until otherwise instructed by written guidance from the Administrator, manufacturers must use the coe fficients that are in currently in effect.

(3) General alternate fuel label va lues for dual-fueled vehicles. (i) City and Highway label values for dual fuel alcohol-based and natural gas vehicles when using the alternate fuel are separately determined by the following calculation:

Where:

FE alt = The unrounded FTP-based model-type city or HFET-based model-type highway fuel economy from the alternate fuel, as determin ed in §600.208(b)(5)(ii).

5-cycle FE gas = The unrounded vehicle-sp ecific or derived 5-cycle model-type city or highway fuel economy, as determined in paragraph (a)(1) or (a)(2) of this section.

FE gas = The unrounded FTP-based city or HFET-based model type highway fuel economy from gasoline (or diesel), as determined in §600.208(b)(5)(i).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 230 of 315 The result, rounded to the nearest whole number, is the alternate fuel label value for dual fuel vehicles.

(ii) Optionally, if complete 5-cycle testing ha s been performed using the alternate fuel, the manufacturer may choose to use the alternate fu el label city or highway value result in §600.209–08(b)(5)(ii), rounded to th e nearest whole number.

(b) Specific Labels. The following two methods are used to de termine specific labels. The first is based on vehicle-specific configuration 5-cycl e data as determined in §600.207–08. This method is optional beginning in the 2008 model year for all vehicles, including medium-duty passenger vehicles, and required beginning in the 2011 mo del year (except for medium-duty passenger vehicles) unless otherwise indicated according to the provisions in §600.115–08. The second method is based on derived 5-cycle configuration da ta as determined in paragraph (a)(2) of this section. This method is required for 2008 thr ough 2010 model years (except for medium-duty passenger vehicles, in which case it is optional), and is allowed beginning in 2011 model year if permitted under the provisions in §600.115–08. If the manufacturer determines that the resulting label values from either of these methods are not representative of the fuel economy for that model type, they may voluntarily lower these values. All 2011 and later model year mediumduty passenger vehicles must be labeled for fuel economy, usi ng the derived 5-cycle method or, at the manufacturer's option, the vehicle-specific 5-cycle method. Fuel economy label values for dual fuel vehicles operating on alcohol-based or natural gas fuel are calculated separately.

(1) Vehicle-specific 5-cycle labels. The city and highway configur ation fuel economy determined in §600.207–08, rounded to the nearest mpg, comprise the fuel economy values for specific fuel economy labels, or, alternatively;

(2) Derived 5-cycle labels. Specific city and highway label values from derived 5-cycle are determined according to the following method:

(i) Determine the derived five-cycle city fuel economy of the configur ation using the equation below and coefficients determined by the Administrator:

Where:

City Intercept = Intercept determined by the Administrato r based on historic vehicle- specific 5-cycle city fuel economy data.

City Slope = Slope determined by the Administrator based on historic vehicle-specific 5-cycle city fuel economy data.

Config FTP FE = the configuration FTP-based city fuel economy determined under §600.206–08, rounded to the nearest tenth.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 231 of 315 (ii) Determine the derived five-cycle highway fuel economy of the configuration using the equation below and coefficients de termined by the Administrator:

Where:

Highway Intercept = Intercept determined by the Administra tor based on historic vehi cle-specific 5-cycle highway fuel economy data.

Highway Slope = Slope determined by the Administrator based on historic vehicle-specific 5-cycle highway fuel economy data.

Config HFET FE = the configuration highway fuel economy determined under §600.206–08, rounded to the nearest tenth.

(iii) The slopes and intercepts of paragr aph (a)(2)(iii) of this section apply.

(3) Specific alternate fuel label values for dual-fueled vehicl es. (i) Specific city and highway label values for dual fuel alcohol-b ased and natural gas vehicles wh en using the alternate fuel are separately determined by the following calculation:

Where:

FE alt = The unrounded FTP-based configuration city or HFET-based configuration highway fuel economy from the alternate fuel, as dete rmined in §600.206.

5cycle FE gas = The unrounded vehicle-sp ecific or derived 5-cycle configuration city or highway fuel economy as determined in paragraph (b)(1) or (b)(2) of this section.

FE gas = The unrounded FTP-based city or HFET-based configuration highway fuel economy from gasoline, as determined in §600.206–08.

The result, rounded to the nearest whole number, is the alternate fuel label value for dual fuel vehicles.

(ii) Optionally, if complete 5-cycle testing ha s been performed using the alternate fuel, the manufacturer may choose to use the alternate fu el label city or highway value result in §600.207–08(a)(4)(ii), rounded to the nearest whole number.

(c) For the purposes of calcula ting the combined fuel economy for a model type, to be used in displaying on the label and for determ ining annual fuel costs under §600.302–08, the manufacturer shall:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 232 of 315 (1)(i) For gasoline-fueled, diesel-fueled, alcohol -fueled, and natural gas-fu eled automobiles, and for dual fuel automobiles operated on gasoline or diesel fuel, harmonically average the unrounded city and highway values, determined in pa ragraphs (a)(1) or (2) of this section and (b)(1) or (2) of this section, weighted 0.55 and 0.45 resp ectively, and round to the nearest whole mpg. (An example of this calcu lation procedure appears in Ap pendix II of this part); or

(ii) For alcohol dual fuel and natural gas dual fu el automobiles operated on the alternate fuel, harmonically average the unrounded c ity and highway values from the tests performed using the alternative fuel as determined in paragraphs (a)( 3) and (b)(3) of this section, weighted 0.55 and 0.45 respectively, and round to the nearest whole mpg.

(d)(1) Label values for 2008–2010 model year automobiles (except medium-duty passenger vehicles) the city and highway values for a mode l type must be determined by the same method. If the manufacturer optionally chooses to determine fuel economy for a model type using the vehicle-specific 5-cycle method, that method must be used to determine both the city and highway fuel economy.

(2) For 2011 and later model year automobiles, if the criteria in §600.115–08(a) are met for a model type, both the city and hi ghway fuel economy must be determined using the vehiclespecific 5-cycle method. If the criteria in §600.1 15–08(b) are met for a model type, the city fuel economy may be determined using either met hod, but the highway fuel economy must be determined using the vehicle-specific 5-cycle method (or modified 5-cycle method as allowed under §600.114–08(b)(2)).

(3) If the criteria in §600.115–08 ar e not met for a model type, the city and highway label values must be determined by using the same method, e ither the derived 5-cycl e or vehicle-specific 5- cycle.

(e) Fuel economy values and other informa tion for advanced t echnology vehicles. (1) The Administrator may prescribe an alternative method of determini ng the city and highway model type fuel economy values for general, unique or specific fuel economy labels other than those set forth in this subpart C of this part for advanced technology vehicles includ ing, but not limited to battery electric vehicles, fuel ce ll vehicles, plug-in hybrid electric vehicles and vehicles equipped with hydrogen internal combustion engines.

(2) For advanced technology ve hicles, the Administrator may prescribe special methods for calculating and/or determining information other than fuel economy that is required to be displayed on fuel economy labels as specified in section 600.302–08(k) of this part. For example, the Administrator may prescribe methods to dete rmine the city and highway electrical energy consumption values and the all electric driving range for battery electric vehicles and plug-in hybrid electric vehicles.

§ 600.210-12 Calculation of fuel economy and CO 2 emission values for labeling.

(a) General labels. Except as permitted in paragraph (e) of this section, fuel economy and CO 2 emissions for general labels can be determined by two methods. The first is based on vehicle-Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 233 of 315 specific model-type 5-cycle data as determ ined in §600.209–12(b). This method is required (except for dedicated alternative- fuel vehicles, dual fuel vehicl es when operating on alternative fuel, and medium duty passenger vehicles) unl ess otherwise indicat ed according to the provisions in §600.115. The second method is the de rived 5-cycle method, and is based on fuel economy and CO 2 emissions that are derived from vehicl e-specific 5-cycle model type data as determined in paragraph (a)(2) of this section. If the manufacturer determines that the resulting label values from either of these methods ar e not representative of the fuel economy or CO 2 emissions for that model type, they may voluntar ily lower the fuel economy values and raise the CO 2 values. All medium-duty passen ger vehicles, dedicated alternative-fueled vehicles, and dual fuel vehicles when operating on alternative fuel must be labe led using the derived 5-cycle method or, at the manufacturer's option, the vehi cle-specific 5-cycle met hod. Fuel economy and CO 2 emission label values for dual fuel vehicles operating on alcohol-based or natural gas fuel are calculated separately.

(1) Vehicle-specific 5-cycle labels. The city and highway model type fuel economy determined in §600.209–12(b), rounded to the nearest mpg, a nd the city and highway model type CO 2 emissions determined in §600.209–12(b), rounded to the nearest gram per mile, comprise the fuel economy and CO 2 emission values for general fuel economy labels, or, alternatively;

(2) Derived 5-cycle labels. Derived 5-cycle city and highway label values are determined according to the following method:

(i)(A) For each model type, determine the deri ved five-cycle city fuel economy using the following equation and coefficients determined by the Administrator:

Where:

City Intercept = Intercept determined by the Ad ministrator based on hist oric vehicle-specific 5- cycle city fuel economy data.

City Slope = Slope determined by the Administrato r based on historic ve hicle-specific 5-cycle city fuel economy data.

MT FTP FE = the model type FTP-based city fuel economy determined under §600.208–12(b), rounded to the nearest 0.0001 mpg.

(B) For each model type, determine the derived five-cycle city CO 2 emissions using the following equation and coefficients determined by the Administrator:

2 2 CO FTP MT Slope} {City Intercept} {City COCity cycle5 Derived × + = −

Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 234 of 315 City Intercept = Intercept determined by the Ad ministrator based on hist oric vehicle-specific 5- cycle city fuel economy data.

City Slope = Slope determined by the Administrato r based on historic ve hicle-specific 5-cycle city fuel economy data.

MT FTP CO 2 = the model type FTP-based city CO 2 emissions determined under §600.208– 12(b), rounded to the nearest 0.1 grams per mile.

(ii)(A) For each model type, de termine the derived five-cycle highway fuel economy using the equation below and coefficients de termined by the Administrator:

Where:

Highway Intercept = Intercept determined by the Administrator base d on historic vehiclespecific 5-cycle highway fuel economy data.

Highway Slope = Slope determined by the Admini strator based on histor ic vehicle-specific 5- cycle highway fuel economy data.

MT HFET FE = the model type highway fuel economy determined under §600.208–12(b), rounded to the nearest 0.0001 mpg.

(B) For each model type, determine the derived five-cycle highway CO 2 emissions using the equation below and coefficients de termined by the Administrator:

2 2 CO HFET MT Slope} {Highway Intercept} {Highway CO Highway cycle5 Derived × + = −

Where:

Highway Intercept = Intercept determined by the Administrator base d on historic vehiclespecific 5-cycle highway fuel economy data.

Highway Slope = Slope determined by the Admini strator based on histor ic vehicle-specific 5- cycle highway fuel economy data.

MT HFET CO 2 = the model type highway CO 2 emissions determined under §600.208–12(b), rounded to the nearest 0.1 grams per mile.

(iii) For 2008 and later model y ear vehicles, unless and until superseded by written guidance from the Administrator, the following intercepts and slopes shall be used in the equations in paragraphs (a)(2)(i) and (a)(2)(ii) of this section:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 235 of 315 City Intercept = 0.003259.

City Slope = 1.1805.

Highway Intercept = 0.001376.

Highway Slope = 1.3466.

The Administrator will periodically update the slopes and intercepts via guidance and will determine the model year that the new coefficients must take effect. The Administrator will issue guidance no later than six months prior to the earliest starting date of the effective model year (e.g., for 2011 models, the earliest start of the mode l year is January 2, 2010, so guidance would be issued by July 1, 2009.) Until otherwise instructed by written guidance from the Administrator, manufacturers must use the coe fficients that are in currently in effect.

(3) General alternate fuel economy and CO 2 emissions label values for dual-fueled vehicles. (i)(A) City and Highway fuel economy label valu es for dual fuel alcohol-based and natural gas vehicles when using the alternate fuel are sepa rately determined by the following calculation:

Where:

FE alt = The unrounded FTP-based model-type city or HFET-based model-type highway fuel economy from the alternate fuel, as determined in §600.208-12(b)(5)(ii).

5cycle FE gas = The unrounded vehicle-specifi c or derived 5-cycle mode l-type city or highway fuel economy, as determined in paragraph (a)(1) or (a )(2) of this section.

FE gas = The unrounded FTP-based city or HFET-based model type highway fuel economy from gasoline (or diesel), as dete rmined in §600.208-12(b)(5)(i).

The result, rounded to the nearest whole number, is the alternate fuel label value for dual fuel vehicles.

(B) City and Highway CO 2 label values for dual fuel alcohol -based and natural gas vehicles when using the alternate fuel are separate ly determined by the following calculation:

gas gas alt alt CO COcycle CO CODerived 2 25 22 ×=

Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 236 of 315 CO2 alt = The unrounded FTP-based model-type city or HFET-based model-type CO 2 emissions value from the alternate fuel, as determined in §600.208-12(b)(5)(ii).

5cycle CO2 gas = The unrounded vehicle-specific or derive d 5-cycle model-type city or highway CO 2 emissions value, as determined in para graph (a)(1) or (a)(2) of this section.

CO2 gas = The unrounded FTP-based city or HFET-based model type highway CO 2 emissions value from gasoline (or diesel), as determined in §600.208-12(b)(5)(i).

The result, rounded to the nearest whol e number, is the alternate fuel CO 2 emissions label value for dual fuel vehicles.

(ii) Optionally, if complete 5-cycle testing ha s been performed using the alternate fuel, the manufacturer may choose to use the alternate fu el label city or highway fuel economy and CO 2 emission values determined in §600.209–12(b)(5)(i i), rounded to the ne arest whole number.

(4) General alternate fuel economy and CO 2 emissions label values for electric vehicles. Determine city and highway fuel economy label va lues for electric vehicles using the procedures specified in SAE J1634 (incorpor ated by reference in §600.11). Determine these values by running the appropriate repeat te st cycles as specified in SAE J1634. Convert W-hour/mile results to miles per kW-hr and miles per gasoline-equivalent gallon. CO 2 label information is based on tailpipe emissions only, so CO 2 emissions from electric vehicles are assumed to be

zero.

(b) Specific Labels. The following two methods are used to de termine specific labels. The first is based on vehicle-specific configuration 5-cycl e data as determined in §600.207. The second method is based on derived 5-cycle configuration da ta as determined in paragraph (a)(2) of this section. If the manufacturer determines that the resulting label values from either of these methods are not representative of the fuel economy and CO 2 emissions for that model type, they may voluntarily lower the fuel ec onomy values and raise the CO 2 emission values. All mediumduty passenger vehicles must be labeled us ing the derived 5-cycl e method or, at the manufacturer's option, th e vehicle-specific 5-cycle method. Fuel economy and CO 2 emission label values for dual fuel vehicles operating on al cohol-based or natural gas fuel are calculated separately.

(1) Vehicle-specific 5-cycle labels. The city and highway configur ation fuel economy determined in §600.207, rounded to the nearest mpg, a nd the city and highway configuration CO 2 emissions determined in §600.207, rounded to the nearest gram per mile, comprise the fuel economy and CO 2 emission values for specific fuel economy labels, or, alternatively;

(2) Derived 5-cycle labels. Specific city and highway label values from derived 5-cycle are determined according to the following method:

(i)(A) Determine the derived five-cycle city fuel economy of the configuration using the equation below and coefficients de termined by the Administrator:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 237 of 315 Where:

City Intercept = Intercept determined by the Ad ministrator based on hist oric vehicle-specific 5- cycle city fuel economy data.

City Slope = Slope determined by the Administrato r based on historic ve hicle-specific 5-cycle city fuel economy data.

Config FTP FE = the configur ation FTP-based city fuel economy determined under §600.206, rounded to the nearest 0.0001 mpg.

(B) Determine the derived five-cycle city CO 2 emissions of the configuration using the equation below and coefficients determined by the Administrator:

2 2 CO FTP Config Slope} {City Intercept} {City COCity cycle5 Derived × + = −

Where:

City Intercept = Intercept determined by the Ad ministrator based on hist oric vehicle-specific 5- cycle city fuel economy data.

City Slope = Slope determined by the Administrato r based on historic ve hicle-specific 5-cycle city fuel economy data.

Config FTP CO 2 = the configuration FTP-based city CO 2 emissions determined under §600.206, rounded to the nearest 0.1 grams per mile.

(ii)(A) Determine the derived five-cycle highway fuel economy of the c onfiguration using the equation below and coefficients de termined by the Administrator:

Where:

Highway Intercept = Intercept determined by the Administrator base d on historic vehiclespecific 5-cycle highway fuel economy data.

Highway Slope = Slope determined by the Admini strator based on histor ic vehicle-specific 5- cycle highway fuel economy data.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 238 of 315 Config HFET FE = the configuration hi ghway fuel economy determined under §600.206, rounded to the nearest tenth.

(B) Determine the derived five-cycle highway CO 2 emissions of the configuration using the equation below and coefficients de termined by the Administrator:

2 2 CO HFET Config Slope} {Highway Intercept} {Highway CO Highway cycle5 Derived × + = −

Where:

Highway Intercept = Intercept determined by the Administrator base d on historic vehiclespecific 5-cycle highway fuel economy data.

Highway Slope = Slope determined by the Admini strator based on histor ic vehicle-specific 5- cycle highway fuel economy data.

Config HFET CO 2 = the configuration highway fuel economy determined under §600.206, rounded to the nearest tenth.

(iii) The slopes and intercepts of paragr aph (a)(2)(iii) of this section apply.

(3) Specific alternate fuel economy and CO 2 emissions label values for dual-fueled vehicles. (i)(A) Specific city and highway fuel economy label values for dual fuel alcohol-based and natural gas vehicles when using the alternate fuel ar e separately determined by the following calculation:

Where:

FE alt = The unrounded FTP-based configuration city or HFET-based configur ation highway fuel economy from the alternate fuel , as determined in §600.206.

5cycle FE gas = The unrounded vehicle-specifi c or derived 5-cycle confi guration city or highway fuel economy as determined in paragraph (b)(1) or (b)(2) of this section.

FE gas = The unrounded FTP-based city or HFET-based configuration highway fuel economy from gasoline, as determined in §600.206.

The result, rounded to the nearest whole number, is the alternate fuel label value for dual fuel vehicles.

(B) Specific city and highway CO 2 emission label values for dual fuel alcohol-based and natural gas vehicles when using the alte rnate fuel are separately determ ined by the following calculation:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 239 of 315 gas gas alt alt CO COcycle CO CODerived 2 25 22 ×=

Where:

CO2 alt = The unrounded FTP-based configuration city or HFET-based configuration highway CO 2 emissions value from the alternate fuel, as determined in §600.206.

5cycle CO2 gas = The unrounded vehicle-specific or derived 5-cycle configuration city or highway CO 2 emissions value as determined in paragr aph (b)(1) or (b)(2) of this section.

CO2 gas = The unrounded FTP-based city or HFET-based configuration highway CO 2 emissions value from gasoline, as determined in §600.206.

The result, rounded to the nearest whol e number, is the alternate fuel CO 2 emissions label value for dual fuel vehicles.

(ii) Optionally, if complete 5-cycle testing ha s been performed using the alternate fuel, the manufacturer may choose to use the alternate fu el label city or highway fuel economy and CO 2 emission values determined in §600.207–12(a)(4)(i i), rounded to the ne arest whole number.

(4) Specific alternate fuel economy and CO 2 emissions label values for electric vehicles. Determine city and highway fuel economy label va lues for electric vehicles using the procedures specified in SAE J1634 (incorpor ated by reference in §600.11). Determine these values by running the appropriate repeat te st cycles as specified in SAE J1634. Convert W-hour/mile results to miles per kW-hr and miles per gasoline-equivalent gallon. CO 2 label information is based on tailpipe emissions only, so CO 2 emissions from electric vehicles are assumed to be

zero.

(c)(1) For the purposes of calculating the combined fuel economy for a model type, to be used in displaying on the label and for determining annua l fuel costs under subpart D of this part, the manufacturer shall:

(i) For gasoline-fueled, diesel-fueled, alcohol-fue led, and natural gas-fueled automobiles, and for dual fuel automobiles operated on gasoline or diesel fuel, harmonically average the unrounded city and highway fuel economy values, determined in paragraphs (a)(1) or (2) of this section and (b)(1) or (2) of this section, weighted 0.55 and 0.45 resp ectively, and round to the nearest whole mpg. (An example of this calcu lation procedure appears in Ap pendix II of this part); or

(ii) For alcohol dual fuel and natural gas dual fu el automobiles operated on the alternate fuel, harmonically average the unrounded c ity and highway values from the tests performed using theFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 240 of 315 alternative fuel as determined in paragraphs (a)( 3) and (b)(3) of this section, weighted 0.55 and 0.45 respectively, and round to the nearest whole mpg.

