Vol. 79 Friday, 

No. 55 March 21, 2014 

Part III 

Department of Energy 

10 CFR Part 490 

Alternative Fuel Transportation Program; Alternative Fueled Vehicle Credit 

Program Modification and Other Amendments; Final Rule 

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15882 Federal Register / Vol. 79, No. 55 / Friday, March 21, 2014 / Rules and Regulations 

DEPARTMENT OF ENERGY 

10 CFR Part 490 

[Docket ID No. EERE–2011–OT–0066] 

RIN 1904–AB81 

Alternative Fuel Transportation 

Program; Alternative Fueled Vehicle 

Credit Program Modification and Other 

Amendments 

AGENCY: Department of Energy (DOE). 

ACTION: Final rule. 

SUMMARY: Pursuant to section 133 of the 

Energy Independence and Security Act 

of 2007 (EISA), DOE is finalizing a rule 

that revises regulations on the 

Alternative Fuel Transportation 

Program (AFTP or the Program). This 

final rule establishes regulations on the 

allocation of marketable credits for the 

acquisition of EISA-specified electric 

drive vehicles and for investments in 

qualified alternative fuel infrastructure, 

qualified alternative fuel non-road 

equipment, and relevant emerging 

technologies. DOE also is promulgating 

modifications to the exemption process 

and the Alternative Compliance option, 

as well as a number of technical and 

other revisions that will make the 

Program regulations clearer. 

DATES: This final rule is effective on 

April 21, 2014. 

ADDRESSES: DOE established a docket 

for this action under Docket ID No. 

EERE–2011–OT–0066. The docket is 

available for review at http://

www.regulations.gov. All documents in 

the docket, including Federal Register 

notices, supporting materials, and 

public comments, are listed in the 

docket index. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Dana V. O’Hara, Office of Energy 

Efficiency and Renewable Energy (EE– 

2G), U.S. Department of Energy, 1000 

Independence Avenue SW., 

Washington, DC 20585–0121. 

Telephone: (202) 586–9171. Email: 

regulatory.info@nrel.gov. 

Mr. Ari Altman, Office of the General 

Counsel (GC–71), U.S. Department of 

Energy, 1000 Independence Avenue 

SW., Washington, DC 20585–0121. 

Telephone: (202) 287–6307. Email: 

Ari.Altman@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction and Background 

A. General 

B. Current Status of Alternative Fuel 

Transportation Program 

C. Statutory Authority 

1. EISA 

2. Additional Revisions 

II. Public Comments 

III. Discussion of the Final Rule 

A. Existing Definitions 

1. Alternative Fuel 

2. Alternative Fueled Vehicle 

3. Automobile 

4. Dedicated Vehicle 

5. Dual Fueled Vehicle 

6. Electric Motor Vehicle and ElectricHybrid Vehicle 

7. Section 133-Identified Vehicles That 

Already Qualify as AFVs 

B. New Definitions: EISA Section 133 

Vehicles and Investments 

1. Fuel Cell Electric Vehicle 

2. Hybrid Electric Vehicle 

3. Medium- or Heavy-Duty Electric Vehicle 

4. Neighborhood Electric Vehicle 

5. Plug-In Electric Drive Vehicle 

6. Alternative Fuel Infrastructure 

7. Alternative Fuel Non-Road Equipment 

8. Emerging Technology 

C. Allocation of Credit 

1. General Basis for Allocations 

2. Electric Drive Vehicles 

a. Hybrid Electric Vehicles 

b. Plug-In Electric Drive Vehicles 

c. Fuel Cell Electric Vehicles 

d. Neighborhood Electric Vehicles 

e. Medium- and Heavy-Duty Electric 

Vehicles 

3. Investments 

a. Alternative Fuel Infrastructure 

b. Alternative Fuel Non-Road Equipment 

c. Emerging Technology 

4. Summary of Credit Allocations and 

Implementation Requirements 

D. Additional Program Modifications 

1. Timeliness of Exemption Request 

Submittals 

2. Program Credits and Exemption 

Requests 

3. Alternative Compliance 

4. Other Regulatory Revisions 

5. Other Issues 

IV. Compliance 

V. Regulatory Review 

A. Review Under Executive Order 12866 

B. Review Under the Regulatory Flexibility 

Act 

C. Review Under the Paperwork Reduction 

Act of 1995 

D. Review Under the National 

Environmental Policy Act 

E. Review Under Executive Order 12988 

F. Review Under Executive Order 13132 

G. Review Under the Unfunded Mandates 

Reform Act of 1995 

H. Review Under the Treasury and General 

Government Appropriations Act, 1999 

I. Review Under the Treasury and General 

Government Appropriations Act, 2001 

J. Review Under Executive Order 13211 

K. Congressional Notification 

I. Introduction and Background 

This notice of final rulemaking 

concludes a regulatory action mandated 

under section 133 of the Energy 

Independence and Security Act of 2007 

(EISA, Pub. L. 110–140). Section 133 

calls for DOE to allocate credits to 

covered State government and 

alternative fuel provider fleets that 

acquire various types of electric drive 

vehicles, and invest in emerging 

technologies related to those vehicles, 

qualified alternative fuel infrastructure, 

and qualified alternative fuel non-road 

equipment. These allocations impact the 

Alternative Fuel Transportation 

Program (AFTP or the Program) under 

10 CFR part 490. Under the Program, 

covered fleets have two avenues for 

compliance, Standard Compliance 

(initiated under the Energy Policy Act of 

1992 (EPAct 1992, Pub. L. 102–486)) 

and Alternative Compliance (an 

optional path provided in the Energy 

Policy Act of 2005 (EPAct 2005, Pub. L. 

109–58)). In conjunction with these 

allocations required under EISA, DOE is 

also finalizing modifications to 

Standard Compliance and Alternative 

Compliance under the Program. 

On October 31, 2011, DOE published 

the Notice of Proposed Rulemaking 

(NOPR) associated with this final rule 

(76 FR 67288). The 60-day comment 

period closed on December 30, 2011. 

DOE received eight sets of timely 

comments, as discussed in Parts II and 

III below. 

The NOPR included a detailed 

introduction and background 

discussion. To provide a full context for 

this final action, DOE has chosen to 

restate this background material, with 

appropriate revisions. 

Titles III through V of EPAct 1992, as 

amended at 42 U.S.C. 13201 et seq., 

focus on the replacement of petroleum 

transportation fuels with fuels such as 

alternative fuels and conventional/

replacement fuel blends. The provisions 

in EPAct 1992 encourage the purchase 

and use of replacement fuels, requiring 

that certain fleets acquire alternative 

fueled vehicles (AFVs) as part of their 

annual light duty vehicle (LDV) 

acquisitions. Section 301(3) of EPAct 

1992 (42 U.S.C. 13211(3)) defines the 

term ‘‘alternative fueled vehicle’’ as a 

‘‘dedicated [alternative fuel] or dual 

fueled vehicle,’’ and sections 501 (42 

U.S.C. 13251) and 507 (42 U.S.C. 13257) 

of the statute contain AFV-acquisition 

mandates for alternative fuel provider 

fleets and State fleets, respectively. 

These fleets may earn credits towards 

their light duty AFV-acquisition 

requirements in various ways, as 

provided by section 508 of EPAct 1992 

(42 U.S.C. 13258) and the Program 

regulations at 10 CFR part 490. 

Congress has amended the EPAct 

1992 fleet program for State and 

alternative fuel provider (SFP) fleets 

several times. The amendments have 

allowed covered fleets to earn 

additional credits for the use of 

biodiesel in blends of 20 percent 

biodiesel or greater and have provided 

an alternative compliance option. Note 

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1 42 U.S.C. 13252(a). 

2Under section 303 of EPAct 1992 (42 U.S.C. 

13212), Federal fleets were required to acquire 

AFVs starting in Fiscal Year (FY) 1993, increasing 

their acquisitions to 75 percent of all covered 

acquisitions in FY 1999 and thereafter. 

3Under section 505 of EPAct 1992 (42 U.S.C. 

13255), DOE obtains voluntary commitments from 

fuel suppliers to make replacement fuels available, 

from fleets to acquire AFVs and use alternative 

fuels, and from vehicle manufacturers to make 

AFVs and related services available to the public. 

These commitments comprise the Clean Cities 

Program, which works to bring together all 

necessary parties in given geographic areas to 

further the use of alternative fuels. 

4 DOE promulgated the AFTP regulations on 

March 14, 1996. 61 FR 10622. 5See 10 CFR 490.3. 

that upon the creation of the 

‘‘Alternative Compliance’’ option (see 

discussion in Part II.A), the original 

program based on AFV acquisitions and 

biodiesel use became known as 

‘‘Standard Compliance.’’ Each 

amendment has allowed the fleets to 

explore the viability of expanded use of 

AFVs and alternative fuels and thereby 

promote the use of replacement fuels. 

For the purposes of EPAct 1992 and 

related programs, the terms ‘‘alternative 

fuel’’ and ‘‘replacement fuel’’ both are 

widely used, but are not 

interchangeable. While a more specific 

definition of ‘‘alternative fuel’’ is set 

forth below, in general, alternative fuels 

include a variety of non-petroleum 

transportation fuels, as provided in 

section 301(2) of EPAct 1992. 

Replacement fuel, as defined in section 

301(14), refers to the alternative fuel 

portion of an alternative/petroleum fuel 

mix or a neat (i.e., 100%) alternative 

fuel. For example, B20 (a 20 percent 

blend of biodiesel with 80 percent 

petroleum diesel) is not an alternative 

fuel, but the 20 percent that is nonpetroleum is considered replacement 

fuel, while B100 (neat biodiesel) is both 

an alternative fuel and a replacement 

fuel. 

The primary focus of this final rule is 

section 133 of EISA, which amended 

section 508 of EPAct 1992. EISA section 

133 provides definitions and directs 

DOE to allocate credits under section 

508 for the acquisition by covered fleets 

of various types of electric drive 

vehicles, and for investments by 

covered fleets in qualified alternative 

fuel infrastructure, non-road equipment, 

and emerging technologies related to 

those electric drive vehicles. As 

discussed in more detail below, some of 

the electric drive vehicles within the 

definitions provided in section 133 

already meet the EPAct 1992 definition 

of an AFV and therefore already are 

counted towards a fleet’s light duty 

AFV-acquisition requirements or receive 

one credit under the AFTP, as 

appropriate, while others do not 

currently meet the AFV definition. In 

this action, DOE is finalizing credit 

allocations under the AFTP for the 

acquisition by covered fleets of those 

section 133-identified electric drive 

vehicles that do not already qualify as 

AFVs, and for several specific types of 

investments that covered fleets may 

make. These credit allocations would 

only impact SFP fleets operating under 

Standard Compliance. 

DOE also is finalizing today 

modifications to several aspects of the 

existing AFTP. These modifications will 

enhance the timeliness of exemption 

requests and revise the deadline for 

submitting Alternative Compliance 

waiver applications. Finally, DOE is 

making a number of clarifications and 

revisions to make the AFTP regulations 

consistent with amendments to EPAct 

1992. 

A. General 

The overall objectives of the fleet 

programs and other efforts under Titles 

III–V of EPAct 1992 are to expand the 

use of alternative fuels and AFVs within 

specified fleets and to replace petroleum 

with replacement fuels to the 

‘‘maximum extent practicable.’’ 1 The 

requirements of Titles III through V of 

EPAct 1992 focus on particular fleets, 

such as SFP fleets (which are the 

subjects of this rule) and Federal fleets,2

as well as voluntary activities, such as 

those implemented under DOE’s Clean 

Cities Program.3 The mandated 

programs for centrally-fueled fleets seek 

to catalyze maximum use of 

replacement fuels, and, in particular, 

alternative fuels. 

As indicated above, EPAct 1992 

establishes AFV-acquisition 

requirements for SFP fleets, which DOE 

codified as the AFTP at 10 CFR 490.1 

et seq.4 Titles III, IV, and V of EPAct 

1992 focus on requirements for certain 

centrally-fueled fleets to acquire AFVs. 

EPAct 1992 requires that SFP fleets 

acquire AFVs as minimum percentages 

of their annual LDV acquisitions (now 

90 percent for alternative fuel provider 

fleets and 75 percent for State fleets, in 

sections 501(a) and 507(o), 

respectively). The types of vehicles that 

satisfy the SFP fleet acquisition 

mandates are determined primarily by 

the definitions of ‘‘alternative fuel’’ and 

‘‘alternative fueled vehicle’’ in section 

301 of the statute. The threshold that 

determines whether an SFP fleet is 

subject to these respective acquisition 

mandates turns on the size and location 

criteria set forth in the section 301 

definitions of ‘‘fleet’’ and ‘‘covered 

person.’’ Generally, covered fleets under 

the AFTP are those State government 

entities and alternative fuel providers 

that own, operate, lease, or otherwise 

control 50 or more non-excluded LDVs, 

at least 20 of which are capable of being 

centrally fueled and are used primarily 

in a metropolitan statistical area (MSA) 

or consolidated MSA with a 1980 

Census population of more than 

250,000. 

Consistent with sections 501(a)(5) and 

507(i)(1) of EPAct 1992, the AFTP 

regulations provide a process through 

which State fleets and alternative fuel 

provider fleets, respectively, may 

request exemptions from the applicable 

AFV-acquisition requirements for a 

particular model year. All covered fleets 

may seek an exemption on the basis of 

lack of available AFVs or lack of 

available alternative fuels; State fleets 

also may seek an exemption on the basis 

of unreasonable financial hardship. 

Under section 507(o)(2) of EPAct 1992 

and its implementing regulation, 10 CFR 

490.203, States may submit a Light Duty 

Alternative Fueled Vehicle Plan to DOE 

for approval, which serves as an 

additional compliance option. An 

approved plan relieves those State fleets 

that are included in the plan from 

otherwise having to meet the AFVacquisition mandate on their own. 

While the plan must provide for 

voluntary acquisitions or conversions by 

State, local, and private fleet 

participants that, in the aggregate, equal 

or exceed the State’s AFV-acquisition 

requirement, there is no limit to the 

number of State, local, and private fleets 

that may participate in the plan. Any 

such plan must include, among other 

information, a certification from the 

appropriate State official and a written 

statement of commitment from each 

plan participant. 

Under the AFTP, covered fleets can 

earn, sell, or purchase AFV-acquisition 

credits. Section 508 of EPAct 1992 

enables fleets to earn bankable and 

tradable credits by acquiring AFVs prior 

to or in excess of requirements. DOE’s 

implementing regulations for the credit 

program appear at Subpart F of 10 CFR 

part 490. 

In practice, SFP fleets typically 

generate surplus credits in one of two 

ways—either by acquiring in a 

particular model year more of their 

covered LDVs as AFVs (such as 

acquiring 100 percent as AFVs instead 

of the required 75 or 90 percent), or by 

acquiring AFVs in ‘‘excluded vehicle’’ 

classes (such as employee take-home 

vehicles or law enforcement vehicles).5

As indicated, they are also able to 

generate credits by acquiring AFVs 

earlier than required. Fleets may use the 

surplus credits generated in these ways 

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15884 Federal Register / Vol. 79, No. 55 / Friday, March 21, 2014 / Rules and Regulations 

in future model years to cover shortfalls 

(banking), or they may sell or trade the 

credits to other covered fleets. For a 

fleet that has not met its AFVacquisition requirement in a particular 

model year, purchasing or trading for 

credits is a viable means by which to 

attain AFTP compliance inasmuch as 

the fleet can obtain the necessary 

number of credits and thereby 

compensate for its failure to acquire the 

requisite number of AFVs. 

The Energy Conservation 

Reauthorization Act of 1998 (Pub. L. 

105–388) included an amendment to the 

EPAct 1992 Title V fleet AFVacquisition requirement, allowing SFP 

fleets to use biodiesel blends (of at least 

20 percent biodiesel, B20) as an 

alternative means of complying with a 

portion of their AFV-acquisition 

requirements (limited to meeting 50 

percent of requirements, except for 

biodiesel fuel providers). In EPAct 2005, 

Congress again amended the Title V 

fleet program by providing an optional 

compliance path for covered fleets 

called ‘‘Alternative Compliance.’’ Under 

this option, an SFP fleet may apply for 

an Alternative Compliance waiver that, 

if granted by DOE, enables the fleet to 

implement various means of achieving 

petroleum reductions, including but not 

limited to the use of alternative fuels, 

the use of biodiesel blends without 

either the B20 threshold or the 50 

percent cap that apply under Standard 

Compliance, fuel economy 

improvements, the purchase of hybrid 

and other advanced technology (higher 

efficiency) vehicles, idle time 

reductions, and a reduction in vehicle 

miles traveled, in lieu of complying 

through AFV acquisitions and/or 

biodiesel use (under Standard 

Compliance). The addition of this 

Alternative Compliance option provided 

additional flexibility to fleets exploring 

the use of alternative fuels, as well as 

certain fuel efficiency technologies (e.g., 

hybrid vehicles, idle reduction) and trip 

reduction approaches. In fact, the 

Alternative Compliance option already 

allows fleets to explore many of the 

technologies that are the subject of this 

final rule. 

This final rule implements EISA 

section 133, establishing regulations to 

allocate to covered fleets operating 

under Standard Compliance credits 

under section 508 for the acquisition of 

various types of electric drive vehicles, 

and for investments in qualified 

alternative fuel infrastructure, non-road 

equipment, and emerging technologies 

related to specific vehicle types. In 

developing this rule, DOE has been 

guided by the fact that EISA section 133 

specifically amends section 508 of 

EPAct 1992 and requires DOE to revise 

the manner in which credits may be 

earned by covered fleets for purposes of 

achieving SFP fleet compliance. For this 

reason, DOE is assigning credits to those 

electric drive vehicles identified in 

section 133 that do not already qualify 

as AFVs based on a yardstick of 

petroleum displacement, rather than 

simply treating the vehicles as 

equivalent to AFVs. The section 133- 

identified vehicles that already qualify 

as AFVs already are counted towards a 

fleet’s light duty AFV-acquisition 

requirements or receive one credit, as 

appropriate. 

B. Current Status of Alternative Fuel 

Transportation Program 

Since Model Year (MY) 2000, the 

AFTP has been highly successful. 

Through MY 2011, covered SFP fleets 

acquired more than 201,000 AFVs. 

Annually, these fleets typically are 

acquiring between 10,000 and 14,000 

AFVs. 

SFP fleets unable to acquire AFVs or 

without alternative fuel available for 

AFVs may file for exemptions from the 

AFV-acquisition requirements, in 

accordance with the provisions of EPAct 

1992 sections 501(a)(5) and 507(i). Since 

MY 1997, DOE has received nearly 390 

exemption requests, granting 

exemptions and thereby relieving the 

requesting fleets from having to acquire 

more than 10,225 AFVs. 

Covered fleets have used and 

continue to use the credit program 

regularly. In the early stages of the 

AFTP, the primary users of credits were 

the fleets generating and banking them 

to provide additional compliance 

flexibility in future years. Since MY 

1997, covered SFP fleets have applied 

approximately 31,000 credits to meet 

AFV-acquisition requirements. 

Subsequently, while applying banked 

credits has remained a significant use of 

surplus credits, a number of fleets have 

been selling their credits, with 

approximately 1,000–1,500 credits now 

being exchanged each year, and more 

than 11,700 credits having been 

exchanged over the life of the Program. 

Overall, covered fleets currently hold 

approximately 70,000 banked credits, 

enough credits for perhaps four or more 

years of operation of the entire AFTP if 

covered fleets did not acquire any AFVs 

but instead traded and applied banked 

credits. 

C. Statutory Authority 

1. EISA 

EISA section 133 amended section 

508 of EPAct 1992 by providing 

definitions of specific electric drive 

vehicles. These electric drive vehicles 

include ‘‘fuel cell electric vehicles,’’ 

‘‘hybrid electric vehicles,’’ ‘‘medium- or 

heavy-duty electric vehicles,’’ 

‘‘neighborhood electric vehicles,’’ and 

‘‘plug-in electric drive vehicles.’’ (42 

U.S.C. 13258(a)) EISA section 133(3) 

further amended section 508 by 

directing DOE to allocate credit ‘‘in an 

amount to be determined by [DOE]’’ for 

the acquisition of these electric drive 

vehicles, as well as for ‘‘investment in 

qualified alternative fuel infrastructure 

or nonroad equipment, as determined 

by [DOE].’’ (42 U.S.C. 13258(b)(2)(A)) 

DOE is also directed to ‘‘allocate more 

than 1, but not to exceed 5, credits for 

investment in an emerging technology 

relating to any’’ of the enumerated 

electric drive vehicles ‘‘to encourage’’ 

petroleum and vehicle emissions 

reductions and technological 

advancement. (42 U.S.C. 13258(b)(2)(B)) 

Considered broadly, section 133 

requires that DOE allocate some level of 

credit for additional vehicle types and 

various investments, further expanding 

the list of options that covered fleets 

may use in their efforts to comply with 

EPAct 1992’s AFV-acquisition 

requirements. Importantly, section 133 

does not define, nor require DOE to 

define, the specified vehicle types as 

AFVs—it merely calls for DOE to 

allocate some level of credit to these 

vehicle types. 

DOE reiterates that EISA section 133 

revised section 508 of EPAct 1992, 

which pertains to SFP fleets. This final 

rule therefore addresses SFP fleets only, 

and not Federal fleets. 

The allocations that DOE is adopting 

today are intended to ensure 

consistency with the overall approach of 

the relevant provisions of EPAct 1992, 

which focus on the replacement of 

petroleum fuels through the use of 

replacement fuels to the maximum 

extent practicable. 

To understand the allocations, it is 

critical to consider the AFTP’s existing 

definitions. As discussed throughout 

this final rule, if a given vehicle type 

already qualifies as an AFV, it is already 

eligible for either one credit (when it is 

an excess or early acquisition) under the 

existing AFTP or, assuming it is an LDV, 

to be counted towards a fleet’s light 

duty AFV-acquisition requirements. If 

the vehicle is not an AFV, the focus 

shifts to whether the specific vehicle 

type is among the electric drive vehicles 

set forth in EISA section 133 and for 

which Congress directed DOE to 

determine a specific credit level. 

Similarly, only those investments that 

fit within the definitions provided in 

this final rule will receive credit under 

the AFTP. 

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6 76 FR at 67288. 

7 42 U.S.C. 13211(2). 

