15020 Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Proposed Rules

DEPARTMENT OF ENERGY

Office of Energy Efficiency and

Renewable Energy

10 CFR Part 490

[Docket No. EE–RM–95–110]

Alternative Fuel Transportation

Program

AGENCY: Department of Energy (DOE).

ACTION: Notice of proposed rulemaking

and public hearings.

SUMMARY: The Department of Energy

(DOE), Office of Energy Efficiency and

Renewable Energy is proposing rules for

implementation of the State and Local

Incentives Program. Under this Program

DOE may grant financial assistance to

States for projects in DOE approved

State plans to promote use of alternative

fuels and alternative fueled vehicles.

DATES: Written comments (six copies

and, if possible, a computer disk) on the

proposed rule must be received by DOE

on or before May 22, 1995. Oral views,

data, and arguments may be presented

at a public hearing which is scheduled

as follows:

1. May 1, 1995, 9 a.m., U.S.

Department of Energy, Forrestal

Building, Room 1E–245, 1000

Independence Avenue, SW,

Washington, D.C.

Requests to speak at the hearing

should be received by DOE no later than

4 p.m. on April 27, 1995. The length of

each oral presentation is limited to 10

minutes.

ADDRESSES: All written comments (six

copies), and requests to speak at a

public hearing, are to be submitted to:

U.S. Department of Energy, Office of

Energy Efficiency and Renewable

Energy, EE–33, Docket Number EE–RM–

95–110, 1000 Independence Ave., SW,

Washington, DC 20585, telephone

number (202) 586–3012.

Copies of the hearing transcript and

written comments may be inspected and

photocopied in the DOE Freedom of

Information Reading Room, Room 1E–

190, (202) 586–6020, between the hours

of 9:00 a.m. and 4:00 p.m. Monday

through Friday, except Federal holidays.

For more information concerning public

comment on this proposed rulemaking,

see section III of this Notice.

FOR FURTHER INFORMATION CONTACT:

Frank Mallgrave, Office of Alternative

Fuels, Office of Transportation

Technologies, Energy Efficiency and

Renewable Energy, Department of

Energy, Mail Stop EE–33, 5G–086,

Forrestal Building, 1000 Independence

Avenue, SW, Washington, DC 20585,

(202) 586–8077.

Vivian Lewis, Office of General Counsel,

Energy Efficiency (GC–72), Department

of Energy, Room 6B–256, Forrestal

Building, 1000 Independence Avenue,

SW., Washington, DC 20585 (202) 586–

9507.

For information concerning the public

hearings and procedures concerning

written comments: Ms. Andi Kasarsky,

(202) 586–3012.

SUPPLEMENTARY INFORMATION:

I. Introduction

II. Section-By-Section Analysis

III. Opportunity for Public Comment

IV. Review Under Executive Order 12612

V. Review under Executive Order 12778

VI. Review under Executive Order 12866

VII. Review Under the Regulatory Flexibility

Act

VIII. Review Under the Paperwork Reduction

Act

IX. Review Under the National

Environmental Policy Act

X. Review By Other Federal Agencies

XI. List of Subjects

XII. The Catalog of Federal Domestic

Assistance

I. Introduction

Pursuant to Title IV, section 409 of

the Energy Policy Act of 1992 (the Act)

(Pub. L. 102–486), 42 U.S.C. 13235, this

proposed rule will establish the State

and Local Incentives Program, a

financial assistance program, under

which DOE will consider applications

to support projects included in State

plans. The proposed rule sets forth

guidelines for participating States to

follow in developing State plans. These

plans will show how States intend to

meet the Program’s primary goals of

accelerating the introduction and use of

alternative fuels and substantial

numbers of alternative fueled vehicles

(AFV) by the year 2000. The proposed

rule establishes grant application

procedures and evaluation criteria.

Participating States may also subaward

to local government entities or the

private sector to assist in the

implementation of projects within an

approved plan.

At the beginning of each fiscal year,

DOE will publish a notice in the Federal

Register and send a letter and a copy of

the notice to the Governor of each State

announcing the availability of funds.

These notices will invite each Governor

to submit to DOE a State plan, or an

amendment to a previously approved

plan, and apply for financial assistance

to carry out the plan.

Pursuant to the Act, participating

States must provide at least 20 percent

of the estimated cost of the activities

under their program, although the

selection criteria will reward proposals

with higher levels of cost sharing. This

minimum cost sharing requirement may

be met with in-kind services and cost

contributions by other public and

private entities that commit to a State

plan. Upon review and approval of the

plan by DOE, Federal assistance may be

provided to the State. This assistance

may be in the form of grants of up to

80% of the costs of implementing a

plan’s project(s), information, and

technical assistance.

DOE will competitively evaluate

proposed projects included in approved

State plans against criteria described in

this notice, including projected energyrelated benefits, as measured by the

amount of conventional motor fuel that

may be displaced by the use of

alternative fuels, and the projected

number of registered alternative fueled

vehicles as a percentage of all registered

vehicles as of December 31, 2000. No

State will receive more than one grant

per year. A grant may, however, cover

more than one project. No award shall

exceed 10 percent of the total fiscal year

funding for this program. All project

periods must be consistent with the

goals stated in a State plan and may not

extend beyond the end of the year 2000.