(iii) For electric vehicles, calcu late the combined fuel economy, in miles per kW-hr and miles per gasoline-equivalent gallon, by harmonica lly averaging the unrounded city and highway values, weighted 0.55 and 0.45 respectively, and rounding to the nearest whole number.

(iv) For plug-in hybrid electric ve hicles, calculate a combined fuel economy value, in miles per gasoline-equivalent gallon as follows:

(A) Determine city and highway fuel economy valu es for vehicle operati on after the battery has been full discharged (“gas only operation”) as describe d in paragraphs (a) and (b) of this section. Calculate a corresponding combined fuel economy as described in paragraph (c)(1)(i) of this section.

(B) Determine a combined fuel economy value for vehicle operation before the battery has been fully discharged, in miles per gasoline-equivalent gallon, using the proced ures specified in SAE J1711 (incorporated by reference in §600.11). Note that you must also determine this fuel economy value in miles per kW-hr for calculating annual fuel cost as described in §600.311-12.

(C) Calculate an overall value fo r combined fuel economy consider ing operation before and after the battery is fully discharged using the approp riate utility factor as specified in SAE J2841 (incorporated by reference in §600.11). R ound the result to the nearest whole mpg.

(2) For the purposes of calculating the combined CO 2 emissions value for a model type, to be used in displaying on the label under subpart D of this part, th e manufacturer shall:

(i) For gasoline-fueled, diesel-fueled, alcohol-fue led, and natural gas-fueled automobiles, and for dual fuel automobiles operated on gasoline or di esel fuel, arithmetically average the unrounded city and highway values, determined in paragraphs (a)(1) or (2) of this se ction and (b)(1) or (2) of this section, weighted 0.55 and 0.45 respectively, and round to the nearest whole gram per mile; or

(ii) For alcohol dual fuel and natural gas dual fu el automobiles operated on the alternate fuel, arithmetically average the unrounded city and highway CO 2 emission values from the tests performed using the alternative fuel as determined in paragraphs (a )(3) and (b)(3) of this section, weighted 0.55 and 0.45 respectively, and r ound to the nearest whole gram per mile.

(iii) CO 2 label information is based on tailpipe emissions only, so CO 2 emissions from electric vehicles are assumed to be zero.

(iv) For plug-in hybrid electric vehicles, calculate combined CO 2 emissions as follows:

(A) Determine city and highway CO 2 emission values for vehicle op eration after the battery has been full charged (“gas only operati on”) as described in paragraphs (a) and (b) of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 241 of 315 Calculate a corresponding combined CO 2 emission value as described in paragraph (c)(2)(i) of this section.

(B) Determine a combined CO 2 emission rate for vehicle operati on before the battery has been fully discharged using the procedures specifi ed in SAE J1711 (incorpo rated by reference in §600.11). Note that CO 2 label information is based on tailpipe emissions only, so CO 2 emissions associated with operation on electricity that wa s originally produced outside the vehicle are assumed to be zero.

(C) Calculate an overall value fo r combined fuel economy consider ing operation before and after the battery is fully discharged using the approp riate utility factor as specified in SAE J2841 (incorporated by reference in §600.11). Round the result to the nearest whole number.

(d)(1) Label values for 2008–2010 model year automobiles (except medium-duty passenger vehicles) the city and highway values for a mode l type must be determined by the same method. If the manufacturer optio nally chooses to determine fuel economy and CO 2 emissions for a model type using the vehicle-spec ific 5-cycle method, that method must be used to determine both the city and highway fuel economy and CO 2 emissions values.

(2) For 2011 and later model year automobiles, if the criteria in §600.115–08(a) are met for a model type, both the city and highway fuel economy and CO 2 emissions values must be determined using the vehicle-specific 5-cycle method. If the criteria in §600.115–08(b) are met for a model type, the city fuel economy and CO 2 emissions values may be determined using either method, but the highway fuel economy and CO 2 emissions values must be determined using the vehicle-specific 5-cycle method (o r modified 5-cycle method as allowed under §600.114–12(b)(2)).

(3) If the criteria in §600.115 are not met for a model type, th e city and highway fuel economy and CO 2 emission label values must be determined by using the same method, either the derived 5-cycle or vehicle-specific 5-cycle.

(e) Fuel economy values and other informa tion for advanced t echnology vehicles. (1) The Administrator may prescribe an alternative method of determini ng the city and highway model type fuel economy and CO 2 emission values for general, unique or specific fuel economy labels other than those set forth in this subpart C fo r advanced technology vehicles including, but not limited to fuel cell vehicles, hybrid electric vehicles using hydraulic energy storage, and vehicles equipped with hydrogen internal combustion engines.

(2) For advanced technology ve hicles, the Administrator may prescribe special methods for determining information other than fuel economy that is required to be displayed on fuel economy labels as specified in §600.302-12(e).



### § 600.211-08 Sample calculation of fuel economy values for labeling.

An example of the calculation required in this subpart appears in Appendix III of this part.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 242 of 315 

### Subpart D—Fuel Economy Labeling
15. The heading for subpart D is revised as set forth above.

§600.301-08, §600.301-12, §600.301-86, §600.301-95, §600.302-77, §600.303-77, §600.304-77, §600.305-77, §600.306-86, §600.307-86, §600.307-95, §600.310-86, §600.311-86, §600.313-86, §600.314-01, §600.314-86, §600.315-82—[Removed]
16. Subpart D is amended by rem oving the following sections:

§600.301-08 §600.301-12 §600.301-86 §600.301-95 §600.302-77 §600.303-77 §600.304-77 §600.305-77 §600.306-86 §600.307-86 §600.307-95 §600.310-86 §600.311-86 §600.313-86 §600.314-01 §600.314-86 §600.315-82

17. Redesignate §600.306-08 as §600.301-08.

18. The redesignated §600.301-08 is revised read as follows:



### § 600.301-08 Labeling requirements.

(a) Prior to being offered for sale, each manufact urer shall affix or cause to be affixed and each dealer shall maintain or cause to be maintained on each automobile:

(1) A general fuel economy label (initial, or updated as required in §600.314–08) as described in §600.303–08 or:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 243 of 315 (2) A specific label, for those automobiles manufact ured or imported before the date that occurs 15 days after general labels have been dete rmined by the manufacturer, as described in §600.210–08(b) or §600.210–08(b).

(i) If the manufacturer elects to use a specific label w ithin a model type (as defined in §600.002, he shall also affix specific labels on all auto mobiles within this model type, except on those automobiles manufactured or imported before the da te that labels are required to bear range values as required by paragraph (b ) of this section, or determin ed by the Administrator, or as permitted under §600.310–86.

(ii) If a manufacturer elects to change from general to specific labels or vice versa within a model type, the manufacturer shall, within five calendar days, initiate or discontinue as applicable, the use of specific labels on all vehicl es within a model type at all facilities where labels are affixed.

(3) For any vehicle for which a specific labe l is requested which has a combined FTP/HFETbased fuel economy value, as determined in §600.513–08, at or below the minimum tax-free value, the following statement must appear on the specific label:

“[Manufacturer's name] may have to pay IRS a Ga s Guzzler Tax on this vehicle because of the low fuel economy.”

(4)(i) At the time a general fuel economy value is determined for a model type, a manufacturer shall, except as provided in paragrap h (a)(4)(ii) of this section, relabel, or cause to be relabeled, vehicles which:

(A) Have not been delivered to the ultimate purchaser, and

(B) Have a combined FTP/HFET-based model t ype fuel economy value (as determined in §600.208–08(b) or §600.208-12(b)of 0.1 mpg or more below the lowest fuel economy value at which a Gas Guzzler Tax of $0 is to be assessed.

(ii) The manufacturer has the option of re-labe ling vehicles during the first five working days after the general label value is known.

(iii) For those vehicle model types which have b een issued a specific label and are subsequently found to have tax liability, the manufacturer is re sponsible for the tax lia bility regardless of whether the vehicle has been so ld or not or whether the vehi cle has been relabeled or not.

(b) Fuel economy range of comparable vehicles. The manufacturer shall include the current range of fuel economy of comparable automobiles (as described in §§600.311 and 600.314) in the label of each vehicle manufactured or importe d more than 15 calendar days after the current range is made available by the Administrator.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 244 of 315 (1) Automobiles manufactured or imported before a date 16 or more calendar days after the initial label range is made av ailable under §600.311 sh all include the range from the previous model year.

(2) Automobiles manufactured or imported more th an 15 calendar days afte r the label range is made available under §600.311 shall be labeled with the current rang e of fuel economy of comparable automobiles as approved for that label.

(c) The fuel economy label must be readily visi ble from the exterior of the automobile and remain affixed until the time the automobile is delivered to the ultimate consumer.

(1) It is preferable that the fuel economy label information be incorporat ed into the Automobile Information Disclosure Act label, provided that the prominence and legibility of the fuel economy label is maintained. For this purpose, all fuel economy label information must be placed on a separate section in th e Automobile Information Disclosure Act label and may not be intermixed with that label information, excep t for vehicle descriptions as noted in §600.303– 08(d)(1).

(2) The fuel economy label must be located on a side window. If the window is not large enough to contain both the Automobile Information Disc losure Act label and the fuel economy label, the manufacturer shall have the fuel economy labe l affixed on another window and as close as possible to the Automobile Information Disclosure Act label.

(3) The manufacturer shall have the fuel economy label affixed in such a manner that appearance and legibility are maintained until after the vehicle is delivered to the ultimate consumer.

19. Redesignate §600.307-08 as §600.302-08.

20. The redesignated §600.302-08 is re vised to read as follows:



### § 600.302-08 Fuel economy label format requirements.

Examples of fuel economy labels for gasoline and diesel vehicles, dual fuel vehicles and alternate fuel vehicles are provi ded in Appendix IV of this part . Detailed printing specifications are given in Appendix V of this part, and unless otherwise permitted, apply to the provisions in this section. The Administrator may approve modifications to the style guidelines in cases where there may be space limitations and/or legibility concerns.

(a) Fuel economy labels must be:

(1) Rectangular in shape with a minimum height of 4.5 inches (114 mm) and a minimum length of 7.0 inches (178 mm) as specifi ed in Appendix V of this part.

(2) Printed in a color which contrasts with th e background paper color.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 245 of 315 (3) Have a contrasting border, with dimensi ons specified in Appe ndix V of this part.

(b) Label information. The information on the label shall contain:

(1) The titles “CITY MPG” and “HIGHWAY MPG” , centered over the app licable fuel economy estimates.

(2) The numeric, whole-number city and highw ay estimates, as determined in §600.210–08, as specified in Appendix V of this pa rt. The font size of the numbers may be larger than specified, provided: that the city and highw ay numbers are equal in size; th at the titles “CITY MPG” and “HIGHWAY MPG” are increased in the same proportion; and that doing so does not obscure the other information on the label.

(i) For dedicated gasoline-fueled, diesel-fuele d, alcohol-fueled, and natural gas-fueled automobiles, the city and highway fuel ec onomy estimates calculated in accordance with §600.210–08.

(ii) For alcohol dual fuel automobiles and natu ral gas dual fuel automobiles, the city and highway fuel economy estimates for operation on gasoline or diesel fu el as calculated in §600.210–08(a) and (b).

(3) The fuel pump logo.

(4) The following phrase, located and formatted as shown in Appendix V of this part: “Your actual mileage will vary depending on how you drive and maintain your vehicle.”

(5) The statement: “Expected range for most driv ers: __ to __ mpg”, pl aced underneath both the city and highway estimates, centered to the estimate numbers. The range values for this statement are to be calculated in accordance with the following:

(i) The lower range values shall be determined by multiplying the city and highway estimates by 0.83, then rounding to the ne xt lower integer value.

(ii) The upper range values shall be determined by multiplying the city and highway estimates by 1.17 and rounding to the ne xt higher integer value.

(6) The top border shall contai n the centered title “EPA Fuel Economy Estimates” in a contrasting color.

(7) Alternate fuel titles. (i) For dedicated alcohol-fueled automob iles, the title “[insert appropriate fuel (e.g., “ETHANOL (E85))”]*”. The title sha ll be positioned and sized according to the style guidelines in Appendix V of this part.

(ii) For dedicated natural gas-fu eled automobiles, the title “NAT URAL GAS*”. The title shall be positioned in the grey area above the window of the fuel pump logo, in a size and format specified in Appendi x V of this part.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 246 of 315 (iii) For alcohol-based dual fuel automobiles a nd natural gas dual fuel automobiles, the title “Dual Fuel Vehicle*”, and direc tly below that, the ti tle “[insert appropri ate conventional fuel (example Gasoline)]-[insert appropriate alternate fu el (example “Ethanol (E85)”]”. Both of these titles are centered in the grey area above the window of the fu el pump logo, with a size and format specified in Appendix V of this part.

(8) Alternate fuel information. (i) For dedicated alcohol-fueled au tomobiles, the title “[insert appropriate fuel (example “E85”)]” centered ab ove the title “CITY MPG” and above the title “HIGHWAY MPG” with a size and format specified in Appendix V of this part.

(ii) For dedicated natural gas-fueled au tomobile, the title “GASOLINE EQUIVALENT” centered above the title “CITY MPG” and above the title “HIGHWAY MPG” with a size and format specified in Appendix V of this part.

(iii) For alcohol dual fuel automobiles and na tural gas dual fuel automobiles, the title “GASOLINE” [or “DIESEL”, as applicable] cent ered above the title “CITY MPG” and above the title “HIGHWAY MPG” with a size and form at specified in Appendix V of this part.

(9) The bottom border of the label shall contai n the following centered statement, formatted according to the style guidelines in Appendix V: “See the FREE Fuel Economy Guide at dealers

or www.fueleconomy.gov ”.

(10) If the label is separate from the Automob ile Information Disclosure Act label, the vehicle description, as described in para graph (d) of this section, locate d on the label such that it does not interfere with the other required information. In cases where the vehicle description information may not easily fit on the label, the manufactur er may request Admini strator approval of modifications to the label format to accommodate this information.

(11) Comparison fuel economy. A graphic depiction of comparis on fuel economy information, in the style and format given in Appendix V of this part, containing the following elements:

(i) A bar that represents the total range of comb ined fuel economy for the applicable class of comparison fuel economy.

(ii) A downward pointing tail-less arrow, located at the top of th e bar positioned on the bar where that vehicle's combined fuel economy falls re lative to the range of comparable vehicles.

(iii) The combined fuel economy value for the vehicle as determined in §600.210–08(c), located directly above the arrow.

(iv) The statement “This Vehicle” directly above the combined fuel economy number.

(vi)(A) For gasoline and diesel fuel vehicles, the statement “C ombined Fuel Economy”, located above the “This Vehicle” statemen t, and centered above the bar.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 247 of 315 (B) For dual fuel vehicles, the statement “Combine d Gasoline [or “Diesel”, as appropriate] Fuel Economy”, located above the “This Vehicle” statemen t, and centered above the bar, in two lines, if needed.

(C) For dedicated natural gas vehicles, the st atement “Combined Gasoline Equivalent Fuel Economy”, located above the “This Vehicle” statemen t, and centered above the bar, in two lines, if needed.

(v) The upper and lower MPG ranges for that cl ass of vehicles, with the lower range shown directly to the left of the bar and the upper range di rectly to the ri ght of the bar. The range values are those determined in accordance with §600.311.

(vi) The statement “All [name of the comparable vehicle class]s”, centered below the bar. The names of the comparable classes given in §600. 315–08 apply. For the purpose of presenting the name of the class on the label, the followi ng class names may be s hortened as indicated: minicompact cars may be “Minicompacts”, subc ompact cars may be “Subcompacts”, compact cars may be “Compacts”, small station wagons may be “Small Wagons”, midsize station wagons may be “Midsize Wagons”, large station wagons may be “Large Wagons”, small pickup trucks may be “Small Pickups”, standard pickup trucks may be “Standard Pickups”, and sport utility vehicles may be “SUVs”.

(12)(i) The statement: “Estimated Annual Fuel Cost:” followed by the appropriate value calculated in accordance with para graph (f) or (g) of this sec tion and the statement “based on [EPA-provided number of miles pe r paragraph (f) of this secti on] miles at [the EPA-provided dollar cost per gallon of the requir ed fuel for that vehicle] per gallon of gasoline.” The estimated annual fuel cost value for alcoho l dual fuel automobile s and natural gas dual fuel vehicles to appear on the fuel economy labe l shall be that calculated based on operating the vehicle on gasoline or diesel fuel as determined in paragraphs (f) and (g) of this section.

(ii) At the manufacturer's option, the label may al so contain the estimated annual fuel cost value based on operating the vehicle on the alternative fuel.

(13) The Gas Guzzler statement, when applicable (see paragraph (e) of this section), must be located on the bottom half of the la bel, either in the space reserved for alternate fuel information, or, if the vehicle is an alternate fuel vehicle, directly beneath this space.

(14) Alternate fuel statement. (i) For dedicated alternate fuel au tomobiles, the statement: “* This vehicle operates on NATURAL GAS FUEL [or other alternate fuel as appropriate] only. Fuel economy is expressed in gasoline eq uivalent values.” This statem ent is located on the right-hand bottom portion of the label. See Appendix V of this part for details of location, size and format.

(ii) For dual fuel automobiles, the statemen t: “*Fuel economy when operating on E85 [or other alternate fuel as appropriate] will yield different values than gasoline [or diesel as appropriate]. See Fuel Economy Guide for more information. ” Optionally, this statement may be replaced with the city, highway and combined fuel economy values using the alternate fuel, in a size and format specified in Appendix V of this part.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 248 of 315 (c) The city mpg number shall be displayed on the upper half of the left side of the label and the highway mpg number displayed on the upper half of the right side of the label. If the manufacturer chooses to enlarge th e label from that specified in pa ragraph (a)(1) of this section, the logo and the fuel economy label values, in cluding the titles “CIT Y MPG” and “HIGHWAY MPG”, must be increased in the same proportion.

(d) Vehicle description informati on for general and specific labels.

(1) Where the fuel economy label is physically in corporated with the Motor Vehicle Information and Cost Savings Act label, the a pplicable vehicle description, as set forth in this paragraph, does not have to be repeated if the info rmation is readily found on this label.

(2) For fuel economy labels which are physically separate from the Motor Vehicle Information and Cost Savings Act label, the vehicle descri ption on general labels will be as follows:

(i) Model year;

(ii) Vehicle car line;

(iii) Engine displacement, in cubic inches, cubic centimeters, or liters whichever is consistent with the customary descri ption of that engine;

(iv) Transmission class.

(v) Other descriptive information, as necessa ry, such as number of engine cylinders, to distinguish otherwise identical model types or, in the case of specific labels, vehicle configurations, as approv ed by the Administrator.

(e)(1) For fuel economy labels of passenger auto mobile model types requ iring a tax statement under §600.513–08, the phrase “Gas Guzzler Tax” followed by the dollar amount, in a size and format specified in Appendix V of this part.

(2) The tax value required by this paragraph shall be based on the combined fuel economy value for the model type calculated in accordance with §600.513–08 and rounded to the nearest 0.1
mpg.

(f) Estimated annual fuel cost—general labels. The annual fuel cost estimate for operating an automobile included in a model type shall be co mputed by using values for the fuel cost per gallon of the recommended fuel as specified by the manufacturer in the owner's manual and average annual mileage, predetermined by the Administrator, and the combined fuel economy determined in §600.210(c).

(1) The annual fuel cost estimate for a model type is computed by multiplying:

(i) Fuel cost per gallon (natural gas must be expressed in uni ts of cost per equivalent gallon, where 100 SCF = 0.823 equivalent gallons) expresse d in dollars to the ne arest 0.05 dollar; byFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 249 of 315 (ii) Average annual mileage, expressed in miles per year to the nearest 1,000 miles per year, by

(iii) The inverse of the combined fuel econom y value determined in §600.210–08(c) for a model type (as determined in §600.210–08(a), rounded to the nearest 0.0001 gallons per mile (natural gas must be expressed in units of gallon equi valent per mile, where 100 SCF=0.823 equivalent gallons).

(2) The product computed in paragraph (f)(1) of this section and rounded to the nearest dollar per year will comprise the annual fu el cost estimate that appears on general labels for the model type.

(g) Estimated annual fuel co st—specific labels. (1) The annual fuel cost estimate for operating an automobile included in a vehicle configuration w ill be computed by using the values for the fuel cost per volume (gallon for liqui d fuels, cubic feet for gaseous fuels) and average mileage and the fuel economy determined by multiplying:

(i) Fuel cost per gallon (natural gas must be expressed in uni ts of cost per equivalent gallon, where 100 SCF=0.823 equivalent ga llons) expressed in dollars to the nearest 0.05 dollar; by

(ii) Average annual mileage, expressed in miles per year to the nearest 1,000 miles per year, by

(iii) The inverse, rounded to the nearest 0.0001 ga llons per mile (natural gas must be expressed in units of gallon equivalent per mile, where 100 SCF=0.823 equivalent gallons) of the combined fuel economy value determined in §600.210–08(c) for a vehicle configuration (as determined in §600.210–08(b).