8See Public Law 106–554 App. D, Div. B, Title 

I, section 122, as codified at 42 U.S.C. 13211(2). 

9See 49 CFR 529.3 and 567.3. 

10 In addition to ‘‘automobile,’’ as discussed in 

the text above, section 490.2 of the Program 

regulations provides a definition of the term ‘‘motor 

vehicle.’’ See 10 CFR 490.2. 

2. Additional Revisions 

DOE is also finalizing today various 

AFTP modifications it proposed that are 

unrelated to EISA. These modifications, 

discussed more fully in Part III.D below, 

include establishing a timeframe for the 

submission of exemption requests and 

setting a single due date for Alternative 

Compliance waiver applications. Like 

the existing regulations in 10 CFR part 

490, the statutory basis for these 

modifications lies in Titles III–V of 

EPAct 1992, as amended. 

II. Public Comments 

On October 31, 2011, DOE published 

in the Federal Register its NOPR 

proposing credit allocations for 

acquisitions of certain electric drive 

vehicles and investments in certain 

infrastructure and technologies, as well 

as making several other modifications to 

the Alternative Fuel Transportation 

Program. The NOPR stated that DOE 

would consider public comments 

received on or before December 30, 

2011.6 DOE received timely written 

comments from eight organizations, 

including the American Public Gas 

Association (APGA), Eaton Corporation, 

the Edison Electric Institute (EEI), the 

Electric Drive Transportation 

Association (EDTA), Florida Power & 

Light Co. (FP&L), Natural Gas Vehicles 

for America (NGV America), the 

National Electrical Manufacturers 

Association (NEMA), and Securing 

America’s Future Energy (SAFE). All of 

these comments are available in the 

public docket for this rulemaking. The 

specific issues raised by the commenters 

are addressed in Part III below. 

III. Discussion of the Final Rule 

In this section of the preamble, DOE 

discusses the AFTP definitions that are 

key to DOE’s approach to the allocation 

of credits under EISA section 133, as 

well as the existing AFTP definitions 

that DOE is amending through this 

action. 

A. Existing Definitions 

1. Alternative Fuel 

The definition of ‘‘alternative fuel’’ for 

purposes of EPAct 1992 and its fleet 

programs is provided in section 301(2),7

and the corresponding AFTP definition 

appears at 10 CFR 490.2. DOE proposed 

to add to the regulatory definition the 

phrase ‘‘including liquid fuels 

domestically produced from natural 

gas,’’ which Congress added to the 

section 301(2) definition in 2000.8 DOE 

did not receive any comments on this 

revision, and is finalizing it as 

proposed. 

2. Alternative Fueled Vehicle 

As provided in section 301(3) of 

EPAct 1992, an alternative fueled 

vehicle is ‘‘a dedicated vehicle or a dual 

fueled vehicle.’’ Thus, for a vehicle to be 

counted towards a fleet’s AFVacquisition requirements or receive full 

(i.e., one) credit under the AFTP, as 

appropriate, it must either be a 

‘‘dedicated vehicle,’’ which is a vehicle 

that operates solely on alternative fuel, 

or a ‘‘dual fueled vehicle,’’ which is a 

vehicle that has some capability for 

switching back and forth from 

alternative fuel to conventional fuel 

(such as a bi-fuel natural gas/gasoline 

vehicle) or otherwise can operate on a 

blend of alternative and conventional 

fuel (such as a flexible fuel vehicle). 

DOE pointed out in the NOPR that 

Congress has never amended the 

statutory definition of an AFV as it 

applies to SFP fleets, though Congress 

has, through section 2862 of the 

National Defense Authorization Act for 

Fiscal Year 2008 (Pub. L. 110–181), 

amended the definition as it applies to 

Federal fleets. 

The corresponding AFTP definition of 

the term ‘‘alternative fueled vehicle’’ 

appears at 10 CFR 490.2. When DOE 

established this definition, it included 

language in the regulatory text clarifying 

that flexible fuel vehicles (FFVs) are 

encompassed within the definition, and 

also provided a separate definition of 

the term ‘‘flexible fuel vehicle.’’ In the 

NOPR, DOE set forth that FFVs qualify 

as ‘‘dual fueled automobiles’’ under the 

Energy Policy and Conservation Act 

(EPCA) definition of that term (codified 

at 49 U.S.C. 32901(a)(9)), and thus also 

as AFVs. DOE therefore proposed to 

streamline the regulatory definition of 

an AFV by deleting the parenthetical 

reference to FFVs. DOE also proposed to 

delete the AFTP definition of ‘‘flexible 

fuel vehicle’’ and subsection (3) in the 

AFTP definition of ‘‘dual fueled 

vehicle.’’ DOE did not receive any 

comments on these revisions, and is 

finalizing them as proposed. 

3. Automobile 

DOE proposed to amend the AFTP 

definition of ‘‘automobile’’ by making it 

consistent with the EPCA definition of 

the term, which Congress revised in 

section 103(a) of EISA. Specifically, 

DOE proposed to define an 

‘‘automobile’’ for purposes of the AFTP 

as ‘‘a 4-wheeled vehicle that is 

propelled by conventional fuel, or by 

alternative fuel, manufactured primarily 

for use on public streets, roads, and 

highways and having a gross vehicle 

weight rating of less than 10,000 

pounds,’’ with explicit exceptions for 

vehicles operated only on a rail line, 

certain vehicles manufactured in 

different stages by two or more original 

equipment manufacturers, and work 

trucks. Importantly, DOE emphasized 

that while the proposed definition in 10 

CFR 490.2 would contain an express 

gross vehicle weight rating cutoff of 

‘‘less than 10,000 pounds,’’ a covered 

fleet’s light duty AFV-acquisition 

requirement in a particular model year 

would continue to hinge on the total 

number of ‘‘light duty motor vehicles’’ 

the fleet acquired during that model 

year. DOE further emphasized that the 

regulatory definition of the term ‘‘light 

duty motor vehicle’’ would be 

unchanged, i.e., an LDV would continue 

to be a light duty truck or light duty 

vehicle with a gross vehicle weight 

rating of 8,500 pounds or less, in 

accordance with section 301(11) of 

EPAct 1992 (42 U.S.C. 13211(11)). 

Consistent with the revised EPCA 

definition of ‘‘automobile,’’ DOE also 

proposed to add to the AFTP definition 

of ‘‘automobile’’ a reference to, and a 

definition of, the term ‘‘work truck.’’ 

DOE did not receive any comments on 

the definitions of ‘‘automobile’’ and 

‘‘work truck,’’ and is finalizing them as 

proposed. In the interest of clarity, DOE 

also point outs today that it construes 

‘‘intermediate original equipment 

manufacturer’’ and ‘‘final-stage original 

equipment manufacturer,’’ as those 

terms are used in the second exception 

to the definition of an ‘‘automobile,’’ in 

accordance with the meanings given 

those terms by the National Highway 

Traffic Safety Administration 

(NHTSA).9

4. Dedicated Vehicle 

The AFTP regulations at 10 CFR 490.2 

currently define the term ‘‘dedicated 

vehicle’’ to mean: 

(1) An automobile that operates 

solely on alternative fuel; or 

(2) A motor vehicle, other than an 

automobile, that operates solely on 

alternative fuel.10

For example, a battery electric vehicle 

(EV) is considered a dedicated vehicle 

and hence an AFV, as defined above, 

because electricity, the only fuel on 

which the vehicle operates, is an 

‘‘alternative fuel.’’ A hybrid electric 

vehicle (HEV) with an engine that 

operates solely on alternative fuel (e.g., 

compressed natural gas (CNG)) also 

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11 49 CFR 538.5 and 538.6. The test cycles consist 

of 7.5 miles of urban driving and 10.2 miles of 

highway driving. 

12 DOE’s understanding is that ‘‘blended’’ range 

PHEVs are typically designed in a manner to 

maximize overall battery management. As such, 

‘‘blended’’ range PHEVs may be designed (though 

not always) with some level of all-electric range, but 

that all-electric operation may not necessarily apply 

to all load or speed conditions (including all 

conditions required under the EPA urban and 

highway test cycles). For example, even for a 

‘‘blended’’ range PHEV designed with some level of 

all-electric range, operation purely on electricity 

may only be available up to a certain vehicle speed 

or acceleration level. 

13See http://www.sae.org, specifically SAE J2841, 

‘‘Utility Factor Definitions for Plug-In Hybrid 

Electric Vehicles Using Travel Survey Data’’ (Sept. 

21, 2010). 

14For MY 2014 and later PHEVs, DOE encourages 

covered fleets to review the EPA/DOT (i.e., 

Department of Transportation) Fuel Economy and 

Environment label (a/k/a, the fuel economy window 

sticker, sometimes known as the Monroney label) 

that is posted on all new LDVs. See 76 FR 39478 

(July 6, 2011). If the label contains the statement, 

‘‘[t]his is a dual fueled automobile,’’ then the PHEV 

is a dual fueled vehicle and hence an AFV under 

the AFTP. 

would be considered a dedicated 

vehicle under the AFTP, and thus an 

AFV. 

To address the future possibility that 

certain vehicles may operate exclusively 

on more than one alternative fuel, DOE 

proposed to amend the regulatory 

definition of ‘‘dedicated vehicle’’ so that 

it states ‘‘operates solely on one or more 

alternative fuels.’’ DOE, which did not 

receive any comments on this issue, is 

finalizing the revision as proposed. 

5. Dual Fueled Vehicle 

The AFTP regulations at 10 CFR 490.2 

currently define the term ‘‘dual fueled 

vehicle’’ to mean: 

(1) An automobile that meets the 

criteria for a dual fueled automobile, as 

that term is defined in section 

513(h)(1)(C) of the Motor Vehicle 

Information and Cost Savings Act, 49 

U.S.C. 32901(a)(8); or 

(2) A motor vehicle, other than an 

automobile, that is capable of operating 

on alternative fuel and on gasoline or 

diesel; or 

(3) A flexible fuel vehicle. 

DOE proposed to amend subsection 

(1) of this definition so that it refers to 

the correct statutory citation for the dual 

fueled automobile definition, 49 U.S.C. 

32901(a)(9). DOE did not receive any 

comments on this revision, and is 

finalizing it as proposed. As discussed 

in Part III.A.2 above, DOE also 

proposed, and is finalizing the deletion 

of subsection (3) on the grounds that it 

is no longer necessary. 

In the NOPR, DOE explained that it 

has always interpreted the definition of 

dual fueled vehicle in the context of 

NHTSA’s minimum driving range 

criteria. Under those criteria, for a 

passenger automobile to be considered a 

dual fueled automobile, it must be able 

to drive at least 200 miles when 

operating on the alternative fuel; for a 

dual fueled electric passenger 

automobile, the automobile must be able 

to operate on a full U.S. Environmental 

Protection Agency (EPA) urban test 

cycle and a full EPA highway test cycle 

on electricity alone, which means it 

must meet all speed and acceleration 

requirements over a total of 17.7 miles, 

albeit with charging allowed prior to 

each of the two test cycles.11 DOE 

stressed that only motor vehicles that 

meet these minimum driving range 

criteria qualify as dual fueled vehicles 

and hence are considered AFVs under 

the AFTP. 

In the context of plug-in hybrid 

electric vehicles (PHEVs), DOE added 

that to the extent that questions arose as 

to whether a PHEV is a dual fueled 

vehicle, DOE would look to NHTSA, 

meaning that if NHTSA considers a 

particular automobile to be dual fueled 

under EPCA (i.e., for corporate average 

fuel economy (CAFE) purposes), then 

DOE would treat the vehicle as a dual 

fueled vehicle and hence an AFV under 

the AFTP. 

EEI and SAFE took issue with DOE’s 

reliance on the NHTSA minimum 

driving range criteria as applied to 

PHEVs. EEI essentially contended that 

the criteria are outdated and biased 

against ‘‘blended’’ range PHEVs that EEI 

claimed manufacturers plan to offer.12

EEI argued that like PHEVs that have 

been optimized for all-electric range, 

PHEVs with blended ranges offer 

considerable petroleum reduction 

benefits. EEI requested that DOE assess 

whether a particular PHEV is a dual 

fueled vehicle based on the Society of 

Automotive Engineers’ (SAE) utility 

factor approach, SAE J2841,13 with a 

PHEV having a utility factor at or above 

0.2 qualifying, and a PHEV with a utility 

factor below 0.2 not qualifying as a dual 

fueled vehicle. SAFE claimed that DOE 

is not obligated to apply the minimum 

driving range criteria, either to PHEVs 

or to dual fueled vehicles more 

generally, and urged DOE to adopt a 

dual fueled vehicle definition that does 

not have a minimum all-electric range. 

While initially supporting DOE’s use of 

the NHTSA minimum driving range 

criteria (indicating its concurrence with 

one credit for PHEVs that can complete 

the urban and highway cycles on 

electricity alone), EDTA indicated that 

the existing NHTSA methodology is 

problematic for blended operation 

PHEVs and recommended that the 

methodology be updated. 

DOE disagrees with these comments. 

Congress defined the term ‘‘dual fueled 

vehicle’’ in section 301(8) of EPAct 1992 

(42 U.S.C. 13211(8)), and that definition 

incorporates the EPCA definition of a 

dual fueled automobile, which 

definition, in turn, expressly includes 

the minimum driving range requirement 

for dual fueled passenger automobiles 

(49 U.S.C. 32901(a)(9)(D)). DOE cannot 

ignore, and does not have the authority 

to revise, the criteria prescribed by 

NHTSA under 49 U.S.C. section 

32901(c). 

Moreover, EPA determines whether a 

particular vehicle meets the NHTSA 

minimum driving range requirement 

applicable to dual fueled electric 

automobiles. DOE relies, and must 

continue to rely, on EPA and NHTSA 

for this key information. Once it is 

determined that a particular PHEV 

meets the driving range requirement 

and, thus, qualifies as a dual fueled 

electric automobile, DOE will treat the 

vehicle as an AFV and either count it 

towards the fleet’s AFV-acquisition 

requirements or accord it one credit 

(when it is an excess or early 

acquisition). Conversely, a PHEV that 

does not meet the minimum driving 

range requirement will be treated by 

DOE as a non-AFV PHEV.14

6. Electric Motor Vehicle and ElectricHybrid Vehicle 

DOE proposed to remove the ‘‘electric 

motor vehicle’’ and ‘‘electric-hybrid 

vehicle’’ definitions from 10 CFR 490.2, 

and to delete section 490.307 from the 

AFTP regulations on the grounds that 

the electric utility option contained in 

that section was time limited and the 

period for the option had long since 

passed. DOE explained in the NOPR 

that the definitions would be extraneous 

in the absence of the electric utility 

option. DOE invited public comments 

on these proposed deletions, but 

received none. Consequently, DOE is 

finalizing the amendments as proposed. 

Because the deleted definitions of 

‘‘electric motor vehicle’’ and ‘‘electrichybrid vehicle’’ were the sole reasons 

for listing title VI of EPAct 1992 in 

section 490.1(a) of the AFTP 

regulations, DOE also is revising that 

regulatory provision by deleting the 

reference to title VI. 

7. Section 133-Identified Vehicles That 

Already Qualify as AFVs 

Of the electric drive vehicles 

identified in EISA section 133, DOE 

notes that several types of vehicles 

within those definitions already qualify 

as AFVs and, for that reason, already are 

counted towards a fleet’s light duty 

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15 DOE notes that the AFTP definition of an FCEV 

is not identical to the definition of ‘‘fuel cell 

vehicle’’ found in EPA’s light duty vehicle 

greenhouse gas emission standards under the Clean 

Air Act. See 40 CFR 86.1803–01; 75 FR 25324, 

25684 (May 7, 2010). However, this final rule is 

consistent with EISA section 133. 

16See generally Internal Revenue Service, Notice 

2006–9—Credit for New Qualified Alternative 

Motor Vehicles (Advanced Lean Burn Technology 

Motor Vehicles and Qualified Hybrid Motor 

Vehicles), available at http://www.irs.gov/irb/2006- 

06_IRB/ar11.html. 

17See generally Internal Revenue Service, Notice 

2007–23—Credit for New Qualified Heavy-Duty 

Hybrid Motor Vehicles, available at http://

www.irs.gov/irb/2007-23_IRB/ar08.html. 

18 DOE notes that the AFTP definition of an HEV 

is not identical to the HEV definition found in 

EPA’s light duty vehicle greenhouse gas emission 

standards under the Clean Air Act. See 40 CFR 

86.1803–01; 75 FR 25324, 25684 (May 7, 2010). 

However, this final rule is consistent with EISA 

section 133. 

AFV-acquisition requirements or receive 

one credit under the AFTP, as 

appropriate. These include certain 

HEVs, PHEVs, and fuel cell electric 

vehicles (FCEVs), light duty battery 

electric vehicles, and medium- or 

heavy-duty battery electric vehicles. 

An HEV or PHEV equipped with an 

engine that is capable of operating on a 

liquid or gaseous alternative fuel (e.g., 

E85 or CNG) is either a dual fueled 

vehicle (if the engine can operate on the 

alternative fuel and on gasoline or 

diesel) or a dedicated vehicle (if the 

engine operates solely on the alternative 

fuel), and, consequently, already an 

AFV. Similarly, a PHEV with a 

conventional gasoline (or other 

petroleum-fueled) engine is a dual 

fueled vehicle and therefore already an 

AFV under the AFTP if it qualifies as a 

dual fueled electric automobile under 

the applicable NHTSA criteria. 

FCEVs, as discussed more fully in 

Parts III.B.1 and III.C.2.c below, use a 

‘‘fuel cell,’’ which typically is fueled by 

hydrogen, an alternative fuel, but which 

can also be fueled by a petroleum fuel 

(e.g., gasoline or diesel). An FCEV that 

operates on alternative fuel is either a 

dedicated vehicle (if the FCEV’s fuel 

cell is fueled solely by an alternative 

fuel such as hydrogen) or a dual fueled 

vehicle (if the FCEV’s fuel cell can be 

fueled by an alternative fuel, such as 

hydrogen, and by gasoline or diesel fuel) 

and, consequently, already an AFV 

under the AFTP. 

Battery EVs (e.g., the Nissan Leaf, 

Tesla Model S, Ford Focus Electric, 

Honda Fit EV, and Mitsubishi i-MiEV) 

are already considered AFVs under 

section 301 of EPAct 1992 by virtue of 

electricity’s inclusion within the 

definition of alternative fuel. Hence, 

when acquired by covered fleets, they, 

too, are already eligible to be counted as 

AFV acquisitions under the AFTP. 

Finally, medium- or heavy-duty battery 

electric vehicles (e.g., the Smith Electric 

Newton) likewise are entitled to one 

credit because they, too, already qualify 

as AFVs (although to receive credit for 

the medium- or heavy-duty AFV, the 

covered fleet first must meet its light 

duty AFV-acquisition requirement, as 

discussed in Part III.C.2.e below). 

In sum, the following already qualify 

as AFVs: (1) HEVs and PHEVs with an 

engine that operates solely on 

alternative fuel or one that can operate 

on alternative fuel and on gasoline or 

diesel; (2) PHEVs that meet the NHTSA 

minimum driving range criteria and 

thus qualify as dual fueled electric 

automobiles; (3) FCEVs that operate 

solely on alternative fuel or on 

alternative fuel and on gasoline or 

diesel; (4) light duty battery electric 

vehicles; and (5) medium- or heavy-duty 

battery electric vehicles. As a result, 

these vehicles are already entitled to be 

counted towards a fleet’s light duty 

AFV-acquisition requirements 

(assuming they are LDVs) or to receive 

one credit under the AFTP, although in 

the case of medium- or heavy-duty 

AFVs, they are not entitled to credit 

until the fleet has met its light duty 

AFV-acquisition requirement. 

B. New Definitions: EISA Section 133 

Vehicles and Investments 

As described in the following 

paragraphs, DOE is finalizing 

definitions of various terms for purposes 

of Subpart F of the AFTP regulations, in 

accordance with the definitions 

provided in section 508(a) of EPAct 

1992, as amended by EISA section 133. 

1. Fuel Cell Electric Vehicle 

A ‘‘fuel cell electric vehicle’’ is 

defined for purposes of section 508 of 

EPAct 1992, as amended, as an ‘‘on-road 

or non-road vehicle that uses a fuel cell 

(as defined in section 803 of the Spark 

M. Matsunaga Hydrogen Act of 2005 (42 

U.S.C. 16152)).’’ Section 803 of the 

Hydrogen Act of 2005 defines a ‘‘fuel 

cell’’ as a ‘‘device that directly converts 

the chemical energy of a fuel, which is 

supplied from an external source, and 

an oxidant into electricity by 

electrochemical processes occurring at 

separate electrodes in the device.’’ 

Typically, FCEVs are actually fuel cell 

hybrid vehicles that include some form 

of electric storage medium (such as 

batteries) to allow for better matching of 

vehicle generation capabilities to 

performance demand. Most FCEVs 

currently under development are fueled 

by hydrogen, either in compressed or 

liquefied form, but some that have been 

developed use onboard reformers to 

allow fueling with other fuels (e.g., 

petroleum fuels or other alternative 

fuels like methanol or natural gas). 

DOE proposed adopting in Subpart F 

of the AFTP regulations the statutory 

definition of ‘‘fuel cell electric vehicle,’’ 

albeit with the substitution of ‘‘motor 

vehicle’’ in place of the term ‘‘on-road.’’ 

DOE did not receive any comments on 

the proposed FCEV definition, and is 

finalizing it in 10 CFR 490.501.15

2. Hybrid Electric Vehicle 

EISA section 133 defines a ‘‘hybrid 

electric vehicle’’ for purposes of section 

508 of EPAct 1992, as amended, as a 

‘‘new qualified hybrid motor vehicle (as 

defined in section 30B(d)(3) of the 

Internal Revenue Code of 1986).’’ 

