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[Federal Register Volume 89, Number 244 (Thursday, December 19, 2024)]
[Notices]
[Pages 103824-103826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30081]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ- EPA-HQ-OAR-2024-0597; FRL-12502-01-OAR]

Alternative Methods for Calculating Off-Cycle Credits Under the 
Light-Duty Vehicle Greenhouse Gas Emissions Program: Application From 
Mitsubishi Motors Corporation

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency (EPA) is requesting 
comment on an application from Mitsubishi Motors Corporation (``MMC'') 
for off-cycle carbon dioxide (CO2) credits under EPA's 
light-duty vehicle greenhouse gas emissions standards. ``Off-cycle'' 
emission reductions can be achieved by employing technologies that 
result in real-world benefits, but where that benefit is not adequately 
captured on the test procedures used by manufacturers to demonstrate 
compliance with emission standards. EPA's light-duty vehicle greenhouse 
gas program acknowledges these benefits by giving automobile 
manufacturers several options for generating ``off-cycle'' 
CO2 credits. Under the regulations, a manufacturer may apply 
for CO2 credits

[[Page 103825]]

for off-cycle technologies that result in off-cycle benefits. In these 
cases, a manufacturer must provide EPA with a proposed methodology for 
determining the real-world off-cycle benefit. MMC submitted their 
application describing a methodology for determining off-cycle credits 
from the technology described in their application. Pursuant to 
applicable regulations, EPA is making this off-cycle credit calculation 
methodology available for public comment.

DATES: Comments must be received on or before January 21, 2025.

ADDRESSES: Submit your comments referencing Docket ID No. EPA-HQ-OAR-
2024-0597 online using www.regulations.gov (our preferred method), by 
email to [email protected] or by mail to: EPA Docket Center, 
Environmental Protection Agency, Mailcode 28221T, 1200 Pennsylvania 
Ave. NW, Washington, DC 20460.
    EPA's policy is that all comments received will be included in the 
public docket without change including any personal information 
provided, unless the comment includes profanity, threats, information 
claimed to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute.

FOR FURTHER INFORMATION CONTACT: David Wright, Environmental Protection 
Specialist, Office of Transportation and Air Quality, Implementation, 
Analysis and Compliance Division, U.S. Environmental Protection Agency, 
2000 Traverwood Drive, Ann Arbor, MI 48105. Telephone: (734) 214-4467. 
Email address: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    EPA's light-duty vehicle greenhouse gas (GHG) program provides 
three pathways by which a manufacturer may accrue off-cycle carbon 
dioxide (CO2) credits for those technologies that achieve 
CO2 reductions in the real world but where those reductions 
are not adequately captured on the test used to determine compliance 
with the CO2 standards, and which are not otherwise 
reflected in the standards' stringency. The first pathway is a 
predetermined list of credit values for specific off-cycle technologies 
that may be used beginning in model year 2014.\1\ This pathway allows 
manufacturers to use conservative credit values established by EPA for 
a wide range of technologies, with minimal data submittal or testing 
requirements, if the technologies meet EPA regulatory definitions. In 
cases where the off-cycle technology is not on the menu but additional 
laboratory testing can demonstrate emission benefits, a second pathway 
allows manufacturers to use a broader array of emission tests (known as 
``5-cycle'' testing because the methodology uses five different testing 
procedures) to demonstrate and justify off-cycle CO2 
credits.\2\ The additional emission tests allow emission benefits to be 
demonstrated over some elements of real-world driving not adequately 
captured by the GHG compliance tests, including high speeds, hard 
accelerations, and cold temperatures. These first two methodologies 
were completely defined through notice and comment rulemaking and 
therefore no additional process is necessary for manufacturers to use 
these methods. The third and last pathway allows manufacturers to seek 
EPA approval to use an alternative methodology for determining the off-
cycle CO2 credits.\3\ This option is only available if the 
benefit of the technology cannot be adequately demonstrated using the 
5-cycle methodology. Manufacturers may also use this option to 
demonstrate reductions that exceed those available via use of the 
predetermined list.
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    \1\ See 40 CFR 86.1869-12(b).
    \2\ See 40 CFR 86.1869-12(c).
    \3\ See 40 CFR 86.1869-12(d).
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    Under the regulations, a manufacturer seeking to demonstrate off-
cycle credits with an alternative methodology (i.e., under the third 
pathway described above) must describe a methodology that meets the 
following criteria:
     Use modeling, on-road testing, on-road data collection, or 
other approved analytical or engineering methods;
     Be robust, verifiable, and capable of demonstrating the 
real-world emissions benefit with strong statistical significance;
     Result in a demonstration of baseline and controlled 
emissions over a wide range of driving conditions and number of 
vehicles such that issues of data uncertainty are minimized;
     Result in data on a model type basis unless the 
manufacturer demonstrates that another basis is appropriate and 
adequate.
    Further, the regulations specify the following requirements 
regarding an application for off-cycle CO2 credits:
     A manufacturer requesting off-cycle credits must develop a 
methodology for demonstrating and determining the benefit of the off-
cycle technology and carry out any necessary testing and analysis 
required to support that methodology.
     A manufacturer requesting off-cycle credits must conduct 
testing and/or prepare engineering analyses that demonstrate the in-use 
durability of the technology for the full useful life of the vehicle.
     The application must contain a detailed description of the 
off-cycle technology and how it functions to reduce CO2 
emissions under conditions not represented on the compliance tests.
     The application must contain a list of the vehicle 
model(s) which will be equipped with the technology.
     The application must contain a detailed description of the 
test vehicles selected and an engineering analysis that supports the 
selection of those vehicles for testing.
     The application must contain all testing and/or simulation 
data required under the regulations, plus any other data the 
manufacturer has considered in the analysis.
    Finally, the alternative methodology must be approved by EPA prior 
to the manufacturer using it to generate credits. As part of the review 
process defined by regulation, the alternative methodology submitted to 
EPA for consideration must be made available for public comment.\4\ EPA 
will consider public comments as part of its final decision to approve 
or deny the request for off-cycle credits.
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    \4\ See 40 CFR 86.1869-12(d)(2).
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II. Off-Cycle Credit Application