(2) The product computed in paragraph (g)(1) of this section and rounded to the nearest dollar per year will comprise the annual fuel cost esti mate that appears on specific labels for that vehicle configuration.

(h) through (j) [Reserved]

(k) Special label format requirements. The Administrator may prescrib e special label format and information requirements for vehicles which are not specifically described in this section and for which sample labels are not provided in Appendix IV of this part 600. Th ese types of vehicles may include, but are not limited to battery electric vehicles, fuel cell vehicles, plug-in hybrid electric vehicles and vehicles equipped with hydrogen internal combustion engines. The format and information requirements for the labels of such vehicles will be designed to provide simple, easy to understand, fuel economy values in accordan ce with the way the fuel is expected to be dispensed, sold or marketed in the field to the ultimate consumer. The Administrator may prescribe special label format and information re quirements for other information required to be displayed on fuel economy labels pursuant to 49 U.S.C. 32908(b)(1)(F). For example, the Administrator may prescribe special label format and information requirements to display the city and highway electrical energy consumption va lues and the all electric driving range for battery electric vehicles and pl ug-in hybrid electric vehicles.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 250 of 315 21. A new §600.302-12 is added to s ubpart E to read as follows:



### [NOTE: EPA is including two se parate label formats in this proposal. The label format shown in Appendix VI is described in th e following §600.302-12 . The second label format is shown in Appendix VII but is not described separat ely. The data items specified in §600.311-12(e)(2), (j)(2), and (k) are depi cted only in the second label format. We expect to adopt a single label fo rmat for the final rule. The final label may include all the data items specified in §600.311- 12, regardless of the way they are shown in Appendix VI and Appendix VII.]

§ 600.302-12 Fuel economy label—general provisions.

This section describes labeling re quirements and specifications that apply to all vehicles. The requirements and specifications in this se ction and those in §§600.304 through 600.310 are illustrated in Appendix VI of this part. Manufactu rers must make a good faith effort to conform to the formats illustrated in Appendix VI of this part. Label templates are available for download
at www.epa.gov/FElabels

. (a) Basic format . Fuel economy labels must be rectangul ar in shape with a minimum height of 7.0 inches (178 mm) and a minimum length of 4.5 inches (114 mm). Fuel economy labels must also be printed on white or very light paper with the colors specified in Appendix VII of this part; any label markings for which colors are not specified must be in black and white. The required label can be divided into six separate fields outlined by a continuous border, as described in paragraphs (b) through (h) of this section.

(b) Border . Use a thin line to create an outline border for the label.

(c) Fuel economy grade . Include the following elements in the uppermost portion of the label:

(1) At the top of the field, include the EPA logo and th e heading “Fuel Economy and Environmental Comparison”.

(2) Below the heading, include a large circ le containing the appropriate letter grade characterizing the vehicle’s fuel eco nomy, as described in §600.311-12.

(3) Include the following statement below the le tter grade: The above grade reflects fuel economy and greenhouse gases. Gradi ng system ranges from D to A+.

(4) Manufacturers may optionally include an additional item to allow for accessing interactive information with mobile electronic de vices. To do this, include an image of a QR code that will direct mobile electronic devices to a website with fuel economy information that is specific to the vehicle or, if this website is unavailable, to http://fueleconomy.gov/m/

.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 251 of 315 Generate the QR code as specified in ISO/IEC 18004:2006 (incorporat ed by reference in §600.011). Above the QR code, include the caption “Smartphone”.

(d) Website . In the field directly be low the fuel economy grade, include the following website reference: “itssimple.com”.

(e) Fuel savings . Include one of the following statements in the field directly below the website reference:

(1) For vehicles with calculated fuel savings re lative to the average ve hicle as specified in §600.311-12: “Over five years, this vehicle saves $ x in fuel costs compared to the average vehicle.” Complete the statement by including the calculated fuel savings as specified in §600.311-12.

(2) For vehicles with calculated fuel costs high er than the average vehicle as specified in §600.311-12: “Over five years, you will pay $ x more in fuel costs compared to the average vehicle.” Complete the statement by including the calculated increase in fuel costs as specified in §600.311-12.

(f) Fuel economy and consumption data . Include the following elements in the field directly below the fuel savings statement:

(1) Identify the vehicle’s fuel t ype in a header bar as follows:

(i) For vehicles designed to operate on a single fuel, identify the appropriate fuel. For example, identify the vehicle as “Gasoline Vehicle”, “Diesel Vehi cle”, “Ethanol (E85) Vehicle”, “Natural Gas Vehicle”, etc. This includes hybrid el ectric vehicles that do not have plug-in capability. Include a fuel pum p logo to the left of this designation.

(ii) Identify flexible-fuel vehi cles and dual-fuel vehicles as “Dual Fuel Vehicle: GasolineNatural Gas”, “Dual Fuel Vehicle: Diesel-Eth anol (E85)”, etc. Include a fuel pump logo to the left of this designation.

(iii) Identify plug-in hybrid electric vehicles as “Dual Fu el Vehicle: Plug-in Hybrid Electric” Include a fuel pump l ogo to the left of this design ation and an electric plug logo to the right of this designation.

(iv) Identify electric vehicles as “Electric Vehicle”. Includ e an electric plug logo to the left of this designation.

(2) Create a table below the h eader bar with five data values in the following sequence of columns:

(i) Below the heading “Gallons/100 Miles”, include the value for the fuel consumption rate as described in §600.311-12.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 252 of 315 (ii) Below the heading “MPG City”, include the value for the city fuel economy as described in §600.311-12.

(iii) Below the heading “MPG Highway”, include the value for the highway fuel economy as described in §600.311-12.

(iv) Below the heading “CO 2 g/mile (tailpipe only)”, include the value for the CO 2 emission rate as described in §600.311-12.

(v) Below the heading “Annual fuel cost”, incl ude the value for the a nnual fuel cost as described in §600.311-12.

(3) Include scale bars directly belo w the table of values as follows:

(i) Create a scale bar in the left portion of th e field to characterize the vehicle’s combined city and highway fuel economy relative to th e range of combined fuel economy values for all vehicles. Position a box with a dow nward-pointing arrow above the scale bar positioned to show where that vehicle's combined fuel economy falls relative to the total range. Include the vehicle’s combined fu el economy (as described in §600. 210–12(c)) inside the box. Include the upper and lowe r ends of the MPG or MPGe range for all vehicles, with the lower end of the range s hown on the left end of the scale bar and the upper end of the range shown on the right end of the scale bar. Include the term “Worst” under the number representing th e lower end of the range an d the term “Best” under the number representing the upper end of the ra nge. EPA will periodically calculate and publish updated range values as descri bed in §600.311. Include the expression “Combined MPGe” directly below the scale bar.

(ii) Create a scale bar in the middle portion of the field to charact erize the vehicle’s CO 2 emission rate relative to the range of CO 2 emission rates for all vehicles. Position a box with a downward-pointing arrow above the sc ale bar positioned to show where that vehicle's CO 2 emission rate falls relative to the total range. Include the vehicle’s CO 2 emission rate (as described in §600. 210–12(c)) inside the box. Include the upper and lower ends of the MPG or MPGe range for a ll vehicles, with the lower end of the range shown on the left end of the scale bar and th e upper end of the range shown on the right end of the scale bar. EPA will periodically calculate and publish updated range values as described in §600.311. In clude the expression “CO 2 g/mile” directly below the scale bar.

(iii) Create a scale bar in the right portion of the field to char acterize the vehicle’s level of emission control for other air pollutants relati ve to that of all ve hicles. Position a box with a box with a downward-pointing arrow above the scale bar positioned to show where that vehicle's emission rating falls relativ e to the total range. Include the vehicle’s emission rating (as described in §600. 311-12) in side the box. Include “1 Worst” in the border at the left end of the scale bar and in clude “10 Best” in the border at the right end of the scale bar. EPA will periodically calculate and publish updated range values as described in §600.311. Include th e expression “Other Air Pollu tants” directly below the scale bar.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 253 of 315 (4) Below the scale bars, include two statements as follows:

(i) Include one of the following statements to identify the range of MPG values, which EPA will periodically calculate and publish as described in §600.311:

(A) For electric vehicles a nd plug-in hybrid electric vehi cles: “Fuel economy for all [mid-size cars, SUVs, etc., as applicable] ranges from x to y MPGequivalent. MPGequivalent: 33.7 kW-hrs = 1 gallon gasoline energy.”

(B) For other vehicles: “Fuel economy fo r all [IDENTIFY VEHICLE CLASS] ranges from x to y MPG.”

(ii) Include one of the fo llowing additional statements:

(A) For plug-in hybrid electric vehicl es: “Annual fuel cost is based on x miles per year at $ y per gallon and z cents per kW-hr.” For the value of x , insert the annual mileage rate established by EPA. For the values of y and z , insert the estimated cost per gallon and cost per kW-hr established by EPA for the appropriate fuel and for electricity, respectively.

(B) For electric vehicles: “A nnual fuel cost is based on x miles per year at y cents per kW-hr.” For the value of x , insert the annual mileage ra te established by EPA. For the value of y , insert the estimated cost per kW-h r established by EPA for electricity.

(C) For other vehicles: “Annual fuel cost is based on x miles per year at $ y per gallon.” For the value of x , insert the annual mileage ra te established by EPA. For the value of y , insert the estimated cost per gallon established by EPA for the appropriate fuel.”

(g) Footer . Include the following elements in the lowest portion of the label:

(1) In the left portion of the field, include the statement: “Visit www.fueleconomy.gov to calculate estimates personalized for your driv ing, and to download the Fuel Economy Guide (also available at dealers).”

(2) In the right portion of the field, include the lo gos for the Department of Transportation and the Department of Energy.

(h) Vehicle description. Where the fuel economy label is phys ically incorporated with the Motor Vehicle Information and Cost Savi ngs Act label, no further vehicle description is needed. If the fuel economy label is separate from the Automob ile Information Disclosure Act label, describe the vehicle in a location on the la bel that does not interfere with the other required information. In cases where the vehicle description may not easily fit on the label, the manufacturer may request Administrator approval of modifications to the label format to accommodate this information. Include the following items in the vehicle description, if applicable:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 254 of 315 (1) Model year.

(2) Vehicle car line.

(3) Engine displacement, in cubic inches, cubic ce ntimeters, or liters whichever is consistent with the customary description of that engine.

(4) Transmission class.

(5) Other descriptive information, as necessa ry, such as number of engine cylinders, to distinguish otherwise identical model types or, in the case of specific labels, vehicle configurations, as approv ed by the Administrator.

(i) [Reserved]

(j) Gas guzzler provisions . For vehicles requiring a tax stat ement under §600.513, add the phrase “Gas Guzzler Tax” followed by the dollar amount, in a size and format specified in Appendix V of this part. The Gas Guzzler statement mu st be located below the annual consumption information. The tax value required by this paragraph (d) is based on the combined fuel economy value for the model type calculated a ccording to §600.513 and rounded to the nearest 0.1 mpg.

(k) Alternative label provisi ons for special cases. The Administrator may approve modifications to the style guidelines if space is limited. The Administrator may also prescribe special label format and information requireme nts for vehicles that are not specifically described in this subpart, such as vehicles powered by fuel cells or hydrogen-fueled engine s, or hybrid electric vehicles that have engines opera ting on fuels other than gasoline or diesel fuel. The revised labeling specifications will conf orm to the principles established in this subpart, with any appropriate modifications or a dditions to reflect the vehicle’ s unique characteristics. See 49 U.S.C. 32908(b)(1)(F).

(l) Rounding . Round all numerical values id entified in this subpart to the nearest whole number unless specified otherwise.

(m) Updating information . EPA will periodically publish updated information that is needed to comply with the labeling requirements in this su bpart. This includes the annual mileage rates and fuel-cost information described in paragraph (b)(3) of this section and the “best and worst” values needed for calcula ting relative ratings for i ndividual vehicles as specified in §600.311.

22. A new §600.308-12 is added to s ubpart E to read as follows:

§ 600.308-12 Fuel economy label format requirem ents--plug-in hybrid electric vehicles.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 255 of 315 Fuel economy labels for plug-in hybrid electric vehicles must meet the specifications described in §600.302, with the exceptions and additional speci fications described in this section. This section describes how to label vehi cles that with gasoline engines. If the vehicle has a diesel engine, all the references to “gas” or “gasoline” in this section are understood to refer to “diesel” or “diesel fuel”, respectively.

(a) Create a table with data values in the fo llowing sequence of columns instead of the table specified in §600.302-12(f)(2):

(1) If the vehicle’s engine starts only after the battery is fully discharged, include the following heading statement: “All Electric (first x miles only)”. If the vehicle uses combined power from the battery and the engine before the battery is fully discharged, include the following heading statement: “ Blended Electric + Gas (first x miles only)”. Complete the statement using the value of x to represent the distance the vehicl e drives before the battery is fully discharged, as described in §600.311-12. Include the following data items below this heading statement:

(i) Below the heading “eGallons/100 miles”, include the value for the fuel consumption rate as described in §600.311-12.

(ii) Below the heading “Combined MPGe”, include the value for the combined fuel economy as described in §600.311-12.

(2) Include the following heading statement: “Gas only” and include the following items below this heading statement:

(i) Below the heading “Gallons/100 miles”, include the value for the fuel consumption rate as described in §600.311-12.

(ii) Below the heading “Combined MPG”, in clude the value for the combined fuel economy as described in §600.311-12.

(3) If the vehicle’s engine starts only after the battery is fully discharged, include the following heading statement: “All Electric and Gas Only Combined”. If the vehicle uses combined power from the battery and the engi ne before the battery is fully discharged, include the following heading statement: “Blende d and Gas Only Combined”. Include the following data items below this heading statement:

(i) Below the heading “CO 2 g/mile (tailpipe only)”, include the value for the CO 2 emission rate as described in §600.311-12.

(ii) Below the heading “Annual fuel cost”, incl ude the value for the a nnual fuel cost as described in §600.311-12.

(b) [Reserved]Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 256 of 315 23. A new §600.310-12 is added to s ubpart E to read as follows: § 600.310-12 Fuel economy label format requirements--electric vehicles.

Fuel economy labels for electric vehicles must meet the specifications described in §600.302, with the following exceptions and additional specifications:

(a) Create a table with data values in the fo llowing sequence of columns instead of the table specified in §600.302-12(f)(2):

(1) Below the heading “Range (miles)”, include the value for the maximum estimated driving distance as described in §600.311-12.

(2) Below the heading “kW-hrs/100 Miles”, include the value for the fuel consumption rate as described in §600.311-12.

(3) Below the heading “MPGe City”, include the value for the city fuel economy as described in §600.311-12.

(4) Below the heading “MPGe Highway”, include the value for the highway fuel economy as described in §600.311-12.

(5) Below the heading “CO 2 g/mile (tailpipe only)”, include the value for the CO 2 emission rate as described in §600.311-12.

(6) Below the heading “Annual fuel cost”, incl ude the value for the a nnual fuel cost as described in §600.311-12.

(b) [Reserved]



### § 600.311-08 Range of fuel econ omy for comparable automobiles.

(a) The Administrator will determine the range of combined fuel economy values for each class of comparable automobiles comprising the maximum and minimum combined fuel economy values for all general labels as determined in §600.210–08(c).

(b)(1) The ranges for a model year will be made available on a date specified by the Administrator that closely coin cides to the date of the gene ral model introduction for the industry.

(2) If the Administrator has not made available the fuel econo my ranges prior to the model introduction, the ranges from the pr evious model year must be used.

(3) For 2008 model year automob iles manufactured or imported prio r to the date specified in §600.301–08(b), the Administrator will provide init ial fuel economy ranges based upon dataFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 257 of 315 from 2007 models that have been adjusted in ac cordance with the derived 5-cycle calculations in §600.210–08.

(c) If the Administrator determines that automob iles intended for sale in California are likely to exhibit significant differences in fuel economy from those intended for sale in other states, he/she will compute separate ranges of fuel ec onomy values for each class of automobiles for California and for the other states.

(d) [Reserved]

(e) The manufacturer shall incl ude the appropriate range of fuel economy determined by the Administrator in paragraph (b) of this section, on each label affixed to an automobile within the class, except as provided in §600.301-08(b)(1).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 258 of 315 § 600.311-12 Determination of numeric values for fuel economy labels.

(a) Fuel economy . Determine city and highway fuel economy values as described in §600.210- 12(a) and (b). Determine combined fuel econom y values as described in §600.210-12(c). Note that the label for plug-in hybrid electric vehicles requires separa te values for combined fuel economy for vehicle operation before and after th e vehicle’s battery is fully discharged; we generally refer to these modes as “Blended Electr ic+Gas” (or “Electric Only”, as applicable) and “Gas only”.

(b) CO 2 emission rate . Determine the engine-related CO 2 emission rate as described in §600.210-12(c).

(c) Fuel economy grade . Determine a vehicle’s fuel economy grade as follows:

(1) Determine the grade that applies based on combined CO 2 emission rates from paragraph (b) of this section according to the following table:

Table 1 of §600.311-12 — Criteria to Define Fuel Economy Grade

Combined CO 2 (g/mi) Grade 0-77 A+ 77-154 A155-231 A232-308 B+ 309-385 B386-462 B463-539 C+ 540-616 C617-693 C694-770 D+

771+ D

(2) We may update the grading scale periodically based on the median CO 2 emission rate for all model types. We would do this by doubling the median value to es tablish the nominal full range of CO 2 values, then dividing this full range into eleven equal interv als (after rounding to the nearest whole number). Fo r reference, the grade distribution in paragraph (c)(1) of this section is based on a median value of 423 g/mi CO 2
. (d) Fuel consumption rate . Calculate the fuel consumption rate as follows:

(1) For vehicles with engines th at are not plug-in hybrid electri c vehicles, calculate the fuel consumption rate in gallons per 100 miles (or gasoline-equivalent gallons per 100 miles for fuels other than gasoline or diesel fuel) with the following formula, rounded to the first decimal place:

Fuel Consumption Rate = 100/MPGFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 259 of 315 Where:

MPG = The combined fuel economy value fr om paragraph (a) of this section.

(2) For plug-in hybrid electric vehicles, calcula te two separate fuel consumption rates as follows:

(i) Calculate the fuel consumption rate based on engine operation after the battery is fully discharged as described in paragr aph (d)(1) of this section.

(ii) Calculate the fuel consumption rate dur ing operation before the battery is fully discharged in gasoline-equi valent gallons per 100 mile s as described in SAE J1711 (incorporated by reference in §600.11).

(3) For electric vehicles, calcu late the fuel consumption rate in kW-hours per 100 miles with the following formula, rounded to the nearest whole number:

Fuel Consumption Rate = 100/MPG

Where:

MPG = The combined fuel economy value from pa ragraph (a) of this se ction, in miles per kW-hour.

(e) Annual fuel cost . Calculate annual fuel costs as follows:

(1) Calculate the total annual fu el cost with the following form ula, rounded to nearest whole number:

Annual Fuel Cost = [f 1 × Fuel Price 1 /MPG 1 + f 2 × Fuel Price 2 /MPG 2 ] × Average Annual Miles

Where:

f i = The fraction of the vehicle’s overall driving distance that is projected to occur for fuel i . For vehicle’s that operate on only one fuel, f 1 = 1 and f 2 = 0. For plug-in hybrid electric vehicles, determine the values of f i from SAE J 2841 (incor porated by reference in §600.11). For dual fuel vehicles and flexible-fuel vehicles, f 1 = f 2 = 0.5. In all cases, f

1 + f 2 = 1.

Fuel Price i = The estimated fuel pri ce provided by EPA for fuel i . The units are dollars per gallon for gasoline and diesel fuel, dollars per gasoline-equivalent gallon for natural gas or LPG, and dollars per kW -hr for plug-in electricity.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 260 of 315 MPG i = The combined fuel economy value from paragraph (a) of this section for fuel i

. The units are miles per gallon for gasoline and diesel fuel, miles per gasoline-equivalent gallon for natural gas or LPG, and mile s per kW-hr for plug-in electricity.

Average Annual Miles = The estimated annual m ileage figure provided by EPA, in miles.

(2) For plug-in hybrid electric vehicles, calculate a separate annual cost estimate using the equation in paragraph (e)(1) of this section by assuming the batte ry is never charged from an external power source. Similarly, calculate an annual cost estimate by assuming the battery is regularly charged from an external power source such that it is never fully discharged.

(f) Fuel savings . Calculate an estimated five-year cost increment relative to an average vehicle by multiplying the unrounded annual fuel cost fr om paragraph (e) of this section by 5 and subtracting this value from $9,995.24. This va lue represents five years of operation at 21.01 miles per gallon of gasoline at the specified fuel price and mileage rates. We may periodically update this five-year cost baselin e to better characterize the fuel economy for an average vehicle. Round the calculated five-year cost increment to the nearest $100; however if the cost increment is less than $95, round to the nearest $10 or a gr eater level of precision as needed to provide a result with one significant figure. Negative valu es represent a cost increase compared to the average vehicle.