Section 30B(d)(3) of the Internal 

Revenue Code (26 U.S.C. 30B(d)(3)) 

defines the term ‘‘new qualified hybrid 

motor vehicle’’ and sets specific 

conditions for purposes of meeting this 

definition, including that a motor 

vehicle be one that ‘‘draws propulsion 

energy from onboard sources of stored 

energy which are both an internal 

combustion or heat engine using 

consumable fuel and a rechargeable 

energy storage system’’ and has a 

maximum available power of a set 

minimum amount. In the case of a light 

duty vehicle, the vehicle also must be 

one that ‘‘has received a certificate of 

conformity under the Clean Air Act and 

meets or exceeds the [applicable] 

equivalent qualifying California low 

emission vehicle standard under section 

243(e)(2) of the Clean Air Act’’ as well 

as ‘‘the [applicable] emission standard 

[established by EPA] under section 

202(i) of the Clean Air Act,’’ among 

other conditions.16 In the case of a 

vehicle with a gross vehicle weight 

rating of more than 8,500 pounds, the 

vehicle also must be one that ‘‘has an 

internal combustion engine which has 

received a certificate of conformity 

under the Clean Air Act as meeting the 

emission standards set [by EPA for] 

diesel heavy duty engines or ottocycle 

heavy duty engines,’’ among other 

conditions.17

DOE proposed adopting in Subpart F 

of the AFTP regulations the EISA 

section 133 definition of ‘‘hybrid 

electric vehicle.’’ DOE did not receive 

any comments on the proposed HEV 

definition, and is finalizing it in 10 CFR 

490.501.18

3. Medium- or Heavy-Duty Electric 

Vehicle 

EISA section 133 defines a ‘‘mediumor heavy-duty electric vehicle’’ for 

purposes of section 508 of EPAct 1992, 

as amended, as ‘‘an electric, hybrid 

electric, or plug-in hybrid electric 

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19As discussed in Part III.B.8 below, DOE is 

adding medium- or heavy-duty FCEVs to the 

definition of ‘‘emerging technology.’’ 

20 DOE reiterates that it expects all PHEVs to have 

a battery capacity of at least four kWh, because that 

is the minimum battery capacity needed for a 

vehicle to qualify for the Federal tax credit for new 

qualified plug-in electric drive motor vehicles. See 

26 U.S.C. 30D(d)(1)(F)(i). 

vehicle with a gross vehicle weight of 

more than 8,501 pounds.’’ To be 

consistent with section 301(11) of EPAct 

1992, which defines a light duty motor 

vehicle as a vehicle weighing 8,500 

pounds or less, DOE proposed to define 

a medium- or heavy-duty electric 

vehicle in 10 CFR 490.501 as ‘‘an 

electric, hybrid electric, or plug-in 

hybrid electric vehicle with a gross 

vehicle weight rating of more than 8,500 

pounds.’’ 

EEI recommended that the proposed 

definition be broadened to include 

medium- and heavy-duty battery EVs 

and FCEVs, while EDTA requested that 

DOE clarify that the proposed definition 

encompasses medium- and heavy-duty 

battery EVs, HEVs, PHEVs, and FCEVs. 

Except for FCEVs, DOE’s proposed 

definition of ‘‘medium or heavy-duty 

electric vehicle’’ expressly included all 

of the medium- and heavy-duty vehicles 

mentioned by these commenters, and 

DOE maintains that no revision or 

additional clarification is needed. With 

respect to ‘‘medium- or heavy-duty 

FCEVs,’’ although DOE proposed to 

define them separately, it also proposed 

to treat these vehicles in the same 

manner as ‘‘medium- or heavy-duty 

electric vehicles’’—1⁄2 credit for those 

that are not AFVs. DOE is finalizing the 

definitions as proposed.19

4. Neighborhood Electric Vehicle 

EISA section 133 defines a 

‘‘neighborhood electric vehicle’’ (NEV) 

for purposes of section 508 of EPAct 

1992, as amended, as ‘‘a 4-wheeled onroad or nonroad vehicle that—(A) has a 

top attainable speed in 1 mile of more 

than 20 mph and not more than 25 mph 

on a paved level surface; and (B) is 

propelled by an electric motor and [an] 

on-board, rechargeable energy storage 

system that is rechargeable using an offboard source of electricity.’’ In the 

NOPR, DOE proposed to adopt this 

statutory definition in Subpart F of the 

AFTP regulations. 

EEI suggested that the maximum 

attainable speed of 25 mph be increased, 

and that the proposed definition be 

revised further to enable vehicles with 

more than 4 wheels to qualify. DOE 

notes that it does not have the authority 

to modify the definitional criteria 

Congress established. Consequently, 

DOE is finalizing the proposed NEV 

definition in 10 CFR 490.501. 

5. Plug-In Electric Drive Vehicle 

EISA section 133 defines a ‘‘plug-in 

electric drive vehicle’’ for purposes of 

section 508 of EPAct 1992, as amended, 

as ‘‘a vehicle that — (A) draws motive 

power from a battery with a capacity of 

at least 4 kilowatt-hours; (B) can be 

recharged from an external source of 

electricity for motive power; and (C) is 

a light-, medium-, or heavy-duty motor 

vehicle or nonroad vehicle (as those 

terms are defined in section 216 of the 

Clean Air Act (42 U.S.C. 7550)).’’ 

Section 216 of the Clean Air Act defines 

the term ‘‘motor vehicle’’ to mean ‘‘any 

self-propelled vehicle designed for 

transporting persons or property on a 

street or highway,’’ and it defines 

‘‘nonroad vehicle’’ as a vehicle that is 

‘‘powered by a nonroad engine and that 

is not a motor vehicle or a vehicle used 

solely for competition.’’ DOE proposed 

to adopt in Subpart F of the AFTP 

regulations the section 133 definition of 

‘‘plug-in electric drive vehicle.’’ 

DOE explained in the NOPR that there 

are two primary forms of plug-in electric 

drive vehicles: (1) Battery EVs; and (2) 

PHEVs, assuming they have a minimum 

battery capacity of four kilowatt-hours 

(kWh).20 For the purposes of this 

rulemaking, PHEVs are considered 

similar in many cases to today’s 

available HEVs, but PHEVs include 

greater electric storage capacity (and 

therefore use either a different type of 

battery or simply more/larger batteries 

than HEVs), possess the capability to 

recharge their electric storage system by 

‘‘plugging in’’ to an off-board source, 

and typically have the capability for 

some electric-only operation. As 

indicated above, DOE considers a PHEV 

that is equipped with a conventional 

gasoline (or other petroleum-fueled) 

engine to be a dual fueled vehicle, and 

thus also an AFV, if it is able to 

complete the EPA urban and highway 

test cycles on electricity alone. 

SAFE urged DOE to eliminate from 

the plug-in electric drive vehicle 

definition the four kWh minimum 

battery capacity, contending that the 

requirement is inappropriate because 

plug-in vehicles with a lower battery 

capacity could displace considerably 

more petroleum than FFVs operating on 

gasoline. DOE emphasizes in response 

that it is bound by the EISA section 133 

definition of ‘‘plug-in electric drive 

vehicle,’’ and does not have the 

authority to modify the criteria set by 

Congress. If a PHEV with a battery 

capacity below the four kWh minimum 

in fact becomes available, DOE notes 

that although such a vehicle would not 

qualify as a plug-in electric drive 

vehicle and, as a result, would not be 

eligible for the 1⁄2 credit that DOE is 

allocating today to non-AFV plug-in 

electric drive vehicles (see Part III.C.2.b 

below), a covered fleet acquiring such a 

vehicle would still receive 1⁄2 credit 

because the vehicle would qualify as a 

non-AFV hybrid electric vehicle (see 

Part III.C.2.a below). Furthermore, 

notwithstanding the vehicle’s 

insufficient battery capacity, if it is 

equipped with a liquid or gaseous 

alternative fuel-capable engine, the 

vehicle, as an AFV, would entitle the 

acquiring fleet either to count the 

vehicle as an AFV acquisition or earn 

one credit (if it is an excess or early AFV 

acquisition). 

6. Alternative Fuel Infrastructure 

EISA section 133 provides no 

definition of the term ‘‘alternative fuel 

infrastructure,’’ merely indicating that 

DOE should allocate credit for 

‘‘investment in qualified alternative fuel 

infrastructure . . ., as determined by the 

Secretary.’’ DOE proposed to base the 

Subpart F definition of this term on the 

Internal Revenue Code definition of 

‘‘qualified clean-fuel vehicle refueling 

property’’ (26 U.S.C. 179A(d)), such that 

‘‘alternative fuel infrastructure’’ would 

mean one or more alterative fueling 

stations or one or more charging or 

battery exchange stations for EISA 

section 133-specified electric drive 

vehicles. 

Two organizations, APGA and NGV 

America, commented on the proposed 

definition of ‘‘alternative fuel 

infrastructure.’’ Both expressed their 

support for it. DOE is finalizing the 

definition in 10 CFR 490.501, albeit 

with one minor revision to ensure that 

stations for NEVs are encompassed 

within the definition. 

7. Alternative Fuel Non-Road 

Equipment 

EISA section 133 also provides no 

definition of the term ‘‘alternative fuel 

nonroad equipment.’’ Congress simply 

instructed DOE to allocate credit for 

‘‘investment in qualified alternative fuel 

. . . nonroad equipment, as determined 

by the Secretary.’’ DOE proposed to 

consider as eligible for credit only nonroad equipment that is mobile, such as 

mobile cargo and material handling 

equipment (e.g., forklifts) and mobile 

farm, landscaping, or construction 

equipment (e.g., riding lawnmowers, 

tractors, bulldozers, backhoes, front-end 

loaders, rollers/compactors). Consistent 

with the Program’s focus on vehicle 

acquisitions, DOE explained that 

stationary non-road equipment would 

not qualify. 

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21 42 U.S.C. 13252(b). 

DOE received three comments on the 

proposed definition of ‘‘alternative fuel 

non-road equipment.’’ All three 

commenters (APGA, FP&L, and NGV 

America) supported the proposed 

definition. DOE is finalizing it in 10 

CFR 490.501. As explained in Part 

III.C.3.b below, a fleet seeking credit for 

its investment in such equipment will 

have to certify that the equipment is 

being operated on alternative fuel, 

within the constraints of best practices 

or seasonal fuel availability. In addition, 

DOE clarifies today that to be 

considered mobile, the non-road 

equipment must be self-propelled. Thus, 

a generator that is portable by virtue of 

its placement on a towing skid or trailer 

does not qualify as alternative fuel nonroad equipment notwithstanding its 

operation on biodiesel. Similarly, a 

walk-behind lawnmower, even though 

powered by alternative fuel, is not 

alternative fuel non-road equipment. 

8. Emerging Technology 

As with ‘‘alternative fuel 

infrastructure’’ and ‘‘alternative fuel 

nonroad equipment,’’ EISA section 133 

does not provide a definition of the term 

‘‘emerging technology,’’ although the 

statute indicates that such technology 

must ‘‘relat[e] to’’ any of the electric 

drive vehicles that Congress described 

earlier in section 133. Based on its 

experience in deploying advanced 

vehicle technologies, DOE proposed to 

interpret ‘‘emerging technology’’ to 

mean pre-production or precommercially-available vehicles of the 

types defined and described in section 

133. DOE expressed its belief that once 

these vehicle technologies reach the 

point of being mass produced or 

commercially available and thus are 

beyond the stage of demonstration or 

initial data collection, the provision of 

any investment credit under section 508 

of EPAct 1992, as amended, would be 

inappropriate inasmuch as acquisition 

credit would then be warranted. 

NGV America supported the proposed 

focus on pre-production or precommercially available vehicles, but 

argued for an expansion of the 

definition’s coverage to include preproduction or pre-commercially 

available natural gas vehicles, thereby 

enabling emerging technology 

investment credit for these vehicles as 

well. DOE disagrees with such an 

expansion, and reiterates that Congress 

made clear in EISA section 133 that 

emerging technology must ‘‘relat[e] to’’ 

one of the enumerated electric drive 

vehicles. DOE does not have the 

statutory authority to expand the 

definition’s reach to any other vehicle 

types. 

EEI contended that the term 

‘‘emerging technology’’ should not be 

restricted to pre-production or precommercially available vehicles, and 

should encompass production or 

commercially available versions of the 

electric drive vehicles. EEI also stated 

that NEVs do not further the electric 

drive vehicle industry’s technological 

advancement, and for that reason 

should not be among the vehicle types 

identified as emerging technology. DOE 

disagrees with both of these positions. 

Regarding production (including limited 

production) or commercially available 

versions of the electric drive vehicles, 

DOE reiterates that credit for their 

acquisition will be provided under the 

vehicle-specific credit provisions of this 

final rule (Part III.C.2 below). EEI’s 

suggested approach would effectively 

provide double credit for commercially 

available vehicles—credit for their 

acquisition as well as investment credit. 

DOE believes this would be excessive, 

and notes that it proposed, and today is 

finalizing, that a covered fleet cannot 

earn duplicate credits for multiple 

reasons stemming from the same vehicle 

acquisition. Instead, the fleet must 

choose whether to seek credit at the 

applicable level for the vehicle’s 

acquisition or under the emerging 

technology investment crediting 

provisions. With respect to NEVs, 

because they are one of the vehicles that 

Congress described in section 133, DOE 

maintains that they, too, must be 

identified in the definition. 

DOE is making one substantive 

change to the definition of ‘‘emerging 

technology’’ that it proposed. DOE is 

adding the term ‘‘medium- or heavyduty fuel cell electric vehicle’’ to the 

vehicles identified in the definition, to 

make clear that a pre-production or precommercially available version of a 

medium- or heavy-duty FCEV, like the 

other listed vehicles (i.e., HEVs, 

medium- or heavy-duty electric 

vehicles, NEVs, plug-in electric drive 

vehicles, and light duty FCEVs), is 

eligible for emerging technology 

investment credit. 

C. Allocation of Credit 

1. General Basis for Allocations 

Because the AFTP and Title V of 

EPAct 1992 are designed to encourage 

the replacement of petroleum fuels with 

non-petroleum fuels through covered 

fleets’ acquisition and use of AFVs, DOE 

proposed to allocate credit to those 

EISA section 133-identified electric 

drive vehicles that do not already 

qualify as AFVs (e.g., HEVs equipped 

with a petroleum-fueled engine) based 

on a yardstick of petroleum 

displacement, rather than simply 

treating the vehicles as the equivalent of 

AFVs. Non-AFVs, DOE posited, should 

receive partial rather than full credit 

because they do not have as significant 

an effect on the potential for petroleum 

replacement as AFVs. For example, 

even if a non-AFV HEV achieves twice 

the efficiency of a comparable nonhybrid vehicle, the non-AFV HEV only 

reduces petroleum consumption by one 

half, whereas an AFV operated solely on 

alternative fuel reduces petroleum 

consumption in full. For fleets wanting 

to make use of higher efficiency vehicles 

and other technologies, the AFTP’s 

Alternative Compliance option provides 

a flexible means by which to achieve 

compliance with the Program. 

In accordance with section 133, DOE 

also proposed to allocate credits for 

covered fleets’ investments in qualified 

alternative fuel infrastructure, qualified 

alternative fuel non-road equipment, 

and relevant emerging technologies, 

with 1 credit to be earned for every 

$25,000 invested. Within each 

investment category, DOE proposed a 5- 

credit cap on the number of credits that 

could be earned in a single model year, 

although for the alternative fuel 

infrastructure category, DOE proposed a 

10-credit cap for infrastructure that is 

publicly accessible. DOE explained that 

the credit caps would help limit the 

degree to which the AFTP’s existing 

surplus of banked credits (see Part III.D 

below) grows in the future. 

FP&L suggested that in allocating 

credit under section 133, DOE should 

place additional emphasis on the extent 

to which a particular covered fleet has 

demonstrated its support for the EPAct 

1992 objective of replacing petroleum 

with replacement fuels to the 

‘‘maximum extent practicable.’’ 21 While 

DOE believes that such an approach 

could further encourage the acquisition 

of AFVs and enhanced use of alternative 

fuels, thereby fostering an expansion of 

alternative fuel infrastructure, DOE 

maintains that its allocation of credit 

must be done in an equitable and evenhanded manner, applied consistently 

across covered fleets. This necessarily 

means that the same vehicle acquisition 

or the same level of investment must 

yield the same number of credits for 

different fleets. In DOE’s view, 

allocating unequal levels of credit to 

fleets that acquired the same vehicle or 

invested the same amount would be 

unfair. Equally important, Congress, 

through section 508 of EPAct 1992 as 

originally enacted and as amended by 

EISA section 133, has not authorized 

DOE to factor into the credit allocation 

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15890 Federal Register / Vol. 79, No. 55 / Friday, March 21, 2014 / Rules and Regulations 

22Note that in order to give meaning to the EISA 

section 133 amendments, covered fleets will earn 

credits for light duty HEVs (and, except for 

medium- and heavy-duty vehicles, all of the other 

EISA section 133-identified electric drive vehicles) 

under this final rule even if they have not yet met 

their light duty AFV-acquisition requirements. 

While each light duty HEV purchase would 

increase the fleet’s acquisition requirements as a 

non-excluded LDV purchase at a faster rate than it 

would offset such requirements, the rule would 

provide the concomitant benefit of providing 

immediately available credits. If the rule were to 

only allow the allocation of credits once the AFVacquisition requirements had been met, an HEV 

purchase would afford no compliance benefit. 

process a fleet’s ‘‘support’’ for 

petroleum replacement. 

2. Electric Drive Vehicles 

EISA specifies several types of vehicle 

technologies for which DOE must 

determine the amount of credit each is 

to be allocated under the AFTP credit 

program. These include HEVs, plug-in 

electric drive vehicles, FCEVs, NEVs, 

and medium- and heavy-duty electric 

vehicles. As indicated above and as 

described in detail in the NOPR, some 

versions of these vehicle types may be 

considered AFVs under the Program, 

and thus no allocation of credit under 

EISA section 133 is required. In this 

section, DOE explains the credit 

allocations for non-AFV electric drive 

vehicles that are being finalized in this 

action. 

Several commenters provided 

comments that applied to more than one 

electric drive vehicle category, which 

will be reviewed prior to categoryspecific comments. NGV America 

indicated that it was largely supportive 

of DOE’s proposal of partial credits for 

non-AFV electric drive vehicles ‘‘based 

on the fact that none of the vehicles at 

issue have the potential to displace as 

much petroleum as an AFV that 

operates on alternative fuel.’’ 

EDTA suggested that DOE provide 

additional credit for the acquisition of 

electric drive vehicle types in the form 

of an ‘‘emerging technology premium.’’ 

Under EDTA’s approach, there would be 

additional credit provided for ‘‘new, 

limited, or low production’’ electric 

drive vehicles, ranging in value from 

one to five credits per acquisition. This 

premium would be applicable to all 

categories of electric drive vehicles, 

including those that qualify as AFVs, as 

well as those that do not, and would be 

available for each electric drive vehicle 

until some DOE-designated threshold of 

penetration in covered fleets was 

achieved. This premium also would be 

separate and distinct from the credits 

allocated to investments in emerging 

technologies (Part III.C.3.c. below). EEI 

similarly suggested additional credit for 

electric drive vehicles that qualify as 

‘‘emerging technologies,’’ ranging from a 

2.5 multiplier for light duty vehicles to 

a 5.0 multiplier for medium- and heavyduty vehicles. EEI also offered that such 

additional credits should sunset once 

certain levels of penetration are reached: 

• ‘‘Light-duty—50,000 cumulative 

eligible emerging technology vehicles 

were acquired in eligible fleets (or 

20,000 for a single technology such as 

HEVs, PHEVs, FCVs, or BEVs). 

• Medium and heavy duty—25,000 

cumulative eligible emerging technology 

vehicles in eligible fleets (or 10,000 for 

a single technology as above).’’ 

DOE appreciates the EEI and EDTA 

suggestions as means by which to 

encourage and improve the market 

penetration of new technologies. 

Nonetheless, DOE rejects the 

suggestions for several reasons. First, 

the approaches EEI and EDTA offer do 

not provide certainty to covered fleets. 

For example, it may be unclear whether 

a vehicle acquired would still qualify 

for the emerging technology premium 

due to sudden changes in market 

penetration. If a threshold were reached 

during the model year, the level of 

credit available would hinge on when 

during the model year a fleet submitted 

its supporting documentation (i.e., 

before or after the threshold was 

reached). Second, EDTA did not suggest 

what might be considered an 

appropriate penetration level. While EEI 

did offer possible sunset levels, given 

that the entire Program typically results 

in the acquisition of roughly 10,000– 

14,000 AFVs per model year, the levels 

EEI proposed could easily be equal to as 

many as five years’ worth of 

acquisitions by the entire Program. 

Without further supporting justification, 

DOE believes that such a level of 

production cannot still be considered 

‘‘emerging technology.’’ Third, the 

approach EDTA and EEI proposed 

would only apply to electric drive 

vehicles, and not to other types of AFVs. 

Applying this premium only to electric 

drive vehicles would effectively 

discriminate against other AFV types. In 

fact, given that EDTA and EEI would 

apply this premium to all electric drive 

vehicle categories, this could result in 

far greater credit being provided for a 

non-AFV (such as an emerging 

technology hybrid electric vehicle) than 

an AFV, which would, as described in 

this preamble, still be seen as providing 

a greater potential for petroleum 

reduction. Therefore, DOE declines to 

incorporate an ‘‘emerging technology 

premium’’ into its credit allocation 

method for electric drive vehicles. 

a. Hybrid Electric Vehicles 

Currently available light duty HEVs 

have a conventional gasoline engine and 

an electric motor that provides a boost 

or otherwise provides only some motive 

force. As indicated in the NOPR, 

because they are neither dedicated 

vehicles nor dual fueled vehicles, they 

have not previously qualified for AFV 

treatment (or excess acquisition credit) 

under the AFTP. Current HEVs simply 

offer higher efficiency than 

conventionally-fueled vehicles, as 

represented by mile per gallon (mpg) 

ratings. 

Under the Alternative Compliance 

option, fleets can comply by using HEVs 

to help meet their petroleum reduction 

requirement. For more information on 

HEVs and Alternative Compliance, see 

http://www1.eere.energy.gov/

vehiclesandfuels/epact/pdfs/alt_

compliance_guide.pdf or the final rule 

for Alternative Compliance at 72 FR 

12958 (March 20, 2007). 

DOE proposed that HEVs that are not 

AFVs because they lack an alternative 

fuel-capable engine would receive 1⁄2

credit, rather than the full credit that 

dedicated and dual fueled vehicles 

already receive.22 DOE’s proposal to 

allocate 1⁄2 credit was based on the 

petroleum replacement potential of 

these vehicles, as well as their energy 

efficiency (i.e., fuel economy), which 

effectively dictates their petroleum 

replacement potential. 