The Department has, in another notice

of proposed rulemaking, published on

February 28, 1995 (60 FR 10970),

proposed to establish rules concerning

alternative fueled vehicles in part 490 of

title 10 of the Code of Federal

Regulations. This proposed rule would

add subpart B to the proposed part 490.

II. Section-By-Section Analysis

This part of the Supplementary

Information discusses those provisions

of the proposed regulations that are not

self-explanatory.

Proposed Section 490.101 Definitions

Some of the terms used in this

proposed rule will be defined in a

general definition section for part 490 to

be codified in 10 CFR 490.2. Those

definitions are proposed in a Federal

Register notice dated February 28, 1995.

The proposed definition for ‘‘life

cycle’’ is based on DOE’s interpretation

of the statutory provision which

contains this phrase. Section

409(b)(2)(A) of the Act provides that in

approving a State plan and determining

the amount of financial assistance, if

any, to be awarded, DOE must take into

account, among other factors, an

estimate of energy-related and

environment-related impacts, on a life

cycle basis, of the introduction and use

of alternative fueled vehicles included

in the State plan, compared to

conventional motor vehicles. DOE is
Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Proposed Rules 15021

proposing to define the ‘‘life cycle’’ of

an alternative fueled vehicle as the time

from the date the vehicle is registered by

the State’s motor vehicle agency as an

alternative fueled vehicle, and ending

when the vehicle is no longer registered

as an alternative fueled vehicle. Because

of the critical nature of a ‘‘life cycle

basis’’ and how it will impact on the

evaluation of State plans and the

projects within the State plans, DOE

invites comments on this definition.

Proposed Section 490.102 Who May

Apply

The proposed rule would require any

application for financial assistance and

State plan submission to be submitted

by the chief executive of a State. Such

submissions are optional to the States,

but any submission must comply with

the requirements of this subpart.

Proposed Section 490.103 When and

Where To Apply

The deadline date for submission of

State plans to DOE may vary from year

to year, depending upon the availability

of funding. Normally funding is made

available at the beginning of a fiscal year

which commences October 1 of each

year. Each year, after funding has been

appropriated by Congress, DOE is

proposing to announce the submission

deadline in a Federal Register notice,

and a letter to the Governor of each

State, identifying the amount of funding

available, as well as providing the

address to which submissions may be

sent.

Proposed Section 490.104 Content of

State Plans

In paragraph (a) of this section, DOE

is proposing to require that the State

plan include the name and description

of the lead organization designated to be

responsible for implementing the plan

and administering any grant awarded.

DOE needs this information to ensure

that it will be dealing with the proper

State authority.

Paragraph (c) sets forth the primary

goals of the Program which are to

substantially increase, by the year 2000,

the number of alternative fueled

vehicles registered in the State and the

number of alternative fuel refueling

facilities licensed for operation. Each

State plan must provide detailed

descriptions as to how these goals are to

be achieved.

With the exception of proposed

paragraph (d)(11), all of the mandatory

analyses set forth in paragraph (d) are

statutorily required.

Paragraph (d)(5), which corresponds

to section 409(a)(3)(E) of the Act,

requires a State plan to describe how the

State treats the sales of alternative fuels

for use in alternative fueled vehicles.

This information will be helpful to DOE

in determining whether the State’s

methods of treating the sales of

alternative fuels will actually increase

the use of alternative fuels. If these

methods are effective, DOE will share

this information with all the States in an

annual report which will be sent both to

Congress and the Governor of each

State.

Proposed paragraph (d)(8) requires,

consistent with section 409(a)(3)(I) of

the Act, that the plan identify any

existing State laws or regulations,

including traffic safety prohibitions, that

would, unless amended, impede the

implementation of the goals of this

Program. The plan must describe how

the State intends to resolve such

impediments.

Paragraph (d)(9), which corresponds

to section 409(a)(3)(J) of the Act, asks

States to describe the services provided

by municipal, county, and regional

transit authorities. This requirement is

important because DOE is interested in

knowing how States will coordinate

with other governmental entities in

carrying out a State plan. To accelerate

the use of alternative fueled vehicles,

there must be adequate refueling

facilities. Coordination and cooperation

among the various governmental entities

within the States will be of great

importance in facilitating the

availability of alternative fuels in areas

where alternative fueled vehicles

operate.

Proposed paragraph (d)(11) also

provides that each State plan shall

consider participation in DOE’s Clean

Cities Program. The Clean Cities

Program provides an opportunity for

States to get more involved in

coordinating with other States as well as

with alternative fuel providers, local

governments, vehicle manufacturers,

and others. The Clean Cities’ goals are

to put into operation 250,000 new

alternative fueled vehicles and 500 to

1000 refueling stations in 50 cities by

1996. As of January, 1995, 34 cities in

21 States are participating in the Clean

Cities Program. For information on the

Clean Cities Program, please write to

Department of Energy, Clean Cities

Program, EE–33, 1000 Independence

Avenue, SW., Washington, DC 20585,

202–586–1885.