(g) Other air pollutant score . Establish a score for exhaust emissions other than CO 2 based on the applicable emission standard s as shown in Table 2 of this section. For Independent Commercial Importers that import vehicles not subject to Tier 2 emi ssion standards, the air pollutant score for the vehicle is 1.

Table 2 of §600.311-12 —Criteria for Establishing Air Pollution Score

Score U.S. EPA Tier 2 Emission Standard California Air Resources Board LEV II Emission Standard 1 — ULEV &LEV II large trucks 2 Bin 8 SULEV II large trucks 3 Bin 7 — 4 Bin 6 LEV II, option 1 5 Bin 5 LEV II 6 Bin 4 ULEV II 7 Bin 3 — 8 Bin 2 SULEV II 9 — PZEV 10 Bin 1 ZEV

(h) Ranges of fuel economy values . We will determine the range of combined fuel economy values for each vehicle class identified in §600.315. We will generally update these range values before the start of each model year based on the lowest and highest values within each vehicle class. We will also use this same information to establish a range of fuel economy values for all vehicles. Continue to use the most recently publ ished numbers until we update them, even if you start a new model year before we publish the range values for the new model year.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 261 of 315 (i) Driving range for electric vehicles . For electric vehicles, determine the vehicle’s overall driving range as described in Section 8 of SAE J1634 (incorpora ted by reference in §600.11). Perform testing by alternately operating over tw o successive UDDS cycles, then two successive HFEDS cycles, then continuing to alternate betw een these cycles until the test is complete. Follow the same transition procedures when altern ating cycles as those specified for the time between repeat runs of the same cycle.

(j) Driving range for plug-in hybrid electric vehicles . For plug-in hybrid electric vehicles, determine the battery driving range a nd overall driving range as follows:

(1) Determine the vehicle’s driving range until th e battery is fully discharged as described in SAE J1711 (incorporated by reference in §600.11).

(2) Determine the vehicle’s operating distance befo re the fuel tank is empty when starting with a full fuel tank and a fully charged battery as de scribed in SAE J1711 (incor porated by reference in §600.11).

(k) Charge time . For electric vehicles and plug-in hybrid electric vehicles, determine the time it takes to fully charge the battery from a sta ndard 110 volt power source to the point that the battery meets the manufacturer’s e nd-of-charge criteria, consistent with the procedures specified in SAE J1634 (incorporated by refe rence in §600.11). This value ma y be more or less than the specified 12-hour minimum charging time for testing.



### (l) California-specific values . If the Administrator determin es that automobiles intended for sale in California are likely to exhibit significant differences in fuel economy from those intended for sale in other states, he or she will compute separate ranges of fuel economy values for each class of automobiles for Californi a and for the other states.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 262 of 315 24. Redesignate §600.312-86 as §600.312-08.



### § 600.312-08 Labeling, repo rting, and recordkeeping; Administrator reviews.

(a)(1) The manufacturer shall determine label values (general and specific) using the procedures specified in subparts C and D of this part and submit the label values, and the data sufficient to calculate the label values, to th e Administrator accord ing to the timetable specified in §600.313.

(2) Except under paragraph (a)(4) of this secti on, the manufacturer is not required to obtain Administrator approval of labe l values prior to the introduction of vehicles for sale.

(3) The label values that the ma nufacturer calculates and submits under paragraph (a)(1) of this section shall constitute the EPA fuel economy estim ates unless the Administrator determines that they are not calculated according to the procedures specified in subparts C and D of this part.

(4) If required by the Administrator, the manuf acturer shall obtain Admi nistrator approval of label values prior to affixing labels to vehicles.

(5)(i) If at any time during the model year, any la bel values are determined not to be calculated according to the procedures specified in subparts C and D of this part, the Administrator shall notify the manufacturer in writing.

(ii) If the Administrator has sufficient information to enable calculation of the correct label values, this notification shall specify the corr ect label values which constitute the EPA Fuel Economy Estimates.

(iii) If additional information is required, th e Administrator shall request such additional information and a recalculation of the label value by the manufacturer.

(6) If the Administrator determin es revised label values under para graph (a)(5) of this section are lower than the label values calculated by the manufacturer, the manufact urer shall affix the revised labels to all affected new vehicles which are unsold beginning no later than 15 calendar days after the date of notif ication by the Administrator.

(b)(1) The manufacturer is responsible for affi xing vehicle labels that meet the format and content requirements of this subpart.

(2) The manufacturer shall retain for examination, at the Administ rator's discretion, typical label formats representing all information required on the manufacturer's fuel economy labels. The information shall include the text of all requi red and voluntary informa tion as well as the size and color of print and paper, sp acing, and location of all printed information. Where the fuel economy label is incorporated with the Automobile Information Disclosure Act label, the above requirements pertain to those sections of the labe l concerning fuel economy labeling information.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 263 of 315 (3) If the Administrator determin es upon examination of record that the label format or content do not meet the requirements of th is subpart, the Administrator may:

(i) Require the manufacturer to make sp ecific changes in subsequent labels, and

(ii) Require such changes to be implemented on a reasonable timetable, but no sooner than 15 days from the date of notif ication to the manufacturer.

25. Redesignate §600.313-01 as §600.313-08.



### § 600.313-08 Timetable for data an d information submittal and review.

(a) A manufacturer shall submit to the Administra tor fuel economy label values and sufficient information to determine fuel economy label values within the following time constraints (except for manufacturers designated under §600.312(a)(4 ) who shall submit the information no later than thirty calendar days prior to the date the mo del type [vehicle] is initially offered for sale.

(1) For initial general label values, no later than five working days before the date that the model type is initially offered for sale;

(2) For specific label values, no later than five working days before any vehicles are offered for sale;

(3) For model types having label values update d because of running changes (as required under §600.314(b)), the submission must be made at l east five working days before the date of implementation of the running change.

(b) A manufacturer may not proceed with any la bel calculation until the data from each vehicle used in such calculation satis fies the requirements of §600.008, except as allowed under the provisions of §600.314–01(e) and ap proved by the Administrator.

(c) If the Administrator has waived any testing in paragraph (b) of this section and subsequently finds that the decision to waive testing was based on an incorrect data submission or that a fuel economy offset exists (based on subsequent testing of that manufacturer's product line), the Administrator may require confirmation of the data generated by any su ch waived vehicle.



### § 600.314-08 Updating label values, annual fu el cost, Gas Guzzler Tax, and range of fuel economy for comparable automobiles.

(a) The label values establishe d in §600.312 shall remain in e ffect for the model year unless updated in accordance with para graph (b) of this section.

(b)(1) The manufacturer sh all recalculate the model type fuel economy values for any model type containing base levels affected by running changes specified in §600.507(a).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 264 of 315 (2) For separate model types create d in §600.209–08(a)(2) or §600.209–12(a)(2), the manufacturer shall recalculate the model type values for any additi ons or deletions of subconfigurations to the model type. Minimum data requirements specified in §600.010(c) shall be met prior to recalculation.

(3) Label value recalculations shall be performed as follows:

(i) The manufacturer shall use updated total model year proj ected sales for label value recalculations.

(ii) All model year data approved by the Administ rator at the time of the recalculation for that model type shall be included in the recalculation.

(iii) Using the additional data under paragraph (b) of this section, the manufacturer shall calculate new model type city and highway valu es in accordance with §600.210 except that the values shall be rounded to the nearest 0.1 mpg.

(iv) The existing label values, calculated in accordance with §600.210, shall be rounded to the nearest 0.1 mpg.

(4)(i) If the recalculated city or highway fuel economy value in paragraph (b)(3)(iii) of this section is less than the respectiv e city or highway value in paragr aph (b)(3)(iv) of this section by 1.0 mpg or more, the manufacturer shall affix labels with the reca lculated model type values to all new vehicles of that mode l type beginning on the day of implementation of the running change.

(ii) If the recalculated city or highway fuel economy value in para graph (b)(3)(iii) of this section is higher than the respective city or highway value in paragraph (b)(3)(iv) of this section by 1.0 mpg or more, then the manufactur er has the option to use the reca lculated values for labeling the entire model type beginning on the day of implementation of the running change.

(c) For fuel economy labels updated using recalc ulated fuel economy values determined in accordance with paragraph (b) of th is section, the manufacturer shall concurrently update all other label information (e.g., the annual fuel cost, range of comparable vehicles and the applicability of the Gas Guzzler Tax as needed).

(d) The Administrator shall peri odically update the range of fuel economies of comparable automobiles based upon all label data supplied to the Administrator.

(e) The manufacturer may request permission from the Administrator to calculate and use label values based on test data from vehicles which have not completed the Administrator-ordered confirmatory testing required under the pr ovisions of §600.008–08(b). If the Administrator approves such a calculation the follo wing procedures shall be used to determine if relabeling is required after the confirmatory testing is completed.

(1) The Administrator-ordered confirmatory testi ng shall be completed as quickly as possible.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 265 of 315 (2) Using the additional data unde r paragraph (e)(1) of this se ction, the manufacturer shall calculate new model type city and highway values in accordance with §§600.207 and 600.210 except that the values shall be rounded to the nearest 0.1 mpg.

(3) The existing label values, calculated in acco rdance with §600.210, shall be rounded to the nearest 0.1 mpg.

(4) Relabeling. (i) If the recalculated city or highway fuel economy value in paragraph (b)(3)(iii) of this section is less than the respective city or highway value in para graph (b)(3)(iv) of this section by 0.5 mpg or more, the manufacturer shall affix labels with the recalculated model type values to all new vehicles of that model t ype beginning 15 days afte r the completion of the confirmatory test.

(ii) If both the recalculated city or highway fu el economy value in paragraph (b)(3)(iii) of this section is less than the respectiv e city or highway value in paragr aph (b)(3)(iv) of this section by 0.1 mpg or more and the recalculated gas guzzl er tax rate determined under the provisions of §600.513–08 is larger, the manufacturer shall affix labels with the recalculated model type values and gas guzzler tax statement and rates to all new vehicles of th at model type beginning 15 days after the completion of the confirmatory test.

(5) For fuel economy labels updated using recalc ulated fuel economy values determined in accordance with paragraph (e)(4) of this section, the manufacture r shall concurre ntly update all other label information (e.g., the annual fuel cost, range of comparable vehicles and the applicability of the Gas Guzzler Tax if requi red by Department of Treasury regulations).



### § 600.315-08 Classes of comparable automobiles.

(a) The Secretary will classify automobiles as passenger automob iles or light trucks (nonpassenger automobiles) in a ccordance with 49 CFR part 523.

(1) The Administrator will classify passenger automobiles by car line into one of the following classes based on interior volume index or seating capacity except for those passenger automobiles which the Administrator determines are most appropriately placed in a different classification or classed as special purpose vehicl es as provided in paragraph (a)(3) of this section.

(i) Two seaters. A car line shall be classed as “Two Seater” if the majority of the vehicles in that car line have no more than two designated sea ting positions as such term is defined in the regulations of the National Highway Traffi c Safety Administration, Department of Transportation (DOT), 49 CFR 571.3.

(ii) Minicompact cars. Interior vo lume index less than 85 cubic feet.

(iii) Subcompact cars. Interior volume index greate r than or equal to 85 c ubic feet but less than 100 cubic feet.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 266 of 315 (iv) Compact cars. Interior volum e index greater than or equal to 100 cubic feet but less than 110 cubic feet.

(v) Midsize cars. Interior volume index greater than or equal to 110 cubic feet but less than 120 cubic feet.

(vi) Large cars. Interior volume index gr eater than or equa l to 120 cubic feet.

(vii) Small station wagons. Statio n wagons with interior volume index less than 130 cubic feet.

(viii) Midsize station wagons. Stat ion wagons with interior volume index greater than or equal to 130 cubic feet but less than 160 cubic feet.

(ix) Large station wagons. Station wagons with in terior volume index greater than or equal to 160 cubic feet.

(2) The Administrator will classify light truc ks (nonpassenger automobiles) into the following classes: Small pickup trucks, standard pickup tr ucks, vans, minivans, a nd SUVs. Starting in the 2012 model year, SUVs will be divided between sma ll sport utility vehicles and standard sport utility vehicles. Pickup trucks and SUVs are separated by car line on the basis of gross vehicle weight rating (GVWR). For a product line with more than one GVWR, establish the characteristic GVWR value for the product line by calculating the arith metic average of all distinct GVWR values less than or equal to 8,500 pounds available for that product line. The Administrator may determine that specific light trucks should be most appropriately placed in a different class or in the special pur pose vehicle class as provided in paragraph (a)(3)(i) and (ii) of this section, based on the features and charac teristics of the specific vehicle, consumer information provided by the manufacturer, and other information available to consumers.

(i) Small pickup trucks. Pickup tr ucks with a GVWR below 6000 pounds.

(ii) Standard pickup trucks. Pickup trucks with a GVWR at or above 6000 pounds and at or below 8,500 pounds.

(iii) Vans.

(iv) Minivans.

(v) Small sport utility vehicles. Sport util ity vehicles with a GVWR below 6000 pounds.

(vi) Standard sport utility vehicles. Sport util ity vehicles with a GVWR at or above 6000 pounds and at or below 10,000 pounds.

(3)(i) Special purpose vehicles. All automobiles with GVWR less than or equal to 8,500 pounds and all medium-duty passenger vehicles wh ich possess special features and which the Administrator determines are more appropriately classified separately from typical automobiles or which do not meet the requirements of paragr aphs (a)(1) and (2) of this section will beFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 267 of 315 classified as special purpose vehicles. For ex ample, the Administrator may determine that advanced technology vehicles (such as battery electric vehicles, fu el cell vehicles, plug-in hybrid electric vehicles and vehicles equipped with hydrogen internal combus tion engines) should be appropriately classified as a t ype of “special purpose vehicle.” The Administrator may determine appropriate names for such types of special purpose ve hicles, different from the name “special purpose vehicle.”

(ii) All automobiles which possess features that could apply to two classes will be classified by the Administrator based on the Ad ministrator's judgment on which class of vehicles consumers are more likely to make comparisons.

(4) Once a certain car line is classified by the Administrator, the classification will remain in effect for the model year.

(b) Interior volume index—passenger automobiles. (1) The interior volume index shall be calculated for each car line which is not a “two seater” car line, in c ubic feet rounded to the nearest 0.1 cubic foot. For car lin es with more than one body style, the interior volume index for the car line is the arithme tic average of the inte rior volume indexes of each body style in the car line.

(2) For all body styles except station wagons and ha tchbacks with more than one seat (e.g., with a second or third seat) equipped with seatbelts as required by DOT safety regulations, interior volume index is the sum, rounded to the nearest 0.1 cubic feet, of the front seat volume, the rear seat volume(s), if applicab le, and the luggage capacity.

(3) For all station wagons and hatc hbacks with more than one seat (e.g., with a second or third seat) equipped with seatbelts as required by DOT safety regulati ons, interior volume index is the sum, rounded to the nearest 0.1 cubic feet, of the front seat volume, the rear seat volume, and the cargo volume index.

(c) All interior and cargo dimensions are meas ured in inches to the nearest 0.1 inch. All dimensions and volumes shall be determined from the base vehicles of each body style in each car line, and do not include optional equipment. The dimensions H61, W3, W5, L34, H63, W4, W6, L51, H201, L205, L210, L211, H198, W201 , and volume V1 are to be determined in accordance with the procedures outlined in Motor Vehicle Dimensions SAE J1100a (incorporated by reference in §600.011), except as follows:

(1) SAE J1100a(2.3)—Cargo dimensions. All dimensions are measured with the front seat positioned the same as for the interior dimensions and the second seat, for the station wagons and hatchbacks, in the uprigh t position. All head restraints sh all be in the stowed position and considered part of the seat.

(2) SAE J1100a(8)—Luggage capacity. Total of columns of indivi dual pieces of standard luggage set plus H boxes stowed in the luggage compartment in accordance with the procedure described in 8.2. For passenger au tomobiles with no rear seat or w ith two rear seats with no rear seatbelts, the luggage comp artment shall include the area to the rear of the front seat, with theFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 268 of 315 rear seat (if applicable) folded, to the height of a horizontal plane tangent to the top of the front seatback.

(3) SAE J1100a(7)—Cargo dimensions. (i) L210-Cargo length at second seatback heighthatchback. The minimum horizontal dimension fro m the “X” plane tangent to the rearmost surface of the second seatback to the inside limiting interference of the hatchback door on the zero “Y” plane.

(ii) L211—Cargo length at floor-second-hatchback. The minimum horizontal dimensions at floor level from the rear of the second seatback to the normal limiting interf erence of the hatchback door on the vehicle zero “Y” plane.

(iii) H198—Second seatback to load floor height. The dimension measured vertically from the horizontal tangent to the top of the second seatback to th e undepressed floor covering.

(d) The front seat volume is calc ulated in cubic feet by dividi ng 1,728 into the product of three terms listed below and rounding the quotie nt to the nearest 0.001 cubic feet:

(1) H61—Effective head room-front. (In inches, obtained according to paragraph (c) of this section),

(2)(i) (W3+W5+5)/2-Average of shoulder and hip r oom-front, if hip room is more than 5 inches less than shoulder room. (In inches, W3 and W5 are obtained according to paragraph (c) of this section), or

(ii) W3-Shoulder room-front, if hip room is not more than 5 in ches less than shoulder room. (In inches, W3 is obtained according to paragraph (c) of this section), and

(3) L34—Maximum effective leg room-accelerator. (In inches, obtained according to paragraph (c) of this section.) Round the quotient to the nearest 0.001 cubic feet.

(e) The rear seat volume is calculated in cubic fe et, for vehicles with a rear seat equipped with rear seat belts (as required by DOT), by dividing 1,728 into th e product of three terms listed below and rounding the quotient to the nearest 0.001 cubic feet:

(1) H63—Effective head room-second. (Inches obtained according to paragraph (c) of this section),

(2)(i) (W4+W6+5)/2-Average of shoulder and hi p room-second, if hip room is more than 5 inches less than shoulder room. (In inches, W4 and W6 are obtained according to paragraph (c) of this section), or

(ii) W4—Shoulder room-second, if hip room is not more than 5 inches less than shoulder room. (In inches, W4 is obtained according to paragraph (c) of this section), andFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 269 of 315 (3) L51—Minimum effective leg room-second. (In inches obtained according to paragraph (c) of this section.)

(f) The luggage capacity is V1, the usable lugga ge capacity obtained acco rding to paragraph (c) of this section. For passenger automobiles with no rear seat or with a rear seat but no rear seat belts, the area to the rear of the front seat sha ll be included in the determination of V1, usable luggage capacity, as outlined in pa ragraph (c) of this section.

(g) Cargo volume index. (1) For station wagons the cargo volu me index V10 is calculated, in cubic feet, by dividing 1,728 into the product of three terms and rounding the quotient to the nearest 0.001 cubic feet:

(i) Average cargo width, which is the arithmetic average of:

(A) W4—Shoulder room-second (in inches obtained ac cording to paragraph (c ) of this section); and

(B) W201—Cargo width-wheelhouse (in inches obta ined according to para graph (c) of this section).

(ii) H201–Cargo height. (In inches obtained according to paragraph (c) of this section.)

(iii) L205–Cargo length at belt-second. (In inches obtained according to paragraph (c) of this section.)

(2) For hatchbacks, the cargo vol ume index V11 is calculated, in cubic feet, by dividing 1,728 into the product of th ree terms and rounding the quotient to the nearest 0.001 cubic foot:

(i) Average cargo length, which is the arithmetic average of:

(A) L210–Cargo length at second se atback height-hatchback. (In inches obtained according to paragraph (c) of this section);

(B) L211–Cargo length at floor-s econd-hatchback. (In inches obtained acco rding to paragraph (c) of this section);

(ii) W4–Shoulder room-second. (In inches obtained according to pa ragraph (c) of this section);

(iii) H198—Second seatback to load floor height . (In inches obtained acc ording to paragraph (c) of this section.)

(h) The following data must be submitted to the Administrator no later than the time of a general label request. Data shall be included for each bod y style in the car line covered by that general label.

(1) For all passenger automobiles:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 270 of 315 (i) Dimensions H61, W3, L34 determined in a ccordance with paragraph (c) of this section.

(ii) Front seat volume determined in accord ance with paragraph (d) of this section.

(iii) Dimensions H63, W4, L51 (if applicable) de termined in accordance with paragraph (c) of this section.

(iv) Rear seat volume (if applicable) determined in accordance with paragraph (e) of this section.

(v) The interior volume index dete rmined in accordance with paragr aph (b) of this section for:

(A) Each body style, and

(B) The car line.

(vi) The class of the car line as determined in paragraph (a) of this section.

(2) For all passenger automobiles except station wagons and hatchback s with more than one seat (e.g., with a second or third seat ) equipped with seat belts as re quired by DOT safety regulations:

(i) The quantity and letter designation of the pieces of the standard luggage set installed in the vehicle in the determination of usable luggage capacity V1, and

(ii) The usable luggage capacity V1, determined in accordance with paragraph (f) of this section.