DOE assumed the same annual usage 

(i.e., miles driven per year) for an HEV 

and a conventional vehicle. For the vast 

majority of HEVs (other than PHEVs, as 

described below), the fuel economy 

improvement that each HEV model 

achieves versus a conventional vehicle 

model is limited. DOE examined the 

efficiency gains and found that most 

HEVs generate efficiency gains that 

would suggest a credit value on the 

order of 1⁄4 credit or less in some 

instances. Some HEV models, in fact, 

achieve fuel economy barely greater 

than conventional internal combustion 

engine versions of the same model, 

while other HEV models actually 

achieve lower fuel economy than the 

most fuel efficient models in the same 

size class. 

Still other HEVs, however, do achieve 

a considerably higher efficiency than 

the most fuel efficient conventional 

models in the same EPA size class. As 

DOE explained in the NOPR, for MY 

2011, the most notable of these HEVs 

were the 2011 Toyota Prius, Mercury 

Milan Hybrid FWD, and Ford Fusion 

Hybrid FWD, which were the most fuel 

efficient midsize HEVs on the market, 

and demonstrated an average 39% 

improvement in fuel economy and a 

25% reduction in fuel use. Based on this 

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information, DOE proposed to allocate 

1⁄2 credit to all HEVs. DOE today is 

finalizing this allocation level. 

As indicated in the NOPR, DOE 

specifically considered proposing a 

higher credit value for those HEVs that 

provide significant efficiency gains and 

lower values for those HEVs with 

comparatively smaller efficiency gains. 

In the end, though, DOE believed that a 

single credit value for all HEVs would 

be most manageable from an 

administrative standpoint and 

represents an approximation of the 

petroleum reduction of the average 

hybrid electric vehicle. DOE also 

concluded that selecting a single value 

provides greater clarity and certainty for 

fleets when it comes to determining the 

credit value for a given hybrid vehicle, 

easing acquisition and compliance 

planning. Although the petroleum 

displacement achieved by the most 

efficient midsize HEVs, when compared 

to the most efficient conventional 

midsize cars, suggests a credit value 

closer to 1⁄3, to provide an incentive for 

fleets to acquire HEVs, DOE continues 

to believe that 1⁄2 credit for all non-AFV 

HEVs is appropriate given the AFTP’s 

goal of having fleets serve both as 

launching pads for new technologies 

and as entities seeking to achieve 

petroleum consumption reductions. In 

addition, it is anticipated that as hybrid 

technologies develop, the efficiency of 

these vehicles should increase. 

Figure 1 below provides the credit 

allocation determination process for 

HEVs (as well as for PHEVs and FCEVs). 

It is the same credit allocation 

determination figure that DOE provided 

in the NOPR. 

NGV America recommended that nonAFV HEVs should be required to 

achieve at least a 30% fuel economy 

improvement over a comparable 

conventional vehicle in order to receive 

the 1⁄2 credit. Similarly, EEI suggested 

that non-AFV HEVs be required to 

achieve some minimum level of 

efficiency improvement, though it did 

not specify the percentage improvement 

over the baseline that should be 

required. EEI, as well as FP&L, 

suggested additional modifications to 

the credit allocations for HEVs, 

however, they both indicated that 

covered fleets acquiring non-AFV HEVs 

should be allowed to claim the 1⁄2 credit 

or ‘‘a higher credit on a sliding scale, 

based on the rated mile per gallon 

efficiency (or field measured 

efficiency),’’ with a fleet requesting such 

higher credit needing to submit 

documentation for approval by DOE. 

Although each of these commenters 

clearly focused on the petroleum 

reduction potential of HEVs, DOE must 

reject these proposals. While FP&L 

focused on DOE’s statements in the 

NOPR concerning ensuring that the 

allocation process be ‘‘manageable from 

an administrative standpoint,’’ DOE 

notes that this was only one of several 

reasons why DOE is taking this 

approach. For example, fleets must have 

some level of certainty concerning the 

value (credits) of a given acquisition. 

Also, an award of credits must be fair 

and equitable across all fleets. The 

comments, however, would create a 

relatively uncertain and uneven basis 

for the award of credits. For example, 

suggestions of the commenters would 


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make it such that different fleets could 

receive different levels of credit for the 

acquisition of the same vehicle model, 

depending on model year, because the 

efficiency of the vehicle versus some 

conventional baseline may vary from 

year to year. Further, the approaches 

offered would create additional 

administrative burden on reporting 

fleets and would create a relatively 

complex framework for earning credits. 

As a result, DOE is unconvinced that 

such a framework would be fair, 

equitable, and worth the additional 

burden on covered fleets. 

Therefore, DOE is finalizing the credit 

allocation for HEVs that are not AFVs at 

1⁄2 credit per vehicle. 

b. Plug-In Electric Drive Vehicles 

As explained above, there are two 

primary forms of plug-in electric drive 

vehicles: (1) Battery EVs; and (2) PHEVs, 

assuming they have a minimum battery 

capacity of 4 kWh. Battery electric 

vehicles are already entitled to one 

credit, as they qualify as dedicated 

vehicles and, hence, AFVs under EPAct 

1992 section 301. Section 133 more 

directly affects PHEVs. Because all 

PHEVs are anticipated to have at least 

a 4 kWh battery, they would qualify as 

plug-in electric drive vehicles under 

section 133. Like HEVs, PHEVs would 

most likely operate on both electricity 

and either conventional petroleum fuel 

or alternative fuel. PHEVs differ from 

other HEVs, however, in that they are 

designed to operate in part on electric 

power obtained from off-board sources 

and typically have more electrical 

storage capacity onboard. For example, 

a PHEV20 would have a 20-mile 

electric-only range, and would be 

allocated one full credit, assuming it 

could meet the NHTSA criteria for a 

dual fueled electric automobile. PHEVs 

may also hold special promise to 

enhance fuel efficiency gains over 

conventional vehicles and enable the 

use of renewable energy in either 

centralized or distributed power 

generating systems. Thus, PHEVs could 

contribute substantially both to 

reducing petroleum use and reducing 

the associated generation of greenhouse 

gases. 

PHEVs that do not already qualify as 

AFVs, because they are not equipped 

with an engine that is capable of 

operating (or one that operates solely) 

on alternative fuel, and do not meet the 

NHTSA criteria for a dual fueled electric 

automobile, were proposed to be treated 

in the same manner as HEVs, meaning 

their acquisition by a covered fleet 

would result in 1⁄2 credit. 

DOE’s rationale for allocating to nonAFV PHEVs the same credit value that 

would be allocated to non-AFV HEVs, 

1⁄2 credit, was that both sets of vehicles 

are non-AFVs and, further, efficiency 

gains offered by the former vehicles 

versus the latter vehicles are relatively 

small and do not justify disparate 

treatment. DOE today is finalizing this 

allocation level. 

In addition to commercially available 

PHEVs, conversion options are offered 

by several organizations. To qualify for 

credit under the AFTP, any such 

conversion must be completed within 

four months of the vehicle’s acquisition 

under 10 CFR 490.202(c) for States and 

10 CFR 490.305(c) for alternative fuel 

providers. 

Figure 1 above depicts the credit 

allocation determination process for 

PHEVs. 

As they had for HEVs, both EEI and 

FP&L proposed that fleets be allowed to 

apply for greater than 1⁄2 credit, based 

on the vehicle’s demonstrated fuel 

efficiency improvement, with EEI also 

proposing that fleets have the option of 

requesting greater credit based on the 

ratio of the all-electric range to the 

expected average daily driving range. 

NEMA supported the 1⁄2 credit 

allocation, based on the battery 

capacities that are currently 

commercially available. NEMA did, 

however, suggest that as the all-electric 

range grows for these vehicles, greater 

credit (up to one credit per vehicle) be 

awarded, based on higher ranges 

specified by DOE. This approach, one 

based on the credit level being ‘‘a 

function of the expected range in miles 

of the battery,’’ NEMA stated, would 

help ‘‘encourage rapid innovation of 

vehicle technologies.’’ 

SAFE proposed that all non-AFV 

PHEVs be allocated one credit ‘‘either 

by eliminating the range requirement for 

dual fuel vehicles in which one of the 

fuels is electricity [i.e., the NHTSA 

minimum drive range criteria], or by 

treating them as PHEVs but still giving 

them a full credit.’’ SAFE argued that 

these vehicles should earn one credit 

‘‘since the average flexible fuel 

vehicle—with a lower ‘alternative fuel 

factor’ [the portion of a vehicle’s energy 

or operation that comes from nonpetroleum fuels]—receives one credit.’’ 

SAFE also concluded that DOE’s 

reliance on the NHTSA criteria ‘‘is 

inappropriate given the purpose of [the 

AFTP]’’ and ‘‘shortchanges PHEVs that 

may not operate in a pure electric 

mode.’’ SAFE suggested that credit 

should be ‘‘based on the presence of a 

drive train designed to operate on an 

alternative fuel and the fuel savings 

provided by the vehicle, not its 

minimum all-electric range or any other 

factors.’’ 

In its comments, EDTA indicated that 

vehicles that achieve the NHTSA 

minimum driving range should be 

entitled to one credit, as DOE had 

explained. EDTA went further, however, 

recommending that DOE also use ‘‘a 

credit mechanism that recognizes 

incremental benefits of electrification in 

the non-AFV PHEVs with varying 

ranges, but less than [the one credit AFV 

PHEVs receive].’’ Under EDTA’s 

proposal, non-AFV PHEVs would be 

eligible for some level of credit between 

1⁄2 and 1. 

DOE rejects the above arguments 

supporting greater credit for non-AFV 

PHEVs. First, as previously stated in 

Parts I.A, III.C.1, and elsewhere in this 

preamble, DOE is using petroleum 

displacement potential, measured 

against AFVs operating on alternative 

fuel, as the benchmark for allocating 

credit. PHEVs that do not meet the 

NHTSA minimum driving range criteria 

are simply not expected to achieve 

petroleum displacement close to what 

AFVs achieve when operating on 

alternative fuel. Second, proposals to 

allow fleets to apply for greater credit 

than 1⁄2 depending on a number of 

varying factors would result in 

uncertainty for covered fleets (i.e., the 

level of credit for a given vehicle could 

not always be clearly ascertained by a 

fleet at the time of vehicle acquisition). 

In addition, the commenters’ proposals 

would require fleets to submit 

considerably more documentation and 

would require that DOE undertake caseby-case determinations for potentially 

every vehicle in each annual report 

submitted. Third, and most importantly, 

DOE cannot alter the minimum driving 

range criteria for dual fueled electric 

automobiles, which were established by 

NHTSA pursuant to statute. As 

explained in Part III.A.5, Congress 

defined the term ‘‘dual fueled vehicle’’ 

in section 301(8) of EPAct 1992 (42 

U.S.C. 13211(8)), using a definition that 

incorporates the EPCA definition of a 

dual fueled automobile. This definition, 

in turn, specifically includes the 

minimum driving range requirement for 

dual fueled passenger automobiles (49 

U.S.C. 32901(a)(9)(D)). 

In sum, DOE is finalizing the credit 

level for non-AFV light duty PHEVs at 

1⁄2 credit per vehicle. 

c. Fuel Cell Electric Vehicles 

FCEVs with fuel cells that can be 

powered by hydrogen or some other 

alternative fuel already qualify as AFVs 

and thus already are eligible for one 

credit under the AFTP. To DOE’s 

knowledge, the majority of FCEVs under 

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23See http://www.fueleconomy.gov/feg/fcv_

sbs.shtml (Honda and Mercedes-Benz); http://

www.fueleconomy.gov/feg/fcv_links.shtml (various 

manufacturers); http://www.hyundaiusa.com/abouthyundai/news/Corporate_Tucson_ix_FCEV_

Release-20110214.aspx (Hyundai); http://

www.toyota.com/about/environment/innovation/

advanced_vehicle_technology/index.html (Toyota). 

24A 2001 DOE study showed that, of the 348 fleet 

NEVs studied, only 18 NEVs had been acquired to 

replace previous on-road vehicles, though some of 

the other NEVs might also have been acquired in 

lieu of new on-road vehicles (i.e., fleet expansion). 

The 348 NEVs were driven an average of 9 miles 

per day. See Idaho National Engineering and 

Environmental Laboratory, Field Operations 

Program—Neighborhood Electric Vehicle Fleet Use 

(July 2001) (INEEL Study), at 4, available at 

http://avt.inel.gov/pdf/nev/nevstudy.pdf. 

25Section 301(13) of EPAct 1992 defines ‘‘motor 

vehicle’’ to have ‘‘the meaning given such term 

under section 216(2) of the Clean Air Act (42 U.S.C. 

7550(2)).’’ In interpreting section 216(2), which 

states that a ‘‘motor vehicle’’ is ‘‘any self-propelled 

vehicle designed for transporting persons or 

property on a street or highway,’’ DOE defers to 

EPA, which has found that ‘‘[a] vehicle shall be 

deemed not a motor vehicle [and excluded from the 

Clean Air Act if it] cannot exceed a maximum speed 

of 25 miles per hour over level, paved surfaces 

. . . .’’ 40 CFR 85.1703(a). DOE has therefore 

historically chosen not to treat NEVs as motor 

vehicles. 

26 INEEL Study at 4. 

27See DOE, Transportation Energy Data Book: 

Edition 31 (July 2012), at Table 8.10. 

28 Id. at Table 7.3. 

29Under the existing AFTP, neither AFVacquisition requirements nor AFV credits are 

addressed in amounts below one, but fleet 

aggregates implicitly involve fractional credits for 

individual acquisitions. 

30See, e.g., http://www.viamotors.com/news/

press-releases/pge-via-motors-showcase-a-first-forutilities-the-extended-range-electric-pickup-truck/; 

http://www.greencarreports.com/news/1073783_

ford-f-750-plug-in-hybrid-work-truck-not-your-littleleaf-sonny#ixzz1obqAOAXH. 

development are fueled by hydrogen,23

but DOE cannot dismiss the possibility 

of a non-alternative fuel-based FCEV 

one day reaching the market. As a 

result, DOE is required by EISA section 

133 to establish a credit value for nonAFV FCEVs. 

In the NOPR, DOE proposed to treat 

FCEVs that are neither dedicated 

vehicles nor dual fueled vehicles in the 

same manner as non-AFV HEVs and 

PHEVs and allocate them 1⁄2 credit. This 

determination was based on the fact that 

current AFV FCEVs typically offer 

significant efficiency gains over 

conventional vehicles, but non-AFV 

FCEVs, while offering similar efficiency 

gains, would not displace as much 

petroleum as an AFV operating solely 

on alternative fuel. DOE solicited 

comments on this proposed allocation 

level. 

Both EEI and EDTA again suggested 

requiring a minimum efficiency level in 

order to receive 1⁄2 credit, plus allowing 

additional credit on a sliding scale 

based on efficiency level. EDTA also 

proposed applying an emerging 

technology premium to non-AFV 

FCEVs. For the same reasons as those 

identified above in Parts III.C.2 and 

III.C.2.b, DOE is rejecting these requests. 

In addition, DOE notes that FCEVs are 

not anticipated to be commerciallyavailable for several more years. Until 

that time, fleets are free to apply for 

credit for their investments in emerging 

technologies, as described under Part 

III.C.3.c. below. Therefore, DOE is 

finalizing the credit for non-AFV FCEVs 

at 1⁄2 credit per vehicle, as proposed in 

the NOPR. 

The credit allocation determination 

process for FCEVs is depicted in Figure 

1 above. 

d. Neighborhood Electric Vehicles 

Most commonly-available NEVs have 

been produced as a type of low-speed 

vehicle, limited to a top speed of 

between 20 and 25 mph. NEVs are 

typically used for driving short 

distances on low-speed streets or on 

campus-like sites (such as schools or 

power plants). NEVs functionally 

substitute for only some of the activities 

for which conventional vehicles are 

used, and in part serve as substitutes for 

walking or bicycling.24 In many areas, 

NEVs are not able to be licensed for use 

on public roads. Even in the 

jurisdictions where they may be 

licensed, they typically are limited to 

streets with speed limits of 35 mph or 

less and can never be driven on 

highways. To date, the AFTP has treated 

NEVs, which do not fall under the Clean 

Air Act section 216(2) definition of 

‘‘motor vehicles’’ as interpreted by 

EPA,25 as ineligible for credit as AFVs. 

In a 2001 study, DOE found that NEVs 

are driven an average of 3,410 miles per 

year.26 This compares to the average 

annual use of light duty household 

vehicles in the U.S. in 2009 of 11,300 

miles per year.27 For light duty business 

fleet vehicles, however, average annual 

use in 2010 ranged from 24,384 to 

29,616 miles.28 Therefore, the use of 

NEVs substitutes for a small percentage 

of conventional vehicles’ applications. 

A comparison of the data above on 

average annual miles driven by NEVs 

and average annual miles driven by 

business fleets suggests that a credit of 

no more than 1⁄8 may be warranted. 

DOE, however, proposed allocating 1⁄4

(0.25) credit for each NEV acquired, in 

an effort to provide a general incentive 

for covered fleets to eliminate petroleum 

consumption through the acquisition of 

these vehicles notwithstanding their 

limited fuel replacement value. The 1⁄4

credit level may appear small, but the 

actual resulting value to the acquiring 

fleet is larger than the 1⁄4 allocated. 

Unlike the acquisition of a light duty 

AFV, the acquisition of an NEV does not 

increase the vehicle count that is the 

basis for calculating the AFVacquisition requirements. The 

acquisition of a light duty AFV would 

generate a requirement for the 

acquisition of another fractional AFV, 

meaning the net credit result stemming 

from the acquisition of the initial light 

duty AFV is either 0.25 for State fleets 

(1 minus 0.75) or 0.1 for alternative fuel 

provider fleets (1 minus 0.9) of a credit. 

By comparison, an NEV acquisition 

results in a net surplus of 1⁄4 credit.29

In its comments, EEI suggested that 

the appropriate credit level for the 

acquisition of an NEV should be 1⁄2

rather than 1⁄4, to be more reflective of 

the fact that many fleets replace 

conventional vehicles with NEVs. 

Conversely, EDTA was supportive of the 

1⁄4 credit level ‘‘based upon the multiple 

benefits of NEVs’ zero-petroleum 

operation and their utility to covered 

fleets.’’ 

DOE is not persuaded that NEVs 

warrant a credit level greater than 1⁄4, 

particularly in light of the benefit 

provided in terms of compliance as 

discussed above, and is finalizing the 1⁄4

credit allocation that it proposed. 

e. Medium- and Heavy-Duty Electric 

Vehicles 

i. General 

‘‘Medium- or heavy-duty electric 

vehicles,’’ as that term is defined in this 

final rule (see Part III.B.3 above), are 

now commercially available in the U.S., 

both as original equipment 

manufacturer vehicles (e.g., the Smith 

Electric Newton) and as after-market 

converted vehicles.30 Conventional 

medium- and heavy-duty vehicles 

typically use several times the amount 

of petroleum fuel that conventional 

LDVs use, so the deployment of higher 

efficiency or alternative fuel versions of 

these vehicles contribute significantly to 

a reduction in our nation’s overall 

petroleum use. 

Under the existing AFTP, the 

acquisition of a medium- or heavy-duty 

AFV yields one credit, but only after the 

fleet has met its light duty AFVacquisition requirement, and DOE 

proposed to maintain this approach in 

the NOPR. As with NEVs, discussed 

above, the benefit to covered fleets of 

such purchases in comparison to an 

LDV acquisition includes not increasing 

a fleet’s LDV total for purposes of 

calculating compliance requirements. 

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31See, e.g., 49 CFR 535.4 (defining, for purposes 

of the NHTSA Medium- and Heavy-Duty Vehicle 

Fuel Efficiency Program, the term ‘‘dual fueled 

vehicle’’). 

32 76 FR 57106 (Sept. 15, 2011). 

33See 49 CFR 535.4 (defining the term ‘‘dual 

fueled vehicle’’ and stating that ‘‘a plug-in hybrid 

electric vehicle is considered a dual fueled 

vehicle’’). NHTSA likewise treats medium- and 

heavy-duty vehicles that operate on gasoline and 

E85 to be duel fueled vehicles. In other words, the 

minimum driving range requirement set forth in 49 

CFR 538.5 is inapplicable to medium- and heavyduty vehicles. 

ii. Hybrid Electric and Plug-In Hybrid 

Electric Vehicles 

As discussed earlier in this preamble, 

medium- and heavy-duty battery 

electric vehicles already qualify as AFVs 

and thus already are entitled to one 

credit under the AFTP. Similarly, 

medium- and heavy-duty HEVs and 

PHEVs that are equipped with an engine 

that can operate (or that operates solely) 

on a liquid or gaseous alternative fuel 

(e.g., E85 or CNG) already qualify as 

AFVs eligible for one credit.31 In the 

NOPR, DOE therefore interpreted EISA 

section 133 as calling for the allocation 

of credits to ‘‘medium- or heavy-duty 

electric vehicles’’ that do not already 

qualify as AFVs (i.e., non-AFV HEVs 

and PHEVs). 

As explained in the NOPR, DOE 

considered two options for mediumand heavy-duty non-AFV HEVs and 

PHEVs: (1) Allocate one credit, 

accounting for the fact that conventional 

medium- and heavy-duty vehicles 

consume more fuel than do 

conventional LDVs, and thus offer a 

greater potential impact on petroleum 

reduction compared to an LDV using 

similar technology; or (2) allocate 1⁄2

credit, as such a ‘‘medium- or heavyduty electric vehicle’’ still is not an AFV 

and therefore does not displace as much 

petroleum as a medium- or heavy-duty 

AFV operating on alternative fuel. DOE 

proposed the latter credit level in the 

NOPR. 

DOE received a number of comments 

on its proposed allocation for mediumand heavy-duty non-AFV HEVs and 

PHEVs. Eaton sought clarification that 

medium- and heavy-duty hydraulic 

hybrid vehicles are entitled to credit, 

while EDTA and EEI, in addition to 

Eaton, took issue with the proposed 

electric drivetrain limitation. DOE 

disagrees with these comments, and 

emphasizes that in EISA section 133, 

Congress expressly referred to ‘‘electric 

drive’’ vehicles. In view of this, DOE 

concludes that hydraulic hybrid 

vehicles with a gross vehicle weight 

rating of more than 8,500 pounds do not 

qualify for credit as ‘‘medium or heavyduty electric vehicles,’’ and that a 

vehicle must have an electric drivetrain 

for acquisition credit to be warranted. 