Proposed Section 490.105 State Plan

Amendments

Subsequent to an initial award under

this subpart, a State may, with DOE

approval, amend a plan with updated

information. A State must submit an

amendment to a proposed plan if any of

the previously submitted information

corresponding to paragraphs (e), (f), and

(g) of proposed § 490.104 has changed.

Proposed Section 490.106 Review of

Assistance Applications

DOE is proposing in paragraph (e) of

section 490.106 to competitively

evaluate proposed projects in approved

plans against specified criteria listed in

descending order of importance. The

most important proposed criterion as set

forth in paragraph (e)(1) is the projected

energy-related benefits, per dollar

expended, that may be achieved through

the use of alternative fuels from the start

of the program through December 31,

2000. DOE is proposing that energyrelated benefits, be measured on a life

cycle basis through the use of

alternative fueled vehicles, by the

amount of conventional motor fuel that

is displaced by alternative fuels. The

calculation of displacement may be

denominated in gallons, British thermal

units (Btus) or any other appropriate

method. For DOE to evaluate the energy

benefits of a proposed project, it is

important that the State indicate the

degree to which alternative fuels will

actually be used by alternative fueled

vehicles. For projects that provide for

dedicated alternative fueled vehicles to

be placed into use, alternative fuel use

is assumed and no further

demonstration is needed. For projects

that include vehicles capable of

operating on gasoline or diesel, as well

as alternative fuel, estimates of the

actual alternative fuel use must be

specified, accompanied by information

about measures to realize such levels of

use. The energy related benefits are

proposed to be included in the annual

report that participating States must

submit to DOE as provided in proposed

section 490.110.

The energy related benefit is the

highest ranked criterion used to

evaluate proposed projects in State

plans. DOE welcomes and encourages

comments on the proposed measure, or

any others that are recommended.

The second most important criterion

as proposed in paragraph (e)(2) is the

projected number of alternative fueled

vehicles as a percentage of vehicles

registered in the State as of December

31, 2000.

Proposed § 490.104(g) reflects the

statutory requirement that DOE shall not

approve a State plan unless the State

agrees to contribute at least 20 percent

of the cost of plan projects. In addition,

DOE is proposing in paragraph (e)(3)

that the third most important criterion

in evaluating proposed projects is the

extent of cost sharing in excess of the

minimum 20 percent cost share and the
15022 Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Proposed Rules

level of actual non-Federal outlays

rather than in-kind contributions. Cost

sharing may come from any non-Federal

source, private or public. The additional

cost sharing will enable DOE to stretch

scarce appropriations to cover more

projects.

The fourth most important criterion,

as proposed in paragraph (e)(4), would

be the projected environmental benefits

derived as of December 31, 2000

through the use of alternative fueled

vehicles. Environmental benefits in this

context are most appropriately based on

reductions of exhaust, evaporative and

greenhouse gas emissions. DOE believes

that this criterion is important because

use of alternative fueled vehicles has the

significant potential for reducing

vehicle emissions such as hydrocarbons

from combustion and fuel evaporation,

and carbon monoxide, nitrogen oxides,

and other pollutants from combustion.

In addition, there is the potential of

reducing vehicle emissions of

greenhouse gases.

State plans which request

consideration under the environmental

benefit criterion must provide an

estimate of how many alternative fueled

vehicles under the plan will be certified

to each of the Environmental Protection

Agency (EPA) clean fuel vehicle

emission standards pursuant to 40 CFR

part 88. Benefits claimed will be

evaluated by the number of alternative

fueled vehicles certified to the various

tiers of EPA clean vehicle standards,

such as low emission, inherently low

emission, ultra-low emission and zero

emission vehicles. In calculating

environmental benefits to be derived

from alternative fueled vehicles, States

may want to refer to EPA’s Technical

Report entitled Lifetime Emissions for

Clean Fuel Fleet Vehicles, dated

October 1993.

DOE is proposing that a report,

entitled Emissions of Greenhouse Gases

from the Use of Transportation Fuels

and Electricity by M. A. DeLuchi, dated

November 1991 and amended by letter

April 22, 1992, serve as the basis for the

calculation of greenhouse gas emissions.

This report was prepared for the Center

for Transportation Research, Energy

Systems Division, Argonne National

Laboratory. It is available to the public

from the National Technical Information

Service, U.S. Department of Commerce,

5825 Port Royal Road, Springfield,

Virginia 22161. This report sets forth the

total carbon dioxide equivalent grams

per mile emissions, by fuel and vehicle

type. The method of calculation is

simply a matter of applying the

estimated number of miles traveled per

year, by vehicle and fuel type, against

the carbon dioxide equivalent grams per

mile. During the hearings and sixty day

comment period DOE urges suggestions

as to the appropriateness of this method

and recommendations for alternative

methods.

DOE is proposing in paragraph (e)(5)

that the fifth most important criterion be

the number of alternative fuel refueling

facilities projected to be in operation by

December 31, 2000.