(3) For station wagons with more than one seat (e .g., with a second or thir d seat) equipped with seat belts as required by DOT safety regulations:

(i) The dimensions H201, L205, and W201 determin ed in accordance with paragraph (c) of this section, and

(ii) The cargo volume index V10 determined in accordance with paragraph (g)(1) of this section.

(4) For hatchbacks with more than one seat (e.g., with a second or third seat) equipped with seat belts as required by DOT safety regulations:

(i) The dimensions L210, L211, and H198 determin ed in accordance with paragraph (c) of this section.

(ii) The cargo volume index V11 determined in accordance with paragraph (g)(2) of this section.

(5) For pickup trucks:

(i) All GVWR's of less than or equal to 8,500 pounds available in the car line.

(ii) The arithmetic average GVWR for the car line.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 271 of 315 26. Redesignate §600.316-78 as §600.316-08.



### § 600.316-08 Multistage manufacture.

Where more than one person is the manufactur er of a vehicle, the final stage vehicle manufacturer (as defined in 49 CFR 549.3) is treated as the manufacturer for purposes of compliance with this subpart.



### Subpart E—Dealer Availability of Fuel Economy Information
27. The heading for subpart E is revised as set forth above.

§600.401-77, §600.402-77, §600.403-77, §600.404-77, §600.405-77, §600.406-77, §600.407- 77—[Removed]
28. Subpart E is amended by rem oving the following sections:

§600.401-77 §600.402-77 §600.403-77 §600.404-77 §600.405-77 §600.406-77 §600.407-77



### § 600.405-08 Dealer requirements.

(a) Each dealer shall prominently display at each location where new automobiles are offered for sale a copy of the annual Fuel Economy Guide containing the in formation specified in §600.407. The Fuel Economy Guide may be made available e ither in hard copy or electronically via an onsite computer available for prospective purchasers to view and print as desired. The dealer shall provide this information without charge. The dealer will be exp ected to make this information available as soon as it is received by the dealer, but in no case la ter than 15 working days after notification is given of its avai lability. The Department of Ener gy will annually notify dealers of the availability of the information with instructio ns on how to obtain it either electronically or in hard copy.

(b) The dealer shall display the Fuel Economy Gu ide, or a notice of where the customer can electronically access the Fuel Economy Guide, in the same manner and in each location used to display brochures describing the automobiles o ffered for sale by the dealer. The notice shall include a link to the official Web site where this information is contained ( http://www.fueleconomy.gov )Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 272 of 315 (c) The dealer shall display the booklet applicable to each model ye ar automobile offered for sale at the location.



### § 600.407-08 Booklets displayed by dealers.

(a) Booklets displayed by dealer s in order to fulfill the oblig ations of §600.405 may be either

(1) The printed copy of the annual Fuel Economy Guide published by the Department of Energy,
or;

(2) Optionally, dealers may display the Fuel Econ omy Guide on a computer that is linked to the electronic version of the Fuel Economy Guide (available at http://www.fueleconomy.gov ), or;

(3) A booklet approved by the Administrator of EPA containing the same information, format, and order as the Fuel Economy Guide published by the Department of Energy. Such a booklet may highlight the dealer's product line by cont rasting color of ink or boldface type and may include other supplemental information regarding the dealer's product line subject to approval by the Administrator.

(b) A manufacturer's name and l ogo or a dealer's name and address or both may appear on the back cover of the hard copies of the Fuel Economy Guide.



### Subpart F—Procedures for Determining Manufacturer's Average Fuel Economy and Manufacturer’s Average Carbon-related Exhaust Emissions
29. The heading for subpart F is revised as set forth above.

§600.501-12, §600.501-85, §600.501-86, §600.501-93, §600.503-78, §600.504-78, §600.505-78, §600.507-86, §600.510-86, §600.510-93, §600.512-01, §600.512-86, §600.513-81, §600.513- 91—[Removed]
30. Subpart F is amended by rem oving the following sections:

§600.501-12 §600.501-85 §600.501-86 §600.501-93 §600.503-78 §600.504-78 §600.505-78 §600.507-86 §600.510-86 §600.510-93 §600.512-01 §600.512-86 §600.513-81 §600.513-91Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 273 of 315 31. Redesignate §600.502-81 as §600.502.



### § 600.502 Definitions.

The following definitions apply to this s ubpart in addition to those in §600.002:

(1) “Declared value” of imported components shall be:

(i) The value at which component s are declared by the importer to the U.S. Customs Service at the date of entry into the customs territory of the United States, or

(ii) With respect to imports into Canada, the decl ared value of such components as if they were declared as imports into the United States at the date of entry into Canada, or

(iii) With respect to imports into Mexico (when §600.511–80(b)(3) applies), the declared value of such components as if they were declared as imports into the Un ited States at the date of entry into Mexico.

(2) “Cost of production” of a car line shall mean the aggregate of the products of:

(i) The average U.S. dealer whol esale price for such car line as computed from each official dealer price list effective during the course of a model year, and

(ii) The number of automobiles within the car line produced duri ng the part of the model year that the price list was in effect.

(3) “Equivalent petroleum-based fuel economy value” means a number which represents the average number of miles traveled by an electric vehicle per gallon of gasoline.

(4) “Footprint” means the area between the wheels of an automobile as defined by the Secretary of Transportation at 49 CFR 523.2.



### § 600.507-08 Running change data requirements.

(a) Except as specified in paragraph (d) of this section, the manufacturer shall submit additional running change fuel economy data as specified in paragraph (b) of this section for any running change approved or implemented under § 86.1842 of this chapter, which:

(1) Creates a new base level or,

(2) Affects an existing base level by:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 274 of 315 (i) Adding an axle ratio which is at least 10 pe rcent larger (or, optionally, 10 percent smaller) than the largest axle ratio tested.

(ii) Increasing (or, optionally, decreasing) the road-load horsepow er for a subconfiguration by 10 percent or more for the indivi dual running change or, when c onsidered cumulatively, since original certification (for each cumulative 10 percent increase using the originally certified roadload horsepower as a base).

(iii) Adding a new subconfiguration by increasing (or, optionally, de creasing) the equivalent test weight for any previously tested su bconfiguration in the base level.

(b)(1) The additional running change fuel economy data requirement in paragraph (a) of this section will be determined based on the sales of the vehicle configurations in the created or affected base level(s) as updated at the time of running change approval.

(2) Within each newly created base level as spec ified in paragraph (a)(1) of this section, the manufacturer shall submit da ta from the highest projected total model year sales subconfiguration within the highest projected total model year sales configuration in the base level.

(3) Within each base level affected by a running change as specified in paragraph (a)(2) of this section, fuel economy data shall be submitted for the vehicle configuration created or affected by the running change which has the hi ghest total model year sales. The test vehicle shall be of the subconfiguration created by the ru nning change which has the highe st projected total model year sales within the applicable vehicle configuration.

(c) The manufacturer shall submit the fuel econo my data required by this section to the Administrator in acco rdance with §600.314(b).

(d) For those model types created unde r §600.208–08(a)(2) or §600.208-12(a)(2), the manufacturer shall submit da ta for each subconfiguration added by a running change.



### §600.507-12 Running change data requirements. (a) Except as specified in paragraph (d) of this section, the manufacturer shall submit additional running change fuel ec onomy and carbon-related exhaust emissions data as specified in paragraph (b) of this section for any r unning change approved or implemented under § 86.1842 of this chapter, which: (1) Creates a new base level or, (2) Affects an existing base level by: (i) Adding an axle ratio which is at least 10 percent larger (or, optionally, 10 percent smaller) than the largest axle ratio tested. (ii) Increasing (or, optio nally, decreasing) the ro ad-load horsepower for a subconfiguration by 10 percent or more for the individual running change or, when considered cumulatively, since original certification (for each cumulative 10 percent increase using the originally certified road-l oad horsepower as a base).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 275 of 315 (iii) Adding a new subconfigur ation by increasing (or, optionally, decreasing) the equivalent test weight for any previously tested subconfiguration in the base level. (iv) Revising the calibration of an electric vehicle, fuel cell vehicle, hybrid electric vehicle, plug-in hybrid electric vehicle or other advanced technol ogy vehicle in such a way that the city or highway fuel economy of the vehicle (or the energy c onsumption of the vehicle, as may be applicable) is expected to become less fuel efficient (or optionally, more fuel efficient) by 4.0 percent or more as compared to the original fuel economy label values for fuel economy and/or energy consumption, as applicable. (b)(1) The additional running change fuel economy and carbon-related exhaust emissions data requirement in paragraph (a) of this section will be determined based on the sales of the vehicle configurations in the cr eated or affected base level(s) as updated at the time of running change approval. (2) Within each newly created base level as sp ecified in paragraph (a)( 1) of this section, the manufacturer shall submit data from the highest projected total model year sales subconfiguration within the highest projected total model year sales configuration in the base level. (3) Within each base level affected by a r unning change as specified in paragraph (a)(2) of this section, fuel economy and carbon-related exhaust emissions data shall be submitted for the vehicle configuration create d or affected by the running cha nge which has the highest total model year projected sales. The test vehicle shall be of the subconfiguration created by the running change which has the highest projected to tal model year sales w ithin the applicable vehicle configuration. (c) The manufacturer shall submit the fuel econo my data required by this section to the Administrator in acco rdance with §600.314(b). (d) For those model types created unde r §600.208–12(a)(2), the manufacturer shall submit fuel economy and carbon-related exhaust em issions data for each subconfiguration added by a running change.

32. Redesignate §600.509-86 as §600.509-08.



### § 600.509-08 Voluntary subm ission of additional data.

(a) The manufacturer may, at his option, submit data in addition to the data required by the Administrator.

(b) Additional fuel economy data may be submitted by the manufacturer for any vehicle configuration which is to be tested as require d in §600.507 or for which fuel economy data were previously submitted under paragraph (c) of this section.

(c) Within a base level, additional fuel econom y data may be submitted by manufacturing for any vehicle configuration wh ich is not required to be tested by §600.507.



### §600.509-12 Voluntary submi ssion of additional data.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 276 of 315 (a) The manufacturer may optionally submit data in addition to the data required by the Administrator. (b) Additional fuel economy and carbon-related exhaust emissions data may be submitted by the manufacturer for any vehi cle configuration which is to be tested as required in §600.507 or for which fuel economy and carbon-related exhaust emissions data were previously submitted under paragraph (c) of this section. (c) Within a base level, additional fuel economy and carbon-related exhaust emissions data may be submitted by the manufacturer for any vehicle configuration which is not required to be tested by §600.507.


### § 600.510-08 Calculation of average fuel economy.

(a) Average fuel economy will be calculated to the nearest 0.1 mpg for the classes of automobiles identified in this section, and the re sults of such calculations will be reported to the Secretary of Transportation for use in determin ing compliance with the applicable fuel economy standards.

(1) An average fuel economy calculation will be made for the category of passenger automobiles as determined by the Secretary of Transportati on. For example, categories may include, but are not limited to domestically manufactured a nd/or non-domestically manufactured passenger automobiles as determined by th e Secretary of Transportation.

(2) [Reserved]

(3) An average fuel economy calculation will be made for the category of trucks as determined by the Secretary of Transportation. For example, categories may include, but are not limited to domestically manufactured truc ks, non-domestically manufacture d trucks, light-duty trucks, medium-duty passenger vehicles, and/or heavy-duty trucks as determined by the Secretary of Transportation.

(4) [Reserved]

(b) For the purpose of calcula ting average fuel economy under pa ragraph (c) of this section:

(1) All fuel economy data submitted in accordan ce with §600.006(e) or §600.512-08(c) shall be used.

(2) The combined city/highway fuel economy will be calculated for each model type in accordance with §600.208 of th is section except that:

(i) Separate fuel economy values will be calculated for model type s and base levels associated with car lines for each categor y of passenger automobiles and trucks as determined by the Secretary of Transportation pursuant to paragr aphs (a)(1) and (a)(3 ) of this section.

(A)–(B) [Reserved]Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 277 of 315 (ii) Total model year production data, as required by this subpart, will be used instead of sales projections;

(iii) The fuel economy value of diesel-powered model types will be multiplied by the factor 1.0 to correct gallons of diesel fuel to equivalent gallons of gasoline;

(iv) The fuel economy value will be rounded to the nearest 0.1 mpg; and

(v) At the manufacturer's option, those vehicle configurations that are self-compensating to altitude changes may be separated by sales into high-altitude sales categories and low-altitude sales categories. These separate sales categories may then be treated (only for the purpose of this section) as separate configur ations in accordance with the pr ocedure of §600.208–08(a)(4)(ii) or §600.208–12(a)(4)(ii).

(3) The fuel economy value for each vehicle c onfiguration is the combined fuel economy calculated according to §600.206–08(a)(3) except that:

(i) Separate fuel economy values wi ll be calculated for vehicle conf igurations associated with car lines for each category of passenger automobiles and trucks as determined by the Secretary of Transportation pursuant to paragraphs (a)(1) and (a)(3) of this section.

(A)–(B) [Reserved]

(ii) Total model year production data, as required by this subpart will be used instead of sales projections; and

(iii) The fuel economy value of diesel-powered model types will be multiplied by the factor 1.0 to convert gallons of diesel fuel to equivalent gall ons of gasoline.

(c) Except as permitted in paragraph (d) of this section, the average fuel economy will be calculated individually for each category identified in paragraph (a) of this section as follows:

(1) Divide the total prod uction volume of that cat egory of automobiles; by

(2) A sum of terms, each of which corresponds to a model type with in that category of automobiles and is a fraction determined by dividing:

(i) The number of automobiles of that model t ype produced by the manufacturer in the model year; by

(ii) For gasoline-fueled and diesel-fueled mode l types, the fuel economy calculated for that model type in accordance with paragraph (b)(2) of this section; or

(iii) For alcohol-fueled model type s, the fuel economy value calculated for that model type in accordance with paragraph (b)(2) of this section divided by 0.15 and rounded to the nearest 0.1
mpg; orFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 278 of 315 (iv) For natural gas-fueled model types, the fuel economy value calculated for that model type in accordance with paragraph (b)(2) of this section divided by 0.15 and rounded to the nearest 0.1
mpg; or

(v) For alcohol dual fuel model types, for model years 1993 through 2019, the harmonic average of the following two terms; the resu lt rounded to the nearest 0.1 mpg:

(A) The combined model type fuel economy valu e for operation on gasoline or diesel fuel as determined in §600.208-08(b)(5)(i ) or §600.208-12(b)(5)(i); and

(B) The combined model type fuel economy value for operation on alcohol fuel as determined in §600.208-08(b)(5)(ii) or §600.208-12(b )(5)(ii) divided by 0.15 pr ovided the requirements of §600.510(g) are met; or

(vi) For natural gas dual fuel model types, for model years 1993 through 2019, the harmonic average of the following two terms; the result rounded to th e nearest 0.1 mpg:

(A) The combined model type fuel economy va lue for operation on gasoline or diesel as determined in §600.208-08(b)(5)(i ) or §600.208-12(b)(5)(i); and

(B) The combined model type fuel economy valu e for operation on natural gas as determined in §600.208-08(b)(5)(ii) or §600.208-12(b )(5)(ii) divided by 0.15 pr ovided the requirements of paragraph (g) of this section are met.

(d) The Administrator may approve alternative calculation methods if th ey are part of an approved credit plan under the provisions of 15 U.S.C. 2003.

(e) For passenger categories identified in paragra phs (a)(1) and (2) of this section, the average fuel economy calculated in accordance with paragra ph (c) of this section shall be adjusted using the following equation:

AFE adj = AFE[((0.55 × a × c) + (0.45 × c) + (0.5556 × a) + 0.4487) / ((0.55 × a) + 0.45)] + IW

Where:

AFE adj = Adjusted average combined fuel economy, rounded to the nearest 0.1 mpg.

AFE = Average combined fuel economy as calculated in paragraph (c) of th is section, rounded to the nearest 0.0001
mpg.

a = Sales-weight average (rounded to the nearest 0.0001 mpg) of all model type highway fuel economy values (rounded to the nearest 0.1 mpg) divided by the sales-weighted average (rounded to the nearest 0.0001 mpg) of all model type city fuel economy values (rounded to the near est 0.1 mpg). The quotient shall be rounded to 4 decimal places. These average fuel economies shall be determined us ing the methodology of paragraph (c) of this section.

c = 0.0022 for the 1986 model year.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 279 of 315 c = A constant value, fixed by model year. For 1987, the Administrator will specify the c value after the necessary laboratory humidity and test fuel data become available. For 1988 and later model years, the Administrator will specify the c value after the nece ssary laboratory humidity and test fuel data become available.

IW = (9.2917 × 10 − 3 × SF 3IWC × FE 3IWC )

− (3.5123 × 10 − 3 × SF 4ETW × FE 4IWC ).

Note: Any calculated value of IW less than zero shall be set equal to zero.

SF 3IWC = The 3000 lb. inertia weight class sales divided by total sales. The quotient shall be rounded to 4 decimal places.

SF 4ETW = The 4000 lb. equivalent test weight category sales divided by total sales. The quotient shall be rounded to 4 decimal places.

FE 4IWC = The sales-weighted average combined fuel economy of all 3000 lb. inertia weight class base levels in the compliance category. Round the re sult to the nearest 0.0001 mpg.

FE 4IWC = The sales-weighted average combined fuel economy of all 4000 lb. inertia weight class base levels in the compliance category. Round the re sult to the nearest 0.0001 mpg.

(f) The Administrator shall calculate and apply additional average fuel economy adjustments if, after notice and opportunity for comm ent, the Administrator determines that, as a result of test procedure changes not previously considered, such correction is necessary to yield fuel economy test results that are comparable to those obtained under the 1975 te st procedures. In making such determinations, the Administrator must find that:

(1) A directional change in measured fuel econom y of an average vehicle can be predicted from a revision to the test procedures;

(2) The magnitude of the change in measured fu el economy for any vehicle or fleet of vehicles caused by a revision to the test pr ocedures is quantifiable from theoretical calculations or best available test data;

(3) The impact of a change on average fuel economy is not due to eliminating the ability of manufacturers to take advantage of flexibility within the existing test procedures to gain measured improvements in fuel economy which ar e not the result of actual improvements in the fuel economy of production vehicles;

(4) The impact of a change on average fuel econo my is not solely due to a greater ability of manufacturers to reflect in av erage fuel economy those design changes expected to have comparable effects on in-use fuel economy;

(5) The test procedure change is required by EPA or is a change initiated by EPA in its laboratory and is not a change implemented sole ly by a manufacturer in its own laboratory.

(g)(1) Alcohol dual fuel automobiles and natural ga s dual fuel automobiles must provide equal or greater energy efficiency while operating on al cohol or natural gas as while operating onFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 280 of 315 gasoline or diesel fuel to obtain the CAFE credit determined in pa ragraphs (c)(2)(v) and (vi) of this section. The followi ng equation must hold true:

E alt /E pet > or = 1

Where:

E alt = [FE alt /(NHV alt × D alt )] × 10 6 = energy efficiency while operating on alternative fuel rounded to the nearest 0.01 miles/million BTU.

E pet = [FE pet /(NHV pet × D pet )] × 10 6 = energy efficiency while operating on ga soline or diesel (petroleum) fuel rounded to the nearest 0.01 miles/million BTU.

FE alt is the fuel economy [miles/gallon for liquid fuels or m iles/100 standard cubic feet for gaseous fuels] while operated on the alternative fuel as determined in §600.113–08(a) and (b);

FE pet is the fuel economy [miles/gallon] while operated on petrol eum fuel (gasoline or di esel) as determined in §600.113(a) and (b);

NHV alt is the net (lower) heating value [BTU/lb] of the alternative fuel;

NHV pet is the net (lower) heating value [BTU/lb] of the petroleum fuel;

D alt is the density [lb/gallon for liquid fuels or lb/100 standard cubic feet for gaseous fuels] of the alternative fuel;

D pet is the density [lb/gallon] of the petroleum fuel.

(i) The equation must hold true for both the FT P city and HFET highway fuel economy values for each test of each test vehicle.

(ii)(A) The net heating value for alcohol fuels shall be determined per ASTM D 240–09 (incorporated by refe rence in §600.011).

(B) The density for alcohol fuels shall be determined per ASTM D 1298–99 (incorporated by reference in §600.011).

(iii) The net heating value and density of gasolin e are to be determined by the manufacturer in accordance with §600.113(f).

(2) [Reserved]

(3) Alcohol dual fuel passenger automobiles and natura l gas dual fuel passenger automobiles manufactured during model years 1993 through 2019 must meet the mi nimum driving range requirements established by the Secretary of Tr ansportation (49 CFR part 538) to obtain the CAFE credit determined in paragraphs (c)(2)(v) and (vi) of this section.