Even though DOE is excluding 

hydraulic hybrid and electric bucket 

system technologies from credit under 

this final rule, fleets are reminded that 

medium- and heavy-duty vehicles with 

these technologies may be used to 

demonstrate petroleum fuel use 

reductions under the AFTP’s 

Alternative Compliance option. 

Eaton and EDTA also thought that 

‘‘medium- or heavy-duty electric 

vehicles’’ that are not AFVs should be 

allocated a minimum of one credit per 

vehicle, in recognition of the greater 

petroleum use and emission reductions 

that accrue from these vehicles. NEMA 

supported 1⁄2 credit for medium- and 

heavy-duty PHEVs with currently 

available battery capacities, but urged 

that incrementally greater credit be 

allocated as the electric ranges of the 

vehicles increases. Finally, EEI 

questioned how DOE would determine 

whether a medium- or heavy-duty PHEV 

is an AFV already entitled to one credit 

or a non-AFV entitled to 1⁄2 credit. 

After considering the comments, DOE 

is finalizing the proposed allocation of 

1⁄2 credit for medium- and heavy-duty 

non-AFV HEVs. DOE acknowledges the 

potentially greater petroleum reductions 

stemming from these vehicles, but 

reiterates that the vehicles do not 

qualify as AFVs. 

For medium- and heavy-duty PHEVs, 

although DOE proposed to allocate 1⁄2

credit under EISA section 133 for fleet 

acquisitions of these vehicles, it has 

now concluded that an allocation under 

section 133 is not warranted after all 

because such vehicles already qualify as 

AFVs and, as a result, are already 

entitled to one credit under the AFTP. 

DOE observes that NHTSA, in the 

Medium- and Heavy-Duty Vehicle Fuel 

Efficiency Program (49 CFR Part 535) 

that it promulgated on September 15, 

2011,32 considers medium- and heavyduty PHEVs to be dual fueled 

vehicles.33 To maintain regulatory 

consistency, DOE therefore deems 

PHEVs with a gross vehicle weight 

rating in excess of 8,500 pounds to be 

dual fueled vehicles and, consequently, 

AFVs for purposes of the AFTP. As 

such, medium- and heavy-duty PHEVs 

already are entitled to, and when 

acquired by covered fleets will be 

allocated one credit. An allocation 

under EISA section 133 is unnecessary. 

In sum, while DOE proposed 

allocating 1⁄2 credit to medium- and 

heavy-duty non-AFV HEVs and PHEVs, 

it is finalizing this allocation under 

EISA section 133 for the former vehicles 

and acknowledging that medium- and 

heavy-duty PHEVs already qualify as 

AFVs. 

DOE will allocate credit for ‘‘mediumor heavy-duty electric vehicles,’’ 

whether AFVs or non-AFV HEVs, only 

after a covered fleet has met its light 

duty AFV-acquisition mandate. DOE 

wants to maintain a level playing field 

for all vehicles with a gross vehicle 

weight rating of more than 8,500 

pounds, regardless of the drive or fuel 

type, and believes that because the light 

duty AFV precondition already applies 

to medium- and heavy-duty AFVs, it 

also must apply to medium- and heavyduty non-AFVs that will receive 1⁄2

credit under this action. A non-level 

playing field effectively would create an 

incentive for covered fleets to acquire 

medium- and heavy-duty non-AFV 

HEVs over AFVs. 

NGV America and APGA urged DOE 

to eliminate the need for a covered fleet 

to meet its light duty AFV-acquisition 

requirement before receiving credit for 

the medium- and heavy-duty AFVs and 

non-AFVs it acquired. DOE contends 

that removing this requirement would 

be inconsistent with statutory authority 

and the overall statutory scheme of the 

Program. The AFTP vehicle acquisition 

requirements are set forth in EPAct 

1992, section 501(a) for alternative fuel 

provider fleets, and section 507(o) for 

State fleets, respectively. These sections 

specify the number of AFVs that must 

be acquired as a percentage of ‘‘new 

light duty motor vehicles’’ acquired by 

a fleet. The only acquisition 

requirement under the AFTP is 

therefore inherently a light duty vehicle 

requirement. The provision for 

allocating credit for other than light 

duty vehicles appears in EPAct 1992 

section 508(b), as amended. This section 

states that ‘‘[t]he Secretary shall allocate 

a credit to a fleet or covered person that 

is required to acquire an alternative 

fueled vehicle under this subchapter, if 

that fleet or person acquires an 

alternative fueled vehicle in excess of 

the number that fleet or person is 

required to acquire . . . .’’ Thus, for an 

acquisition under section 508(b) to be in 

excess of what is required of a fleet, the 

light duty acquisition target must have 

already been met under sections 501(a) 

or 507(o), as applicable. DOE continues 

to maintain, as it has since the inception 

of the AFTP, that the acquisition of a 

medium- or heavy-duty vehicle does not 

and cannot satisfy the mandate to 

purchase light duty AFVs imposed on a 

fleet by EPAct 1992. 

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34See DOE’s Alternative Fuels Data Center Web 

site at http://www.afdc.energy.gov/afdc/fuels/

ethanol_infrastructure.html. 

35For example, a fleet that invests $250,000 in 

one or more public stations will earn 10 credits, 

while a fleet that invests $125,000 in one or more 

private stations will earn 5 credits. In the event a 

fleet invests $125,000 in public stations and an 

additional $125,000 in private stations, it will be 

entitled to 5 and 5 credits, respectively, for a total 

of 10 credits. Finally, if a fleet invests $250,000 in 

public stations as well as $25,000 in a private 

station, it will be capped at 10 credits for the 

applicable model year. 

3. Investments 

a. Alternative Fuel Infrastructure 

In addressing EISA section 133’s 

requirement that DOE allocate credit for 

fleets’ investments in alternative fuel 

infrastructure, DOE believes it makes 

sense to focus on the original objectives 

of the EPAct 1992 fleet programs. In 

general, the concept behind the 

programs is to use the covered centrallyfueled fleets to catalyze both 

manufacturer AFV offerings and 

refueling infrastructure, paving the way 

for AFV use by other fleets and, 

ultimately, the general public. While the 

statutory requirements are in terms of 

vehicle acquisitions, the EPAct section 

502(a) goal of maximizing replacement 

fuel use also involves consideration of 

infrastructure availability. Thus, the 

development of alternative fuel 

refueling infrastructure that ultimately 

serves as much of the population as 

possible is important to achieving the 

overall programmatic goals. 

As explained in Part III.B.6 above, 

DOE is defining the phrase ‘‘alternative 

fuel infrastructure’’ to mean one or more 

alternative fueling or charging/battery 

exchange stations, a definition expressly 

supported by APGA and NGV America. 

In allocating credit for alternative fuel 

infrastructure investments, DOE has 

determined that a covered fleet that 

makes a financial investment in a new 

alternative fueling or charging/battery 

exchange station will receive one credit 

for every $25,000 invested toward 

developing the infrastructure. DOE 

believes $25,000 per investment credit 

is an appropriate dollar figure inasmuch 

as the installation of an E85 pump and 

tank historically has cost roughly 

$25,000.34 Moreover, as discussed in 

Part III.C.3.b below, the cost of a new 

light duty AFV, for which a covered 

fleet earns an AFV acquisition credit, is 

approximately $25,000. Because 

investing in alternative fuel 

infrastructure effectively is an 

alternative to acquiring light duty AFVs, 

DOE believes the consistent $25,000 

threshold is appropriate. 

NEMA supported the $25,000 figure, 

while EEI argued that fleets should 

receive alternative fuel infrastructure 

investment credit based on the number 

of stations installed, not the amount of 

money invested. EEI suggested one 

credit per private station and two 

credits per public station. Focusing in 

particular on electric vehicle charging 

stations, EDTA and NEMA 

recommended that fractional credits be 

allocated for investments below the 

$25,000 threshold. These organizations 

posited that if covered fleets do not 

receive any credit for alternative fuel 

infrastructure investments under 

$25,000, they will not be adequately 

encouraged to invest in charging 

stations. 

In DOE’s view, an allocation approach 

based on the level of financial 

investment is inherently more balanced 

in that it rewards greater financial 

expenditures with a higher number of 

credits. Installation of an alternative 

fueling station that costs $100,000 will 

yield the investing fleet 4 credits, 

whereas under EEI’s suggested approach 

the fleet would earn only 1 credit for a 

private station or 2 credits for a publicly 

accessible station. DOE reiterates its 

belief that the appropriate dollar figure 

for purposes of allocating credit is an 

amount based on the approximate cost 

of installing an E85 pump and tank or 

acquiring a new light duty AFV. DOE 

also maintains that establishing the 

$25,000 value as a base level below 

which no credit may be earned is 

equally appropriate, given that this 

value is sufficiently high to demonstrate 

a significant investment in alternative 

fuel infrastructure rather than simply 

serve as a reward to fleets for actions 

they otherwise planned to take. In 

addition, as set forth in 10 CFR 

490.504(g), DOE notes that fleets may 

aggregate the monetary sums invested in 

a particular model year to reach an 

applicable investment credit threshold. 

After reviewing the comments 

received on the allocation of fractional 

credits for investments, DOE has 

concluded that it will not allocate 

fractional credits for any of the 

investment credits. The AFTP is based 

on the acquisition of individual vehicles 

(LDVs and AFVs), and correspondingly, 

the AFTP’s accounting and annual 

reporting mechanisms treat the vehicles 

as individual units. In the area of 

investments, DOE has identified a 

specific dollar amount, $25,000, as the 

basis on which to measure a unit for 

credit equivalency purposes. The 

approach set forth in the proposed rule 

and finalized today is based on this 

dollar amount rather than an absolute 

measurement of every dollar invested. 

DOE will record the investment of an 

amount equal to a unit ($25,000), not 

any discrete amount of dollars. In 

addition, DOE notes that if it were to 

track each dollar invested and award 

fractional credits, the burden of 

accounting and data collection on both 

reporting entities and DOE would be 

greatly increased. 

DOE proposed to limit the number of 

credits that may be earned in a single 

model year to a maximum of 5 credits 

per fleet if the infrastructure is private, 

and a maximum of 10 credits per fleet 

if the infrastructure is publicly 

accessible. APGA and NGV America 

expressed support for the establishment 

of a higher credit maximum for public 

alternative fuel infrastructure. DOE is 

maintaining the credit distinction 

proposed in the NOPR. It encourages the 

building of alternative fuel 

infrastructure to which the general 

public has access, as such accessibility 

expands the alternative fuel refueling 

options for the broadest range of 

vehicles. For a fleet that installs both 

public and private infrastructure in a 

given model year, a 10-credit maximum 

will apply, with up to 10 credits being 

offered for public stations, and 5 credits 

for private stations.35

EDTA and EEI requested that DOE 

raise the annual per fleet cap to 25 

credits, while NEMA argued that an 

annual cap on alternative fuel 

infrastructure investment credits is 

unjustified. DOE understands that fleets’ 

needs and opportunities are subject to 

variation, but stresses that it has a 

responsibility to balance competing 

interests: enable fleets to earn credits 

and at the same time ensure the proper 

functioning of the AFTP’s credit system. 

As explained in Part III.D.2 below, the 

Program currently has approximately 

70,000 banked credits in the system and 

DOE wishes to avoid the devaluation of 

credits currently in fleets’ accounts. 

DOE therefore declines EDTA’s and 

EEI’s suggestion that the maximum be 

increased as well as NEMA’s suggestion 

to eliminate the annual cap. 

To be eligible for credit, the 

alternative fuel infrastructure 

investment must have been made (i.e., 

the infrastructure must have been paid 

for) by the fleet requesting credit. 

Infrastructure installed and paid for or 

simply paid for by entities or 

organizations that are not subject to the 

AFTP is ineligible for investment credit. 

DOE clarifies, however, that a covered 

fleet may earn credit for investments 

that it makes in alternative fuel 

infrastructure owned or operated by 

another entity, and that regardless of the 

type of alternative fuel offered, all dollar 

amounts associated with the installation 

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36 DOE will distinguish a basic 120V electrical 

wall outlet from Level 1 or Level 2 charging stations 

or DC (direct-current) fast charging stations, such as 

those currently available (see, e.g., http://

www.pluginamerica.org/accessories; http://

www.afdc.energy.gov/fuels/electricity_

infrastructure.html). 

37See DOE, Transportation Energy Data Book: 

Edition 31 (July 2012), at Table 10.12. 38See 10 CFR 490.203. 

of the infrastructure will be treated 

equally. 

To allocate infrastructure investment 

credit to a particular fleet, DOE will 

need to know how much money was 

expended, the period or model year 

during which the investment was made, 

and on exactly what infrastructure the 

investment was spent. Covered fleets 

must seek credit through the credit 

activity reporting mechanism (10 CFR 

490.508) and clearly identify the 

alternative fuel type, specific location, 

date of initial operation, and level of 

accessibility of the station. Importantly, 

credit may be sought only for the model 

year in which the station begins 

operating, and each fleet will be limited 

to one award of credits per site, per 

model year. For example, if a covered 

fleet’s infrastructure investment spans 

more than one year, with the fleet 

having invested $12,500 in a new AFV 

fueling station during one model year 

and then an additional $12,500 in that 

station during the following model year, 

the fleet is entitled to 1 investment 

credit in the second model year. If the 

fleet neglects to seek credit during that 

second model year for its $25,000 total 

investment but instead applies for the 

single credit in a later year, DOE will 

allocate no credit. Similarly, if the fleet 

applies for credit in its credit activity 

report for the first model year, DOE will 

reject the request on the grounds that 

the alternative fuel infrastructure did 

not become operational during that year. 

Credits will be allocated for new 

fueling or charging stations, or for the 

expansion of existing stations if 

additional fueling or charging capability 

is being added (such as an additional 

dispensing unit at an existing station), 

in which case the additional capability 

must have become operational during 

the model year for which credit is 

sought. Simply installing additional 

electrical outlets, however, will not 

qualify for investment credit.36 Nor will 

credit be provided for maintenance of or 

improvements to existing equipment at 

an existing station. Fleets will have to 

certify the accuracy of the information 

provided. 

b. Alternative Fuel Non-Road 

Equipment 

As discussed in Part III.B.7, DOE is 

defining ‘‘alternative fuel non-road 

equipment’’ to include only mobile, 

non-road equipment that operates on 

alternative fuel. Stationary equipment 

(e.g., a generator) is ineligible for 

alternative fuel non-road equipment 

investment credit. As with alternative 

fuel infrastructure, investment credit 

will only be provided for new mobile 

equipment, not for maintenance of or 

improvements to existing mobile 

equipment. 

DOE has decided to base the 

allocation of credit on the rough value 

represented by the average price of a 

new light duty AFV sold in the United 

States in 2010. According to the latest 

edition of DOE’s Transportation Energy 

Data Book, the average price of a new 

LDV was $24,296 (in 2010 dollars).37

Understanding that there is little, if any, 

price differential between a new LDV 

and a new flexible fuel vehicle, the 

average price of a new LDV is 

approximately $25,000 after conversion 

to 2012 dollars (using the Department of 

Labor’s CPI Inflation Calculator). DOE 

believes the appropriate expenditure 

level for purposes of earning a credit for 

investment in alternative fuel non-road 

equipment is this amount (i.e., $25,000). 

No commenters objected to this 

monetary value. DOE believes that 

$25,000 is a sufficiently high value to 

demonstrate a significant investment in 

qualified non-road equipment rather 

than simply serve as a reward to fleets 

for actions they otherwise planned to 

take. In addition, this amount is 

equivalent to the alternative fuel 

infrastructure investment credit under 

this action, providing for some level of 

administrative consistency. 

In sum, DOE is allocating 1 credit for 

every $25,000 that a covered fleet 

invests in alternative fuel non-road 

equipment. Credits will be allocated in 

whole number values, with 1 credit 

allocated for each $25,000 threshold 

achieved, with a maximum of 5 credits 

per fleet in a single model year. To be 

eligible for credit, the investment must 

have been made by the requesting fleet. 

Investments made by organizations that 

are not subject to the AFTP are 

ineligible for credit. 

Two commenters, EEI and FP&L, 

contended that fleets should receive 

credit based on the number of pieces of 

alternative fuel non-road equipment 

acquired in a model year, not the 

amount of money invested. DOE 

disagrees, and points out that section 

508(b)(2)(A)(ii) of EPAct 1992, as 

amended by EISA section 133, directs 

DOE to allocate credit for covered fleets’ 

‘‘investment in qualified . . . alternative 

fuel nonroad equipment.’’ Whereas 

Congress specified that credit be 

allocated for the ‘‘acquisition of’’ 

electric drive vehicles, it stipulated that 

credit be allocated for the ‘‘investment 

in’’ alternative fuel non-road equipment. 

DOE interprets the allocation of credit 

for dollars invested as being based on 

the ‘‘investment in’’ such equipment, 

and therefore declines to implement the 

commenters’ suggestion of doing so by 

number of pieces of equipment 

acquired. Under the approach DOE is 

taking, all alternative fuel non-road 

equipment will be treated equally, 

whereas under a per piece approach, a 

$25,000 piece of equipment would yield 

the same number of credits, one, as a 

$10,000 or less expensive piece of 

equipment. 

EEI and FP&L further recommended 

that there be no annual cap on the 

number of credits a fleet can earn from 

its alternative fuel non-road equipment 

investments. Alternatively, EEI 

requested that DOE raise the annual per 

fleet maximum from 5 to 25 credits. 

EDTA also requested that the annual 

cap be increased. For the same reasons 

set forth in Part III.C.3.a above regarding 

devaluation of the current credit market, 

DOE rejects these recommendations. 

APGA and NGV America argued that 

a covered fleet should earn credit even 

when the alternative fuel non-road 

equipment in which it invested is 

owned by another entity. DOE does not 

agree, principally because it considers a 

fleet’s investment in alternative fuel 

non-road equipment to be somewhat 

analogous to the acquisition of an AFV. 

To maintain programmatic consistency, 

DOE is adopting the same guiding 

principle for investments in alternative 

fuel non-road equipment. Under the 

Program, a covered fleet can earn AFV 

acquisition credit only through its own 

AFV acquisitions; it cannot generate 

credits from the AFVs acquired by other 

organizations (with the one exception 

being an approved State plan).38

This is different from the approach 

DOE is taking with respect to alternative 

fuel infrastructure investments. DOE 

believes the overall goal of the 

replacement fuel provisions of EPAct 

1992 is to increase the availability of 

alternative and replacement fuels to all 

potential users. Investments made in 

infrastructure can help make this 

happen, regardless of who the ultimate 

owner of the infrastructure is. In the 

case of non-road equipment, however, 

the use of the equipment is, like an 

AFV, more specific to the fleet that 

owns it. In addition, to qualify for nonroad equipment investment credit, DOE 

is requiring that the investing fleet 

verify that the equipment is being 

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operated on alternative fuel. From a 

compliance perspective, it is far more 

straightforward for a fleet to verify, and 

for DOE to audit, information on the 

non-road equipment that the fleet owns. 

Ensuring the accuracy of information 

pertaining to non-road equipment in 

which a fleet invested but that is owned 

by others would simply be too tenuous. 

Under the regulations being finalized 

today, a covered fleet must seek 

alternative fuel non-road equipment 

investment credit through its credit 

activity report. To allocate credit, DOE 

will need to know how much money 

was expended, the period or model year 

during which the investment was made, 

and on exactly what mobile equipment 

the investment was spent. Consistent 

with the definition of alternative fuel 

non-road equipment, a fleet requesting 

credit must certify that the equipment is 

being operated on alternative fuel, 

within the constraints of best practices 

and seasonal fuel availability. 

DOE acknowledges that a covered 

fleet’s investment in alternative fuel 

non-road equipment may not 

necessarily coincide with the fleet’s 

acquisition of the equipment. As with 

alternative fuel infrastructure, a fleet 

should seek credit in the model year in 

which the non-road equipment is put 

into operation. A fleet may combine the 

monetary amount invested in a 

particular model year in alternative fuel 

non-road equipment and alternative fuel 

infrastructure and/or emerging 

technology for the purpose of achieving 

an applicable investment credit 

threshold. 

c. Emerging Technology 

As discussed in Part III.B.8, credit for 

investments in emerging technology 

will be based on the development status 

of the relevant vehicle technologies. In 

EISA section 133, Congress instructed 

DOE to allocate credits for such 

emerging technology investments so as 

‘‘to encourage (i) a reduction in 

petroleum demand; (ii) technological 

advancement; and (iii) a reduction in 

vehicle emissions.’’ In DOE’s view, only 

by deploying the vehicle technologies 

listed in section 133 (i.e., hybrid electric 

vehicles, plug-in electric drive vehicles, 

neighborhood electric vehicles, fuel cell 

electric vehicles, and medium- or 

heavy-duty electric vehicles) before 

widespread commercial availability (or 

production) can necessary data from 

actual users be generated, including 

data related to performance and 

operating costs. If data show that no 

improvement is needed, then such data 

could assist future potential users in 

deciding whether to select the 

technology. 

DOE proposed that investments in 

pre-production versions of the EISAspecified vehicle types would earn 1 

credit for each $25,000 invested in one 

or more pre-production vehicles, up to 

a 5 credit limit (correlating with 

$125,000 invested), with expenditures 

on any remaining pre-production 

vehicles potentially counting as light 

duty AFV acquisitions. 

EDTA and EEI suggested either that 

the credit cap be raised to 25 or that 

there be no fleet-specific credit cap, but 

rather a Program-wide cap. Regarding 

the imposition of a credit cap and what 

the appropriate cap level should be, 

DOE again stresses that imposing a cap 

on the number of credits that may be 

earned is critical to ensuring proper 

functioning of the Program’s credit 

system. As for a Program-wide cap, DOE 

believes that such a cap would be 

inherently unfair, as only some fleets 

would be able to obtain credits for their 

investments in emerging technologies. 

Therefore, DOE is rejecting the 

suggestion of a Program-wide credit cap 

for investments in emerging technology. 

EEI also commented that DOE should 

apply a multiplier for credits for light 

duty emerging technology vehicles (x 

2.5) and also for medium-duty and 

heavy-duty emerging technology 

vehicles (x 5.0). DOE recognizes the 

importance of emerging technology 

vehicles as the means by which new 

advanced technology vehicles and 

alternative fuel vehicles reach 

production. Nonetheless, through EPAct 

section 508(b)(2)(B), Congress 

specifically authorized DOE to allocate 

credits for emerging technology in an 

amount of more than 1 but not to exceed 

5. Therefore, DOE lacks authority to 

provide additional credits beyond that 

which DOE proposed. Within the 

context of this limitation, this final rule 

establishes that an investment of a 

minimum of $125,000 in an emerging 

technology (i.e., a pre-production 

vehicle) yields 5 credits. 