A. High Efficiency Air Conditioning Scroll Compressor

    Using the alternative methodology approach described above, MMC is 
applying for off-cycle GHG credits for the use of a high efficiency air 
conditioning (A/C) scroll compressor. The MMC high efficiency A/C 
scroll compressor results in air conditioning efficiency credits beyond 
those provided in the regulations.
    Scroll A/C compressors are some of the most efficient compressors 
used for mobile air conditioning applications. This technology has been 
used in most of the electrical A/C compressors in use today. MMC has 
adopted this technology which provides improved efficiency relative to 
fixed displacement and electronically variable displacement piston A/C 
compressors.
    Scroll A/C compressors operate using a scroll that orbits around a 
fixed scroll. Fluid is compressed as it moves through the compressor 
and the volume between the scrolls is reduced. Utilizing the orbiting 
scroll for compression provides high volumetric efficiency due to 
reduced pressure losses compared to other compressor technologies.
    MMC is applying for credits for the 2020 and later model years for 
vehicles

[[Page 103826]]

sold in the U.S. and equipped with the high efficiency A/C scroll 
compressor. MMC is requesting a credit value of 1.1 grams/mile. As MMC 
notes in their application, technologies improving the efficiency of A/
C systems are subject to credit caps as noted in 40 CFR 86.1868-12. The 
rationale for the credit cap is the additional fuel consumption of A/C 
systems can never be reduced to zero, and the limits established by 
regulation reflect the maximum possible reduction in fuel consumption 
projected by EPA. To ensure manufacturers do not generate A/C 
efficiency credits which would exceed the maximum possible reductions 
projected by EPA, EPA has applied the A/C menu credit caps to A/C 
efficiency credits manufacturers have received using the alternative 
method process. Therefore, the appropriate A/C efficiency menu caps 
will also apply to MMC for their high efficiency A/C scroll compressor 
credit value. Details of the testing and analysis can be found in the 
manufacturer's application.

III. EPA Decision Process

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

Byron Bunker,
Director, Implementation, Analysis and Compliance Division, Office of 
Transportation and Air Quality.
[FR Doc. 2024-30081 Filed 12-18-24; 8:45 am]
BILLING CODE 6560-50-P
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