Proposed paragraph (e)(6) addresses

interstate coordination. DOE is

suggesting, as an option, that States

consider coordinating the development

of alternative fuel refueling facilities

along interstate highways with adjacent

States, where applicable. The benefit

from such coordination would be to

increase the potential driving range of

alternative fueled vehicles and, thereby,

make their use more widely feasible and

attractive.

Proposed paragraph (e)(7) provides

the seventh criterion which is

participation in DOE’s Clean Cities

Program. Neither paragraph (e)(6) nor

(e)(7) of these criteria are set forth in the

Act, but both are considered very

important for the long term effectiveness

of the program.

The eighth criterion, as proposed in

paragraph (e)(8), deals with how well a

State has implemented its plan during

the previous budget period. If a State

requests funding for new projects in a

subsequent budget period, but has failed

to implement its previously approved

projects in a timely fashion, the new

plan may not receive favorable

consideration.

The ninth and last criterion, as

proposed in paragraph (e)(9), relates to

the innovation and creativity of the

proposed projects. DOE encourages

States to be resourceful in reaching the

goals and objectives of this proposed

regulation beyond the minimum

requirements. For example, the number

of alternative fueled vehicles that are

registered in a State is a key element

within the State and Local Incentives

Program. Based on information available

to DOE, very few States, if any, are able

to distinguish the fuel system type of

vehicles registered in the State. As an

additional project that may receive

favorable consideration, States may

want to modify their registration system

so that alternative fueled vehicles can be

identified. This kind of information

would assist DOE in gathering

information on the distribution of each

type of alternative fueled vehicle. Other

innovative and creative projects might

include far-reaching public relations

programs or information exchange

activities which encourage local

governments and the private sector to

acquire alternative fueled vehicles.

Although Section 409 of the Act

provides for the use of financial

assistance to acquire alternative fueled

vehicles, and States are required to

acquire a certain percentage of

alternative fueled vehicles under

Section 507(o) of the Act, States are

encouraged to develop plans that would

use grants for broader purposes. State

plans will receive favorable

consideration if they consider

resourceful and innovative methods of

increasing alternative fuel, encouraging

acquisition of alternative fueled vehicles

by local governments and private

parties, and expanding the alternative

fuel infrastructure.

In paragraph (f), DOE is proposing to

limit the amount of funding that any

State may receive. Based on prior

experience, DOE does not expect to be

able to provide funding for each and

every project within an approved plan.

DOE, however, wants to ensure that as

many States as possible participate in

this Program. Therefore, it is proposed

that, regardless of the number of

proposed projects in an approved plan,

each State may not receive more than

one grant per calendar year. The grant

may, however, cover more than one

project. Additionally, each award may

not exceed 10 percent of the total fiscal

year funding for the State and Local

Incentives Program.

Proposed Section 490.107 Expenditure

Limitations

DOE is proposing that overhead costs

for State programs be limited to 10

percent of a financial award. This would

include costs related to salaries, office

equipment, and library materials. This

provision is directly related to achieving

the overall goal of this Program—to

substantially increase the use of

alternative fueled vehicles by the year

2000. It will ensure that 90 percent of

the funds are expended on activities and

project costs that produce goal-related

results.

Proposed Section 490.108 DeObligation of Funds

DOE is proposing to deobligate any

funds that a State has failed to obligate

or expend within a budget period. A

budget period is generally 12 months

and may not exceed 24 months. If the

funds are not obligated or expended by

the State within the budget period, DOE

is proposing to de-obligate the funds

which shall become available for award,

in the same manner as newly

appropriated funds, to another financial

assistance recipient.
Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Proposed Rules 15023

Proposed Section 490.109 Technical

Assistance and Information

DOE is proposing, pursuant to section

409(b)(1)(A) of the Act, to provide States

with information and technical

assistance if requested, subject to the

availability of resources. One form of

such assistance could be coordinating

the acquisition of alternative fueled

vehicles with Federal procurement of

these vehicles. Such coordinated

acquisition may decrease the costs of

the alternative fueled vehicles to the

State.

Proposed Section 490.110 Reports

Each State awarded a grant under this

proposed subpart must submit an

annual report to DOE for the period of

time covered by the State plan. This

report must be submitted not later than

30 days after the close of the calendar

year. The information required in the

State report will be used to monitor the

implementation of the State plan, the

projects within an approved plan, and

the expenditure of funds. Pursuant to

section 409(c)(2) of the Act, DOE must

report annually to the President and

Congress. Information in the State

reports will also be used to compile the

DOE report to Congress and the

President.

III. Opportunity for Public Comment

A. Written Comment Procedures

Interested persons are invited to

participate in this rulemaking by

submitting data, views or comments

with respect to the matters set forth in

this notice.

Written comments (6 copies) should

be identified on the outside of the

envelope, and on the documents

themselves, with the designation: ‘‘State

and Local Incentives Program, Notice of

Proposed Rulemaking, Docket Number

EE–RM–95–110’’, and must be received

by the date specified at the beginning of

this notice. In the event any person

wishing to submit a written comment

cannot provide six copies, alternative

arrangements can be made in advance

by calling Ms. Andi Kasarsky at (202)

586–3012. Additionally, DOE would

appreciate an electronic copy of the

comments to the extent possible. The

Department is currently using

Wordperfect 5.1 for DOS.