In this final rule, DOE is making one 

minor change to what it proposed, 

namely that to earn any emerging 

technology credits, a $50,000 threshold 

must be met, at which point 2 credits 

will be allocated. DOE has selected the 

$50,000 threshold for several reasons. 

First, Congress specifically authorized 

DOE to provide more than 1 and not 

more than 5 credits for this category of 

investment. Therefore, DOE cannot 

provide 1 credit for $25,000 invested, 

but wishes to maintain the $25,000 

increments that are consistent across all 

investment categories in this rule. 

Moreover, the typical emerging 

technology investment will likely be far 

more than $25,000, so this change 

should be of little consequence in most 

cases. Once the $50,000 threshold is 

met, each of the next $25,000 

increments achieved will earn 1 

additional credit, up to a total of 5 

credits (or $125,000). Finally, as with 

investments in alternative fuel non-road 

equipment, the $25,000 increment is 

based on the average price of a new light 

duty AFV sold in the United States in 

2010, and consistent with the other 

investment-related credits, DOE will not 

allot fractional credits for investments 

in emerging technology. To illustrate the 

above criteria, a covered fleet spending 

$500,000 on the acquisition of 10 preproduction light duty PHEVs (i.e., 

$50,000 per PHEV) may obtain a total of 

12 credits; 5 credits for the expenditure 

of at least $125,000 to acquire three of 

the vehicles and 7 credits for the 

acquisition of the other seven light duty 

PHEVs (assuming they are AFVs). If, 

however, a single investment of $45,000 

were made, for example, no credits 

would be allocated because the $50,000 

threshold was not met. 

Fleets requesting credit under this 

provision will need to provide detailed 

information in order for DOE to verify 

the specific purposes of the subject 

investment, the number of credits the 

investment would qualify for, and that 

the investment has not been the subject 

of credit elsewhere under this program. 

Furthermore, eligibility for credits is 

dependent on the underlying vehicle 

technology still being considered 

‘‘emerging,’’ in accordance with the 

definition discussed in Part III.B.8 

above. Therefore, an investment that 

might be eligible for investment credit 

in one year might not be eligible the 

next year, if the underlying vehicle 

technology moves into commercial 

production. DOE acknowledges that a 

covered fleet’s investment in emerging 

technology may not necessarily coincide 

with the fleet’s acquisition of the 

technology. For consistency, however, a 

fleet will get credit for the year in which 

the emerging technology is put into 

operation. In addition, to be eligible for 

consideration of credit, the requesting 

fleet will have to have made the 

investment. Investments in emerging 

technologies by organizations not 

subject to the requirements of the AFTP 

will not be eligible for credits (e.g., 

payments to industry groups or 

associations or for education outreach, 

lobbying, or other similar activities for 

which the fleet has little or no control 

over the activity). Fleets will have to 

certify the accuracy of the information 

provided. 

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39Specifically with respect to 10 CFR 

490.205(b)(5)(iv) and 10 CFR 490.308(b)(5)(iv), DOE 

encourages covered fleets to submit a photocopy of 

the label that automobile manufacturers have been 

obligated to attach to the fuel compartment of their 

dual fueled automobiles since September 1, 2006. 

See EPAct 2005 section 759 (codified at 49 USC 

32905(f)). 

4. Summary of Credit Allocations and 

Implementation Requirements 

Set forth below is a table summarizing 

the credit allocations under this action. 

Summary Table of Credits 

CREDIT LEVELS UNDER STANDARD COMPLIANCE FOR ELECTRIC DRIVE VEHICLES NOT CLASSIFIED AS AFVS AND FOR

OTHER ACTIONS

Credit category Credit allotment Limitations/other 

HEV ............................................ 1⁄2 credit ..................................

PHEV .......................................... 1⁄2 credit ..................................

FCEV .......................................... 1⁄2 credit ..................................

NEV ............................................ 1⁄4 credit .................................. Not included in covered LDV count. 

Medium- or heavy-duty HEV ...... 1⁄2 credit .................................. Not included in covered LDV count. 

Alternative Fuel Infrastructure .... 1 credit per $25,000 invested* Maximum of 5 credits if private infrastructure, 10 credits if publicly-accessible infrastructure; credit allocated in model year placed into operation. 

Alternative Fuel Non-road Equipment.1 credit per $25,000 invested* Maximum of 5 credits if per fleet per model year. 

Emerging Technology ................. 2 credits for initial $50,000 invested and 1 credit per 

$25,000 thereafter, or 1 

credit per pre-production 

vehicle*.

Maximum of 5 credits if counting based on amount invested, per fleet per 

model year. 

* Aggregation of dollar amounts allowed. 

As indicated in the NOPR and as 

explained above, to receive credit for 

investments under EISA section 133, a 

covered fleet must provide DOE with a 

credit activity report. The credit activity 

report will also serve as the mechanism 

through which DOE will apportion 

credit for a fleet’s acquisition of any of 

the electric drive vehicles being 

allocated credit under this final rule. As 

specified in the regulatory text, for each 

such acquired vehicle, a covered fleet 

must include in its credit activity report 

the make and model, model year, 

vehicle identification number, and date 

of acquisition. These vehicle-specific 

details are virtually identical to the data 

that covered fleets already provide, as 

part of their Standard Compliance 

annual reports, for the AFVs they 

acquire each year. 

Since the Program’s inception, rather 

than formally requiring covered fleets to 

submit a credit activity report in order 

to obtain credits for excess (or early) 

AFV acquisitions, DOE has enabled 

fleets seeking to bank AFV credits as a 

result of these acquisitions (e.g., a light 

duty or a medium- or heavy-duty AFV 

acquired over and above the fleet’s light 

duty AFV-acquisition requirement) to 

submit the necessary information to 

DOE as part of their annual reports. 

Upon verification of the information, 

DOE has proceeded to add the 

appropriate number of banked credits to 

the respective fleet’s credit account. 

Under this final rule, covered fleets 

seeking to bank excess (or early) credits 

under Standard Compliance will no 

longer be able to submit only an annual 

report by the December 31 reporting 

deadline. Rather, any fleet seeking the 

allocation of credit under Subpart F of 

the AFTP regulations will have to 

provide DOE with a credit activity 

report. This includes not only fleets 

seeking credit for any of the investments 

(alternative fuel infrastructure, 

alternative fuel non-road equipment, 

emerging technology) and/or any of the 

electric drive vehicle acquisitions (nonAFV light duty HEVs, non-AFV light 

duty PHEVs, non-AFV light duty 

FCEVs, NEVs, non-AFV medium- or 

heavy-duty FCEVs, non-AFV mediumor heavy-duty HEVs) addressed in this 

action, but also fleets seeking to bank 

credits for their excess (or early) AFV 

acquisitions. In addition, DOE is adding 

regulatory language to make clear that 

fleets involved in a credit transfer and 

fleets that requested the application of 

banked credits likewise must provide 

DOE with a credit activity report. Credit 

transfer details have always been 

included in the credit activity reporting 

provision, and with regard to the 

application of banked credits, the new 

language merely reconciles the credit 

activity reporting provision with the 

AFTP’s annual reporting requirements. 

To minimize the reporting burden on 

covered fleets, DOE has revised its 

online annual reporting system (http:// 

www1.eere.energy.gov/vehiclesandfuels/

epact/annual_report.html.) and the 

annual report form (Form DOE/FCVT/

101: Standard Compliance Reporting 

Spreadsheet) so that the credit activity 

report is now incorporated in (i.e., a part 

of) the annual report. Importantly, this 

modification will not result in DOE 

receiving any information (except with 

regard to the EISA section 133 electric 

drive vehicles and investments) that it 

does not already receive from covered 

fleets. Corresponding revisions have 

been made to the regulatory provisions 

on annual reporting.39

D. Additional Program Modifications 

In the interest of ensuring continued 

efficient operation of the Program, DOE 

proposed a number of modifications 

that it believed would benefit 

stakeholders (i.e., covered fleets) and 

increase Program effectiveness. DOE 

today is finalizing most of these AFTP 

modifications, as discussed below. 

1. Timeliness of Exemption Request 

Submittals 

Based on the experience it has gained 

since the AFTP’s inception, DOE 

proposed to establish a five-month 

timeframe for the submission of 

exemption requests. Specifically, DOE 

proposed that a covered fleet may 

submit an exemption request no earlier 

than September 1 following the model 

year for which the exemption is sought 

and no later than January 31 following 

that model year. DOE also proposed to 

make clear that an exemption request 

must be preceded by the fleet’s annual 

report, and that if DOE seeks 

clarification or additional information 

pertaining to a submitted exemption 

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request, the concerned fleet must 

respond within 30 days of DOE’s 

inquiry. DOE proposed these changes to 

enhance the accuracy of exemption 

requests and minimize the need either 

for fleets to revise and resubmit their 

requests or for DOE to have to follow up 

with the requesting fleet. 

Only one commenter, EEI, addressed 

DOE’s proposed modifications on the 

timeliness of exemption requests. EEI 

supported the proposed changes. Hence, 

DOE is finalizing the five-month 

timeframe within which a covered fleet 

may seek exemptions under Standard 

Compliance, the necessity for a fleet’s 

exemption request to be preceded by its 

annual report, and the 30-day period for 

a fleet to provide clarification or 

additional information in response to a 

DOE inquiry. 

Going forward, if a covered fleet 

submits an exemption request during 

the subject model year (i.e., at any time 

prior to the model year’s close on 

August 31), DOE will inform the fleet’s 

point of contact (POC) by electronic 

mail that the exemption request is 

premature and will not be considered 

unless it is resubmitted after September 

1 and also after the fleet has filed its 

required annual report. Similarly, if a 

covered fleet submits an exemption 

request after January 31 following the 

subject model year, DOE will inform the 

POC by electronic mail that because the 

exemption request was submitted after 

the expiration of the five-month period, 

DOE considers the request invalid and, 

thus, will not provide a written 

determination under the applicable 

regulatory provisions. Finally, if a 

covered fleet does not respond to a DOE 

inquiry for additional information 

within 30 days, DOE will process the 

fleet’s exemption request based on the 

information DOE already has, which 

may not be sufficient to support the 

granting of the exemption request either 

in whole or in part. 

DOE expects no hardship to result 

from these changes. Additionally, DOE 

maintains that those covered fleets that 

file their annual reports by the 

December 31 annual reporting deadline 

will have at least a full month, which in 

DOE’s view is sufficient time, to prepare 

and submit an exemption request, 

although early submission of annual 

reports remains highly recommended. 

2. Program Credits and Exemption 

Requests 

In the NOPR, DOE explained that the 

purpose of the alternative fueled vehicle 

credit program in Subpart F of the AFTP 

regulations is to provide compliance 

flexibility to SFP fleets. DOE pointed 

out that since the AFTP’s creation, fleets 

have generated a significant number of 

banked credits. In fact, there are 

currently approximately 70,000 banked 

AFV credits in the system. Given that 

the average aggregate annual AFVacquisition requirement for covered 

fleets operating under the AFTP’s 

Standard Compliance method typically 

ranges from 10,000 to 14,000 AFVs, 

DOE estimates that the credits currently 

in the system would be sufficient to 

keep the AFTP operating—without 

covered fleets acquiring any AFVs—for 

at least four years. DOE also explained 

in the NOPR that covered fleets with a 

positive credit account balance often 

request exemptions from DOE. 

In an effort to limit the future growth 

of the store of banked AFV credits 

currently in the system and thereby 

ensure that those credits continue to 

have value for the fleets possessing 

them, DOE proposed three separate 

AFTP revisions. First, DOE proposed to 

add language to the regulatory provision 

on the use of AFV credits that would 

require covered fleets to use their own 

banked credits before requesting 

exemptions from DOE. Second, DOE 

proposed to require that a deficient fleet 

without sufficient banked credits to 

resolve the deficiency include in its 

annual report a description of all efforts 

made to acquire AFV credits on the 

credit market. Third, DOE proposed to 

add language stating that a fleet may not 

submit an exemption request within 90 

days of selling or trading any of its 

banked AFV credits. These proposals 

were based on DOE’s view that a request 

for exemptions amounts to 

administrative relief of the last resort 

(i.e., relief when a fleet cannot 

otherwise meet its annual AFVacquisition requirements), and sought to 

ensure that existing AFV credits get 

used for the very purpose for which 

they were generated. 

Three organizations (APGA, EEI, and 

FP&L) commented on these proposed 

changes. APGA agreed with DOE that 

there are an excessive number of banked 

credits in the system, and supported the 

proposal to require fleets to use their 

banked AFV credits before seeking 

exemptions. APGA also requested 

clarification of the annual reporting 

provision if deficient fleets would not 

be obligated to acquire credits. EEI and 

FP&L opposed the proposed changes. 

EEI contended that the revisions would 

hurt those fleets with fewer banked 

credits, and stated that the existing 

banking mechanism is important when 

AFVs that meet the business needs of a 

fleet are unavailable in a model year. 

FP&L argued that fleets should be 

rewarded for over-compliance, and 

opined that the acquisition of AFVs 

beyond the mandated levels serves to 

encourage the manufacture of AFVs. 

Based on the weight of the comments 

received and after consideration of the 

benefits of the three proposed credit 

provisions discussed above, DOE today 

is choosing not to finalize the proposed 

qualifications for the granting of 

exemptions. DOE has determined that 

the proposals would offer more rigorous 

compliance requirements without a 

sufficient benefit to the efficacy of the 

Program. 

3. Alternative Compliance 

As explained in the NOPR, DOE 

believes it is appropriate to have a 

single due date for complete Alternative 

Compliance waiver applications. DOE 

therefore proposed to remove 10 CFR 

section 490.805(b)(3) and establish in 

section 490.805(b)(2) a uniform 

application deadline such that all 

waiver applications would be due no 

later than July 31 prior to the model 

year for which a waiver is sought. DOE 

pointed out that the deadline for filing 

a notice of intent, March 31 prior to the 

model year for which a waiver is sought, 

would be unaffected by this change. 

The lone commenter to address this 

proposed revision, EEI, supported it. 

DOE is therefore finalizing the uniform 

Alternative Compliance waiver 

application deadline of July 31. 

Based on its implementation to date 

of the Alternative Compliance option, 

DOE also proposed amendments to 10 

CFR section 490.804(c) to clarify the 

steps for requesting the roll-over of 

excess petroleum reductions and/or the 

application of banked rollover 

reductions. DOE received no comments 

on these revisions, and is finalizing 

them. 

Under this final rule, a fleet wishing 

to roll over for future use the excess 

petroleum reductions that it achieved in 

a particular model year must make a 

written request to DOE as part of the 

fleet’s annual report for that model year, 

and DOE subsequently will inform the 

fleet of the amount that has been rolled 

over (i.e., banked). If a fleet seeks to 

apply any of its banked excess 

reductions to its petroleum reduction 

requirement in a later model year for 

which an Alternative Compliance 

waiver was also granted, the fleet 

likewise must include a written request 

as part of its annual report for that later 

model year. Before making a decision on 

a fleet’s request to apply rollover 

reductions, DOE may request additional 

information from the fleet. In the past, 

for example, DOE has queried whether 

a fleet that failed to meet its petroleum 

reduction requirement owned/operated 

any FFVs or other AFVs, and if so, 

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40See DOE, ‘‘Documentation Guidelines for 

Emergency Repair and Restoration Vehicle 

Exclusions’’ (Sept. 2009), available at http://

www1.eere.energy.gov/vehiclesandfuels/epact/pdfs/

section_707_guidance.pdf. 

41Note that beginning in MY 2014, a covered fleet 

could potentially meet 100% of its annual AFVacquisition requirements through a combination of 

non-AFV HEV acquisitions and biodiesel fuel use 

credits. 

whether it used E85 or some other 

alternative fuel (besides neat biodiesel). 

Such alternative fuel usage would 

reduce the quantity of banked gasoline 

gallon equivalents needed to be applied 

to offset the fleet’s shortfall. 

Finally, in the NOPR, DOE proposed 

a modification to 10 CFR section 

409.809 to address the situation in 

which DOE has revoked a fleet’s 

Alternative Compliance waiver. No 

organization commented on this 

revision, so DOE is finalizing it. Under 

revised section 490.809, a fleet whose 

waiver has been revoked is ineligible for 

any exemptions during that model year. 

4. Other Regulatory Revisions 

As part of the NOPR, DOE proposed 

to make the ‘‘emergency motor 

vehicles’’ exclusion in 10 CFR section 

490.3(e) consistent with the statutory 

language in section 301(9)(E) of EPAct 

1992, as amended, and to make minor 

technical amendments to several other 

AFTP regulatory provisions. DOE did 

not receive comments on any of these 

proposed changes, and is finalizing 

them. 

With respect to the emergency motor 

vehicles exclusion, DOE reminds SFP 

fleets that for a particular vehicle to be 

excluded, the fleet must submit a 

written exclusion request in accordance 

with DOE’s established guidance.40 The 

minor technical amendments being 

finalized today clarify the definitions of 

‘‘capable of being centrally fueled’’ and 

‘‘fleet’’ in 10 CFR section 490.2, correct 

an incorrect reference to a State’s rather 

than a covered person’s exemption 

request, and standardize the use of the 

terms ‘‘alternative fueled,’’ ‘‘dedicated,’’ 

and ‘‘dual fueled’’ in various regulatory 

provisions. 

5. Other Issues 

This final rule increases the number 

of creditable actions under the AFTP 

and, as a result, expands the range of 

available compliance options. In 

particular, credit will now be allocated 

to fleets for the acquisition of non-AFV 

HEVs, among other vehicles. DOE notes 

that non-AFV HEVs and the fuel on 

which they operate (i.e., gasoline) are 

widely available throughout the 

country. For this reason, DOE’s 

prospective approach to the granting of 

exemptions under the applicable 

regulatory provisions will be similar to 

its longstanding policy on biodiesel. 

Under that policy, unless a covered fleet 

seeking exemptions either indicates in 

its exemption request that it does not 

own or operate any or a sufficient 

number of medium-or heavy-duty diesel 

vehicles or demonstrates that biodiesel 

is unavailable to it, DOE limits the 

number of exemptions granted to no 

more than one-half of the fleet’s annual 

AFV-acquisition requirements, 

inasmuch as biodiesel fuel use credits 

may account for up to 50% of those 

annual requirements (10 CFR 

490.705(b)). Because non-AFV HEVs are 

widely available, DOE will also expect 

a covered fleet seeking exemptions for 

MY 2014 or thereafter to demonstrate in 

its exemption request why it was unable 

to acquire such HEVs and therefore 

meet at least 50% of its annual AFVacquisition requirements with such 

vehicles (due to the 1⁄2 credit allocated 

for each non-AFV HEV).41 Unless the 

fleet shows that HEVs were not 

available in the light duty vehicle type 

needed by the fleet, DOE will limit the 

number of exemptions granted based on 

a shortfall of non-AFV HEV 

acquisitions. 

IV. Compliance 

The approach that DOE is establishing 

today allocates less than one credit to 

certain vehicle types, and whole 

number values of credits for 

investments in alternative fuel 

infrastructure, alternative fuel non-road 

equipment, and relevant emerging 

technologies. DOE also is directing that 

when fleets report to DOE the total 

credits they have earned in a model 

year, they must total the credits, 

including all fractional credits earned 

for vehicle acquisitions, and round to 

the nearest whole number. In rounding 

to the nearest whole number, fractions 

greater than or equal to one half (0.5) 

should be rounded up and fractions less 

than one half should be rounded down. 

For example, DOE would approve 14 

credits for a fleet that submits 

appropriate documentation supporting 

its acquisition of AFVs and non-AFVs 

that total 131⁄2 or 133⁄4 credits. Similarly, 

DOE would approve 13 credits for a 

fleet that submits appropriate 

documentation supporting its 

acquisition of AFVs and non-AFVs that 

total 131⁄4 credits. This rounding 

approach to fractional credits is 

consistent with how fleets already 

round for purposes of calculating their 

AFV-acquisition requirements. 

Additionally, DOE notes that the 

section 133 credit provisions adopted in 

this final rule will apply to acquisitions 

and purchases in MY 2014 and all 

subsequent model years. 

V. Regulatory Review 

A. Review Under Executive Order 12866 

This rule has been determined not to 

be a ‘‘significant regulatory action’’ 

under section 3(f) of Executive Order 

12866, ‘‘Regulatory Planning and 

Review,’’ 58 FR 51735 (October 4, 1993). 

Accordingly, this action was not subject 

to review under that Executive Order by 

the Office of Information and Regulatory 

Affairs (OIRA) of the Office of 

Management and Budget (OMB). 

B. Review Under the Regulatory 

Flexibility Act 

The Regulatory Flexibility Act (RFA; 

5 U.S.C. 601 et seq.) requires the 

preparation of a regulatory flexibility 

analysis for any rule that by law must 

be proposed for public comment, unless 

the agency certifies that the rule, if 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities. As required by 

Executive Order 13272, ‘‘Proper 

Consideration of Small Entities in 

Agency Rulemaking,’’ 67 FR 53461 

(August 16, 2002), DOE published 

procedures and policies on February 19, 

2003, to ensure that the potential 

impacts of its rules on small entities are 

properly considered during the 

rulemaking process. 68 FR 7990. These 

procedures and policies are available at 

http://www.gc.doe.gov/documents/

eo13272.pdf. 

DOE has reviewed this rule under the 

provisions of the RFA and the 

procedures and policies published on 

February 19, 2003. The requirements in 

10 CFR part 490 apply to alternative fuel 

providers and State government entities 

that own, operate, lease, or otherwise 

control 50 or more non-excluded LDVs, 

at least 20 of which are centrally fueled 

or capable of being centrally fueled and 

are used primarily in a metropolitan 

statistical area (MSA) or consolidated 

MSA with a 1980 Census population of 

more than 250,000. DOE used the small 

business size standards to determine 

whether any small entities would be 

impacted by the proposed rule. Electric 

co-operatives and municipal utilities are 

classified under NAICS Code 221112, 

‘‘Fossil Fuel Electric Power 

Generation.’’ In this category, small 

entities are those for which the total 

electric output for the preceding fiscal 

year did not exceed 4 million megawatt 

hours. The same threshold applies for 

other types of electric power generation, 

including hydroelectric (Code 221111) 

and ‘‘other’’ electric power generation 

(Code 221119). Natural gas suppliers 

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(Code 221210) have a separate 

threshold, 500 employees. Analysis of 

the electric utilities and natural gas 

suppliers regulated under the Program 

identified at least 3 small entities that 

are required to report under the 

regulations. 