(h) For model years 1993 and later, and for each category of automobile identified in paragraph (a) of this section, the maximum increase in av erage fuel economy determined in paragraph (c)Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 281 of 315 of this section attributable to alcohol dual fuel automobiles and natural gas dual fuel automobiles shall be as follows:

Model year Maximum Increase (mpg)

1993–2014 1.2

2015 1.0

2016 0.8

2017 0.6

2018 0.4

2019 0.2

2020 and later 0

(1) The Administrator shall calcul ate the increase in average fu el economy to determine if the maximum increase provided in paragraph (h) of this section has been reached. The Administrator shall calculate the average fuel economy for each category of automobiles specified in paragraph (a) of this section by subtracti ng the average fuel economy values calculated in accordance with this section by assuming all alc ohol dual fuel and natural gas dua l fuel automobiles are operated exclusively on gasoline (or diesel ) fuel from the average fuel economy values determined in paragraphs (b)(2)(vi), (b)(2)(vii), and (c) of this section. The difference is limited to the maximum increase specified in pa ragraph (h) of this section.

(2) [Reserved]



### §600.510-12 Calculation of average fuel ec onomy and average carbon-related exhaust emissions. (a)(1) Average fuel economy will be calculated to the nearest 0.1 mpg for the categories of automobiles identified in this section, and th e results of such calculations will be reported to the Secretary of Transportation for use in dete rmining compliance with the applicable fuel economy standards. (i) An average fuel economy calculation will be made for the category of passenger automobiles as determined by the Secretary of Transportation. For example, categories may include, but are not limited to domestically ma nufactured and/or non-domestically manufactured passenger automobiles as determined by the Secretary of Transportation. (ii) [Reserved] (iii) An average fuel economy calculation wi ll be made for the category of trucks as determined by the Secretary of Transportation. Fo r example, categories may include, but are not limited to domestically manufactured trucks, non-domestically manufactur ed trucks, light-duty trucks, medium-duty passenger vehicles, and/ or heavy-duty trucks as determined by the Secretary of Transportation. (iv) [Reserved] (2) Average carbon-related exhaust emissions w ill be calculated to the nearest one gram per mile for the categories of automobiles identified in this section, and the results of suchFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 282 of 315 calculations will be reported to the Administrato r for use in determining compliance with the applicable CO 2 emission standards. (i) An average carbon-related exhaust emissions calculation will be made for passenger automobiles. (ii) An average carbon-related exhaust emi ssions calculation will be made for light trucks. (b) For the purpose of calcul ating average fuel economy under paragraph (c) of this section and for the purpose of calculating average carbon-related e xhaust emissions under paragraph (j) of this section: (1) All fuel economy and carbon-related exhaust emissions data submitted in accordance with §600.006(e) or §600.512-12(c) shall be used. (2) The combined city/highway fuel econom y and carbon-related exhaust emission values will be calculated for each model type in accordance with §600.208 except that: (i) Separate fuel economy valu es will be calculated for m odel types and base levels associated with car lines for each category of passenger automobiles and light trucks as determined by the Secretary of Transportation purs uant to paragraph (a)( 1) of this section. (ii) Total model year production data, as requi red by this subpart, will be used instead of sales projections; (iii) [Reserved] (iv) The fuel economy value will be rounded to the nearest 0.1 mpg; (v) The carbon-related exhaust emission value will be rounded to the nearest gram per mile; and (vi) At the manufacturer's op tion, those vehicle configurations that are self-compensating to altitude changes may be separated by sales into high-altitude sales categories and low-altitude sales categories. These separate sales categories may then be treated (only for the purpose of this section) as separate configur ations in accordance with the pr ocedure of §600.208–12(a)(4)(ii). (3) The fuel economy and carbon-related e xhaust emission values for each vehicle configuration are the combined fuel economy and carbon-rela ted exhaust emissions calculated according to §600.206–08(a)(3) except that: (i) Separate fuel economy values will be calculated for vehicl e configurations associated with car lines for each category of passenger automobiles and light trucks as determined by the Secretary of Transportation pursuant to paragraph (a)(1) of this section. (ii) Total model year production data, as requi red by this subpart will be used instead of sales projections; and (iii) The fuel economy value of diesel-pow ered model types will be multiplied by the factor 1.0 to convert gallons of diesel fuel to equivalent gallons of gasoline. (c) Except as permitted in paragraph (d) of this section, the average fuel economy will be calculated individually for each cate gory identified in paragraph (a)(1) of this section as follows: (1) Divide the total prod uction volume of that cat egory of automobiles; by (2) A sum of terms, each of which corresponds to a model type with in that category of automobiles and is a fraction determined by divi ding the number of automobiles of that model type produced by the manufacturer in the model year; by (i) For gasoline-fueled and diesel-fueled m odel types, the fuel economy calculated for that model type in accordance with para graph (b)(2) of this section; orFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 283 of 315 (ii) For alcohol-fueled model types, the fuel economy value calculated for that model type in accordance with paragr aph (b)(2) of this section divided by 0.15 and rounded to the nearest 0.1 mpg; or (iii) For natural gas-fueled model types, th e fuel economy value calculated for that model type in accordance with paragr aph (b)(2) of this section divided by 0.15 and rounded to the nearest 0.1 mpg; or (iv) For alcohol dual fuel model types, for model years 1993 through 2019, the harmonic average of the following two terms; the result rounded to th e nearest 0.1 mpg: (A) The combined model type fuel economy va lue for operation on gasoline or diesel fuel as determined in §600.208-12(b)(5)(i); and (B) The combined model type fuel economy value for operation on alcohol fuel as determined in §600.208-12(b)(5)(ii) divided by 0. 15 provided the requirements of §600.510(g) are met; or (v) For natural gas dual fuel model type s, for model years 1993 through 2019, the harmonic average of the following two terms; th e result rounded to the nearest 0.1 mpg: (A) The combined model type fuel economy va lue for operation on gasoline or diesel as determined in §600.208-12(b)(5)(i); and (B) The combined model type fuel economy value for operation on natural gas as determined in §600.208-12(b)(5)(ii) divided by 0.15 provided the requirements of paragraph (g) of this section are met. (d) The Administrator may approve alternative calculation methods if th ey are part of an approved credit plan under the provisions of 15 U.S.C. 2003. (e) For passenger automobile categories identifi ed in paragraph (a)(1) of this section, the average fuel economy calculated in accordance with paragraph (c) of this section shall be adjusted using the following equation: AFE adj = AFE[((0.55 × a × c) + (0.45 × c) + (0.55 56 × a) + 0.4487) / ((0.55 × a) + 0.45)] + IW Where: AFE adj = Adjusted average combined fuel ec onomy, rounded to the nearest 0.1 mpg; AFE = Average combined fuel economy as calcu lated in paragraph (c) of this section, rounded to the nearest 0.0001 mpg; a = Sales-weight average (rounded to the near est 0.0001 mpg) of all model type highway fuel economy values (rounded to the nearest 0. 1 mpg) divided by the sa les-weighted average (rounded to the nearest 0.0001 mpg) of all model t ype city fuel economy values (rounded to the nearest 0.1 mpg). The quotient shall be rounde d to 4 decimal places. These average fuel economies shall be determined using the methodology of paragraph (c) of this section. c = 0.0014; IW = (9.2917 × 10 − 3 × SF 3IWC × FE 3IWC )

− (3.5123 × 10 − 3 × SF 4ETW × FE 4IWC ). Note: Any calculated value of IW less than zero shall be set equal to zero. SF 3IWC = The 3000 lb. inertia weight class sales divided by total sales. The quotient shall be rounded to 4 decimal places. SF 4ETW = The 4000 lb. equivalent test weight ca tegory sales divided by total sales. The quotient shall be rounded to 4 decimal places. FE 4IWC = The sales-weighted average combined fuel economy of all 3000 lb. inertia weight class base levels in the compliance cate gory. Round the result to the nearest 0.0001 mpg.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 284 of 315 FE 4IWC = The sales-weighted average combined fuel economy of all 4000 lb. inertia weight class base levels in the compliance cate gory. Round the result to the nearest 0.0001 mpg. (f) The Administrator shall calculate and apply additional average fuel economy adjustments if, after notice and oppo rtunity for comment, the Admini strator determines that, as a result of test procedure changes not previously considered, such correction is necessary to yield fuel economy test results that are comparable to those obtaine d under the 1975 test procedures. In making such determinations, th e Administrator must find that: (1) A directional change in measured fu el economy of an average vehicle can be predicted from a revision to the test procedures; (2) The magnitude of the change in measured fuel economy for any vehicle or fleet of vehicles caused by a revision to th e test procedures is quantifiabl e from theoretical calculations or best available test data; (3) The impact of a change on average fuel economy is not due to eliminating the ability of manufacturers to take advant age of flexibility within the ex isting test procedures to gain measured improvements in fuel economy which ar e not the result of actual improvements in the fuel economy of production vehicles; (4) The impact of a change on average fuel ec onomy is not solely due to a greater ability of manufacturers to reflect in average fuel economy those design changes expected to have comparable effects on in-use fuel economy; (5) The test procedure change is required by EPA or is a change initiated by EPA in its laboratory and is not a change implemented sole ly by a manufacturer in its own laboratory. (g)(1) Alcohol dual fuel automobiles and natu ral gas dual fuel automobiles must provide equal or greater energy efficiency while operating on alcohol or na tural gas as while operating on gasoline or diesel fuel to obtain the CAFE credit determined in pa ragraphs (c)(2)(iv) and (v) of this section or to obtain the carbon-related exhaust emissions cred it determined in paragraphs (j)(2)(ii) and (iii). The fo llowing equation must hold true: E alt /E pet > or = 1 Where: E alt = [FE alt /(NHV alt × D alt )] × 10 6 = energy efficiency while operating on alternative fuel rounded to the nearest 0.01 miles/million BTU. E pet = [FE pet /(NHV pet × D pet )] × 10 6 = energy efficiency while operating on gasoline or diesel (petroleum) fuel rounded to the nearest 0.01 miles/million BTU. FE alt is the fuel economy [miles/gallon for liqui d fuels or miles/100 standard cubic feet for gaseous fuels] while operated on the altern ative fuel as determined in §600.113–08(a) and (b); FE pet is the fuel economy [miles/gallon] while operated on petroleum fuel (gasoline or diesel) as determined in §600.113(a) and (b); NHV alt is the net (lower) heating value [BTU/lb] of the alternative fuel; NHV pet is the net (lower) heating value [BTU/lb] of the petroleum fuel; D alt is the density [lb/gallon for liquid fuels or lb/100 standard c ubic feet for gaseous fuels] of the alternative fuel; D pet is the density [lb/gallon] of the petroleum fuel. (i) The equation must hold true for both th e FTP city and HFET highway fuel economy values for each test of each test vehicle. (ii)(A) The net heating value for alcohol fuels shall be premeasured using a test method which has been approved in a dvance by the Administrator.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 285 of 315 (B) The density for alcohol fuels sha ll be premeasured using ASTM D 1298–99 (incorporated by refe rence at §600.011). (iii) The net heating value and density of gasoline are to be determined by the manufacturer in accordance with §600.113(f). (2) [Reserved] (3) Alcohol dual fuel passe nger automobiles a nd natural gas dual fuel passenger automobiles manufactured during model year s 1993 through 2019 must meet the minimum driving range requirements established by the Secr etary of Transportation (49 CFR part 538) to obtain the CAFE credit determined in paragrap hs (c)(2)(iv) and (v) of this section. (h) For model years 1993 and later, and for each category of automobile identified in paragraph (a)(1) of this section, the maximum increase in averag e fuel economy determined in paragraph (c) of this section attributable to alcohol dual fuel automobiles and natural gas dual fuel automobiles shall be as follows:

Model Year Maximum Increase

(mpg) 1993-2014 1.2 2015 1.0 2016 0.8 2017 0.6 2018 0.4 2019 0.2 2020 and later 0.0

(1) The Administrator shall calculate the incr ease in average fuel economy to determine if the maximum increase provided in paragraph (h) of this section has been reached. The Administrator shall calculate the average fuel economy for each category of automobiles specified in paragraph (a)(1) of this section by subt racting the average fuel economy values calculated in accordance with this section by assuming all alcohol dual fuel and natural gas dual fuel automobiles are operated exclusively on gaso line (or diesel) fuel fr om the average fuel economy values determined in paragraph (c) of this section. The difference is limited to the maximum increase specified in pa ragraph (h) of this section. (2) [Reserved] (i) For model years 2012 through 2015, and for each category of auto mobile identified in paragraph (a)(1) of this secti on, the maximum decrease in average carbon-related exhaust emissions determined in paragraph (j) of this sect ion attributable to alcohol dual fuel automobiles and natural gas dual fuel automobiles shall be calculated using the following formula, and rounded to the nearest tenth of a gram per mile:

Maximum Decrease = 

### FltAvg
MPG FltAvg MAX 

### − ⎥ ⎦ ⎤ ⎢ ⎣ ⎡

− 8887 8887

Where:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 286 of 315 FltAvg = The fleet average CREE value for passenger automobiles or light trucks determined for the applicable model year accord ing to paragraph (j) of this section, except by assuming all alcohol dual fuel and natural gas dua l fuel automobiles are operated exclusively on gasoline (or diesel) fuel. MPG MAX = The maximum increase in miles per gallon determined for the appropriate model year in paragraph (h) of this section. (1) The Administrator shall calculate the decrease in average carbon-related exhaust emissions to determine if the maximum decrease pr ovided in this paragraph (i) has been reached. The Administrator shall calculate the average carbon-related exhaus t emissions for each category of automobiles specified in paragraph (a) of this section by subtrac ting the average carbonrelated exhaust emission values determined in paragraph (j) of this section from the average carbon-related exhaust emission values calculate d in accordance with this section by assuming all alcohol dual fuel and natural gas dual fuel automobiles are operated exclusively on gasoline (or diesel) fuel. The difference is limited to th e maximum decrease specified in paragraph (i) of this section. (2) [Reserved] (j) The average carbon-related exhaust emissions will be calculated individually for each category identified in paragraph (a)(1) of this section as follows: (1) Divide the total produc tion volume of that category of automobiles into: (2) A sum of terms, each of which corresponds to a model type with in that category of automobiles and is a product determined by multiplying the number of automobiles of that model type produced by the manufacturer in the model year by: (i) For gasoline-fueled and diesel-fueled model types, the carbon-related exhaust emissions value calculated for th at model type in accordance with paragraph (b)(2) of this section; or (ii)(A) For alcohol-fueled model types, fo r model years 2012 through 2015, the carbonrelated exhaust emissions value calculated for that model type in accordance with paragraph (b)(2) of this section multiplied by 0.15 and rounded to the near est gram per mile, except that manufacturers complying with th e fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chapter must perform this calculation such that N 2 O and CH 4 values are not multiplied by 0.15; or (B) For alcohol-fueled model types, for model years 2016 and later, the carbon-related exhaust emissions value calculated for that mode l type in accordance w ith paragraph (b)(2) of this section; or (iii)(A) For natural gas-fueled model t ypes, for model years 2012 through 2015, the carbon-related exhaust emissions value calculate d for that model type in accordance with paragraph (b)(2) of this section multiplied by 0.15 and rounded to the nearest gram per mile, except that manufacturers complying w ith the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of this chapter must pe rform this calculation such that N 2 O and CH 4 values are not multiplied by 0.15; or (B) For natural gas-fueled model types, for model years 2016 and later, the carbonrelated exhaust emissions value calculated for that model type in accordance with paragraph (b)(2) of this section; or (iv) For alcohol dual fuel model types, for model years 2012 through 2015, the arithmetic average of the following two terms, the result rounded to the nearest gram per mile:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 287 of 315 (A) The combined model type carbon-relate d exhaust emissions value for operation on gasoline or diesel fuel as dete rmined in §600.208-12(b)(5)(i); and (B) The combined model type carbon-relate d exhaust emissions value for operation on alcohol fuel as determined in §600.208-12(b)(5)( ii) multiplied by 0.15 provided the requirements of paragraph (g) of this section are met, ex cept that manufacturers complying with the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of th is chapter must perform this calculation such that N 2 O and CH 4 values are not multiplied by 0.15; or (v) For natural gas dual fuel model type s, for model years 2012 through 2015, the arithmetic average of the following two terms; the result rounded to the nearest gram per mile: (A) The combined model type carbon-relate d exhaust emissions value for operation on gasoline or diesel as determ ined in §600.208-12(b)(5)(i); and (B) The combined model type carbon-relate d exhaust emissions value for operation on natural gas as determined in §600.208-12(b)(5)( ii) multiplied by 0.15 provided the requirements of paragraph (g) of this section are met, ex cept that manufacturers complying with the fleet averaging option for N 2 O and CH 4 as allowed under §86.1818 of th is chapter must perform this calculation such that N 2 O and CH 4 values are not multiplied by 0.15. (vi) For alcohol dual fuel model types, fo r model years 2016 and later, the combined model type carbon-related exhaus t emissions value determined according to the following formula and rounded to the nearest gram per mile: CREE = (F × CREE alt ) + ( (1-F) × CREE gas ) Where: F = 0.00 unless otherwise approved by the Admi nistrator according to the provisions of paragraph (k) of this section; CREE alt = The combined model type carbon-related exhaust emissions value for operation on alcohol fuel as dete rmined in §600.208-12(b)(5)(ii); and CREE gas = The combined model type carbon-re lated exhaust emissions value for operation on gasoline or diesel fuel as determined in §600.208-12(b)(5)(i). (vii) For natural gas dual fuel model types, for model years 2016 and later, the combined model type carbon-related exhaus t emissions value determined according to the following formula and rounded to the nearest gram per mile: CREE = (F × CREE alt ) + ( (1-F) × CREE gas ) Where: F = 0.00 unless otherwise approved by the Admi nistrator according to the provisions of paragraph (k) of this section; CREE alt = The combined model type carbon-related exhaust emissions value for operation on natural gas as determ ined in §600.208-12(b)(5)(ii); and CREE gas = The combined model type carbon-re lated exhaust emissions value for operation on gasoline or diesel fuel as determined in §600.208-12(b)(5)(i). (k) Alternative in-use weighting fa ctors for dual fuel model types . Using one of the methods in either paragraph (k)(1) or (2) of th is section, manufacturers may request the use of alternative values for the weighting factor F in th e equations in paragraphs (j)(2)(vi) and (vii) of this section. Unless otherwise approved by the Administrator, the manufacturer must use the value of F that is in effect in paragraphs (j)(2)(vi) and (vii) of this section. (1) Upon written request from a manufacturer, the Admini strator will determine and publish by written guidance an appropriate value of F for each requested alternative fuel based on the Administrator’s assessment of real-world use of the alternative fuel. Such publishedFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 288 of 315 values would be available for any manufacturer to use. The Administrator will periodically update these values upon written request from a manufacturer. (2) The manufacturer may optionally submit to the Administrator its own demonstration regarding the real-world use of the alternative fu el in their vehicles and its own estimate of the appropriate value of F in the e quations in paragraphs (j)(2)(vi) and (vii) of this section. Depending on the nature of the analytical appro ach, the manufacturer could provide estimates of F that are model type specific or that are generally applicable to the manufacturer’s dual fuel fleet. The manufacturer’s analysis could include use of data gath ered from on-board sensors and computers, from dual fuel vehicles in fleets that are centrally fueled, or from other sources. The analysis must be based on sound statistica l methodology and must account for analytical uncertainty. Any approval by the Administrator will pertain to the use of values of F for the model types specified by the manufacturer.

33. Redesignate §600.511-80 as §600.511-08.



### § 600.511-08 Determination of domestic production.

(a) Except with advance approval of the Administrator, an automobile shall be considered domestically produced in any mode l year if it is included within a domestically produced car line (car line includes station wagons for purposes of this paragraph) , unless the assembly of such automobile is completed in Canada or Mexico and such automobile is not imported into the United States prior to the expiration of 30 da ys following the end of the model year. For purposes of this paragraph a car line will be considered domestically produced if the following ratio is less than 0.25:

(1) The sum of the declared value, as define d in §600.502, of all of the imported components installed or included on automobiles produced within such a car line within a given model year plus the cost of transportation and insuring such components to the United St ates port of entry, the Mexican port of entry (when paragraph (b)(3) of this section a pplies), or the Canadian port of entry but exclusive of a ny customs duty, divided by

(2) The cost of production, as defined in §600. 502, of automobiles within such car line.

(b) For the purposes of calculations under this subpart with respect to automobiles manufactured during any model year,

(1) An average exchange rate fo r the country of origin of each imported component shall be used that is calculated by taking the m ean of the exchange rates in eff ect at the end of each quarter set by the Federal Reserve Bank of New York for twel ve calendar quarters prio r to and including the calendar quarter ending one year prior to the date that the manufacturer submits the calculation of the preliminary average for such model year. Su ch rate, once calculated, shall be in effect for the duration of the model year. Upon petition of a manufacturer, the Administrator may permit the use of a different exchange ra te where appropriate and necessary.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 289 of 315 (2) For automobiles for which paragraph (b)(3) of this section does not apply pursuant to the schedule in paragraph (b)(4), co mponents shall be considered imported unless they are either:

(i) Wholly the growth, product, or manufactur e of the United States and/or Canada, or

(ii) Substantially transformed in the United States or Canada into a new and different article of

commerce.