All comments received on or before

the date specified at the beginning of

this notice and other relevant

information will be considered by DOE

before final action is taken on the

proposed rule. All comments submitted

will be available for examination in the

Rule Docket both before and after the

closing date for comments. In addition,

a transcript of the proceedings of the

public hearing will be filed in the

docket.

Pursuant to the provisions of 10 CFR

1004.11, any person submitting

information or data that is believed to be

confidential, and which may be exempt

by law from public disclosure, should

submit one complete copy, as well as

two copies from which the information

claimed to be confidential has been

deleted. The Department of Energy shall

make its own determination of any such

claim and treat it according to its

determination.

B. Public Hearing Procedures

The time and place of the public

hearing is indicated at the ADDRESSES

section of this notice. Any person who

has an interest in the proposed

regulation or who is a representative of

a group or class of persons which has

an interest in it may make a request for

an opportunity to make an oral

presentation at the hearing. A request to

speak at the hearing should be sent to

the address or phone number indicated

in the ADDRESSES section of this notice

and be received by the time specified in

the DATES section of this notice.

The person making the request should

briefly describe his or her interest in the

proceedings and, if appropriate, state

why that person is a proper

representative of a group. The person

should also provide a phone number

where he/she may be reached during the

day. Each person selected to speak at

the public hearing will be notified as to

the approximate time their presentation

will be given. Six copies of the speaker’s

statement should be brought to the

hearing. In the event any person

wishing to testify cannot meet this

requirement, alternative arrangements

can be made in advance by so indicating

in a letter or phone call to Ms. Andi

Kasarsky ((202)–586–3012) requesting

an opportunity to make an oral

presentation.

The Department of Energy reserves

the right to select persons to be heard at

the hearing, to schedule their

presentations, and to establish

procedures governing the conduct of the

hearing. The length of each presentation

will be limited to ten minutes, or based

on the number of persons requesting to

speak.

A Department of Energy official will

preside at the hearing. This will not be

a judicial or evidentiary-type hearing,

but will be conducted in accordance

with 5 U.S.C. 553. At the conclusion of

all initial oral statements, each person

will be given the opportunity to make a

rebuttal statement. The rebuttal

statements will be given in the order in

which the initial statements were made.

Any further procedural rules needed

for the proper conduct of the hearing

will be announced by the Presiding

Officer.

If DOE must cancel the hearing, DOE

will make every effort to publish an

advance notice of such cancellation in

the Federal Register. Notice of

cancellation will also be given to all

persons scheduled to speak at the

hearing. Hearing dates may be canceled

in the event no public testimony has

been scheduled in advance.

IV. Review Under Executive Order

12612

Executive Order 12612 requires that

regulations, rules, legislation, and any

other policy actions be reviewed for any

substantial direct effects on States, on

the relationship between the National

Government and the States, or on the

distribution of power among various

levels of government. If there are

sufficient substantial direct effects, the

Executive Order requires preparation of

a federalism assessment to be used in all

decisions involved in promulgating and

implementing policy action.

Although today’s proposed rule is

mandated by the Act, State participation

in the State and Local Incentives

Program is voluntary. This proposed

rule simply establishes ground rules for

implementation of the Program. Many

States are currently conducting

alternative fueled vehicle programs and

are anticipating that the influx of

Federal funding through the State and

Local Incentives Program will assist

them in achieving their goals of

accelerating the use of alternative fueled

vehicles.

Today’s proposed rule will have

direct effects on those States that choose

to participate in the Program in that a

State must share at least 20 percent of

the cost of implementing the State

plan’s projects, and must comply with

the other requirements of the Program.

Most of the proposed rule’s provisions,

including the cost sharing requirement,

correspond to provisions of the Act.

Wherever possible, however, DOE has

attempted to simplify the

implementation of this Program by

providing as much flexibility as possible

to the States.

DOE has determined that this

proposed rule will not have a

substantial direct effect on the

institutional interests or traditional

functions of States in relationship to the

Federal Government. Therefore,

preparation of a federalism assessment

is unnecessary.
15024 Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Proposed Rules

V. Review Under Executive Order

12778

Section 2 of Executive Order 12778

instructs each agency to adhere to

certain requirements in promulgating

new regulations and reviewing existing

regulations. The requirements in section

(2)(a) and (b)(2) of this Executive Order

include eliminating drafting errors and

needless ambiguity, drafting the

regulations to minimize litigation by

providing clear and certain legal

standards for affected legal conduct, and

promoting simplification and burden

reduction. Agencies are also instructed

to make all reasonable efforts to ensure

that regulations specify clearly any

preemptive effect on existing Federal

law or regulation and any retroactive

effects. Rulemaking notices must

describe any administrative proceedings

to be available prior to judicial review

and any provisions for the exhaustion of

administrative remedies. DOE certifies

that the proposed rule meets the

requirements of section 2(a) and (b)(2) of

Executive Order 12778.

VI. Review Under Executive Order

12866

Today’s regulatory action has been

determined not to be a significant

regulatory action under Executive Order

12866, Regulatory Planning and Review,

October 4, 1993. Accordingly, this

action was not subject to review under

the Executive Order by the Office of

Information and Regulatory Affairs

(OIRA).