This final rule amends the process for 

demonstrating compliance in a number 

of ways, including primarily: 

(1) Offering credits for a variety of 

acquisitions and expenditures that did not 

previously receive credit, including the 

purchase of hybrid electric vehicles and 

investments in qualified alternative fuel 

infrastructure, non-road equipment, and 

emerging technologies related to specific 

vehicle types; and 

(2) Better aligning the timeframe for 

document submissions with the vehicle 

model year to obviate the need for amended 

reporting. 

Based on the scope of the rule 

provided above, DOE concludes that it 

will not have a significant economic 

impact on a substantial number of small 

entities. This rule provides additional 

compliance options under 10 CFR part 

490 by expanding credits under the 

existing AFTP, and therefore provides 

covered small entities additional 

flexibility in complying through 

acquisition of vehicles and investments 

to the extent that such acquisitions and 

investments are consistent with the 

business needs of the small entities. 

DOE’s certification and supporting 

statement of factual basis has been 

provided to the Chief Counsel for 

Advocacy of the Small Business 

Administration pursuant to 5 U.S.C. 

605(b). 

C. Review Under the Paperwork 

Reduction Act of 1995 

Under the Paperwork Reduction Act 

of 1995 (PRA; 44 U.S.C. 3501 et seq.) 

and the regulations implementing the 

PRA, 5 CFR 1320.1 et seq., a ‘‘person’’ 

is not required to respond to a 

‘‘collection of information’’ unless it 

displays a currently valid OMB control 

number. 

The information collection 

requirements associated with the 

AFTP’s annual report(s) were previously 

approved under OMB Control Number 

1910–5101. This rule includes an 

additional collection of information that 

is subject to review by OMB under the 

PRA, specifically documentation to 

support the allocation of credits through 

use of the AFTP’s annual reporting 

form, DOE/FCVT/101, Standard 

Compliance Reporting Spreadsheet. 

OMB has approved this additional 

information collection under existing 

OMB Control Number 1910–5101. 

Under this final rule, specifically 10 

CFR 490.508 (‘‘Credit activity reporting 

requirements’’), DOE will collect 

information regarding electric drive 

vehicle acquisitions and investments in 

refueling infrastructure, alternative fuel 

non-road equipment, and emerging 

technology when fleets choose to submit 

such information in support of their 

compliance requirements and in seeking 

to bank credits for such acquisitions and 

investments. 

DOE estimates that all covered fleets 

may seek to earn credits for acquiring 

electric drive vehicles, but that fewer 

fleets will seek to earn credits for 

investing in alternative fuel 

infrastructure, alternative fuel non-road 

equipment, and emerging technology. 

DOE estimates that a covered fleet 

seeking credits for both acquiring 

electric drive vehicles and for investing 

in alternative fuel infrastructure, 

alternative fuel non-road equipment, 

and emerging technology would expend 

1 additional hour to comply with the 

reporting requirements of 10 CFR 

490.508. 

DOE estimates the total annual costs 

to a covered fleet that seeks credits 

under this final rule are minimal, 

particularly given that the fleet is 

already submitting an annual report to 

achieve compliance with Program 

requirements, and that information it 

would submit for the acquisition of one 

vehicle type would simply replace 

information it would otherwise submit 

for a different vehicle type. 

D. Review Under the National 

Environmental Policy Act 

DOE has determined that this rule is 

covered under the Categorical Exclusion 

found in DOE’s National Environmental 

Policy Act regulations at paragraph A5 

of Appendix A to Subpart D, 10 CFR 

part 1021, which applies to any 

rulemaking amending an existing rule or 

regulation that does not change the 

environmental effect of the rule or 

regulation being amended. Under this 

rule, covered fleets would be able to 

earn credits for the acquisition of 

specified electric drive vehicles and for 

investments in alternative fuel 

infrastructure, non-road equipment, and 

relevant emerging technologies, 

activities for which they may not earn 

credits under the existing AFTP. The 

rule has been structured to ensure that 

the petroleum reductions achieved by 

the AFTP in the future would be 

equivalent to those achieved in past 

years. Because the rule would not 

change the environmental effect of 

compliance with 10 CFR part 490, 

neither an environmental assessment 

nor an environmental impact statement 

is required. 

E. Review Under Executive Order 12988 

With respect to the review of existing 

regulations and the promulgation of 

new regulations, section 3(a) of 

Executive Order 12988, ‘‘Civil Justice 

Reform,’’ 61 FR 4729 (February 7, 1996), 

imposes on Federal agencies the general 

duty to adhere to the following 

requirements: (1) Eliminate drafting 

errors and ambiguity; (2) write 

regulations to minimize litigation; and 

(3) provide a clear legal standard for 

affected conduct rather than a general 

standard and promote simplification 

and burden reduction. Section 3(b) of 

Executive Order 12988 specifically 

requires that Federal agencies make 

every reasonable effort to ensure that the 

regulation: (1) Clearly specifies the 

preemptive effect, if any; (2) clearly 

specifies any effect on existing Federal 

law or regulation; (3) provides a clear 

legal standard for affected conduct 

while promoting simplification and 

burden reduction; (4) specifies the 

retroactive effect, if any; (5) adequately 

defines key terms; and (6) addresses 

other important issues affecting clarity 

and general draftsmanship under any 

guidelines issued by the Attorney 

General. Section 3(c) of Executive Order 

12988 requires Federal agencies to 

review regulations in light of the 

applicable standards in sections 3(a) 

and 3(b) to determine whether those 

standards are met or it is unreasonable 

to meet one or more of them. DOE has 

completed the required review and 

determined that, to the extent permitted 

by law, this rule meets the relevant 

standards of Executive Order 12988. 

F. Review Under Executive Order 13132 

Executive Order 13132, ‘‘Federalism,’’ 

64 FR 43255 (August 10, 1999), imposes 

certain requirements on agencies 

formulating and implementing policies 

or regulations that preempt State law or 

that have federalism implications. 

Agencies are required to examine the 

constitutional and statutory authority 

supporting any action that would limit 

the policymaking discretion of the 

States and carefully assess the necessity 

for such actions. DOE has examined this 

rule and determined that it would not 

preempt State law and would not have 

a substantial direct effect on the States, 

on the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. This rule provides 

additional compliance options under 10 

CFR part 490 by expanding credits 

under the existing AFTP, and therefore 

provides covered state fleets additional 

flexibility in complying through 

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acquisition of vehicles and investments 

to the extent that such acquisitions and 

investments are consistent with the 

business needs of the covered state 

fleets. Therefore, no further action is 

required by Executive Order 13132. 

G. Review Under the Unfunded 

Mandates Reform Act of 1995 

DOE reviewed this rule under Title II 

of the Unfunded Mandates Reform Act 

of 1995 (UMRA; Pub. L. 104–4), which 

requires each Federal agency to assess 

the effects of its regulatory actions on 

State, local, and tribal governments and 

the private sector. For a regulatory 

action likely to result in the 

promulgation of a rule that includes a 

Federal mandate that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year (adjusted annually for 

inflation), section 202 of UMRA requires 

the agency to prepare a written 

statement assessing the resulting costs, 

benefits, and other effects of the rule on 

the national economy (2 U.S.C. 1532(a) 

and (b)). UMRA also requires a Federal 

agency to develop an effective process 

to permit meaningful and timely input 

by elected officers of State, local, and 

tribal governments on any proposal 

containing a ‘‘significant Federal 

intergovernmental mandate,’’ and 

requires an agency to develop a plan for 

providing potentially affected small 

governments with notice and an 

opportunity for timely input prior to the 

establishment of any regulatory 

requirements that might significantly or 

uniquely affect small governments (2 

U.S.C. 1533 and 1534). On March 18, 

1997, DOE published a statement of 

policy on its process for 

intergovernmental consultation under 

UMRA (62 FR 12820) (also available at 

http://www.gc.doe.gov). 

This rule provides additional 

compliance options under 10 CFR part 

490 by expanding credits under the 

existing AFTP, and therefore contains 

neither an intergovernmental mandate 

nor a private sector mandate that may 

result in the expenditure by State, local, 

and tribal governments, in the aggregate, 

or by the private sector, of $100 million 

or more in any year. Accordingly, no 

assessment or analysis is required under 

UMRA. 

H. Review Under the Treasury and 

General Government Appropriations 

Act, 1999 

Section 654 of the Treasury and 

General Government Appropriations 

Act, 1999 (Pub. L. 105–277) requires 

Federal agencies to issue a Family 

Policymaking Assessment for any rule 

that may affect family well-being. This 

rule would not have any impact on the 

autonomy or integrity of the family as 

an institution. Accordingly, DOE has 

concluded that it is not necessary to 

prepare a Family Policymaking 

Assessment. 

I. Review Under the Treasury and 

General Government Appropriations 

Act, 2001 

The Treasury and General 

Government Appropriations Act, 2001 

(44 U.S.C. 3516 note) provides for 

agencies to review most disseminations 

of information to the public under 

guidelines established by each agency 

pursuant to general guidelines issued by 

OMB. OMB’s guidelines were published 

at 67 FR 8452 (February 22, 2002), and 

DOE’s guidelines were published at 67 

FR 62446 (October 7, 2002). DOE has 

reviewed this rule under the OMB and 

DOE guidelines, and has concluded that 

it is consistent with applicable policies 

in those guidelines. 

J. Review Under Executive Order 13211 

Executive Order 13211, ‘‘Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use,’’ 66 FR 28355 (May 

22, 2001), requires Federal agencies to 

prepare and submit to OIRA a Statement 

of Energy Effects for any significant 

energy action. A ‘‘significant energy 

action’’ is defined as any action by an 

agency that promulgates or is expected 

to lead to the promulgation of a final 

rule or regulation, and that: (1) Is a 

significant regulatory action under 

Executive Order 12866, or any successor 

order; and (2) is likely to have a 

significant adverse effect on the supply, 

distribution, or use of energy; or (3) is 

designated by the Administrator of 

OIRA as a significant energy action. The 

Statement of Energy Effects must 

discuss any adverse effects on energy 

supply, distribution, or use should the 

proposal be implemented, and 

reasonable alternatives to the action and 

their expected benefits on energy 

supply, distribution, and use. 

As discussed in Part V.A above, this 

rule has been determined not to be a 

‘‘significant regulatory action’’ under 

Executive Order 12866. In addition, this 

final rule provides additional 

compliance options under the AFTP 

that support reduced petroleum use in 

vehicle fleets. As such, the rule will not 

have a significant adverse effect on the 

supply, distribution, or use of energy 

and, therefore, is not a significant 

energy action. Additionally, OIRA has 

not designated this action as a 

significant energy action. Accordingly, 

DOE has not prepared a Statement of 

Energy Effects. 

K. Congressional Notification 

As required by 5 U.S.C. 801, DOE will 

report to Congress on the promulgation 

of this rule prior to its effective date. 

The report will state that it has been 

determined that the rule is not a ‘‘major 

rule’’ as defined by 5 U.S.C. 804(2). 

List of Subjects in 10 CFR Part 490 

Administrative practice and 

procedure, Energy conservation, Fuel 

economy, Gasoline, Motor vehicles, 

Natural gas, Penalties, Petroleum, 

Reporting and recordkeeping 

requirements. 

Issued in Washington, DC, on March 12, 

2014. 

David T. Danielson, 

Assistant Secretary, Energy Efficiency and 

Renewable Energy. 

For the reasons set forth in the 

preamble, DOE amends part 490 of Title 

10, Code of Federal Regulations as set 

forth below: 

PART 490—ALTERNATIVE FUEL 

TRANSPORTATION PROGRAM 

■ 1. The authority citation for part 490 

continues to read as follows: 

Authority: 42 U.S.C. 7191 et seq.; 42 

U.S.C. 13201, 13211, 13220, 13251 et seq. 

Subpart A —[Amended] 

■ 2. Section 490.1 is amended by 

revising paragraph (a) to read as follows: 

§ 490.1 Purpose and scope. 

(a) The provisions of this part 

implement the alternative fuel 

transportation program for State 

government and alternative fuel 

provider fleets under titles III, IV, and 

V of the Energy Policy Act of 1992 (Pub. 

L. 102–486). 

* * * * * 

■ 3. Section 490.2 is amended by: 

■ a. Adding ‘‘, including liquid fuels 

domestically produced from natural 

gas’’ after the words ‘‘natural gas’’ in the 

definition of ‘‘Alternative Fuel’’. 

■ b. Removing the definitions of 

‘‘Electric-hybrid Vehicle,’’ ‘‘Electric 

Motor Vehicle,’’ and ‘‘Flexible Fuel 

Vehicle’’. 

■ c. Revising the definitions of 

‘‘Alternative Fueled Vehicle,’’ 

‘‘Automobile,’’ ‘‘Capable of Being 

Centrally Fueled,’’ ‘‘Dedicated Vehicle,’’ 

‘‘Dual Fueled Vehicle,’’ and ‘‘Fleet’’. 

■ d. Adding the definition of ‘‘Work 

Truck’’ in alphabetical order. 

The additions and revisions read as 

follows: 

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§ 490.2 Definitions. 

* * * * * 

Alternative Fueled Vehicle means a 

dedicated vehicle or a dual fueled 

vehicle, as those terms are defined in 

this section. 

* * * * * 

Automobile means a 4-wheeled 

vehicle that is propelled by 

conventional fuel, or by alternative fuel, 

manufactured primarily for use on 

public streets, roads, and highways and 

having a gross vehicle weight rating of 

less than 10,000 pounds, except: 

(1) A vehicle operated only on a rail 

line; 

(2) A vehicle manufactured in 

different stages by two or more original 

equipment manufacturers, if no 

intermediate or final-stage original 

equipment manufacturer of that vehicle 

manufactures more than 10,000 multistage vehicles per year; or 

(3) A work truck, as that term is 

defined in this section. 

Capable of Being Centrally Fueled 

means that a vehicle can be fueled at 

least 75 percent of the time at a location 

that is owned, operated, or controlled by 

the fleet or covered person, or at a 

location that is under contract with the 

fleet or covered person for fueling 

purposes. 

* * * * * 

Dedicated Vehicle means— 

(1) An automobile that operates solely 

on one or more alternative fuels; or 

(2) A motor vehicle, other than an 

automobile, that operates solely on one 

or more alternative fuels. 

Dual Fueled Vehicle means— 

(1) An automobile that meets the 

criteria for a dual fueled automobile as 

set forth in 49 U.S.C. 32901(a)(9); or 

(2) A motor vehicle, other than an 

automobile, that is capable of operating 

on alternative fuel and on gasoline or 

diesel. 

* * * * * 

Fleet means a group of 20 or more 

light duty motor vehicles, excluding 

certain categories of vehicles as 

provided by § 490.3, used primarily in 

a metropolitan statistical area or 

consolidated metropolitan statistical 

area, as established by the Bureau of the 

Census as of December 31, 1992, with a 

1980 Census population of more than 

250,000 (listed in Appendix A to this 

subpart), that are centrally fueled or 

capable of being centrally fueled, and 

are owned, operated, leased, or 

otherwise controlled— 

(1) By a person who owns, operates, 

leases, or otherwise controls 50 or more 

light duty motor vehicles within the 

United States and its possessions and 

territories; 

(2) By any person who controls such 

person; 

(3) By any person controlled by such 

person; or 

(4) By any person under common 

control with such person. 

* * * * * 

Work Truck means a vehicle having a 

gross vehicle weight rating of more than 

8,500 and less than or equal to 10,000 

pounds that is not a medium-duty 

passenger vehicle as that term is defined 

in 40 CFR 86.1803–01. 

■ 4. Section 490.3, paragraph (e), is 

revised to read as follows: 

§ 490.3 Excluded vehicles. 

* * * * * 

(e) Emergency motor vehicles, 

including vehicles directly used in the 

emergency repair of transmission lines 

and in the restoration of electricity 

service following power outages, as 

determined by DOE; 

* * * * * 

Subpart C—[Amended] 

■ 5. Section 490.202, paragraph (a), is 

revised to read as follows: 

§ 490.202 Acquisitions satisfying the 

mandate. 

* * * * * 

(a) The purchase or lease of an 

Original Equipment Manufacturer light 

duty vehicle (regardless of the model 

year of manufacture) that is an 

alternative fueled vehicle and that was 

not previously under the control of the 

State or State agency; 

* * * * * 

■ 6. Section 490.204 is amended by: 

■ a. Revising paragraph (b); 

■ b. Redesignating paragraphs (g) 

through (h) as paragraphs (h) through 

(i); and 

■ c. Adding new paragraph (g). 

The revision and additions read as 

follows: 

§ 490.204 Process for granting 

exemptions. 

* * * * * 

(b) Requests for exemption must be 

accompanied by supporting 

documentation, must be submitted no 

earlier than September 1 following the 

model year for which the exemption is 

sought and no later than January 31 

following the model year for which the 

exemption is sought, and will only be 

considered following submission of the 

annual report under § 490.205. 

* * * * * 

(g) If DOE, in response to a request for 

exemption, seeks clarification or 

additional information from the State, 

such clarification or additional 

information must be submitted to DOE 

in accordance with paragraph (f) of this 

section within 30 days of DOE’s inquiry. 

In the event a State does not comply 

with this timeframe, DOE will proceed 

under paragraph (h) of this section 

based on the documentation provided to 

date. 

* * * * * 

■ 7. Section 490.205 is amended by: 

■ a. Revising paragraphs (b)(4), 

(b)(5)(iv), (b)(5)(v), and (c); and 

■ b. Adding new paragraphs (b)(5)(vi) 

through (vii). 

The revisions and additions read as 

follows: 

§ 490.205 Reporting requirements. 

* * * * * 

(b) * * * 

(4) Number of alternative fueled 

vehicle credits applied towards 

acquisition requirements pursuant to 

§ 490.505; 

(5) * * * 

(iv) An indication of whether the 

vehicle is a dedicated vehicle or a dual 

fueled vehicle; 

(v) Type(s) of alternative fuel on 

which the vehicle is capable of 

operating; 

(vi) Acquisition date; and 

(vii) If the annual report shows that 

the State fleet did not satisfy its 

alternative fueled vehicle acquisition 

mandate, an indication of whether the 

fleet intends to submit a request for 

exemption under § 490.204; and 

* * * * * 

(c) If banked alternative fueled vehicle 

credits are applied towards a State’s 

alternative fueled vehicle acquisition 

requirements pursuant to § 490.505, or if 

allocation of alternative fueled vehicle 

credits is sought under subpart F of this 

part, then a credit activity report, as 

described in § 490.508, must be 

included with the annual report 

submitted under this section. 

* * * * * 

Subpart D—[Amended] 

§ 490.302 [Amended] 

■ 8. Section 490.302 is amended by 

removing the reference ‘‘section 

490.308’’ in paragraph (e) and adding in 

its place ‘‘§ 490.307.’’ 

■ 9. Section 490.305, paragraph (a), is 

revised to read as follows: 

§ 490.305 Acquisitions satisfying the 

mandate. 

* * * * * 

■ (a) The purchase or lease of an 

Original Equipment Manufacturer light 

duty vehicle (regardless of the model 

year of manufacture) that is an 

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alternative fueled vehicle and that was 

not previously under the control of the 

covered person; 

* * * * * 

§ 490.307 [Removed] 

■ 10. Section 490.307 is removed. 

§ 490.308 [Redesignated as § 490.307] 

■ 11. Section 490.308 is redesignated as 

§ 490.307 and newly redesignated 

§ 490.307 is amended by: 

■ a. Adding ‘‘(1)’’ after the letter ‘‘(a)’’ in 

paragraph (a); 

■ b. Adding new paragraphs (a)(2) and 

(c)(4); and 

■ c. Removing, in paragraph (f), the 

word ‘‘State’s’’ and adding in its place, 

‘‘covered person’s’’. 

The additions read as follows: 

§ 490.307 Process for granting 

exemptions. 

(a)(1) * * * 

(2) Requests for exemption must be 

accompanied by supporting 

documentation, must be submitted no 

earlier than September 1 following the 

model year for which the exemption is 

sought and no later than January 31 

following the model year for which the 

exemption is sought, and will only be 

considered following submission of the 

annual report under § 490.308. 

* * * * * 

(c) * * * 

(4) If DOE, in response to a request for 

exemption, seeks clarification or 

additional information from the covered 

person, such clarification or additional 

information must be submitted to DOE 

in accordance with paragraph (a) of this 

section within 30 days of DOE’s inquiry. 

In the event a covered person does not 

comply with this timeframe, DOE will 

proceed under paragraph (f) of this 

section based on the documentation 

provided to date. 

* * * * * 

§ 490.309 [Redesignated as § 490.308] 

■ 12. Section 490.309 is redesignated as 

§ 490.308, and newly redesignated 

§ 490.308 is amended by: 

■ a. Removing ‘‘or section 490.307,’’ 

from paragraph (a); 

■ b. Revising paragraphs (b)(4), 

(b)(5)(iv), (b)(5)(v), and (c); and 

■ c. Adding new paragraphs (b)(5)(vi) 

through (vii). 

The revisions and additions read as 

follows: 

§ 490.308 Annual reporting requirements. 

* * * * * 

(b) * * * 

(4) Number of alternative fueled 

vehicle credits applied towards 

acquisition requirements pursuant to 

§ 490.505; 

(5) * * * 

(iv) An indication of whether the 

vehicle is a dedicated vehicle or a dual 

fueled vehicle; 

(v) Type(s) of alternative fuel on 

which the vehicle is capable of 

operating; 

(vi) Acquisition date; and 

(vii) If the annual report shows that 

the covered person did not satisfy its 

alternative fueled vehicle acquisition 

mandate, an indication of whether the 

covered person intends to submit a 

request for exemption under § 490.307. 

(c) If banked alternative fueled vehicle 

credits are applied towards a covered 

person’s alternative fueled vehicle 

acquisition requirements pursuant to 

§ 490.505, or if allocation of alternative 

fueled vehicle credits is sought under 

subpart F of this part, then a credit 

activity report, as described in 

§ 490.508, must be included with the 

annual report submitted under this 

section. 