(3) For automobiles for which this paragraph app lies pursuant to the sche dule in paragraph (b)(4) of this section, component s shall be considered impor ted unless they are either:

(i) Wholly the growth, product, or manufacture of the United States a nd/or Canada and/or Mexico, or

(ii) Substantially transformed in the United States and/or Canada and/or Mexico into a new and different article of commerce.

(4) Paragraphs (b)(4) (i) through (v) of this se ction set forth the sche dule according to which paragraph (b)(3) of this secti on applies for all automobiles ma nufactured by a manufacturer and sold in the United States, wherever assembled.

(i) With respect to a manufacturer that initiated the assembly of automobiles in Mexico before model year 1992, the manufacturer may elect, at any time between January 1, 1997, and January 1, 2004, to have paragraph (b)(3) of this se ction apply to all auto mobiles it manufactures, beginning with the model year commenci ng after the date of such election.

(ii) With respect to a manufactur er initiating the assembly of au tomobiles in Mexico after model year 1991, paragraph (b)(3) of this section sh all apply to all automobiles it manufactures, beginning with the model year commencing af ter January 1, 1994, or the model year commencing after the date that the manufacturer initiates the assembly of automobiles in Mexico, whichever is later.

(iii) With respect to a manufactur er not described by paragraph (b)(4 ) (i) or (ii) of this section assembling automobiles in the United States or Canada but not in Mexi co, the manufacturer may elect, at any time between January 1, 1997, and January 1, 2004, to have paragraph (b)(3) of this section apply to all automob iles it manufactures, beginning w ith the model year commencing after the date of such election, except that if such manufacturer initiates the assembly of automobiles in Mexico before making such elec tion, this paragraph sh all not apply, and the manufacturer shall be su bject to paragraph (b)(4) (ii) of this section.

(iv) With respect to a manufacturer not assembling automobiles in the United States, Canada, or Mexico, paragraph (b)(3) of this section shall apply to all auto mobiles it manufactures, beginning with the model year commenc ing after January 1, 1994.

(v) With respect to a manufacturer authorized to make an election under paragraph (b)(4) (i) or (iii) of this section which has not made that el ection within the specified period, paragraph (b)(3)Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 290 of 315 of this section shall apply to all automobile s it manufactures, beginning with the model year commencing after January 1, 2004.

(5) All elections under paragraph (b)(4) of this section shall be made in accordance with the procedures established by the Secretary of Tran sportation pursuant to 49 U.S.C. 32904(b)(3)(C).

(c) If it is determined by the Administrator at so me date later than the date of entry that the declared value of such imported components did not represent fair market value at the date of entry, through U.S. Bureau of Customs a ppraisals, the Administrator may review the determination made pursuant to para graph (a) of this section as to whether the pertinent car lines which utilize such components were correctly included within the manufacturer’s domesticallyproduced or foreign-produced fleets. If such a determination was in error due to misrepresentation of the valuation of imported com ponents at the date of entry, the Administrator may recalculate the manufacturer's average for th e affected model year, according to §600.510, to reflect the correct valuation of such im ported components in each affected car line.



### § 600.512-08 Model year report.

(a) For each model year, the ma nufacturer shall submit to the Ad ministrator a report, known as the model year report, containing all inform ation necessary for the calculation of the manufacturer's average fuel economy. The results of the manufacturer calculations and summary information of model type fuel economy values which are contained in the average calculation shall be submitted to the Secretary of the Department of Transportation, National Highway and Traffic Safety Administration.

(b)(1) The model year report shall be in writing, signed by the authorized representative of the manufacturer and shall be submitted no later than 90 days after the end of the model year.

(2) The Administrator may waive the requirement that the model year report be submitted no later than 90 days after the e nd of the model year. Based upon a request by the manufacturer, if the Administrator determines that 90 days is in sufficient time for the manufacturer to provide all additional data required as determined in §600.507, the Administrator shall establish a date by which the model year report must be submitted.

(3) Separate reports shall be submitted for passenger automobiles and light trucks (as identified in §600.510).

(c) The model year report must include the following information:

(1) All fuel economy data used in the FTP/HF ET-based model type calculations under §600.208, and subsequently required by the Admi nistrator in accordance with §600.507;

(2) All fuel economy data for certification vehicles and for vehicles tested for running changes approved under §86.1842 of this chapter;

(3) Any additional fuel economy data submitted by the manufacturer under §600.509;Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 291 of 315 (4) A fuel economy value for each model type of the manufacturer's product line calculated according to §600.510(b)(2);

(5) The manufacturer's average fuel econom y value calculated according to §600.510(c);

(6) A listing of both domestically and nondomestica lly produced car lines as determined in §600.511 and the cost information upon which the determination was made; and

(7) The authenticity and accuracy of production data must be attested to by the corporation, and shall bear the signature of an officer (a corporat e executive of at least th e rank of vice-president) designated by the corporation. Such attestation shall constitute a representation by the manufacturer that the manufacturer has establishe d reasonable, prudent pr ocedures to ascertain and provide production data that are accurate and authentic in all material respects and that these procedures have been followed by employees of the manufacturer invo lved in the reporting process. The signature of the designated officer shall constitute a representation by the required attestation.

(8) For 2008–2010 light truck model year reports, the average fuel economy standard or the “required fuel economy level” pursuant to 49 CF R part 533, as applicable. Model year reports for light trucks meeting require d fuel economy levels pursuant to 49 CFR 533.5(g) and (h) shall include information in sufficient detail to veri fy the accuracy of the calculated required fuel economy level. Such information is expected to include but is not limited to, production information for each unique footpr int within each model type contained in the model year report and the formula used to calculate the require d fuel economy level. Model year reports for required fuel economy levels shall include a st atement that the method of measuring vehicle track width, measuring vehicle wheelbase and calculating vehicl e footprint is accurate and complies with applicable Department of Transportation requirements.

(9) For 2011 and later model year reports, the “required fuel ec onomy level” pursuant to 49 CFR parts 531 or 533, as applicable. Mod el year reports shall include information in sufficient detail to verify the accuracy of the calculated require d fuel economy level, including but is not limited to, production information for each unique footprin t within each model type contained in the model year report and the formula used to calculate the required fuel economy level. Model year reports shall include a statement that the met hod of measuring vehicle track width, measuring vehicle wheelbase and calculati ng vehicle footprint is accurate and complies with applicable Department of Transportation requirements.



### §600.512-12 Model year report. (a) For each model year, the manufacturer shall submit to the Administrator a report, known as the model year report, containing all in formation necessary for the calculation of the manufacturer's average fuel economy and all info rmation necessary for the calculation of the manufacturer’s average carbon- related exhaust emissions. (1) The results of the manufacturer calculatio ns and summary information of model type fuel economy values which are contained in the average fuel economy calculation shall also be submitted to the Secretary of the Department of Transportation, National Highway and Traffic Safety Administration.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 292 of 315 (2) The results of the manufacturer calculatio ns and summary information of model type carbon-related exhaust emission values which are c ontained in the average calculation shall be submitted to the Administrator. (b)(1) The model year report shall be in wri ting, signed by the author ized representative of the manufacturer and shall be submitted no later than 90 days after the end of the model year. (2) The Administrator may waive the requireme nt that the model year report be submitted no later than 90 days after the end of the model year. Based up on a request by the manufacturer, if the Administrator determines that 90 days is insufficient time for the manufacturer to provide all additional data required as determined in §600.507, the Administrato r shall establish an alternative date by which the model year report must be submitted. (3) Separate reports shall be submitted for passenger automobiles and light trucks (as identified in §600.510). (c) The model year report must include the following information: (1)(i) All fuel economy data used in the FTP/HFET-based m odel type calculations under §600.208–12, and subsequently required by the Ad ministrator in acco rdance with §600.507; (ii) All carbon-related exhaust emission data used in the FTP/HFET-based model type calculations under §600.208–12, and subsequently re quired by the Administrator in accordance with §600.507; (2) (i) All fuel economy data for certification vehicles and for vehicles tested for running changes approved under §86. 1842 of this chapter; (ii) All carbon-related exhaust emission data for certification vehicles and for vehicles tested for running changes approve d under §86.1842 of this chapter; (3) Any additional fuel economy and carbon-related exhaust emission data submitted by the manufacturer under §600.509; (4)(i) A fuel economy value for each model type of the manufacturer's product line calculated according to §600.510(b)(2); (ii) A carbon-related exhaust emission value for each model type of the manufacturer's product line calculated according to §600.510(b)(2); (5)(i) The manufacturer's average fuel economy value calculated according to §600.510(c); (ii) The manufacturer's average carbon-re lated exhaust emission value calculated according to §600.510(j); (6) A listing of both domestically and nondomestic ally produced car lines as determined in §600.511 and the cost information upon which the determination was made; and (7) The authenticity and accuracy of producti on data must be attested to by the corporation, and shall bear the si gnature of an officer (a corpor ate executive of at least the rank of vice-president) designated by the corporation. Such attestation shall constitute a representation by the manufacturer that the ma nufacturer has established reasonable, prudent procedures to ascertain and provide production data that are accurate and authenti c in all material respects and that these procedures have been followed by em ployees of the manufacturer involved in the reporting process. The signature of the designated officer shall constitute a representation by the required attestation. (8) For 2008–2010 light truck model year reports , the average fuel economy standard or the “required fuel economy level” pursuant to 49 CFR part 533, as applicable. Model year reports for light trucks meeting required fuel eco nomy levels pursuant to 49 CFR 533.5(g) and (h) shall include information in sufficient detail to verify the accuracy of the calculated requiredFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 293 of 315 fuel economy level. Such information is expect ed to include but is not limited to, production information for each unique footpr int within each model type contained in the model year report and the formula used to calculate the require d fuel economy level. Model year reports for required fuel economy levels shall include a st atement that the method of measuring vehicle track width, measuring vehicle wheelbase and calculating vehicl e footprint is accurate and complies with applicable Department of Transportation requirements. (9) For 2011 and later model year reports, th e “required fuel economy level” pursuant to 49 CFR parts 531 or 533, as applicable. Model ye ar reports shall include information in sufficient detail to verify the accuracy of the calculated required fuel economy level, including but is not limited to, production information for each unique footprint within each model type contained in the model year report and the form ula used to calculate the required fuel economy level. Model year reports shall include a statement that the me thod of measuring vehicle track width, measuring vehicle wheelba se and calculating vehicle footpr int is accurate and complies with applicable Department of Transportation requirements. (10) For 2012 and later model year reports, th e “required fuel economy level” pursuant to 49 CFR parts 531 or 533 as applicable, and the ap plicable fleet average CO2 emission standards. Model year reports shall include information in sufficient detail to verify the accuracy of the calculated required fuel economy level and fleet average CO2 emission standards, including but is not limited to, production information for each unique footprint within each model type contained in the model year report and the form ula used to calculate the required fuel economy level and fleet average CO2 emissi on standards. Model year reports shall include a statement that the method of measuring vehicle track width, measuring vehicle whee lbase and calculating vehicle footprint is accurate and complies with applicable Department of Transportation and EPA requirements. (11) For 2012 and later model year reports, a detailed (but easy to understand) list of vehicle models and the applicable in-use CREE emission standard. The list of models shall include the applicable carline/s ubconfiguration parameters (including carline, equivalent test weight, road-load horsepower, axle ratio, engi ne code, transmission class, transmission configuration and basic engine); the test parameters (ETW and a, b, c, dynamometer coefficients) and the associated CREE emission standard. Th e manufacturer shall provide the method of identifying EPA engine code fo r applicable in-use vehicles.



### § 600.513-08 Gas Guzzler Tax.

(a) This section applies only to passenger automobiles sold after December 27, 1991, regardless of the model year of those vehicles. For alcohol du al fuel and natural gas dual fuel automobiles, the fuel economy while such automobiles are ope rated on gasoline will be used for Gas Guzzler Tax assessments.

(1) The provisions of this s ection do not apply to passenger automobiles exempted for Gas Guzzler Tax assessments by applicable federal law and regulations. However, the manufacturer of an exempted passenger automobile may, in its discretion, label such vehicles in accordance with the provisions of this section.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 294 of 315 (2) For 1991 and later model ye ar passenger automobiles, the combined FTP/HFET-based model type fuel economy value determined in §600.208 used for Gas Guzzler Tax assessments shall be calculated in accordance with the following equation, rounded to the nearest 0.1 mpg:

FE adj = FE[((0.55 × a g × c) + (0.45 × c) + (0.5556 × a g ) + 0.4487) / ((0.55 × a g ) + 0.45)] + IW g

Where:

FE adj = Fuel economy value to be used for determination of gas guzzler tax assessment rounded to the nearest 0.1
mpg.

FE = Combined model type fuel economy calculated in accordance with §600 .208, rounded to the nearest 0.0001
mpg.

a g = Model type highway fuel economy, calculated in accordance with §600.208, rounded to the nearest 0.0001 mpg divided by the model type c ity fuel economy calculated in accordance with §600.208, rounded to the nearest 0.0001 mpg. The quotient shall be rounded to 4 decimal places.

c = gas guzzler adjustment factor = 1.300 × 10 − 3 for the 1986 and later model years.

IW g = (9.2917 × 10 − 3 × SF 3IWCG FE 3IWCG )

− (3.5123 × 10 − 3 × SF 4ETWG × FE 4IWCG ).

Note: Any calculated value of IW less than zero shall be set equal to zero.

SF 3IWCG = The 3000 lb. inertia weight class sales in the model type divided by the total model type sales; the quotient shall be rounded to 4 decimal places.

SF 4ETWG = The 4000 lb. equivalent test weight sales in the model type divided by the total model type sales, the quotient shall be rounded to 4 decimal places.

FE 3IWCG = The 3000 lb. inertial weight class base level combined fuel economy used to calculate the model type fuel economy rounded to th e nearest 0.0001 mpg.

FE 4IWCG = The 4000 lb. inertial weight class base level combined fuel economy used to calculate the model type fuel economy rounded to th e nearest 0.001 mpg.

(b)(1) For passenger automobiles sold after D ecember 31, 1990, with a combined FTP/HFETbased model type fuel economy value of le ss than 22.5 mpg (as determined in §600.208), calculated in accordance with paragraph (a)(2) of this section and rounded to the nearest 0.1 mpg, each vehicle fuel economy label shall include a Gas Guzzler Tax statement pursuant to 49 U.S.C. 32908(b)(1)(E). The tax amount stated shall be as specifie d in paragraph (b)(2) of this section.

(2) For passenger automobiles with a combined ge neral label model type fuel economy value of:

(i) At least 22.5 mpg, no Gas Gu zzler Tax statement is required.

(ii) At least 21.5 mpg, but less than 22.5 mpg, the Gas Guzzler Ta x statement shall show a tax of $1,000.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 295 of 315 (iii) At least 20.5 mpg, but less than 21.5 mpg, th e Gas Guzzler Tax statement shall show a tax of $1,300.

(iv) At least 19.5 mpg, but less than 20.5 mpg, th e Gas Guzzler Tax statement shall show a tax of $1,700.

(v) At least 18.5 mpg; but less th an 19.5 mpg, the Gas Guzzler Tax statement shall show a tax of $2,100.

(vi) At least 17.5 mpg, but less than 18.5 mpg, th e Gas Guzzler Tax statement shall show a tax of $2,600.

(vii) At least 16.5 mpg, but less than 17.5 mpg, the Gas Guzzler Tax statement shall show a tax of $3,000.

(viii) At least 15.5 mpg, but le ss than 16.5 mpg, the Gas Guzzler Tax statement shall show a tax of $3,700.

(ix) At least 14.5 mpg, but less than 15.5 mpg, th e Gas Guzzler Tax statement shall show a tax of $4,500.

(x) At least 13.5 mpg, but less th an 14.5 mpg, the Gas Guzzler Tax statement shall show a tax of $5,400.

(xi) At least 12.5 mpg, but less than 13.5 mpg, th e Gas Guzzler Tax statement shall show a tax of $6,400.

(xii) Less than 12.5 mpg, the Gas Guzzler Tax statement shall show a tax of $7,700.

§600.514-12 Reports to the Environmental Protection Agency. This section establishes requirements for auto mobile manufacturers to submit reports to the Environmental Protection Agency regardi ng their efforts to reduce automotive greenhouse gas emissions. (a) General Requirements . (1) For each model year, each manufacturer shall submit a pre-model year report. (2) The pre-model year report required by this section for each model year must be submitted before the model year begins and befo re the certification of any test group, no later than December 31 of the calendar year two year s before the model year. For example the premodel year report for the 2012 model year must be submitted no later than December 31, 2010). (3) Each report required by this section must: (i) Identify the report as a pre-model year report; (ii) Identify the manufacturer submitting the report; (iii) State the full name, title, and address of the official responsible for preparing the report; (iv) Be submitted to: Director, Compliance and Innovative Strategies Division, U.S. Environmental Protection Agency, 2000 Tr averwood, Ann Arbor, Michigan 48105;Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 296 of 315 (v) Identify the current model year; (vi) Be written in the English language; and (vii) Be based upon all informa tion and data available to th e manufacturer approximately 30 days before the report is submitted to the Administrator. (b) Content of pre model year reports . (1) Each pre-model year report must include the following information for each compliance category fo r the applicable future model year and to the extent possible, two model years into the future: (i) The manufacturer’s estimate of it’ s footprint-based fleet average CO 2 standards (including temporary lead time allowance al ternative standards, if applicable); (ii) Projected total and mode l-level production volumes for each applicable standard category; (iii) Projected fleet average CO 2 compliance level for each applicable standard category; and the model-level CO 2 emission values which form the basis of the projection; (iv) Projected fleet average CO 2 credit/debit status for each applicable standard category; (v) A description of the various credit, transf er and trading options that will be used to comply with each applicable standard category, including the amount of credit the manufacturer intends to generate for air conditioning leak age, air conditioning efficiency, off-cycle technology, and various ear ly credit programs; (vi) A description of the method which will be used to calculate the carbon-related exhaust emissions for any electric vehicles, fu el cell vehicles and pl ug-in hybrid vehicles; (vii) A summary by model year (beginning w ith the 2009 model yea r) of the number of electric vehicles, fuel cell vehi cles and plug-in hybrid vehicles using (or projected to use) the advanced technology vehi cle incentives program; (viii) The methodology which will be used to comply with N 2 O and CH 4 emission standards; and (ix) Other information reque sted by the Administrator. (2) Manufacturers must submit, in the pre- model year report for each model year in which a credit deficit is gene rated (or projected to be ge nerated), a compliance plan demonstrating how the manufacturer will comply with the fleet average CO 2 standard by the end of the third year after the deficit occurred.