VII. Review Under the Regulatory

Flexibility Act

The Regulatory Flexibility Act, Public

Law 96–354, 5 U.S.C. 601 et seq.,

requires preparation of a regulatory

flexibility analysis for any regulation

that will have a significant economic

impact on a substantial number of small

entities. This proposed rule will impact

only those States that decide to initiate

or in some instances, continue an

alternative fuel and alternative fueled

vehicle program. The Department of

Energy, therefore, certifies that there

will not be a significant economic

impact on a substantial number of small

entities, and that preparation of a

regulatory flexibility analysis is not

warranted.

VIII. Review Under the Paperwork

Reduction Act

New information collection or record

keeping requirements are subject to the

Paperwork Reduction Act, 44 U.S.C.

3501 et seq. Accordingly, this notice has

been submitted to the Office of

Management and Budget for review and

approval of paperwork requirements.

The Energy Policy Act requires DOE to

report annually to Congress and the

President and to furnish copies of the

report to each State participating in the

Program. Most of the information

required to be included in the report can

be collected only from the participating

States. This information is necessary to

determine if the Program is being

implemented adequately and to

determine the effectiveness of the

Program in accelerating the use of

alternative fueled vehicles. DOE cannot

estimate how many States may

participate in the Program.

The public reporting burden is

estimated to average eight hours per

response, including time for reviewing

instructions, gathering and maintaining

the data needed, and completing and

retrieving the collection of information.

DOE has attempted to require States to

collect and maintain only those records

that are essential in assisting DOE to

administer the Program in an effective

manner and to comply with a reporting

requirement to the President and

Congress.

Comments on the information

collection requirements contained in

this rule should be submitted both to

the U.S. Department of Energy, Office of

Energy Efficiency and Renewable

Energy, Hearings and Dockets, Docket

Number EE–RM–95–110, at the address

given earlier in this notice, and to the

Office of Information and Regulatory

Affairs, Office of Management and

Budget, Washington, DC 20503.

IX. Review Under the National

Environmental Policy Act

The Department of Energy has

concluded that, before the final

promulgation of this rule and related

rules implementing the alternative

fueled vehicle provisions of the Energy

Policy Act of 1992, an Environmental

Assessment will be completed.

X. Review By Other Federal Agencies

The Department of Energy has

provided a draft copy of this notice to

the staff of the Administrator of the

Environmental Protection Agency and

the Secretary of the Department of

Transportation pursuant to Section

409(a)(2) of the Energy Policy Act of

1992. The Administrator responded

regarding emission criteria and

certification of vehicles. These

responses were incorporated into the

Notice of Proposed Rule. The Secretary

of Transportation had no comment. The

Department of Energy has also provided

a draft copy of this notice to the

Automotive Commodity Center, Federal

Supply Service, General Services

Administration, pursuant to Section

409(b)(3).

XI. List of Subjects in 10 CFR Part 490

Appeal procedures, Energy, Energy

conservation, Fuel, Gasoline, Motor

vehicles, Oil imports, Petroleum,

Recordkeeping and reporting

requirements and Utilities.

XII. The Catalog of Federal Domestic

Assistance

The Catalog of Federal Domestic

Assistance number for the State and Local

Incentive Program is 81.111.

Issued in Washington, D.C., March 10,

1995.

Christine A. Ervin,

Assistant Secretary, Energy Efficiency and

Renewable Energy.

For the reason set forth in the

preamble, DOE proposes to amend part

490 of title 10 of the Code of Federal

Regulations as proposed on February 28,

1995 and as set forth below:

PART 490—ALTERNATIVE FUEL

TRANSPORTATION PROGRAM

1. The authority citation to part 490

is revised to read as follows:

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

13235; 42 U.S.C. 13251; 42 U.S.C. 13257; 42

U.S.C. 13258; 42 U.S.C. 13260–3.

2. A new subpart B is proposed to be

added to part 490 as set forth below:

Subpart B—State and Local Incentives

Program

490.100 Purpose and scope.

490.101 Definitions.

490.102 Who may apply.

490.103 When and where to apply.

490.104 Content of State plans.

490.105 State plan amendments.

490.106 Review of assistance applications.

490.107 Expenditure limitations.

490.108 De-obligation of funds.

490.109 Technical assistance and

information.

490.110 Reports.

§ 490.100 Purpose and scope.

(a) This subpart sets forth the

guidelines for implementation of the

State and Local Incentives Program.

Under this program, DOE may grant

financial assistance to States for projects

in DOE-approved State plans. This

subpart provides guidelines for

development of State plans to accelerate

the introduction and use of alternative

fuels and alternative fueled vehicles by

the year 2000, and for applications for

financial assistance to carry out projects

included in approved State plans.

(b) Except as otherwise provided in

this subpart, the provisions of 10 CFR

part 600 apply to financial assistance

awards under this part.
Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Proposed Rules 15025

§ 490.101 Definitions.

In addition to the definitions found in

§ 490.2, the following definitions apply

to this subpart—

Awardee means the State named in

the notice of financial assistance award.