* * * * * 

§ 490.310 [Redesignated as § 490.309] 

■ 13. Section 490.310 is redesignated as 

§ 490.309. 

Subpart F—[Amended] 

■ 14. Section 490.500 is revised to read 

as follows: 

§ 490.500 Purpose and scope. 

This subpart implements the statutory 

requirements of section 508 of the Act, 

which provides for the allocation of 

credits to fleets or covered persons that: 

(a) Acquire alternative fueled vehicles 

in excess of the number they are 

required to acquire under this part or 

obtain alternative fueled vehicles before 

the model year when they are required 

to do so under this part; 

(b) Acquire certain other vehicles as 

identified in this subpart; or 

(c) Invest in qualified alternative fuel 

infrastructure or non-road equipment or 

an emerging technology. 

■ 15. Section 490.501 is revised to read 

as follows: 

§ 490.501 Definitions. 

In addition to the definitions found in 

§ 490.2, the following definitions apply 

to this subpart: 

Alternative Fuel Infrastructure means 

property that is for: 

(1) The storage and dispensing of an 

alternative fuel into the fuel tank of a 

motor vehicle propelled by such fuel; or 

(2) The recharging of motor vehicles 

or neighborhood electric vehicles 

propelled by electricity. 

Alternative Fuel Non-road Equipment 

means mobile, non-road equipment that 

operates on alternative fuel (including 

but not limited to forklifts, tractors, 

bulldozers, backhoes, front-end loaders, 

and rollers/compactors). 

Emerging Technology means a preproduction or pre-commercially 

available version of a fuel cell electric 

vehicle, hybrid electric vehicle, 

medium- or heavy-duty electric vehicle, 

medium- or heavy-duty fuel cell electric 

vehicle, neighborhood electric vehicle, 

or plug-in electric drive vehicle, as such 

vehicles are defined in this section. 

Fuel Cell Electric Vehicle means a 

motor vehicle or non-road vehicle that 

uses a fuel cell, as that term is defined 

in section 803 of the Spark M. 

Matsunaga Hydrogen Act of 2005 (42 

U.S.C. 16152(1)). 

Hybrid Electric Vehicle means a new 

qualified hybrid motor vehicle as 

defined in section 30B(d)(3) of the 

Internal Revenue Code of 1986 (26 

U.S.C. 30B(d)(3)). 

Medium- or Heavy-Duty Electric 

Vehicle means an electric, hybrid 

electric, or plug-in hybrid electric 

vehicle with a gross vehicle weight 

rating of more than 8,500 pounds. 

Medium- or Heavy-Duty Fuel Cell 

Electric Vehicle means a fuel cell 

electric vehicle with a gross vehicle 

weight rating of more than 8,500 

pounds. 

Neighborhood Electric Vehicle means 

a 4-wheeled on-road or non-road vehicle 

that— 

(1) Has a top attainable speed in 1 

mile of more than 20 mph and not more 

than 25 mph on a paved level surface; 

and 

(2) Is propelled by an electric motor 

and an on-board, rechargeable energy 

storage system that is rechargeable using 

an off-board source of electricity. 

Plug-in Electric Drive Vehicle means a 

vehicle that— 

(1) Draws motive power from a battery 

with a capacity of at least 4 kilowatthours; 

(2) Can be recharged from an external 

source of electricity for motive power; 

(3) Is a light-, medium-, or heavy-duty 

motor vehicle or non-road vehicle, as 

those terms are defined in section 216 

of the Clean Air Act (42 U.S.C. 7550); 

and 

(4) In the case of a plug-in hybrid 

electric vehicle, also includes an onboard method of charging the energy 

storage system and/or providing motive 

power. 

■ 16. Section 490.502 is revised to read 

as follows: 

§ 490.502 Applicability. 

This subpart applies to all fleets and 

covered persons that are required to 

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acquire alternative fueled vehicles by 

this part. 

■ 17. Section 490.503 is revised to read 

as follows: 

§ 490.503 Creditable actions. 

A fleet or covered person becomes 

entitled to alternative fueled vehicle 

credits, at the allocation levels specified 

in § 490.504, by: 

(a)(1) Acquiring light duty alternative 

fueled vehicles, including those in 

excluded categories under § 490.3, in 

excess of the number of light duty 

alternative fueled vehicles that the fleet 

or covered person is required to acquire 

under § 490.201 or § 490.302; 

(2) Acquiring alternative fueled 

vehicles, including those in excluded 

categories under § 490.3, with a gross 

vehicle weight rating of more than 8,500 

pounds, in excess of the number of light 

duty alternative fueled vehicles that the 

fleet or covered person is required to 

acquire under § 490.201 or § 490.302; 

(3) Acquiring in model year 2014 or 

in any model year thereafter, any of the 

following vehicles in excess of the 

number of light duty alternative fueled 

vehicles that the fleet or covered person 

is required to acquire under § 490.201 or 

§ 490.302: 

(i) Medium- or heavy-duty fuel cell 

electric vehicles that are not alternative 

fueled vehicles; or 

(ii) Medium- or heavy-duty electric 

vehicles that are not alternative fueled 

vehicles; 

(b) Acquiring alternative fueled 

vehicles, including those in excluded 

categories under § 490.3 and those with 

a gross vehicle weight rating of more 

than 8,500 pounds, in model years 

before the model year when that fleet or 

covered person is first required to 

acquire light duty alternative fueled 

vehicles under § 490.201 or § 490.302; 

(c) Investing, during a model year that 

is model year 2014 or thereafter and is 

also a model year in which 

requirements under this part apply to 

the fleet or covered person, at least 

$25,000 in alternative fuel infrastructure 

or alternative fuel non-road equipment, 

or at least $50,000 in an emerging 

technology, provided that: 

(1) The emerging technology, 

alternative fuel infrastructure, or 

alternative fuel non-road equipment is 

put into operation during the year in 

which the fleet or covered person has 

applied for credits; 

(2) In the case of an emerging 

technology, the amount invested by the 

fleet or covered person is not the basis 

for credit under paragraphs (a), (b), or 

(d) of this section; and 

(3) In the case of alternative fuel nonroad equipment, the equipment is being 

operated on alternative fuel, within the 

constraints of best practices and 

seasonal fuel availability; or 

(d) Acquiring, during a model year 

that is model year 2014 or thereafter and 

is also a model year in which 

requirements under this part apply to 

the fleet or covered person, any of the 

following vehicles, including those in 

excluded categories under § 490.3: 

(1) A hybrid electric vehicle that is a 

light duty motor vehicle, but that is not 

an alternative fueled vehicle; 

(2) A plug-in electric drive vehicle 

that is a light duty motor vehicle, but 

that is not an alternative fueled vehicle; 

(3) A fuel cell electric vehicle that is 

a light duty motor vehicle, but that is 

not an alternative fueled vehicle; or 

(4) A neighborhood electric vehicle. 

(e) For purposes of this subpart, a fleet 

or covered person that acquired a motor 

vehicle on or after October 24, 1992, and 

converted it to an alternative fueled 

vehicle before April 15, 1996, shall be 

entitled to a credit for that vehicle 

notwithstanding the time limit on 

conversions established by §§ 490.202(c) 

and 490.305(c). 

■ 18. Section 490.504 is revised to read 

as follows: 

§ 490.504 Credit allocation. 

(a) Based on annual credit activity 

report information, as described in 

§ 490.508, DOE shall allocate: 

(1) One alternative fueled vehicle 

credit for each alternative fueled 

vehicle, regardless of the vehicle’s gross 

vehicle weight rating, that a fleet or 

covered person acquires in excess of the 

number of light duty alternative fueled 

vehicles that the fleet or covered person 

is required to acquire under § 490.201 or 

§ 490.302; and 

(2) One-half of an alternative fueled 

vehicle credit for each medium- or 

heavy-duty fuel cell electric vehicle that 

is not an alternative fueled vehicle and 

each medium- or heavy-duty electric 

vehicle that is not an alternative fueled 

vehicle, either or both of which a fleet 

or covered person acquires in excess of 

the number of light duty alternative 

fueled vehicles that the fleet or covered 

person is required to acquire under 

§ 490.201 or § 490.302. 

(b) If an alternative fueled vehicle, 

regardless of the vehicle’s gross vehicle 

weight rating, is acquired by a fleet or 

covered person in a model year before 

the first model year that the fleet or 

covered person is required to acquire 

light duty alternative fueled vehicles by 

this part, as reported in the annual 

credit activity report, DOE shall allocate 

one credit per alternative fueled vehicle 

for each year the alternative fueled 

vehicle is acquired before the model 

year when acquisition requirements 

apply. 

(c) DOE shall allocate credits to fleets 

and covered persons under paragraph 

(b) of this section only for alternative 

fueled vehicles acquired on or after 

October 24, 1992. 

(d) Based on annual credit activity 

report information, as described in 

§ 490.508, DOE shall allocate alternative 

fueled vehicle credit in the amount set 

forth below for the associated creditable 

actions that a fleet or covered person 

undertakes as described in § 490.503(d): 

(1) A hybrid electric vehicle that is a 

light duty motor vehicle, but that is not 

an alternative fueled vehicle—1⁄2 credit; 

(2) A plug-in electric drive vehicle 

that is a light duty motor vehicle, but 

that is not an alternative fueled 

vehicle—1⁄2 credit; 

(3) A fuel cell electric vehicle that is 

a light duty motor vehicle, but that is 

not an alternative fueled vehicle—1⁄2

credit; and 

(4) A neighborhood electric vehicle— 1⁄4 credit. 

(e) Based on annual credit activity 

report information, as described in 

§ 490.508, DOE shall allocate one 

alternative fueled vehicle credit for 

every $25,000 that a fleet or covered 

person invests, as described in 

§ 490.503(c), in: 

(1) Alternative fuel infrastructure that 

is: 

(i) Publicly accessible, provided that 

the maximum number of credits under 

this paragraph shall not exceed ten for 

the model year and the alternative fuel 

infrastructure became operational in the 

same model year, and provided further 

that the total number of credits allocated 

under this paragraph (e)(1)(i) and 

paragraph (e)(1)(ii) of this section do not 

exceed ten in a given model year; or 

(ii) Not publicly accessible, provided 

that the maximum number of credits 

under this paragraph shall not exceed 

five for the model year and the 

alternative fuel infrastructure became 

operational in the same model year, and 

provided further that the total number 

of credits allocated under this paragraph 

(e)(1)(ii) and paragraph (e)(1)(i) of this 

section do not exceed ten in a given 

model year; or 

(2) Alternative fuel non-road 

equipment, provided that the maximum 

number of credits under this paragraph 

(e)(2) shall not exceed five for the model 

year, and provided further that the 

equipment is being operated on 

alternative fuel. 

(f) Based on annual credit activity 

report information, as described in 

§ 490.508 of this subpart, DOE shall 

allocate two alternative fueled vehicle 

credits for the first $50,000, and one 

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alternative fueled vehicle credit for 

every $25,000 thereafter, that a fleet or 

covered person invests, as described in 

§ 490.503(c), in emerging technology, 

provided that the maximum number of 

credits under this paragraph (f) shall not 

exceed five for the model year, and 

provided further that the amount for 

which credit is allocated under this 

paragraph has not been the basis for 

credit allocation under paragraphs (a), 

(b), or (d) of this section. 

(g) A fleet or covered person may 

aggregate the amount of money invested 

in alternative fuel infrastructure, 

alternative fuel non-road equipment, 

and emerging technology such that 

funds from multiple categories may be 

used to achieve the applicable threshold 

for the purpose of earning an alternative 

fueled vehicle credit, so long as no 

funds are aggregated from a category for 

which the fleet has already been 

allocated the maximum number of 

credits allowed for that category, as set 

forth in paragraphs (e) and (f) of this 

section. 

■ 19. Section 490.505 is revised to read 

as follows: 

§ 490.505 Use of alternative fueled vehicle 

credits. 

At the request of a fleet or covered 

person in an annual report under 

subpart C or D of this part, DOE shall 

treat each banked alternative fueled 

vehicle credit as the acquisition of an 

alternative fueled vehicle that the fleet 

or covered person is required to acquire 

under this part. Each full credit shall 

count as the acquisition of one 

alternative fueled vehicle in the model 

year for which the fleet or covered 

person requests that the credit be 

applied. 

■ 20. Section 490.506 is revised to read 

as follows: 

§ 490.506 Credit accounts. 

(a) DOE shall establish a credit 

account for each fleet or covered person 

that obtains an alternative fueled 

vehicle credit. 

(b) DOE shall send to each fleet and 

covered person an annual credit account 

balance statement after the receipt of its 

credit activity report under § 490.508. 

■ 21. Section 490.507 is revised to read 

as follows: 

§ 490.507 Alternative fueled vehicle credit 

transfers. 

(a) Any fleet or covered person that is 

required to acquire alternative fueled 

vehicles may transfer an alternative 

fueled vehicle credit to— 

(1) A fleet that is required to acquire 

alternative fueled vehicles; or 

(2) A covered person subject to the 

requirements of this part, if the 

transferor provides certification to the 

covered person that the credit 

represents a vehicle that operates solely 

on alternative fuel. 

(b) Proof of credit transfer may be on 

a form provided by DOE, or otherwise 

in writing, and must include dated 

signatures of the transferor and 

transferee. The proof should be received 

by DOE within 30 days of the transfer 

date at the Office of Energy Efficiency 

and Renewable Energy, U.S. Department 

of Energy, EE–2G, 1000 Independence 

Avenue SW, Washington, DC 20585– 

0121, or such other address as DOE 

publishes on its Web site or in the 

Federal Register. 

■ 22. Section 490.508 is added to 

subpart F to read as follows: 

§ 490.508 Credit activity reporting 

requirements. 

(a) A fleet or covered person that 

either applied one or more banked 

credits towards its alternative fueled 

vehicle acquisition requirements 

pursuant to § 490.505, seeks the 

allocation of alternative fueled vehicle 

credits under this subpart, or 

participated in a credit transfer under 

§ 490.507 must include a credit activity 

report with its annual report submitted 

under subpart C or D of this part. 

(b) The credit activity report must 

include the following information: 

(1) Number of alternative fueled 

vehicle credits applied towards 

acquisition requirements pursuant to 

§ 490.505; 

(2) Number of alternative fueled 

vehicle credits requested for: 

(i) Light duty alternative fueled 

vehicles acquired in excess of the 

required acquisition number; 

(ii) Alternative fueled vehicles with a 

gross vehicle weight rating of more than 

8,500 pounds acquired in excess of the 

required acquisition number; 

(iii) Medium- or heavy-duty fuel cell 

electric vehicles that are not alternative 

fueled vehicles, acquired in excess of 

the required acquisition number; 

(iv) Medium- or heavy-duty electric 

vehicles that are not alternative fueled 

vehicles, acquired in excess of the 

required acquisition number; 

(v) Light duty alternative fueled 

vehicles acquired in model years before 

the first model year the fleet or covered 

person is required to acquire light duty 

alternative fueled vehicles by this part; 

(vi) Alternative fueled vehicles with a 

gross vehicle weight rating of more than 

8,500 pounds acquired in model years 

before the first model year the fleet or 

covered person is required to acquire 

light duty alternative fueled vehicles by 

this part; 

(vii) The acquisition of light duty 

hybrid electric vehicles that are not 

alternative fueled vehicles; 

(viii) The acquisition of light duty 

plug-in electric drive vehicles that are 

not alternative fueled vehicles; 

(ix) The acquisition of light duty fuel 

cell electric vehicles that are not 

alternative fueled vehicles; and 

(x) The acquisition of neighborhood 

electric vehicles. 

(3) Number of alternative fueled 

vehicle credits, in whole number values, 

requested for each of the following: 

(i) Investment in alternative fuel 

infrastructure; 

(ii) Investment in alternative fuel nonroad equipment; and 

(iii) Investment in an emerging 

technology. 

(4) For each vehicle that is not an 

alternative fueled vehicle and for which 

credit is requested under paragraphs 

(b)(2)(iii), (iv), (vii), (viii), (ix), or (x) of 

this section: 

(i) Vehicle make and model; 

(ii) Model year; 

(iii) Vehicle Identification Number; 

and 

(iv) Acquisition date. 

(5) For investment in alternative fuel 

infrastructure, supporting 

documentation and a written statement, 

certified by a responsible official of the 

fleet or covered person, indicating or 

providing: 

(i) The model year or period in which 

the investment was made; 

(ii) The amount of money invested by 

the fleet or covered person and to whom 

the money was provided; 

(iii) The physical location(s) (address 

and zip code) and a detailed description 

of the alternative fuel infrastructure, 

including the name and address of the 

construction/installation company 

(where appropriate), whether the 

infrastructure is publicly accessible, and 

the type(s) of alternative fuel offered; 

and 

(iv) The date on which the alternative 

fuel infrastructure became operational. 

(6) For investment in alternative fuel 

non-road equipment, supporting 

documentation and a written statement, 

certified by a responsible official of the 

fleet or covered person, indicating or 

providing: 

(i) The model year or period in which 

the investment was made; 

(ii) The amount of money invested by 

the fleet or covered person and to whom 

the money was provided; and 

(iii) A detailed description of the 

alternative fuel non-road equipment, 

including the name and address of the 

manufacturer, the type(s) of alternative 

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Federal Register / Vol. 79, No. 55 / Friday, March 21, 2014 / Rules and Regulations 15907 

fuel on which the equipment is capable 

of being operated, a certification that the 

equipment is being operated on that 

alternative fuel, the date on which the 

fleet or covered person purchased the 

equipment, and the date on which it 

was put into operation. 

(7) For investment in an emerging 

technology, supporting documentation 

and a written statement, certified by a 

responsible official of the fleet or 

covered person, indicating or providing: 

(i) The model year or period in which 

the investment was made; 

(ii) The amount of money invested by 

the fleet or covered person and to whom 

the money was provided; 

(iii) A certification that the emerging 

technology’s acquisition is not included 

as a new light duty alternative fueled 

vehicle acquisition in the fleet or 

covered person’s annual report; 

(iv) A certification that the emerging 

technology’s acquisition is not included 

in paragraph (b)(2) of this section and 

the amount invested is not included in 

the amounts submitted under paragraph 

(b)(5)(ii) or (b)(6)(ii) of this section; and 

(v) A detailed description of the 

emerging technology, including the 

name and address of the manufacturer, 

the date on which the fleet or covered 

person purchased the emerging 

technology, and the date on which it 

was put it into operation. 

(8) The total number of alternative 

fueled vehicle credits requested by the 

fleet or covered person, calculated by 

adding the two subtotals under 

paragraphs (b)(2) and (b)(3) of this 

section and then rounding the aggregate 

figure to the nearest whole number; in 

rounding to the nearest whole number, 

any fraction equal to or greater than one 

half shall be rounded up and any 

fraction less than one half shall be 

rounded down. 

(9) Purchases of alternative fueled 

vehicle credits: 

(i) Credit source; and 

(ii) Date of purchase; 

(10) Sales of alternative fueled vehicle 

credits: 

(i) Credit purchaser; and 

(ii) Date of sale. 

Subpart I—[Amended] 

■ 23. Section 490.804, paragraph (c) is 

revised to read as follows: 

§ 490.804 Eligible reductions in petroleum 

consumption. 

* * * * * 

(c) Rollover of excess petroleum 

reductions. (1) Upon approval by DOE, 

petroleum fuel use reductions achieved 

by a fleet in excess of the amount 

required for alternative compliance in a 

previous model year may be applied 

towards the petroleum fuel use 

reduction requirement under 

§ 490.803(a) in a model year for which 

a waiver is granted and for which the 

fleet experiences a shortfall. 

(2)(i) A fleet seeking to roll over for 

future use the petroleum fuel use 

reductions that it achieved in excess of 

the amount required for alternative 

compliance in a particular model year 

must make a written request to DOE as 

part of the fleet’s annual report required 

under § 490.807 for the model year in 

which the excess reductions were 

achieved. 

(ii) Following receipt of a request 

under paragraph (c)(2)(i) of this section, 

DOE will notify the requesting fleet of 

the amount of excess petroleum fuel use 

reductions that DOE has approved for 

rollover and potential application 

towards the petroleum fuel use 

reduction requirement in a future model 

year. 

(iii) A fleet seeking to apply excess 

petroleum fuel use reductions rolled 

over pursuant to paragraph (c)(2)(ii) of 

this section in a model year for which 

a waiver is granted and for which the 

fleet experiences a shortfall in achieving 

the petroleum fuel use reduction 

requirement under § 490.803(a) must 

make a written request to DOE as part 

of the fleet’s annual report required 

under § 490.807. The written request 

must specify the amount of the rollover 

reductions (in GGE) the fleet wishes to 

have applied and the total balance of 

rollover reductions (in GGE) the fleet 

possesses. 

(3)(i) In considering a written request 

to apply rollover reductions under 

paragraph (c)(2)(iii) of this section, DOE 

may seek from the fleet additional 

information about the fleet and its 

operations. 

(ii) Upon approving a request to apply 

rollover reductions, DOE will apply the 

approved rollover reductions only to the 

extent that other reductions in 

petroleum consumption through any of 

the means set forth in paragraphs (a) 

and (b) of this section were not 

reasonably achievable. 

(4) Excess petroleum reductions are 

not tradable. 

* * * * * 

■ 24. Section 490.805 is amended by 

removing paragraph (b)(3) and revising 

paragraph (b)(2) to read as follows: 

§ 490.805 Application for waiver. 

* * * * * 

(b) * * * 

(2) A complete waiver application 

must be received by DOE no later than 

July 31 prior to the model year for 

which a waiver is sought. 

* * * * * 

■ 25. Section 490.809 is revised to read 

as follows: 

§ 490.809 Violations. 

If a State or covered person that 

received a waiver under this subpart 

fails to comply with the petroleum 

motor fuel reduction or reporting 

requirements of this subpart, DOE will 

revoke the waiver and may impose on 

the State or covered person a penalty 

under subpart G of this part. A State or 

covered person whose waiver has been 

revoked by DOE is precluded from 

requesting an exemption under 

§ 490.204 or § 490.307 from the vehicle 

acquisition mandate for the model year 

of the revoked waiver. 

[FR Doc. 2014–06044 Filed 3–20–14; 8:45 am] 

BILLING CODE 6450–01–P 

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