### Appendix I to Part 600—Highway Fuel Economy Driving Schedule

[ speed (mph) vs time (sec) ]

SEC MPH SEC MPH SEC MPH SEC MPH SE C MPH SEC MPH SEC MPH SEC MPH

0 Sample On 50 38.6 100 48.5 150 44.1 200 43.4 250 48.0 300 33.4 350 59.0

1 0.0 51 39.3 101 48.8 151 44.3 201 43.2 251 48.0 301 35.6 351 58.9

2 0.0 52 40.0 102 49.1 152 44.4 202 43.2 252 48.0 302 37.5 352 58.8

3 2.0 53 40.7 103 49.2 153 44.6 203 43.1 253 48.1 303 39.1 353 58.6

4 4.9 54 41.4 104 49.1 154 44.7 204 43.0 254 48.2 304 40.2 354 58.4

5 8.1 55 42.2 105 49.1 155 44.9 205 43.0 255 48.2 305 41.1 355 58.2

6 11.3 56 42.9 106 49.0 156 45.2 206 43.1 256 48.1 306 41.8 356 58.1

7 14.5 57 43.5 107 49.0 157 45.7 207 43.4 257 48.6 307 42.4 357 58.0Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 297 of 315 8 17.3 58 44.0 108 49.1 158 45.9 208 43.9 258 48.9 308 42.8 358 57.9

9 19.6 59 44.3 109 49.2 159 46.3 209 44.0 259 49.1 309 43.3 359 57.6

10 21.8 60 44.5 110 49.3 160 46.8 210 43.5 260 49.1 310 43.8 360 57.4

11 24.0 61 44.8 111 49.4 161 46.9 211 42.6 261 49.1 311 44.3 361 57.2

12 25.8 62 44.9 112 49.5 162 47.0 212 41.5 262 49.1 312 44.7 362 57.1

13 27.1 63 45.0 113 49.5 163 47.1 213 40.7 263 49.1 313 45.0 363 57.0

14 28.0 64 45.1 114 49.5 164 47.6 214 40.0 264 49.0 314 45.2 364 57.0

15 29.0 65 45.4 115 49.4 165 47.9 215 40.0 265 48.9 315 45.4 365 56.9

16 30.0 66 45.7 116 49.1 166 48.0 216 40.3 266 48.2 316 45.5 366 56.9

17 30.7 67 46.0 117 48.9 167 48.0 217 41.0 267 47.7 317 45.8 367 56.9

18 31.5 68 46.3 118 48.6 168 47.9 218 42.0 268 47.5 318 46.0 368 57.0

19 32.2 69 46.5 119 48.4 169 47.8 219 42.7 269 47.2 319 46.1 369 57.0

20 32.9 70 46.8 120 48.1 170 47.3 220 43.1 270 46.7 320 46.5 370 57.0

21 33.5 71 46.9 121 47.7 171 46.7 221 43.2 271 46.2 321 46.8 371 57.0

22 34.1 72 47.0 122 47.4 172 46.2 222 43.4 272 46.0 322 47.1 372 57.0

23 34.6 73 47.1 123 47.3 173 45.9 223 43.9 273 45.8 323 47.7 373 57.0

24 34.9 74 47.2 124 47.5 174 45.7 224 44.3 274 45.6 324 48.3 374 57.0

25 35.1 75 47.3 125 47.8 175 45.5 225 44.7 275 45.4 325 49.0 375 57.0

26 35.7 76 47.2 126 47.9 176 45.4 226 45.1 276 45.2 326 49.7 376 57.0

27 35.9 77 47.1 127 48.0 177 45.3 227 45.4 277 45.0 327 50.3 377 56.9

28 35.8 78 47.0 128 47.9 178 45.0 228 45.8 278 44.7 328 51.0 378 56.8

29 35.3 79 46.9 129 47.9 179 44.0 229 46.5 279 44.5 329 51.7 379 56.5

30 34.9 80 46.9 130 47.9 180 43.1 230 46.9 280 44.2 330 52.4 380 56.2

31 34.5 81 46.9 131 48.0 181 42.2 231 47.2 281 43.5 331 53.1 381 56.0

32 34.6 82 47.0 132 48.0 182 41.5 232 47.4 282 42.8 332 53.8 382 56.0

33 34.8 83 47.1 133 48.0 183 41.5 233 47.3 283 42.0 333 54.5 383 56.0

34 35.1 84 47.1 134 47.9 184 42.1 234 47.3 284 40.1 334 55.2 384 56.1

35 35.7 85 47.2 135 47.3 185 42.9 235 47.2 285 38.6 335 55.8 385 56.4

36 36.1 86 47.1 136 46.0 186 43.5 236 47.2 286 37.5 336 56.4 386 56.7

37 36.2 87 47.0 137 43.3 187 43.9 237 47.2 287 35.8 337 56.9 387 56.9

38 36.5 88 46.9 138 41.2 188 43.6 238 47.1 288 34.7 338 57.0 388 57.1

39 36.7 89 46.5 139 39.5 189 43.3 239 47.0 289 34.0 339 57.1 389 57.3

40 36.9 90 46.3 140 39.2 190 43.0 240 47.0 290 33.3 340 57.3 390 57.4

41 37.0 91 46.2 141 39.0 191 43.1 241 46.9 291 32.5 341 57.6 391 57.4

42 37.0 92 46.3 142 39.0 192 43.4 242 46.8 292 31.7 342 57.8 392 57.2Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 298 of 315 43 37.0 93 46.5 143 39.1 193 43.9 243 46.9 293 30.6 343 58.0 393 57.0

44 37.0 94 46.9 144 39.5 194 44.3 244 47.0 294 29.6 344 58.1 394 56.9

45 37.0 95 47.1 145 40.1 195 44.6 245 47.2 295 28.8 345 58.4 395 56.6

46 37.0 96 47.4 146 41.0 196 44.9 246 47.5 296 28.4 346 58.7 396 56.3

47 37.1 97 47.7 147 42.0 197 44.8 247 47.9 297 28.6 347 58.8 397 56.1

48 37.3 98 48.0 148 43.1 198 44.4 248 48.0 298 29.5 348 58.9 398 56.4

49 37.8 99 48.2 149 43.7 199 43.9 249 48.0 299 31.4 349 59.0 399 56.7

SEC MPH SEC MPH SEC MPH SEC MPH SEC MPH SEC MPH SEC MPH SEC MPH

400 57.1 450 58.2 500 54.7 550 55.8 600 48.3 650 50.2 700 54.2 750 26.8

401 57.5 451 58.1 501 54.6 551 55.6 601 48.0 651 50.7 701 54.5 751 24.5

402 57.8 452 58.0 502 54.4 552 55.4 602 47.9 652 51.1 702 54.8 752 21.5

403 58.0 453 58.0 503 54.3 553 55.2 603 47.8 653 51.7 703 55.0 753 19.5

404 58.0 454 58.0 504 54.3 554 55.1 604 47.7 654 52.2 704 55.5 754 17.4

405 58.0 455 58.0 505 54.2 555 55.0 605 47.9 655 52.5 705 55.9 755 15.1

406 58.0 456 58.0 506 54.1 556 54.9 606 48.3 656 52.1 706 56.1 756 12.4

407 58.0 457 58.0 507 54.1 557 54.6 607 49.0 657 51.6 707 56.3 757 9.7

408 58.0 458 57.9 508 54.1 558 54.4 608 49.1 658 51.1 708 56.4 758 7.0

409 57.9 459 57.9 509 54.0 559 54.2 609 49.0 659 51.0 709 56.5 759 5.0

410 57.8 460 58.0 510 54.0 560 54.1 610 48.9 660 51.0 710 56.7 760 3.3

411 57.7 461 58.1 511 54.0 561 53.8 611 48.0 661 51.1 711 56.9 761 2.0

412 57.7 462 58.1 512 54.0 562 53.4 612 47.1 662 51.4 712 57.0 762 0.7

413 57.8 463 58.2 513 54.0 563 53.3 613 46.2 663 51.7 713 57.3 763 0.0

414 57.9 464 58.3 514 54.0 564 53.1 614 46.1 664 52.0 714 57.7 764 0.0

415 58.0 465 58.3 515 54.0 565 52.9 615 46.1 665 52.2 715 58.2 765 Sample Of f

416 58.1 446 58.3 516 54.0 566 52.6 616 46.2 666 52.5 716 58.8

417 58.4 467 58.2 517 54.1 567 52.4 617 46.9 667 52.8 717 59.1

418 58.9 468 58.1 518 54.2 568 52.2 618 47.8 668 52.7 718 59.2

419 59.1 469 58.0 519 54.5 569 52.1 619 49.0 669 52.6 719 59.1

420 59.4 470 57.8 520 54.8 570 52.0 620 49.7 670 52.3 720 58.8

421 59.8 471 57.5 521 54.9 571 52.0 621 50.6 671 52.3 721 58.5

422 59.9 472 57.1 522 55.0 572 52.0 622 51.5 672 52.4 722 58.1

423 59.9 473 57.0 523 55.1 573 52.0 623 52.2 673 52.5 723 57.7

424 59.8 474 56.6 524 55.2 574 52.1 624 52.7 674 52.7 724 57.3

425 59.6 475 56.1 525 55.2 575 52.0 625 53.0 675 52.7 725 57.1

426 59.4 476 56.0 526 55.3 576 52.0 626 53.6 676 52.4 726 56.8

427 59.2 477 55.8 527 55.4 577 51.9 627 54.0 677 52.1 727 56.5

428 59.1 478 55.5 528 55.5 578 51.6 628 54.1 678 51.7 728 56.2

429 59.0 479 55.2 529 55.6 579 51.4 629 54.4 679 51.1 729 55.5Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 299 of 315 430 58.9 480 55.1 530 55.7 580 51.1 630 54.7 680 50.5 730 54.6

431 58.7 481 55.0 531 55.8 581 50.7 631 55.1 681 50.1 731 54.1

432 58.6 482 54.9 532 55.9 582 50.3 632 55.4 682 49.8 732 53.7

433 58.5 483 54.9 533 56.0 583 49.8 633 55.4 683 49.7 733 53.2

434 58.4 484 54.9 534 56.0 584 49.3 634 55.0 684 49.6 734 52.9

435 58.4 485 54.9 535 56.0 585 48.7 635 54.5 685 49.5 735 52.5

436 58.3 486 54.9 536 56.0 586 48.2 6.36 53.6 686 49.5 736 52.0

437 58.2 487 54.9 537 56.0 587 48.1 637 52.5 687 49.7 737 51.3

438 58.1 488 55.0 538 56.0 588 48.0 638 50.2 688 50.0 738 50.5

439 58.0 489 55.0 539 56.0 589 48.0 6.39 48.2 689 50.2 739 49.5

440 57.9 490 55.0 540 56.0 590 48.1 640 46.5 690 50.6 740 48.5

441 57.9 491 55.0 541 56.0 591 48.4 641 46.2 691 51.1 741 47.6

442 57.9 492 55.0 542 56.0 592 48.9 642 46.0 692 51.6 742 46.8

443 57.9 493 55.0 543 56.0 593 49.0 643 46.0 693 51.9 743 45.6

444 57.9 494 55.1 544 56.0 594 49.1 644 46.3 694 52.0 744 44.2

445 58.0 495 55.1 545 56.0 595 49.1 645 46.8 695 52.1 745 42.5

446 58.1 496 55.0 546 56.0 596 49.0 646 47.5 696 52.4 746 39.2

447 58.1 497 54.9 547 55.9 597 49.0 647 48.2 697 52.9 747 35.9

448 58.2 498 54.9 548 55.9 598 48.9 648 48.8 698 53.3 748 32.6

449 58.2 499 54.8 549 55.9 599 48.6 649 49.5 699 53.7 749 29.3


### Appendix II to Part 600—Sampl e Fuel Economy Calculations (a) [Reserved]

(b) This sample fuel economy calculation is applicable to 1988 and later model year automobiles.

(1) Assume that a gasoline-fueled vehicle was te sted by the Federal Emission Test Procedure and the following results were calculated:

HC = 0.139 grams/mile.

CO = 1.59 grams/mile.

CO 2 = 317 grams/mile.

(2) Assume that the test fu el used for this test had the following properties:

SG = 0.745.

CWF = 0.868.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 300 of 315 NHV = 18,478 Btu/lb.

(3) According to the pro cedure in §600.113–08, the city fuel economy or MPG c , for the vehicle may be calculated by substituting the HC, CO, and CO 2 gram/mile values and the SG, CWF, and NHV values into the following equation:

MPG c = (5174 × 10 4 × CWF × SG) / [((CWF × HC ) + (0.429 × CO + (0.273 × CO 2 )) ((0.6 × SG × NHV) + 5471)]

Example:

MPG c = (5174 × 10 4 × 0.868 × 0.745) / [(0.868 × 0.139 + 0.429 × 1.59 + 0.273 × 317)(0.6 × 0.745 × 18478 + 5471)]

MPG c = 27.9

(4) Assume that the same vehicle was test ed by the Federal Highway Fuel Economy Test Procedure and a calculation similar to that shown in (b)(3) of this secti on resulted in a highway fuel economy of MPG h of 36.9. According to the pr ocedure in §600.210-08(c) or §600.210– 12(c), the combined fuel economy (called MPG comb ) for the vehicle may be calculated by substituting the city and highway fuel ec onomy values into the following equation:



### Appendix III to Part 600—Sample Fuel Econ omy Label Calculation

Suppose that a manufacturer called Mizer Motors has a pr oduct line composed of eight car lines. Of these eight, four are available with the 3.0 liter, 6 cylinder, sequential multi-point fuel injection, 4-valve per cylinde r, and 3-way catalyst engine. These four car lines are:

Ajax

Boredom III

Dodo

Castor (Station Wagon)Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 301 of 315 A. A car line is defined in subpart A (with additional guidance provi ded in EPA Advisory Circular 89) as a group of vehicles within a ma ke or division which has a degree of commonality in construction. Car line does not consider any le vel of decor or opulence and is not generally distinguished by such characterist ics as roofline, number of door s, seats, or windows. Station wagons and light duty trucks are, however, identi fied separately from the remainder of each car line. In other words, a Castor station wagon would be considered a different car line than the normal Castor car line made up of sedans, coupes, etc.

B. The engine considered here is defined as a basic engine in subpart A of this part (with additional guidance provided in EPA Advisory Circular 83A). A basic engine is a unique combination of manufacturer, en gine displacement, number of cy linders, fuel system, catalyst usage and other engine and emission contro l system characteristics specified by the Administrator. A model type is a unique combination of car line , basic engine, and transmission class. Thus Ajax is a car line but Ajax 3.0 lit er, 6 cylinder manual four-s peed transmission is a model type whereas Ajax 3.0 liter, 6 cylinder au tomatic three-speed transmission is a different model type.

C. The following calculations provide an example of the procedures described in subpart C of this part for the calculation of vehicle configuration and model type fuel economy values. In order to simplify the presentation, only city fuel economy values are included (as determined by either the derived 5-cycle method or vehicle-sp ecific 5-cycle based met hod). The procedure is identical for highway and combined fuel economy values.

Step I. Input data as supplied by the manufacturer or as determ ined from testing conducted by the Administrator.

Manufacturer—Mizer Motors

Basic Engine: (3.0 liter, 6 cylinde r, sequential multi-point fuel in jection, 4-valve per cylinder, 3- way catalyst).

Test vehicle carline Engine code Trans Inertia weight Axle ratio Harmonically averaged. city MPG Specific label MPG 1 Vehicle config.

sales
Ajax 1 M–4 3500 2.73 16.1001 16 15,000
Ajax 2 A–3 3500 2.56 15.9020 16 35,000

Boredom III 4 M–4 4000 3.08 14.2343 14 10,000
Ajax 3 M–4 4000 3.36 15.0000 15 15,000

Boredom III 8 A–3 4000 2.56 13.8138 14 25,000

Boredom III 5 A–3 4500 3.08 13.2203 13 20,000

Castor 5 A–3 5000 3.08 10.6006 11 40,000Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 302 of 315 1 The vehicle configuration fuel economy values, rounded to the n earest mile per gallon, are the fuel economy values that would be used on speci fic labels for that vehicle configuration.

Step II. Group vehicle fuel economy and sales data according to base leve l combinations within this basic engine.

Base level Transmission class Inertia weight Miles per gallon Projected vehicle configuration sales
A Manual-4 3,500 16.1001 15,000
B Automatic-3 3,500 15.9020 35,000
C Manual-4 4,000 14.2343 10,000
C Manual-4 4,000 15.0000 15,000
D Automatic-3 4,000 13.8138 25,000
E Automatic-3 4,500 13.2203 20,000
F Automatic-3 5,000 10.6006 40,000

Step III. Determine base level fuel economy values.

A. For all the base levels except the base level which includes 4,000 pound, manual four-speed transmission data, the base le vel fuel economy is as noted in Step II since only one vehicle configuration was tested within each of these base levels.

3,500 lb/M4 transmission 16.1001 mpg.
3,500 lb/A3 transmission 15.9020 mpg.
4,000 lb/A3 transmission 13.8138 mpg.
4,500 lb/A3 transmission 13.2203 mpg.
5,000 lb/A3 transmission 10.6006 mpg.

B. Since data from more than one vehicle c onfiguration are included in the 4,000-pound, manual four-speed transmission base level, this fuel eco nomy is harmonically averaged in proportion to the percentage of total sales of al l vehicle configurations tested within that base level represented by each vehicle configuration test ed within that base level.Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 303 of 315 Base level: M4 transmission, 4000 pounds:

Therefore, the 4000 pound, M4 transmission fu el economy is 14.6840 miles per gallon.

Note that the car line of the test vehicle using a given engi ne makes no difference—only the weight and transmission do.

Step IV. For each model type offered by the manufacturer with that basi c engine, determine the sales fraction represented by each inertia wei ght/transmission class combination and the corresponding fuel economy.

Ajax M4 0.4000 at 3,500 lb 16.1001
0.6000 at 4,000 lb 14.6840
A3 0.3000 at 3,500 lb 15.9020
0.7000 at 4,000 lb 13.8138

Dodo M4 0.4000 at 3,500 lb 16.1001
0.6000 at 4,000 lb 14.6840
A3 0.3000 at 3,500 lb 15.9020
0.7000 at 4,000 lb 13.8138

Boredom III M4 1.0000 at 4,000 lb 14.6840
A3 0.2500 at 4,000 lb 13.8138
0.7500 at 4,500 lb 13.2203

Castor A3 0.2000 at 4,500 lb 13.2203
0.8000 at 5,000 lb 10.6006

Step V. Determine fuel economy for each model t ype (that is, car line/basic engine/transmission class combination).Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 304 of 315 Ajax, 3.0 liter, 6 cylinder, A3 transmission, model type MPG is calculated as follows:

Similarly, Ajax and Dodo 3.0 liter, 6 cylinder, M4 model type MPG is calculated as follows:

Dodo 3.0 liter, 6 cylinder, A3 model type MPG is calculated as follows:

Boredom III 3.0 liter 6 cylinder M4 model t ype MPG = 14.6840 mpg, which rounds to 15 mi./gal 1

1 The model type fuel economy values rounded to the nearest mile per gallon, are the fuel economy values listed in the EPA Fuel Economy Guide and used on the general labels (window stickers) for production vehicles for that model year.

Boredom III 3.0 liter, 6 cylinder, A3 model type MPG is calculated as follows:

Castor 3.0 liter, 6 cylinder, A3 model type MPG is calculated as follows:Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 305 of 315 Note that even though no Dodo was actually test ed, this approach permits its fuel economy figure to be estimated, based on th e inertia weight distribution of projected Dodo sales within a specific engine and transmission grouping.



### Appendix IV to Part 600— Sample Fuel Economy Labels for 2008 through 2011 Model Year Vehicles

A. Gasoline (or diesel)-fueled vehicle label

View or download PDF

B. Gasoline (or diesel)-fueled vehicle label (w ith transitional text statement for MY 2008 and 2009 vehicles only)Fuel Economy Labeling NPRM for OMB Review 7-22-10

Page 306 of 315 View or download PDF

C. Gasoline-fueled Gas Guzzler vehicle label

View or download PDF

D. Dual Fuel Vehicle Label (Ethanol/Gasoline)

Option 1—without alte rnate fuel economy)

View or download PDF

Option 2—with alternate fuel economyFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 307 of 315 View or download PDF

E. Natural Gas Vehicle Label

View or download PDF

F. Dual Fuel Natural Gas Label

Option 1—without alternate fuel economyFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 308 of 315 View or download PDF

Option 2—With alternate fuel economy

View or download PDF



### Appendix V to Part 600—Fuel Economy Label Style Guide lines for 2008 through 2011 Model Year Vehicles

A. Format Guidelines for Gasoline (or Diesel) VehiclesFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 309 of 315 View or download PDF

B. Format Guidelines for Ethanol and Natura l Gas Dual Fuel Vehicles. Unless otherwise indicated, the format specificat ions in Appendix V. A. apply.

View or download PDFFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 310 of 315 View or download PDF

View or download PDFFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 311 of 315 View or download PDF

C. Format Guidelines showing Gas Guzzler. Unless otherwise indicated, the format specifications in Appendix V. A. apply.

View or download PDFFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 312 of 315 View or download PDF

D. Format Guidelines for Natural Vehicles. Unle ss otherwise indicated, the format specifications in Appendix V. A. apply.

View or download PDFFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 313 of 315 Appendix VI to Part 600—Sample Fuel Econom y Labels and Style Guidelines for 2012 and Later Model Years

A. Gasoline-fueled or diesel-fueled vehicles, in cluding hybrid electric vehi cles with no plug-in capabilities.

B. Dual Fuel Vehicle Label (Ethanol/Gasoline)

Option 1—without alte rnate fuel economy)

Option 2—with alternate fuel economy

C. Natural Gas Vehicle Label

D. Dual Fuel Natural Gas Label

Option 1—without alternate fuel economy

Option 2—with alternate fuel economy

E. Plug-in Hybrid Electric Vehicle Label

F. Electric Vehicle Label

G. Gasoline-fueled Gas Guzzler vehicle label

Appendix VII to Part 600— Alternate Sample Fu el Economy Labels and Style Guidelines for 2012 and Later Model YearsFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 314 of 315 Appendix VIII --- [Removed]

34. Appendix VIII is removed.

Department of Transportation

49 CFR Chapter V

In consideration of the foregoing, under the authority of 15 U.S.C. 1232 and 49 U.S.C. 32908 and delegation of authority at 49 CFR 1. 50, NHTSA proposes to amend 49 CFR Chapter V as follows:

PART 575—CONSUMER INFORMATION

1. The authority citati on for part 575 continues to read as follows:

Authority: 49 U.S.C. 32302, 30111, 30115, 30117, 30166, and 20168, Pub. L. 104-414, 114 Stat. 1800, Pub. L. 109-59, 119 Stat. 1144, 15 U.S.C. 1232(g); delegati on of authority at 49 CFR 1.50.

2. Amend § 575.301(d) by addi ng a new sub-paragraph (6) to read as follows:

§ 575.301 Vehicle Labeling of Sa fety Rating Information.

* * * * *

(d) * * *

(6) [forthcoming]

* * * * *

PART xx—VEHICLE LABELING OF FU EL ECONOMY, GREENHOUSE GAS, AND OTHER EMISSIONS INFORMATIONFuel Economy Labeling NPRM for OMB Review 7-22-10

Page 315 of 315 Dated:

____________________ Ray LaHood, Secretary, Department of Transportation

Dated:

____________________ Lisa P. Jackson, Administrator, Environm ental Protection Agency