British thermal unit (Btu) is defined as

the amount of heat required to raise the

temperature of one pound of water one

degree Fahrenheit.

Clean Cities Program is a voluntary

Federal program designed to accelerate

and expand the use of alternative fueled

vehicles in communities throughout the

country and to provide refueling and

maintenance facilities for their

operation.

Conventional motor fuel means

gasoline or diesel fuel used in a motor

vehicle.

Evaporative Emissions are

hydrocarbons released into the

atmosphere as a result of fuel

evaporation from a vehicle’s fuel

system.

Exhaust Emissions are substances

released into the atmosphere through

motor vehicle tailpipes resulting either

from uncombusted fuel or from

chemical reactions during combustion.

They can include carbon monoxide,

oxides of nitrogen, hydrocarbons, and

particulate matter.

Governor means the chief executive of

a State or a person designated by the

chief executive officer to act upon his or

her behalf.

Greenhouse Gas Emissions means

emissions of carbon dioxide and other

gases such as chlorofluorocarbon,

methane, ozone, and nitrous oxide that

contribute to global climate change.

Life cycle means the period of time

beginning with the date on which the

vehicle is registered as an alternative

fueled vehicle by the motor vehicle

agency of the State and ending on the

date the vehicle is no longer registered

as an alternative fueled vehicle.

Project means any activity specified

in a State plan which is undertaken to

achieve the goals set forth in the State

plan.

State plan means a State and Local

Incentives plan submitted to DOE that

contains proposed projects and

provisions designed to introduce a

substantial number of alternative fueled

vehicles and increase the use of

alternative fuels by the year 2000.

§ 490.102 Who may apply.

The Governor of any State may submit

to DOE a State plan and apply for

Federal assistance to carry out that plan

under this subpart.

§ 490.103 When and where to apply.

For each fiscal year, DOE will publish

a notice in the Federal Register

announcing the availability of funds,

specifying the deadline for submissions,

and providing the address to which a

submission may be sent. A copy of this

notice will be sent to the Governor of

each State. In order to be eligible for

Federal assistance, a State must submit

an application on standard forms,

pursuant to 10 CFR Part 600, and either

a proposed State plan, or a proposed

State plan amendment to a previously

approved plan. This submission must be

made before the specified deadline.

§ 490.104 Content of State plans.

(a) Organization. Each State plan must

name and describe the functions of the

State organization designated by the

Governor to carry out the provisions of

the plan.

(b) Intergovernmental coordination.

Each State plan shall describe the

manner in which the State intends to

coordinate with the Federal

Government, local governments, and the

private sector in implementing the plan.

(c) Goals. Each State plan must

identify its goals for the number of

alternative fueled vehicles to be

registered within the State, the amount

of alternative fuel to be used within the

State, and the number of alternative fuel

refueling facilities to be licensed for

operation. The plan must also provide a

detailed description as to how these

goals can be achieved by the year 2000.

(d) Mandatory analyses. Each State

plan shall include an examination of—

(1) Exemption from State sales tax or

other State or local taxes or surcharges

(other than such taxes or surcharges

which are dedicated for transportation

purposes) with respect to alternative

fueled vehicles, alternative fuels, or

alternative fuel refueling facilities;

(2) The introduction of alternative

fueled vehicles into State-owned or

operated motor vehicle fleets;

(3) Special parking for alternative

fueled vehicles at public buildings, as

defined by § 490.201 of subpart A, and

airport and transportation facilities;

(4) Programs of public education to

promote the use of alternative fueled

vehicles;

(5) The treatment of sales of

alternative fuels for use in alternative

fueled vehicles;

(6) Methods by which State and local

governments might enhance—

(i) The availability of alternative fuels;

and

(ii) The ability to recharge electric

motor vehicles at public locations.

(7) Allowing public utilities to

include in rates the incremental cost

of—

(i) New alternative fueled vehicles;

(ii) Converting conventional vehicles

to operate on alternative fuels; and

(iii) Installing alternative fuel

refueling facilities; but only to the

extent that the inclusion of such costs

in rates would not create competitive

disadvantages for other market

participants, and taking into

consideration the effect that inclusion of

such costs would have on rates, service,

and reliability to other utility customers;

(8) Whether accomplishing any of the

goals of the State plan would require

amendment to State law or regulations,

including traffic safety prohibitions;

(9) Services provided by municipal,

county, and regional transportation

authorities;

(10) Effects of the State plan on

programs authorized by the Intermodal

Surface Transportation Efficiency Act of

1991 and amendments made by that

Act;

(11) Participation in the DOE’s Clean

Cities Program; and

(12) Such other programs and

incentives as a State may describe.

(e) Projects. Each State plan—

(1) Shall contain a detailed

description of projects designed to

result in scheduled progress toward,

and achievement of, the goals of using

alternative fuel and introducing

substantial numbers of alternative

fueled vehicles in the State by the year

2000. For each project, the plan must

specify the project periods and

milestones which must be consistent

with the State plan goals; and

(2) Shall include estimates of the

volumes of alternative fuels to be used

within each calendar year as a result of

each project.

(f) Requirements. Each State plan

shall contain a detailed description of

the requirements for implementing the

plan, including the estimated cost and

budget for implementation.

(g) Cost Share. Each State plan shall

specify the non-federally funded share

of each project, which must be at least

20 percent of the cost of the project. The

plan must identify the amounts to be

provided in cash and in-kind.

§ 490.105 State plan amendments.

Subsequent to an initial State plan

approval and any award under this

subpart, a State—

(a) May amend a State plan with the

approval of DOE; and

(b) Must, in the event of any change

to the provisions identified in

paragraphs (e), (f) and (g) of § 490.104,

submit a proposed State plan

amendment with updated information

for the approval of DOE.

§ 490.106 Review of assistance

applications.

(a) On or before 60 days from an

applicable deadline for submission of
15026 Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Proposed Rules

applications for financial assistance,

DOE shall review State plans or State

plan amendments to determine whether

they meet the requirements of this

subpart and represent policies and

activities reasonably designed to

achieve the goals of a substantial

number of alternative fueled vehicles in

operation by the year 2000 and

increased use of alternative fuel.

(b) DOE may request further

information from States prior to

completing its review under paragraph

(a) of this section.

(c) DOE may allow a reasonable

period of time to revise a proposed State

plan or State plan amendment, or may

condition approval on acceptance of

revisions deemed necessary by DOE. A

grant will not be awarded until all

conditions are satisfied.

(d) If DOE finally disapproves a State

plan or State plan amendment, DOE

shall notify the Governor in writing

with a statement of reasons.

(e) On the basis of approved State

plans or approved State plan

amendments, DOE shall evaluate

proposed projects competitively against

the following criteria which are listed in

descending order of importance:

(1) Projected energy-related benefits,

per dollar expended, on a life-cycle

basis, through the use of alternative

fueled vehicles, as measured by the

amount of conventional motor fuel that

is displaced by alternative fuels from

the start of the project through

December 31, 2000. This displacement

may be calculated on the basis of

gallons, British thermal units (Btus), or

any other appropriate method.

(2) Projected number of alternative

fueled vehicles introduced as of

December 31, 2000, as a result of the

project;

(3) Extent of cost sharing in excess of

the minimum required 20 percent cost

share and extent of contribution made

in cash rather than in-kind;

(4) Projected environmental benefits,

on a life-cycle basis, measured in terms

of the reduction of exhaust, evaporative,

and greenhouse gas emissions through

December 31, 2000. Projections should

be based on the number of alternative

fueled vehicles that will be certified as

meeting various EPA clean vehicle

emission standards pursuant to 40 CFR

part 88;

(5) Projected number of alternative

fuel refueling facilities as of December

31, 2000;

(6) Extent of interstate collaboration

on refueling infrastructure, including

collaboration on development of

alternative fuel refueling facilities along

interstate highways with adjacent

States;

(7) Extent of participation in DOE’s

Clean Cities Program;

(8) Effectiveness in carrying out State

plan in previous budget periods; and

(9) Inclusion of creative and

innovative projects.

(f) A State may not receive more than

one grant per calendar year. This grant

may cover multiple projects or projects

expanding for more than one year. No

award is to exceed 10 percent of the

total fiscal year funding for the State

and Local Incentives Program. In those

instances where projects in an approved

plan are not funded, the State may

reapply for financial assistance for such

projects in subsequent years.

§ 490.107 Expenditure Limitations.

A State may not expend more than 10

percent of a financial award for indirect

costs including, but not limited to,

salaries, equipment, and library

materials.

§ 490.108 De-obligation of funds.

A budget period should typically be

12 months, but may not exceed 24

months unless an extension is approved

by DOE. Any funds, under a notice of

financial assistance award, which

remain unexpended at the end of the

budget period shall be de-obligated.

DOE shall make these funds available

for award, in the same manner as newly

appropriated funds.

§ 490.109 Technical assistance and

information.

At the request of the Governor of any

participating State and subject to the

availability of personnel and funds,

DOE will provide technical assistance

and information to the State in

connection with effectuating the

purposes of this subpart. Non-financial

assistance, including coordinating the

acquisition of alternative fueled vehicles

with Federal procurement of alternative

fueled vehicles, will be provided.

§ 490.110 Reports.

(a) For the period of time covered by

a State plan, an awardee shall submit to

DOE an annual report each calendar

year and not later than 30 days after the

close of the calendar year, which shall

include at a minimum—

(1) The estimated number of

alternative fueled vehicles in use in the

State;

(2) A description of Federal, State and

local programs undertaken within the

State to provide incentives for the

introduction of alternative fueled

vehicles, whether or not these programs

are within the State plan; and

(3) The estimated energy and

environmental benefits of the State plan.

(b) An awardee shall submit to DOE

a financial status report (FSR) (OMB No.

0348–0039) within 90 days after

completion of each budget period. For

budget periods exceeding 12 months, an

FSR is also required within 90 days after

the first 12 months, unless waived by

the contracting officer.

[FR Doc. 95–6792 Filed 3–20–95; 8:45 am]

BILLING CODE 6450–01–P